Tentative decisions

Post-implementation Review of IFRS 16 Leases — The IASB tentatively decided to include RFI questions assessing whether IFRS 16 is meeting its objectives, whether core principles are clear, and whether user benefits and application costs (including ongoing costs) align with IASB expectations. The Board also tentatively decided to include questions on lease-term clarity, variable lease payments, discount rate consistency, remeasurement costs, and cash flow presentation, but not to ask about lease identification, lessor accounting consequences, or lessee non-cash consideration effects. Additionally, the Board tentatively decided to include RFI questions on IFRS 16 interactions with IFRS 9 and IFRS 15 (specifically rent concessions, sale-leaseback asset transfer assessment, and partial gain/loss recognition), but not to ask about IFRS 10 applications or other IFRS standards interactions.

Rate-regulated Activities — The IASB tentatively decided to confirm its proposal requiring entities applying IFRS 19 and the prospective Regulatory Assets and Regulatory Liabilities (RARL) Accounting Standard to apply all disclosure requirements in the prospective RARL Standard (11 of 14 members agreed).

Active projects

Post-implementation Review of IFRS 16 Leases — First phase feedback analysis complete; RFI scope finalized across five topic areas (overall assessment, lease identification/term/accounting model, lessor/sale-leaseback/transition, IFRS interactions, and related matters). RFI publication expected in June 2025.

Rate-regulated Activities — Reduced disclosure requirements for RARL Standard under development; Board will discuss drafting sweep issues next.

Intangible Assets — Initial feedback analysis and evidence gathering completed. Board will decide on project direction at next discussion.

Business Combinations—Disclosures, Goodwill and Impairment — Project discussed; detailed update not provided in this month's summary.

Updating IFRS 19 Subsidiaries without Public Accountability: Disclosures — Under maintenance and consistent application track; linked to rate-regulated activities reduced disclosures proposal.

Fourth Agenda Consultation — Strategy and governance project under review.

IASB Work Plan — Routine update received; next update expected in three to four months (June–July 2025).

What it means for preparers

• IFRS 16 RFI participation: Finance teams should prepare to respond to the June 2025 IFRS 16 PIR RFI, particularly regarding lease-term determination consistency, discount rate application clarity, and ongoing remeasurement costs. Review your lease portfolios now to identify pain points in rent concessions (IFRS 9 interaction) and sale-leaseback arrangements (IFRS 15 interaction) to submit informed feedback.

• Rate-regulated entities: Organizations applying rate-regulated accounting should monitor the prospective RARL Standard finalization and IFRS 19 amendments. All disclosure requirements in the RARL Standard will apply; no reduced-disclosure carve-out is planned, so begin mapping current regulatory asset/liability disclosures to the new requirements.

• Intangible asset accounting watch: Track the Intangible Assets project direction decision (expected within months). This is an early-stage research project; preparers with significant intangible asset portfolios should monitor for potential future amendments to IAS 38.

Standards in scope

• IFRS 16 Leases
• IFRS 19 Subsidiaries without Public Accountability: Disclosures
• IFRS 9 Financial Instruments
• IFRS 15 Revenue from Contracts with Customers
• IFRS 10 Consolidated Financial Statements
• IAS 38 Intangible Assets (referenced in project scope)
• Prospective RARL (Regulatory Assets and Regulatory Liabilities) Accounting Standard (in development)