The conference will feature presentations by IASB Vice-Chairman Ian Mackintosh, IASB members (Stephen Cooper, Philippe Danjou, Martin Edelmann, Jan Engström, Gary Kabureck, Sue Lloyd and Mary Tokar), senior IASB technical staff and other IFRS experts.

Some of the topics to be covered at the conference include:

• The future of financial reporting
• IASB update:
  • Major IFRSs
  • Implementation
  • Conceptual framework
  • Research projects
• Keynote address
• Panel discussion on IFRS 9

The conference will also have break-out sessions featuring:

In addition, the conference will have special interest discussions on topical reporting issues of IFRS Disclosures and Financial Instruments.

More details, including registration information, are available on the IASB website.

Philippe Maystadt was appointed by EU Commissioner Barnier as a special advisor on 19 March 2013 to set out recommendations to “reinforce the EU's contribution to International Financial Reporting Standards (IFRS), and to improve the governance of the institutions developing these standards.” In his final report presented in November 2013, Mr Maystadt recommended transforming EFRAG with a view to strengthening the European Union's influence in international accounting standard-setting.

In his continued role, Mr Maystadt is expected to co-ordinate the efforts of public and private organisations in implementing the recommendations of the report. Commissioner Barnier commented:

The EU needs a sound framework for the development of high quality accounting standards. I am happy that Mr Maystadt agreed to continue his special mission to ensure that the system for the adoption of the International Financial Reporting Standards (IFRS) put in place by the European Union is effective and enables the EU to play its full role in the debate. I am confident that the expertise of Mr Maystadt will significantly benefit the swift implementation of the necessary reforms so that our undertakings and the users of their financial statements can as soon as possible benefit from high-quality international accounting standards.

Please click for the press release on the European Commission website.

The topics discussed were as follows (click through to access detailed Deloitte observer notes for each topic):

Wednesday, 29 January 2014

Items for continuing consideration

• IAS 12 – Recognition of deferred tax assets for unrealised losses
• IAS 12 – Recognition and measurement of deferred tax assets when an entity is loss making
• IAS 19 – Employee benefit plans with a guaranteed return on contributions or notional contributions
• IFRS 10 – An investment entity subsidiary that also provides investment-related services
• IFRS 10 – Exemption from preparing consolidated financial statements requirements

Finalisation of tentative agenda decisions

• IAS 29 – Applicability of the concept of financial capital maintenance defined in constant purchasing power units
• IAS 32 – Classification of mandatorily convertible instruments subject to a cap and a floor with an issuer option to convert into the maximum (fixed) number of shares
• IAS 32 – Classification of instruments that mandatorily convert into a variable number of shares upon a ‘non-viability’ contingent event

New issues

• IAS 32 – Classification of an instrument that is mandatorily convertible into a variable number of shares, subject to a cap and a floor

Items for continuing consideration (continued)

• IFRS 11 – Analysis of implementation issues

New issues (continued)

• IAS 12 – Impact of an internal reorganisation on deferred tax
• IAS 12 – Threshold of recognition of an asset on uncertain tax position

Feedback from the IASB

• IAS 1 – Disclosure requirements about an assessment of going concern (update on IASB's decision not to proceed with proposed amendments)

Administrative session

• Interpretations Committee work in progress

Thursday, 30 January 2014 (09:00-12:55)

New issues (continued)

• IFRS 3 & IFRS 10 – Identification of the acquirer in accordance with IFRS 3 and the parent in accordance with IFRS 10 in a stapling arrangement
• IFRS 10 – A non-investment entity’s application of the equity method for investment entity investees
• IAS 16 – Disclosure of carrying amount information for assets stated at revalued amounts
• IAS 37 – Measurement of liabilities under IAS 37 within the context of emission trading schemes
• IAS 28 – Inconsistency with paragraph 31 of IAS 2
• IAS 1 – Issues related to the application of IAS 1
• IAS 34 – Condensed statement of cash flows

Hilary Lindsay will take office as vice president on 4 June 2014 during the council meeting and will take over as vice president in June 2016, replacing current vice president Andrew Ratcliffe.

The press release can be found on the ICAEW website, here.

Highlights were the publication of:

• final comment letter on IASB DP A Review of the Conceptual Framework for Financial Reporting
• draft comment letter on IASB ED Annual Improvements to IFRSs 2012–2014 Cycle
• first papers in EFRAG's new Short Discussion Series
• final endorsement advice on IASB narrow scope amendment Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
• draft endorsement advice on the Annual Improvements to IFRSs 2010–2012 and 2011–2013 Cycles

Additional topics discussed in the newsletter are:

• IFRS 3 Business Combinations — Subsequent accounting for acquisition step-ups
• Long-term investment business models
• Accounting for macro hedge accounting
• IFRS 9 Financial Instruments — Impairment
• IFRS 11 Joint Arrangements
• Post-implementation review of IFRS 3
• IASB ED Equity Method: Share of Other Net Asset Changes — Proposed amendments to IAS 28

Click for the EFRAG Update (link to EFRAG website).

The role of the Financial Reporting Advisory Board (FRAB) is “to ensure that government financial reporting meets the best possible standards of financial reporting by following Generally Accepted Accounting Practice (GAAP) as far as possible”.  The FRAB includes representatives from the accountancy profession in the private and public sectors, academia and government bodies.  The board meets regularly to consider proposed changes to policy and practice. 

Key topics discussed during the meeting were:  

• The application of IFRS 13 ‘Fair Value Measurement' to value property, plant and equipment.  A paper was presented proposing that public sector assets that are not used to provide services directly to the public, and which are not subject to any service or other constraints that would restrict the ability of the reporting entity to sell the asset, should be measured at fair value in accordance with IFRS 13.
• Simplifying and streamlining annual reports and accounts (see below).
• Local authority accounting for schools and the interaction with IFRS 10 Consolidated Financial Statements. 
• An update on European Public Sector Accounting Standards and discussion of the consultation published by Eurostat.
• Government Financial Reporting Manual (FReM) 2013 – 14 and 2014 – 2015.
• Accounting for local authority transport infrastructure.

The board minutes are accompanied by a paper ‘FRAB (119) Draft Code of Practice on Local Authority Accounting 2014-15 with Annexes’.  This discusses the results of a consultation in July 2013 on a draft of the 2014/15 Code of Practice on Local Authority Accounting in the UK (“the Code”) and proposed consequential changes to the draft as a result.  The paper also discusses the responses to another consultation in July 2013 regarding proposals to simplify and streamline the presentation of Local Authority financial statements. 

There were no significant changes to the draft of the Code as a result of the consultation.  However the application of IFRS 13 is to be considered further by CIPFA/LASAAC in January and final amendments made to the Code.  The consultation responses also indicated that a number of local authorities would not be able to comply with the adoption of a depreciated replacement cost measurement for transport infrastructure assets by 2015/16.  A decision was made that these measurement requirements would be formally adopted in 2016/17 and this would be confirmed in the 2014/15 Code.

The key responses to the consultation to simplify and streamline the presentation of Local Authority financial statements were:

• Most of the respondents agreed with the comments in the consultation papers that the financial statements were too long and considered that they were overly complex for their users.  Respondents identified a need for further deliberation about who the users and potential users of financial statements are and the resultant difficulties that result on decisions of materiality.
• A significant number of respondents were concerned that the performance statements do not clearly present the key financial performance measure that local authorities measure and monitor themselves against i.e. the General Fund and Housing Revenue Account surplus or deficit.
• The CIPFA Service Reporting Code of Practice (which specifies the financial reporting requirements for the costs of services and is also used to report service cost in government statistical returns) and the segmental reporting note both add to the reporting burden and the complexity of the financial statements.

Click here for detailed minutes and other supporting documents on HM Treasury website.

Interested listeners have the ability to dial into the conference call.  Please click link for details of the registration on the EFRAG website.  The agenda can be accessed here. 

The summary brings together key findings from reports on: 

• Audit Committee reporting;
• Remuneration reporting;
• Presentation of market risk disclosures;
• Debt terms and maturity tables;
• Net debt reconciliations; and
• Operating cash flows. 

The key findings highlight ways to improve disclosures to provide information that is important to investors.

The full summary can be obtained from the FRC website.

The agenda for the meeting is summarised below:

Agenda papers for this meeting will be made available on the IASB's website in due course.

Following the introduction of the <IR> Framework in December 2013, the three organisations sponsoring the research award have identified three areas that need to be developed further.  They therefore invite research proposals addressing the following areas:

1. Meeting users' information needs – looking at what users of integrated reports from large private sector, for-profit companies, want to see. This project would focus on the similarities and differences between the needs and expectations of different equity and debt holders, and others who provide financial capital.
2. Materiality and completeness vs. conciseness in Integrated Reporting – focusing on the theoretical, policy and practical issues concerning the role of materiality in determining the balance between completeness and conciseness in an integrated report.
3. Organisational characteristics and Integrated Reporting – focusing on the theoretical, policy and practical issues concerning application of the Framework to different types of organisations in different jurisdictions and under different circumstances.

A combined sum of up to £50,000 will be awarded for up to three projects that meet the criteria set. The deadline for research proposal submissions is 28 February 2014.

Please click for more information on the ACCA website:

• Press release
• Call for Research Proposals: Integrated Reporting

Participants will have the opportunity to discuss the approach for European standard-setting in public sector accounting with European and national policymakers, representatives from the public sector, accountants and auditors. The roundtable is free of charge but the number of participants is limited.

Please click for more information on the FEE website.