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News

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IFRS - Meeting Image

Report on the June 2016 IFRS Advisory Council meeting

Jul 06, 2016

On July 6, 2016, the International Accounting Standards Board (IASB) released a summary of the IFRS Advisory Council meeting held on June 13–14, 2016. Highlights of the meeting will be thorough discussions of the review of structure and effectiveness of the IFRS Foundation and of the future of corporate reporting.

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.

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

IESBA Meeting Highlights June 27 - 29, 2016

Jul 05, 2016

On July 5, 2016, the International Ethics Standards Board for Accountants (IESBA) released the highlights of its June 27 - 29, 2016 meeting.

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.

IFRS - ICAS Image
United Kingdom Image

UK unlikely to depart from IFRSs if it intends to remain a global player

Jul 01, 2016

On July 1, 2016, the Institute of Chartered Accountants of Scotland (ICAS) released some additional responses to the 20 questions it posed on June 24, 2016 about the impact of 'Brexit' on business and trade, including on accounting and audit.

Responses released on July 1, 2016 include thoughts on the following question:

In areas of accountancy, what new policies will follow? Will [the UK] be inclined or persuaded to depart from International Financial Reporting Standards (IFRS) and re-establish UK Generally Accepted Accounting Practice (UK GAAP)?

The ICAS staff argue that if the UK intends to remain a global player, "then one would expect that it would need to require listed entities to comply with global standards in the area of financial reporting". They state:

IFRS is now seen as the global benchmark in terms of financial reporting standards and therefore their use, or the use of standards substantively based on the IFRS framework (adopted standards), would appear to be the primary option.

However, the ICAS staff points out that following its exit, the UK would have the ability to sadopt IFRS standards as issued by the IASB without them firstly having to be adopted by the EU. They also explain that the UK could establish its own adoption mechanism, possibly via the Financial Reporting Council (FRC).

Please click for the following information on the ICAS' Web site:

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IFRS  - Speech Image

'Better communication' to be the theme of the second term of the IASB Chairman

Jun 30, 2016

On June 30, 2016, Hans Hoogervorst, International Accounting Standards Board Chairman, at the IFRS Foundation's annual European Conference held in Zurich, outlined plans to prioritize improvements to the communications effectiveness of financial statements.

Mr Hoogervorst said:

Valuable information gets drowned out by ‘tick the box’ disclosures and voluminous, but poorly organized and presented, financial data. For the investor, it is often difficult to see the woods through the multitude of information trees. We will take a fresh look at how financial information is presented, how it is grouped together, and in what form it is made available.

"Better Communication" will bring together a number of work streams, including:

  • Primary Financial Statements—improving the organisation and structure of the ‘face of financial statements’ (statements of financial position, financial performance and cash flows);
  • Disclosure Initiative—improving the quality and usefulness of financial disclosures through amendments;
  • Financial Instruments with the Characteristics of Equity (FICE)—clarifying the definition, presentation and disclosure requirements for such instruments;
  • Digital reporting—further developing the IFRS Taxonomy to ensure it meets electronic reporting needs and remains fit for purpose; and
  • Non-financial reporting—assessing strategic challenges and exploring any potential future role that the Board may play in this area.

"Better Communication" as a theme for the Board's work responds to much of the feedback received through the 2015 Agenda Consultation, and should deliver material improvements to users’ ability to make economic decisions from financial information.

Mr Hoogervorst also announced that the Board will be playing a more active role in supporting jurisdictions in the implementation of new and existing IFRS Standards.

Read the full speech on the IASB's Web site.

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IASB webcast on lessee measurement now available

Jun 30, 2016

On June 30, 2016, the International Accounting Standards Board (IASB) released a webcast on lessee measurement, as part of its webcast series on IFRS 16 implementation.

In the webcast, the IASB staff discuss:

  • measurement of lease liabilities
    • lease term
    • variable lease payments
    • in-substance fixed lease payments
    • discount rate
  • measurement of right-of-use assets

The new webcast and all previous webcasts of the series are available on the IFRS 16 implementation page on the IASB’s website.

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IASB addresses definition of a business and accounting for previously held interests

Jun 28, 2016

On June 28, 2016, the International Accounting Standards Board (IASB) published for public consultation proposed amendments to IFRS 3, Business Combinations and IFRS 11, Joint Arrangements. It clarifies both the definition of a business and how to account for previously held interests.

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.

Further information about the Exposure Draft—Definition of a Business and Accounting for Previously Held Interests (Proposed Amendments to IFRS 3 and IFRS 11)—can be accessed on the IASB's Web site. The deadline for comments is October 31, 2016.

Additional information

Please click for:

IFRS - IASB Image

IASB issues 'Investor Perspectives' on disclosure effectiveness

Jun 27, 2016

On June 27, 2016, the International Accounting Standards Board (IASB) issued the latest issue of "Investor Perspectives." In this edition, IASB board member Pat Finnegan discusses improving disclosure effectiveness.

This issue of Investor Perspective features:

  • An examination of capitalization tables;
  • A closer look at the IASB's projects on Conceptual Framework and financial instruments with characteristics of equity;
  • A solicitation for ideas on "more efficient and effective way for investors and lenders to obtain a comprehensive picture of the rights and obligations created by a company’s liability and equity claims"; and
  • Recent resources related to disclosure effectiveness.

For more information, see the June 2016 edition of the Investor Perspectives newsletter on the IASB’s website.

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EU referendum in the UK

Jun 24, 2016

On June 24, 2016, the British public have spoken and made clear that they see the UK’s interests best-served by leaving the European Union. Explore our insight papers to find out more about what this change can mean.

Over the coming months and years, there will be significant changes to the political landscape. In the short term, the government is likely to set up a cross-departmental task force in order to negotiate Britain’s exit from the EU.

To counteract the immediate negative shock to the economy, it is likely that a number of policy measures will be announced. The government could introduce some pro-business measures in an emergency budget, ease fiscal deficit cuts and temporarily suspend its fiscal rules and the Bank of England’s inflation target.

The medium-term impact on the economy is harder to assess and will depend largely on the pace and success of the government’s negotiations with the EU and on future access to the single market.

In the longer term, economic activity will be determined by a combination of the nature of the UK’s post-exit trade relationship with the EU and its ability to exploit its newfound freedom to forge individual trade deals with emerging markets outside the EU.

Review our Initial Response to the EU Referendum released by our UK firm: Explore the effects of Brexit on business and the economy.

Deloitte UK offers a website dedicated to the EU referendum and its result offering insight papers, perspectives and access to webinars on what this change can mean.

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IASB updates work plan

Jun 23, 2016

On June 23, 2016, the International Accounting Standards Board (IASB) released its updated work plan. As per this updated work plan the EDs on the definition of a business and on the remeasurement of previously held interests are expected to be released next week.

Changes to the work plan include:

Major projects

  • No changes made to major projects.

Im­ple­men­ta­tion projects

In addition, the work plan indicates that the exposure drafts on the definition of a business and on the remeasurement of previously held interests are expected to be released next week.

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

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Regulators call for improved non-GAAP financial measure disclosures

Jun 23, 2016

During the first half of 2016, we saw a renewed focus on non-Generally Accepted Accounting Principle (non-GAAP) financial measure disclosures by securities regulators on both sides of the border, as well as globally. In our CFO’s corner series, Alexia Donoghue from our National Securities group explores what this means for Canadian reporting issuers, and highlights what regulators in other jurisdictions are doing to address these non-GAAP financial measures.

Visit the CFO’s corner in Deloitte’s Centre for Financial Reporting to read this editorial as well as any previous articles that you may have missed.

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