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FASB (US Financial Accounting Standards Board) (lt blue) Image

FASB proposes guidance on presentation

12 Aug 2016

The US Financial Accounting Standards Board (FASB) has released an exposure draft proposing changes related to how items are presented in a financial statement as part of the FASB’s larger project to create a new conceptual framework.

The proposed changes address how to group individual recognised items into line items and subtotals and clarify the relationships among assets, liabilities, and equity, along with the effects of related changes on comprehensive income and cash flows.

Originally, the IASB and the FASB decided to review and revise their conceptual frameworks together, however, changed priorities and the slow progress in the project led to the project being abandoned in 2010. In 2012, the IASB reactivated the conceptual framework project as an IASB only project given the multitude of open conceptual issues it is facing in many of its current projects. In May 2015, the IASB published an exposure draft of a new Conceptual Framework in which Chapter 7 Presentation and disclosure discussed concepts that determine what information is included in the financial statements and how that information should be presented and disclosed. In parallel, the IASB is conducting a primary financial statements project examining possible changes to the structure and content of the primary financial statements. The project is in the stage of early research and was last discussed in May 2016.

For more in­for­ma­tion on the new FASB exposure draft, see the press release, a FASB in Focus newsletter, and the ED on the FASB’s website.

IASB (International Accounting Standards Board) (blue) Image

2016 IFRS 'Green Book' coming soon

11 Aug 2016

The IFRS Foundation has announced that 'A Guide through IFRS 2016' will be available in September.

This volume (nicknamed the "Green Book") will include the full text of the Standards and In­ter­pre­ta­tions and ac­com­pa­ny­ing documents (such as the Basis for Con­clu­sions) issued by the IASB as at 1 July 2016 with extensive cross-ref­er­ences and other an­no­ta­tions. This edition does not contain documents that are being replaced or su­per­seded but remain ap­plic­a­ble if a reporting entity chooses not to adopt the newer versions early.

The new re­quire­ments since 1 July 2015 include:

The Green Book will sell for £98 plus shipping for the two book set. More in­for­ma­tion and ordering details are available on the IASB's eIFRS website.

IASB (International Accounting Standards Board) (blue) Image

IASB provides updates to insurance project

10 Aug 2016

The IASB has provided additional information on its upcoming insurance standard related to field work, feedback statement on its Exposure Draft (ED), “Insurance Contracts”, and the effect of board redeliberations.

For more information, see the insurance project page on the IASB’s website.

WSS (World Standard Setters) (mid blue) Image

World Standard-setters meeting programme available

09 Aug 2016

A draft programme has been released for the upcoming World Standard-setters meeting, which is being held in London on 26-27 September 2016.

A summary of the programme is set out below:

Monday, 26 September 2016 (09:00 - 18:30)

  • Welcome address
  • 2015 Agenda Consultation & IFRS Foundation's review of structure and effectiveness
  • IASB Technical programme update
  • Implementation and education update
  • Reporting financial performance – case study
  • Optional sessions (first round)
    • IFRS 15 Revenue from Contracts with Customers
    • IFRS 9 Financial Instruments
    • IFRS 16 Leases
    • Insurance contracts
    • Translations Adoption Copyright Team presentation
  • Optional sessions (second round)
    • IFRS 15 Revenue from Contracts with Customers
    • IFRS 9 Financial Instruments
    • IFRS 16 Leases
    • IFRS for SMEs
    • Disclosure initiative

Tuesday, 27 September 2016 (08:00 - 13:00)

  • Optional session with the translations adoption copyright team
  • Feedback on reporting financial performance case study
  • Conceptual Framework
  • Working with National Standard-Setters

Papers for the meeting are expected to be made available in due course on the IASB's website.  The WSS meeting will be immediately followed by a meeting of the International Forum of Accounting Standard Setters (IFASS).

IPSASB (International Public Sector Accounting Standards Board) (mid gray) Image

IPSASB releases financial instruments webinar

09 Aug 2016

The International Public Sector Accounting Standards Board (IPSASB) has created a two-part webinar on financial instruments with Part A of the webinar covering the classification and measurement, as well as impairment of financial instruments, and Part B covering hedge accounting.

The webinar serves as an education session in the context of the IPSASB’s current project to update its suite of IPSAS pronouncements on financial instruments (IPSAS 29 Financial Instruments: Recognition and Measurement, IPSAS 28 Financial Instruments: Presentation, and IPSAS 30 Financial Instruments: Disclosures), and provides an overview of the key changes introduced by IFRS 9 Financial Instruments as issued by the IASB.

The webinar can be accessed through the IPSASB website.

Leaf - sustainability (green) Image

Recent sustainability reporting developments

08 Aug 2016

A summary of recent developments at the GRI/GSSB, the SASB and the CDP.

The Global Sustainability Standards Board (GSSB) of the Global Reporting Initiative (GRI) has published a draft of its future work programme for public consultation, and invites feedback from all stakeholders to help determine priorities for the next three years. The public consultation period for the draft work programme will remain open until 28 September 2016. For a comprehensive view of the work areas outlined, and to give your input, please see the draft GSSB Work Program on the GRI website.

The public comment period for the draft GRI Standards has ended and the GRI Standards Division and the GSSB are analysing the feedback and considering how it will influence the final standards. A first overview of the feedback received is available on the GRI website.

The United States Sustainability Accounting Standards Board (SASB) has released a video recoding featuring a simple overview of the SASB's work and mission and pointing out tools and resources available. The recording can be accessed on YouTube.

The Carbon Disclosure Project (CDP) reports that a record number of cities are now measuring and disclosing environmental data on an annual basis in order to manage emissions, build resilience, and protect themselves from the growing impacts of climate change. The press release on the CDP website offers an overview of how the total 70% increase from 2015 numbers translates into regional developments.

FASB (US Financial Accounting Standards Board) (lt blue) Image

FASB solicits feedback on agenda consultation

04 Aug 2016

The FASB has issued an invitation to comment, “Agenda Consultation” to solicit stakeholder feedback on which topics should be added to the FASB’s agenda.

Topics discussed in the invitation to comment include:

  • Intangible assets, including research and development.
  • Pensions and other postretirement benefit plans.
  • Distinguishing liabilities from equity.
  • Reporting performance and cash flows.

Comments are due by 17 October 2016. Public roundtable meetings on the invitation to comment are expected to be held in the fourth quarter of 2016. For more information, see the press release and invitation to comment on the FASB’s website.

The IASB also has similar projects on its agenda for post-employment benefits (including pensions), liabilities and equity, and primary financial statements (performance reporting). For more information, see the IASB’s Agenda Consultation 2015.

Monitoring Board (blue) Image

IFRS Foundation Monitoring Board publishes work plan

02 Aug 2016

The IFRS Foundation Monitoring Board, responsible for the oversight of the IFRS Foundation, has published its work plan. The Board expects that it will carry out the activities in the “near-term”.

The Monitoring Board organised its plan into three sections, work related to:

  • Trustees’ oversight of the IASB — Provide comments on the IASB’s due process arrangement and refer agenda items to the Trustees.
  • Trustees — Review (1) the Trustees’ Review of Structure and Effectiveness and (2) the June 2016 proposal to amend the IFRS Foundation Constitution. The Monitoring Board also plans to review the Trustees’ financial arrangements and participate in the Trustee nomination process.
  • Monitoring Board — Conduct a periodic review of existing Monitoring Board members and consider rotating members.

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

Document (mid gray) Image

Group of CEOs sees realistic public reporting as integral part of good corporate governance

02 Aug 2016

A group of CEOs has issued a set of commonsense corporate governance principles for public companies, boards of directors, and shareholders. The principles are intended to provide a basic framework for sound, long-term-oriented governance. Among the topics discussed is also public reporting with a focus on earnings guidance and non-GAAP measures.

The principles state that a company should take a long-term strategic view and explain clearly to shareholders how material decisions and actions are consistent with that view. Required quarterly reporting should reflect this view and provide an outlook for trends and metrics that reflect progress on long-term goals. The principles note that making short-term decisions to beat guidance is "likely to be value destructive in the long run".

According to the priciples, companies should not feel obligated to provide earnings guidance, but if they decide to so so, they should first determine whether it “does more harm than good”. Also, the guidance “should be realistic and avoid inflated projections”.

Finally, the priciples stress that companies are required to report their results in accordance with Generally Accepted Accounting Principles (GAAP). While the group of CEOs believes that "it is acceptable in certain instances to use non-GAAP measures to explain and clarify results for shareholders" they also stress that "such measures should be sensible and should not be used to obscure GAAP results". They also stress that all compensation expenses, including equity compensation, should be reflected in any non-GAAP measures of earnings as they are plainly a cost of doing business.

For more information, see the press release and principles on the website especially set up for this purpose.

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG announces composition of the working groups for insurance and financial instruments

29 Jul 2016

The European Financial Reporting Advisory Group (EFRAG) has announced the new composition of their Insurance Working Group and Financial Instruments Working Group.

The composition of the working groups contains a balance of different backgrounds and geographical origins. The compositions are as follows:

EFRAG Insurance Accounting Working Group (effective 1 September 2016):

  • Ambrogio Virgilio, Chairman, EFRAG TEG member, auditor
  • Sebastien Arnault, auditor
  • Alexander Dollhopf, actuary
  • Luca D'Ofronio, user
  • Hugh Francis, insurance industry
  • Joachim Kölschbach, auditor
  • Jasper Kolsters, auditor
  • Malin Löfbom, insurance industry
  • Sophie Massol, insurance industry
  • Richard Olswang, actuary
  • Jean-Michel Pinton, insurance industry
  • Sabrina Pucci, academic
  • Thomas Ringsted, auditor and actuary
  • Roman Sauer, insurance industry
  • Massimo Tosoni, insurance industry
  • Gail Tucker, auditor
  • Carsten Zielke, user

EFRAG Financial Instruments Working Group (effective 1 September 2016):

  • Andrew Spooner Chairman, auditor
  • Jens Berger, auditor
  • Lisa Bomba, banking
  • David Bradbery , banking
  • Riccardo Bua Odetti, auditor
  • Alan Chapman, auditor
  • Pierre-Henri Damotte, banking
  • Chiara Del Prete, banking 
  • Karin Eisenhut, banking
  • Fabio Goia, banking
  • Laure Guegan, auditor
  • Vincent Guillard, auditor
  • Rastislav Kovácik, banking
  • Selma Marte, banking
  • Colin Martin, auditor
  • Raoul Vogel, auditor

For more information, see the press release on the EFRAG’s website.

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