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Part I - IFRS

IASB will propose narrow-scope amendment to IFRS 17

Jun 22, 2021

At its meeting on June 22, 2021, the IASB discussed a possible nar­row-scope amendment to IFRS 17, Insurance Contracts, presented by the staff. The staff has developed an optional clas­si­fi­ca­tion overlay approach that would address one-time clas­si­fi­ca­tion dif­fer­ences that may arise in the com­par­a­tive in­for­ma­tion that insurers will present on initial ap­pli­ca­tion of IFRS 17 and IFRS 9.

This clas­si­fi­ca­tion overlay would:

  • apply to financial assets that are related to insurance contract li­a­bil­i­ties and to which IFRS 9 has not been applied in the com­par­a­tive period(s);
  • allow an entity to classify those financial assets in the com­par­a­tive period(s) in a way that aligns with how the entity expects those assets would be clas­si­fied on initial ap­pli­ca­tion of IFRS 9;
  • apply for com­par­a­tive periods that have been restated for IFRS 17 (that is, from the tran­si­tion date to the date of initial ap­pli­ca­tion of IFRS 17); and
  • apply on an in­stru­ment-by-in­stru­ment basis.

In the dis­cus­sion, all Board members who spoke supported the amendment. When asked to vote, 13 Board members stated that they are satisfied that the Board has complied with the ap­plic­a­ble due process steps and should begin the balloting process to publish an Exposure Draft; 12 Board members agreed with setting a 60-day comment period for the Exposure Draft; and no Board member intends to dissent from the proposals in the Exposure Draft.

The staff expects to publish the Exposure Draft by the end of July and aims at pub­lish­ing a final amendment at the end of the year.

For a detailed summary of this session, please see Deloitte Global's observer notes.

IFRS Foundation launches Technical Readiness Working Group webpage

Jun 21, 2021

On June 21, 2021, the IFRS Foun­da­tion launched a new webpage on its site which contains in­for­ma­tion and meeting summaries related to the Technical Readiness Working Group (TRWG).

The TRWG is chaired by the IFRS Foun­da­tion and includes par­tic­i­pants from the Climate Dis­clo­sure Standard Board, Financial Stability Board's Task Force on Cli­mate-re­lated Financial Dis­clo­sures, IASB, Value Reporting Foun­da­tion, and World Economic Forum. The IOSCO and IPSASB are observers of meetings related to review of technical ob­ser­va­tions and proposals. In addition, the TRWG works with the Global Reporting Ini­tia­tive and CDP on technical matters.

The TRWG will hold three types of meetings: strategic, op­er­a­tional and technical, and working level. The meeting summaries of its May 5, 2021, May 17, 2021, and June 9, 2021 strategic meetings are now available.

For more in­for­ma­tion, see the TRWG page on the IASB’s website.

IIRC and SASB officially merge

Jun 09, 2021

On June 9, 2021, the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) officially announced their merger to form the Value Reporting Foundation (VRF).

The VRF supports business and investor decision-making with three key resources:

  • Integrated Thinking Principles,
  • Integrated Reporting Framework, and
  • SASB Standards.

These tools are intended to enable organizations to move from buy-in to action. By more closely aligning the Integrated Reporting Framework and the SASB Standards, the VRF will make it easier for businesses to communicate their long-term strategy and provide a more comprehensive view of business performance to investors and other providers of capital.

The VRF is also committed to the delivery of a more coherent corporate reporting system by working closely with the IFRS Foundation and other leading framework providers and standard-setters around the world.

Review the press release and the new VRF website for more information and a list of statements from business leaders.

Second webinar in series on disclosure requirements in IFRS Standards

Jun 08, 2021

On June 8, 2021, the IFRS Foundation announced its second webinar in a series of webinars on the IASB exposure draft "Disclosure Requirements in IFRS Standards — A Pilot Approach". The webinar will be held on June 17, 2021.

The second webinar will explore in more detail the proposed new approach to developing disclosure requirements in IFRS Standards and will include a discussion of the Board’s views on comparability, enforceability and electronic reporting.

For the convenience of participants from different time zones, there will be two sessions of the webinar both discussing the same topics:

  • Thursday 17 June 2021, 09:00–10:00 BST and
  • Thursday 17 June 2021, 15:00–16:00 BST.

Each session will include a moderated question-and-answer session.

Review the press release on the IASB’s website.

Eminent Persons Group to advise Trustees on their sustainability initiative

Jun 07, 2021

On June 7, 2021, the IFRS Foundation Trustees announced the establishment of an Eminent Persons Group to provide strategic advice and counsel to the Trustees regarding the proposed formation of the International Sustainability Standards Board (ISSB). The group will also advise on the connectivity with jurisdictional initiatives.

The Eminent Persons Group is chaired by Jean-Claude Trichet, former President of the European Central Bank. Additional members are Sheila Bair, former Chair of the US Federal Deposit Insurance Corporation, Nandan Nilekani, Chair and co-founder of Infosys, Guillermo Ortiz, former Governor of Banco de Mexico and former Chair of the Bank of International Settlements, and Min Zhu, former Deputy Managing Director of the International Monetary Fund. The group has held its first meeting and will have regular engagement with the Trustees.

The Trustees now have four groups they work with in the context of their sustainability initiative:

  • The Trustees’ Steering Committee provides strategic direction and project oversight and makes recommendations on key decisions for endorsement by all Trustees.
  • The Eminent Persons Group provides strategic advice and counsel to the Trustees.
  • The Technical Readiness Working Group is working on providing the ISSB with a ‘running start’.
  • The Multilateral Working Group does preparatory work for a building-blocks approach and facilitates interaction with other international/jurisdictional initiatives.

Review the press release on the IASB's website.

New Taskforce on Nature-related Financial Disclosures launched

Jun 07, 2021

The Taskforce on Nature-related Financial Disclosures (TNFD) is a new global market-led initiative which aims to provide financial institutions and corporates with a complete picture of their environmental risks and opportunities. The TNFD will deliver a framework for organizations to report and act on evolving nature-related risks, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD).

As part of the launch, two publications have been published on the TNFD website:

Review the press release on the TNFD website announcing the launch as well as a letter by the two newly appointed Co-Chairs.

 

Recording of EAA-IASB workshop on the Third Agenda Consultation

Jun 07, 2021

On June 7, 2021, the International Accounting Standards Board (IASB) released the recordings of a virtual workshop it held in conjunction with the European Accounting Association (EAA). The workshop provided an overview of the IASB’s Third Agenda Consultation and an update on the Board’s current projects.

Listen to the recording of the presentations and access the slide decks on the IASB website.

G7 Finance Ministers and Central Bank Governors support Trustees' sustainability initiative

Jun 05, 2021

On June 5, 2021, the Finance Ministers and Central Bank Governors of the G7 released a communiqué that they support the IFRS Foundation Trustees' initiative on sustainability reporting. They met virtually on May 28, 2021, and Finance Ministers met in London on June 4-5, 2021, joined by the Heads of the International Monetary Fund (IMF), World Bank Group, Organisation for Economic Cooperation and Development (OECD), Eurogroup, and Financial Stability Board (FSB).

In the final communiqué, the Finance Ministers and Central Bank Governors emphasize the need to green the global financial system so that financial decisions take climate considerations into account as this would help mobilize the trillions of dollars of private sector finance needed, and reinforce government policy to meet their net zero commitments. The communiqué notes:

We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, in line with domestic regulatory frameworks. Investors need high quality, comparable and reliable information on climate risks. We therefore agree on the need for a baseline global reporting standard for sustainability, which jurisdictions can further supplement. We welcome the International Financial Reporting Standards Foundation’s programme of work to develop this baseline standard under robust governance and public oversight, built from the TCFD framework and the work of sustainability standard-setters, involving them and a wider range of stakeholders closely to foster global best practice and accelerate convergence. We encourage further consultation on a final proposal leading to the establishment of an International Sustainability Standards Board ahead of COP26.

Review the full communiqué on the UK government website. In a press release on the IASB website, the Trustees appreciate the support in the G7 communiqué.

Trustees to offer webinar on their sustainability initiative

Jun 04, 2021

On June 4, 2021, the Trustees of the IFRS Foundation announced that they will host a webinar on July 7 that will summarize the feedback gathered during the Trustees’ 2020 Consultation and explain how the Trustees have responded to that feedback. The speakers will also outline the Trustees’ strategic decisions and the remaining steps before the Trustees make a final determination on the new board by the United Nations COP26 conference in November 2021.

For the convenience of participants in different time zones there will be two sessions, one in the morning and one in the afternoon.

Review the press release for more information, registration and submitting questions on the IASB's website.

IASB Chair provides final observations

Jun 03, 2021

On June 3, 2021, the International Accounting Standards Board (IASB) released a speech given during the IFRS Foundation Virtual Conference 2021, where IASB Chair Hans Hoogervorst provided his final observations of his 10-year tenure. Mr. Hoogervorst discussed certain economic thinking, such as the influence of the "Washington Consensus". Also, he touched upon the effect of the Great Financial Crisis of 2008 and the COVID pandemic had to the economy and the risks that recent policies may have to the monetary system.

Next, he commented on the progress done to IFRS Standards to reduce vulnerabilities. Specifically, he mentioned the improvements made by IFRS 9, IFRS 15, and IFRS 17 Standards, the updated conceptual framework, the primary financial statements project, and the new version of the management commentary practice statement.

Further, Mr. Hoogervorst noted the progress in the use of IFRS Standards globally and that there are currently more than 140 jurisdictions that have adopted IFRS Standards.

In closing, Mr. Hoogervorst thanked the Trustees, the IASB Board (past and present), IASB Vice-Chair Sue Lloyd, the technical and operational staff as well as the accounting community for all the contributions to the standard setting process.

In the video recording, upcoming IASB Chair Andreas Barckow provided a brief introduction and thanked Mr. Hoogervorst for all his accomplishments during the past 10 years.

Review the transcript and video of his speech on the IASB’s website.

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