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 (http://www2.deloitte.com/ca/en/legal/cookies.html) 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.

July 2019

IASB posts webinar on IFRS 9 after IFRS Interpretations Committee discussion

Jul 22, 2019

On July 22, 2019, the International Accounting Standards Board (IASB) posted to its website a webinar summarizing the IFRS Interpretations Committee's recent discussions on how a company should present amounts in its statement of profit or loss if a credit-impaired financial asset is subsequently paid in full or no longer credit-impaired (cured).

The webinar is hosted by IASB technical staff members Angie Ah Kun and Elizabeth Figgie. They discuss the March 2019 meeting of the IFRS Interpretations Committee and walk through the relevant requirements in IFRS 9 for amortized cost measurement and impairment.

Review the press release and webinar on the IASB’s website.

IASB publishes proposed amendments to IAS 12

Jul 17, 2019

On July 17, 2019, the International Accounting Standards Board (IASB) published an exposure draft "Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12)" that aim at clarifying how companies account for deferred tax on leases and decommissioning obligations. Comments are requested by November 14, 2019.

 

Background

The IFRS Interpretations Committee received a submission about IAS 12, Income Taxes and the recognition of deferred tax in relation to leases (when a lessee recognizes an asset and a liability at the lease commencement) and decommissioning obligations (when an entity recognizes a liability and includes the decommissioning costs in the cost of the item of of property, plant and equipment). The submitted fact pattern assumed that lease payments and decommissioning costs were deductible for tax purposes when paid and identified different approaches in practice.

The Committee discussed the submission at its meetings in March 2018 and June 2018 and came to the conclusion that the matter was relevant and widespread, as there are various kinds of contracts and fact patterns affected. Moreover, the question as to whether tax deductions are attributable to a contract, a (single) asset/liability, or rather to cash flows, and as to which consequences this may have for determining temporary differences, is fundamental within IAS 12. Therefore, the Committee recommended that the IASB develop clarifying amendments to IAS 12.

The IASB discussed the issue in October 2018 (general discussion of the issue and agreement with the IFRS Interpretations Committee's recommendation) and January 2019 (transition, retrospective application, and early application) and has now published an exposure draft of proposed clarifying amendments.

 

Suggested changes

The main change proposed in ED/2019/5 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12) is a proposed exemption from the initial recognition exemption provided in IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption would not apply to transactions in which both deductible and taxable temporary differences arise on initial recognition that result in the recognition of deferred tax assets and liabilities of the same amount. This is also explained in the newly inserted paragraph IAS 12.22A.

    Comments on the proposed changes are requested by November 14, 2019.

     

    Effective date and transition

    The exposure draft does not contain a proposed effective date as the IASB intends to decide on this after exposure. The proposed amendments would be applied retrospectively in accordance with IAS 8 and early adoption would be permitted.

    For practical and cost reasons, some simplification is provided for the assessment of the probability that a taxable profit will be available against which the deductible temporary difference can be utilized. A similar simplification is proposed for first-time adopters.

     

    Additional information

     

    IFRS Foundation developing a stakeholder engagement register

    Jul 22, 2019

    On July 22, 2019, the IFRS Foundation announced that it will publish a register to provide a public record of IASB members’ engagement with stakeholders. The register will be published quarterly, beginning December 2019.

    The register is being created to increase transparency and "continue demonstrating the Board’s independence and accountability and is also in line with stakeholder feedback." The register will include speaking engagements and face-to-face, web-based or phone meetings of more than 30 minutes duration. IASB members will record the date, the name of the relevant stakeholder organization, and location and purpose of each engagement.

    This development can be traced back, among other things, to demands made by the European Commission in its annual report on the activities of the IFRS Foundation, EFRAG and PIOB in 2017, which was published in October 2018. The Commission had observed:

    When members of the IFRS Foundation meet with stakeholders outside the framework of the Due Process Handbook, no formal record is kept.

    The Commission had noted that it would take action in this regard:

    The Commission will engage with the beneficiaries in 2018 in order to ensure (even) higher standards of transparency, in particular with regard to the establishement of mandatory transparency registers on meetings with external stakeholders.

    As the Commission has made similar comments when reporting on the activities of EFRAG, it is likely that EFRAG will also present a transparency register in the near future.

    Review the Commission report on the European Commission's website and press release on the IASB's website.

    IFRS Foundation launches new quarterly podcast

    Jul 05, 2019

    On July 5, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) published the first of a new quarterly podcast focusing on the work undertaken by the IASB and the IFRIC to support consistent application of IFRS Standards. The podcasts will report on discussions at meetings of the Interpretations Committee and provide an overview of other relevant activities in the period.

    Listen to the first such podcast in which Vice-Chair of the Board and Chair of the Interpretations Committee Sue Lloyd joins Technical Staff member Patrina Buchanan for a discussion that focuses on the June 2019 meeting of the Interpretations Committee. Among the topics covered in this podcast are questions about applying the new financial instruments, revenue recognition and leases Standards—IFRS 9, IFRS 15 and IFRS 16—as well as the accounting for holdings of cryptocurrencies. 

    Here is the link to the 24 minute podcast on the IASB web­site.

    New IASB webinar: Overview of Exposure Draft, Amendments to IFRS 17

    Jul 04, 2019

    On July 4, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) released a recorded webinar which provides an overview of its recent Exposure Draft, Amendments to IFRS 17, published by the IASB on June 26, 2019.

    This recording took place to provide national standard-setters with an overview of the proposed amendments to IFRS 17. The presenters are Laura Kennedy and Roberta Ravelli, Technical Staff at the IFRS Foundation. 

    Here is the link to the 25 minute webinar on the IASB website.

    Presentations from the IFRS Foundation workshops at the EAA Conference in May 2019

    Jul 05, 2019

    On July 5, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) posted several presentations by an IASB Board member and staff at the Annual Congress of the European Accounting Association held in Paphos, Cyprus on May 29-31, 2019.

    Ann Tarca, IASB Member and Anne McGeachin, IASB Technical Staff presented at two IFRS Foundation events at the annual congress, covering:

    • IASB Technical Update
    • Guide to new Standards—IFRS 9, IFRS 15, IFRS 16 and research opportunities
    • IASB Technical Update: Primary Financial Statements

    Here is the link to the presentations on the IASB web­site.

    Resolving financial reporting issues with technology

    Jul 31, 2019

    On July 31, 2019, Accounting Today published an article on how technological advancements have a number of advantages that could take financial reporting from good to great.

    Most companies understand how critical the record-to-report process is to their business. However, lopsided attention and investment on the front side (recording, closing and consolidating) have left the financial analysis and reporting functions trailing behind in both efficiency and effectiveness — despite reporting being the most visible and scrutinized part of the process.

    Thankfully, enterprises have potent tools to quickly improve their financial reporting and make it both faster and more accurate. Such tools, along with streamlined processes and a renewed commitment to the reporting function, can alleviate most of the issues plaguing financial reporting in organizations.

    Review the full article on Accounting Today's website.

    Speech by CFO of BMW: Relevance of financial reporting in today's global environment

    Jul 05, 2019

    On July 5, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) posted a copy of the speech by the CFO of BMW regarding the relevance of financial reporting in today's global environment.

    Dr. Nicolas Peter, Chief Financial Officer of BMW AG, gave the keynote address at a stakeholder event in Munich on June 26, 2019, jointly hosted by the Trustees of the IFRS Foundation and the Deutsche Rechnungslegungs Standards Committee (DRSC, the German accounting standard-setter). In his speech, Dr. Peter outlines the importance of IFRS Standards to BMW AG and the global financial market, and discusses some of the challenges for the future.

    Here is the link to the speech on the IASB web­site.

    Statement on LIBOR transition

    Jul 12, 2019

    On July 12, 2019, the Securities and Exchange Commission (SEC) published a statement by the staffs of the Divisions of Corporation Finance, Investment Management, and Trading and Markets, and the Office of the Chief Accountant on managing the transition from LIBOR.

    The statement covers:

    • Alternative reference rates
    • Managing the transition from LIBOR
    • Division specific guidance

    Review the full statement on the SEC's website.

    Summary of the June 2019 joint CMAC-GPF meeting

    Jul 23, 2019

    On July 23, 2019, the International Accounting Standards Board (IASB) released a summary of its meeting with both the Capital Markets Advisory Council (CMAC) and Global Preparers Forum (GPF), which was held in London on June 13 and 14, 2019.

    The topics discussed at the meeting included:

    • Disclosure of sensitive information
    • Goodwill and impairment
    • Primary financial statements
    • Business combinations under common control
    • Management commentary
    • Targeted standards-level review

    The next GPF meeting will be held on October 8, 2019; the next CMAC meeting will take place on October 10, 2019.

    Review the press releasemeeting page and meeting summary on the IASB's website.

    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.