Across all aspects of American life, it is most often men who set policy, allocate resources, lead companies, shape markets, and determine whose stories get told. Meanwhile, what gains have been made typically haven’t extended to all women. The women historically the most marginalized in this country — including women of color, poor women, and lesbian and trans women — are still the most likely to be trapped in minimum-wage jobs, the least likely to hold managerial roles, and the most likely to face sexual harassment and gender-based violence.

Review the full article on the Harvard Business Review's website.

The senators want companies to provide country-specific information on their income, assets, number of employees, and taxes paid.

FASB is in the midst of reviewing tax disclosure requirements, and the letter was in response to a revised exposure draft on the proposed Accounting Standards Update to Income Taxes (Topic 740).

Review the letter on US Senate's website and a summary on Accounting Today's website.

Background

Interbank offered rates (IBORs) are interest reference rates, such as LIBOR, EURIBOR and TIBOR, that represent the cost of obtaining unsecured funding, in a particular combination of currency and maturity and in a particular interbank term lending market. Recent market developments have brought into question the long-term viability of those benchmarks.

The amendments published today deal with issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark with an alternative interest rate and address the implications for specific hedge accounting requirements in IFRS 9, Financial Instruments and IAS 39, Financial Instruments: Recognition and Measurement, which require forward-looking analysis. (IAS 39 is amended as well as IFRS 9 because entities have an accounting policy choice when first applying IFRS 9, which allows them to continue to apply the hedge accounting requirements of IAS 39. ) There are also amendments to IFRS 7, Financial Instruments: Disclosures regarding additional disclosures around uncertainty arising from the interest rate benchmark reform.

Changes

The changes in Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)

• modify specific hedge accounting requirements so that entities would apply those hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform;
• are mandatory for all hedging relationships that are directly affected by the interest rate benchmark reform;
• are not intended to provide relief from any other consequences arising from interest rate benchmark reform (if a hedging relationship no longer meets the requirements for hedge accounting for reasons other than those specified by the amendments, discontinuation of hedge accounting is required); and
• require specific disclosures about the extent to which the entities' hedging relationships are affected by the amendments.

Effective date

The amendments are be effective for annual periods beginning on or after January 1, 2020 and must be applied retrospectively. Early application is permitted.

Additional information

• IASB press release
• IASB project summary

In September 2019, the IASB began discussions on IBOR reform and the effects on financial reporting - Phase 2. The second phase of the project deals with issues that might affect financial reporting when an existing interest rate benchmark is actually replaced.

Review the full article on the Harvard Business Review's website.

To help corporate directors and senior executives navigate these complex challenges, NACD featured two mainstage events focused on geopolitical risk and international trade at its 2019 Global Board Leaders’ Summit.

The sessions surfaced the following insights to attendees:

1. Cybersecurity remains top of mind
2. Today’s era of uncertainty will have long-lasting effects
3. Ambiguity creates room for new opportunities
4. Emerging markets will play a critical role
5. Democracy and capitalism are still wedded
6. Prepare for a continuous learning journey
7. Corporate leaders must avoid complacency

Review the article on the NACD BoardTalk's website.

The report considers how companies can answer investors’ questions about how a company generates cash and how it intends to use that cash. It provides practical guidance on how companies can give more information and context around its cash disclosures, beyond those in the cash flow statement including business model disclosures, capital allocation frameworks, reverse factoring arrangements and many others. It also includes several practical examples.

Review the report from the FRC's website.

In many cases, leaders either judge too quickly, making snap decisions that prove to be ill advised, or wait interminably to “gather more facts,” only for the critical moment to slip away.

Review the full article on the Harvard Business Review's website.

The AcSB encouraged the IASB to move quickly to finalize IFRS 17, as the standard is expected to benefit the global capital markets. A common global adoption date of IFRS 17 is critical to the success of transitioning to the new insurance contract standard.

Review the press release and letter on the AcSB's website.

The publication maps the better alignment project participants’ standards and frameworks against the seven principles for effective disclosure, the 11 recommended disclosures and 50 illustrative example metrics detailed in the recommendations published by the Task Force on Climate-related Financial Disclosure (TCFD) in June 2017. It also documents the commonalities and differences between the participants within the parameters of the TCFD recommendations’ example metrics.

Participants of the CRD project on better alignment are the Carbon Disclosure Project (CDP), the Climate Disclosure Standards Board (CDSB), the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC), and the Sustainability Accounting Standards Board (SASB). Additional members of the CRD are the Financial Accounting Standards Board (FASB, observer), the International Accounting Standards Board (IASB), and the International Organization for Standardization (ISO).

The mapping in the report shows strong alignment between the participants’ frameworks and standards and the TCFD recommendations, specifically:

• The TCFD’s seven ‘Principles for Effective Disclosures’ are harmonious and complementary with those of the participants’ frameworks and standards, with the mapping showing no sources of conflict.
• The participants are well-aligned with the TCFD’s 11 recommended disclosures, each of which is comprehensively covered by the frameworks and standards.
• Overall, 80% of the TCFD’s 50 illustrative metrics are fully or reasonably covered by CDP, GRI and SASB indicators.
• There are high levels of alignment between CDP, GRI and SASB for the TCFD’s illustrative example metrics, with 70% of the TCFD’s 50 metrics showing no substantive difference between the participants’ indicators. For the remaining 15 indicators, substantive differences are limited.

Review the full report and more information on the CRD's website.

Mr. Carney says it can help to amplify the impacts of climate policies and accelerate the transition to a lower carbon economy. He calls for a step change in reporting and risk management. And he argues for an optimization of sustainable finance into everyday mainstream financial decision-making.

Review the press release and full speech on the Bank of England's website.