Summary of the June 2016 joint CMAC-GPF meeting

  • IFRS - GPF Image
  • IFRS - CMAC Image

Sep 02, 2016

On September 2, 2016, the International Accounting Standards Board (IASB) posted the minutes of the meeting of the Global Preparers Forum (GPF) and the Capital Markets Advisory Council (CMAC) with representatives of the IASB held in London on June 15 and 16, 2016.

The topics discussed at the meeting included:

  • IASB and Interpretations Committee Update: Members discussed the support of consistent application of IFRSs and the agenda consultation.
  • Materiality: Members discussed a proposed ‘four-step approach’ for making materiality judgements when preparing a financial report:
    • Step 1 — identifying the primary users and their information needs;
    • Step 2 — making a materiality judgement, considering quantitative factors as well as qualitative entity-specific and environmental factors;
    • Step 3 — organising material information within the financial report; and
    • Step 4 — stepping back and reviewing the financial report as a whole.
  • Statement of Cash Flows: Topics discussed were the classification of cash flows (positively defining cash flows from operating activities, presenting cash outflows for acquiring property, plant and equipment as cash flows from operating activities, presentation of cash flows related to financing liabilities, cash received from customers and presentation of cash flows related to tax), cash equivalents and the management of liquid resources, reconciliation of operating activities, and direct or indirect method.
  • Primary Financial Statements: Members discussed the structure and content of the statement of profit or loss and OCI as regards line items and subtotals as well as alternative performance measures, the structure and content of the statement of financial position, and the interaction between items reported in different primary financial statements,
  • Financial instruments with characteristics of equity: Focus of the discussion were shares redeemable at fair value and cumulative preference shares.

Review the full meeting summary on the IASB's website.

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