The proposed update includes elements to reflect the new disclosure requirements introduced by the amendments to IFRS 9, IAS 39 and IFRS 7, issued by the Board on September 26, 2019.

Review the press release and proposed update on the IASB’s website.

The reports analyze the disclosures in a sample of companies’ reports and provide examples of better practice.

The FRC concluded that IFRS 15 disclosures could be improved especially with respect to

• improving the descriptions of accounting policies and ensuring that these are tailored to their own particular circumstances; and
• providing more detailed information about the judgements significantly affecting the amount and timing of revenue.

In connection with IFRS 9 the FRC found that there was still room for companies to improve disclosures by

• analysing the credit quality of trade receivables by non-banking companies; and
• providing details of the indicators of a significant increase in credit risk particularly by the smaller banks.

As regards IAS 36 and the impairment of non-financial assets, the FRC encourage companies to pay greater attention to:

• providing relevant information around significant judgements and key assumptions made in estimating the recoverable amount of assets and cash-generating units;
• explaining the sensitivity to changes in key assumptions, where reasonably possible changes could give rise to impairment of goodwill or material further adjustments to already-impaired assets. 

Review the following additional information on the FRC's website:

• Press release
• IFRS 9 thematic review
• IFRS 15 thematic review
• Impairment of non-financial assets thematic review

Discussion points included:

• Highlights & Key Developments
• Alignment of Part 4B with ISAE 3000
• Non-Assurance Services
• Fees
• Technology

Review the highlights and the podcast on the IESBA's website.

Overall, the AASB is very supportive of the IAASB’s efforts to obtain a greater understanding of the challenges that practitioners encounter in applying the ISAs in a scalable and proportionate manner.

The challenges in applying the ISAs require a solution that focuses on the complexity of the elements of an entity’s operations and financial statements rather than on the complexity of the entity. Therefore, the AASB believes that the most effective solution is to address within each ISA the ability to scale or modify requirements for the less complex elements of an entity’s operations and financial statements. Also, the solution needs to be practical and achievable in a reasonable timeframe.

However, the AASB does not believe that the development of a separate auditing standard for LCEs based on the ISAs is an appropriate solution.

Review the comment letter on the IAASB’s website.

CPAB has inspected 66 of 72 audit engagement files that will be reviewed by the end of 2019 across the four firms. To date, we have identified significant findings (deficiencies in the application of generally accepted auditing standards that could result in a restatement of the company’s financials) in 12 of those files. The total number of inspection findings to date is lower than 2018.

Most of these findings required the firm to carry out additional audit procedures to determine the need, if any, to restate the financial statements due to material error. The remaining findings required firms to add evidence to the audit file to show they had obtained sufficient and appropriate audit evidence with respect to a major balance sheet item or transaction stream.

CPAB expects firms to remediate file deficiencies before their reporting issuer’s next quarterly report. Where a restatement is required, the firm works with the reporting issuer and securities legal counsel to issue the restatement as soon as possible. No restatements have been required to date.

Review the report on CPAB's website.

Under the proposed new securities requirements, reporting issuers will be required to direct audit firms who are not subject to CPAB oversight, but complete a significant portion of audit work for a reporting issuer’s audit, to enter into an agreement with CPAB to access their files and inspect their work if such firms are not prepared to provide access to CPAB voluntarily upon request.

Known as component auditors, these audit firms complete some of the work that forms part of the evidence used to support an audit opinion. To assess whether sufficient audit evidence has been obtained to support an audit opinion, CPAB has determined it must be able to review all substantial audit work.

Review the press release on the CSA's website and the Staff Notice on the participating jurisdictions' website.

In her speech, she discusses the following:

• Nature of cyber threats
• Framework for effective responses
• Levers of financial regulators
• Baseline protections and best practices
• Response and recovery

Review the full speech on the PCAOB's website.

Key trends from this year’s review include:

• The total number of board seats occupied by women increased to 17 per cent in 2019, compared to 11 per cent in 2015.
• Seventy-three per cent of issuers had at least one woman on their board, an increase from 49 per cent in 2015.
• When board vacancies were filled, a third of those positions were filled by women.
• Five per cent of issuers had a female chair of their board.
• Half of issuers adopted a policy relating to the representation of women on their board, representing a significant increase since 2015.

Review the press release on the CSA's website and the Staff Notice on the participating jurisdictions' website.

Below is an analysis of all changes that were made to the work plan since our last analysis on September 3, 2019.

Standard-setting projects

• No changes

Maintenance projects

• Annual improvements — 2018-2020 cycle — discussions on feedback received on the exposure draft is expected to occur in November 2019 (previously fourth quarter of 2019); projects that are part of the overall project are:
  
  • Fees in the ‘10 per cent’ Test for derecognition of financial liabilities (Amendments to IFRS 9)
  • Lease incentives (Amendment to illustrative example 13 accompanying IFRS 16)
  • Subsidiary as a first-time adopter (Amendments to IFRS 1)
  • Taxation in fair value measurements (Amendments to IAS 41)
• Classification of liabilities as current or non-current (Amendments to IAS 1) — final amendments are now expected in the first quarter of 2020 (previously fourth quarter of 2019)
• IBOR reform and its effects on financial reporting (Phase 1) — final amendments were published on 26 September 2019; the project has therefore been removed from the work plan
• Onerous contracts — Cost of fulfilling a contract (Amendments to IAS 37) — the IASB decided on the future project direction and decided to proceed with final amendments (no date given)

Research projects

• SME Implementation Group draft Q&A — project has disappeared from the work plan
• Extractive activities — the review of research is now expected in the first half of 2020 (previously fourth quarter of 2019)
• Goodwill and impairment — a discussion paper is now expected in the first quarter of 2020 (previously fourth quarter of 2019)

Other projects

• 2020 Agenda Consultation — newly added to the work plan, a request for information is expected in the first half of 2020
• IFRS Taxonomy Update — Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) — newly added to the work plan, a proposed IFRS Taxonomy Update is expected in October 2019

The revised IASB work plan is available on the Board's website.

The focus of Mr. Hoogervorst's speech was the IASB's work programme for 2020, which will see three exposure drafts, two discussion papers, and three requests for views.

On individual projects, Mr. Hoogervorst spoke about

• Primary financial statements. The IASB plans to publish an exposure draft at the end of 2019. The IASB is looking at introducing new subtotals in the income statement, is looking at improving discipline around management performance measures, and wants to improve disaggregation.
• Goodwill and impairment. The IASB plans to publish a discussion paper in February 2020. While the IASB feels that the impairment model is not great, they are not sure whether any of the alternatives are better. By publishing a discussion paper, the IASB is hoping for new evidence and insights.
• Rate-regulated activities. The IASB will publish an exposure draft in the first half of 2020. The IASB has developed an accounting model that will improve the information to investors about what rights and obligations a company has and is looking for feedback whether they have got the model right.

The IASB is also going to consult on a revised Management Commentary Practice Statement, on proposals on business combinations under common control, on whether the IFRS for SMEs should be updated to reflect changes in full IFRSs, and on the future agenda of the IASB.

Review the full transcript of Mr. Hoogervorst's speech on the IASB's website.