August

New research on the value of 'extra-financial' disclosure to investors and analysts

06 Aug, 2012

A new research report has been issued exploring how investors and analysts source, use and are influenced by so-called 'extra-financial information', which includes Environmental, Social and Governance (ESG) information and other non-financial information. The report shows that for the majority of investors and analysts surveyed, extra-financial information is very relevant or relevant to investment decision‑making or analysis.

The report, entitled The value of extra-financial disclosure - What investors and analysts said is the result of a survey commissioned by the Global Reporting Initiative (GRI) and The Prince’s Accounting for Sustainability Project (A4S), and conducted by Radley Yeldar.  The survey involved a relatively small sample of investors and analysts but is considered "a useful snapshot of investor and analyst sentiment towards extra-financial disclosure at the present time".

Some of the findings from the survey included:

  • Over 80% of the research sample believe that extra-financial information is very relevant or relevant to their investment decision‑making or analysis
  • Investors and analysts use multiple sources to gather relevant financial and extra-financial information but show a strong preference for sources which are more comprehensive and specialised - with direct engagement with Board level representatives, followed by formal reporting channels such as the sustainability report, annual report or integrated report are most influential
  • Over 80% of investors and analysts surveyed  believe that integrated reporting will deliver benefits to their analysis and company assessments - seeing integrated reporting as useful or very useful for increasing the reliability, accessibility, relevance and comparability of extra-financial information, as well as improving assessments of future company performance
  • A majority of respondents were not familiar with eXtensible Business Reporting Language (XBRL), with less than 10% of those surveyed indicating they use XBRL and that it affects how they receive financial information.

Click for more information (link to GRI website).

Summary of the July 2012 Trustees’ meeting

02 Aug, 2012

The IASB has posted to its website a summary of meeting of the Trustees of the IFRS Foundation that took place in Washington on 12 July 2012.

The Trustees of the IFRS Foundation, the body responsible for the governance and oversight of the International Accounting Standards Board (IASB), discussed the following topics:

  • Report of the Chairman of the IASB concerning the four main Memorandum of Understanding (MoU) and convergence projects as well as the progress the IASB was making in determining its future agenda.
  • Report of the Chairman of the IFRS Advisory Council on the issues discussed at the June 2012 meeting of the Council and the draft Due Process Handbook.
  • Report of the Chairman of the Due Process Oversight Committee on initial feedback received on the draft Due Process Handbook, which is being exposed for public comment, and on the comprehensive review of the IFRS for SMEs.
  • Update on the IFRS for SMEs
  • Regional outreach activity on whether and how to incorporate IFRSs into the US financial reporting regime.
  • Meeting with the IFRS Foundation Monitoring Board regarding the progress made in following up the recommendations of their respective reviews of the governance and strategy of the organisation.

Please click for the full summary on the IASB's website. The next meeting of the Trustees of the IFRS Foundation is scheduled for 12 October 2012.

You can also access the preliminary and unofficial notes taken by Deloitte observers for this meeting.

IVSC calls for views on valuation of trade related property

02 Aug, 2012

The International Valuation Standards Council (IVSC) has released a discussion paper on the valuation of trade related property, which includes buildings or other structures that are purpose built for a specific type of business activity. Examples of trade related property include hotels, theatres and fuel stations, together with others such as bars, restaurants, casinos, clubs, and healthcare properties.

The IVSC had previously issued a Guidance Note, GN 12 The Valuation of Trade Related Property and had issued an exposure draft which proposed to update and reissue the guidance as part of its revamped valuation standards, which were ultimately issued in July 2011.

However,  the IVSC chose not to finalise the valuation standard on this topic because there were questions whether sufficient guidance on trade related property was already included in other valuation standards, a perceived confusion of a real property interest with a business, and the need to consider the need for specific valuation guidance of this type.

The discussion paper seeks constituent input as to whether it is practical and necessary to define a distinct category of real property for valuation purposes based on the degree to which the buildings or any other structures are specialised, and explores various issues in undertaking such a valuation.

The IVSC is seeking comments on the Discussion Paper by 31 October 2012.  Click for:

Stay Tuned Online – IFRS and UK GAAP update

01 Aug, 2012

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRSs and other financial reporting issues.

Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July, and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation.

The following topics were covered in the July 2012 webcast:

  • Latest IFRS developments
  • Other UK reporting developments
  • Eurozone uncertainties
  • The future for financial instruments

To access the recording click here.

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