News

Canada Image

Blockchain not yet ready for prime time says Bank of Canada

May 25, 2017

On May 25, 2017, the Globe and Mail released an article on Project Jasper. This project has been a year long experiment by the Canadian central bank to investigate whether blockchain, or distributed ledger technology (DLT), could replace existing wholesale payments technology within that country's financial system. The verdict? Not yet.

For the moment, critical issues associated with privacy and scalability mean that the project won't form the basis of interbank payments for the moment. There are also regulatory and, it seems, cultural issues to deal with, before a decentralized system can replace a centralized one.

Read the article on the Globe and Mail's website.

IFRS - CMAC Image

Summary of the March 2017 CMAC meeting

May 24, 2017

On May 24, 2017, the International Accounting Standards Board (IASB) released a summary of the Capital Markets Advisory Committee (CMAC) meeting which was held in London on March 16, 2017.

The topics discussed at the meeting included:

  • Primary financial statements
  • Rate-regulated activities
  • Clarifications to IFRS 8 arising from the post-implementation review
  • IFRS 3, Business Combinations: Definition of a business
  • Disclosure Initiative — outreach planning for the Disclosure Initiative — Principles of Disclosure discussion paper and case studies
  • Education session — insurance contracts

Review the meeting page and the meeting summary on the IASB's website.

Canada Image

Webcast XBRL for IFRS Reporting Issuers

May 24, 2017

On May 24, 2017, XBRL Canada hosted a webinar on the SEC requirements with regard to foreign direct issuers using IFRS.

Speakers included Matt Slavin and Walter Hamscher of the US Securities and Exchange Commission, who provided a great overview of the requirements. John Turner, CEO of XBRL International added useful information about developments with regard to inline XBRL (iXBRL) which is being adopted around the world, and being considered or planned by the SEC and ESMA, among others. Inline XBRL allows filers to prepare one financial statement easily readable by humans in the traditional format but containing XBRL tags for computer and analytical use.

Listen to the recording.

IFRS - Deloitte Image

We comment on seven IFRS Interpretations Committee tentative agenda decisions

May 23, 2017

Our Global firm has published comment letters on IFRS Interpretations Committee tentative agenda decisions on IAS 12, IAS 19, IAS 32, IAS 33, IAS 41, IFRS 1, and IFRS 9, as published in the March 2017 IFRIC Update.

More information about the issues is set out below:

Issue Agenda decision supported? More information
IAS 12 Income Taxes — Interest and penalties related to income taxes Yes.
IAS 19 Employee Benefits — Discount rate in a country that has adopted another country’s currency Yes, however we suggest several amendments that we think could help make the tentative agenda decision clearer.
IAS 32 Financial Instruments: Presentation — Centrally cleared client derivatives Yes.
IAS 33 Earnings Per Share — Tax arising from payments on participating equity instruments Yes.
IAS 41 Agriculture — Biological assets growing on bearer plants Yes, however we recommend the Board consider a number of related conceptual issues as part of the Post-implementation Review of IFRS 13.
IFRS 1 First-time Adoption of International Financial Reporting Standards — Subsidiary as a first-time adopter Yes.
IFRS 9 Financial Instruments — Modifications or exchanges of financial liabilities that do not result in derecognition Yes, however we recommend that this issue would be better addressed via a formal Interpretation rather than an agenda decision.

Review all our comment letters to the IASB, IFRS Foundation, and IFRS Interpretations Committee on our Global IAS Plus website.

IFRS - IASB Image

IASB launches IFRS 17 implementation support page

May 23, 2017

On May 23, 2017, after the issuance of IFRS 17 "Insurance Contracts" on May 18, the International Accounting Standards Board (IASB) has set up an implementation support page for IFRS 17.

In addition to material issued alongside IFRS 17, the page also offers contact details and submission information for technical inquiries and implementation issues.

The IASB will keep the implementation support page available through the whole implementation process for IFRS 17 and will continue to add additional information that becomes available.

Review the new page on the IASB's website.

IFRS - IASB Image

PIR of IFRS 13 to be substantiated by a literature review

May 23, 2017

On May 23, 2017, the International Accounting Standards Board (IASB) announced that it will launch the public phase of the post-implementation review (PIR) of IFRS 13 "Fair Value Measurement" in May. The IASB is now also calling for applications to undertake a literature review on the effect on IFRS 13.

The call for research seeks applications to undertake a literature review, bringing together the existing academic literature on the effect of implementation of IFRS 13, Fair Value Measurement. The IASB expects to receive a full literature review and a summary, which highlight findings in the existing literature as they relate to the areas of focus in the Board’s PIR of IFRS 13.

Review the call for applications on the IASB's website.

ÌFRS - CFA Institute Image

Study Examines the Impact of Reporting Frequency

May 23, 2017

On May 23, 2017, the CFA Institute released an article on a study that examines the impact of quarterly reporting of UK companies. Although some argue that quarterly earnings encourage short-term thinking, the findings of the study help to dispel that notion.

The authors of the study found that companies still invested for the long term even after they were required to start reporting on a quarterly basis.

The new CFA Institute Research Foundation brief “Impact of Reporting Frequency on UK Public Companies” examines the time period between 2007, when UK regulators began requiring quarterly reports from companies, to 2014, when they dropped that requirement. They found several effects associated with the two different approaches to reporting frequency.

Effect of Requiring and Not Requiring Quarterly Reporting

  • No difference in long-term investment activity
  • Quarterly reports became more qualitative than quantitative
  • More companies issued managerial guidance
  • Analyst coverage increased

Policy Recommendations

  • Going from quarterly to semi-annual reporting does not combat “short-termism”
  • Quarterly reports should be streamlined and include relevant metrics

Review the article on the CFA Institute's website.

IFRS - FSB (Financial Stability Board) Image

We Mean Business coalition statement and key recommendations to the G20 leaders

May 22, 2017

In May 2017, the We Mean Business coalition expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) convened by the Financial Stability Board (FSB).

The We Mean Business coalition has released a statement and key recommendations to the G20 leaders expressing support for the recommendations of the TCFD.

Deloitte is among one of the companies that is committed to action, as part of the We Mean Business coalition.

Review the Statement and key recommendations on the We Mean Business coalition's website.

Canada Image

Administrators Will Need To Revisit Governance Policies Under Ontario's Latest Pension Changes

May 19, 2017

On May 19, 2017, the Ontario government announced that it would require plan administrators to establish written governance and funding policies, regarding a new funding framework for defined benefit pension plans in the province.

This move is one of a number of proposed measures designed to protect benefit security for members of defined benefit plans once the new funding framework, which will eliminate solvency funding for plans with a funded ratio of at least 85 per cent, is in place. The other measures include increasing the monthly pension amount guaranteed by the pension benefits guarantee fund in the event of employer insolvency and requiring increased disclosure to plan members regarding the funded status of their plan.

Review the press release on the Ontario government's website and an article on the Benefits Canada website.

IFRS - IASB Image

Updated IASB work plan — Analysis

May 18, 2017

On May 18, 2017, the International Accounting Standards Board (IASB) updated its work plan following its May 2017 meeting. There were no major changes with the exception of the insurance contracts project being removed from the active projects due to the issuance of IFRS 17.

Below is an analysis of all changes made to the work plan since the last update in April 2017.

Research projects

  • no changes

Major projects

Nar­row-scope amend­ments

  • a new project on long-term interests in associates and joint ventures has been split off from the Annual improvements 2015–2017 — final amendments to IAS 28 are expected within six months
  • a new project vaguely called "Annual improvements (next cycle)" has been added to the agenda — an exposure draft is expected after six months

IFRS Taxonomy

  • proposed taxonomy update on insurance contracts (published together with IFRS 17 yesterday) — a final updated is expected within six months

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

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.