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News

IIRC (International Integrated Reporting Committee) (green) Image

IIRC launches a new <IR> Academic Database

14 Aug 2018

The International Integrated Reporting Council (IIRC) has launched a new <IR> Academic Database. The database highlights potential positive benefits of adopting integrated reporting (<IR>) and emerging best practice based on academic studies.

The <IR> Academic Database is run on a voluntary basis by the<IR> Academic Network; a network that provides a space for connecting theory and practice by bridging academia to those who directly prepare and benefit from integrated reports.

Over 1,600 companies in 65 countries are using integrated reporting. Research included in the database concludes that integrated reporting leads to increased stock liquidity, better performance, higher market valuation and a longer-term investor base for the businesses that adopt it.

The database, which represents the most comprehensive collection of scholarly investigation into the impact of integrated reporting in the world, will be the focal point for academic research on integrated reporting in the future and provides opportunity for further study, complementing the IIRC’s global <IR> Academic Network.

The press release and the database, a freely available resource, can be found on the integrated reporting website.

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IASB releases fifth FICE DP webast

13 Aug 2018

The IASB has released its fifth webcast in a series of web presentations related to Discussion Paper, “Financial Instruments With Characteristics of Equity.”

This webcast discusses the Board’s preferred approach to presenting equity instruments.

The next and final webcast in the series will cover the pre­sen­ta­tion of financial li­a­bil­i­ties.

For more in­for­ma­tion, see the press release on the IASB’s website.

IFRS AC meeting (mid blue) Image

Agenda for the September 2018 IFRS Advisory Council meeting

09 Aug 2018

An agenda has been released for the upcoming meeting of the IFRS Advisory Council, which is being held in London on 4–5 September 2018.

A summary of the agenda is set out below:

Tuesday 4 September 2018

Morning session (09:00-13:00)

  • Welcome and Chair's preview
  • Tee-up strategic trends
    • Breakout session on strategic trends
  • Tee-up due process review
  • Tee up addressing perceptions about timeliness
    • Breakout session on addressing perceptions about timeliness

Afternoon session (14:00-17:45)

  • Tee-up comment letters
    • Breakout session on comment letters
  • Feedback session on addressing perceptions about timeliness
  • Update on the Board and the Foundation
  • Feedback session on comment letters

Wednesday 5 September 2018

Morning session (9:00-12:00)

  • Tee-up strategic trends and the Foundation
    • Breakout session on strategic trends and the Foundation
  • Tee-up IFRS Taxonomy
    • Breakout session on IFRS Taxonomy

Afternoon session (13:15-14:50)

  • Recap on observed strategic trends
  • Feedback session on IFRS Taxonomy
  • Summary of advice received on the Due Process review
  • Sum up meeting

Agenda papers for the meeting are available on the IASB website.

IFRS Foundation (blue) Image

IFRS Foundation moves London office

07 Aug 2018

The IFRS Foundation has relocated its offices within London. The new address for the IFRS Foundation — including the IASB — is 7 Westferry Circus, Canary Wharf, London. All email addresses and phone numbers will remain the same.

For more information, see the press release on the IASB's website.

GRI (Global Reporting Initiative) (green) Image

Global Reporting Initiative and the United Nations Global Compact release Practical Guide on integrating the Sustainable Development Goals into corporate reporting

06 Aug 2018

The Global Reporting Initiative (GRI) and United Nations Global Compact (UNGC) have released a Practical Guide on integrating the Sustainable Development Goals (SDGs) into corporate reporting. The guide is intended to help companies of all sizes to prioritise their SDG targets, take action and report on progress.

Endorsed by all 193 United Nations Member States in 2015, the 2030 Agenda and its Sustainable Development Goals focus global efforts and attention on 17 pressing issues. The SDGs are becoming increasingly important for governments, investors and businesses, as they are ‘an articulation of the world’s most pressing environmental, social and economic issues and, as such, act as a definitive list of the material ESG (environmental, social and governance) perspectives that should be taken into account as part of an investor’s fiduciary duty.’

The practical guide outlines a three step process to embed SDGs into existing business and reporting processes. The guide highlights that the recent GRI publication, Business Reporting on the SDGs: An Analysis of the Goals and Targets, should also be used as part of a company’s regular reporting cycle.

The three steps, outlined for companies, in the guide are as follows:

  1. Define priority SDG targets – including understanding the SDGs and their associated targets, conducting principled prioritisation of SDG targets and defining SDG-related report content. This step is focussed on determining which SDG targets should be prioritised based on an assessment of risks and benefits to people and the environment. 
  2. Measure and analyse – including setting business objectives, selecting appropriate disclosures and collecting and analysing data. The purpose of this step is to identify and align objectives and strategies to contribute to priority SDG targets.
  3. Report, integrate and implement change – including consideration of good practice reporting, consideration of data users’ information needs and reporting and implementing change. This step is focussed on setting out what is needed for putting together the content of the external report and reflecting internally on implementing change.

The guide should be used together with other relevant tools released by GRI, the UN Global Compact and their partners, in particular Business Reporting on the SDGs: An Analysis of the Goals and Targets, In Focus: Addressing Investors Needs in Business Reporting on the SDGs and the SDG Compass.

The Financial Reporting Council (FRC) recently referred to the UN Sustainable Development Goals in their Guidance on Board Effectiveness report when stating voluntary frameworks that boards may wish to refer to in identifying social and environmental considerations in their company strategies.

A press release and the full practical guide can be found on the GRI’s website.

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

EFRAG TEG meeting 8 August 2018

03 Aug 2018

The European Financial Reporting Advisory Group (EFRAG) will hold a TEG meeting on 8 August 2018 in Brussels.

An agenda and details on how to register for the meeting can be found on the EFRAG website.

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

EFRAG seeks TEG Chairman and CEO

02 Aug 2018

The European Financial Reporting Advisory Group (EFRAG) is searching for candidates to fill the position of Chairman and CEO for its Technical Expert Group (TEG). Current Chairman and CEO, Andrew Watchman, is not eligible for reappointment due to his UK nationality.

Mr. Watchman's term expires on 31 March 2019; the new Chairman and CEO would begin as of 1 April 2019. The EFRAG notes that eligible candidates should apply by 8 October 2018.

For more information, see the press release on the EFRAG's website.

 

FRC Image

FRC publishes revised Guidance on the Strategic Report

02 Aug 2018

The Financial Reporting Council (FRC) has published revised Guidance on the Strategic Report encouraging companies to consider wider stakeholders and broader matters that impact performance over the longer term.

The 2018 Guidance has been enhanced to recognise the increasing importance of non-financial reporting. The FRC believes the integration of non-financial information into the strategic report is a key part of telling a company's story.

The 2018 Guidance places a greater focus on the directors' duty to promote the success of the company under section 172 of the Companies Act 2006. This was complemented by new legislation that introduces a specific reporting requirement on how directors regard broader matters when performing their duty, including considering the interests of employees, suppliers, customers and other stakeholders as well as impacts on the community and environment. The new legislation is applicable to large companies for financial years beginning on or after 1 January 2019.

A press release, the 2018 Guidance on the Strategic Report and a Feedback Statement on the Amendments to Guidance on the Strategic Report are available on the FRC website.

Our related Need to know publications on the FRC's consultation on the amendments to the Guidance and the new legislation are available on this website.

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Summary of the July 2018 ITCG meeting

02 Aug 2018

The IASB has published the summary to the IFRS Taxonomy Consultative Group (ITCG) meeting held via conference call on 11 July 2018.

The ITCG discussed the following:

  • Common reporting practice analysis of the disclosure requirements in IFRS 13 Fair Value Measurement.
  • Update on IFRS Taxonomy activities.

For more information, see the summary on the IASB’s website.

UKGAAP Image

Comments invited on updated draft SORP for Limited Liability Partnerships

02 Aug 2018

The Consultative Committee of Accountancy Bodies (CCAB) has published an Exposure Draft on an updated Statement of Recommended Practice (SORP) which sets out a framework for accounting by Limited Liability Partnerships (LLPs) (“LLP SORP”). Comments are invited until 17 October 2018.

The Financial Reporting Council (FRC) has approved the CCAB bodies for the purpose of issuing a recognised SORP for Limited Liability Partnerships incorporated in Great Britain under the Limited Liability Partnerships Act 2000. The members of CCAB are; The Institute of Chartered Accountants in England and Wales (ICAEW), The Institute of Chartered Accountants of Scotland (ICAS), The Institute of Chartered Accountants in Ireland (ICAI), The Association of Chartered Certified Accountants (ACCA) and The Chartered Institute of Public Finance and Accountancy (CIPFA).

SORPS issued by CCAB apply to LLPs preparing accounts under UK GAAP to present a ‘true and fair view’. CCAB has stated that “the underlying purpose of the SORP is to deal with issues that are specific to LLPs and ensure that, as far as possible, LLPs present financial statements that are comparable with those of other entities”.

The Exposure Draft proposes updates to the LLP SORP which are required as a result of amendments to FRS 102 resulting from the first Triennial Review of the Standard in December 2017.

Updates are proposed to:

  • the guidance on cash flow statement presentation to reflect the new requirement to disclose the changes in net debt between the beginning and end of the financial period;
  • the guidance on accounting by small LLPs to reflect the simpler recognition and measurement requirements available to small entities when accounting for certain loans;
  • provide additional guidance on the revised recognition rules for intangibles assets acquired in a business combination; and,
  • the guidance on merger accounting to reflect the extended definition of a group reconstruction.

In addition other minor clarifications have been made to ensure consistency with FRS 102.

The final SORP will be effective for accounting periods beginning on or after 1 January 2019 with earlier adoption permitted subject to certain exceptions.

Click for (all links to CCAB website):

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