It's probably also worth asking "what's an update?"?
As mentioned, that dashboard page looks for updated transaction dates, in order to register an update:
http://dashboard.iatistandard.org/timeliness.html. This particular use case would therefore not log new activities (with no transactions); changes to budgets; results or new documents - for example.
The broad thinking might be that a typical publisher activity would be set up some core/stable elements (activity ID; title; description, country; participating-org, sector etc) that might not be subject to change. Other aspects might be reflective of the point in time being reported, but could change - activity-status; activity-date. And then - one could consider elements such as budget, transaction, document-link and results as (potentially) being more volatile - either through updates or additional elements.
Finally, there are then the situations when a publisher may (exceptionally) reconfigured their publishing approach and so wider changes occur - more/less activities/files; new URLs, etc. These are also valid changelog entries.
If you didn't know, the IATI Registry runs a script every night to look for a "change" in a file. If it spots one, it logs this in the publisher and file history, via the "IATI Harvester Script" - eg:
http://iatiregistry.org/publisher/activity/unicef. However, this change isn't descriptive, or appreciative of any of the above considerations.
So - changes in IATI are interesting and complex, but a good sign of a data standard maturity...
Best wishes
Steven