The IASB completed redeliberations of the May 2015 Exposure Drafts in March 2017 and expects to publish the revised Conceptual Framework in the second half of 2017.

Review the press release and the decision summary on the IASB's website.

The publication of the Practice Statement and the Exposure Draft, Definition of Materiality will be postponed until after the sweep issues have been discussed by the Board.

The Exposure Draft proposes minor amendments to IAS 1, Presentation of Financial Statements and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

Review the press release on the IASB's website.

The article notes that there are important lessons for companies and their directors and officers from this SEC enforcement, including:

• Recognize Auditor’s Responsibilities Relating to Executive Compensation Disclosure under AS 18: Executive compensation is not a matter for internal audit alone. Auditing Standard No. 18 requires auditors to perform specific procedures to obtain an understanding of the company’s financial relationships and transactions with its executive officers, including with respect to compensation.
• Carefully Prepare Responses to D&O Questionnaires
• The Determination of a “Perk” May Require Analysis of the Facts and Circumstances
• Remember that the CEO and CFO Certifications in Form 10-K Also Cover the Executive Compensation Disclosures in the Proxy Statement
• Maintain Internal Control Procedures and Compliance Relating to Compensation and Expenses

Review the article on the Harvard Law School Forum's website.

The AcSB stated that it is taking a phased approach to adding non-authoritative material issued by the IASB to the Handbook.

CPA Canada Standards and Guidance Collection is available to members on knotia.ca.

The notice highlights the fact that, because of amendments to Canadian generally accepted auditing standards (the GAAS) in the “General Assurance and Auditing” section of “Other Canadian Standards” of the CPA Canada Handbook - Assurance, a report by the auditor filed in the form contained respectively in Appendix B-1, B-2 or B-3 of NI 81-102 (each, the Form Contained in NI 81-102) will not comply with Canadian GAAS for a report by the auditor dated on or after June 30, 2017.

Thus, the Participating Jurisdictions are publishing the notice to announce that they expect a report by the auditor dated on or after June 30, 2017 to comply with Canadian GAAS instead of the Form Contained in NI 81-102.

Some Participating Jurisdictions will issue a blanket order by June 30, 2017 to address the amendments to Canadian GAAS with regard to the current requirements in securities legislation.

Review the press release and the notice on the CSA's website.

The proposed amendments are intended to address concerns raised by stakeholders about the certification and certain information requirements in the Report. The proposed amendments follow others steps taken by CSA staff in summer and fall 2016 to address these concerns, including providing relief from certain information requirements and issuing revised guidance on preparing and filing the Report.

Comments should be submitted in writing by September 6, 2017.

Review the press release on the CSA's website and the proposed amendments on the OSC's website.

In this podcast, Sue provides an overview of implementation and maintenance activities discussed at the May Board meeting – including the IFRIC Interpretation on IAS 12, Income Taxes and an upcoming amendment to IAS 28, Investments in Associates and Joint Ventures. She also talks about the ongoing Post-implementation Review of IFRS 13, the fair value measurement Standard.

Darrel provides an overview of IFRS 17, which was issued in May, before Sue summarises some of the other activity during the month – including the activities during the Trustees meeting in Tokyo, Japan, and a new agreement the IFRS Foundation has signed with the World Bank.

Listen to the podcast on the IASB's website.

Content of IFRC 23

Scope

The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.

Issues and consensus

Whether tax treatments should be considered collectively

An entity is required to use judgement to determine whether each tax treatment should be considered independently or whether some tax treatments should be considered together. The decision should be based on which approach provides better predictions of the resolution of the uncertainty.

Assumptions for taxation authorities' examinations

An entity is to assume that a taxation authority with the right to examine any amounts reported to it will examine those amounts and will have full knowledge of all relevant information when doing so.

Determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates

An entity has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treatments, that it used or plans to use in its income tax filing.

• If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included in its income tax filings.
• If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions of the resolution of the uncertainty.

Effect of changes in facts and circumstances

An entity has to reassess its judgments and estimates if facts and circumstances change.

Disclosures

The interpretation does not contain any new disclosure requirements. Instead it highlights existing disclosure requirements in IAS 1 and IAS 12.

Effective date and transition

An entity applies IFRIC 23 for annual reporting periods beginning on or after January 1, 2019. Earlier application is permitted.

The requirements are applied by recognizing the cumulative effect of initially applying them in retained earnings, or in other appropriate components of equity, at the start of the reporting period in which an entity first applies them, without adjusting comparative information. Full retrospective application is permitted, if an entity can do so without using hindsight.

Review the press release on the IASB's website.

The new convention will also strengthen provisions to resolve treaty disputes, including through mandatory binding arbitration, thereby reducing double taxation and increasing tax certainty.

The first modifications to bilateral tax treaties are expected to enter into effect in early 2018.

Review the press release and the convention on the OECD's website.

Financial statement preparers told FASB that they had difficulties applying hedge accounting and that their risk management techniques are not aligned with the accounting under the current standard.

FASB Chairman Russell Golden said in a news release that the new standard will create better alignment between companies’ risk management activities and the accounting rules. The standard will better reflect the economic results of hedging in the financial statements and will simplify hedge accounting treatment.

After FASB approves the standard on the written ballot, it is expected to be issued in mid-August.

Review the press release on the Journal of Accountancy's website.