In the first phase of the project, the European Commission asked EFRAG to collect quantitative data on the current holdings of equity instruments and their accounting treatment and investigate if entities expect that the new accounting requirements will affect their decisions in relation to investment in equity instruments. EFRAG reported its findings from this first phase in January 2018.

In the second phase of the project, the Commission asked EFRAG to provide advice on whether and how the requirements in IFRS 9 on accounting for holdings of equity instruments could be improved. As part of its due process, EFRAG has now published the discussion paper to gather constituents' views on recycling and impairment of equity instruments designated at fair value through other comprehensive income.

EFRAG has not included a preliminary view on the issues explored. Rather, the paper analyses the relevance of recycling in the context of a long-term investment business model and presents arguments on the conceptual relationship between recycling gains and losses on derecognition and impairment. The paper considers how the application problems identified with IAS 39's impairment model for available-for-sale equity instruments could be addressed. It illustrates an impairment model and a revaluation model but does not express a preliminary view as to which, if either, of these two models is preferable.

​Comments on the discussion paper are expected by May 25, 2018.

Review the discussion paper on the EFRAG's website.

The proposed update would specifically clarify the accounting for implementation costs related to a cloud computing arrangement that is a service contract. It also would provide more disclosures of the implementation costs for internal-use software and cloud computing arrangements.

Review the press release and the exposure draft on the FASBs website.

The GAO says that the biggest constraint that the SEC faces in reviewing the adequacy of climate-related disclosure is its dependence on self-reporting.

The GAO also found that, not surprisingly, companies think they’re doing enough in terms of climate-related risk disclosure. But while some investor groups push for more, the GAO says there’s not a clear consensus on how big a priority this should be.

Review the full report on the GAO's website.

In the survey, 96% of respondents agree that bringing financial and non-financial information together provides a more forward-looking, longer-term view of performance.

Executives globally agree on the increasing benefit of understanding and communicating the value creation potential of their organizations to build relationships with stakeholders and improve integrated thinking and strategic decision-making.

But the latest Purpose Beyond Profit: The Value of Value – Board-level Insights survey shows executives lack the management and reporting information to understand and interpret the future drivers of their business.

Review the report on the IIRC's website.

The proposed investment will serve primarily to establish the Canadian Centre for Cyber Security and the National Cybercrime Coordination Unit, which will serve as pillars of the federal government’s soon to be announced National Cyber Security Strategy.

Review the full article on Miller Thomson's website.

Corporate success often falters due to sub-optimal Strategic Resource Allocation (SRA), which includes the allocation of capital, marketing and R&D across existing businesses, which will be covered herein, but also acquisitions, debt repayment, dividends and buybacks.

Review the full article on FEI Daily's website.

In this year’s budget, the federal government outlines how it intends to support economic growth, promote sustainability, and foster a thriving, inclusive society for all Canadians in a time of rapid change and ongoing uncertainty.

What does the federal budget mean for Canada and Canadian businesses?

We discuss the following three areas:

• Focusing investment and resources to drive competitive advantage
• Accelerating the flow of people, goods and ideas
• Disrupting the status quo in education and skills development

A video is also available where Albert Baker, Canadian Tax partner and Global Tax Policy Leader, offers his insights on the corporate tax measures contained in the 2018-2019 federal budget, reviewing both domestic and international tax proposals. And David Mason, Canadian Tax partner, discusses changes affecting private companies and their shareholders.

For more information, review the publication and a video.

Effective January 1, 2018, revenue for all companies following IFRSs and US GAAP will be recognized under a new accounting standard – IFRS 15, Revenue from Contracts with Customers or the FASB's equivalent revenue standard, ASU 2014-09 Revenue from Contracts with Customers (Topic 606).

Much of the discussion so far has centered around it should be applied by preparers, not on how it should be analysed by analysts and investors. The paper now published by the CFA Institute examines the top 10 questions investors should consider as they review year-end 2017 results and consider first quarter 2018 reporting as it relates to the adoption of the new standard.

Review the full paper on the CFA Institute's website.

Compared to the development of financial reporting, the evolution of non-financial reporting has been rapid and fragmented. There are many regulations, reporting frameworks, guidance and tools which influence the corporate reporting process on environmental, social and governance issues (ESG). The resulting reporting landscape has been described in recent reports by the Business and Sustainable Development Commission1 and ACCA2, as complex, overwhelming and there have been calls for more harmonization and alignment.

The report is intended to help business navigate global sustainability reporting trends.

Review the report on the CDSB's website.

Some of the key features of the budget plan were:

• Following the proposals announced last year, the budget has introduced legislation to address the earning of passive income inside a private corporation.
• From a gender equality perspective, the budget announces the introduction of a new “use it or lose it” Employment Insurance parental sharing benefit which will enable two-parent families that share parental leave to receive an additional five weeks of leave.
• The government is introducing significant new investments to better support Canadian innovators.
• The government continues to introduce measures to close loopholes that result in unfair tax advantages for some at the expense of others.
• Of note, the budget does not include further measures to address recommendations from the Organisation for Economic Co-operation and Development’s base erosion and profit shifting project, particularly with respect to interest deductibility and anti-hybrid measures.

A summary of the economic and tax highlights contained in the budget is outlined in our Canadian tax alert.