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New appointments to the IFRS Interpretations Committee and Advisory Council

22 Dec 2014

The IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), has announced interim appointments to the IFRS Interpretations Committee and Advisory Council.

Effective immediately, Robert Uhl, a Deloitte (United States) Partner and National Director for Accounting Standards & Communications, has been appointed to the IFRS Interpretations Committee. Mr Uhl’s appointment follows the departure of Laurence Rivat and is therefore made in an interim capacity until 30 June 2015.

Effective 1 January 2015, Roger Marshall, Acting President of the European Financial Reporting Advisory Group (EFRAG) and non-executive Chairman of the Accounting Council of the United Kingdom Financial Reporting Council, has been appointed to represent EFRAG on the IFRS Advisory Council. Mr Marshall’s appointment is also made in an interim capacity until a permanent President of EFRAG is in place.

Click for the IFRS Foundation announcement (link to IASB website).

IFRS 9 included in the EFRAG status report again

19 Dec 2014

The European Financial Reporting Advisory Group (EFRAG) has published a new endorsement status report reflecting (i) the issuance of final amendments resulting from two implementation projects by the IASB yesterday, (ii) the issuance of final endorsement advice on 'Equity Method in Separate Financial Statements (Amendments to IAS 27)' today, and (iii) the fact that endorsement of IFRS 9 'Financial instruments' has been put onto the agenda of the European Union again.

Endorsement of IFRS 9 Financial Instruments had so far been "postponed", however, following the publication of the final version of IFRS 9 in July 2014 the European Commission requested the EFRAG to deliver its opinion on the new standard. A letter to that effect was included in the meeting papers for the 17 December 2014 meeting of the new EFRAG Board as was a timeline for possible IFRS 9 endorsement (please use the 'Download running order' in this EFRAG meeting announcement to access all public papers for the meeting). The new EFRAG status report concludes that endorsement of IFRS 9 for use in the European Union might be expected in the second half of 2015.

EFRAG issues final endorsement advice on allowing the application of the equity method in separate financial statements

19 Dec 2014

The European Financial Reporting Advisory Group (EFRAG) has submitted to the European Commission its endorsement advice letter and effects study report on the amendments to IAS 27 that reinstate the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial statements.

EFRAG supports the amendments. The EFRAG's assessment is that benefits for preparers and users implementing the amendments outweigh the costs and therefore EFRAG recommends that the European Commission (EC) endorses the amendments.

Click for the following information on the EFRAG website:

EFRAG has updated its endorsement status report to reflect that the final endorsement advice has been issued.

Web presentation on the IASB's Disclosure initiative

19 Dec 2014

On 29 January 2015, the IASB staff will give a live web presentation update on the IASB's Disclosure initiative and its related projects.

The Disclosure intiative saw the publication of final amendments to IAS 1 and proposed amendments to IAS 7 yesterday. The IASB is expecting to issue a discussion paper in the related project on principles of disclosure in the second quarter of 2015 and a draft practice statement in the materiality project also in the second quarter of 2015. Discussions in the project regarding a general disclosure overview will begin in the first quarter of 2015.

The presentation, including a question and answer session, will begin at 10am London time and will last approximately forty-five minutes. There is no charge to listen to the web presentation, but you need to register. Please click for registration and more information on the IASB website.

Outcomes from the sixth AOSSG meeting

19 Dec 2014

The Asian-Oceanian Standard-Setters Group (AOSSG) has released a communiqué from its meeting held in Hong Kong on 26 and 27 November 2014.

In addition to several IASB projects (including all of the IASB's major projects), the participants also discussed:

  • Islamic accounting. The participants discussed in particular the AOSSG's Islamic Finance Working Group's study of 132 Islamic financial institutions around the world and concluded that future outreach to government ministries, central banks and securities regulators may be necessary to promote the use of IFRS by Islamic financial institutions.
  • IFRS in the region. AOSSG members from Japan, Indonesia, Sri Lanka and India provided updates on the progress of adopting IFRS in their respective jurisdictions.
  • Building regional capacity. The AOSSG's IFRS Centre of Excellence (COE) for a Developing Country Working Party has accomplished its targeted activities after two years for establishing a pilot IFRS COE initiative in Nepal.
  • AOSSG strategic plan. Members discussed key AOSSG activities planned for the next five years commencing fromthe 2014 Annual AOSSG Meeting. In addtion to other points, they agreed
    • to continue to support the IASB's due process by: (i) providing AOSSG's views through written submissions, at face-to-face AOSSG meetings and through the AOSSG's representation at the IASB's Accounting Standards Advisory Forum; and (ii) contributing to the IASB's research projects;
    • to continue to reinforce and remind members of the AOSSG's commitment to a single set of global accounting standards;
    • to continue to engage with members of IFRS Trustees, IFRS Advisory Council and IASB from the Asia-Oceania region, and staff of the IFRS Asia-Oceania office; and
    • to ensure local stakeholders are aware of the AOSSG and its aims.

Click for the comminiqué from the meeting (link to AOSSG website).

IFRS Foundation publishes additional proposal for IFRS Taxonomy 2014

19 Dec 2014

The IFRS Foundation has published 'Proposed Interim Release 3 to the IFRS Taxonomy 2014' for public comment.

The proposed interim release contains additional taxonomy concepts that reflect new IFRSs and improvements to IFRSs published by the IASB and technical updates and corrections. In particular, this proposed interim release includes taxonomy elements for IFRS 9 Financial Instruments, which was issued in July 2014 and for narrow-scope amendments to IFRSs and the IFRS Taxonomy

Comments on the proposed interim release are requested by 17 February 2015.

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

European Union formally adopts Annual Improvements to IFRS - Cycle 2011-2013

19 Dec 2014

The European Union has published a Commission Regulation endorsing 'Annual Improvements to IFRSs 2011–2013 Cycle'.

Commission Regulation (EC) No 1361/2014 of 18 December 2014 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council published in the Official Journal on 19 December 2014 adopts Annual Improvements to IFRSs 2011–2013 Cycle issued by the IASB in December 2013.

The amendments impacted four standards:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards (changes to the Basis for Conclusions only, so not part of the EU endorsement),
  • IFRS 3 Business Combinations,
  • IFRS 13 Fair Value Measurement, and
  • IAS 40 Investment Property.

The IASB's annual improvements process is intended to enhance the quality of standards, by amending existing IFRSs to clarify guidance and wording, or to correct for relatively minor unintended consequences, conflicts or oversights when such amendments are considered non-urgent but necessary.

The amendments are effective in the EU for annual periods beginning on or after 1 January 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014).

Latest IASB ‘Investor Update’ issued

19 Dec 2014

The IASB has issued the latest edition of its newsletter, "IASB Investor Update," to provide investors with quick access to information on current accounting and financial reporting issues. The newsletter aims to keep investors informed on new and changing guidance.

This issue features:

The IASB Investor Update newsletter is available on the IASB's website.

IASB issues work plan update for December 2014

18 Dec 2014

Following its December meeting and today's issuance of two final amendments and one exposure draft resulting from implementation projects, the International Accounting Standards Board (IASB) has updated its work plan. Changes are slight.

Current status

The revised time table for the major projects is now as follows:

ProjectCurrent statusNext project stepExpected timing

Conceptual Framework — Comprehensive IASB project


Exposure draft

Q1 2015

Financial instruments — Macro hedge accounting

Discussion paper

Comment letter analysis

Q1 2015

Insurance contracts



Q1 2015*



Target IFRS

H2 2015

Disclosure initiative — Principles of disclosure

Board discussion

Target Discussion Paper

Q2 2015

Disclosure initiative — Reconciliation of liabilities from financing activities

Exposure draft

Public consultation

Q1 2015*

IFRS for SMEs — Comprehensive review


Target IFRS

Q1 or Q2 2015*

Rate-regulated activities

Discussion paper

Public consultation

Q1 2015

* Indicates a change since the previous work plan update on 24 November 2014.

In addition, comment letter analysis in the unit of account project has been postponed to the first quarter of 2015, first Board discussions in the disclosure initiative project on disclosure review will begin in the first quarter of 2015, and the disclosure initiative project on materiality is expected to see a draft practice statement in the second quarter of 2015.

Click for the IASB work plan dated 18 December 2014 (link to IASB website). We have updated our project pages to reflect the updated work plan and other known developments.

IASB finalises amendments regarding the application of the investment entities exception

18 Dec 2014

The International Accounting Standards Board (IASB) has published 'Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)'. The amendments address issues that have arisen in the context of applying the consolidation exception for investment entities. They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.



In October 2012, the IASB issued Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) providing an exemption from consolidation of subsidiaries under IFRS 10 Consolidated Financial Statements for entities that meet the definition of an 'investment entity'. Subsequently, the IFRS Interpretations Committee received several submissions regarding the implementation of the exemption. The Committee recommended to the IASB to address the issues in a narrow-scope project, and in March 2014 the IASB formally added a project on IFRS 10/IAS 28 — Investment entity amendments to its work programme. An exposure draft of proposed amendments was published in June 2014 with comments requested by 15 September 2014.



Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) makes changes aimed at clarifying the following aspects:

  • Exemption from preparing consolidated financial statements. The amendments confirm that the exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value.
  • A subsidiary providing services that relate to the parent's investment activities. A subsidiary that provides services related to the parent's investment activities should not be consolidated if the subsidiary itself is an investment entity.
  • Application of the equity method by a non-investment entity investor to an investment entity investee. When applying the equity method to an associate or a joint venture, a non-investment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries.
  • Disclosures required. An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12.


Changes from the proposals in the Exposure draft

ED/2014/2 Investment Entities: Applying the Consolidation Exception (Proposed amendments to IFRS 10 and IAS 28) proposed to provide relief to non-investment entity investors for their interests in investment entity associates, but not for their interests in investment entity joint ventures. To retain consistency in treatment in applying the equity method to both associates and joint ventures, the final amendments provide relief to non-investment entity investors in both investment entity associates and joint ventures.

The IASB has added amendments to IFRS 12 Disclosure of Interests in Other Entities as the comments received in response to the ED highlighted a lack of clarity of the applicability of IFRS 12 to the financial statements of an investment entity. The additional amendments clarify that the scope exclusion in paragraph 6(b) of IFRS 12 does not apply to the financial statements of a parent that is an investment entity and measures all of its subsidiaries at fair value.


Effective date and transition requirements

The amendments are effective for annual periods beginning on or after 1 January 2016 and must be applied retrospectively. Earlier application is permitted.


Additional information

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.