IFRS Talks - PwC's Global IFRS podcast
June 2024: IFRIC Update
Jun 20, 2024
Karsten Ganssauge, an expert in IFRS Interpretations, joins Laura Kennedy to discuss the highlights from the June 2024 IFRS Interpretations Committee meeting. They dive into the complexities of reportable segments and cash flow statements under IAS 7. The conversation covers the challenges of disaggregating material items and the ongoing debates about classification in cash flows from derivatives. Additionally, they explore significant ISB projects related to intangible assets and business combinations, emphasizing the need for clearer disclosure standards.
17:48
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Quick takeaways
- The podcast emphasizes the challenge of defining 'material' items in segment reporting under IFRS 8, highlighting the need for entities to exercise judgment in disaggregation.
- The discussion on cash flow classifications for variation margin calls reveals the committee's decision to forgo extensive standard-setting due to the limited impact of the issue, while still prioritizing cash flow presentation clarity.
Deep dives
Disaggregation of Material Items in Segment Reporting
The podcast discusses a significant topic regarding the disaggregation of material items of income and expense in segment reporting, as outlined in IFRS 8. The controversy arises from the differing interpretations of what constitutes 'material' items that need separate disclosures by segments. Feedback from 27 comment letters indicated that while the first part of the submission was straightforward, the meaning of material items sparked considerable disagreement among respondents. The committee concluded that entities must use judgment when determining which items to disaggregate, emphasizing that a complete breakdown of profit or loss items by segment is not mandated.
