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News

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FASB issues ASU deferring the effective date of the new revenue standard

12 Aug 2015

The FASB has issued an ASU, “Revenue From Contracts With Customers (Topic 606): Deferral of the Effective Date,” which defers for one year the effective date of the new revenue standard for public and nonpublic entities reporting under U.S. GAAP.

For public business entities, as well as certain nonprofit entities and employee benefit plans, the effective date is annual reporting periods, and interim periods therein, beginning after December 15, 2017. The effective date for all other entities is one year later than this (i.e., December 15, 2018). Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016.

The IASB expects to issue its formal amendment to defer IFRS 15 in September.

For more information, see the press release and ASU on the FASB’s Web site.

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5th ANC Symposium on Accounting Research

12 Aug 2015

On 11 December 2015, the Autorité des Normes Comptables (ANC), the French standard setter, will host its 5th Symposium on Accounting Research in Paris. The general theme will be "The general principles of accounting, European criteria and IASB’s Conceptual Framework".

The Symposium will associate researchers in accounting, French, European and international stakeholders in accounting standard-setting, financial and accounting directors, auditors and chartered accountants. They will participate in a series of round tables on the main themes of the IASB’s Conceptual Framework. Participation in the Symposium is free of charge, however, prior registration is required.

Please click for the formal invitation and registration on the ANC website.

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IFRS Foundation publishes updated briefing for chief executives

11 Aug 2015

The IFRS Foundation has published '2015 IFRS—A Briefing for Chief Executives, Audit Committees and Boards of Directors'. The Briefing provides a broad, non-technical overview of Standards required for annual reporting beginning on 1 January 2015.

The Briefing includes a summary of the significant judgements and estimates to be made by those preparing financial statements that are compliant with IFRS. It also contains summaries of IFRS 9, IFRS 14 and IFRS 15.

eIFRS and Comprehensive subscribers can access an electronic version of the Briefing via the Latest Additions section of eIFRS (you will be required to provide your login details). Hard copies of the Briefing are also available for ordering through the IASB's Web Shop. Copies are priced at £32 each, plus shipping. Discounts are available for multiple copies, academics/students and residents of middle and low-income countries.

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IASB/FASB presentation at 2015 AAA annual meeting

11 Aug 2015

On 9 August 2015, at the American Accounting Association (AAA) annual meeting in Chicago, IL, IASB member Mary Tokar and FASB member Tom Linsmeier presented an update on the boards’ current joint projects.

The pre­sen­ters dis­cussed the back­ground, prin­ci­ples and next steps of the boards’ joint pro­jects. Topics dis­cussed in­cluded:

  • Con­cep­tual frame­work.
  • Dis­clo­sure initiative/frame­work.
  • Fi­nan­cial in­stru­ments.
  • Leasing.
  • Not-for-profit financial statement presentation.
  • Performance reporting.
  • Revenue recog­ni­tion.
  • FASB agenda overview.
  • IASB agenda overview.

The Pow­er­Point slides are avail­able in two parts on the FASB’s website:

In ad­di­tion, Pow­er­Point slides are avail­able for the 10 August 2015 pre­sen­ta­tion on financial statements of not-for-profit entities and the 11 August 2015 presentation on FASB/IASB/SEC updates.

For more information about the meeting, see the AAA’s website.

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IASB launches second agenda consultation on its future work programme

11 Aug 2015

The International Accounting Standards Board (IASB) launched today its second public consultation to seek broad public input on the strategic direction and overall balance of its future work programme. As the IASB's current agenda is very full as a result of the 2011 agenda consultation, the IASB's ability to consult is constrained by the current commitments in its work programme and the 2015 agenda consultation process is not as detailed as the previous process was.

Preface

In his introductory message, IASB Chairman Hans Hoogervorst notes that the agenda consultation is linked to the review of the structure and effectiveness of the organisation the Trustees of the IFRS Foundation launched in July 2015. The Trustees' questions with respect to the relevance of IFRS (including a possible extension of the IASB's remit beyond the current focus either in terms of the types of entity covered or the types of reporting) and consistent application are pertinent to any discussion of the IASB's agenda, and the IASB encourages stakeholders to consider both consultations jointly.

The IASB's approach to standard-setting

The first part of the agenda consultation paper is dedicated to the IASB’s approach to standard-setting since it has evolved significantly since the last agenda consultation. The IASB now pursues a standard-setting process that more clearly based on evidence. A detailed description is provided of the research phase, standards-level projects, maintenance and post-implementation reviews.

Current position and questions on the IASB’s work plan 2016–2020

The scope of the 2015 agenda consultation, which covers the IASB's work programme from mid-2016 to mid-2020, is limited by the expected level of standard-setting activity during that period. Therefore, the first section of the Request for Views (RfV) published today details the current situation. It describes the message received from the agenda consultation 2011 that stakeholders thought that the IASB should dedicate additional resources to the implementation and maintenance of IFRS. It also offers an overview of all projects currently on the IASB's agenda including expected completion.

The IASB concludes that the 2015 agenda consultation process is constrained by both the capacity of the IASB to take on additional technical projects and by the stakeholders' ability to deal with the change that results from standard-setting activities. Against this backdrop the IASB asks in the RfV whether constituents believe that the IASB's current balance of projects (major/implementation/research) is right, whether any additional projects should be added to the major projects work programme, whether enough implemenation support is provided, and whether the pace current of change is right.

A substantive part of the RfV is dedicated to the interplay of research with the work programme. The research programme, initiated as a response to the agenda consultation 2011, was established as a broad-based programme with a relatively low threshold for adding projects. Most of the projects now on the research programme were added at that time. The IASB has since introduced a more disciplined approach to the research programme and assigned the projects to exploratory, assessment and development phases. Still the research agenda is very full.

The IASB wants to ensure that all projects on the agenda fill an existing gap in IFRS, increase the relevance of IFRS, and/or support the consistent application of IFRS. It therefore asks respondents what priority they would ascribe to each topic on the research programme, whether there are there any topics that should be added to the research programme, and whether there are any topics that should be deleted from the research programme.

Frequency of agenda consultations

In the third section of the RfV, the IASB asks respondents whether a three-yearly agenda consultation process is appropriate in view of the fact that the time frame for developing and issuing standards is a long one. The IASB proposes that a five year interval between agenda consultations is more appropriate than the three year interval currently required.

Additional information

The IASB makes the agenda consultation document and several supporting documents and links available on its website:

Deloitte's IFRS Global Office has published an IFRS in Focus newsletter outlining the contents of the Request for Views: Agenda Consultation 2015.

Comments on the consultation document are required by 31 December 2015.

 

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EFRAG draft comment letter on the IASB's exposure draft on updating references to the Conceptual Framework

11 Aug 2015

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on IASB exposure draft (ED) ED/2015/4 “Updating References to the Conceptual Framework”.

On 28 May 2015, the IASB issued two EDs, ED/2015/3and ED/2015/4, forming together a new proposed Conceptual Framework and proposed upates of references to the framework. EFRAG published a document for public consultation on the proposed new Conceptual Framework early in July 2015 and later that month requested to extend the comment period related to the ED. The draft comment letter published now refers to the accompanying proposed amendments to IFRS 2, IFRS 3, IFRS 4, IFRS 6, IAS 1, IAS 8, IAS 34, SIC-27 and SIC-32 in order to update those pronouncements with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework.

In the draft comment letter EFRAG expresses concerns about possible unintended effects of the proposed amendments and believes that the amendments should remain editorial in nature. It further questions the feasibility and the enforceability of the proposed amendments to IAS 8 as the exclusive link to the conceptual framework may be difficult to establish.

Comments on the draft comment letter are due by 26 October 2015.

For more information, see the press release and draft comment letter on the EFRAG’s website.

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Two new IPSASB videos on adopting and implementing IPSASs

11 Aug 2015

The International Public Sector Accounting Standards Board (IPSASB) has issued two new videos as part of a series examining the challenges and benefits of governments adopting International Public Sector Accounting Standards (IPSASs) and accrual accounting.

In the video interviews IPSASB members from different nations describe the process and share key details, timelines, and lessons learned in their jurisdictions in connection with the adoption of IPSAS. The two new videos are (both links to YouTube):

In January 2015, the IPSASB had already published videos on Brazil, New Zeland, and Switzerland.

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FASB Chairman on IFRSs: “one size does not fit all”

11 Aug 2015

In the latest issue of the FASB’s quarterly e-newsletter, "FASB Outlook," Chairman Russ Golden discusses the importance of “comparable” global accounting standards while noting that the United States is “unlikely” to adopt IFRSs or give public companies the option of using IFRSs when filing financial statements with the SEC.

Mr. Golden explains the lack of U.S. support for mandating IFRSs:

Perhaps the most important driver of this development is the increased recognition among U.S. stakeholders that legal, regulatory, and cultural differences among and between jurisdictions are likely to result in at least some variation in the way that accounting standards are written, applied in practice and enforced. In short, it has become clear that one size does not fit all.

That said, we at the FASB continue to believe that global accounting standards should be as comparable as possible — and we remain fully committed to the long-term, aspirational goal of developing global accounting standards that have the fewest possible differences.

Mr. Golden cites accounting projects on which the FASB and IASB have converged their guidance (e.g., revenue recognition, business combinations) as examples of how standard setters should collaborate to produce “high-quality, compatible” accounting standards. He further stresses the importance of working with national standard setters, some of whom “continue to permit businesses to choose among a variety of approaches to accounting, including distinct national versions of generally accepted accounting principles.” 

For more information, see "From the Chairman's desk" in the FASB Outlook newsletter on the FASB’s website.

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IASB proposes deferring the effective date of September 2014 amendments to IFRS 10 and IAS 28

10 Aug 2015

The International Accounting Standards Board (IASB) has published an Exposure Draft (ED) of proposed amendments to IFRS 10 'Consolidated Financial Statements' and IAS 28 'Investments in Associates and Joint Ventures'. The amendments aim at deferring the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity method has been concluded. Comments are requested by 9 October 2015.

 

Background

On 11 September 2014, the IASB issued Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) as result of the work on one of the issues in relation to the transfers of assets between an investor and its associates or joint ventures the IASB was considering. Among the issues that were also considered at that time was the elimination of gains or losses arising from transactions between an entity and its associate or joint venture where an exposure draft (ED) had been announced for November 2014 but was never published. A second attempt at progressing with the issues in the November ED was undertaken in February 2015, now combined with addressing an identified conflict of the September 2014 amendments with IAS 28. However, in June 2015 the IASB decided that it wants to deal with the issues in the February ED more comprehensively as part of its research project on the equity method of accounting. To avoid that entities would need to change the way in which they apply IAS 28 twice in a short period of time the IASB also decided to defer the effective date of the September 2014 amendments until it has finalised amendments, if any, that result from the research project on the equity method.

 

Suggested changes

The amendments proposed in ED/2015/7 Effective Date of Amendments to IFRS 10 and IAS 28 aim at deferring the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity method has been concluded. The IASB suggests that earlier application of the September 2014 amendments should continue to be permitted.

 

Timeframe

Comments on the proposal are requested by 9 October 2015. The IASB will then consider the comments received to decide whether to proceed with this amendment. As the effective date of the 2014 amendments is currently 1 January 2016, the IASB would need to finalise its proposal 31 December 2015 in order to achieve the intended deferral.

 

Additional information

Please click for:

 

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IFAC translations better accessible

10 Aug 2015

The International Federation of Accountants (IFAC) has updated and rebuilt its translations database of publications issued by IFAC and its independent standard-setting boards (IAASB, IAESB, IESBA, IPSASB).

The new interactive translations database is now searchable and results can be filtered by language, status (in progress, completed), body, and date of original publication in English. Translations into more than 50 languages are available. Please click to access the database on the IFAC 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.