Tentative decisions

Rate-regulated Activities (Regulatory Assets and Liabilities) — The IASB tentatively decided the prospective Accounting Standard will include no minimum interest rate requirement; require disclosure of quantitative recovery timelines disaggregated by interest-bearing vs. non-interest-bearing regulatory agreements using undiscounted cash flows with consistent period-to-period assumptions; clarify that market variable assumptions must be observable at measurement date and exclude future changes; include interim statement transitional provisions; and exclude disclosure of regulatory returns on assets not yet in use.

Intangible Assets (IAS 38) — The IASB decided project objectives are to improve usefulness of intangible asset information and update IAS 38 for newer asset types. It decided to begin with two parallel workstreams: assessing user needs for recognized and unrecognized intangible items, and testing definition/recognition updates using newer asset types. The Board tentatively decided to integrate measurement improvements into other workstreams rather than address separately, and not to explore intangible assets covered by other IFRS Standards or label consistency.

Business Combinations—Disclosures, Goodwill and Impairment (IFRS 3) — The IASB tentatively decided to retain disclosure objectives for performance and expected synergy information; withdraw the combined entity information accounting policy specification while requiring disclosure of the basis of preparation; define operating profit/loss per IFRS 18; replace "primary reasons" disclosure with "strategic rationale"; improve pension and financing liability disclosures; and delete requirements for acquired receivables, subsequent deferred tax adjustments, and subsequent material gains/losses disclosures.

Active projects

Post-implementation Review of IFRS 16 Leases — The Board approved publication of the request for information (RFI) with a 120-day comment period, expected in June 2025. This is the formal PIR launch.

Rate-regulated Activities — Staff recommendations on sweep issues were addressed; the Board will continue the balloting process toward finalization of the prospective Accounting Standard.

Equity Method (IAS 28) — The Board received feedback summary from comment letters and outreach on the proposed ED amendments to answer application questions; no decisions were made this month. Next stage plan will be discussed at a future meeting.

Intangible Assets (IAS 38) — Two initial parallel workstreams approved (user needs assessment and definition/recognition updates via test cases); the Board will discuss the detailed project plan at a future meeting.

Business Combinations (IFRS 3) — Redeliberations on disclosure requirements are progressing; performance and expected synergy disclosure proposals are deferred to a future meeting.

What it means for preparers

• Regulatory accounting entities: Prepare for new mandatory disclosure requirements on regulatory asset/liability recovery timelines. Ensure systems capture undiscounted cash flow timing data and document the basis of all period-to-period assumptions. Note that minimum interest rate floors will not be required, simplifying policy design.

• Acquirers in business combinations: Expect revised disclosure obligations. Begin documenting the strategic rationale for acquisitions (moving beyond listing primary reasons). Review pension and financing liability assumptions in purchase accounting, as these disclosures will be enhanced. Simplify transaction support—acquired receivables, deferred tax adjustments, and post-close gain/loss tracking may no longer need disclosure once finalized.

• Companies with intangible assets: Monitor the IAS 38 update trajectory, particularly if you hold newer intangible assets (software, customer data, internally developed systems, cryptocurrencies, or carbon credits). The IASB will test definition and recognition criteria via these assets first; early disclosure enhancements and potential scope changes may follow in 18–24 months.

Standards in scope

• IFRS 16 Leases (post-implementation review)
• Prospective Regulatory Assets and Regulatory Liabilities Accounting Standard (new)
• IAS 28 Investments in Associates and Joint Ventures (Equity Method amendments ED)
• IAS 38 Intangible Assets (revision project)
• IFRS 3 Business Combinations (disclosure redeliberations)
• IFRS 18 Presentation and Disclosure in Financial Statements (referenced for operating profit definition)