In relation to the global adoption and enforcement of accounting and auditing standards, IFAC supports the adoption of the auditor independence requirements set out in the Code of Ethics for Professional Accountants, issued by IESBA.

The letter goes on to note:

IFAC considers it critical that the G-20 continue its momentum and ambition for regulatory reform and convergence that has been developed over the last few years... IFAC recognizes that there are some areas where global standards may need further development and enhancement. However, the way forward is to encourage and resource improvements in those global standards, rather than have individual jurisdictions make country-specific revisions and amendments. Additionally, it is important that G-20 nations are discouraged from implementing national regulatory reforms, which involve legislative changes that have extraterritorial impacts.

In relation to the recommendation the G20 support of the IIRC's integrated reporting framework, the letter notes:

A common criticism of current financial reporting regimes is that they often fail to appropriately recognize the social, environmental, and long-term economic context within which businesses—whether they are in the public sector or private sector, or whether they are large and complex or small—operate. A thorough understanding of this context is imperative if the objectives of global sustainability and growth are to be achieved. As evidenced in the global financial crisis, a focus on short-term risks and rewards can encourage behaviors that lead to inappropriate and disastrous outcomes.

The letter covers a number of other recommendations, including the development of sustainable organisations, strengthening the accountancy profession in developing and emerging economies, and greater accountability and transparency in the management of public resources.

Click for access to the full letter (link to IFAC website).

At today’s joint IASB/FASB meeting, the Boards agreed on a proposed approach that will allow lease contracts to be accounted for in one of two ways: 1) using an approach similar to that proposed in the 2010 Lease exposure draft and 2) an approach that results in a straight-line lease expense.

Any conclusions reached by the Boards are preliminary. The Boards expect to issue a joint exposure draft in the fourth quarter of 2012.

Click for:

• IASB press release (link to the IASB website).
• Our Leases project summary page.

The downloadable PDF is available in the eIFRS Online Subscriber Area of the IASB's website for access by both Comprehensive and eIFRS subscribers.

Note: On 27 June 2012, the IFRS Foundation announced that this publication is also available for purchase in hard copy printed form.  Click for more information (link to IASB website).

The purpose of the EFRAG FIWG "is to advise and provide other input to EFRAG TEG’s discussions on all aspects of financial instrument financial reporting matters to support EFRAG influencing the development of IFRS and IFRS interpretations on financial instruments specific matters and their application within Europe through technical analysis and consultation with organisation representatives of the financial services world in Europe and others". The size of the group is limited to up to 15 members.

The EFRAG FIWG meets once every two months (or as necessary) in Brussels.

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

In his "Report of the Chairman of the IASB" Hans Hoogervorst assures constituents: "It is not surprising that our friends around the world want some time for the dust to settle. That is why determining the IASB’s future work programme will involve cherry-picking the most important areas where change is required. Let’s fix what needs fixing, and no more."

Regarding the question how things will be fixed, Hoogervorst again speaks about the research programme that the IASB wants to introduce as a means to formalise relations with national standard setters. He admits that involvement of national standard setters will be weighted by their relative strengths and the networks they represent.

Since the IASB started we have maintained a healthy and positive relationship with national standard-setters. [...] As extensive and positive as those interactions have been, now is the time to add more structure and formality to our relationships with these important members of the IFRS community. [...] For some bodies, the new model will replace joint convergence programmes. Those bodies will want to be assured that they remain involved in a meaningful way. And we cannot afford to lose access to their people or to their networks of investors and preparers. [...] It is also clear that some of these bodies are more able to participate in our standard-setting processes because they are better resourced and more experienced in standard-setting. Any formalisation of our structure will need to reflect their relative strengths.

The full report can be downloaded from the IASB's website. In addition, the IFRS Foundation has made available XBRL instance documents of the financial statements.

In its comment letter, EFRAG agrees with the IFRS Interpretations Committee's conclusion during its May 2012 meeting that restructuring of the GGBs would result in derecognition of the old GGBs, and EFRAG agrees with the tentative decision to not add a project to the Committee's agenda. However, EFRAG believes that guidance on debt restructurings should be explicitly stated in IFRSs. As such, it noted that the Committee should recommend to the IASB that accounting for debt restructurings and modifications should be part of the IASB's finalisation of IFRS 9 Financial Instruments.

Comments on the letter are invited by 12 July 2012. The draft comment letter can be downloaded via the press release on EFRAG's website.

EFRAG agrees with most proposals in the Exposure Draft that was published in May 2012. However, EFRAG is concerned about the proposed amendments to the following two standards:

• IFRS 3 Business Combinations — Accounting for contingent consideration in a business combination
  EFRAG supports the proposed amendments but believes that the IASB should also propose consequential amendments to IAS 39 Financial Instruments: Recognition and Measurement and reiterates its request to amend IAS 39 to align the accounting for own credit risk on financial liabilities measured at fair value with the requirements in IFRS 9 Financial Instruments.
• IAS 12 Income Taxes — Recognition of deferred tax assets for unrealised losses
  EFRAG appreciates the IASB’s responsiveness to this practice issue, but has concerns about the wider implications of the proposed amendments in other circumstances.

Comments on the letter are invited by 22 August 2012. The draft comment letter can be downloaded via the press release on EFRAG's website.

The following is a summary of the changes in the revised work plan, which is dated 1 June 2012:

• Limited reconsideration of IFRS 9 (classification and measurement) - the target date for the exposure draft is now expected in the fourth quarter of 2012 (previously second half of 2012)
• Macro hedge accounting - the target date for a consultative document remains the second half of 2012, however the work plan now confirms the IASB's decision to issue a Discussion Paper rather than an Exposure Draft
• IAS 8 effective dates and transition methods - the work plan reflects the IASB's recent decision (at the May IASB meeting) to add a topic to its agenda to amend the requirements in IAS 8 in relation to the disclosures about new and revised accounting standards
• Annual improvements 2010-2012 - the target completion date for this cycle of annual improvements (for which the exposure draft was recently issued) has now been scheduled for the first quarter of 2013 (previously not scheduled)
• Investment entities - a target completion date for the finalised IFRS on the proposed exemption from consolidation for certain investment entities has been introduced, and is expected in the second half of 2012.

The work plan confirms the following milestones are expected to be reached by the end of June:

• Agenda Consultation - release of Feedback Statement
• General hedge accounting - review draft of finalised IFRS
• IFRS 10 transition guidance - finalised amendment
• Post-implementation review of IFRS 8 - release of a Request for Information.

Click for IASB work plan as of 1 June 2012 (link to IASB website). We have updated our project pages to reflect the updated work plan and other known developments.