This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

August 2016

AcSB Exposure Draft - Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11)

Aug 08, 2016

On August 8, 2016, the Accounting Standards Board (AcSB) has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft of proposed amendments to IFRS 3, Business Combinations and IFRS 11, Joint Arrangements, that was issued for comment on June 28, 2016. It clarifies both the definition of a business and how to account for previously held interests. Stakeholders are encouraged to submit their comments by October 31, 2016.

The pro­posed amend­ments pro­vide:

  • clearer ap­pli­ca­tion guid­ance to help dis­tin­guish be­tween a busi­ness and a group of as­sets when ap­ply­ing IFRS 3; and
  • clar­i­fi­ca­tion on how a com­pany should ac­count for pre­vi­ously held in­ter­est in a busi­ness, if ac­quir­ing con­trol, or joint con­trol, of that busi­ness.

The pro­posed amended ap­pli­ca­tion guid­ance on the de­f­i­n­i­tion of a busi­ness in IFRS 3 arises from the Board’s Post-im­ple­men­ta­tion Re­view (PIR) process, which is con­ducted on each Stan­dard and ma­jor amend­ment ap­prox­i­mately two years af­ter their ef­fec­tive dates. The IFRS 3 PIR shows gen­eral sup­port for the ac­count­ing re­quire­ments in the Stan­dard but iden­ti­fies some ar­eas where fur­ther re­search will be un­der­taken. The pro­posed amend­ment to ac­count­ing for pre­vi­ously held in­ter­ests was de­vel­oped through the IFRS In­ter­pre­ta­tions Com­mit­tee.

Ad­di­tional in­for­ma­tion

Please click for:

FASB proposes guidance on presentation

Aug 11, 2016

On August 11, 2016, the Financial Accounting Standards Board (FASB) released an exposure draft proposing changes related to how items are presented in a financial statement as part of the FASB’s larger project to create a new conceptual framework.

The proposed changes address how to group individual recognised items into line items and subtotals and clarify the relationships among assets, liabilities, and equity, along with the effects of related changes on comprehensive income and cash flows.

Originally, the IASB and the FASB decided to review and revise their conceptual frameworks together, however, changed priorities and the slow progress in the project led to the project being abandoned in 2010. In 2012, the IASB reactivated the conceptual framework project as an IASB only project given the multitude of open conceptual issues it is facing in many of its current projects. In May 2015, the IASB published an exposure draft of a new Conceptual Framework in which Chapter 7 Presentation and disclosure discussed concepts that determine what information is included in the financial statements and how that information should be presented and disclosed. In parallel, the IASB is conducting a primary financial statements project examining possible changes to the structure and content of the primary financial statements. The project is in the stage of early research and was last discussed by the IASB in May 2016.

For more information on the new FASB exposure draft, see the press release, a FASB in Focus newsletter, and the ED on the FASB’s website.

IASB provides updates to insurance project

Aug 10, 2016

On August 10, 2016, the International Accounting Standards Board (IASB) has provided additional information on its upcoming insurance standard related to (i) field work, (ii) the feedback statement on its Exposure Draft (ED), “Insurance Contracts”, and (iii) the effect of board redeliberations.

Field work — Round IV of testing to assist the staff in identifying any sweep issues.

Feedback statement — IASB comments on the feedback received on its ED.

Effect of board redeliberations — Discusses areas in the ED that would change due to tentative decisions reach by the IASB.

For more information, see the insurance project page on the IASB’s website.

IFAC urges G20 to call for global adoption of IFRSs and ISAs

Aug 25, 2016

On August 25, 2016, the International Federation of Accountants (IFAC) has submitted recommendations for endorsement by the Group of Twenty (G-20) during their meeting in China on September 4-5, 2016.

IFAC believes that it is crucial for the G-20 to restore trust and increase transparency globally.

More specifically, IFAC calls on the G-20 to address:

  • Strengthening governance, which in both the public and private sectors is at the heart of accomplishing the G-20 objectives of recovery, growth, and stability, as well as combatting fraud and corruption and restoring public trust and integrity.
  • Promoting and adopting principles for good regulation to create a more consistent, effective international regulatory environment.
  • Acknowledging the importance of international standards across all jurisdictions, including international standards for accounting, auditing and assurance, professional ethics and education, and public sector accounting.

Please click here to access the full letter and a cor­re­spond­ing press release on the IFAC's Web site.

IFRS Foundation Monitoring Board publishes work plan

Aug 02, 2016

On August 2, 2016, the IFRS Foundation Monitoring Board, responsible for the oversight of the IFRS Foundation, published its work plan. The Board expects that it will carry out the activities in the “near-term”.

The Monitoring Board organized its plan into three sections, work related to:

  • Trustees’ oversight of the IASB — Provide comments on the IASB’s due process arrangement and refer agenda items to the Trustees.
  • Trustees — Review (1) the Trustees’ Review of Structure and Effectiveness and (2) the June 2016 proposal to amend the IFRS Foundation Constitution. The Monitoring Board also plans to review the Trustees’ financial arrangements and participate in the Trustee nomination process.
  • Monitoring Board — Conduct a periodic review of existing Monitoring Board members and consider rotating members.

The work plan is available on the IASB's website.

New Member of the IFRS Foundation Monitoring Board

Aug 19, 2016

On August 19, 2016, the IFRS Foundation Monitoring Board, responsible for the oversight of the IFRS Foundation, has published a press release announcing that the Ministry of Finance of the People’s Republic of China (China MOF) is now a member of the Monitoring Board.

In its Final Report on the Review of the IFRS Foundation’s Governance published in February 2012, the Monitoring Board announced that it wants to expand its membership to include up to four members, primarily from major emerging markets. In January 2014, the Brazilian Securities Commission (CVM) and the Financial Services Commission of Korea (FSC) were appointed as members. The application from China triggered an extended screening, however, it was found that the China MOF fulfils the revised membership criteria approved by the Monitoring Board in February 2016. The United States Securities and Exchange Commission (SEC) abstained from the final vote on the membership.

For further details, refer to the press release on the IASB website.

OSFI's Revised Pillar 3 Disclosure Requirements

Aug 17, 2016

On August 17, 2016, the Office of the Superintendent of Financial Institutions (OSFI) issued a letter which communicates its expectations on the implementation date of the Revised Basel Pillar 3 standards for Canadian domestic systemically important banks (D-SIBs) and expectations for small and medium size banks.

As noted in OSFI's letter, D-SIBs are expected to implement the Revised Basel Pillar 3 standards for the fiscal year ending October 31, 2018. Small and medium size banks, with certain exceptions, are permitted to continue with their existing Pillar 3 disclosure practices.

In 2017, OSFI will issue a final guideline on the implementation of the Revised Basel Pillar 3 standards. As the Basel Committee continues to complete each phase of the disclosure project, OSFI will determine the applicability of those revisions and provide further guidance to federally regulated deposit-taking institutions.

SEC requests comments on certain Regulation S-K disclosure requirements

Aug 25, 2016

On August 25, 2016, the US Securities and Exchange Commission (SEC) pub­lished a request for comment as part of its dis­clo­sure ef­fec­tive­ness ini­tia­tive. The request for comment seeks feed­back on certain dis­clo­sure re­quire­ments in Subpart 400 of Reg­u­la­tion S-K related to man­age­ment, certain se­cu­rity holders, and cor­po­rate gov­er­nance matters.

The Com­mis­sion plans to take the com­ments re­ceived into account when de­vel­op­ing its study on Reg­u­la­tion S-K, which is re­quired by the Fixing America’s Surface Trans­porta­tion Act. Com­ments are due 60 days after the date of pub­li­ca­tion in the Federal Reg­is­ter.

For more in­for­ma­tion, see the press release and request for comment on the SEC’s Web site.

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.