November 2022

COP27 ISSB podcast

Nov 11, 2022

On November 11, 2022, the International Sustainability Standards Board (ISSB) released a podcast about highlights from COP27.

The podcast covers:

  • ISSB announcements made at COP27;
  • support for scalability and proportionality and collaboration on capacity building;
  • preparedness of the global south in adopting standards;
  • discussion of the importance of African jurisdictions in establishing the global baseline; and
  • expectations over the next 12 months.

Review the press release and listen to the 15 minute podcast on the ISSB's website.

DPOC to discuss shortened comment period for OECD Pillar Two proposals

Nov 28, 2022

The Due Process Oversight Committee (DPOC) will hold a supplementary meeting on December 1, 2022.

There are two topics on the agenda:

  • Approval for a shortened comment period for an exposure draft of proposed amendments to IAS 12 Income Taxes; and
  • Due process review of the post-implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments.

The amendments to IAS 12 relate to the new project the IASB added to its work programme last week, which aims to address concerns about the potential implications of the imminent implementation of the OECD Pillar Two rules on the accounting for income taxes. The IASB has tentatively decided to introduce:

  • a temporary exception from accounting for deferred taxes arising from the implementation of the rules; and
  • targeted disclosures requirements for affected companies.

The IASB expects to publish an exposure draft in January 2023.

Review the full agenda and papers for the meeting on the IASB's website.

Emerging ASC 740 issues: Recent tax legislation

Nov 22, 2022

This article provides an updated discussion of the financial reporting implications relating to the new advanced manufacturing tax credit under the CHIPS Act of 2022 and certain tax provisions in the Inflation Reduction Act of 2022, including a provision to allow eligible taxpayers to elect to transfer eligible tax credits to an unrelated taxpayer.

Review the article.

G20 Leaders support upcoming ISSB Standards

Nov 17, 2022

The G20 issued final declaration following the G20 Leaders meeting held in Bali on November 15–16, 2022.

In particular, the G20 discussed that “globally consistent data are needed in order to effectively address climate-related financial risks” and are looking “forward to the finalization of standards by the International Sustainability Standards Board (ISSB) in support of globally consistent, comparable and reliable climate-related financial disclosures, and its work beyond climate.” In addition, the G20 welcomes “the efforts to achieve interoperability across disclosure frameworks.”

Review the full final declaration.

IASB issues November 2022 "Investor Update" newsletter

Nov 17, 2022

On November 17, 2022, 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 — Enitan Adebonojo, Senior Forensic Equity Analyst and Executive Director at CFRA
  • Spotlight — Key conclusions from the Third Agenda Consultation
  • We need your views — Open consultations
  • Stay up to date
  • Resources for investors — Recent webcasts and webinars
  • IASB Updates and podcasts

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

IASB votes to retain impairment-only model

Nov 24, 2022

On November 24, 2022, the International Accounting Standards Board (IASB) discussed whether there was compelling evidence that amortisation of goodwill should be reintroduced.

The IASB did not discuss whether either the impairment-only model or the amortisation model are conceptually superior but rather whether there was compelling evidence that would justify a switch from one model to the other. IASB members expressed different views as to which model they would have preferred, however, ten out of eleven members agreed that there was not enough evidence to change the IASB's original decision to work with an impairment only model. However, IASB members also noted that the decision might be revisited in later years.

Review the press release on the IASB's website.

IFR4NPO publishes first exposure draft

Nov 21, 2022

On November 21, 2022, the International Financial Reporting for Non-Profit Organisations (IFR4NPO), an initiative to develop the first internationally applicable financial reporting guidance for non-profit organisations, released "International Non-Profit Accounting Guidance, Exposure Draft 1".

The new guidance, International Non-Profit Accounting Guidance (INPAG), seeks to improve clarity and consistency of Non-Profit Organisation (NPO) financial reports, resulting in greater credibility and trust in the sector globally.

The exposure draft is the first of three parts, each followed by a 4-month consultation period. ED1 addresses four main topics that are important for the framing and context of INPAG:

  1. A description of Non-Profit Organisations
  2. A framework for INPAG
  3. Financial statements presentation
  4. Narrative reporting

INPAG will have 36 sections. ED1 contains the preface, sections 1 to 10, and section 35. The remaining sections will be covered in ED2 and ED3 in 2023.

Review the press release and ED and supporting material on the IFR4NPO's website.

IFRS Foundation proposes second update to IFRS Taxonomy 2022

Nov 28, 2022

On November 28, 2022, the IFRS Foundation issued a proposed IFRS Taxonomy Update, "IFRS Accounting Taxonomy 2022 Proposed Update 2 — Lease Liability in a Sale and Leaseback and Non-current Liabilities with Covenants". Comments are requested by December 28, 2022.

The proposed changes reflect two recent amendments to IFRS Accounting Standards:

Review the press release and proposed update on the IFRS Foundation's website.

IFRS Foundation proposes update to IFRS Taxonomy 2022

Nov 16, 2022

On November 16, 2022, the IFRS Foundation issued a proposed IFRS Taxonomy Update, "IFRS Accounting Taxonomy 2022 Proposed Update 1 — General Improvements and Common Practice". Comments are requested by December 16, 2022.

The proposed changes aim to improve the quality of tagged data and to make the IFRS Accounting Taxonomy easier to use.

Review the details on the proposed changes in the press release and proposed update on the IASB's website.

IOSCO outlines need for timely sustainability disclosure and assurance standards

Nov 09, 2022

On November 9, 2022 at COP27, the International Organization for Securities Commissions (IOSCO) outlined the actions it undertakes to protect investors by mitigating greenwashing in financial markets, to contribute to sustainability disclosure standards benefitting issuers and investors, and to promote well-functioning carbon markets.

On sustainability disclosures, IOSCO set out its expectations that both disclosures and assurance standards should be ready for use by corporates for their end-2024 accounts. IOSCO noted that once the ISSB standards are available it will move quickly on its endorsement decision:

In 2023, the ISSB will issue its standard for climate disclosures and general requirements. IOSCO will move promptly to decide on endorsement and will develop a support program for its members to assist them in moving forward immediately should IOSCO decide to endorse these standards. IOSCO also supports the efforts of the ISSB in seeking to be inclusive through its capacity building partnership initiative.

The IOSCO also highlighted the importance of maximizing interoperability of standards and aligning key climate disclosures and noted that interoperability across the world will be an important factor in IOSCO’s endorsement decision. IOSCO believes close alignment between the ISSB and those jurisdictions seeking to implement their own sets of standards is essential to ensure capital flows to where it is most needed.

Review the full statement on the IOSCO's website.

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