The webcast, which was hosted by Mary Tokar, IASB Board Member, and Michael Stewart, Technical Director, provides an overview of the proposals, including the two proposed assessment models.

For more information, view the webcast on the IASB’s website.

The topics discussed at the meeting included:

• IASB and Interpretations Committee Update: Members discussed the support of consistent application of IFRSs and the agenda consultation.
• Materiality: Members discussed a proposed ‘four-step approach’ for making materiality judgements when preparing a financial report:
  • Step 1 — identifying the primary users and their information needs;
  • Step 2 — making a materiality judgement, considering quantitative factors as well as qualitative entity-specific and environmental factors;
  • Step 3 — organising material information within the financial report; and
  • Step 4 — stepping back and reviewing the financial report as a whole.
• Statement of Cash Flows: Topics discussed were the classification of cash flows (positively defining cash flows from operating activities, presenting cash outflows for acquiring property, plant and equipment as cash flows from operating activities, presentation of cash flows related to financing liabilities, cash received from customers and presentation of cash flows related to tax), cash equivalents and the management of liquid resources, reconciliation of operating activities, and direct or indirect method.
• Primary Financial Statements: Members discussed the structure and content of the statement of profit or loss and OCI as regards line items and subtotals as well as alternative performance measures, the structure and content of the statement of financial position, and the interaction between items reported in different primary financial statements,
• Financial instruments with characteristics of equity: Focus of the discussion were shares redeemable at fair value and cumulative preference shares.

Review the full meeting summary on the IASB's website.

The framework A professional judgement framework for financial reporting decision making - An international guide for preparers, auditors, audit committees, regulators and standard setters across business and not-for-profit sectors identifies core principles and provides a structured process to guide decision makers through how to make, assess and document significant judgements. It targets significant judgements across narrative and financial reporting including accounting treatment, materiality and disclosures.

The framework is designed to fit within the context provided by applicable accounting standards. It also provides a useful training guide for students or those new to decision making.

Access the framework and a corresponding press release on the ICAS' Web site.

Held at Microsoft's headquarters in New York City, the event marks the first meeting between blockchain specialists from Deloitte, Ernst & Young, KPMG and PwC. According to ConsenSys head of blockchain accounting, Griffin Anderson, the series of roundtable discussions will center on how the accounting industry could work together to develop new blockchain standards.

While organizers say the accounting consortium effort is in its early stages, the concept itself has proven to be a popular way for established players to work with the potentially disruptive technology.

Review the full article.

The pro­posed amend­ments pro­vide:

• clearer ap­pli­ca­tion guid­ance to help dis­tin­guish be­tween a busi­ness and a group of as­sets when ap­ply­ing IFRS 3; and
• clar­i­fi­ca­tion on how a com­pany should ac­count for pre­vi­ously held in­ter­est in a busi­ness, if ac­quir­ing con­trol, or joint con­trol, of that busi­ness.

The pro­posed amended ap­pli­ca­tion guid­ance on the de­f­i­n­i­tion of a busi­ness in IFRS 3 arises from the Board’s Post-im­ple­men­ta­tion Re­view (PIR) process, which is con­ducted on each Stan­dard and ma­jor amend­ment ap­prox­i­mately two years af­ter their ef­fec­tive dates. The IFRS 3 PIR shows gen­eral sup­port for the ac­count­ing re­quire­ments in the Stan­dard but iden­ti­fies some ar­eas where fur­ther re­search will be un­der­taken. The pro­posed amend­ment to ac­count­ing for pre­vi­ously held in­ter­ests was de­vel­oped through the IFRS In­ter­pre­ta­tions Com­mit­tee.

Ad­di­tional in­for­ma­tion

Please click for:

• Ac­cess to the ex­po­sure draft on the AcSB web­site
• Our pro­ject page on IFRS 3 — De­f­i­n­i­tion of a busi­ness
• Our pro­ject page on IFRS 3/IFRS 11 — Re­mea­sure­ment of pre­vi­ously held in­ter­ests

The webcast, which features IASB member Sue Lloyd, Technical Director Kumar Dasgupta, and Practice Fellow Uni Choi, covers the following topics:

• “when multiple scenarios are relevant and the concept of non-linearity;
• consistency of scenarios;
• probability-weighted assessment of significant increase in credit risk; and
• approaches to incorporating forward-looking scenarios”

Review the webcast on the IASB’s website.

Changes to the work plan include:Changes to the work plan include:

Research projects

• Disclosure initiative: Principles of Disclosure: Updated to indicate that the discussion paper is expected in October/November 2016.

Standard-setting and related projects (major projects)

• Disclosure initiative: Materiality Practice Statement: Updated to indicate that a decision on the direction of the project is now expected within 3 months; previously it was within 6 months
• Amendments to IFRS 4: Applying IFRS 9 with IFRS 4: Updated to indicate that the final amendments are now expected within 3 months (September)

Implementation projects (narrow scope amendments)

• Changes in Accounting Policies and Estimates: Updated to indicate that an exposure draft is now expected within 6 months
• Definition of a Business and Accounting for Previously Held Interests: Updated to indicate that the project is currently in the public consultation phase with a decision on the direction of the project to occur after 6 months
• Annual improvements 2014–2016: Updated to indicate that the project is currently in the drafting phase and the amendments are expected within 6 months
• Annual improvements 2015–2017: Updated to indicate that the project is currently in the drafting phase and an exposure draft is expected within 6 months.

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

The study finds that as the incentives and institutions that influence accounting outcomes vary among firms and among jurisdictions the goal of international financial reporting should be increased comparability rather than complete comparability. Improving the quality of financial reporting would therefore not only require thinking about the technical requirements that govern it, but also the incentives of those who prepare accounts and the surrounding institutions – auditing, corporate governance, enforcement, the legal system, the educational system, and so on.

The issues discussed in the report imply that public policy debates should focus on the incentives and institutions that support financial reporting quality as well as on accounting standards. They also imply that countries considering adopting IFRS need to look at other institutions as well if they are to obtain the full benefits of adoption.

Review the full study on the ICAEW's website.

The following topics were discussed:

• 2015 Agenda Consultation
• IASB and IFRS Foundation Update
• IFRS Foundation Review of Structure and Effectiveness
• Members' communications
• Technological Disruption of Financial Reporting
• Timeline for developing Standards—The Leases Project—A look back

The full report on the council’s February meeting is available on the IASB's Web site.

Discussion points included:

• Structure of the Code
• Safeguards
• Professional Skepticism
• Non-Compliance or Suspected Non-Compliance with Laws and Regulations (NOCLAR)
• Long Association
• Review of Part C of the Code – Phase I

Review the highlights on the IESBA's Web site.