The graphs consist of a blueprint illustrating the participants in the financial reporting process; a flow chart showing a simplified version of the blueprint; and a segment chart outlining the reporting requirements for domestic issuers, foreign private issuers, and private companies.

The proposed rule would “refocus the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client at any time during an audit or professional engagement period.”

The working drafts address the following topics:

• Gaming entities’ accounting for management contract revenues, including costs reimbursed by managed properties (gaming)
• Contract modifications (telecommunications)

Comments on the working drafts are due by July 2, 2018.

For more information, see the revenue recognition page on the AICPA’s Web site.

Summary of main aspects of the Conceptual Framework

The 2018 Conceptual Framework is structured into an introductory explanation on the status and purpose of the Conceptual Framework, eight chapters, and a glossary:

Review our Global IAS Plus page for a summary of the key content of each chapter.

The Conceptual Framework does not have a stated effective date and the Board will start using it immediately.

References to the Conceptual Framework

Together with the revised Conceptual Framework, the Board has also issued Amendments to References to the Conceptual Framework in IFRS Standards. The document contains amendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not all amendments, however update those pronouncements with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework. Some pronouncements are only updated to indicate which version of the framework they are referencing to (the IASC framework adopted by the Board in 2001, the IASB framework of 2010, or the new revised framework of 2018) or to indicate that definitions in the standard have not been updated with the new definitions developed in the revised Conceptual Framework.

The amendments, where they actually are updates, are effective for annual periods beginning on or after January 1, 2020.

Additional information

• Press release (includes a three minute introductory video)
• Feedback statement
• One page factsheet on the new framework

The Board also announced that on April 18, 2018, there will be two live web presentations to introduce the revised Conceptual Framework. Please click for more information and registration on the Board's website.

The summary includes an overview of the due process activities they carried out in support of changes made to Part I of the Handbook last year.

Review the summary on the AcSB's website.

Background

Applying IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, an entity changes an accounting policy only if the change is required by an IFRS standard or results in improving the usefulness of information provided to users of its financial statements. However, a common reason why an entity voluntarily changes an accounting policy is to reflect non-authoritative explanatory material included in agenda decisions published by the IFRS Interpretations Committee.

To facilitate voluntary changes in accounting policy that result from an agenda decision, the Board intends to amend IAS 8 to lower the impracticability threshold for retrospective application of such changes.

Suggested changes

The changes proposed in ED/2018/1 Accounting Policy Changes (Proposed amendments to IAS 8) are focused on a cost benefit analysis:

• If an entity changes an accounting method as a result of an agenda decision by the IFRS Interpretations Committee, it does a cost-benefit assessment: If the entity's cost of determining the period-specific effects or the cumulative effect of the change exceeds the expected benefits to users of the financial statements, the new accounting policy need not be applied retrospectively.
• In addition, the Board proposes to include corresponding application guidance for the cost-benefit assessment in the standard.

Effective date

The exposure draft does not contain a proposed effective date, which the Board intends to decide on after the exposure.

Additional information

Review the press release and the exposure draft on the Board's website.

Below is an analysis of all changes made to the work plan since our last analysis on February 23, 2018.

Standard-setting project

• Conceptual Framework — The revised framework is to be expected next week.

Maintenance projects

• Accounting policies and accounting estimates (amendments to IAS 8) — After discussion at the March IASB meeting, the next milestone has changed from "exposure draft feedback" to "decide project direction". No date has been given.
• Accounting policy changes (amendments to IAS 8) — the work plan states "March 2018" (unchanged entry) and a separate communication confirms that an exposure draft will be published on March 27, 2018.
• Definition of a business (amendments to IFRS 3) — An IFRS amendment is expected in June 2018 (previously set to Q2 2018).
• Disclosure initiative — Definition of material (amendments to IAS 1 and IAS 8) — this project has been changed from "standard-setting" to "maintenance". Exposure draft feedback is still expected in April 2018.
• Disclosure initiative — Targeted standards-level review of disclosures — newly added to the work plan. The Board will decide project direction in June 2018.
• Improvements to IFRS 8 Operating Segments (amendments to IFRS 8 and IAS 34) — The Board discussed this topic at its March meeting. A feedback statement is now expected in H2 2018.

Research projects

• Business combinations under common control — A discussion paper is expected in H1 2019.
• Disclosure initiative — Principles of disclosure — After this topic was discussed at the March IASB meeting, the next milestone on the work plan was changed from "decide project direction" to "discuss remaining issues" in June 2018.
• Discount rates — Research summary is expected in June 2018.
• Financial instruments with characteristics of equity — A discussion paper is expected in June 2018.
• Post-implementation review of IFRS 13 Fair Value Measurement — After a discussion at its March meeting, the IASB added an expected date of H2 2018 for its feedback statement.
• Share-based payment — Research summary is expected in June 2018.

Other projects

• IFRS Taxonomy Update—2017 Annual Improvements — The final update was removed from the IASB’s work plan, as the 2018 IFRS Taxonomy was issued on March 16, 2018.
• IFRS Taxonomy Update — Common Practice (IFRS 13) — A proposed updated is expected in June 2018.
• IFRS Taxonomy Update — Prepayment features with negative compensation (amendments to IFRS 9) — This was removed from the IASB’s work plan, as the Update was published on March 16, 2018.

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

The report notes the following discussions:

• Value and effectiveness of the Board's approach to effects analysis — Council members advised how the IFRS Foundation could improve the effectiveness of its Effect Analysis work.
• Effectiveness of the Board’s current conference strategy — Council members noted that conferences are one tool the Foundation can use to support its goals, but discussed other less-costly ways to achieve the Foundation's objectives.
• Academic liaison strategy — Council members considered and discussed research, strategic ideas, recognition, and other objectives.
• 2018 review of the ASAF — Council members discussed the dividing views on two key questions: (1) Should ASAF be formally incorporated into the IFRS Foundation’s Constitution? and (2) Should consultation with ASAF be a mandatory due process step in the Due Process Handbook?
• Progress on the Foundation’s Emerging Economies engagement — Council members received an update and encouraged the Foundation to continue to expand their engagement in emerging economies.
• Board’s proposed social media strategy — Council members encouraged a "push only" media strategy rather than a (more extensive) two-way social media debate.

The full meeting summary and podcast related to the council’s February meeting are available on the Board's website.

Among the new appointments to the AcSOC is Shelley Brown, FCPA, FCA, ICD.D, Deloitte LLP. She has been appointed as a member for three-year terms ending on March 31, 2021.

Also, Jean-Luc Ostiguy, CPA, CA, Retired Partner, Deloitte LLP, has been appointed to the PSAB as a member for three-year terms ending on March 31, 2021.

Review the complete list on the AcSOC's website.

The 2018 taxonomy reflects accounting standards issued during the past year as well as other corrections and improvements to the 2017 taxonomy.

Review the press release on the FASB’s Web site.