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News

IAASB - Assurance Image

Putting the public interest at the heart of our work: Acting with urgency, purpose and responsiveness

Apr 21, 2021

On April 21, 2021, the International Auditing and Assurance Standards Board (IAASB) published its Public Report detailing its progress to support the public interest between July 2019 and December 2020. During this 18-month period, the IAASB completed five major standards aimed at enhancing audit and assurance quality, adopted a four-year strategy focused on the public interest, and established a new work plan focused on emerging issues.

The IAASB also responded to a new environment sparked by the global pandemic by issuing guidance and engaging with a broad range of stakeholders in order to sustain trust in audit and assurance.

The Public Report showcases the IAASB’s efforts to be a responsive, agile and innovative standard setter, closely connected with its stakeholders. The report highlights completed and in progress standard-setting projects, other new initiatives to respond to stakeholder needs, and our efforts to improve the agility of the standard-setting process. The report also includes reflections from IAASB Chair Tom Seidenstein on his first 18 months in this role.

Review the press release and report on the IAASB's website.

IFRS - IASB Image

IASB publishes proposed amendments to IAS 21 to clarify the accounting when there is a lack of exchangeability

Apr 20, 2021

On April 20, 2021, the International Accounting Standards Board (IASB) published an exposure draft "Lack of Exchangeability (Proposed amendments to IAS 21)" that contains proposed guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Comments are requested by September 1, 2021.

 

Background

The IFRS Interpretations Committee received a submission about the determination of the exchange rate when there is a long-term lack of exchangeability as IAS 21, The Effects of Changes in Foreign Exchange Rates does not include explicit requirements on the exchange rate an entity uses when the spot exchange rate is not observable. The Committee researched possible narrow-scope standard-setting and concluded that the best way forward was to recommend that the IASB propose narrow-scope amendments to IAS 21 to address the matter.

In November 2019, the IASB took the matter over and during its subsequent meetings discussed how to assess whether a currency is exchangeable and which exchange rate to use when it is not. The Board decided to propose to add requirements to IAS 21 that will help an entity determine whether a currency is exchangeable into another currency and requirements the entity would apply when it is not.

 

Suggested changes

The proposed amendments in exposure draft ED/2021/4 Lack of Exchangeability (Proposed amendments to IAS 21) would amend IAS 21 to:

  • Specify when a currency is exchangeable into another currency and when it is not — a currency is exchangeable when an entity is able to exchange that currency for the other currency, even if indirectly through another currency, through markets or exchange mechanisms that create enforceable rights and obligations without undue delay; a currency is not exchangeable into the other currency if an entity can only obtain an insignificant amount of the other currency.
  • Specify how an entity determines the exchange rate to apply when a currency is not exchangeable — when a currency is not exchangeable an entity estimates the spot exchange rate as a rate that the entity would have been able to access had the currency been exchangeable, would have applied to an orderly transaction between market participants, and would faithfully reflect the economic conditions prevailing; an entity would also be able to use an observable exchange rate as the estimated spot exchange rate if it meets the noted requirements or the first subsequent exchange rate after exchangeability is restored.
  • Require the disclosure of additional information when a currency is not exchangeable — when a currency is not exchangeable an entity discloses information that would enable users of its financial statements to evaluate how a currency’s lack of exchangeability affects, or is expected to affect, its financial performance, financial position and cash flows.

Comments on the proposed changes are requested by September 1, 2021.

 

Effective date

The exposure draft does not contain a proposed effective date as the IASB intends to decide on this after exposure. Early application would be permitted. The amendments would apply prospectively from the date of initial application of the amendments.

 

Additional information

 

IFRS - IASB Image

IASB issues "Investor Update" newsletter

Apr 20, 2021

On April 20, 2021, the International Accounting Standards Board (IASB) issued the latest edition of its newsletter "Investor Update", which profiles recently introduced IFRS Standards and other changes that are in the pipeline as well as how those changes may affect companies and performance.

This issue features:

  • Spotlight — Improving the financial reporting of rate-regulated companies
  • In profile — Jeremy Stuber, analyst and member of the Capital Markets Advisory Committee
  • We need your views
  • Stay up to date
  • Resources for investors

Review the press release and Investor Update newsletter on the IASB’s website.

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

IESBA releases technology initiative update

Apr 19, 2021

On April 19, 2021, the International Ethics Standards Board for Accountants (IESBA) released an update on its technology initiative.

In March 2021, the IESBA reflected on the progress made to date on its technology Initiative, and considered next steps and timing, also recognizing the increased burdens stakeholders have shouldered as a result of the pandemic.

Review the update on the IESBA's website.

IFRS - IASB Image

Recording of virtual workshop on Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12

Apr 15, 2021

On April 15, 2021, the International Accounting Standards Board (IASB) released a recording of a virtual research workshop it held on March 26, 2021 that provided an overview of the IASB’s Request for Information Post-implementation Review of IFRS 10, "Consolidated Financial Statements", IFRS 11, "Joint Arrangements" and IFRS 12, "Disclosure of Interests in Other Entities", published in December 2020.

The workshop, held in conjunction with the European Accounting Association (EAA) and the European Financial Reporting Advisory Group (EFRAG), was moderated by EAA President Thorsten Sellhorn and included an overview of the Request for Information by the IASB technical staff; an academic reflection by Professor Niclas Hellman; EFRAG’s summary of the initial input gathered by European constituents by Robert Stojek; and a Q&A session with the presenters and Board Member Ann Tarca.

Listen to the recording on the IASB's website.

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

IESBA launches post-implementation review of long association international independence standard

Apr 14, 2021

On April 14, 2021, the International Ethics Standards Board for Accountants' (IESBA) Long Association Post-Implementation Review (LAPIR) Working Group released a questionnaire seeking stakeholder feedback on key matters relating to Phase 1 of the LAPIR. Responses are required by May 31, 2021.

The questionnaire forms part of the Working Group’s information gathering and will help inform the IESBA’s review of the implementation of the five-year cooling-off requirement for engagement partners on audits of public interest entities. This review is being undertaken before the “jurisdictional provision” in the standard expires for audits of financial statements for periods beginning on or after December 15, 2023. The jurisdictional provision permits jurisdictions to apply a cooling-off period less than five years subject to specified conditions.

Review the press release and questionnaire on the IESBA's website.

US_SEC Image

SEC issues ESG risk alert

Apr 09, 2021

On April 9, 2021, the Securities and Exchange Commission's (SEC) Division of Examinations issued a risk alert on environmental, social, and governance (ESG) reporting.

The alert highlights “observations from recent exams of investment advisers, registered investment companies, and private funds offering ESG products and services.”

Review the alert on the SEC's website.

US_SEC Image

ESG Risk Alert

Apr 09, 2021

On April 9, 2021, the Securities and Exchange Commission (SEC) released this risk alert that describes the areas on which the SEC staff is focusing in examinations of registered investment advisers’ and funds’ ESG offerings.

Review the alert on the SEC's website.

PSAS - PSAB Image

COVID-19 and its potential effect on the financial self-sufficiency of government business enterprises

Apr 08, 2021

On April 8, 2021, the Public Sector Accounting Board (PSAB) released guidance on how to evaluate a government business enterprise's financial self-sufficiency or viability during the COVID-19 pandemic.

The COVID-19 pandemic may impair the viability of some GBEs, and/or their financial self-sufficiency from revenue outside their controlling government’s reporting entity. “How to Evaluate a GBE’s Financial Self-Sufficiency” examines factors affecting a GBE’s current and future financial performance, which could include the COVID-19 pandemic. It also:  

  • draws on and magnifies CPA Canada Public Sector Accounting Handbook guidance for meeting the financial self-sufficiency criteria in the GBE definition; 
  • outlines factors, changes in factors, and questions for controlling governments to consider; and 
  • represents an important new starting place for comprehensively evaluating a GBE’s financial self-sufficiency.

Review the press release and guidance on the PSAB's website.

CPAB - Assurance Image

A Year in Review: 2020 Audit Committee Forum Highlights

Apr 08, 2021

On April 8, 2021, the Canadian Public Accountability Board (CPAB) released highlights from their 12 forums held in 2020 for audit committee chairs and chief financial officers of Canadian reporting issuers to discuss the impact of COVID-19 on the financial reporting and audit quality in various industries, including real estate, mining, energy and financial institutions.

Review the audit committee forum highlights on the CPAB's website.

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