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July 2019

AcSB and OIC hold joint meeting

Jul 15, 2019

On July 15, 2019, the Canadian Accounting Standards Board (AcSB) and the Italian standard-setter Organismo Italiano di Contabilità (OIC) held a joint meeting in Rome. The meeting was the second bilateral meeting between the two standard-setters.

In addition to giving updates on their respective standard-setting activities at the meeting, the two boards exchanged views on the IASB’s current project on proposed amendments to IFRS 17 and on rate-regulated activities. In addition, the AcSB and the OIC discussed implementation activities regarding IFRS 16 Leases.

Review the press release on the OIC's website.

AcSB Exposure Draft – Amendments to IFRS 17

Jul 17, 2019

On July 17, 2019, 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 25, 2019.

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

The IASB has developed the proposed amendments 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 press release and Exposure Draft on the AcSB's website.

AcSB Exposure Draft – Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed Amendments to IAS 12)

Jul 29, 2019

On July 29, 2019, the Accounting Standards Board (AcSB) issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Comments are requested by November 14, 2019.

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

The IASB has developed the proposed amendments 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 press release and exposure draft on the AcSB's website.

AcSB response – Interest rate benchmark reform exposure draft

Jun 17, 2019

On June 17, 2019, the Accounting Standards Board (AcSB) responded to the IASB’s Exposure Draft, Interest Rate Benchmark Reform (Proposed amendments to IFRS 9 and IAS 39).

The AcSB supports the IASB’s decision to provide relief to the forward-looking aspect of the hedged accounting requirements in the first phase of this project.

However, the AcSB thinks some of the project issues in Phase 2, such as the retrospective assessment and the recycling of the accumulated other comprehensive income balance, are closely related to the issues in the first phase and should be addressed as soon as possible.

Review the press release and response on the AcSB's website.

Extractive Activities — AcSB Staff's Research Update

Jul 17, 2019

On July 17, 2019, the Accounting Standards Board (AcSB) published a revised In Brief that features additional context from the Research Update provided to the IASB.

The In Brief provides an overview of the results of the AcSB staff’s research findings, stakeholder views, and suggestions on additional areas for the IASB to consider as it starts research on extractive activities.

Review the press release and overview on the AcSB's website.

FASB consults on the amortization of goodwill

Jul 09, 2019

On July 9, 2019, the Financial Accounting Standards Board (FASB) issued an invitation to comment "Identifiable Intangible Assets and Subsequent Accounting for Goodwill", which notes that the FASB has been considering whether to change the subsequent accounting for goodwill for cost-benefit reasons. US GAAP currently requires a goodwill impairment model.

The International Accounting Standards Board (IASB) has also been discussing restoring amortization of goodwill. In December 2017, the Board decided tentatively not to reintroduce amortization and to focus on improving the impairment model instead. It confirmed this decision at its June 2019 meeting. However, the paper was the most heavily debated paper during the session as improving the impairment model has turned out to be very difficult, and the final decision was very close. The Board finally decided by a vote of 8 to 6 to confirm its preliminary view not to reintroduce amortization and to retain an impairment-only model.

The FASB's invitation to comment offers a comprehensive analysis of the subsequent accounting for goodwill as well as a comparison with the IASB approach and the approach of the Japanese standard-setter ASBJ.

Comments on the the FASB's invitation to comment are due by October 7, 2019.

Review the press release, a short explanatory video, and the invitation to comment on the FASB's website.

FASB staff issues Q&As on expected credit losses

Jul 17, 2019

On July 17, 2019, the Financial Accounting Standards Board (FASB) issued a Q&A document, “Topic 326, No. 2: Developing an Estimate of Expected Credit Losses on Financial Assets.”

The Q&As address the following topics:

  • “Use of historical loss information.”
  • “Making reasonable and supportable forecasts.”
  • “The reversion to historical loss information.”

Review the press release and Q&A document on the FASB’s website.

Hyperinflationary economies - updated IPTF watch list available

Jul 02, 2019

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. The Task Force's criteria for identifying such countries are similar to those for identifying 'hyperinflationary economies' under IAS 29.

The IPTF's discussion document for the May 21, 2019 meeting is now available and states the following view of the Task Force:

Countries with three-year cumulative inflation rates exceeding 100%:

  • Angola
  • Argentina
  • Democratic Republic of Congo
  • South Sudan
  • Sudan
  • Venezuela

Countries with projected three-year cumulative inflation rates exceeding 100%:

  • Islamic Republic of Iran
  • Yemen
  • Zimbabwe

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:

  • Suriname

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

  • Liberia
  • Libya

The full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force are available on the CAQ website. We also offer the overview of the IPTF's assessment of hyperinflationary jurisdictions at the end of our Deloitte Global summary of IAS 29.

IASB issues "Investor Update" newsletter

Jul 31, 2019

On July 31, 2019, the International Accounting Standards Board (the Board) issued the nineteenth edition of its newsletter "Investor Update", which provides investors with quick access to information about current accounting and financial reporting topics.

This issue features:

  • Spotlight — Intangible resources and financial reporting—an evolving debate
  • In profile—Jacques De Greling, Scope Ratings
  • We need your views
  • Stay up to date
  • Resources for investors

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

IASB posts webcast on IFRS IC and IASB agenda decisions

Jul 02, 2019

In April 2019, the Trustees of the IFRS Foundation issued an updated IFRS Foundation Due Process Handbook for public comment. Clarifications regarding the role and status of agenda decisions published by the Interpretations Committee (IFRS IC) and amendments to make agenda decisions a tool for the Board were the most prominent proposed amendments.

In the context of the proposed amendments, the IASB has posted a webcast with IASB Chair Hans Hoogervorst, IASB Vice-Chair Sue Lloyd and IFRS Foundation staff member Sam Prestidge that discusses some of the main elements of due process around agenda decisions.

The 13 minute webcast can be accessed through the press release on the IASB website.

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