Updates regarding the im­ple­men­ta­tion projects are:

• Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts: Now indicates that a new Standard is expected within 6 months.

• Clarifications to IFRS 8 arising from the Post-implementation Review: The exposure draft is now expected within 6 months, previously it was within 3 months.

• Clarification of Classification and Measurement of Share-based Payment Transactions: The new Standard is now expected within 6 months, previously it was within 3 months.

• Clarifications to IFRS 15 Revenue from Contracts with Customers: Issues Emerging from TRG Discussions: Previously indicated that a new Standard was expected in the March/April 2016 timeframe; now it indicates that it is expected in April 2016.

• Classification of Liabilities: The new Standard is now in more than 6 months; previously it was expected within 6 months.

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

This webcast discusses the transition steps that a lessee is required to perform and includes highlights of available transition relief and the decisions that need to be made at each stage.

The webcast is available on the IFRS 16 implementation page on the IASB’s website.

The article features:

• Examples of how the amendments to IAS 1 in December 2014 helped preparers improve their financial reporting.
• The importance of identifying the primary users.
• An assessment of disclosure materiality.
• Discussion on material and immaterial errors.

The full article is available on the IASB’s website.

The report, prepared by Chair of the IFRS Advisory Council Joanna Perry, notes the following dis­cus­sions:

• IASB ac­tiv­i­ties — Members received a report of recent ac­tiv­i­ties and were congratulatory of the IASB bringing together implementation and education into one unit.
• Trustee ac­tiv­i­ties — Members received an updated on the January Trustees meeting and were presented with the IFRS Foundation Strategy approved by the Trustees.
• Post-implementation reviews strategy — Members discussed the primary objective of PIR and when a PIR would be necessary.
• Review of the structure and ef­fec­tive­ness of the IFRS Foun­da­tion — Members discussed governance aspects of the review.
• IFRS Foundation funding — The Council believed it is useful for members to have access to an Aide-Memoire and that there may be opportunities for additional funding from the public.
• Corporate reporting — Members discussed consultation documents from the Federation of European Accountants and the Financial Stability Board and the Carbon Tracker Initiative on the implications of climate change in financial and corporate reporting.
• Conceptual framework — Members provided advice related to the conceptual framework exposure draft.

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

The research report discovered that:

• “The objective of investors (valuation or stewardship) does matter.
• Investors are strongly anchored on the income statement.
• Investors have strong reservations about the representational faithfulness of bottom line figures.
• Regardless of its shortcomings, financial accounting information is a key input factor for investors' decision making.
• The quality of corporate governance, including audit, influences investors' assessment of the representational faithfulness.”

In addition, the research report noted that (1) different objectives for financial reporting need to be prioritised by standard setters; (2) income statements were considered more useful than the balance sheet; (3) standardised performance measures for the income statement need to be enhanced; and (4) "investors' perceptions of corporate governance significantly affect their views of representational faithfulness."

For more information, see the press release and report on the EFRAG’s website.

The CMA is intended to replace existing provincial and territorial securities legislation in Ontario, British Columbia, New Brunswick, Saskatchewan, Prince Edward Island and Yukon (Participating Jurisdictions). While the 50 comment letters on the Consultation Drafts in large part expressed support for the goal of harmonizing securities regulation in Canada and moving toward a single national regulator, many commenters expressed concern about the inadequacy of the consultation process given the proposed substantive changes to securities law in certain Participating Jurisdictions, notably Ontario.

Review the bulletin on Blakes' Website.

The ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts With Customers. The new leases standard represents a wholesale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond.

The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein. For all other entities, the ASU will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020), and interim periods thereafter. Early adoption will be permitted for all entities.

The leases project was part of a convergence effort between the IASB and FASB; however, the IASB’s counterpart standard, IFRS 16, contains notable differences from ASU 2016-02. For instance, the IASB’s standard has a single lessee accounting model while the FASB’s has a dual lessee accounting model. However, both standards require that assets and liabilities be recognized (with limited exceptions).

For more information, see the press release, FASB in Focus newsletter, ASU, cost-benefit analysis, and video discussion by FASB Vice-Chairman Jim Kroeker and Board members Tom Linsmeier and Hal Schroeder on the FASB’s Web site. In addition, don’t miss Deloitte US's Heads Up on the new standard, which will be available shortly.

The Conceptual Framework project is now in the analysis stage (previously in public consultation). The Disclosure initiative — principles of disclosure project is now in the drafting discussion paper stage (previously in analysis).

Updates regarding the im­ple­men­ta­tion projects are:

• Annual improvements 2014-2016 — currently in analysis stage (previously drafting exposure draft stage).

• Annual improvements 2015-2017 — exposure draft is no longer expected after six month, instead the Board will decide the direction of the project within the next six months.

• Applying IFRS 9 with IFRS 4 — currently in the analysis stage and the direction of the project will be determined within 3 months.

• Clarifications to IFRS 8 arising from the post-implementation review — exposure draft issuance date is narrowed to May 2016.

• Clarifications of classification and measurement of share-based payment transactions — Standard issuance date is narrowed to May 2016.

• Clarifications to IFRS 15: Issues emerging from TRG discussions — Standard issuance date is narrowed to March/April 2016.

• Definition of a business — exposure draft issuance date is narrowed to May 2016.

• Disclosure initiative — amendments to IAS 7 is no longer in the work plan since standard has been issued on 29 January 2016.

• Remeasurement of previously held interests — obtaining control or joint control in a joint operation that constitutes a business — exposure draft is narrowed to May 2016.

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

Focusing on the impairment element of the Standard, it also covers how the accounting for loan loss provisioning will change from an incurred to an expected loan loss model and gives an update on how the Standard relates to activity by other organizations such as banking regulators.

Watch the video on the IASB's Web site.

The IFRS Foundation is currently undertaking a review of its structure and effectiveness, while the Board is reviewing its Agenda for the next five years. These reviews are exploring possible changes to the composition and the size of the Board and its work in the coming years. In that context, Mr Mackintosh has proposed that he retire from the Board in 2016. The Trustees intend to discuss the review of structure and effectiveness in the coming months.

Review the press release on the IASB's Web site.