July 2016

IASB posts webcast on IFRS 9 forward-looking information

Jul 25, 2016

On July 25, 2016, the International Accounting Standards Board (IASB) released a webcast discussing forward-looking information in the application of the expected credit loss impairment requirements in IFRS 9.

The webcast, which features IASB member Sue Lloyd, Technical Director Kumar Dasgupta, and Practice Fellow Uni Choi, covers the following topics:

  • “when multiple scenarios are relevant and the concept of non-linearity;
  • consistency of scenarios;
  • probability-weighted assessment of significant increase in credit risk; and
  • approaches to incorporating forward-looking scenarios”

Review the webcast on the IASB’s website.

IASB updates work plan

Jul 20, 2016

On July 20, 2016, the International Accounting Standards Board (IASB) released its updated work plan.

Changes to the work plan include:Changes to the work plan include:

Research projects

Standard-setting and related projects (major projects)

Implementation projects (narrow scope amendments)

The revised IASB work plan is available on the IASB's website.

Report on the June 2016 IFRS Advisory Council meeting

Jul 06, 2016

On July 6, 2016, the International Accounting Standards Board (IASB) released a summary of the IFRS Advisory Council meeting held on June 13–14, 2016. Highlights of the meeting will be thorough discussions of the review of structure and effectiveness of the IFRS Foundation and of the future of corporate reporting.

The following topics were discussed:

  • 2015 Agenda Consultation
  • IASB and IFRS Foundation Update
  • IFRS Foundation Review of Structure and Effectiveness
  • Members' communications
  • Technological Disruption of Financial Reporting
  • Timeline for developing Standards—The Leases Project—A look back

The full report on the council’s February meeting is available on the IASB's Web site.

Study finds it is "unrealistic to expect financial reporting around the world to be completely comparable"

Jul 08, 2016

On July 8, 2016, the Financial Reporting Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) published a paper on "Incentives and institutions in accounting: thinking beyond standards" that looks into the principal factors that affect financial reporting outcomes and the degree to which these are the product of the surrounding institutions and on the incentives that affect individual firms and their managers.

The study finds that as the incentives and institutions that influence accounting outcomes vary among firms and among jurisdictions the goal of international financial reporting should be increased comparability rather than complete comparability. Improving the quality of financial reporting would therefore not only require thinking about the technical requirements that govern it, but also the incentives of those who prepare accounts and the surrounding institutions – auditing, corporate governance, enforcement, the legal system, the educational system, and so on.

The issues discussed in the report imply that public policy debates should focus on the incentives and institutions that support financial reporting quality as well as on accounting standards. They also imply that countries considering adopting IFRS need to look at other institutions as well if they are to obtain the full benefits of adoption.

Review the full study on the ICAEW's website.

UK unlikely to depart from IFRSs if it intends to remain a global player

Jul 01, 2016

On July 1, 2016, the Institute of Chartered Accountants of Scotland (ICAS) released some additional responses to the 20 questions it posed on June 24, 2016 about the impact of 'Brexit' on business and trade, including on accounting and audit.

Responses released on July 1, 2016 include thoughts on the following question:

In areas of accountancy, what new policies will follow? Will [the UK] be inclined or persuaded to depart from International Financial Reporting Standards (IFRS) and re-establish UK Generally Accepted Accounting Practice (UK GAAP)?

The ICAS staff argue that if the UK intends to remain a global player, "then one would expect that it would need to require listed entities to comply with global standards in the area of financial reporting". They state:

IFRS is now seen as the global benchmark in terms of financial reporting standards and therefore their use, or the use of standards substantively based on the IFRS framework (adopted standards), would appear to be the primary option.

However, the ICAS staff points out that following its exit, the UK would have the ability to sadopt IFRS standards as issued by the IASB without them firstly having to be adopted by the EU. They also explain that the UK could establish its own adoption mechanism, possibly via the Financial Reporting Council (FRC).

Please click for the following information on the ICAS' Web site:

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.