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News

AASB Image

AASB In Brief Podcast – Exposure Draft, Compilation Engagements

Sep 14, 2018

On September 14, 2018, the Auditing and Assurance Standards Board (AASB) released a podcast that provides a plain and simple overview of AASB’s Exposure Draft, "Compilation Engagements".

Listen to the podcast on AASB's website.

IAASB - Assurance Image

Martin Baumann Named to Lead the IAASB

Sep 14, 2018

On September 14, 2018, the International Auditing and Assurance Standards Board (IAASB) announced that Mr. Martin Baumann has been appointed Chair of the IAASB for a three-year term beginning January 1, 2019. Mr. Baumann’s appointment was recommended by the Interim Nominating Committee after an extensive international search.

As Chair, Mr. Baumann will lead the IAASB though an environment of rapid advances in current and emerging technology and changes in the breadth and complexity of information needed by investors and other stakeholders. He will be responsible for leading the finalization and implementation of IAASB’s strategic objectives; actively engaging key stakeholders around the world, including national standard setters, regulators, investors and firms of all sizes; and delivering timely high-quality standards in the public interest.

Review the press release on the IAASB's website.

PSAS - PSAB Image

PSAB In Brief — Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”

Sep 12, 2018

On September 12, 2018, the Public Sector Accounting Board (PSAB) released an overview of the key amendments to the reporting model proposed in the Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector”. It also presents background information about PSAB’s Concepts Underlying Financial Performance project.

So we are making changes through the following actions:

  1. Issuing a revised conceptual framework to replace two Sections in the CPA Canada Public Sector Accounting (PSA) Handbook:
    1. PS 1000, Financial Statement Concepts
    2. PS 1100, Financial Statement Objectives
  2. Issuing a revised financial statement presentation standard that would replace Section PS 1201, Financial Statement Presentation.

Proposals for a revised conceptual framework are included in the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector .”

Review the publication on the PSAB's website.

PSAS - PSAB Image

PSAB In Brief — Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”

Sep 12, 2018

On September 12, 2018, the Public Sector Accounting Board (PSAB) released an overview of the key proposals in the Statement of Concepts, “A Revised Conceptual Framework for the Canadian Public Sector”. It also presents background information about PSAB’s Concepts Underlying Financial Performance project.

PSAB is making the following changes:

  1. Issuing a revised conceptual framework to replace two Sections in the CPA Canada Public Sector Accounting (PSA) Handbook:
    1. PS 1000, Financial Statement Concepts
    2. PS 1100, Financial Statement Objectives
  2. Issuing a revised financial statement presentation standard that would replace Section PS 1201, Financial Statement Presentation.

Proposals for a revised financial statement presentation standard are included in the Statement of Principles, “A Revised Reporting Model for the Canadian Public Sector.”

Review the publication on the PSAB's website.

IFRS - IASB Image

IASB concludes FICE DP webcast series

Sep 11, 2018

September 11, 2018, the International Accounting Standards Board (the Board) released its sixth and final webcast in a series of web presentations related to the Discussion Paper "Financial Instruments with Characteristics of Equity".

This webcast discusses the Board’s preferred approach approach to the presentation of financial liabilities.

Review the press release on the Board's website, which offers access to the webcast and to the slides, which can be downloaded separately.

All six webcasts of the series are available on the Board's FICE project page.

United States Image

Paper on the satisfaction with existing segment disclosure requirements

Sep 10, 2018

In 2018, the CFA Institute, a global association of investment professionals, published "Segment Disclosures: Investor Perspectives". For the paper, the CFA Institute surveyed its members, including portfolio managers and analysts, regarding their level of satisfaction with existing segment disclosure requirements and solicited their views on areas for improvement as well as general perceptions about segment disclosures.

The survey results show that 75% of investors rate segment disclosures as very important to their analysis, but that only 13.4% are satisfied with the segment disclosures as currently provided. The survey therefore concludes that the implication for standard-setters is that there is substantial work to be done to meet segment disclosure investor needs.

The following additional results are also provided in the report:

  • 83.4% of respondents strongly agreed or agreed that segments should be disclosed as a critical audit matter.
  • 67.8% of respondents agreed or strongly agreed that competitive harm is overstated as a reason not to improve segment disclosures.
  • 86.6% of respondents agreed or strongly agreed that technological improvements should, but have not, substantially improved segment disclosures.
  • 72.7% of respondents agreed that regulators do not seem to enforce segment disclosure requirements effectively.
  • 61.8% of respondents indicated that the public discussion of results was not necessarily consistent with segment results.
  • 74.8% of respondents agreed that non-GAAP measures are not, but should be, reconciled to segment results.
  • 77.8% of respondents noted that segment disclosures are not always presented clearly and reconciled to the basic financial statements.
  • 82.4% stated that presentation by product/service or by region made comparative analysis more difficult.

Although the paper is more focused on US GAAP and Topic 280, the paper points at the similarity of the segment reporting requirements between US GAAP and IFRS and notes that a review of IFRS 8 Operating Segments should also be a project for the IASB.

Review the full report on the CFA Institute's website.

IFRS - Deloitte Image

Deloitte readiness survey highlights complexities around implementing the new Leases standards

Sep 07, 2018

On September 7, 2018, we released the report "Navigating the impact of the new Leases Standards — A Deloitte Global IFRS 16 and ASC 842 readiness survey". As Deloitte accompanies organizations in their new Leases standards implementation projects, we identified a need for organizations to share their many challenges and to understand those faced by others in their jurisdictions, regions and industries around the world. In response, Deloitte launched the Global IFRS 16 and ASC 842 readiness survey, which highlights the challenges and complexities facing organizations when implementing IFRS 16 and ASC 842 across the world.

Key findings of the survey are:

  • 52% of organizations anticipate a "material change" to their financial reporting
  • 67% of all organizations have not yet started or are on the impact assessment phase
  • 34% rate the determination of lease terms as highly complex
  • 86% of organizations are not considering early adoption
  • 43% have not yet determined their transition budgets
  • 74% of respondents do not currently have dedicated software systems for contracts
  • 61% of respondents are considering externally developed leasing systems
  • 38% of IFRS 16 respondents are considering the modified retrospective approach

Review the full survey results on our Global IAS Plus website.

Financial Executives International (FEI) published an interview with Deloitte lead partner on the survey Laurence Rivat discussing the survey results and especially IT aspects around implementing the new standards.

PSAS - PSAB Image

In Brief Podcast – PSAB’s May 2018 Release of Documents for Comment on its Conceptual Framework, Reporting Model and International Strategy Proposals

Sep 07, 2018

On September 7, 2018, the Public Sector Accounting Board (PSAB) released a podcast that provides an overview of PSAB’s release of documents for comment on its Conceptual Framework, Reporting Model and International Strategy proposals.

Listen to the podcast on the PSAB's website.

ASPE_AcSB Image

AcSB Exposure Draft – Investments

Sep 07, 2018

On September 7, 2018, the Accounting Standards Board (AcSB) issued an Exposure Draft to clarify the applicability of the cost-method guidance in Section 3051, "Investments". Stakeholders are encouraged to submit their comments by December 5, 2018.

The key features of the proposals are as follows:

  • Cost method: Guidance on how to apply the cost method in Section 3051 would also apply to interests in jointly controlled enterprises.
  • Transition: Retrospective application of the amendments to paragraph 3051.07A would be required in accordance with Section 1506, Accounting Changes.

The proposed effective date is fiscal years beginning on or after January 1, 2020.

Review the Exposure Draft on the AcSB's website.

ASPE_AcSB Image

AcSB Exposure Draft – Income Taxes

Sep 07, 2018

On September 7, 2018, the Accounting Standards Board (AcSB) issued an Exposure Draft that revises and updates Section 3465, "Income Taxes", to remove an outdated example and requires future income tax assets and liabilities to be presented as non-current. Stakeholders are encouraged to submit their comments by December 5, 2018.

The key features of the proposals are as follows:

  • ECP: The example that provides guidance on accounting for ECP would be removed.
  • Presentation: The requirement to classify future tax assets and liabilities as current and non-current, when the future income taxes method is applied, would be replaced by a non-current classification requirement.
  • Disclosure: A requirement would be added to disclose the amount of future income tax assets and liabilities for each significant type of temporary difference for each period presented.
  • Transition: Retrospective application of the amendments in Section 3465 would be required in accordance with Section 1506, Accounting Changes.

The proposed effective date is for fiscal years beginning on or after January 1, 2020.

Review the Exposure Draft on the AcSB's website.

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