Considerations that both the borrowers and lenders need to take include:

• The most apparent effect of the new IFRS 16 will be on a borrower’s financial ratios in their loan agreements. Any ratios that utilize these terms, including asset turnover ratios, debt-to-equity ratios, current ratios and EBTIDA metrics, all which are common financial covenants in loan agreements, will also be impacted and should be tested in light of IFRS 16 treatment.
• Borrowers should consider whether they will be able to meet their financial covenants as currently contemplated and they should consider working with their lenders to amend loan agreements to deal with the implementation of IFRS 16.
• Lenders will need to consider if their current lending documents adequately deal with the changes that IFRS 16 will bring.

Review the full article on Cassels Brock Lawyers' website.

The topics covered during the meeting were the following (numbers in brackets are references to the corresponding paragraphs of the summary):

• Financial instruments with characteristics of equity (1–6): The IASB staff provided an education session for ASAF members on the Discussion Paper Financial Instruments with Characteristics of Equity issued in June 2018.
• Business combinations under common control (7–25): ASAF members discussed (1) discuss the results of a joint investor survey conducted by the HKICPA and OIC as well as (2) measurement approaches developed by the staff for transactions within the scope of the Board’s BCUCC project.
• Better communication (26–41): ASAF members gave feedback (1) on moving the primary financial statements project from the research agenda to the standard-setting agenda and (2) on the AcSB’s draft framework for reporting performance measures.
• Property, Plant and Equipment – Proceeds before intended use (42–48): ASAF members were asked for advice on the possible ways forward regarding ED and the project in general.
• Goodwill and impairment (49–68): ASAF members (1) offered their views about disclosures that the Board tentatively decided to consider and additional possible disclosures the staff are considering to improve disclosure requirements for business combinations, goodwill and impairment and (2) were asked whether they have any suggestions or ideas for other possible disclosures that can provide better and timely information without imposing costs that exceed the benefits.
• Better communication (continued) (69–77): The ASAF members provided advice on (1) the Board's process for developing and drafting guidance for the Board regarding disclosure objectives and requirements and (2) which standards the Board should select for review.
• Accounting for pensions (78–91): ASAF members discussed a proposal that the IASB consider hybrid pension plans either as another dimension of the research pipeline project or a project in itself.
• Project updates and agenda planning (92–95): ASAF members discussed the proposed agenda for the October 2018 ASAF meeting.

A full summary of the meeting is available on the Board's website.

Modern slavery, which can take a variety of forms, includes any work or service performed by a person involuntarily and under the threat of any penalty.

The notice provides an overview of recent key regulatory or government initiatives and highlights investors’ growing interest in the social responsibility of issuers. It also describes some of the requirements that may compel issuers to provide information on modern slavery in their continuous disclosure documents and presents the results of an issue-oriented review by AMF staff of the disclosure practices of certain issuers.

Review the press release and notice on the AMF's website.

An abundance of positive economic evidence – from strong consumer demand to favorable monetary policy – helped sustain optimism among some CFOs in the second quarter of 2018. But two issues – trade and talent – seem to be sounding an ominous drum beat and sending mixed signals in the Q2 2018 edition of Global CFO Signals.

On the positive front, many of the CFOs in the eight surveys included in this quarterly round-up, voice upbeat outlooks about their organizations’ financial prospects, growth metrics, and, countries’ economic outlooks. But it is the threat of a trade war that has many CFOs on edge. Compounding matters is the escalation of long-running concerns over talent. The fear is that these twin concerns – trade and talent – could have a chilling effect on business investment. Whether these concerns are enough to dampen the current economic momentum, remains to be seen.

How does CFO sentiment break down?

Read the 2018 Q2 Global CFO Signals to learn more.

Discussion points included:

• Restructured Code Rollout
• Emerging Issues and Outreach Committee (EIOC)
• Non-assurance Services
• Fees
• Professional Skepticism
• Implementation of EU Audit Legislation
• IAASB-IESBA Coordination
• ISAE 3000 (Revised) Alignment
• Technology
• eCode

Review the highlights and the podcast on the IESBA's website.

Securities regulators have responded. The CSA recently undertook a review of climate change disclosure made by reporting issuers, and published its findings on April 5, 2018 in CSA Staff Notice 51-354 Report on Climate Change Related Disclosure Project. The CSA found the following:

• Disclosure is lacking
• Most industries are underrepresented
• Investors are dissatisfied with the disclosure

As a result of this review, the CSA has indicated that it intends to consider mandating new disclosure requirements for non-venture issuers in relation to climate change risks, and will continue to assess whether investors require additional types of information, such as disclosure of certain categories of greenhouse gas emissions, to make investment and voting decisions.

Review the full article on Norton Rose Fulbright's website.

The new rule significantly expands upon the exemptions available when an Alberta issuer seeks to distribute securities to investors outside of Canada. It also provides a prospectus exemption for distributions made under the offering memorandum exemption within Canada. The exemptions are conditional on material compliance with the disclosure requirements of the purchaser’s jurisdiction. The rule also contains prospectus exemptions for the resale of securities outside of Canada if the issuer is not a reporting issuer in any jurisdiction within Canada.

Review the press release and new rule on the ASC's website.

This webcast explains Section 5 of the Discussion Paper Financial Instruments with Characteristics of Equity on compound instruments and redemption.

It covers the Board’s preferred approach to classification of compound instruments, such as convertible bonds, and obligations to redeem own equity instruments, for example a written put option on own shares.

Future webcasts in the series will cover:

• presentation of equity instruments; and
• presentation of financial liabilities

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

This we­b­casts dis­cusses how the Board’s preferred approach would classify own equity derivatives (except for those that include an obligation for a company to take back its own shares, which will be explained in a future FICE webcast).

Fu­ture we­b­casts in the se­ries will cover:

• 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.

The letter disagrees with the proposals to amend IAS 8 to lower the impracticability threshold for retrospective application of voluntary changes in accounting policy resulting from agenda decisions published by the IFRS^® Interpretations Committee (agenda decisions).

The AcSB expresses concerns that amending IAS 8 as proposed would essentially elevate the authority of agenda decisions without the extent of due process expected for such an outcome.

The AcSB also notes that the proposals could lead to unintended consequences in jurisdictions, including Canada, where entities are expected to apply accounting policies in line with explanatory material in agenda decisions and, therefore, such changes in accounting policy are not voluntary in practice.

The AcSB strongly encourages the IASB to consider another mechanism, such as a change in the process around agenda decisions, to achieve its objectives for this project.

Review the AcSB letter posted on the IASB's website.