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March 2018

2018 IFRS XBRL taxonomy issued

Mar 16, 2018

On March 16, 2018, the IFRS Foundation issued its 2018 IFRS® Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language).

The IFRS Taxonomy 2018 is consistent with IFRS Standards as issued by the International Accounting Standards Board (the Board) at January 1, 2018 and incorporates amendments made to the IFRS Taxonomy 2017 such as:

  1. Applying IFRS 9 Financial Instruments with IFRS 4, Insurance Contracts (Amendments to IFRS 4), issued in September 2016,
  2. IFRS 17, Insurance Contracts, issued in May 2017, and
  3. Prepayment Features with Negative Compensation (Amendments to IFRS 9), issued in October 2017.

The IFRS Foundation has also published the IFRS Taxonomy Update — Annual Improvements and the IFRS Taxonomy Update — Prepayments Features with Negative Compensation (Amendments to IFRS 9). The IFRS Taxonomy 2018 incorporates the changes resulting from these two updates.

Review the press release and the IFRS Taxonomy 2018 page on the Board's website.

AcSB Insurance Transition Resource Group Meeting Notes – February 1, 2018

Mar 02, 2018

On March 2, 2018, the Accounting Standards Board (AcSB) released a summary of its Insurance Transition Resource Group meeting held on February 1, 2018.

The topics discussed at this meeting include:

  • Boundary of reinsurance contracts held
  • Separation of insurance components of a single insurance contract
  • Boundary of contracts with annual repricing mechanisms
  • Insurance acquisition cash flows paid on an initially written contract
  • Determining quantity of benefits for identifying coverage units
  • Insurance acquisition cash flows when using fair value transition
  • Reporting on other questions submitted to the IASB® Transition Resource Group for IFRS 17, Insurance Contracts

Review the summary on the AcSB's website.

Companies hurry to adopt new hedge accounting standard

Mar 09, 2018

On March 9, 2018, Accounting Today released an article on how some companies have opted to early adopt the new hedge accounting standard, particularly banks, even though they’re still dealing with other new accounting standards.

The Financial Accounting Standards Board issued its hedging standard last August, making it effective for public companies in 2019 and private companies in 2020, but also allowing for early adoption. The standard refines and expands hedge accounting for both financial risks, such as interest rates, and commodity risks.

Review the full article on Accounting Today's website.

EFRAG publishes discussion paper on the impairment and recycling of equity instruments

Mar 01, 2018

On March 1, 2018, the European Financial Reporting Advisory Group (EFRAG) published a discussion paper "Equity Instruments - Impairment and Recycling" to gather constituents' views on recycling and impairment of equity instruments designated at fair value through other comprehensive income to develop its technical advice to the European Commission.

In the first phase of the project, the European Commission asked EFRAG to collect quantitative data on the current holdings of equity instruments and their accounting treatment and investigate if entities expect that the new accounting requirements will affect their decisions in relation to investment in equity instruments. EFRAG reported its findings from this first phase in January 2018.

In the second phase of the project, the Commission asked EFRAG to provide advice on whether and how the requirements in IFRS 9 on accounting for holdings of equity instruments could be improved. As part of its due process, EFRAG has now published the discussion paper to gather constituents' views on recycling and impairment of equity instruments designated at fair value through other comprehensive income.

EFRAG has not included a preliminary view on the issues explored. Rather, the paper analyses the relevance of recycling in the context of a long-term investment business model and presents arguments on the conceptual relationship between recycling gains and losses on derecognition and impairment. The paper considers how the application problems identified with IAS 39's impairment model for available-for-sale equity instruments could be addressed. It illustrates an impairment model and a revaluation model but does not express a preliminary view as to which, if either, of these two models is preferable.

​Comments on the discussion paper are expected by May 25, 2018.

Review the discussion paper on the EFRAG's website.

FASB proposes changes in accounting for cloud computing costs

Mar 01, 2018

On March 1, 2018, the Financial Accounting Standards Board (FASB) issued a proposed accounting standards update aimed at improving how to account for the costs of implementing cloud computing. Comments are requested by April 30, 2018.

The proposed update would specifically clarify the accounting for implementation costs related to a cloud computing arrangement that is a service contract. It also would provide more disclosures of the implementation costs for internal-use software and cloud computing arrangements.

Review the press release and the exposure draft on the FASBs website.

Hyperinflationary economies - updated IPTF watch list available

Mar 08, 2018

On March 8, 2018, the Centre for Audit Quality (CAQ) released the discussion document "Monitoring Inflation in Certain Countries".

IAS 29 "Financial Reporting in Hyperinflationary Economies" defines and provides general guidance for assessing whether a particular jurisdiction's economy is hyperinflationary. But the IASB does not identify specific jurisdictions. The International Practices Task Force (IPTF) of the Centre for Audit Quality (CAQ) monitors the status of "highly inflationary" countries. The Task Force's criteria for identifying such countries are similar to those for identifying "hyperinflationary economies" under IAS 29.

The IPTF's discussion document for the November 21, 2017 meeting is now available and states the following view of the Task Force:

Countries with three-year cumulative inflation rates exceeding 100%:

  • South Sudan
  • Suriname
  • Venezuela

Countries with projected three-year cumulative inflation rates exceeding 100%:

  • Angola
  • Libya
  • Argentina

Countries where the three-year cumulative inflation rates had exceeded 100% in recent years:

  • Sudan

Countries with recent three-year cumulative inflation rates exceeding 100% after a spike in inflation in a discrete period:

  • Ukraine

Countries with projected three-year cumulative inflation rates between 70% and 100% or with a significant (25% or more) increase in inflation during the current period

  • Democratic Republic of Kongo
  • Egypt
  • Yemen

Review the press release and full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force on the CAQ's website.

IFRS Foundation reappoints two IFRS® Interpretations Committee members

Mar 02, 2018

On March 2, 2018, the Trustees of the IFRS Foundation announced the reappointment of two IFRS Interpretations Committee members, one of them Robert Uhl, Head of Deloitte's IFRS Centre of Excellence for the United States.

Robert Uhl is US National Director of Accounting Standards. He is also the US leader on Deloitte’s Global IFRS Leadership Team and a member of the Financial Accounting Standard Board’s Emerging Issues Task Force.

The other reappointed member, Jongsoo Han, is a Member of the Korea Accounting Standards Board (KASB) and Chairman of the Korea Institute of CPAs’ Accounting Research Committee.

Review the press release on the International Accounting Standards Board's website.

IFRS Foundation Trustees and Due Process Oversight Committee hold January 2018 meeting

Mar 14, 2018

The IFRS Foundation Trustees and the Due Process Oversight Committee (DPOC) met in Hong Kong on 30 January – 1 February 2018.

Meeting ac­tiv­i­ties included the following:

  • Executive session — The Trustees discussed a number of important strategic issues:
    • Trustee Corporate Governance Issues — The Trustees discussed issues related to governance and procedures.
    • Report of the Directors — The Trustees received a report which discussed highlights of the IFRS Foundation in the past three months.
    • Asia-Oceania Office Plan — The Trustees approved the Asia-Oceania’s 2018 work plan.
    • Analysis of Organisation expenditure — The Trustees received a report on total expenditure for 2017.
    • Trustee Meeting Locations — The Trustees agreed that Brussels will host the first meeting in 2019.
    • Committee reports — The Trustees discussed reports from the Audit and Finance Committee, the Education and Content Services Committee, the Human Capital Committee, the Nom­i­nat­ing Committee, and the DPOC.

      The DPOC session included an update on the International Accounting Standards Board's (the Board) technical activities as well as its due process actions. The DPOC also announced Ann Tarca will become Vice-Chair of the IFRS Taxonomy Consultative group. In addition, the DPOC approved a staff paper which outline the scope and timetable for the review of the Due Process Handbook.
  • IASB® Chairman’s report — The Chair of the IASB provided the Trustees with an update on the Board’s technical ac­tiv­i­ties, support for the implementation of IFRS 17, and the conceptual framework project.
  • Meetings in Hong Kong  The Trustees received a presentation by the Advisory Council chair. In addition, the Trustees met with the Asian-Oceanian Standard-Setters Group and had a stakeholders event.

The full report on the IFRS Foun­da­tion trustees’ and DPOC meeting is available on the Board’s website.

Insights into integrated reporting 2.0: walking the talk

Mar 09, 2018

On March 9, 2018, the Association of Chartered Certified Accountants (ACCA) published this report providing its latest assessment of integrated reporting. The report is a follow up to the 2017 report Insights into Integrated Reporting – Challenges and best practice responses.

Striking progress has been made, particularly in relation to the quality of the data. Reports were found to be more consistent: this was one of the lowest-rated areas in last year's review project, but became one of the strongest this year.

There are also signs of a focus on conciseness. The length of reports has reduced: just under half (49%) of reports reviewed contain 100 pages or fewer (compared with 29% last year) excluding the financial statements.

Review the press release and report on the ACCA's website.

The International Accounting Standards Board posts webcast on IFRS 17

Mar 07, 2018

On March 7, 2018, the International Accounting Standards Board (the Board) posted a webcast on recognizing the contractual service margin in profit or loss in IFRS 17, "Insurance Contracts".

This webcast is part of a series to support the implementation of IFRS 17.

Review the press release on the Board’s website. In addition, earlier webcasts and webinars on IFRS 17 are available through an archive.

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