News

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Major national standard setters concerned about connectivity

Oct 12, 2023

On October 12, 2023, the UK Endorsement Board (UKEB), the Australian Accounting Standards Board (AASB), Canadian Accounting Standards Board (AcSB), Malaysian Accounting Standards Board (MASB), and the New Zealand External Reporting Board (XRB) published a joint letter to the International Sustainability Standards Board (ISSB) highlighting their common concerns regarding its recent agenda consultation.

On the topic of connectivity, the standard setters highlight that close alignment and connectivity between financial and sustainability reporting is paramount to ensure that the information produced for investors is compatible and comparable. They also note that communicating the ISSB’s long-term objectives and clarifying how these relate to the IASB’s roadmap was a critical next step.

The standard setters submitted individual responses to the ISSB agenda consultation, but felt that it was necessary to combine their statements in an additional joint letter given their shared concerns:

  • Feedback from UK stakeholders, as well as the UKEB’s own research, indicate that close alignment and connectivity between financial and sustainability reporting should be a priority for both Boards and they do not consider that this is yet complete.
  • The AcSB strongly encourages the ISSB to continue working together with the IASB to prioritise issues related to connectivity in reporting.
  • The MASB is of the view that connectivity is paramount to ensure high quality and compatible information in financial statements and in sustainability disclosures.
  • The Australian Accounting Standards Board recommends that the ISSB focus on the development of additional guidance on connectivity to better support comparability.
  • The XRB highlights that simply relying on generic aspirations for ‘connectivity’ or ‘interoperability’ may undermine the credibility of the work of the ISSB.

Access the report on the UKEB website.

ISSB Image

UKEB and other national standard-setters publish a joint letter to the ISSB in response to its agenda consultation

Oct 11, 2023

On October 11, 2023, the UK Endorsement Board (UKEB), the Australian Accounting Standards Board (AASB), Canadian Accounting Standards Board (AcSB), Malaysian Accounting Standards Board (MASB), and the New Zealand External Reporting Board (XRB), published a joint letter to the International Sustainability Standards Board (ISSB) highlighting their common concerns regarding its recent agenda consultation.

The National Standard-setters (NSS) noted three key areas of concern for the ISSB to consider:

  • Connectivity with accounting standards – all considered that close alignment and connectivity between financial and sustainability reporting is paramount to ensure that the information produced for investors is compatible and comparable.
  • Strategic roadmap – communicating the ISSB’s long-term objectives and clarifying how these relate to the IASB’s roadmap was a critical next step.
  • Implementation priority – the highest priority of the ISSB should be the successful implementation of the inaugural standards.

Access the letter on the UKEB website.

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IASB publishes "Investor Perspectives" article on cash flow economics

Oct 10, 2023

On October 10, 2023, the IASB issued the latest issue of 'Investor Perspectives'. In this edition, IASB Board member Nick Anderson discusses disclosure of non-cash changes in debt to effectively assess and compare companies.

In May 2023, the IASB introduced new requirements to improve transparency in supplier finance arrangements which aimed to assist investors in evaluating changes in a company’s debt, whether they are cash-related or non-cash related, by providing more comprehensive and transparent information.

Review the press release and the article on the IFRS Foundation’s website.

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PCAOB Chair Williams Delivers Remarks at 2023 PCAOB Conference on Auditing and Capital Markets

Oct 05, 2023

On October 5, 2023, the Public Company Accounting Oversight Board (PCAOB) Chair Erica Williams delivered remarks at the 2023 PCAOB Conference on Auditing and Capital Markets highlighting the deficiency rate in the Staff report and the PCAOB’s efforts to improve the transparency of inspection results.

Here are some excerpts from the speech:

“This means audit opinions were signed without completing the audit work required to verify the accuracy of the financial statements. That is a serious problem at any rate, and 40% is completely unacceptable. I have challenged auditors to sharpen their focus and called on audit committees to hold their firms accountable. Of course, as our third pillar of strengthening enforcement suggests, the PCAOB has not hesitated to bring enforcement cases against auditors when appropriate.”

In addition to discussing enforcement, she highlighted the PCAOB’s efforts to improve the transparency of inspection results:

“In May, we announced enhancements to make our inspection reports more transparent with a new section on auditor independence and a range of other improvements to make more relevant, reliable, and useful information available for investors, researchers, and others.

In July, we rolled out new features on our website to help users compare inspection report data.

This was just the beginning of our work to increase transparency and make PCAOB data more accessible.

Transparency is one of the most powerful tools the PCAOB has to improve audit quality. Sharing our inspection results empowers audit committees and boards of directors – which are responsible for hiring auditors of public companies – to hold audit firms accountable directly.”

Re­view the speech on the PCAOB web­site.

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Canadian Securities regulators announce results of ninth annual review of representation of women on boards and in executive officer positions in Canada

Oct 05, 2023

On October 5, 2023, the Canadian securities regulators have released the results of their ninth annual review on women's representation in corporate leadership roles. The report, based on data from 602 non-venture issuers, reveals that 27% of board seats are held by women, showing a 3% increase from the previous year.

However, there's a decline in the percentage of board vacancies being filled by women, dropping from 45% to 43%. Notably, 89% of issuers have at least one woman on their board, and 8% have a woman serving as the board chair. The data, gathered from public documents, aims to enhance transparency and support informed investment decisions.

Furthermore, the Canadian securities regulators are actively reviewing stakeholder feedback on proposed amendments related to corporate governance disclosure requirements and policies concerning director nominations, board renewal, and diversity.

Access the news release on the CSA website.

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Canadian securities regulators provide update on proposed amendments to continuous disclosure requirements

Oct 03, 2023

On October 3, 2023, the Canadian Securities Administrators (the CSA) provided an update on proposed amendments to modernize the continuous disclosure requirements for non-investment fund reporting issuers that were published for comment in May 2021.

The proposed continuous disclosure amendments would streamline and clarify certain disclosure requirements for the management’s discussion and analysis (MD&A) and the annual information form (AIF). They would also combine interim and annual financial statements, MD&A, and, where applicable, the AIF into one reporting document for each reporting period (called the interim disclosure statement or annual disclosure statement, as applicable).

Re­view the news release on CSA's website.

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PSAB's new reporting model issued

Oct 02, 2023

On October 2, 2023, the Public Sector Accounting Board (PSAB) issued a new reporting model under Financial Statement Presentation, Section PS 1202 in the CPA Canada Public Sector Accounting (PSA) Handbook.

The new model is intended to make financial statements more understandable and provide improved accountability information for users. Some of the key changes include the restructuring of the statement of financial position, the addition of a statement of changes in net assets or net liabilities, and the amendment of the statement of cash flow.

The new model will be effective for fiscal years beginning on or after April 1, 2026.

Access the news release on the PSAB website and the reporting model on the CPA Canada website.

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IASB issues podcast on latest Board developments (September 2023)

Sep 27, 2023

On September 27, 2023, the IFRS Foundation released a podcast featuring IASB Vice-Chair Linda Mezon-Hutter and Executive Technical Director Nili Shah discussing deliberations at the September 2023 IASB meeting.

Highlights of the podcast include discussions on:

  • the project on climate-related risks in the financial statements that has been re-calibrated to also include "other uncertainties";
  • the conclusion of technical discussions in the project on goodwill and impairment;
  • the rate-regulated activities project;
  • key takeaways from the equity method project;
  • decisions made in the second comprehensive review of the IFRS for SMEs;
  • the direction of the project looking at business combinations under common control; and
  • decisions on the extractive activities project.

Access the podcast on IFRS Foundation website.

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New Zealand External Reporting Board introduces research on intangibles at IFASS meeting

Sep 27, 2023

On September 27, 2023, the International Forum of Accounting Standard Setters (IFASS) held its fall meeting in London. During one presentation, the New Zealand External Reporting Board (XRB) provided insights into research on the disclosure of recognised and unrecognised intangibles. The research, which was conducted in response to an XRB call for research on intangibles, examines the reporting of and disclosures on intangible assets by listed companies and public benefit entities in New Zealand as a mid-sized market.

The research concludes with some observations and suggestions based on the findings:

  • Regarding the large range of terminology in intangible asset reporting one solution could be the use of digital reporting such as Core & More reporting
  • An expense disclosure approach would require mandating specified categories to ensure disclosure
  • Capitalizing currently expensed intangible-related activities would reduce but not eliminate the information gap
  • Aligning intangible asset fair value criteria to IFRS 13 might be a relatively low-cost solution to reduce the information gap
  • Disclosure of unrecognized intangibles would also provide a better understanding of capitalized intangible assets

As a solution to the current unsatisfying reporting of intangibles two measures were suggested for intangibles with partial markets: Allowing the revaluation model as an accounting policy choice and allowing estimation of fair value under IFRS 13 along with appropriate disclosures of judgments and estimates. To achieve this, the IASB could amend IAS 38 to provide alternative criteria to “active market” such as “freely transferable” and “commonly traded”. The IASB could develop indicators to assist entities in determining whether the revaluation model policy choice was available. A longer-term project could be to consider measurement for “unique” intangibles referred to in IAS 38

Access the research on the SSRN website. 

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Updated IASB and ISSB work plan — Analysis (September 2023)

Sep 26, 2023

Following the IASB's and ISSB's September 2023 meetings, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meetings and other developments since the work plan was last revised in July 2023.

Below is an analysis of all changes made to the work plan since our last analysis on July 28, 2023.

Standard-setting projects

Maintenance projects

  • Amendments to the classification and measurement of financial instrumentsThe next project step is now the publication of final amendments in H1 2024
  • Amendments to the IFRS for SMEs — International tax reform — The next project step is now the publication of final amendments in September 2023
  • Annual Improvements to IFRS Accounting StandardsAfter the publication of the exposure draft in September 2023, feedback will be discussed in Q1 2024; the following projects are included:
  • Cost Method (Amendments to IAS 7)
  • Credit Risk Disclosures (Amendments to Illustrative Examples accompanying IFRS 7)
  • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
  • Disclosure of Deferred Difference Between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1
  • Lessee Derecognition of Lease Liabilities (Amendments to IFRS 9)
  • Transaction Price (Amendments to IFRS 9)
  • Climate-related and other uncertainties in the financial statementsThe project has been renamed; the next project step is now a decision on the project direction expected in H1 2024
  • Lack of exchangeability — The project has been removed from the work plan as final amendments were published in August 2023
  • Power purchase agreements — A project newly added to the work plan; a decision on the project direction is expected in H1 2024

Research projects

Other projects

The above is a faithful comparison of the IASB and ISSB work plan on July 28, 2023 and September 26, 2023.

For access to the current work plan at any time, please click here

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