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IASB posts webcast featuring Sue Lloyd on IFRS 16 exemptions

03 May 2016

As part of the IASB's webcast series on IFRS 16 implementation, the IASB staff has made available a webcast on recognition exemptions for lessees, featuring IASB board member Sue Lloyd.

The webcast discusses the IFRS 16 requirements relating to the recognition exemptions and provides Ms. Lloyd's insight on the scope exemptions, practical examples, and implementation information.

The new webcast and all previous webcasts of the series available on the IFRS 16 implementation page on the IASB’s website.
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ECON report criticises current accounting standard-setting

03 May 2016

The Committee on Economic and Monetary Affairs (ECON) of the European Parliament has initiated a report that is rather critical of the activities of the IFRS Foundation, EFRAG and the PIOB. The report will not be legally binding but will possibly be voted on in a plenary session of the European Parliament in May and if agreed will be used as guidance and reference in future EU law-making processes.

The report stresses that ECON members see shortcomings in the governance of the IFRS Foundation and the IASB, notably in terms of transparency, prevention of conflicts of interest and diversity of Board members. The report also calls for also a more diversified and balanced financing structure also based on fees and public sources. The report's authors feel that their position is backed by the high degree of funding of the IASB's budget (14%) and of EFRAG (60%) by the European Union and conclude that this means that both organisations have to follow the European Parliament standards of democratic legitimacy, transparency, accountability and integrity.

The following documents are publicly available (all on the European Parliament website):

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Economic consequences of disclosure and financial reporting regulation

02 May 2016

New joint research from the University of Chicago and the University of Miami suggests that further research into market-wide effects and externalities from regulation is still needed.

A new paper published in the Journal of Accounting Research looks into the economic consequences of disclosure and financial reporting regulation (including IFRS adoption), drawing on U.S. and international evidence. The authors highlight the challenges with quantifying regulatory costs and benefits, measuring disclosure and reporting outcomes, and drawing causal inferences from regulatory studies, but come to the following conclusions:

  • There is a general lack of evidence on market-wide effects and externalities from regulation even though such evidence is central to the economic justification of regulation.
  • Evidence on causal effects of disclosure and reporting regulation is still relatively rare.
  • There is also a lack of evidence on the real effects of such regulation.

The article concludes with several specific suggestions for future research. It can be downloaded (for a charge) through the Wiley Online Library or accessed free of charge through SSRN.

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IASB posts fifth webinar on insurance contracts standard

29 Apr 2016

The IASB has posted the fifth instalment of its weekly webinar series on the upcoming insurance contracts standard.

The series, hosted by IASB member Darrel Scott, will discuss the following topics related to the upcoming insurance contracts standard:

  • The need for change and the history of the project. (issued 1 April)
  • What is an insurance contract? (issued 8 April)
  • Initial measurement of insurance contracts. (issued 15 April)
  • Subsequent measurement of insurance contracts. (issued 22 April)
  • Modifications to the general model: variable fee contracts. (issued 29 April)
  • Other modifications to the general model.
  • Presentation and disclosure.
  • Applying the Standard for the first time.

For more information as well as presentation slides, see the webinar page on the IASB’s website.

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Agenda and pre-meeting summaries for the May 2016 IFRS Interpretations Committee meeting

29 Apr 2016

The IFRS Interpretations Committee will meet at the IASB's offices in London on 10 May 2016. The agenda for the meeting is now available. We have also posted our pre-meeting summaries for the meeting that allow you to follow the decision making more closely.

The committee will be considering papers related to 10 topics. Three of those topics (Agenda items 6, 8 and 10) were originally scheduled for discussion in the March meeting but the Committee did not have sufficient time to deal with these matters. The staff papers for those topics are unchanged from those posted in March.

For eight of the matters being discussed the staff are recommending that the Interpretations Committee not take them onto the agenda. If the Committee agrees with these recommendations it will finalise three items and issue tentative decisions for the other five:

  • Recommended final agenda decisions: Government assistance on research activities; derecognition of modified financial assets; and the recoverable and carrying amounts of a cash-generating unit in an impairment assessment.
  • Recommended tentative agenda decisions: impairment of an investment in an associate or joint venture; service concession arrangements with leased infrastructure; written puts over NCI; recovery of deferred tax on indefinite life intangible assets; and fees and costs included in the derecognition test for financial liabilities.   

The meeting will also include a discussion the comments received on a proposal to amend IAS 40 Investment Property in relation to the conditions for reclassifying property to, or from, investment property. The Interpretations Committee has been developing the amendment for the IASB. The staff are recommending that, subject to some modifications to the proposal, the Interpretations Committee ask the Board to finalise the amendments. 

The remaining item is the draft interpretation of IAS 21 The Effects of Changes in Foreign Exchange Rates, when there is advance consideration. Discussion of this item is likely to continue at future meetings of the committee.   

The full agenda for the meeting and our detailed pre-meeting summaries can be found here. We will update this page for any changes to the agenda and our Deloitte observer notes from the meeting as they become available.

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IFRS Foundation publishes first update to IFRS Taxonomy 2016

28 Apr 2016

The IFRS Foundation has published 'Update 1 to the IFRS Taxonomy 2016'.

The taxonomy updates contain additional taxonomy concepts that reflect new IFRSs and improvements to IFRSs, technical updates, and corrections. This update includes taxonomy elements for the January 2016 final amendments to IAS 7 under the disclosure initiative.

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

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IFRS Foundation appoints Director of Education

28 Apr 2016

The IFRS Foundation has appointed Mr Matt Tilling as its new Director of Education responsible for the development of the organisation's educational activities.

Support of the consistent application of IFRSs through developing a wider range of educational activities is part of the Foundation's part strategic plan for 2016 and beyond. As of May 2016, Mr Tilling will be part of the newly-formed integrated team covering interpretations of standards, implementation, adoption support and educational activities. He was was previously based in Perth, Australia, where he split his time between professional accounting and academia.

Please click for the press release on the IASB website.

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FASB discusses credit impairment at April 27 meeting

27 Apr 2016

At its 27 April 2016, meeting, the FASB discussed its credit impairment project and the progress of the transition resource group (TRG) on credit losses. The Board authorized the staff to draft a final standard and also made tentative decisions related to (1) credit quality disclosures, (2) the effective date of the final standard and whether the guidance can be early adopted, and (3) the costs and benefits of the final standard.

The final ASU is expected by the end of the second quarter of 2016. The FASB staff will continue to assess and present to the Board any additional issues identified during the drafting of the final ASU.

Until June 2012, the FASB and the IASB jointly deliberated an expected-loss impairment model, which was broadly similar to the IFRS 9 impairment approach issued by the IASB on 24 July 2014. In response to feedback from U.S. constituents on the joint model, however, the FASB decided to develop an alternative expected credit loss model. Accordingly, the FASB’s new credit impairment approach differs from that under IFRSs.

For more information, see Deloitte’s related journal entry as well as the press release on the FASB’s Web site.

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IASB's investor programme gains three new members

27 Apr 2016

In December 2014, the International Accounting Standards Board (IASB) launched a new 'Investors in Financial Reporting' programme designed to foster greater investor participation in the development of International Financial Reporting Standards (IFRS). The number of investment organisations participating in the programme has now risen to 18.

As part of the programme, the investment firms commit to an ongoing dialogue, executive level support of the programme and access to analysts and portfolio managers. In return, the IASB has committed to providing an improved channel through which to influence standard development, developing investor-tailored webcasts, providing investor-friendly articles on proposed changes, providing access to IASB members and staff, and providing investor-focused education sessions.

Please click for press release announcing the increased membership on the IASB's website.

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Agenda for the May 2016 Emerging Economies Group meeting

27 Apr 2016

The agenda is available for the eleventh meeting of the IASB's Emerging Economies Group (EEG), which is being held in Istanbul on 3-4 May 2016.

The agenda is summarised below:

Tuesday 3 May 2016 (09:00-17:00)

  • Address by hosting country (Turkey)
  • Address by the EEG Chair
  • Presentations on Government grants
  • Discussion: Government grants
  • Administrative issues (topics for future meetings)

Wednesday 4 May 2016 (09:00-12:50)

  • IASB updates
  • IAS 16: Accounting for proceeds and costs of testing PPE
  • IAS 32: Classification of the liability for a prepaid card in the issuer’s financial statements
  • IAS 16 and IAS 38: Variable payments for asset purchases
  • Open discussion on topics from members
  • Discussion and approval of the communiqué
  • Meeting summary

 Agenda papers from this meeting are available on the IASB's website.

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