IASB® Work Plan 2017-2021 Feedback Statement on the IFRS® Foundation IASB® Work Plan 2017-2021 Feedback Statement on the 2015 Agenda Consultation November 2016 The views expressed in this presentation are those of the presenter, not necessarily those of the International Accounting Standards Board (the Board) or IFRS Foundation. Copyright © IFRS Foundation. All rights reserved

Why agenda consultations? 2 Opportunity to consult on future priorities Required by the Board’s due process Important to consult globally IFRS Standards are required around the world 83% 122 of 147 jurisdictions require the use of IFRS Standards for all or most publicly accountable companies. Most of the remaining jurisdictions permit their use.

2015 Agenda Consultation Request for Views Comment deadline First Agenda Consultation 2011-2012 Request for Views August 2015 Comment deadline Dec 2015 Feedback Statement Nov 2016 Next by 2021

Extensive consultation  119 comment letters  more than 30 outreach meetings  over 160 responses to online survey

Level of change Call for a stable platform Change is a burden on many businesses Implementing IFRS 9, IFRS 15 and IFRS 16 will require considerable efforts Outreach fatigue Stakeholder capacity is also limited

Four themes in the feedback received 1 Complete remaining large standard-setting projects 2 Promote better communication in financial reporting 3 Continued development of implementation support 4 Focus on fewer research projects

1. Complete standard-setting projects Key messages received: Complete leases (now completed) and insurance contracts Standards as a high priority Prioritise finalising the revised Conceptual Framework It is fundamental to developing Standards based on clear principles IFRS Standards should continue to be principle-based Focus on fewer standard-setting projects To allow stakeholders to implement new Standards

Standard-setting projects Expected completion Insurance contracts 2017 Conceptual Framework

2. Promote better communication Key messages received: Prioritise projects that are important to investors Especially better communication of financial performance Disclosure initiative is important to all stakeholders Widespread support for work on principles of disclosure

2. Promote better communication Primary financial statements Disclosure initiative IFRS Taxonomy™ Enhanced communications effectiveness of financial statements

3. Implementation and maintenance Key messages received: Continue to support stakeholders’ implementation of Standards Post-implementation Reviews welcomed Avoid too many narrow-scope amendments Additional guidance should clarify principles, not introduce complexity and rules

Support implementation Standard issued Effective date Post-implementation Review Support implementation of new IFRS Standards Maintain existing IFRS Standards Education, online tools Ongoing dialogue and collaboration

4. More focused research programme Key messages received: Support for evidence-based standard-setting The research programme is too ambitious Clarify the strategy and objective of research and how it fits into the Board’s other activities

4. The importance of research Research is an essential part of the standard-setting process Standard-setting is undertaken when the answer to the following questions is ‘yes’: Does a problem exist? Does the problem warrant standard-setting? Can a feasible solution be found? Research is not lower priority than standard-setting projects High-priority projects also start with research

The refocused research programme Projects Primary financial statements Principles of disclosure Business combinations under common control Dynamic risk management Financial instruments with characteristics of equity Goodwill and impairment Share-based payment Discount rates Nearly finished

Research pipeline Projects Equity method (for associates and joint ventures) Extractive activities Pollutant pricing mechanisms Provisions Variable and contingent consideration Feasibility studies High inflation, rather than hyperinflation Pensions: benefits that depend on asset returns SMEs that are subsidiaries

The outcome: a revised work plan Updated monthly to reflect decisions at Board meetings

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