Overall we support the proposals, although we have some concerns around certain aspects of the consultation. Our key comments are as follows:

• we believe that, since compliance with UK accounting standards is generally accepted as being necessary in order to give a true and fair view, the role of UK accounting standards will be significant under the new regime in guiding directors of small companies as to whether further disclosures may be necessary, in addition to those mandated by law, in order to present true and fair accounts;
• we question the value of the proposal to permit small companies to prepare an abbreviated balance sheet and profit and loss account for shareholders as such accounts will still need to give a true and fair view;
• we strongly support the provision of increased flexibility in the layout of primary statements, particularly to accommodate the application of IFRS layouts and terminology for companies adopting FRS 101;
• we believe that there should be one single definition of a public interest entity which should be applied consistently wherever it is used in UK company law;
• we believe that the audit exemption threshold should be consulted on as part of the implementation of the Audit Directive rather than as a separate consultation, making good on the deregulatory promises made in the Government’s 2011 Plan for Growth;
• we believe that it is essential that the requirements for LLPs are aligned with the requirements for companies with effect from the same date; and
• we recommend that the Government and the Financial Reporting Council work closely together to make the new regime available to companies as soon as possible, including permitting early adoption.

Further comments and full response to all questions raised in the invitation to comment are contained within the full comment letter which can be downloaded below.

Click for:

• Our response to the consultation
• Our previous news story on the consultation

EFRAG welcomes the publication of DP/2014/2 Reporting the Financial Effects of Rate Regulation and supports the IASB's decision to initially examine a generic type of rate regulation called 'defined rate regulation'. However, EFRAG stresses that the DP can only represent a starting point in the discussion:

As the project progresses, we believe the IASB will need to consider in which circumstances an entity's right to recover an agreed amount of revenue and obligations to perform certain activities creates enforceable rights and obligations that should be recognised in financial statements.

EFRAG also believes that the IASB may need to consider whether it should widen the scope of a potential future standard to require disclosures of the effects of rate regulation other than those where assets and liabilities are recognised.

EFRAG generally supports the accounting approach of developing specific IFRS accounting requirements to defer or accelerate the recognition of a combination of costs and revenue but "remains open" to a 'cost deferral approach' should further work of the IASB show that it might produce relevant information.

Comments on the draft comment letter are due by 31 December 2014. It is available on the EFRAG website.

The International Accounting Standards Board (IASB) published 'Annual Improvements to IFRSs 2012–2014 Cycle' in September 2014.

The improvements affect IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, IFRS 7 Financial Instruments: Disclosures, IAS 19 Employee Benefits, and IAS 34 Interim Financial Reporting.

EFRAG supports the adoption of these improvements and recommends their endorsement.  EFRAG’s initial assessment is that these improvements meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.     

EFRAG’s conclusion is supported by an Effects Study Report which considers the costs and benefits of implementing these improvements. EFRAG’s assessment is that the benefits for preparers and users in implementing these improvements outweigh the costs.

Comments are requested by 24 November 2014. 

Click for (all links to EFRAG website):

• Press release
• Draft endorsement advice and effects study report

The amendments were issued in September 2014 and affect IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, IFRS 7 Financial Instruments: Disclosures, IAS 19 Employee Benefits, and IAS 34 Interim Financial Reporting. Endorsement of the amendments is currently expected in the third quarter of 2015.

The endorsement status report, dated 24 October 2014, is available here.

The International Accounting Standards Board (IASB) published 'Equity Method in Separate Financial Statements (Amendments to IAS 27)' in August 2014. This amendment reinstates the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial statements. This means that an entity can account for investments in subsidiaries, joint ventures and associates in its separate financial statements:

• at cost,
• in accordance with IFRS 9 Financial Instruments (or IAS 39 Financial Instruments: Recognition and Measurement for entities that have not yet adopted IFRS 9), or
• using the equity method as described in IAS 28 Investments in Associates and Joint Ventures.

EFRAG supports the adoption of this amendment to IAS 27 and recommends its endorsement.  EFRAG’s initial assessment is that this amendment meets the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.     

EFRAG’s conclusion is supported by an Effects Study Report which considers the costs and benefits of implementing this amendment to IAS 27. EFRAG’s assessment is that the benefits for preparers and users in implementing this amendment outweigh the costs.

Comments are requested by 21 November 2014. 

Click for (all links to EFRAG website):

• Press release
• Draft endorsement advice and effects study report

The topics discussed at the meeting included:

• A view of current practices in the banking and insurance industries and from analysts on how the information is understood and used.
• Initial thoughts from IASB member Martin Edelmann and EFRAG Chairman Françoise Flores concerning the discussion paper.
• Initial thoughts from attendees on the DP and the view given by the EFRAG.

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

The amendments were issued in August 2014 and reinstate the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial statements. Endorsement of the amendments is currently expected in the third quarter of 2015.

The endorsement status report, dated 23 October 2014, is available here.

The full agenda for the meeting is summarised below:

Agenda papers from this meeting are available on the IASB's website.

Following its merger with the Investment Affairs division of the Association of British Insurers (ABI), the IMA is now responsible for issuing remuneration guidance setting out its members’ views on the role of shareholders and directors in relation to remuneration and the manner in which remuneration should be determined and structured.

Following the 2014 AGM season, the IMA has updated its Principles of Remuneration, noting that its members generally consider the payment of “allowances” to be inconsistent with the spirit of simplicity, clarity and pay for performance. Where a company uses such "allowances" as part of its overall remuneration package, the Remuneration Committee should clearly justify and explain why this is necessary.

The press release and revised Principles of Remuneration are available from the IMA website.