For a variety of reasons and based on analysis of several approaches to disclosure, expect increasing stakeholder demands are expected for more transparent and higher quality ESG reporting.

Read the full blog on the NACD's website.

Below is an analysis of all changes that were made to the work plan since our last analysis on October 1, 2019.

Stan­dard-set­ting projects

• Primary Financial Statements — Exposure draft is expected in December 2019 (previously fourth quarter of 2019).

Main­te­nance projects

• 2019 Comprehensive Review of the IFRS for SMEs Standard — the request for information is now expected in the first quarter of 2020 (previously fourth quarter of 2019)
• Accounting Policies and Accounting Estimates — dis­cus­sions on the project direction happened in October 2019 (previously fourth quarter of 2019).
• Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) — An IFRS amendment is expect in the first half of 2020.

Research projects

• Dynamic Risk Management — core model will occur in December 2019 (previously fourth quarter of 2019).
• Financial Instruments With Characteristics of Equity — decision on the project’s direction will occur in the first quarter of 2020 (pre­vi­ously fourth quarter of 2019).
• Pensions Benefits That Depend on Asset Returns — Research review is expected in December 2019 (previously fourth quarter of 2019).
• Post-Implementation Review of IFRS 10, IFRS 11 and IFRS 12 — This project is now under research (previously listed under maintenance projects).
• Provisions — Research review is expected in January 2020 (previously fourth quarter of 2019).
• Subsidiaries That Are SMEs — Research review is expected in January 2020 (previously fourth quarter of 2019).

Other projects

• IFRS Taxonomy Update — Interest Rate Benchmark Reform (Amend­ments to IFRS 9, IAS 39 and IFRS 7) —a proposed IFRS Taxonomy Update was issued in October 2019. Feedback update is expected in December 2019.

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

In his speech, he also highlights on the types of information increasingly used by investors that are currently outside the audit, including alternative performance measures, or what I will call in this speech Non-GAAP financial measures, key performance indicators (KPIs), XBRL, and sustainability disclosure. Finally, it helps to start conversations among investors, audit firms, and other stakeholders about relevance and possible changes that will help prevent auditors from becoming the weavers of the 21st century.

Review the full speech on the PCAOB's website.

The proliferation of cyber breaches can be attributed to several factors, primarily that more companies are using more computer systems for more tasks.

Review the full article on Audit Analytics' website.

The paper Standard Precision and Aggressive Financial Reporting—The Influence of Incentive Horizon will be presented. Here's a copy of the abstract:

The extant literature on standard precision suggests that financial statement preparers are less likely to make aggressive financial reporting decisions under less precise, principles-based accounting standards as compared to under more precise, rules-based accounting standards. We extend this line of research by examining how the incentive horizon of financial statement preparers influences earnings management behavior. Consistent with prior literature, we find evidence that more precise standards lead to more income-increasing earnings management behavior than do less precise standards when the incentive horizon is short-term in nature. However, when the incentive horizon is long-term, more precise standards are associated with financial reporting decisions that reduce current income relative to less precise standards. Importantly, the findings demonstrate that the effects of standard precision are changed by the incentive time horizon, and the market implications of standard precision cannot be fully understood when precision is studied without considering the incentives of decision makers.

As companies prepare for the 2020 proxy season and engage with shareholders, directors should understand the current state of ESG risk reporting in public filings.

Review the full blog on the NACD BoardTalk's website.

The Climate Guidance is designed to provide additional “how to” assistance to companies to disclose material climate-related information in mainstream corporate reports. The guidance complements the CDSB Framework for reporting environmental and climate change information (CDSB Framework), and aligns with other global standards, recommendations and metrics, such as the Recommendations of the Task Force on Climate-Related Disclosures (TCFD), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), CDP, and others.

The Climate Guidance, the first one in a series of supplementary guides planned for the users of the CDSB Framework, seeks to address the gap in reporting quality by providing up-to-date guidance focused on the disclosure of material non-financial information in the mainstream report.

Review the press release and download the guidance on the CDSB's website.

Stablecoins, which have many of the features of earlier cryptocurrencies but seek to stabilize the price of the "coin" by linking its value to that of a pool of assets, have the potential to contribute to the development of more efficient global payment arrangements.

The report lays out initial recommendations for both private sector stablecoin developers and public sector authorities to address the challenges and risks. Finally, the report suggests that authorities could develop road maps for improving the efficiency and lowering the cost of payments and financial services.

Review the press release and report on the BIS' website.

At this meeting, the FASB discussed (1) the effective dates of its standards on credit losses, hedging, leases, and insurance for private companies, not-for-profit organizations, and small public companies and (2) multiple-layer hedging.

Effective-date considerations

The Board affirmed its decision to stagger effective dates for major standards and to amend the effective dates of its standards on credit losses, hedging, leases, and insurance to give implementation relief to certain types of entities. The Board directed its staff to draft a final Accounting Standards Update (ASU) for a vote by written ballot.

Review the press release and tentative Board decisions on the FASB’s website and Deloitte's related journal entry.

Hedging — last-of-layer method

The Board discussed multiple-layer and fair value hedge basis adjustment issues and directed its staff to draft a proposed ASU for external review.

Review the tentative Board decisions on the FASB’s website and Deloitte's related journal entry.

The proposed update includes elements to reflect the new disclosure requirements introduced by the amendments to IFRS 9, IAS 39 and IFRS 7, issued by the Board on September 26, 2019.

Review the press release and proposed update on the IASB’s website.