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News

IAASB - Assurance Image

IAASB consults on Extended External Reporting (EER) assurance

Mar 13, 2020

On March 13, 2020, the International Auditing and Assurance Standards Board (IAASB) released for feedback it’s non-authoritative EER Guidance. This is in response to organizations that are increasingly reporting about their broader performance or impact (“Extended External Reporting” or “EER”) either voluntarily or as required by law or regulation, and the growing demand for assurance engagements on such reporting. Comments are requested by July 13, 2020.

EER encapsulates many different forms of reporting including, but not limited to, integrated reporting, sustainability reporting and other reporting by entities about financial and non-financial matters, including environmental, social and governance matters, related to an entity’s activities.

The purpose of the IAASB’s Public Consultation on Proposed Guidance, Extended External Reporting Assurance is to promote consistent high-quality application of ISAE 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information so as to:

  • Strengthen the influence of EER assurance engagements on the quality of EER reports;
  • Enhance user trust in the resulting assurance reports; and
  • Engender greater confidence in the credibility of, trust in and reliance upon EER reports by their intended users.

The draft non-authoritative guidance addresses Special Considerations in Performing Assurance Engagements on Extended External Reporting.

Review the press release and guidance on the IAASB's webiste.

US_SEC Image

SEC amends definitions of accelerated filer and large accelerated filer

Mar 12, 2020

On March 12, 2020, the Securities and Exchange Commission (SEC) issued a final rule, Amendments to the Accelerated Filer and Large Accelerated Filer Definitions. The final rule allows “smaller issuers that have been public for more than five years, but have not yet reached $100 million in revenues, to continue to benefit from the JOBS Act exemption as they build their businesses, while maintaining important investor protections.”

Review the press release on the SEC’s website.

ASPE_AcSB Image

Handbook Update – Section 4250, Future Oriented Financial Information to be retained

Mar 10, 2020

On March 10, 2020, the Accounting Standards Board (AcSB) announced that part of the non-authoritative guidance that was removed from Part V on March 1, 2020 was Section 4250, Future Oriented Financial Information. This guidance continues to be relevant to private enterprise financial statement preparers and practitioners, so it will be retained in the Handbook.

Review the update on the AcSB's website.

United States Image

What are the business benefits of practicing strong cybersecurity?

Mar 09, 2020

On March 9, 2020, the Board Effect released a blog on how advanced technology has brought many solutions for businesses. At the same time, it’s created greater potential for criminals to engage in cyberattacks.

Cyberattacks have become so commonplace that it’s becoming one of companies’ highest priorities. In fact, about 40% of companies claim that cybersecurity is and will continue to be the top priority in their budget allocation for technology reporting. With almost one-third of businesses in the U.S. have suffered a data breach, companies are realizing that they need to do more than address cybersecurity issues on the technical end. It’s equally important to build a cybersecurity culture among the employees. That’s because human error is the top cybersecurity risk in the workplace.

Review the full blog on the Board Effect's website.

IFRS - IASB Image

IASB to complete its planned redeliberations of the proposed IFRS 17 amendments

Mar 06, 2020

At its upcoming March 17-19, 2020 meeting, the International Accounting Standards Board (IASB) will discuss the remaining issues resulting from the feedback received on the exposure draft ED/2019/4 "Amendments to IFRS 17" which are the effective date of IFRS 17 and the expiry date of the IFRS 9 temporary exemption in IFRS 4.

On the effective date, which originally was set at January 1, 2021 and which ED/2019/4 proposed to move to January 1, 2022, the staff now recommend that the Board:

  • a) defer the effective date of IFRS 17 (incorporating the amendments) to annual reporting periods beginning on or after January 1, 2023; and
  • b) extend the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 to annual reporting periods beginning on or after January 1, 2023.

The staff recommend that the amendment to IFRS 4 — reflecting the extension of the fixed expiry date for the temporary exemption from applying IFRS 9 — is balloted separately from the amendments to IFRS 17 (including consequential amendments to other IFRSs). This will give jurisdictions with an endorsement process the possibility to endorse the temporary exemption independently (and possibly more quickly) and so avoid endorsement after the current temporary exemption has run out (January 2021).

The papers for the meeting also offer an overview of all topics discussed and the Board's tentative decisions (links are to our Deloitte meeting notes taken at the meeting the decision was made).

Topic Confirm amendment as proposed in the ED Confirm proposed amendment with some changes Amendment not proposed in the ED
1A — Scope exclusion for credit cards January 2020
1B — Scope exclusion for loans December 2019
2 — Expected recovery of insurance acquisition cash flows December 2019, January 2020
3 — Contractual service margin attributable to investment services December 2019, February 2020
4 — Reinsurance contracts held — recovery of losses December 2019
5 — Presentation in the statement of financial position December 2019
6A — Applicability of the risk mitigation option — reinsurance contracts held December 2019
6B — Applicability of the risk mitigation option — non-derivative financial instruments at fair value through profit or loss February 2020
7 — Accounting policy choice relating to interim financial statements January 2020
8A — Effective date of IFRS 17 To be decided at March 2020 meeting
8B — Expiry date of IFRS 9 temporary exemption in IFRS 4 To be decided at March 2020 meeting
9A — Transition relief for contracts acquired December 2019
9B — Transition reliefs for the risk mitigation option — the application from the transition date December 2019
9C — Transition relief for risk mitigation option — the option to apply the fair value approach December 2019
9D — Transition relief for investment contracts with discretionary participation features February 2020
9E — Transition relief for identifying the date a reinsurance contract held was acquired February 2020
9F — Transition relief relating to interim financial statements February 2020
10 — Minor amendments February 2020

After its March 2020 meeting, the Board will have completed its planned redeliberations of the feedback on the exposure draft. If the Board gives permission to start the balloting process at this meeting, the staff plan to draft the amendments to IFRS 17 and bring any sweep issues identified during the balloting of the amendments for discussion at a future meeting. The staff expect that the amendments will be issued in the second quarter of 2020, in line with the Board’s plan as stated in the exposure draft.

Please click to access all papers for the meeting on the IASB website. The discussion of the IFRS 17 amendments is currently scheduled for Tuesday 17 March 14.30-15.30 London time.

IFRS - EFRAG Image

EFRAG to conduct field-testing on IASB’s project on primary financial statements

Mar 06, 2020

On March 6, 2020, the European Financial Reporting Advisory Group (EFRAG), in coordination with European National Standard Setters and the IASB, will conduct field-testing on the IASB’s Exposure Draft ED/2019/7, "General Presentation and Disclosures", and invites companies to participate in the field-testing.

The field-testing will help "identify potential implementation and application concerns, to determine whether there is a need for additional guidance, and to estimate the effort required to implement and apply the proposals". The deadline to participate in the field-testing is March 20, 2020.

Review the press release on the EFRAG’s website.

Securities - CSA Image

Canadian securities regulators adopt harmonized pre-file review of prospectuses

Mar 05, 2020

On March 5, 2020, the Canadian Securities Administrators (CSA) announced that issuers across Canada will now be able to submit their prospectuses for confidential review by securities regulators before publicly filing them.

The new program, explained in CSA Staff Notice 43-310 Confidential Pre-File Review of Prospectuses (for non-investment fund issuers), expands the availability of confidential pre-file reviews that some CSA jurisdictions are already conducting. Pre-file review allows for the earlier identification of material issues that might delay receipting the prospectus and closing the offering.

The pre-filed prospectus should be of the same form and quality expected in a publicly-filed prospectus and contain the disclosure (including financial statements) required under securities law. The pre-filed prospectus should also include an estimate of price of the securities and other information derived from that price. The reviews will generally be conducted by the issuer’s principal regulator. 

The new program will supersede existing pre-file review policies in the jurisdictions that offer them.

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

United States Image

COVID-19: The crisis communications response

Mar 04, 2020

On March 4, 2020, the Conference Board released a podcast that discusses insights and recommendations that will be helpful as you formulate, implement and manage your crisis communications response strategy.

As the COVID-19 outbreak continues, communications leaders face the growing challenge of supporting the safety of staff, the reputation of the company, and the viability of operations. At the same time, the risks of missteps are significantly compounded by social media activism, misinformation and the critical gaze of international observers.

Listen to the podcast on the Conference Board's website.

US_SEC Image

SEC issues COVID-19 Coronavirus exemptive order

Mar 04, 2020

On March 4, 2020, the Securities and Exchange Commission (SEC) announced that it is providing conditional regulatory relief for certain publicly traded company filing obligations under the federal securities laws.

The impacts of the coronavirus may present challenges for certain companies that are required to provide information to trading markets, shareholders, and the SEC. These companies may include U.S. companies located in the affected areas, as well as companies with operations in those regions.

Review the press release and exemptive order on the SEC's website.

IFRS - IASB Image

IASB releases podcast on IFRS 17

Mar 02, 2020

On March 2, 2020, the International Accounting Standards Board (IASB) released a podcast featuring IASB member Darrel Scott and technical staff member Anne McGeachin as they discuss the developments at the February 2020 Board meeting related to the amendments to IFRS 17, "Insurance Contracts".

Listen to the seven minute podcast on the IASB's website.

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