June 2019

AcSB Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

Jun 07, 2019

On June 7, 2019, the Ac­count­ing Stan­dards Board (AcSB) issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by August 20, 2019.

The issues included in this cycle to date are minor amendments to (i) IFRS 1, First-time Adoption of International Financial Reporting Standards; IFRS 9, Financial Instruments; (iii) IFRS 16 — Leases; and IAS 41, Agriculture

For fur­ther de­tails, re­fer to the Exposure Draft on the AcSB’s web­site.

AcSB Exposure Draft – Reference to the Conceptual Framework (Proposed amendments to IFRS 3, Business Combinations)

Jun 14, 2019

On June 14, 2019, the Ac­count­ing Stan­dards Board (AcSB) is­sued its Ex­po­sure Draft that cor­re­sponds to the IASB’s Ex­po­sure Draft on this topic. Stake­hold­ers are en­cour­aged to sub­mit their com­ments by September 27, 2019.

The IASB proposes to amend IFRS 3 to replace the reference to The Framework for

the Preparation and Presentation of Financial Statements with the revised Conceptual Framework for Financial Reporting in a way that avoid conflicts with other IFRS® Standards

For fur­ther de­tails, re­fer to the Ex­po­sure Draft on the AcSB’s web­site.

AcSB In Brief: A plain and simple overview of the AcSB’s ongoing work in supporting the implementation of the new insurance standard

Jun 21, 2019

On June 21, 2019, the Accounting Standards Board (AcSB) issued an In Brief document that provides a plain and simple overview of the AcSB’s ongoing work in supporting the implementation of the new insurance standard.

For fur­ther de­tails, re­fer to the In Brief doc­u­ment on the AcSB’s web­site.

AcSB Invites IASB’s Board Advisor on Insurance to visit Canada and attend a Panel Discussion on IFRS 17

Jun 06, 2019

On June 6, 2019, the Ac­count­ing Stan­dards Board (AcSB) announced that, on July 18, 2019, it will host a panel discussion featuring Darrel Scott, IASB Board Member and Advisor on the IASB’s Insurance project, and other experts from the financial reporting community. The AcSB is sponsoring this activity as part of its ongoing work to ensure Canadians are supported during the implementation phase of new standards, and also to ensure Canadian views are heard.

The Panel Discussion is expected to take place on July 18, 2019 at 1:30 pm – 4:00 pm ET at the CPA Canada Office. For further details, refer to the notice on the AcSB’s website.

CPA Canada Viewpoints: Impact of IFRS 15, Revenue from Contracts with Customers (Mining)

Jun 10, 2019

On June 10, 2019, CPA Canada is­sued a Viewpoints publication entitled “Impact of IFRS 15, Revenue from Contracts with Customers (Mining). Developed jointly by Chartered Professional Accountants of Canada (CPA Canada) and the Prospectors and Developers Association of Canada (PDAC), this paper addresses some of the practical challenges in applying IFRS 15 in the mining industry.

Items covered include:

  • Understanding the arrangement and identifying customer(s): How should a mining entity evaluate who its customer is?
  • Shipping and refining obligations: How should obligations associated with shipping a commodity to a customer, or providing refining services, be treated?
  • Transfer of control over commodities: How does a mining entity evaluate transfer of control for a commodity and the resulting revenue recognition?
  • Provisional pricing: How should a mining entity address the unique pricing issues associated with provisionally priced contracts?

Read the publication on the CPA Canada web­site.

Deloitte Global comments on the IASB’s proposal on interest rate benchmark reform

Jun 17, 2019

On June 17, 2019, De­loitte Global issued its comment letter in response to the IASB’s exposure draft, ‘Interest Rate Benchmark Reform — Proposed amendments to IFRS 9 and IAS 39’

Deloitte Global supports the IASB’s response in proposing amendments to both IFRS 9 and IAS 39 that deal with the immediate need of addressing the effect of the uncertainty arising from changes in benchmark interest rates on the “highly probable” requirement for cash flow hedges and the designated risk for cash flow and fair value hedges and suggest the IASB work on finalizing these amendments and begin the work on its second phase of amendments concurrently.

In addition, Deloitte Global believes there is a lack of clarity in (1) the application to retrospective hedge effectiveness, (2) the measurement of hedge ineffectiveness, and (3) whether the amounts deferred in the cash flow hedge reserve should be reclassified to profit or loss when the entity ceases applying the amendment.

Please download the full comment letter here.

FASB appoints three new EITF members

Jun 12, 2019

On June 12, 2019, the Financial Accounting Standards Board (FASB) has ap­pointed Liesl Nebel, Jeremy Perler, and Matthew Schechter as EITF members.

The terms of all three new members are ef­fec­tive im­me­di­ately.

For more in­for­ma­tion, see the press release on the FASB’s Web site.

FASB begins second study on segment reporting

Jun 25, 2019

On June 25, 2019, the Fi­nan­cial Ac­count­ing Stan­dards Board (FASB) announced that it will be conducting its second study on potential improvements to the segment disclosure and reconciliation requirements.

Specifically, the FASB is requesting feedback from public companies on “the issues preparers may face in applying different potential improvements for the existing segment disclosure requirements.”

For more information, see the press release on the FASB’s Web site.

Forthcoming IASB publication: Exposure Draft—Amendments to IFRS 17, Insurance Contracts

Jun 20, 2019

On June 20, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) announced that it expects to publish the Exposure Draft “Amendments to IFRS 17, Insurance Contracts” on June 26, 2019.

Re­view the announcement on the IASB’s web­site.

IASB Chair discusses strengthening the relevance of financial reporting

Jun 20, 2019

On June 20, 2019, the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB) made avail­able a speech by IASB Chair Hans Hoogervorst at the IFRS Foundation Conference in London, in which he discussed the Board’s plans to maintain and strengthen the relevance of financial reporting in primary financial statements and management commentary.

Mr Hoogervorst began with an overview of the primary financial statements (PFS) project and provided comments related to subtotals (definition of operating profits and profit before financing and tax), labeling non-GAAP measurement as ‘management performance measures’, improvements to disaggregation, the disclosure of ‘unusual’ items of income or expenses, and the impact the PFS proposals will have to the quality and usefulness of the income statement.

Next, Mr Hoogervorst commented on the importance of management commentary (a topic he also covered in similar speech at the Climate-Related Financial Reporting Conference in April 2019) to provide broader financial information, such as the impact of intangibles. He mentioned the need to update the Management Commentary Practice Statement to accommodate new advances made in the environmental, sustainability and governance reporting space.

For more information, see the transcript of his speech on the IASB’s website.

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