This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.


AASB (Australian Accounting Standards Board) (lt blue) Image

AASB research report concludes that IFRS adoption has benefited the Australian economy

27 Oct 2016

As part of a larger IFRS review project, the Australian Accounting Standards Board (AASB) has published Research Report No. 3 'The impact of IFRS adoption in Australia: Evidence from academic research'. After more than ten years of application of IFRSs in Australia, the AASB is looking into whether IFRS has improved the quality of financial reporting in Australia und whether it has improved comparability of Australian entities’ financial reporting with their global peers.

The third research report draws from 35 high-quality published empirical studies and looks the impact of IFRS adoption on publicly-listed Australian companies and other capital market participants. The key findings cited in the report are:

  • IFRS adoption by Australian companies appears to have had a positive outcome for investors and analysts based on research revealing improved analyst following, and analyst forecast accuracy.
  • Some studies reported positive outcomes through improvements in the value relevance of financial reports post-IFRS adoption, and reductions in the number of firms engaging in earnings management.
  • Most studies reported positive results in terms of the promotion of the comparability of Australian entities’ financial reporting practices with their global peers.
  • Survey research around the time of IFRS adoption revealed a degree of pessimism among managers from listed Australian companies towards many of the possible benefits from accounting convergence.

Based on these findings, the report concludes that (i) the FRC directive regarding adoption of IFRS in Australia continues to be appropriate; (ii) most of the research findings generally support the view that IFRS adoption has benefited the Australian economy; and (iii) there is no significant evidence suggesting reconsideration of adopting IFRS is warranted.

Please click to access the press release and the research report on the AASB website.

IFRS IC meeting (blue) Image

Agenda for the November 2016 IFRS Interpretations Committee meeting

27 Oct 2016

The IFRS Interpretations Committee will meet at the IASB's offices in London on 8 November. The agenda for the meeting is now available.

The IFRS Interpretations Committee will continue its discussions on an issue regarding IFRS 9/IAS 39, deliberate comment letters received on an issue regarding IAS 12, finalise agenda decisions on IAS 12 and IAS 32, consider new issues on IFRS 10, IFRS 9 (two issues), IFRS 5/IFRS 9/IAS 39 and commodity loans (an issue not falling into any particular standard), consider an issue on hold regarding IAS 28; and discuss the PIR of IFRS 13.

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

CMAC (Capital Markets Advisory Committee) (mid blue) Image

Agenda for November 2016 CMAC meeting

26 Oct 2016

Representatives from the International Accounting Standards Board (IASB) will meet with the Capital Markets Advisory Council (CMAC) in London on 3 November 2016. The agenda for the meeting has been released.

The full agenda for the meeting is sum­marised below:

Thursday, 3 November 2016 (09:00-16:30)

  • IASB update
  • Accounting options
  • Post-implementation review of IFRS 13 Fair Value Measurement
  • Digital reporting
  • Primary financial statements

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

IASB (International Accounting Standards Board) (blue) Image

IFRS Foundation Trustees seek IASB Board members

26 Oct 2016

The IFRS Foundation Trustees are seeking to appoint up to seven Board Members in July 2017.

IASB members are appointed for an initial five-year term with the possibility of being reappointed for another three years (in exceptional circumstances for another five years). Nominations for IASB board membership close on 25 November 2016. For more information, see the press release and the IASB members application page on the IASB’s website.

FEE (Federation of European Accountants - Fédération des Experts-comptables Européens) (lt green) Image

FEE responds to EBA consultation on guidance on accounting for expected credit losses

26 Oct 2016

In July 2016, the European Banking Authority (EBA) launched a consultation on draft guidelines on credit institutions' credit risk management practices and accounting for expected credit losses. The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has responded to the consultation and asks for clarifications regarding the intended interaction between prudential and accounting requirements.

The EBA draft guidelines build on the guidance by the Basel Committee on Banking Supervision (BCBS) in December 2015 on the same matter and feature a detailed section on the application of IFRS 9 Financial Instruments.

FEE states that any alignment at EU level should stay as close as possible to international requirements and the guidance from the BCBS to ensure consistent interpretations of IFRS 9 and achieve a high-quality ECL model across different jurisdictions. As regards the proposed EBA guidelines, FEE fears that their scope is wider than the scope of the BCBS guidelines and stresses that FEE "has the clear expectation that the EBA has not and does not intend to have the authority to establish requirements for financial statements". FEE concludes: "Prudential and accounting approaches cannot be similar and it should be noted that there are important differences".

For more information please access the press release and the consultation response on the FEE website.

ITCG meeting (mid blue) Image

Summary of the September 2016 ITCG conference call

25 Oct 2016

The IASB has published notes to the IFRS Taxonomy Consultative Group (ITCG) conference call held on 14 September 2016.

The ITCG discussed:

  • proposed common practice additions for leisure and agriculture;
  • revised IFRS Taxonomy terms and conditions; and
  • the ITCG review of amendments to IFRS 4 Insurance Contracts.

For more information, see the summary on the IASB's website.

Coincidentally, the ITCG is meeting face to face today in London. Topics discussed today are:

  • Better Communication
  • Update on activities
  • Principle-based reporting and the technological world
  • Entity-specific disclosures – task force progress
  • IFRS Taxonomy content and other areas
  • IFRS Technology
  • the ITCG UK Financial Reporting Lab – Digital Future

Supporting papers for this meeting are available on the IASB website.

Leaf - sustainability (green) Image

Recent sustainability and integrated reporting developments

23 Oct 2016

A summary of recent developments at the IIRC, IIRC/CIPFA, IIRC/WICI, GRI, and SASB.

The International Integrated Reporting Council (IIRC) Technology Initiative has released a guide for CFOs on using technology to drive multi-capital thinking. Technology for Integrated Reporting offers practical insights to help CFOs collaborate with their Chief Information Officer (CIO) to ensure that technology can enable progressive business management and reporting practice. The publication can be downloaded free of charge from the IIRC website.

Another publication developed by the IIRC, the Chartered Institute of Public Finance and Accountancy (CIPFA), and the World Bank provides guidance for public bodies around the globe to help them think holistically about their strategy and plans, make informed decisions and manage key risks in order to build stakeholder confidence and improve future performance. Focusing on Value Creation in the Public Sector is an introductory guide for leaders on integrated reporting to improve their understanding of the services the public sector delivers and the value they create. The publication can be downloaded free of charge from the IIRC website.

The IIRC and the World Intellectual Capital/Asset Initiative (WICI) have signed a joint statement of collaboration. The statement sets out how WICI and the IIRC advocate for the evolution of the management and reporting of an organization’s value creation story, with a distinctive focus on intellectual and associated capitals. The statement is available on the IIRC website.

The Global Reporting Initiative (GRI) has released a new publication Forging a path to integrated reporting: Insights from the GRI Corporate Leadership Group on integrated reporting. The publication summarises the work done by the GRI Corporate Leadership Group on integrated reporting, revealing challenges, questions raised, and solutions from a group of experienced companies which have chosen to use an integrated approach to reporting. The publication can be downloaded free of charge from the GRI website.

The United States Sustainability Accounting Standards Board (SASB) has announced the founding members of its Investor Advisory Group (IAG). Comprised of leading asset owners and asset managers, the group is committed to improving the quality and comparability of sustainability-related disclosure to investors, thereby enabling investors to develop a more comprehensive view of company performance. Please click for the press release on the SASB website.

The SASB has also released a new technical bulletin on climate risk. designed to help investors better understand, measure and manage their exposure to climate-related risk. The foreword to the guide emphasises the need for better disclosure. The publication can be downloaded free of charge from the SASB website.

Finally, the SASB has launched the 'SASB Navigator', a platform that combines financially material sustainability information with data and analytics to help users understand and analyse industries' and companies' sustainability performance and disclosure. More information is available on the SASB website.

IASB (International Accounting Standards Board) (blue) Image

IASB updates work plan

21 Oct 2016

Following its October 2016 meeting, the IASB has updated its work plan. Only little progress or slippage can be traced. Most noticeable is postponing the publication of the discussion paper until February 2017.

Changes to the work plan include:

Major projects

  • No changes (i.e. projects may have slipped by one month each, this cannot be identified)

Implementation projects

Research projects

  • Disclosure initiative — Principles of disclosure: A discussion paper is now expected in February 2017. During this week's meeting, the Staff revised the expected publication date of the discussion paper from mid-December 2016 to February 2017 in order to provide the Board with more time to focus on matters relating to the draft insurance standard.

Post-implementation reviews

  • A decision on the project direction in the post-implementation review of IFRS 13 Fair Value Measurement is now expected 'within 3 months'.

The revised IASB work plan is available on the IASB's website.

FRC (United Kingdom Financial Reporting Council) Image

FRC discussion paper on improving the statement of cash flows

21 Oct 2016

The UK Financial Reporting Council (FRC) has issued a discussion paper on improving the statement of cash flows with the aim of identifying possible evolutionary improvements to the requirements of IAS 7 'Statement of Cash Flows'.

Noting that IAS 7 is more than twenty years old and that it would be "surprising if improvements cannot be identified from the perspective of 2016", the paper presents some ideas to improve the usefulness of the statement of cash flows. The paper is divided into five sections:

  • The usefulness of information about cash flows
  • The classification of cash flows
  • Cash equivalents and the management of liquid resources
  • Reconciliation of operating activities
  • Direct or indirect method?

The discussion paper includes 11 specific questions relating to these sections but also invites any other comments on issues relating to possible improvements to the statement of cash flows.

The discussion paper and associated press release are available from the FRC website.

IASB meeting (blue) Image

October 2016 IASB meeting notes posted

20 Oct 2016

The International Accounting Standards Board (IASB) met at its offices in London on 18–19 October 2016. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

Tuesday 18 October

In April the IASB considered the general feedback it received on its proposed Practice Statement on materiality. In this meeting it discussed some of the specific issues raised. The Board supported most of the staff recommendations, but asked for more work to be done on materiality within the context of the primary financial statements versus notes, and the comparative versus corresponding approaches to presenting financial statements.

The Board continued its discussions on proposed changes to the Conceptual Framework, and is moving ahead with the sections addressing executory contracts, unit of account, asymmetry in treating gains and losses and materiality.

Two issues on the planned amendments to the segment reporting requirements were discussed.

The IASB decided that the comment period for the Discussion Paper on Principles of Disclosure should be 180 days, and noted that the expected publication date had been pushed back to February 2017.

The Board decided not to undertake an interim review of IFRS for SMEs, but will seek more input from the SME consultative group on how best to proceed with reviews.

Wednesday 19 October

The IASB ratified an Interpretation on advance consideration in a foreign currency. It also agreed to proceed with amendments on how proceeds from testing an asset are recognised.

In September the IASB blocked the publication of a draft Interpretation on the interaction between the impairment requirements in IFRS 9 and IAS 28. The Board voted to address the matter through an annual improvement.

The Board continued its discussions on its ongoing project on Financial Instruments with the Characteristics of Equity. It tentatively decided that economic incentives that are likely to compel an entity to settle an instrument in a particular way should not determine whether it is classified as a liability or equity.

The IASB was given a brief update of its research programme.

This was Philippe Danjou’s last meeting of the IASB, having completed 10 years as a Board member.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.