July 2021

New IASB Chair begins his first term

Jul 01, 2021

On July 1, 2021, the new Chair of the International Accounting Standards Board (IASB), Andreas Barckow, has officially taken up his role.

Before joining the IASB, Dr. Barckow served as President of the Accounting Standards Committee of Germany (Deutsches Rech­nungsle­gungs Standards Committee e.V.). He is a former Deloitte Partner and has been an active par­tic­i­pant in numerous advisory bodies to the IFRS Foun­da­tion and the IASB, including mem­ber­ship of the IASB’s Accounting Standards Advisory Forum (ASAF) and the IFRS Advisory Council, and is a highly recognized expert on IFRSs at national, European and international level.

In an interview published on the IASB website today he talks about his career, his ex­pe­ri­ence at the Foun­da­tion so far and his pri­or­i­ties for the next few years.

Please click to access the interview on the IASB website.

Statement on investor protection related to recent developments in China

Jul 30, 2021

On July 30, 2021, SEC Chair Gary Gensler issued a statement highlighting disclosure concerns with China-based companies. In a number of sectors in China, companies are not allowed to have foreign ownership and cannot directly list on exchanges outside of China. To raise money on such exchanges, many China-based operating companies are structured as Variable Interest Entities (VIEs).

In light of the recent developments in China and the overall risks with the China-based VIE structure, he asked staff to seek certain disclosures from offshore issuers associated with China-based operating companies before their registration statements will be declared effective. In particular, he asked staff to ensure that these issuers prominently and clearly disclose:

  • That investors are not buying shares of a China-based operating company but instead are buying shares of a shell company issuer that maintains service agreements with the associated operating company. Thus, the business description of the issuer should clearly distinguish the description of the shell company’s management services from the description of the China-based operating company;
  • That the China-based operating company, the shell company issuer, and investors face uncertainty about future actions by the government of China that could significantly affect the operating company’s financial performance and the enforceability of the contractual arrangements; and
  • Detailed financial information, including quantitative metrics, so that investors can understand the financial relationship between the VIE and the issuer.

Review the statement on the SEC’s website.

Update – IASB and AcSB extend comment period on Exposure Draft – Disclosure Requirements in IFRS Standards

Jul 30, 2021

On July 30, 2021, the Accounting Standards Board (AcSB) updated its Exposure Draft that corresponds to the IASB’s Exposure Draft to reflect the extended deadline. The IASB extended the comment period for its Exposure Draft to January 12, 2022. The extended comment period will allow more time for preparers to engage in fieldwork and provide feedback on the practical application of the proposals.

Review the exposure draft on the AcSB's website.

Updated IASB work plan — Analysis (July 2021)

Jul 23, 2021

On July 23, 2021, the International Accounting Standards Board (IASB) updated its work plan following its July 2021 meeting.

Below is an analysis of all changes made to the work plan since our last analysis on June 28, 2021.

Standard-setting projects

Maintenance projects

Research projects

Other projects

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

Webinar: Proposals in Exposure Draft Management Commentary

Jul 21, 2021

On July 21, 2021, the International Accounting Standards Board (IASB) released a recording of the Exposure Draft Management Commentary webinar it held on July 13, 2021.

The webinar provides an overview of the Board’s proposals for a new comprehensive framework for preparing management commentary and includes questions from the audience.

Listen to the recording on the IASB's website.

Correction list for hyphenation

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