December 2017

AICPA issues five revenue working drafts

Dec 04, 2017

In December 2017, the AICPA’s revenue recognition task forces released for public comment five working drafts on accounting issues associated with the implementation of the new revenue standard for health care, not-for-profit, telecommunication, and time-share entities.

The working drafts address the following topics:

Comments on the working drafts are due by February 1, 2018.

For more information, see the revenue recognition page on the AICPA’s website.


AICPA issues revenue working draft for broker-dealers

Dec 15, 2017

In December 2017, the AICPA’s Revenue Recognition Task Force released for public comment a working draft on accounting issues associated with the implementation of the new revenue standard for broker-dealers.

The working draft addresses investment banking M&A advisory fees. Comments on the working draft are due by February 15, 2018.

For more information, see the revenue recognition resource page on the AICPA’s website.

ANC Research Forum

Dec 11, 2017

On December 11, 2017, the Autorité des Normes Comptables (ANC), the French standard setter, hosted its 7th Symposium on Accounting Research. The policy papers can be downloaded from the ANC's website.

The papers are the following:

  • Elements for a European conceptual framework (cover note and proposed framework) (available in English)
  • Using proforma to predict future cash-flows: the impact of income statement (available in English and French)
  • The value relevance of IFRS earnings totals and sub-totals and non-GAAP performance measures (available in English and French (executive summary))
  • L’impact du numérique sur l’information financière: quel enjeu stratégique pour la normalisation comptable international? Le cas du langage XBRL comme «Standard Business Reporting Language» (available in English (executive summary) and French)
  • Quel impact de l’économie numérique sur la comptabilité ? l’enjeu de la reconnaissance des actifs immatériels (available in English and French)

Audited Digital Financial Statements: They Improve The Process Too

Dec 08, 2017

On December 8, 2017, on the XBRL International blog, CFA Institute Director of Financial Reporting, Mohini Singh, calls for securities regulators and audit regulators to heed the results of a CFA Institute survey on investors expectations around digital financial statements.

Investors act as fiduciaries, making decisions on behalf of millions of pension fund holders and institutions. They rely significantly on company financial statements to support their investment decisions and (at least for those that have taken the time to consider the issues at stake) have come out strongly in favour of independent audit or assurance around Inline XBRL documents.

Review the blog on XBRL International's website.

FASB releases 2018 U.S. GAAP and SEC taxonomies

Dec 21, 2017

On December 21 2017, the Financial Accounting Standards Board (FASB) released the 2018 U.S. GAAP Financial Reporting Taxonomy and 2018 SEC Reporting Taxonomy (SRT).

The 2018 version of the U.S. GAAP taxonomy “contains updates for accounting standards and other improvements.” The 2018 SEC taxonomy “contains elements necessary to meet SEC requirements for financial schedules required by the SEC, condensed consolidating financial information for guarantors, and disclosures about oil- and gas-producing activities.”

Both taxonomies are subject to final SEC approval, which is expected to be granted in early 2018.

As per the January issue of the XBRL Canada Newsletter, the introduction of the SRT taxonomy eliminates the need for foreign private issuers (FPIs) using the IFRS taxonomy to import the US-GAAP Financial Reporting Taxonomy. This simplifies what would otherwise be a complex process.

Review the press release, U.S. GAAP taxonomy page, and SRT taxonomy page on the FASB’s Web site.

FRC Lab report notes digital future of corporate reporting

Dec 13, 2017

In December 2017, a new report from the Financial Reporting Lab of the UK Financial Reporting Council (FRC) concludes that XBRL (eXtensible Business Reporting Language) is an important technology in the path to digitization of company reporting.

The Lab considered how XBRL could be used in the production, distribution and consumption of listed company annual reports. The Lab identified gaps between the characteristics that users and preparers desired from digital reporting and the expected implementation of XBRL for listed company reporting. To close these gaps, the report recommends a series of actions for regulators, technology companies, preparers and investors and notes:

We are at a turning point for the use of technology in corporate reporting. The paper-based way of reporting is likely to change with the European requirement to prepare digital financial information by 2020. The changing demands of users, supported by upcoming regulatory changes mean that boards can no longer ignore digitization of listed company reporting. This report urges all those involved in corporate reporting to help shape the future.

Review the report on the FRC's website.

IASB concludes the 2015-2017 annual improvements cycle

Dec 12, 2017

On December 12, 2017, the International Accounting Standards Board (IASB) issued "Annual Improvements to IFRS Standards 2015–2017 Cycle". The pronouncement contains amendments to four International Financial Reporting Standards (IFRS) as result of the IASB's annual improvements project.

Annual Improvements to IFRS Standards 2015–2017 Cycle makes amendments to the following standards:

IFRS Subject of amendment

IFRS 3, Business Combinations and IFRS 11, Joint Arrangements

The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business. The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. 

IAS 12, Income Taxes

The amendments clarify that the requirements in the former paragraph 52B (to recognize the income tax consequences of dividends where the transactions or events that generated distributable profits are recognized) apply to all income tax consequences of dividends by moving the paragraph away from paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits.

IAS 23Borrowing Costs

The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.

The Amendments to IFRS 3 and IFRS 11 were originally included in Exposure Draft ED/2016/1 Definition of a Business and Accounting for Previously Held Interests. However, the Board believed that these amendments meet the criteria for annual improvements and therefore included them in this cycle.

Furthermore, the Exposure Draft ED/2017/1 Annual Improvements to IFRS Standards 2015-2017 Cycle included amendments to IAS 28 regarding long-term interests in an associate or joint venture. Those amendments have been finalised separately as a narrow-scope amendment to IAS 28.

The amendments published today are all effective for annual periods beginning on or after January 1, 2019.

Review the press release on the IASB's website.

IASB posts webcast on IFRS 17

Dec 12, 2017

On December 12, 2017, the International Accounting Standards Board (IASB) posted a webcast on the transition requirements in IFRS 17 "Insurance Contracts".

The new webcast is available on the IASB website in two parts: (i) an overview and (ii) a deep dive. It is part of a series on the implementation of IFRS 17. Earlier webcasts and webinars on IFRS 17 are available through an archive.

IASB Vice-Chair discusses impact of new IFRS Standards and enhancing the communication of financial information

Dec 05, 2017

On December 5, 2017, the International Accounting Standards Board (IASB) released a speech given by IASB Vice-Chair Sue Lloyd on the IASB’s developments in the standard-setting process, as well as its upcoming focus on improving communication effectiveness in financial statements and wider corporate reporting. The speech was given at the 2017 AICPA Conference on Current SEC and PCAOB Developments.

Ms. Lloyd started by recapping some of the major standards finalized in the past few years, which include IFRS 9, Financial Instruments, IFRS 15, Revenue From Contracts With Customers, IFRS 16, Leases, and IFRS 17, Insurance Contracts. She noted that for some of these standards, the IASB worked closely with the FASB to develop comparable guidance where possible. In addition, she discussed how the Interpretations Committee and the implementation groups play a key role in gathering information about issues in practice related to application of accounting guidance.

Next, Ms. Lloyd commented that one of the objectives the IASB has for the next five years is to improve communication effectiveness. She explained that this area of work is broken into three parts: (1) improving performance reporting, (2) improving the effectiveness of financial statement disclosures, and (3) enhancing content with the use of electronic tagging (IFRS Taxonomy).

Lastly, she mentioned that the IASB has added a project to its work plan on wider corporate reporting, which will investigate what information is useful to investors that goes beyond the traditional financial statement.

Review the full transcript of the speech on the IASB’s website.

IFRS 17 Insurance Contracts—Help is at hand

Dec 07, 2017

On December 7, 2017, the International Accounting Standards Board (IASB) released a summary of the tools to help with the implementation of IFRS 17, "Insurance Contracts".

Implementing IFRS 17 represents fundamental changes for some insurers. Many concepts in IFRS 17 are new; it is the first time an IFRS Standard has prescribed the measurement of insurance contracts. Because insurers currently use local requirements to account for their insurance contracts, they will approach the transition to the new accounting requirements from many different perspectives. Applying the requirements in IFRS 17 will prompt changes in insurers’ operations; for example, many insurers may have to upgrade their data, systems and processes.

The tools include:

Review the press release on the IASB's website.

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