June 2023

Hyperinflationary economies - updated CAQ watch list available

Jun 23, 2023

On June 23, 2023, the International Practices Task Force (IPTF) of the Center for Audit Quality (CAQ) has issued a discussion document, Monitoring Inflation in Certain Countries. The discussion document addresses the IPTF’s “framework for compiling inflation data to assist registrants in monitoring inflation statistics in connection with their determination of the inflationary status of countries in which they have operations.” The document notes that Argentina, Ethiopia, Haiti, Iran, Lebanon, South Sudan, Sudan, Suriname, Turkey, Venezuela, and Zimbabwe have three-year cumulative inflation rates exceeding 100 percent.

While it monitors the status of highly inflationary countries for the purposes of applying US GAAP, its criteria for identifying such countries are similar to those for identifying “hyperinflationary economies” under IAS 29.

Re­view the discussion document on the CAQ Website.

IASB Chair discusses the role of financial reporting in uncertain times

Jun 26, 2023

On June 26, 2023, at the IFRS Foundation Conference, Andreas Barckow, Chair of the International Accounting Standards Board (IASB) explained how the IASB is working help to stakeholders address the uncertainties they are experiencing.

Mr Barckow noted that the IFRS Foundation is fully aware of the current backdrop to companies’ operations and the uncertainties that seem to increase everywhere. And he stated that when conditions change, the need for information you can rely on increases. Useful and trustworthy information enables informed decisions. He gave examples how the IASB is trying to serve the public interest by helping companies and investors by provide or receive better information for better decisions.

Re­view the speech on the IFRS website.

IASB publishes request for information on the post-implementation review of IFRS 15

Jun 29, 2023

On June 29, 2023, the International Accounting Standards Board (IASB) has issued a request for information (RFI) seeking comments from stakeholders to identify whether the requirements in IFRS 15 Revenue from Contracts with Customers provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

IFRS 15 specifies how and when an IFRS reporter will recognize revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single, principles based five-step model to be applied to all contracts with customers.

In the post-implementation review of the standard the IASB wants to assess:

  • whether there are fundamental questions (fatal flaws) about the clarity and suitability of the core objectives or principles in the new requirements;
  • whether the benefits to users of financial statements of the information arising from applying the new requirements are significantly lower than expected; and
  • whether the costs of applying the new requirements and auditing and enforcing their application are significantly greater than expected.

Comments on the RFI are requested by October 27, 2023.

Review the press release and the Request for Information on the IFRS Foundation website.

IFRS Interpretations Committee holds June 2023 meeting

Jun 12, 2023

On June 12, 2023, the IFRS Interpretations Committee (IFRIC) met on June 6-7, 2023. The IFRIC discussed two new items, one follow-up discussion on a previous matter and gave input on two IASB projects.

  • New item: IFRS 9 Financial Instruments—Application of the “Own Use” Exemption
  • New item: IAS 27 Separate Financial Statements—Merger between a Parent and Its Subsidiary in the Separate Financial Statements
  • Follow-up discussion on previous matter: IAS 21 The Effects of Changes in Foreign Exchange Rates and IAS 29 Financial Reporting in Hyperinflationary Economies—Consolidation of a Non-hyperinflationary Subsidiary by a Hyperinflationary Parent
  • Input on IASB project: Climate-related Risks in the Financial Statements
  • Input on IASB project: Business Combinations under Common Control (BCUCCs)

Re­view the meeting highlights on the IFRS website.

IOSCO consults on goodwill

Jun 23, 2023

On June 23, 2023, the International Organization of Securities Commissions (IOSCO) has published a consultation on goodwill, seeking inputs from market participants to identify good practices for addressing the risk of unrecognized impairment on accumulated goodwill balances and related disclosures arising from business combinations.

IOSCO has been watching goodwill accounting closely in the past. In February 2021, IOSCO called on IASB and FASB to collaborate on goodwill accounting and in November 2022 IOSCO released a statement emphasising issuers’ need for fair, transparent and timely disclosure about impacts of economic uncertainty. In that statement, IOSCO noted that, as economic circumstances evolve and change, it is critical for management to carefully assess the latest economic environment where issuers operate and reflect it in the assumptions used in the accounting estimates, including goodwill impairment tests.

The consultation is open for comments until September 20, 2023. The feedback received will be used to formulate a set of recommendations for regulators, auditors, issuers and those charged with governance. They will also underpin IOSCO’s engagement with standard setters, including the IASB, on improvements to accounting, reporting and disclosure requirements related to goodwill.

Review the consultation and press release on the IOSCO website.

Updated IASB and ISSB work plan — Analysis (May 2023)

Jun 01, 2023

Following the IASB's and ISSB's May 2023 meetings, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meetings and other developments since the work plan was last revised in April 2023. The updates to the work plan include a new policy that all next project milestones are presented with an expected date, at a minimum the year when the next milestone is expected to be reached.

Below is an analysis of all changes made to the work plan since our last analysis on May 2, 2023.

Standard-setting projects

Maintenance projects

Research projects

Strategy and Governance projects

Other projects

The above is a faithful comparison of the IASB and ISSB work plan on May 2, 2023, and June 1, 2023.

For access to the current work plan at any time, please click here.

Updated IASB and ISSB work plan — Analysis (June 2023)

Jun 27, 2023

Following the IASB's June 2023 meeting, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meeting and other developments since the work plan was last revised in May 2023. The ISSB did not hold a technical meeting this month, but launched its first two standards, IFRS S1 and IFRS S2.

Below is an analysis of all changes made to the work plan since our last analysis on June 1, 2023.

Standard-setting projects

Maintenance projects

Research projects

Other projects

The above is a faithful comparison of the IASB and ISSB work plan on June 1, 2023 and June 27, 2023.

For access to the current work plan at any time, please click here.

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