February 2017

AcSB Exposure Draft – Annual Improvements to IFRS Standards 2015 – 2017 Cycle

Feb 09, 2017

On February 9, 2017, the Accounting Standards Board (AcSB) issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by April 12, 2017.

The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendments:

The IASB has developed the proposed amendments in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposed amendments are appropriate for application in Canada? If not, please specify which aspects of the proposed amendments, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the Exposure Draft on the AcSB's website.

AICPA issues revenue working drafts for insurance and software entities

Feb 03, 2017

On February 3, 2017, the AICPA’s Revenue Recognition Task Force released for public comment working drafts on accounting issues associated with the implementation of the new revenue standard for insurance and software entities.

The insurance working draft provides guidance on the application of the scope exception in the FASB’s guidance in ASC 606-10-15-2 and ASC 606-10-15-4 to contracts within the scope of ASC 944, while the software working draft discusses significant financing components in software arrangements. Comments on the working drafts are due by April 3, 2017.

Review the insurance and software Revenue Recognition Task Force pages on the AICPA’s Web site.

FYI Article – Changes to Published Exchange Rates

Feb 21, 2017

On February 21, 2017, the Accounting Standards Board (AcSB) released an article which provides the IFRS Discussion Group’s perspectives on how the changes to the Bank of Canada’s published exchange rates could affect IFRS reporters.

Effective March 1, 2017, the Bank of Canada will reduce the number of foreign currency exchange rates published and no longer publish noon and closing rates. Instead, a single indicative rate per currency pair will be published each day.

The IFRS Discussion Group discussed the implications this change may have when applying the requirements in IAS 21, The Effects of Changes in Foreign Exchange Rates.

Review the article on the AcSB's website.

FYI Article – Get Ready. The Insurance Contracts Standard Is Coming

Feb 21, 2017

On February 21, 2017, the Accounting Standards Board (AcSB) released an article describing the extensive due process steps it has undertaken to date on the complex Insurance Contract standard. The AcSB has taken an active role in influencing the development of IFRSs and in endorsing a standard before incorporating it into Canadian GAAP.

After years of outreach and deliberations, the Insurance Contracts standard is expected to be issued by the IASB this year. As a result, the AcSB will complete its due process prior to the standard becoming Canadian GAAP.

While some might assume the process is simple because our policy is to incorporate IFRSs as issued by the IASB into the CPA Canada Handbook –  Accounting, there are many steps that are taken to ensure that the standard meets the needs of our stakeholders. In fact, we spend over 40 per cent of our time influencing and adopting IFRSs.

Review the article on the AcSB's website.

IASB Chairman speaks on financial reporting in a digital world

Jan 31, 2017

In January 2017, the International Accounting Standards Board (IASB) released a speech by IASB Chairman Hans Hoogervorst, where he gave his thoughts on how technology is affecting financial reporting at a conference of the South Asian Federation of Accountants (SAFA) in Bangladesh.

As the conference's focus was "Navigating Through Digital Transformation Towards Better Accountability", Mr. Hoogervorst expanded on the relation between digital reporting and financial reports:

I have been asked if financial reports will become redundant as investors and others get more direct access to a wider range of information. I don’t think that will happen. Nine in ten investors surveyed by the CFA Institute say that annual reports are important to them. The more information that becomes available, the more important it is to be able to sift trustworthy information from the more spurious. Financial statements will remain relevant, even in a digital world.

Mr. Hoogervorst then went on to explain that while digital reporting developments offer a host of new opportunities they also need to be complemented by "analogue" developments and the fact that investors increasingly consume financial information electronically also meant that part of the IASB's job was to make it easy for them to access IFRS data in that manner.

Review the full transcript of Mr. Hoogervorst's remarks on the IASB's website.

IASB issues podcast on latest Board developments

Feb 28, 2017

On February 28, 2017, the International Accounting Standards Board (IASB) released a podcast featuring its Chair, Hans Hoogervorst and Vice-Chair, Sue Lloyd discussing the deliberations at the February 2017 IASB meeting.

In addition, the podcast features (1) updates on the recent meeting between the IASB, IFRS Foundation Trustees, and the IFRS Foundation Monitoring Board, (2) feedback on the proposed changes to the definition of a business consultation, (3) discussion on rate-regulated activities, (4) symmetric prepayment options comment period, and (5) sweep issues discussion on the new insurance contracts.

Review the press release on the IASB's website.

IFRS Foundation Monitoring Board announces appointment of new Chair

Feb 03, 2017

On February 3, 2017, the IFRS Foundation Monitoring Board, responsible for oversight of the IFRS Foundation, announced that Mr. Jean-Paul Servais, Vice-Chair of the IOSCO Board and Chairman of the Financial Services and Markets Authority of Belgium, has been appointed as the new Chair of the Monitoring Board.

His term as Chair is for two years from March 2017. Mr. Servais will succeed Mr. Ryozo Himino, Vice Minister for International Affairs of the Japan Financial Services Agency.

Review the press release on the IASB's website.

Reconsideration of Pay Ratio Rule Implementation

Feb 06, 2017

On February 6, 2017, the Securities and Exchange Commission (SEC) released a public statement by Michael Piwowar, the SEC's acting chairman, where he said that he is giving the public an opportunity to express opinions on a rule that forces companies to make public a comparison of executive compensation with the pay of regular workers.

In the public statement, Mr. Piwowar stated that some companies have complained about unanticipated compliance difficulties. In order to better understand the nature of these difficulties, he's seeking public input on any unexpected challenges that issuers have experienced as they prepare for compliance with the rule and whether relief is needed.

Review the public statement on the SEC's website.

Report of the IFRS Foundation Trustees February 2017 meeting

Feb 27, 2017

On February 27, 2017, the report of the IFRS Foundation Trustees meeting held in Paris on February 1–2, 2017 was released.

Meeting ac­tiv­i­ties included the following:

  • Executive session — The Trustees discussed a number of important strategic issues:
    • Strategic workplan 2017 — The Trustees discussed the four primary strategic goals of the workplan.
    • Maintenance of IFRS The Trustees received a presentation on the approach to the interpretations process.
    • Foundation’s location — The Trustees agreed that the Foundation should stay in London in the medium-term, but will reassess its location over time.
    • Presentation on the work of the International Integrated Reporting Council (IIRC) — The Trustees noted that the IIRC will like to establish a closer relationship with the IASB.
    • Other issues — The Trustees discussed its self-assessment and were updated on the Asia Oceania office’s work on long-term investment and the effect of accounting information on investment decision-making. The Trustees also discussed the timetable for the 2016 Audited Financial statements.
    • Committee reports — The Trustees discussed reports from the Audit and Finance Committee, the Education and Content Services Committee, the Human Capital Committee, and the Nom­i­nat­ing Committee.
  • IASB Chairman’s report — The Chair of the IASB provided the Trustees with an update on a number of the IASB’s technical ac­tiv­i­ties, agenda con­sul­ta­tion, engagement strategy, and implementation activities.
  • Meeting with the Monitoring Board — The Trustees discussed the Foundation’s strategy, due process, and governance.
  • Events in Paris — The Association Francaise des Enterprises Privees hosted a stake­holder event with the Trustees, which included the final Tommaso Padoa-Schioppa lecture.

The full report on the IFRS Foun­da­tion trustees’ meeting is available on the IASB’s website.

Sue Lloyd appointed new IFRS Interpretations Committee Chair

Feb 10, 2017

On February 10, 2017, the Trustees of the IFRS Foundation announced that Sue Lloyd, IASB Vice-Chair, has been appointed Chair of the IFRS Interpretations Committee effective immediately.

The position had become vacant with the death of Wayne Upton in September 2016.

Review the press release announcing Ms. Lloyd's appointment on the IASB's website.

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