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News

IFRS - IASB Image

IASB posts webcast on borrowing costs and revenue recognition

Jun 24, 2019

On June 24, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) posted a webcast, by IASB technical staff Jawaid Dossani and Nicolette Lange, that discusses conclusions reached by the IFRS Interpretation Committee related to the application of IAS 23, ‘Borrowing Costs’ and its interaction with IFRS 15, ‘Revenue from Contracts with Customers’.

At the March 5-6, 2019 IFRS Interpretation Committee meeting, the Committee determined that borrowing costs would not be capitalized when the borrowings relate to the construction of a residential multi-unit real estate development for which revenue is recognized over time.

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

IFRS - IASB Image

Updated IASB work plan — Analysis

Jun 21, 2019

On June 21, 2019, following the In­ter­na­tional Ac­count­ing Stan­dards Board’s (IASB’s) June 2019 meeting, we have analyzed the IASB work plan to see what changes have resulted from the meeting and other developments since the work plan was last revised in May 2019. Most changes relate to exposure drafts having been published or comment letter periods having ended.

Below is an analysis of all changes that were made to the work plan since our last analysis on May 18, 2019.

Standard-setting projects

  • Rate-regulated activities — the expected timing of a discussion paper or exposure draft has been moved to H1 2020 (was: H2 2019).

Maintenance projects

  • The IASB published an Exposure Draft “Annual Improvements to IFRS Standards 2018–2020” on May 21, 2019. The following projects are part of the annual improvements 2018-2020 project and are therefore now reflected as open to comment in the work plan: (i) fees in the ‘10 per cent’ Test for Derecognition (Amendments to IFRS 9); (ii) lease incentives (Amendment to Illustrative Example 13 accompanying IFRS 16);  (iii) subsidiary as a First-time Adopter (Amendments to IFRS 1); and (iv) taxation in Fair Value Measurements (Amendments to IAS 41);
  • IBOR reform and the effects on financial reporting — the work plan reflects that the comment period on the exposure draft has ended; a first discussion of the feedback received is scheduled for Q3 2019;
  • Updating a reference to the Conceptual Framework (Amendments to IFRS 3) — The IASB published an exposure draft Reference to the Conceptual Framework (Proposed amendments to IFRS 3) on May 30, 2019 - the work plan reflects that the project is now open for comment.

Research projects

  • No changes.

The above is a faithful comparison of the IASB work plan at May 18, 2019 and at June 24, 2019. For access to the current IASB work plan, please click here.

US_AICPA Image

AICPA issues proposed SAS on audit evidence

Jun 21, 2019

On June 21, 2019, the American Institute of CPA’s (AICPA) issued a proposed Statement on Auditing Standards (SAS), “Audit Evidence.”

The proposed SAS is intended to address “the evolving nature of business and audit services and issues that have arisen during the standard-setting activities of the [Auditing Standards Board, including] use of emerging technologies by both preparers and auditors, audit data analytics (ADA), the application of professional skepticism, the expanding use of external information sources as audit evidence, and more broadly, the accuracy, completeness, and reliability of audit evidence.”

If finalized, the proposed SAS would supersede Section 500, Audit Evidence, of SAS 122, Statements on Auditing Standards: Clarification and Recodification, as amended.

Comments on the proposed SAS are due by September 18, 2019. For more information, see the proposed SAS on the AICPA’s Web site.

IFRS - SEC Image

SEC issues new and amended requirements for security-based swap dealers and broker-dealers

Jun 21, 2019

On June 21, 2019, the Securities Exchange Commission (SEC) issued a final rule, “Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major Security-Based Swap Participants and Capital and Segregation Requirements for Broker-Dealers.”

According to the SEC’s press release, the final rule:

  • Establishes “minimum capital requirements for security-based swap dealers [SBSDs] and major security-based swap participants [MSBSPs] for which there is not a prudential regulator (nonbank SBSDs and MSBSPs). They also increase the minimum net capital requirements for broker-dealers that use internal models to compute net capital (ANC broker-dealers).  In addition, they establish capital requirements tailored to security-based swaps and swaps for broker-dealers that are not registered as an SBSD or MSBSP to the extent they trade these instruments.” 
  • Establishes “margin requirements for nonbank SBSDs and MSBSPs with respect to non-cleared security-based swaps.”
  • Establishes “segregation requirements for SBSDs and stand-alone broker-dealers for cleared and non-cleared security-based swaps.”
  • Amends “the Commission’s existing cross-border rule to provide a means to request substituted compliance with respect to the capital and margin requirements for foreign SBSDs and MSBSPs, and provide guidance discussing how the Commission will evaluate requests for substituted compliance.” 

For more information, see the press release and final rule on the SEC’s Web site.

IFRS - AcSB Image

AcSB In Brief: A plain and simple overview of the AcSB’s ongoing work in supporting the implementation of the new insurance standard

Jun 21, 2019

On June 21, 2019, the Accounting Standards Board (AcSB) issued an In Brief document that provides a plain and simple overview of the AcSB’s ongoing work in supporting the implementation of the new insurance standard.

For fur­ther de­tails, re­fer to the In Brief doc­u­ment on the AcSB’s web­site.

US_AICPA Image

AICPA proposes amendments to converge concepts in SSARS with global assurance standards

Jun 20, 2019

On June 20, 2019, the Accounting and Review Services Committee of the American Institute of CPA’s (AICPA) issued a proposed Statement on Standards for Accounting and Review Services (SSARS), “Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks.”

The proposed amendments are intended to more closely align SSARS with International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements, and thereby “facilitate the accountant’s ability to perform and report on engagements in accordance with both sets of standards.”

Comments on the proposed SSARS are due by September 20, 2019.

For more information, see the proposed SSARS on the AICPA’s Web site.

IAASB - Assurance Image
IESBA (International Ethics Standards Board for Accountants) (lt gray) Image

IAASB and IESBA increase collaboration with National Standards Setters

Jun 20, 2019

On June 20, 2019, the In­ter­na­tional Au­dit­ing and As­sur­ance Stan­dards Board (IAASB) and the In­ter­na­tional Ethics Stan­dards Board for Ac­coun­tants (IESBA) shared a brief update on their latest initiative to support global standard setting and to better leverage the coordination opportunities between their two boards.

With global regulatory fragmentation risk on the rise, and greater international collaboration on the forthcoming G20 agenda, they announced that, in May 2019, they convened a meeting in Paris with national audit and ethics standard-setting organizations representing 17 jurisdictions.

The IAASB and IESBA dubbed this four-way dialogue (IAASB + IESBA + national audit & assurance + ethics standards setters) a “quadrilogue”.

The discussions marked the beginning of an exploratory and evolutionary process for the IAASB and IESBA to work with national standard setters, and for national standard setters to work with each other, to consider new ideas in pursuit of mutually shared objectives.

The meeting advanced already-significant IAASB and IESBA coordination efforts, which acknowledge the importance of audit and ethics standards to audit quality. The meeting facilitated further collaboration between a number of national audit & assurance standard setters and the IAASB, as well as identifying ways national standard setters can work more effectively together in the interests of international standard setting.

Some important themes emerged from the “quadrilogue”:

  • the value of continued IAASB and IESBA coordination, the significant advances made to-date, and how it serves as a catalyst for national coordination;
  • the importance of early coordination between our two boards, and increased stakeholder communications about it;
  • recognition that it is important to identify the areas where four-way engagement makes most sense; and
  • quality management within accountancy firms, implications of technology developments, stakeholder engagement, and enhanced implementations activities are possible topics for further exploration.

Re­view the announcement on the IAASB’s web­site.

IFRS - IASB Image

IASB Chair discusses strengthening the relevance of financial reporting

Jun 20, 2019

On June 20, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) made avail­able a speech by IASB Chair Hans Hoogervorst at the IFRS Foundation Conference in London, in which he discussed the Board’s plans to maintain and strengthen the relevance of financial reporting in primary financial statements and management commentary.

Mr Hoogervorst began with an overview of the primary financial statements (PFS) project and provided comments related to subtotals (definition of operating profits and profit before financing and tax), labeling non-GAAP measurement as ‘management performance measures’, improvements to disaggregation, the disclosure of ‘unusual’ items of income or expenses, and the impact the PFS proposals will have to the quality and usefulness of the income statement.

Next, Mr Hoogervorst commented on the importance of management commentary (a topic he also covered in similar speech at the Climate-Related Financial Reporting Conference in April 2019) to provide broader financial information, such as the impact of intangibles. He mentioned the need to update the Management Commentary Practice Statement to accommodate new advances made in the environmental, sustainability and governance reporting space.

For more information, see the transcript of his speech on the IASB’s website.

IFRS - IASB Image

Forthcoming IASB publication: Exposure Draft—Amendments to IFRS 17, Insurance Contracts

Jun 20, 2019

On June 20, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) announced that it expects to publish the Exposure Draft “Amendments to IFRS 17, Insurance Contracts” on June 26, 2019.

Re­view the announcement on the IASB’s web­site.

IFRS - AcSB Image

AcSB In Brief: A plain and simple overview of the AcSB’s decision to not undertake a project on hedge accounting for private enterprises and not-for-profit organizations

Jun 20, 2019

On June 20, 2019, the Ac­count­ing Stan­dards Board (AcSB) is­sued an In Brief doc­u­ment that pro­vides a plain and sim­ple overview of its decision to not undertake a project on hedge accounting for private enterprises and not-for-profit organizations

For fur­ther de­tails, re­fer to the In Brief doc­u­ment on the AcSB’s web­site.

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