Part I - IFRS

IASB and EAA to Hold Virtual Workshop on IFRS 18

Mar 25, 2024

On March 25, 2024, The International Accounting Standards Board (IASB) in conjunction with the European Accounting Association (EAA) announced that it will hold a virtual education workshop on IFRS 18 'Presentation and Disclosure in Financial Statements' on April 22, 2024.

The purpose of the session is to inform academics involved in teaching financial reporting modules on the new requirements in IFRS 18 coming into effect on January 1, 2027. The session also aims to stimulate academic discussion and research that will be useful for the post-implementation review of IFRS 18.

The workshop will be structured in three sections: 1) New defined subtotals in the statement of profit or loss; 2) Requirements for aggregation and disaggregation, and 3) Management-defined performance measures.

Access the registration details on the EAA’s website.

IASB proposes enhanced acquisition reporting transparency measures

Mar 14, 2024

On March 14, 2024, the International Accounting Standards Board (IASB) published a package of proposals aimed at enhancing the information companies provide to investors about acquisitions.

The proposals in the Exposure Draft respond to stakeholder feedback that reporting on acquisitions poses difficulties for both investors and companies:

  • Investors lack sufficient and timely information about acquisitions and post-acquisition performance.
  • Companies seek to provide useful information to investors but see risks and costs in providing some information, particularly commercially sensitive information that could be used by competitors.

Stakeholders have expressed concerns regarding the complexity and effectiveness of the impairment test for operations with allocated goodwill. In response, the IASB is proposing amendments to IFRS 3 Business Combinations. These changes would mandate companies to disclose objectives and performance targets of significant acquisitions, along with their subsequent achievements. Additionally, information on expected synergies for all material acquisitions would be required, with safeguards in place to protect sensitive acquisition objectives. The proposed amendments also include targeted improvements to the impairment test under IAS 36 Impairment of Assets.

The IASB is inviting feedback on the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment by July 15, 2024.

Access the press release and the exposure draft on the IASB’s website.

IVSC releases fifth perspective paper on intangible assets

Mar 04, 2024

On March 4, 2024, the International Valuation Standards Council (IVSC) published its fifth perspective paper “Data and Valuation” within the framework of its ongoing series “Time to get Tangible about Intangible Assets' that notes that despite the importance of intangible assets to the capital markets, only a small percentage are recognised on balance sheets.

The series on perspectives papers is now as follows:

Access the press release on the IVSC’s website.

 

 

 

Updated IASB and ISSB work plan — Analysis (February 2024)

Feb 29, 2024

Following the IASB's and ISSB's February 2024 meetings, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meetings and other developments since the work plan was last revised in January 2024.

Below is an analysis of all changes made to the work plan since our last analysis on January 29, 2024

Standard-setting projects

  • Disclosure initiative — Subsidiaries without public accountability: Disclosures — A final standard is now expected in May 2024 (previously April 2024)

Maintenance projects

  • Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard — The exposure draft is now expected in April 2024 (previously Q2 2024)
  • Annual Improvements to IFRS Accounting Standards Final amendments of the following projects are expected in Q3 2024:
    • Cost Method (Amendments to IAS 7)
    •  Derecognition of Lease Liabilities (Amendments to IFRS 9)
    • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
    • Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7)
    • Gain or Loss on Derecognition (Amendments to IFRS 7)
    • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1)
    • Introduction and Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7)
    • Transaction Price (Amendments to IFRS 9)
  •  Climate-related and Other Uncertainties in the Financial Statements — A decision on the project direction is now expected in April 2024 (previously Q2 2024) 
  • Power purchase agreements — The exposure draft is now expected in May 2024 (previously Q2 2024) 
  • Updating the Subsidiaries without Public Accountability: Disclosures Standard — The exposure draft is now expected in Q3 2024 (previously Q2 2024) 
  • Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity (IAS 21) — The exposure draft is now expected in Q3 2024 (previously H2 2024)

Research projects

Governance 

Other projects

The above is a faithful comparison of the IASB and ISSB work plan on 29 January 2024 and 29 February 2024.

For access to the current work plan at any time, please click here.

 

 

IASB issues podcast on latest Board developments (February 2024)

Feb 29, 2024

On February 29, 2024, the IASB released a podcast hosted by Executive Technical Director Nili Shah featuring IASB Chair Andreas Barckow and IASB Vice-Chair Linda Mezon-Hutter discussing the deliberations at the February 2024 IASB meeting.

The podcast highlights some of the projects that were discussed during the meeting, including:

  • updates to the work plan;
  • post-implementation review of IFRS 15; 
  • rate-regulated activities;
  • second comprehensive review of the IFRS for SMEsAccounting Standard.

The podcast can be accessed here on the IFRS Foundation website.

IFRS Foundation releases summary of national standard-setters' research on materiality judgment guidance

Feb 27, 2024

On February 27, 2024, the IFRS Foundation issued a comprehensive summary that compiled evidence from national accounting standard-setters concerning the impact of guidance on materiality judgments within IFRS Accounting Standards and related materials.

Materiality judgment demands that companies assess whether information could reasonably influence investor decisions.

In 2017 and 2018, the IASB's refined the definition of materiality and furnish guidance along with case studies to facilitate informed judgments. In 2022, the IFRS Foundation issued a call for research as it was seeking to partner with national standard-setters to gather research and information related to the changes and additions to the IASB’s literature on making materiality judgments.

The findings of the research underscored a robust understanding of materiality's concept. While utilization of the 2017 and 2018 guidance exhibited disparities across regions, where implemented, it proved beneficial. Moreover, the research advocates for sustained efforts to raise awareness among stakeholders regarding the available guidance. Looking ahead, the IASB remains committed to providing further assistance to companies navigating materiality judgments, with insights from its research poised to influence ongoing discussions, including those within projects such as the initiative regarding climate-related and other uncertainties in the financial statements.

The national standard-setters taking part in the research initiative, working in partnership with academics from their jurisdictions, are from Australia, Botswana, China, Malaysia, Mexico and New Zealand.

Access the research summary on IFRS Foundation’s website.

AcSB Exposure Draft – Financial Instruments with Characteristics of Equity

Feb 22, 2024

On February 22, 2024, the Accounting Standards Board (AcSB) proposed to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.

This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.

The IASB’s Exposure Draft proposes to address the diversity in practice and respond to investor feedback by:

  • clarifying the underlying classification principles of IAS 32 to help companies distinguish between financial liabilities and equity;
  • requiring companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and
  • introducing new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.

AcSB urges stakeholders in Canada to provide feedback to the IASB regarding its Exposure Draft. The IASB has outlined specific questions for input in its Invitation to Comment within the Exposure Draft. The AcSB advises that comment letters should be sent directly to the IASB, with a copy also sent to the AcSB. Comments to the IASB are due by March 29, 2024.

Access the press release on FRAS Canada’s website.

IASB releases webcast introducing the forthcoming IFRS 18

Feb 05, 2024

On February 5, 2024, the International Accounting Standards Board (IASB) released a ten-minute webcast unveiling the new IFRS 18 Presentation and Disclosure in the Financial Statements. This standard, expected in April 2024, will take effect for reporting periods starting January 1st, 2027, onwards.

The new standard responds to investors' demand for better information about companies’ financial performance and will improve how company information is communicated in the financial statements. It will provide investors with enhanced clarity and depth for analyzing company performance, leading to well-informed investment decisions.

Access the webcast on the IFRS Foundation website.

IASB releases webcast introducing the forthcoming IFRS 18

Feb 05, 2024

On February 5, 2024, the International Accounting Standards Board (IASB) released a ten-minute webcast unveiling the new IFRS 18 Presentation and Disclosure in the Financial Statements. This standard, expected in April 2024, will take effect for reporting periods starting January 1st, 2027, onwards.

The new standard responds to investors' demand for better information about companies’ financial performance and will improve how company information is communicated in the financial statements. It will provide investors with enhanced clarity and depth for analyzing company performance, leading to well-informed investment decisions.

Access the webcast on the IFRS Foundation website.

IASB issues podcast on latest Board developments (January 2024)

Jan 30, 2024

On January 30, 2024, the IASB released a podcast hosted by Executive Technical Director Nili Shah featuring IASB Chair Andreas Barckow and IASB Vice-Chair Linda Mezon-Hutter discussing the deliberations at the January 2024 IASB meeting.

The podcast highlights some of the projects that were discussed during the meeting, including:

  • the post-implementation review of IFRS 15; 
  • power purchase agreements;
  • amendments to IFRS 9 regarding classification and measurement; and
  • proposals for the addendum to the IFRS for SMEs exposure draft.

It also addresses a question from one of the podcast listeners.

The podcast can be accessed here on the IFRS Foundation website

An analysis of changes to the work plan resulting from the IASB discussions can be found here.

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