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News

IFRS - IASB Image

Summary of the December 2019 ASAF meeting now available

Feb 14, 2020

On February 14, 2020, the International Accounting Standards Board (IASB) staff published a summary of the Accounting Standards Advisory Forum (ASAF) meeting held in London on December 17, 2019.

The topics covered during the meeting were the following (numbers in brackets are references to the corresponding paragraphs of the summary):

  • Agenda Consultation (1–11): The ASAF discussed potential financial reporting priorities for the Board to discuss in the request for information. As high-level recommendations ASAF members stated that the Board should communicate its resource capacity in the RFI, that the Board should prioritise post-implementation reviews and the completion of existing major projects, and should also prioritise the effects of technology and digital reporting on standard-setting.
  • Post-implementation review of IFRS 10, IFRS 11, and IFRS 12 (12–18): The ASAF was given an update on the feedback received from outreach in Phase 1 of the post-implementation review and commented on potential issues to be considered in the RFI.
  • Accounting for intangible assets (19–28): The KASB gave a presentation on its research project on exploring a way to complement financial statements with a separate statement that identifies core intangibles and presents their value.
  • IFRS 17 Insurance Contracts (29–35): The ASAF received an overview of the feedback on the exposure draft Amendments to IFRS 17 and was updated on the preliminary decisions of the Board at the November and December 2019 meetings.
  • Agenda planning (36–38) — The ASAF discussed the proposed agenda for its April 2020 meeting.

Review the full summary on the IASB's website.

Securities - CSA Image

Canadian securities regulators seek additional comment on proposed rule for Non-GAAP and other financial measures

Feb 13, 2020

On February 13, 2020, the Canadian Securities Administrators (CSA) published a second notice and request for comment on revisions to a proposed rule for Non-GAAP and Other Financial Measures (the proposed rule). The rule would establish disclosure requirements for issuers that disclose non-GAAP and other financial measures, which often lack standardized meanings, resulting in potentially misleading disclosure.

Following stakeholder consultation, the CSA has made substantive changes to the proposed rule that: 

  • Limit the application to certain issuers;
  • Exempt certain disclosures, financial measures and documents;
  • Narrow the scope of what is considered a non-GAAP financial measure; and
  • Reduce and simplify disclosures.

The proposed rule was originally published for comment on September 6, 2018 and would replace Staff Notice 52-306 (Revised) Non-GAAP Financial Measures. The CSA conducted 38 outreach sessions across seven Canadian cities and reviewed 42 comment letters from issuers, investors, accounting firms, standard setters, industry associations and law firms.

Proposed National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure (the Proposed Instrument) and a revised version of proposed Companion Policy 52-112 Non-GAAP and other Financial Measures Disclosure (the Proposed Companion Policy) are available on CSA members’ websites. Comments should be submitted in writing by May 13, 2020.

Review the press release and notice on the CSA's website.

IFRS - IASB Image

IASB posts webinar on exposure draft on general presentation and disclosures

Feb 11, 2020

On February 11, 2020, the International Accounting Standards Board (the Board) posted a webinar on Exposure Draft, "General Presentation and Disclosures".

The webinar summarizes main proposals in the exposure draft, including subtotals in the statement of profit and loss, disaggregating information, and management performance measures.

Review the press release on the Board’s website.

European Union Image
EFRAG (European Financial Reporting Advisory Group) (dk green) Image

European Reporting Lab issues report on climate-related disclosures

Feb 06, 2020

On February 6, 2020, the European Lab Project Task Force on Climate-related Reporting issued, "How to improve climate-related reporting — A summary of good practices from Europe and beyond".

The report provides an analysis of the current state of climate-related reporting of approximately 150 European companies and focuses on “identifying good reporting practices and assessing the level of maturity in the implementation of the TCFD recommendations, while also taking into consideration the climate-related reporting elements of the NFRD and the related non-binding Guidelines on non-financial reporting and Guidelines on reporting climate-related information.” In additional, the European Lab Project Task Force has issued two supplement documents which complement the report with detailed findings and in-depth review of scenario analysis reporting.

Review the press release on the EFRAG’s Web site as well as this page offering access to the three documents.

CPAB - Assurance Image

CPAB auditor’s responsibilities related to fraud project

Feb 06, 2020

On February 6, 2020, the Canadian Public Accountability Board (CPAB) released an overview of a project it launched in 2019 to evaluate how auditors are complying with Canadian Auditing Standards and to identify what actions can be taken by all relevant stakeholders to better prevent and detect corporate fraud.

There has been a brighter spotlight on fraud recently in the wake of high-profile corporate failures. A focus internationally has been on how far an auditor’s responsibility extends in detecting fraud in an audit of the financial statements.

Review the overview on the CPAB's website.

IFRS - IASB Image

Additional change to IASB work plan

Feb 04, 2020

On February 4, 2020, the International Accounting Standards Board (the Board) made an additional change to its work plan by moving the expected issuance of the discussion paper on its goodwill and impairment project to March.

Review this news item for a list of other changes made to the work plan since it was last revised.

European Union Image

European Commission launches initiative to update the Non-Financial Reporting Directive

Feb 04, 2020

In 2020, the European Commission (EC) launched an initiative "Revision of the Non-Financial Reporting Directive".

As reported earlier, Executive Vice President Valdis Dombrovskis of the EC announced in January 2020 that later this year he would present a renewed sustainable finance strategy, which would include a revision of the Non-Financial Reporting Directive (NFRD).

As a first step of the corresponding initiative that has just been launched, an "Inception impact assessment" has been published. The background paper for the impact assessment notes the following current problems with the NFRD:

  • Reported non-financial information is not sufficiently comparable or reliable.
  • The reported non-financial information does not meet users' needs.
  • Companies incur unnecessary and avoidable costs related to reporting non-financial information.
  • Companies face uncertainty and complexity when deciding what non-financial information to report, and how and where to report such information.

The background papers names three options that could be followed to address these problems:

  1. Continue the current approach of non-binding guidelines to assist companies when reporting according to the NFRD.
  2. Explore the use of standards (which would remain voluntary for companies to use if they wish to).
  3. Revise and strengthen the provisions of the NFRD.

Given Mr Dombrovskis earlier remarks and the title of the initiative, it seems that the EC has already formed an opinion on the best way forward. However, stakeholders have the possibility to comment on the impact assessment (until February 27, 2020), and a formal full consultation is announced for the first quarter of 2020.

Review the consultation page on the EC website that offers access to the Inception impact assessment background paper, the feedback possibility and a general outline on the planned timing for the revision.

IFRS - IASB Image

IASB releases podcast on IFRS 17

Feb 03, 2020

On February 3, 2020, the International Accounting Standards Board (IASB) released a podcast featuring IASB member Darrel Scott and technical staff member Roberta Ravelli as they discuss the developments at the January 2020 Board meeting related to the amendments to IFRS 17, "Insurance Contracts".

The podcast discusses the amend­ments ten­ta­tively finalized during the meeting and focuses on credit card contracts, risk mitigation option, contracts acquired in a settlement period, and acquisition cash flows.

View the podcast on the IASB's website.

IAASB - Assurance Image

IAASB releases auditor reporting project update

Feb 03, 2020

On February 3, 2020, the International Auditing and Assurance Standards Board’s (IAASB) Auditor Reporting Implementation Working Group (ARIWG) published a project update in the form of a Communiqué, which provides an update on the IAASB’s post implementation review (PIR) of the revised auditor reporting standards.

The communique also includes other relevant news and information relevant to the IAASB’s PIR.

Review the press release and project update on the IAASB's website.

FASB (US Financial Accounting Standards Board) (lt blue) Image

FASB Staff issues Q&As on revenue recognition

Jan 31, 2020

In January 2020, the Financial Accounting Standards Board (FASB) staff issued a Q&A document, Revenue Recognition Implementation Q&As.

The Q&As are compiled from previously issued educational materials and address the following topics:

  • Scope
  • Step 1 — Identifying the contract
  • Step 2 — Identifying the performance obligation
  • Step 3 — Determining the transaction price
  • Step 4 — Allocating the price to the performance obligation
  • Step 5 — Recognizing revenue
  • Licensing
  • Presentation
  • Contract costs

Review the Q&A document on the FASB's website.

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