On primary financial statements, Ms. Lloyd noted that the IASB's work reflects the fact that while the traditional financial statements continue to remain the core of investment analysis, the way in which that information is consumed has evolved. In this environment proper structure and comparability of the financial information provided by companies is especially important.  She explained the Board's thinking on new subtotals that are to be introduced and  on non-GAAP measures, where the IASB's proposals will reflect the growth in the use of these measures in the market and their relevance for investors. The IASB plans to publish its proposals in an exposure draft around the end of this year.

On management commentary, Ms. Lloyd pointed out that wider corporate reporting information can be classified broadly into two types: (i) information about how the company affects the world and (ii) information about how the world affects the company. It is the second area where the IASB has decided it can and should play a larger role. The corresponding project is therefore aimed at updating the IASB's practice statement on management commentary so that investors have visibility of factors that may affect a company’s future cash flows but may not yet be reflected in the financial statements. As a next step in this project the IASB intends to publish an exposure draft proposing changes to the practice statement in 2020.

Finally, on supporting consistent application, Ms. Lloyd explained the work of the IASB's IFRS Interpretations Committee, which she chairs.

Review the full speech on the IASB's website.

Mr. Liikanen explained that today, a major push for innovation in global finance is coming from ‘big techs’, companies that are dominant platform providers that offer ubiquitous digital services. He summarized the impact of these big techs neutrally:

1. The entry of big techs into financial services holds the promise of efficiency gains and can enhance financial inclusion.
2. Regulators need to ensure a level playing field between big techs and banks, taking into account big techs’ wide customer base, access to information and business models.
3. Big techs' entry presents new and complex trade-offs between financial stability, competition and data protection.

Based on this, Mr. Liikanen offered three observations. Firstly, policymakers need to decide how much to encourage big tech to enter finance — should policies promote big techs’ entry or restrict it? Secondly, big tech tests the regulatory perimeters of data protection, competition policy and now financial regulation. As such, regulation that is fit-for-purpose will require enhanced cooperation among multiple regulatory bodies. And thirdly, we need to recognize the cross-border nature of the big techs and fintechs challenge and respond appropriately. Mr. Liikanen also noted that among the initiatives in the field is the work by the IFRS Foundation to consider the accounting for crypto assets under IFRS standards.

Mr Liikanen closed his speech by noting: "Innovation is here to stay, and it will bring benefits and it will bring challenges. We need a balanced approach, where we reap the benefits of financial inclusion and efficiency and ensure a level playing field between big techs and banks."

Review the full speech on the IASB's website.

The AASB approved a new standard on compilation engagements for release in February 2020. The impact could be significant to practitioners and users.

Review the summary on the AASB's website.

The report provides a foundational understanding of the current role of auditors in various types of company-prepared and publicly disclosed information and is intended to help investors and audit committees understand how auditors are positioned to help fill existing gaps in enhancing the reliability of decision-useful information. It argues that while today the role of auditors is largely limited to the audit of financial statements, changing business models and investor demand lead to companies increasingly providing information outside the financial statements. The report argues that auditors are poised to meet stakeholders’ needs in enhancing confidence in these other types of company-prepared information, which include non-GAAP financial measures, environmental, social, and governance information, cybersecurity reporting, and other communications about value-creation outside of financial statements.

Review the press release and publication on the CAQ's website.

The Exposure Draft proposes to remove the exclusion in the conceptual framework prohibiting recognition of purchased intangibles in financial statements. The proposal is limited to intangibles purchased through an exchange transaction. Removing the recognition prohibition on purchased intangibles would address a material imbalance in the statements of financial position of many Indigenous governments. These governments may finance the purchase of commercial fishing (and other) licenses with debt but cannot currently recognize the licenses as assets. The proposal may also have implications for other public sector entities that purchase intangibles.

Like the current situation for purchased Crown lands and purchased natural resources, no guidance on how to account for purchased intangibles is proposed in this Exposure Draft. For now, reference to the asset definition, the general recognition criteria and the GAAP hierarchy is expected. Accounting for these items may be the subject of future PSAB projects.

Read the press release and Exposure Draft on the AcSB's website.

Review the article to find out why on the PSAB's website.

In the article In Brief: IFRS Standards and climate-related disclosures, Mr Anderson provides an overview intended to help investors understand what already exists in the current requirements and guidance on the application of materiality, and how it relates to climate and other emerging risks.

Aspects he considers are:

• Board guidance on how to make materiality judgements
• Applying IFRS Practice Statement 2 Making Materiality Judgements to climate-related and emerging risks
• Financial reporting considerations when applying IFRS Standards
• Disclosing climate-related and other emerging risks in the financial statements
• Management commentary: providing context to the financial statements
• Summary: materiality judgements should serve investors’ information needs

The article notes that Mr Anderson's thoughts have been inspired by work from the Australian Accounting Standards Board (AASB) and Audit and Assurance Board (AUASB).

Review the press release and article on the Board's website.

Entrepreneurial leadership has its own characteristics, both good and bad depending upon your perspective. Entrepreneurs are also associated with innovation, and every accountant should realize that all innovation starts as a bad idea — at least to those it disrupts. Therefore, innovation management is becoming a required skill where a person has the unique ability to make things happen “from idea to making it real,” and then it requires an innovation team to make it scale.

Review the full article on Accounting Today's website.

Professional accountants and other business professionals are often faced with complicated, real world situations that are not black and white and demand pragmatic and ethical solutions. To help address these challenging situations, IFAC released a new series titled: Exploring the IESBA Code.

Through twelve monthly installments, Exploring the IESBA Code will take an in-depth look at the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).  Each installment of the series will highlight different aspects of the Code in real-world situations, in a manner that is relatable and practical. A special focus will be placed on recent revisions to the Code.

The first installment of the Exploring the IESBA Code deals with the five Fundamental Principles of ethics, which establish the standard of behavior expected of all professional accountants - a standard which enable accountants to uphold their responsibility to act in the public interest.

Review the press release and new series on the IFAC's website.

This Communiqué does not constitute an authoritative pronouncement of the IAASB, nor does it amend, extend or override the ISAs or other of the IAASB’s International Standards.

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