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News

Agenda for the June 2015 IFRS Advisory Council meeting

08 May 2015

An agenda has been released for the upcoming meeting of the IFRS Advisory Council, which is being held in London on 9-10 June 2015. The meeting will focus on IASB activities, leases, the IFRS adoption experience in Japan, the IASB Agenda Consultation, the use of IFRS around the world, Trustee activities, and research activities.

A summary of the agenda (as at 6 May 2015) is set out below:

Tuesday 9 June 2015 (09:15-15:30)

  • Welcome and Chairman's introduction
  • IASB activities
    • Chairman's report
    • Work plan update
    • ASAF update
    • Other key issues – seeking input from the Council
  • Leases – steps after publication of the Standard
  • IFRS adoption experience in Japan
  • IASB Agenda consultation – consultation on contents of request for views
  • Use of IFRS – jurisdictional filing requirements

Wednesday 10 June 2015 (09:15-14:15)

  • Trustee activities
    • Key issues – seeking input from the Council
    • EU Capital markets Union consultation
  • Research Activities
    • Rate-regulated activities – agenda decision
    • High inflation
    • Foreign currency translation
    • Other research activities
  • Sum up discussions

Agenda papers for the meeting will be available in due course on the IASB website.

Chief Accountant of the SEC comments on IFRS in the United States and convergence

08 May 2015

At a financial reporting conference at Baruch College in New York City, Jim Schnurr, Chief Accountant of the US Securities and Exchange Commission (SEC) gave an update on some of the recent activities of the Office of the Chief Accountant as well as some of the current thinking with respect to convergence and IFRS.

At a US Chamber of Commerce conference in early December 2014, Mr Schnurr had introduced the thought of a potential alternative of allowing domestic issuers to provide IFRS-based information as a supplement to U.S. GAAP financial statements without requiring reconciliation. At the annual American Institute of Certified Public Accountants (AICPA) Conference on Current SEC and PCAOB Developments a week later, Mr Schnurr and Julie Erhardt, Deputy Chief Accountant of the SEC, further discussed this possible option.

Obviously, this new thinking triggered many reactions from constituents, including preparers, investors, auditors, regulators and standard-setters. Reactions revealed three key themes:

  • There is virtually no support to have the SEC mandate IFRS for all registrants.
  • There is little support for the SEC to provide an option allowing domestic companies to prepare their financial statements under IFRS.
  • There is continued support for the objective of a single set of high-quality, globally accepted accounting standards.

However, Mr Schnurr pointed out that although there is still support for the single set of high-quality, globally accepted accounting standards, many constituents tend to see more the lack of convergence and shortfalls in the efforts towards it. Mr Schnurr therefore devoted a large part of his speech to the similarities between IFRS and U.S. GAAP. He cited business combinations and consolidations as well as revenue recognition as cases in point. On the leasing and credit impairment standards he admitted the differences but also stressed that the IASB and FASB were able to achieve convergence in many significant respects.

Mr Schnurr also highlighted that although the FASB has started adding more 'FASB only' projects to its agenda, it still very much considers IFRS in setting its agenda and during its deliberations. He concluded:

It is fair to say the FASB and IASB collaborative relationship is at a critical juncture. How often and what kind of interaction is going to occur after the leasing standard is finalized and issued?  What happens to the Norwalk Agreement? Ultimately, how the boards decide to interact in the future is important. I believe that, for the foreseeable future, continued collaboration is the only realistic path to further the objective of a single set of high-quality, global accounting standards.

Please click to access the full text of Mr Schnurr's speech on the SEC website.

April 2015 IASB meeting notes — Part 2 (concluded)

07 May 2015

The IASB met at its offices in London on 27–29 April 2015. We have posted the Deloitte observer notes from the sessions on revenue, inflation and the disclosure initiative.

Click through for direct access to the notes:

Tuesday, 28 April 2015

Wednesday, 29 April 2015

You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

Updated research report reviewing academic research into the effects of mandatory adoption of IFRS in the EU

07 May 2015

The Institute of Chartered Accountants in England and Wales (ICAEW) has updated its report reviewing academic research papers that have looked at the impact of IFRS adoption both in the EU and in other countries.

The main conclusions of the updated and expanded report are unchanged, but it is now based on a review of about 200 research papers and reflects research and other publications up to 28 February 2015. As in the earlier version, the analysis shows that there is evidence of benefits following IFRS adoption in relation to financial reporting transparency and comparability, the cost of capital, market liquidity, corporate investment efficiency and cross-border capital flows. However, the evidence on some of these matters is disputed and it is unclear how far the benefits identified are attributable to the adoption of IFRS or to other concurrent institutional changes, particularly in enforcement. What is clear is that the benefits found are uneven, varying with the institutions and incentives that apply for different companies in different countries.

The report is intended to assist interested parties in the debate on the future of IFRS in the EU, by looking at what can be learned from empirical academic research on the costs and benefits of its implementation to date. It also provides a case study of the challenges involved in using empirical research to review the effects of major policy changes.

Please click to access the report on the ICAEW website.

CRD releases landscape map providing clarity across frameworks and standards

06 May 2015

The Corporate Reporting Dialogue (CRD), which brings together organisations that have significant international influence on the corporate reporting landscape, has published a landscape map that provides a snapshot of a comparison of their frameworks, standards and related requirements through the lens of integrated reporting. Among the CRD members are the IASB and the FASB.

The CRD was introduced in June 2014 with the aim to work together to respond to market calls for better alignment and reduced burden in corporate reporting by promoting proactive engagement between the key organisations. As an initial unified response, the Dialogue has now developed an online map to show how the frameworks, standards and related requirement of its participants are seen through the lens of integrated reporting. The map has three levels:

  • Purpose. Offering a brief description of the purpose of each standard or framework.
  • Scope. Explaining how each reporting initiative relates to the six capitals of integrated reporting.
  • Content. Explaining each reporting initiative relates to the content elements of integrated reporting.

The map is intended to be a simple navigational tool providing insights into the degree of coverage of the capitals and content elements in each of the standards or frameworks. It lists all applicable standards, however, source documents are not included as the main purpose is to demonstrate how frameworks, standards and related requirements could be used together to enhance corporate reporting.

Please click to access the map on the CRD website.

IFRS Foundation adds 2 new jurisdiction profiles on the use of IFRS around the world

06 May 2015

The IFRS Foundation (IFRSF) has added 2 new jurisdiction profiles on the use of IFRS, bringing the total number of profiles completed to 140 jurisdictions.

The two new jurisdiction profiles cover Palestine and Syria.

The IFRSF has been using information from various sources to develop the profiles about the use of IFRSs in individual jurisdictions. We are proud that IAS Plus with the assistance of our Deloitte member firms has been able to help the IFRS Foundation with this ambitious project, which is led by Paul Pacter, former IASB member and former webmaster of IAS Plus who originally set up our popular table on the use of IFRSs around the world which has been supplemented recently by the more detailed table on the use of IFRSs by the G20 jurisdictions.

The profiles and analyses are available on the IASB's website.

IASB issues latest edition of ‘The Essentials’ newsletter

05 May 2015

The IASB has issued the third edition of its newsletter “The Essentials,” which is intended to increase investors’ awareness of IFRSs and enhance their insights into IFRS financial statements.

This issue discusses how investors can leverage the notes to the financial state­ments to compare banks’ balance sheets and U.S. GAAP–IFRS dif­fer­ences related to the treatment of off­set­ting arrange­ments.

Issue 3 of The Essentials, as well as an archive of previous issues, is available on the IASB’s website.

IASB issues work plan update

05 May 2015

After its April meeting, the IASB has updated its work plan. The revised plan narrows the expected issuance of the leases standard to the fourth quarter of 2015, shifts the expected issuance of an exposure draft for annual improvements 2014-2016 and redeliberations for classification and measurement of share-based payment transactions to the third quarter of 2015, and shows redeliberations for the disclosure initiative (amendments to IAS 7) project to occur in the second quarter of 2015. In addition, two projects have been added on the transfer of investment property, which has a target ED in the third quarter of 2015, and uncertainties in income taxes, which has a target draft interpretation in the second quarter of 2015.

Current status

The revised timetable for the major pro­jects is now as follows:

ProjectCurrent statusNext project stepEx­pected timing
Con­cep­tual Frame­work — Com­pre­hen­sive IASB project Re­de­lib­er­a­tions Ex­po­sure draft Q2 2015
Fi­nan­cial in­stru­ments — Macro hedge ac­count­ing Comment letter analy­sis Re­de­lib­er­a­tions Q2 2015
In­sur­ance con­tracts Re­ex­po­sure Re­de­lib­er­a­tions Q2 2015
Leases Re­ex­po­sure Target IFRS Q4 2015*
Dis­clo­sure ini­tia­tive — Prin­ci­ples of dis­clo­sure Board dis­cus­sion Target dis­cus­sion paper Q4 2015
Dis­clo­sure ini­tia­tive — Rec­on­cil­i­a­tion of li­a­bil­i­ties from fi­nanc­ing ac­tiv­i­ties ED Redeliberations Q2 2015*
IFRS for SMEs — Com­pre­hen­sive review Re­de­lib­er­a­tions Target IFRS Q2 2015
Rate-reg­u­lated ac­tiv­i­ties Dis­cus­sion paper Board dis­cus­sion Q2 2015

* In­di­cates a change since the pre­vi­ous work plan update on 24 March 2015.

Minor updates re­gard­ing the research pro­jects include:

  • Renaming of the general disclosure review project to “Standards—level review of disclosures” and setting board discussions to the fourth quarter of 2015.
  • Moving the target draft practice statement for the materiality project to the third quarter of 2015.

The revised IASB work plan is avail­able on the IASB's Web site. We have updated our project pages to reflect the updated work plan and other known de­vel­op­ments.

Agenda for the May 2015 IFRS Interpretations Committee meeting

05 May 2015

The IFRS Interpretations Committee will meet at the IASB's offices in London on 12 May 2015. The agenda for the meeting is now available.

The Committee will:

  • continue discussion of issues arising on IAS 21, IAS 16, IFRS 5, IAS 32, IFRS 13, and IFRS 10;
  • consider finalising a tentative agenda decision on IAS 24;
  • consider new issues on IFRS 12 and IAS 23.

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

IFRS Foundation Annual Report 2014

05 May 2015

The IFRS Foundation (IFRSF) under which the IASB operates has published its Annual Report for 2014, titled 'Financial reporting standards for the world economy'.

The report for 2014 incorporates the Foundation's newly developed mission statement as well as reports from the Chair of the IFRS Foundation Monitoring Board, the Chair of the Trustees of the IFRS Foundation, and the Chair of the International Accounting Standards Board (IASB).

The report also sets out the organisation's strategic priorities for 2015-2017, broken down into four strategic goals:

  • develop a single set of high quality, globally enforceable accounting standards,
  • pursue the goal of global adoption of IFRS,
  • support consistent application and implementation of IFRS, and
  • ensure continued independence, stability and accountability of the IFRS Foundation

Please click to download the report from the IASB's website.

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