News

All - AcSB Image

Stakeholder Survey in respect of the Draft Framework for Reporting Performance Measures – Enhancing the relevance of financial reporting

Jul 19, 2018

On July 19, 2018, the Ac­count­ing Stan­dards Board (AcSB) has is­sued a stakeholder survey requesting stakeholders to join the discussion and help improve financial and non-financial performance measures reported outside of financial statements.

The AcSB's new survey captures your feedback on the AcSB’s Draft Framework for Reporting Performance Measures and requests this information by September 17, 2018.

The AcSB’s target audience includes preparers, directors, users, practitioners, regulators, academics and standard setters.”

Here is a link to the survey on the AcSB's web­site.

 

IESBA (International Ethics Standards Board for Accountants) (lt gray) Image

Global Ethics Board Resets Expectations of Professional Accountants Regarding Inducements

Jul 19, 2018

On July 19, 2018, the In­ter­na­tional Ethics Stan­dards Board for Ac­coun­tants (IESBA) released new enhancements to its global ethics code which address more fully the responsibilities of professional accountants around the offering and accepting of inducements.

The revised standard sets out a comprehensive framework that more clearly delineates the boundaries of acceptable inducements, and guides the behavior and actions of professional accountants in business and in public practice in situations involving inducements.

Central to this framework is a new intent test that prohibits the offering or accepting of inducements where there is actual or perceived intent to improperly influence the behavior of the recipient or of another individual. The framework also:

  • Clarifies the meaning of an inducement;
  • Establishes a requirement to understand and comply with laws and regulations that prohibit the offering or accepting of inducements in certain circumstances, such as in relation to bribery and corruption;
  • Guides professional accountants in applying the enhanced conceptual framework underpinning the International Code of Ethics for Professional Accountants (including International Independence Standards) where there is no improper intent; and
  • Provides enhanced guidance on the offering and accepting of inducements by professional accountants’ immediate or close family members.

The revisions to the Code become effective June 2019, including consequential amendments to the independence provisions of the Code addressing gifts and hospitality. The changes constitute the last piece of the recently revised and restructured Code.

Re­view the press re­lease and the revised standard on the IESBA's web­site.

 

WBCSD (World Business Council for Sustainable Development) Image

Climate-related financial disclosure by oil and gas companies

Jul 19, 2018

On July 19, 2018, the World Busi­ness Coun­cil for Sus­tain­able De­vel­op­ment (WBCSD) has released a publication, ‘Climate-related financial disclosure by oil and gas companies: implementing the TCFD recommendations’.

The report provides an in-depth description of the current state of climate-related financial disclosure and effective disclosure practices among leading oil and gas companies.

It is available here on the WBCSD website.

IFRS - IASB Image

IASB releases second webcast on FICE DP

Jul 19, 2018

On July 19, 2018, the International Accounting Standards Board (IASB) has released its second webcast in a series of web pre­sen­ta­tions related to its Dis­cus­sion Paper, ‘Financial In­stru­ments with Char­ac­ter­is­tics of Equity’.

This webcasts discusses the Board’s preferred approach and clas­si­fi­ca­tion of non-de­riv­a­tive financial in­stru­ments.

Future webcasts in the series will cover:

  • Clas­si­fi­ca­tion of de­riv­a­tives on own equity.
  • Clas­si­fi­ca­tion of compound in­stru­ments and re­demp­tion oblig­a­tion arrange­ments.
  • Pre­sen­ta­tion of equity in­stru­ments.
  • Pre­sen­ta­tion of financial li­a­bil­i­ties.

For more in­for­ma­tion, see the press release on the IASB’s website and the webcast on the IFRS Foun­da­tion’s YouTube channel.

 

Securities - CSA Image

Canadian Securities Regulators Publish Final Amendments to the Report of Exempt Distribution

Jul 19, 2018

On July 19, 2018, the Cana­dian Se­cu­ri­ties Ad­min­is­tra­tors (CSA) published its final amendments to National Instrument 45-106 Prospectus Exemptions, which revise Form 45-106F1 Report of Exempt Distribution (the Report). The CSA also made a related change to Companion Policy 45-106CP Prospectus Exemptions.

Issuers and underwriters who rely on certain prospectus exemptions to distribute securities are required to file the Report within the prescribed timeframe. The amendments aim to provide greater clarity and flexibility regarding the certification requirement of the Report and streamline certain information requirements, while still providing regulators with the information necessary for oversight and policy development.

Provided all necessary ministerial approvals are obtained, the amendments will come into force on October 5, 2018.

Re­view the press re­lease on the CSA's web­site and the final amendments on the CSA mem­bers' web­site.

 

Securities - CSA Image

Canadian Securities Administrators highlight common deficiencies in issuers’ continuous disclosure

Jul 19, 2018

On July 19, 2018, the Canadian Securities Administrators (CSA) published Staff Notice 51-355 Continuous Disclosure Review Program Activities for the fiscal years ended March 31, 2018 and March 31, 2017, a biennial report that summarizes CSA staff’s ongoing review of reporting issuers’ (issuers’) continuous disclosure and highlights common deficiencies and best practices.

The CSA noted that it continues to see deficiencies in issuers’ use of non-GAAP financial measures, and this remains an area of focus for the CSA. It strongly encourages issuers to use this report as a guide to make improvements, as disclosure requirements are at the core of its investor protection regime.

Other areas where issuers can improve disclosures include, but are not limited to: fair value measurements and disclosures; forward looking information; discussions of issuers’ results of operations and significant projects in development; climate change disclosures; and mineral project disclosure. 

In fiscal 2018, 51 per cent (2017 – 43 per cent) of review outcomes required issuers to take action to improve and/or amend their disclosure, or resulted in the issuer being referred to enforcement, cease traded or placed on the default list.

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

 

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

FASB makes improvements to its leasing guidance

Jul 18, 2018

In July 2018, the Financial Accounting Standards Board (FASB) has issued Ac­count­ing Stan­dards Update (ASU) No. 2018-10, “Cod­i­fi­ca­tion Im­prove­ments to Topic 842, Leases.”

The ASU makes im­prove­ments to the fol­low­ing aspects of the guid­ance in the ASU:

  • Resid­ual value guar­an­tees.
  • Rate im­plicit in the lease.
  • Lessee’s re­assess­ment of lease clas­si­fi­ca­tion.
  • Lessor’s re­assess­ment of lease term and pur­chase option.
  • Vari­able lease pay­ments that depend on an index or a rate.
  • In­vest­ment tax credits.
  • Lease term and pur­chase option.
  • Tran­si­tion guid­ance related to amounts pre­vi­ously rec­og­nized in busi­ness com­bi­na­tions.
  • Certain tran­si­tion ad­just­ments.
  • Tran­si­tion guid­ance for leases pre­vi­ously clas­si­fied as capital leases under ASC 840.
  • Tran­si­tion guid­ance related to mod­i­fi­ca­tions to leases pre­vi­ously clas­si­fied as direct fi­nanc­ing or sales-type leases under ASC 840.
  • Tran­si­tion guid­ance related to sale-and-lease­back trans­ac­tions.
  • Im­pair­ment of net in­vest­ment in the lease.
  • Un­guar­an­teed resid­ual assets.
  • Effect of initial direct costs on rate im­plicit in the lease.
  • Failed sale-and-lease­back trans­ac­tions.

For more in­for­ma­tion, see the ASU on the FASB’s Web site.

 

All - Deloitte Image

Deloitte issues results of global IFRS insurance survey

Jul 18, 2018

On July 18, 2018, Deloitte has issued, 'Global IFRS Insurance Survey 2018: 2021 countdown underway — Insurers prepare for IFRS 17 im­ple­men­ta­tion', which aims to provide a com­pre­hen­sive view of insurers' reactions to the re­quire­ments in IFRS 17, as well as their per­cep­tions on the scale and com­plex­ity of this major reg­u­la­tory change, and the timelines sur­round­ing system im­ple­men­ta­tion necessary to achieve com­pli­ance.

Key findings of the survey include:

  • Just enough time to get ready
    Global insurers are cau­tiously confident that they will meet the im­ple­men­ta­tion date with 90 percent re­spond­ing that they believe they will be compliant by January 1, 2021. Of this total, 45 percent indicated strong con­fi­dence to finish on time, with health insurers being the more confident sub-group at 60 percent, and life insurers, with only 37 percent, being the more cautious sub-group. From a regional per­spec­tive, Europe is more confident than other regions.
  • Upgrading tech­nol­ogy is necessary
    87 percent of insurers believe their systems tech­nol­ogy will require upgrades to capture the new data and perform the cal­cu­la­tions required for com­pli­ance. Capturing data inputs was also cited as the largest tech­nol­ogy challenge.
  • Sig­nif­i­cant im­ple­men­ta­tion costs have been budgeted
    The majority of insurers have now set some ex­pec­ta­tions around budget, with results showing the expected spend to be sig­nif­i­cantly greater than ex­pec­ta­tions captured in 2013. 35 percent of insurers expect to spend more than EUR 50m to meet com­pli­ance, compared with only 7 percent five years ago.
  • Insurers are seeing more benefits vs. cost
    93 percent of global insurers feel that the benefits of adopting IFRS 17 will outweigh the cost of com­pli­ance. This is compared to only 21 percent in 2013.
  • Actuarial, accounting and col­lab­o­ra­tion skills will be in high demand
    Insurers cited col­lab­o­ra­tion skills as being equally as important as actuarial skills. Many of them said they would try to drive tighter in­te­gra­tion between finance, actuarial, and other de­part­ments. They also report having the greatest dif­fi­culty in finding actuarial and accounting expertise.

For more in­for­ma­tion, see the Global IFRS Insurance Survey 2018 and visit the survey page on Deloitte.​com.

 

IFRS - IASB Image

Monitoring Board approves new Chair of the IFRS Foundation Trustees

Jul 18, 2018

On July 18, 2018, the IFRS Foun­da­tion Mon­i­tor­ing Board has approved the ap­point­ment of Erkki Liikanen as the new Chair of the IFRS Foun­da­tion Trustees. Mr Liikanen will begin his initial three-year term in October 2018, when he will succeed Michel Prada.

Pre­vi­ously, Mr Liikanen has worked in various lead­er­ship positions which included serving as Governor of the Bank of Finland, Governor of the International Monetary Fund, and member of the Governing Council of the European Central Bank.

For more in­for­ma­tion, see the press release on the IASB’s website.

 

IFRS - IASB Image

IASB webcast on research and standard-setting

Jul 18, 2018

On July 18, 2018, the IASB has released a May 2018 webcast on YouTube that features IASB member Ann Tarca and IFRS Foun­da­tion Education Director Matt Tilling dis­cussing academic research and how academics can con­tribute to the work of the IASB.

The 18 minute video Research and Standard setting—How to con­tribute to the IASB's work can be accessed here.

 

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.