News

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Accountants Association Says Federal Regulators Should Establish and Implement Common Principles Related to Cybersecurity Risk Management

Jan 20, 2017

On January 20, 2017, the Association of International Certified Professional Accountants (the Association), a new organization composed of the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA), provided comments on three Federal agencies’ advance notice of proposed rulemaking (ANPR) regarding enhanced cyber risk management standards for large and interconnected entities and their service providers.

In the letter, Susan S. Coffey, CPA, CGMA, the Association’s executive vice president for public practice, noted that it while it is well understood that it is impossible to guarantee the prevention of a cybersecurity breach, this framework “will enable companies to demonstrate and communicate due diligence and due care in their management of cybersecurity risk in a consistent manner, serving the needs of multiple stakeholders with a single approach.”

Review the press release and the comment letter on the AICPA's website.

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FYI Article – Take Stock of These Effective Dates

Jan 20, 2017

On January 20, 2017, the Accounting Standards Board (AcSB) released an article as a reminder of the effective dates of recently issued accounting standards and amendments.

A separate summary is provided for each type of reporting entity, as follows:

The articles includes:

  • Effective Dates – International Financial Reporting Standards
  • Effective Dates – Private Enterprises
  • Effective Dates – Private Sector Not-for-Profit Organizations

Review the article on the AcSB's website.

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Updated IASB work plan — Analysis

Jan 19, 2017

On January 19, 2017, following its January 2017 meeting, the International Accounting Standards Board (IASB) updated its work plan. In particular, the new standard on insurance (IFRS 17) is now expected in May and no longer in March since the fatal flaw review revealed some small issues that the staff wants to lay before the Board before finalizing the draft. Also, following yesterday's decision to take a project on IFRS 9 and prepayment options onto the agenda, the IASB now announces that it expects to publish an exposure draft on the issue in April.

Below is an analysis of all changes made to the work plan since the last update in December 2016.

Research projects

Standard-setting and related projects

  • Disclosure initiative: Materiality (practice statement) — the expected publication of the practice statement has moved forward and is now given as "within 6 months".
  • Insurance contracts — the expected issuance of the IFRS has been delayed to May since the fatal flaw review revealed some small issues that the staff wants to lay before the Board before finalizing the draft.

Nar­row-scope amend­ments

  • Improvements to IFRS 8 resulting from the post-implementation review of IFRS 8 — the expected publication of an exposure draft is now expected in April.
  • Symmetric prepayment options — following yesterday's decision to take a related project onto the agenda, the IASB now announces that it expects to publish an exposure draft on the issue in April.
  • Annual improvements to IFRSs 2015-2017 — following the publication of an exposure draft of proposed amendments earlier this month, the project is now marked as being in consultation phase with a decision on the project direction expected "within 6 months".

Post-implementation reviews

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

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CSA Report the Findings of their Review of the Disclosure of Cyber Security Risks and Incidents

Jan 19, 2017

On January 19, 2017, staff from the British Columbia Securities Commission, the Ontario Securities Commission and the Autorité des marchés financiers (staff) published Multilateral Staff Notice 51-347 Disclosure of cyber security risks and incidents.

The notice reports the findings of a review announced by the Canadian Securities Administrators (CSA) in Staff Notice 11-332 Cyber Security (Staff Notice 11-332) and provides disclosure expectations for reporting issuers based on those findings.

Review the press release and the Staff Notice on the CSA's website.

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IASB decides on project on limited IFRS 9 amendments

Jan 18, 2017

On January 18, 2017, the International Accounting Standards Board (IASB) voted to add a limited scope project on IFRS 9 "Financial Instruments" to its agenda.

The project will look into whether a narrow-scope exception could be made to allow instruments with symmetric prepayment options to qualify for amortized cost or fair value through other comprehensive income measurement because they would otherwise fail the SPPI condition.

Review a summary of the agenda paper released by our Global firm.

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IVSC publishes International Valuation Standards 2017

Jan 18, 2017

On January 18, 2017, the International Valuation Standards Council (IVSC) issued the suite of new International Valuation Standards (IVSs) that make up the 2017 IVS. They are the result of exposure drafts published in April and June 2016.

IVS 2017 consist of five general standards and six asset standards. The general standards offer guidance for all valuation assignments including terms of a valuation engagement, bases of value, valuation approaches and methods, and reporting. The asset standards include requirements related to specific types of assets.

Review the press release on the IVSC's website.

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European Union Image

ESMA publishes 20th enforcement decisions report

Jan 15, 2017

On January 5, 2017, the European Securities and Markets Authority (ESMA) published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 7, IFRS 10, IFRS 12, IAS 1, IAS 8, IAS 12, IAS 16, IAS 17, IAS 32, IAS 36, IAS 37, IAS 38, IAS 39, and IFRIC 4.

The European national enforcers of financial information monitor and review financial statements published by issuers with securities traded on a regulated European market and who prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.

ESMA has developed a confidential database of enforcement decisions taken by individual European enforcers as a source of information to foster appropriate application of IFRS.

The publication of enforcement decisions is designed to inform market participants about which accounting treatments European national enforcers may consider as complying with IFRS, i.e. whether the treatments are considered as being within the accepted range of those permitted by IFRS. ESMA considers the publication of the decisions, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from March 2014 to June 2016, include:

Standard Topic
IFRS 7 — Financial Instruments: Disclosures Qualitative disclosures of the risks arising from financial instruments
IFRS 12 — Disclosure of Interests in Other Entities Disclosure of significant judgements and assumptions in determining the existence of significant influence
IAS 36 — Impairment of Assets Disclosures relating to determination of value in use
IAS 39 — Financial Instruments: Recognition and Measurement Recognition of losses on loans upon conversion to shares
IAS 1 — Presentation of Financial Statements Presentation of equal and opposite gains and losses in the statement of profit or loss and other comprehensive income for the period
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
IAS 38 — Intangible Assets		 Reclassification of capitalised milestone payments by a pharmaceutical company to the statement of profit or loss
IFRS 10 — Consolidated Financial Statements Legal requirements that prevent a shareholder from exercising its rights
IFRS 10 — Consolidated Financial Statements Determining whether an entity is an investment entity
IAS 16 — Property, Plant and Equipment Depreciation of vessels in the oil and gas industry
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
IAS 36 — Impairment of Assets		 Application of value in use methodology in impairment testing
IAS 36 — Impairment of Assets
IAS 37 — Provisions, Contingent Liabilities and Contingent Assets		 Recognition of onerous contract provisions
IAS 36 — Impairment of Assets Identification of cash-generating units
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
IAS 17 — Leases
IAS 32 — Financial Instruments: Presentation
IFRIC 4 — Determining whether an Arrangement contains a Lease		 Purchase of a car fleet with an agreed buy-back agreement
IAS 12 — Income taxes Recognition of deferred tax assets for unused tax losses

Click for access to the full report (link to ESMA website). The ESMA has also published an updated overview of all enforcement decisions ever published.

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Putting IFRS 16 into practice, practical implementation advices from IASB

Jan 13, 2017

In January 2017, the International Accounting Standards Board (IASB) published an article featuring four IASB members discussing the messages they have heard from stakeholders about IFRS 16 implementation over the last year and advice to companies implementing the new standard.

  • IASB Vice-Chair Sue Lloyd discusses transition options and benefits;
  • IASB Member Gary Kabureck explains early planning and practical steps;
  • IASB Member Darrel Scott expands on judgements and discount rates; and
  • IASB Member Stephen Cooper examines investor expectations and lease disclosures between now and 2019.

Review the article on the IASB's website.

FASB (US Financial Accounting Standards Board) (lt blue) Image

Should the FASB have a role in sustainability disclosures?

Jan 13, 2017

In January 2017, the Financial Accounting Standards Board (FASB) released the newest FASB Outlook newsletter, which includes a contribution by FASB member Marc Siegel. The article is a reaction to questions raised as to whether the FASB should promulgate standards requiring corporate disclosures about sustainability or environmental, social, and governance (ESG) issues.

In the article, Mr. Siegel concludes that the answer to the question of whether FASB should engage in sustainability and/or ESG issues "is not binary". He notes that the Board engages where those issues are within the boundaries of financial reporting set forth by the FASB's Conceptual Framework, but that not all sustainability or ESG information is within the boundaries.

Review the article on the FASB's website.

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IASB publishes proposals for amendments under its annual improvements project (cycle 2015-2017)

Jan 12, 2017

On January 12, 2017, the International Accounting Standards Board (IASB) published an exposure draft "Annual Improvements to IFRS Standards 2015–2017 Cycle". It contains proposed amendments to three International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by April 12, 2017.

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The ED proposes the following amendments:

Standard Subject of proposed amendment
IAS 12 Income Taxes

To clarify that the requirements in the existing paragraph 52B (to recognise the income tax consequences of dividends where the transactions or events that generated distributable profits are recognised) apply to all income tax consequences of dividends by moving the paragraph away from existing paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits
IAS 23 Borrowing Costs

To clarify that when an asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that asset as part of the funds that it has borrowed generally

IAS 28 Investments in Associates and Joint Ventures

To clarify that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied

ED/2017/1 Annual Improvements to IFRS Standards 2015–2017 Cycle does not contain proposed effective dates for the proposed amendments to IAS 12 and IAS 23 as the intention is to decide on these after the exposure period. However, it is proposed that the amendments to IAS 28 should be effective for annual periods beginning on or after January 1, 2018 to align their effective date with the effective date of IFRS 9.

As for the proposed amendments to IAS 28, the ED contains a dissenting opinion as one Board member disagrees amending IAS 28 as proposed without also specifying the types of interests that an entity accounts for using the equity method and the types of interests that an entity accounts for applying IFRS 9.

Review the following additional information:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.