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IASB (International Accounting Standards Board) (blue) Image

Recordings from the IASB research forum

09 Dec 2016

The third IASB Research Forum was held in conjunction with the 2016 Contemporary Accounting Research (CAR) conference that took place in Waterloo, Ontario, Canada on 15 and 16 October 2016. The Canadian Accounting Standards Board (AcSB) sponsored a webcast of the event and has now made available recordings on YouTube.

The papers that made up the IASB research forum were:

  • Moving the Conceptual Framework Forward: Accounting for Uncertainty
  • Assets and Liabilities: When do they Exist?
  • Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability

Please click here for the AcSB website that offers access to the recordings of the three sessions. The site also offers links to the author presentations and discussant presentations.

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CAQ issues publication on non-GAAP measures

09 Dec 2016

The Center for Audit Quality (CAQ) of the American Institute of Certified Public Accountants (AICPA) has released a publication 'Non-GAAP Financial Measures: Continuing the Conversation'.

The purpose of the publication is to explore the issue of non-GAAP information, providing context on its definition and use, pertinent regulatory developments, and the current level of auditor involvement. The publication includes questions for stakeholder groups to consider as they prepare or use non-GAAP financial measures.

For more information, please see the press release and publication on the CAQ’s website.

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Quick overview of key attributes and approaches to reporting business models

09 Dec 2016

In October 2016, the UK Financial Reporting Council's (FRC) Financial Reporting Lab published a report on business model reporting, which provides valuable insight for companies on the importance of business model information to investors and the type of information they are seeking. The findings have now been condensed into a single page graphic overview.

Please click for the following information on the FRC website:

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IVSC publishes pre-publication draft of IVS 2017

09 Dec 2016

In April and June 2016, the International Valuation Standards Council (IVSC) issued exposure drafts of proposed new International Valuation Standards (IVSs) that will make up the 2017 IVS. The IVSC discussed the comments received on these drafts in September and October 2016 and has now released a pre-publication draft of the standards.

The pre-publication draft is available in a clean and a track changes version on the IVSC website.

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Hans Hoogervorst discusses pension liability

08 Dec 2016

At the Institute of Pension Education in Rotterdam, IASB Chairman Hans Hoogervorst spoke about pension liabilities and the effect of a low interest rate environment.

In his speech, Mr Hoogervorst noted the need for the IASB to develop additional guidance on pension scheme designs to adapt to recent developments. In addition, he commented that the IASB’s liability measurement approach is well accept and that they “reject calls to fundamentally change pension accounting to eliminate or reduce pension deficits.” Further, he provided his views on macro-economic policies. He stated:

A return to more normal interest rates will reduce the pension liability and will be beneficial for the long-term health of the pension system. But even then, short-term pain seems inevitable, because a lot of damage has been done. While the pension liability will be reduced, there will probably be short-term harm to both your bond and stock portfolios. This is another reason why I do not believe that our accounting for the pension liability exaggerates the problem.

The full tran­script of the speech is available on the IASB’s website.

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IFRS Foundation publishes its second update to IFRS Taxonomy 2016

08 Dec 2016

The IFRS Foundation has published 'Update 2 to the IFRS Taxonomy 2016'.

This update includes taxonomy elements for the September 2016 final amend­ments to IFRS 4 related to the different effective dates of IFRS 9 and the upcoming insurance contracts standard.

For more in­for­ma­tion and access to the update, see the press release on the IASB’s website.

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New Interpretation on foreign currency transactions and advance consideration

08 Dec 2016

The International Accounting Standards Board (IASB) has published IFRIC 22 'Foreign Currency Transactions and Advance Consideration' developed by the IFRS Interpretations Committee to clarify the accounting for transactions that include the receipt or payment of advance consideration in a foreign currency.


The IFRS Interpretations Committee observed some diversity in practice regarding the exchange rate used when reporting transactions that are denominated in a foreign currency in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates in circumstances in which consideration is received or paid in advance of the recognition of the related asset, expense or income. As a consequence, the Interpretations Committee decided to develop an interpretation.


Content of IFRIC 22

Issue and scope of the interpretation

The interpretation addresses foreign currency transactions or parts of transactions where

  • there is consideration that is denominated or priced in a foreign currency;
  • the entity recognises a prepayment asset or a deferred income liability in respect of that consideration, in advance of the recognition of the related asset, expense or income; and
  • the prepayment asset or deferred income liability is non-monetary.


The Interpretations Committee came to the following conclusion:

  • The date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability.
  • If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.

Effective date

IFRIC 22 is effective for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted.


On initial application, entities apply the interpretation either:

  • retrospectively in accordance with IAS 8; or
  • prospectively to all foreign currency assets, expenses and income in the scope of the interpretation initially recognised on or after the beginning of the reporting period an entity first applies the interpretation in or the beginning of a prior reporting period presented as comparative information.


Additional information

Please click for:

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IASB finalises amendments to IAS 40 regarding transfers of investment property

08 Dec 2016

The International Accounting Standards Board (IASB) has published 'Transfers of Investment Property (Amendments to IAS 40)' to clarify transfers of property to, or from, investment property.



The IFRS Interpretations Committee received a request for clarification of the application of paragraph 57 of IAS 40 Investment Property, which provides guidance on transfers to, or from, investment properties. More specifically, the question was whether a property under construction or development that was previously classified as inventory could be transferred to investment property when there was an evident change in use.

The Interpretations Committee referred the matter to the IASB, and at its April 2015 meeting, the IASB agreed to amend the paragraph to reinforce the principle for transfers into, or out of, investment property in IAS 40 to specify that such a transfer should only be made when there has been a change in use of the property. The proposals in the exposure draft published in November 2015 have now been finalised.



The amendments in Transfers of Investment Property (Amendments to IAS 40) are:

  • Paragraph 57 has been amended to state that an entity shall transfer a property to, or from, investment property when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does not constitute evidence of a change in use.
  • The list of evidence in paragraph 57(a) – (d) was designated as non-exhaustive list of examples instead of the previous exhaustive list.


Effective date and transition requirements

The amendments are effective for periods beginning on or after 1 January 2018. Earlier application is permitted. An entity applies the amendments to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. Retrospective application is also permitted if that is possible without the use of hindsight.


Additional information

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IASB concludes the 2014-2016 annual improvements cycle

08 Dec 2016

The IASB has issued 'Annual Improvements to IFRS Standards 2014–2016 Cycle'. The pronouncement contains amendments to three International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project.

Annual Improvements to IFRS Standards 2014–2016 Cycle makes amendments to the following standards:

IFRS Subject of amendment

IFRS 1 First-time Adoption of International Financial
Reporting Standards

Deleted the short-term exemptions in paragraphs E3–E7 of IFRS 1, because they have now served their intended purpose

IFRS 12 Disclosure of Interests in Other Entities

Clarified the scope of the standard by specifying that the disclosure requirements in the standard, except for those in paragraphs B10–B16, apply to an entity’s interests listed in paragraph 5 that are classified as held for sale, as held for distribution or as discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

IAS 28 Investments in Associates and Joint Ventures

Clarified that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that is held by an entity that is a venture capital organisation, or other qualifying entity, is available for each investment in an associate or joint venture on an investment-by-investment basis, upon initial recognition

The amendments to IFRS 1 and IAS 28 are effective for annual periods beginning on or after 1 January 2018, the amendment to IFRS 12 for annual periods beginning on or after 1 January 2017.

Please click for the following additional information:

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FASB Chairman discusses international collaboration

07 Dec 2016

During the annual American Institute of Certified Public Accountants (AICPA) Conference on Current SEC and PCAOB Developments in Washington, D.C., FASB Chairman Russell Golden spoke about the FASB's priorities as the “Five Is” - one of which is "International".

Mr Golden explained that after winding down its bilateral working relationship with the IASB the FASB chose a new approach to achieve greater comparability of global standards: (i) through the continued development and improvement of GAAP, (ii) by actively participating in the development of IFRS, and (iii) by enhancing relationships and communications with other national standard-setters. He stated:

I believe that working toward the development of more comparable global accounting standards is important to reducing complexity in financial reporting. That’s why we continue to collaborate and cooperate with the IASB and national standards setters with an eye toward agreeing on and adopting standards that promote common outcomes. [...]. We have continued to consult with the IASB on issues of mutual interest, even as we’ve strengthened our existing relationships with other standard setters. This has helped promote the broader flow of information and ideas that mutually inform each other’s thinking and contribute to an environment that will foster greater convergence.

In the context of strengthened relationships with other national standard-setters, Mr Golden mentioned individual meetings with standard-setters from Canada, Japan, China, South Korea and other countries and explained that the FASB expects to have joint meetings with them in 2017 to talk about respective priorities and future initiatives. He concluded: "Such relationships help us improve financial reporting, while at the same time bringing us all closer to common solutions around the globe."

The full transcript of the speech is available on the FASB’s website.

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