January 2022

AcSB and ASBJ hold joint meeting

Jan 25, 2022

On January 25, 2022, the Canadian Accounting Standards Board (AcSB) and the Accounting Standards Board of Japan (ASBJ) held a joint meeting by video conference. The meeting was the third bilateral meeting between the two standard setters.

At the meeting, the AcSB and the ASBJ discussed specific technical topics in which both Boards have interest, including financial instruments, disclosure initiatives, and responding to changes in the market environment, including the interest of stakeholders. The two standard setters plan to continue to exchange views.

Review the press release on the ASBJ website.

AcSB Response – Disclosure Requirements in IFRS Standards – A Pilot Approach

Jan 19, 2022

In January 2022, the International Accounting Standards Board (IASB) published the Accounting Standards Board (AcSB) response to the IASB’s Exposure Draft issued in March 2021. The AcSB’s letter included several comments, most notably that stimulating changes to current behaviour towards disclosure requirements may prove to be the most significant barrier to achieving effective application of the IASB’s proposed amendments.

Review the letter on the IASB's website.

Hyperinflationary economies - updated IPTF watch list available

Jan 10, 2022

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. While it monitors the status of highly inflationary countries for the purposes of applying US GAAP, its criteria for identifying such countries are similar to those for identifying 'hyperinflationary economies' under IAS 29.

The IPTF's discussion document for the November 6, 2021 meeting is now available and states the following view of the Task Force:

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

  • Argentina
  • Iran
  • Lebanon
  • South Sudan
  • Sudan
  • Venezuela
  • Zimbabwe

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

  • Suriname
  • Yemen

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

There are no countries in this category for this period.

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

There are no countries in this category for this period.

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

  • Angola
  • Haiti

The IPTF also notes that there may be additional countries with three-year cumulative inflation rates exceeding 100% or that should be monitored which are not included in the analysis as the necessary data is not available. Examples cited are Afghanistan, Ethiopia, and Syria.

The full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force is available on the CAQ website.

IASB member provides update on extractive activities project

Jan 18, 2022

On January 18, 2022, International Accounting Standards Board (IASB) member Tadeu Cendon issued an article which provides an update on the IASB’s extractive activities project. The article explains reasoning behind certain IASB’s decisions related to the scope and objectives of the project.

Specifically, the article discusses:

  • Feedback received from stakeholders on why the Board was looking at extractive activities.
  • Tentative board decisions reached on the scope and objective.
  • Diversity in accounting policy.
  • Challenges in applying certain accounting standards to extractive activities outside the scope of IFRS 6.
  • Reserve and resource information.
  • Upcoming research.

Review the press release and article on the IASB’s website.

IFRS Foundation announces ISSB Vice-Chair and Special Advisor to the ISSB Chair

Jan 27, 2022

On January 27, 2022, the Trustees of the IFRS Foundation announced the appointment of Sue Lloyd as Vice-Chair of the International Sustainability Standards Board (ISSB). In addition, Janine Guillot has been appointed as Special Advisor to the ISSB Chair.

Ms. Lloyd currently serves as Vice-Chair of the International Accounting Standards Board (IASB) and Chair of the IFRS Interpretations Committee and will step down from these roles to take up her new position on 1 March 2022. Ms. Lloyd has been appointed for an initial four-year term. The press release notes that her appointment completes the current search for ISSB Vice-Chair(s). It also notes that the Trustees have begun the process of identifying successors for her current roles.

Ms. Guillot is the current Chief Executive Officer of the Value Reporting Foundation (VRF), which was formed through the merger of the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) in 2021. She has been appointed effective 1 February 2022. Ms. Guillot will provide strategic advice and counsel to the Chair of the ISSB with specific responsibilities for the consolidation of the VRF into the IFRS Foundation and the establishment of the ISSB. She will serve a two-year term, renewable for one year. A further Special Advisor to the ISSB Chair from the Asia-Oceania region is expected to be appointed who will focus on the ISSB’s engagement with developing and emerging economies, as well as with smaller companies.

The press release also highlights that the Trustees are progressing with their search for the remaining ISSB members, with potential candidates encouraged to submit their applications. Interviews for these roles are scheduled to begin in early February 2022.

Review the press release on the IFRS Foundation's website.

IRCSS Consultation Paper Response Deadline Extended to March 31, 2022

Jan 13, 2022

The pandemic continues to greatly impact the activities of organizations and individuals. To ensure stakeholders have adequate time to weigh in on this Consultation Paper, the Independent Review Committee on Standard Setting in Canada (IRCSS) has extended the comment period for its Consultation Paper from February 28, 2022, to March 31, 2022.

Review the Consultation Paper on the IRCSS' website.

Revised – AcSB Due Process Manual

Jan 31, 2022

On January 31, 2022, the Accounting Standards Board (AcSB) issued a revised version of its Due Process Manual. The changes were made to clarify certain processes and better support the Board in responding to stakeholder needs on a timely basis.

Specifically, the changes relate to:

  • establishing a clear due process for Accounting Guidelines;
  • clarifying the process for when a Board member dissents on issuing a consultation paper, an Exposure Draft, a new standard or an amendment; and
  • modifying the length of the comment period for Exposure Drafts.

Review the press release and manual on the AcSB's website.

SEC Reopens Comment Period for Proposal on Pay Versus Performance

Jan 27, 2022

On January 27, 2022, the SEC announced that it is reopening the comment period for its proposed rule "Pay Versus Performance" (released in 2015). The proposal, which was issued to address a mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, “would amend the current executive compensation disclosure rule to require a description of how executive compensation actually paid by a registrant related to the financial performance of that company.”

The reopening of the comment period is intended to give respondents the opportunity to provide additional feedback in view of developments that have occurred since the proposal’s initial release.

Comments are due 30 days after the date of the proposed rule’s publication in the Federal Register.

Review the following information on the SEC’s website:

Updated IASB work plan — Analysis (January 2022)

Jan 28, 2022

Following the IASB's January 2022 meeting, we have analyzed the IASB work plan to see what changes have resulted from the meetings and other developments since the work plan was last revised in December 2021.

Below is an analysis of all changes made to the work plan since our last analysis on December 17, 2021.

Stan­dard-set­ting projects

 Main­te­nance projects

 Research projects

 Other projects

The above is a faithful com­par­i­son of the IASB work plan at January 28, 2022 and December 17, 2021.

For access to the current IASB work plan at any time, please click here.

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.