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.


IASB (International Accounting Standards Board) (blue) Image

IASB updates work plan

23 Nov 2015

Following its November 2015 meeting, the IASB has updated its work plan. As mentioned before, directly tracing the Board's progress on the individual projects has become impossible since the change of the work plan format in July, unless the Board makes definite progress or has to make larger corrections. Of these, a few can be identified in the November work plan.

On major projects, the Board notes no changes, which means that for all of these projects the next project steps may or may not have been pushed back by one month since the last work plan update.

Updates regarding the implementation projects are several:

Regarding interpretations, the projects on uncertainty over income tax treatment and foreign currency transactions and advance considerationwill now see decisions on the project direction within three months (was within six months).

Finally, two research projects have been updated:

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

ACCA (UK Association of Chartered Certified Accountants) (lt green) Image
IASB webcast (blue) Image

ACCA interview with IASB Chairman Hans Hoogervorst

23 Nov 2015

The Association of Chartered Certified Accountants (ACCA) has made available a short recorded interview with IASB Chairman Hans Hoogervorst entitled 'IASB takes stock'.

In the interview, Mr Hoogervorst generally takes stock and then expands on four questions:

  • Has the Board's private, not-for-profit status been a hindrance or a help?
  • Who are IFRS for?
  • How do you think the Board's due process has been working?
  • What's next for the IASB?

Please click to access the interview, which runs slightly over five minutes, on the ACCA website.

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

FEE calls for an international solution of the effective date problem

21 Nov 2015

The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has commented on the draft letter from the European Financial Reporting Advisory Group (EFRAG) to the European Commission supplementing its endorsement advice on adoption of IFRS 9 'Financial Instruments'.

Just as the European Securities and Markets Authority (ESMA) yesterday, FEE believes the problem should not be solved on a European level alone (by means of a carve-out). On 10 November 2015, EFRAG published a draft letter to the European Commission, stating that EFRAG is "not in a position to amend" its endorsement advice on IFRS 9 and extend it to businesses carrying out insurance activities.

FEE point out that the problem does not only affects European companies, therefore an international solution needs to be found - as the IASB is trying to do in its dedicated limited scope project. However, FEE notes in its letter that the approaches the IASB is pursuing are of different merit. FEE believes that the deferral approach should be chosen over the overlay approach as the latter was too complex. However, FEE also points out that the deferral approach needs to be investigated further as the current requirement of passing an insurance activities’ predominance test at the reporting entity level would mean that some insurers and more generally the insurance activities included in the financial statements of banking groups would not qualify. FEE suggests finding a deferral solution that goes below the reporting entity level or to widen the scope of the solution by reconsidering the predominance test for insurance activities.

Please click to access the full comment letter on the FEE website.

ESMA (European Securities and Markets Authority) (dark gray) Image
European Union Image

ESMA believes IFRS 9 carve-out for insurance activities "not a feasible solution"

20 Nov 2015

The European Securities and Markets Authority (ESMA) has commented on the draft letter from the European Financial Reporting Advisory Group (EFRAG) to the European Commission supplementing its endorsement advice on adoption of IFRS 9 'Financial Instruments'.

On 10 November 2015, EFRAG published a draft letter to the European Commission, stating that EFRAG is "not in a position to amend" its endorsement advice on IFRS 9 although the IASB has decided to propose a deferral approach and an overlay approach, both aimed at addressing the mismatch, in December this year. EFRAG argued that any final decisions in the project will be made at the earliest in six to nine months from now and that uncertainty exists as to whether the IASB will provide an appropriate remedy when it makes these final decisions.

In its letter to EFRAG, ESMA emphasises the importance of fully implementing IFRS 9 and of applying the expected loss model to financial assets in a timely manner, as the introduction of the expected loss model responds to an important G20 request following the financial crisis. Even though final amendments to IFRS 4 adressing the mismatch are not to be expected until mid-2016, ESMA highlights that the IASB responded quickly and adequately to EFRAG’s concerns about the different application dates. ESMA states:

ESMA reiterates its position that a European carve-out is not a feasible solution for insurance activities in light of their global nature. [...] In light of the solution for the insurance industry being developed by the IASB, ESMA is of the view that EFRAG should enable endorsement of IFRS 9 in the EU as soon as possible.

Please click for access to the full comment letter on the ESMA website.

ITCG meeting (mid blue) Image

Summary of the October 2015 ITCG meeting

20 Nov 2015

The IASB has published notes to the IFRS Taxonomy Consultative Group (ITCG) meeting held on 27 October 2015.

The ITCG discussed:

For more information, see the meeting notes on the IASB website.

IASB document (blue) Image

IASB publishes proposals for amendments under its annual improvements project (cycle 2014-2016)

19 Nov 2015

The International Accounting Standards Board (IASB) has published an exposure draft 'Annual Improvements to IFRSs 2014–2016 Cycle'. It contains proposed amendments to three International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by 17 February 2016.

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The ED proposes the following amendments:

IFRSSubject of amendment

IFRS 1 First-time Adoption of International Financial
Reporting Standards

To delete 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

To clarify 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

To clarify 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

ED/2015/10 Annual Improvements to IFRSs 2014–2016 Cycle contains no proposed effective dates for any of the proposed amendments. The intention is to decide on these after the exposure period.

Please click for the following additional information:

IASB document (blue) Image

IASB proposes amendments to IAS 40 on transfers of investment property

19 Nov 2015

The International Accounting Standards Board (IASB) has published an Exposure Draft (ED) of proposed amendments to IAS 40 'Investment Property'. The amendments address transfers of investment property. Comments are requested by 18 March 2016.



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 tentatively 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.


Suggested changes

The amendments proposed in ED/2015/9 Transfers of Investment Property (Proposed amendment to IAS 40) are:

  • Paragraph 57 will be 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. The change of use shall consist of the property meeting, or ceasing to meet, the definition of investment property.
  • The list of examples of evidence in paragraph 57(a) – (d) will be presented as a non-exhaustive list instead of an exhaustive list.


Effective date and transition requirements

The ED does not contain a proposed effective date. However, the ED proposes that the amendments would be applied retrospectively and that early application should be permitted.


Additional information

Please click for:

IFRS Foundation (blue) Image
XBRL (eXtensible Business Reporting Language) (mid blue) Image

IFRS filing information for various jurisdictions

19 Nov 2015

The IFRS Foundation is currently collecting information on IFRS filing requirements around the world, including electronic filing requirements and IFRS Taxonomy adoption.

So far, the IFRS Foundation has collected this information for 19 jurisdictions: Australia, Austria, Canada, China, Hong Kong, Korea (South), Latvia, Lithuania, Macao, Malaysia, Mongolia, Myanmar, New Zealand, Rwanda, Saudi Arabia, Slovenia, Taiwan, Turkey, and Uganda.

Please click to access the IFRS filing profiles on the IFRS Foundation's website.

ESMA (European Securities and Markets Authority) (dark gray) Image

ESMA believes Conceptual Framework to be incomplete without guidance on liability and equity

18 Nov 2015

The European Securities and Markets Authority (ESMA) has commented on the IASB's exposure drafts ED/2015/3 'Conceptual Framework for Financial Reporting' and ED/2015/4 'Updating References to the Conceptual Framework'.

In its comment letter, ESMA supports the IASB's initiative and agrees with most proposals in the EDs. However, ESMA "regrets that the ED does not provide guidance on some essential issues in financial reporting which leaves the Conceptual Framework incomplete". The two point ESMA particularly stresses are:

  • According to ESMA, the ED does not include sufficient guidance on distinguishing between liability and equity. ESMA agrees with the view that the definition of a liability should be used to distinguish between liability and equity, but is concerned that the IASB has not sufficiently considered the issue yet. ESMA is also worried that dealing with this matter in a separate project might lead to subsequent changes to the definition of a liability.
  • ESMA is concerned that the ED does not attempt to define performance. ESMA concludes that as a result the Conceptual Framework will include neither a clear basis for distinguishing between items that should be recognised in profit or loss and items that should be recognised in other comprehensive income (DCI), nor a principle establishing whether and when recycling is appropriate.

Please click to access the full comment letter on the ESMA website.

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.