August 2021

AcSB Exposure Draft – Initial Application of IFRS 17 and IFRS 9―Comparative Information (Proposed amendment to IFRS 17)

Aug 17, 2021

On August 17, 2021, the Accounting Standards Board (AcSB) issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Comments are requested by September 15, 2021.

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

The IASB has developed the proposed amendment 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 proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the Exposure Draft on the AcSB's website.

AcSB Response – Regulatory Assets and Regulatory Liabilities

Aug 05, 2021

On August 5, 2021, the International Accounting Standards Board (IASB) published the Accounting Standards Board (AcSB) response to the IASB’s Exposure Draft, issued in January 2021.

The AcSB’s letter supports the proposed accounting model for regulatory assets and regulatory liabilities as it will increase the usefulness, understandability, and comparability of an entity’s financial statements. The letter provides suggestions in certain areas to ease application and enhance the relevance of the information provided.

Review the letter on the IASB's website.

AcSB Staff Respond to EFRAG’s Discussion Paper, Accounting for Crypto-assets (liabilities)

Aug 20, 2021

On July 26, 2021, the Accounting Standards Board (AcSB) staff responded to the European Financial Reporting Advisory Group (EFRAG) Discussion Paper, “Accounting for Crypto-assets (liabilities): Holder and Issuer Perspective.” The AcSB staff strongly support EFRAG in its efforts to identify and raise awareness of the accounting issues for cryptoasset activities that are likely to be relevant to entities applying IFRS® Standards.

Read the letter to find out more about the AcSB staff’s views and suggestions on additional areas for consideration.

EFRAG discussion paper on intangibles

Aug 27, 2021

On August 27, 2021, thee European Financial Reporting Advisory Group (EFRAG) published a discussion paper "Better information on intangibles – which is the best way to go?".

The discussion paper notes that that the value relevance of financial statements is decreasing, which could be due to financial statements not reflecting information about intangibles, which has become more important for more entities than previously. Insufficient information on intangibles could affect the company’s market value due to information asymmetry, result in an inefficient capital allocation in society and make assessment of the management’s stewardship difficult. It is also difficult for users to compare entities that grow organically with those growing by means of acquisition, as current IFRSs generally require acquired intangibles to be recognized, while internally generated intangibles can only be recognized in specific circumstances.

The discussion paper considers three approaches for better information on intangibles:

  • Recognition and measurement in the primary financial statements;
  • Information on specific intangibles in the notes to the financial statements or in the management report;
  • Information on future-oriented expenses and risk/opportunity factors that may affect future performance in the notes to the financial statements or in the management report.

The scope of EFRAG’s discussions goes beyond the existing definition of assets in financial reporting and also covers sources of possible economic benefits that would not be controlled by an entity. Therefore, the DP uses the term “intangibles” instead of “intangible assets”. The press release also notes that future reporting on intangibles and value creation is a key area for connecting financial and sustainability reporting.

Comments on the discussion paper are requested by June 30, 2022.

Review the following additional information on the EFRAG website:


Hyperinflationary economies - updated IPTF watch list available

Aug 23, 2021

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 18 May 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

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
  • Liberia
  • Yemen

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. An example cited is Syria.

Review 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's website.

IASB issues "Investor Update" newsletter

Aug 26, 2021

On August 26, 2021, the International Accounting Standards Board (IASB) issued the latest edition of its newsletter "Investor Update", which profiles recently introduced IFRS Standards and other changes that are in the pipeline as well as how those changes may affect companies and performance.

This issue features:

  • In profile — Philip Robinson, accounting specialist in the Corporate Finance Group at Moody's
  • We need your views
  • Stay up to date
  • Resources for investors

Review the Investor Update newsletter on the IASB’s website.

IFRS Foundation Trustees appoint three IFRS Interpretations Committee members

Aug 17, 2021

On August 17, 2021, the Trustees of the IFRS Foundation announced the appointments of Deloitte's Karen Higgins as a member of the IFRS Interpretations Committee. The appointments are effective immediately and are for a three-year period.

Karen Higgins is an audit and assurance partner at Deloitte and has specialized in the financial services industry for more than 30 years. She is the leader of the Canadian IFRS Center of Excellence, and the Canadian firm representative on the Deloitte Global IFRS Leadership Team. Karen is also a former vice-chair of the Canadian Accounting Standards Board.

Review the press release on the IASB’s website.

SEC approves Nasdaq board diversity proposals

Aug 06, 2021

On August 6, 2021, the Securities and Exchange Commission (SEC) approved Nasdaq Stock Market LLC’s proposed rule changes related to board diversity and disclosure. The new listing standards will require each Nasdaq-listed company, subject to certain exceptions, to have at least two diverse board members or explain why it does not.

The new listing standards also will require disclosure, in an aggregated form, of information on the voluntary self-identified gender, racial characteristics, and LGBTQ+ status of the company’s board.

Review the proposal and statement on the SEC's website.

SEC panel weighs stricter SPAC disclosures, citing conflicts of interest

Aug 27, 2021

On August 27, 2021, CFO Dive released an article with insights on the risks flagged by SEC chair Gary Gensler in May to investors posed by SPACs and said the agency will investigate how the shell companies raise cash from the public and merge with target companies.

In order to comply with the new guidance, sponsors need to hire accountants and auditors to value the warrants each quarter using a complex calculation. When treating warrants as equity, sponsors make a simpler, up-front calculation.

Based on the draft document, the advisory committee would recommend SPACs be required to:

  • describe the role of its sponsor (including “insiders or affiliates such as celebrity sponsors/advisors”), their “expertise and capital contributions,” and any potential conflicts of interest, according to the advisory committee’s draft document;
  • enable investors to gauge risks by providing “plain English” disclosure about stages in the SPAC process, including the “promote” to be paid to sponsors and the impact on dilution of shares and;
  • detail “the mechanics and timeline of the SPAC process,” including a description of the asset to be purchased, events required during the next two years for the asset to appreciate and the shareholder approval process at the time of de-SPAC.

Review the article on the CFO Dive's website.

Updated IPSAS-IFRS alignment dashboard

Aug 30, 2021

On August 30, 2021, the International Public Sector Accounting Standards Board (IPSASB), which develops the International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRS Standards.

Review the updated alignment dashboard prepared for the September 2021 IPSASB meeting on the IPSASB website.

Also see our 2021 edition of IPSAS in your pocket published in February by our Global firm.

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