• Editorial Corrections to IFRSs (link to IASB website).
• Our 29 June 2011 article.

The communiqué released outlines various responses and reforms in the financial sector, including in relation to over the counter (OTC) derivatives, Basel reforms on banking regulation and reducing over-reliance on external credit ratings. The communiqué also notes the reaffirming of the "objective to achieve a single set of high quality global accounting standards", without providing any documented deadlines for achieving the objective.

The full communiqué is available on the G20 website.

As reported earlier, the European Financial Reporting Advisory Group (EFRAG) will organise outreach events on the IASB consultation on its future work programme published in July 2011.

All dates and places have now been confirmed. Of special interest is the joint EFRAG and European Commission European Outreach Event on Friday 25 November. For further information on all events please go to the outreach project page on the EFRAG's website. Registration information is available in the invitation for each meeting.

The aim of the reforms is to create an FRC that is clearer about its role and purpose, narrowing its focus to areas of greatest concern to the operation of the capital markets and reinforcing its independence. The consultation also proposes replacing the FRC's existing seven operating bodies with two Board Committees – one focusing on Codes and Standards, the other on Conduct.

Please click for the FRC press release and access to the consultation (all links to FRC website). Responses to the consultation are invited by 10 January 2012.

The work plan, which has been approved by IESBA, the IESBA Consultative Advisory Group, and the Public Interest Oversight Board (PIOB), contains the following priorities:

• Development of standards. The IESBA intends to progress projects on inadvertent violations of the Code of Ethics for Professional Accountants (Code) (finalised standard expected Q1 2012), conflicts of interest (ED expected Q4 2011) and responding to fraud and illegal acts (ED expected Q4 2011)
• Adoption and implementation. The IESBA plans to continue to assess what additional material or activities would be useful to support those who are adopting and implementing the Code
• Convergence. The IESBA will further its objective of achieving convergence of the Code and national standards and regulations by identifying improvements, comparing the Code to standards and regulations of select jurisdictions and increased outreach efforts.

Click for IESBA press release (link to IFAC website).

This report continues a body of work carried out on an annual basis since 2008 by the predecessor of the European Banking Authority (EBA), the Committee of European Banking Supervisors (CEBS). Pillar 3 reports are of special interest because of the interaction between Pillar 3 and IFRS 7 requirements. EBA hopes to initiate a discussion on this issue.

Overall, EBA finds "that banks have made efforts to improve their disclosures and to convey their risk profile in a comprehensive way to market participants." However, the report also finds that some of the findings from the last report published in June 2010 remain valid.

Please click for (all links to EBA website):

• EBA press release
• Follow-up review of banks' transparency in their 2010 Pillar 3 reports (PDF 747k)

The Lab is expected to focus on helping quoted UK companies communicate more effectively with investors and analysts. Listed companies from all industries and of all sizes are being invited to participate, along with professional investors and the retail shareholder community.

The priorities of the Lab will be determined primarily by companies and investors. Projects that have been suggested to date include relatively simple improvements to the notes to the financial statements, a review of the effectiveness of elements of narrative reporting and governance information, the potential to revisit the use of websites versus physical reports, and the materiality of specific disclosures.

The establishment of the Lab follows other initiatives such as the United Kingdom Accounting Standards Board report on cutting clutter, the Institute of Chartered Accountants of Scotland (ICAS) and the New Zealand Institute of Chartered Accountants (NZICA) report on reducing disclosures under IFRSs, and the wider call for integrated reporting.

Click for FRC press release (link to UK FRC website).

Policy Position Paper 1, Regulation of the Accountancy Profession, was first issued by IFAC in December 2007. The revised paper includes a new section highlighting the importance of global regulatory convergence, including the adoption and implementation of high-quality standards. IFAC recognises that regulation of the accountancy profession is primarily conducted at a national level. Therefore, in IFAC's view, to achieve international convergence, national regulation should aim to endorse and implement principles, approaches, and obligations outlined in material issued by authoritative international bodies.

Policy Position Paper 3, International Standard Setting in the Public Interest, was issued by IFAC in December 2008. The revised and updated paper describes how current governance arrangements and independent standard-setting boards supported by IFAC operate in the public interest and address the need for legitimacy, transparency, and performance. The paper includes a brief history of IFAC's governance structure (such as the 'IFAC Reforms') and notes that the IFAC Board is considering amendments to the governance process of the International Public Sector Accounting Standards Board (IPSASB), including the possibility of public oversight by the Public Interest Oversight Board (PIOB).

Click for IFAC press release (link to IFAC website).

'Ecosystem services' (ES) is a term used to capture the benefits derived from ecosystems, such as food, pharmaceutical products, timber, soil fertility, pollination, and freshwater.

In cooperation with the United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC) and consultancy CREM, GRI proposes a new approach for developing sustainability reporting indicators to help companies report their impacts and reliance on ecosystem services.

The research publication elaborates on what ecosystem services are, and in which ways organisations interact with them and how to factor ecosystem services into their long term strategy and operations. The publication suggests indicators that organisations could use to assess and report their impacts on ecosystem services, discussing both narrative reporting and performance reporting.

The publication builds on related initiatives around 'natural capital' such as The Economics of Ecosystems and Biodiversity study (TEEB), the World Business Council for Sustainable Development (WBCSD) Corporate Ecosystem Valuation (CEV) Guide and The University of Cambridge Natural Capital Leaders Platform report (issued in June 2011). The GRI publication represents a move towards incorporating ecosystem services information into sustainability reporting and ultimately integrated reporting.

Click for GRI press release (link to GRI website).

Click for our earlier story on exposure draft of proposed amendments to IFRS.