August

Summary of the joint CMAC/GPF June 2015 meeting

21 Aug, 2015

The IASB has released a summary of the Capital Markets Advisory Committee (CMAC) joint meeting with the Global Preparers Forum (GPF), which was held in London on 11–12 June 2015.

The topics discussed at the meeting included:

  •  IASB Update 
  • Conceptual Framework
    • Reporting financial performance
    • Measurement
  • Provisions, Contingent Liabilities and Contingent Assets
    • About the research project
    • Recognition criteria
    • Measurement requirements
  • Pollutant Pricing Mechanisms
    • Recognising the allowances and obligation
    • Measuring the allowances
    • Reporting gains and losses
  • Disclosure Initiative
  • IFRS Interpretations Committee Update
    • Variable payments on purchase of PP&E and intangible assets
    • IFRIC 12 Service Concession Arrangements: variable payments by operator to grantor

The next GPF meeting will take place on 4 November 2015 and the next CMAC meeting will occur on 6 November 2015.

The full meeting summary is available on the IASB's website.

World Standard-setters meeting programme available

21 Aug, 2015

A draft programme has been released for the upcoming World Standard-setters meeting, which is being held in London on 28-29 September 2015.

A summary of the programme is set out below:

Monday, 28 September 2015 (09:00 - 18:30)

  • Welcome and IASB update
  • Research update
    • Accounting for dynamic risk management
    • Rate-regulated activities
    • Pollutant pricing mechanisms
  • Implementation and education update
  • Update on jurisdictional profiles
  • IFRS Foundation's review of structure and effectiveness
  • Agenda consultation
  • Small group discussions on the review of structure and effectiveness and the agenda
    consultation
  • Feedback from the small group discussions on the review of structure and effectiveness and the agenda
  • Optional sessions (two iterations)
    • IFRS 15 Revenue from Contracts with Customers
    • IFRS 9 Financial Instruments
    • Leases
    • IFRS for SMEs
    • Insurance contracts

Tuesday, 29 September 2015 (08:00 - 13:30)

  • Optional session with the translations adoption copyright team
  • Small group discussions on 'How the Conceptual Framework changes the future'
  • Feedback from the small group discussions on 'How the Conceptual Framework changes the future'
  • Disclosure initiative
  • Optional Q&A session on the Conceptual Framework

Papers for the meeting are expected to be made available in due course on the IASB's website.  The WSS meeting will be immediately followed by a meeting of the International Forum of Accounting Standard Setters (IFASS).

Second IASB Research Forum

21 Aug, 2015

On 11 October 2015, the second IASB Research Forum will be held in Hong Kong offering an interdisciplinary platform for academics from around the world to exchange their views with peers and with members of the International Accounting Standards Board (IASB) on topics that address the interaction between international financial reporting requirements, policy and the functioning of capital markets. The topic of the second research forum will be 'Consequences of IFRS for Capital Markets, Managers, Auditors and Standard-setters'.

The Research Forum will feature six paper presentations:

  • Other Comprehensive Income: A Review and Directions for Future Research
  • Non - GAAP Earnings Disclosures and IFRS
  • The Impact of IFRS Goodwill Reporting on Financial Analysts’ Equity Valuation Judgements: Some Experimental Evidence
  • Longer Term Audit Costs of IFRS and the Differential Impact of Implied Auditor Cost Structures
  • Unrealized Earnings, Dividends and Reporting Aggressiveness: An Examination of Firms’ Behaviour in the Era of Fair Value Accounting
  • An Evaluation of Asset Impairments by Australian Firms and Whether This Was Impacted by AASB 136

There will also be a panel discussion on 'The Role of Financial Statements in Reporting Financial Performance' with panelists Mary Barth (Stanford University), Gary Biddle (University of Hong Kong), Hans Hoogervorst (IASB), and Katherine Schipper (Duke University).

Please click for more information and the full programme on the IASB website.

EFRAG conference on the conceptual framework and European expectations

21 Aug, 2015

On 23 September 2015, the European Financial Reporting Advisory Group (EFRAG) will host a conference on 'Conceptual Framework for Financial Reporting - will it meet European expectations?' in Brussels.

At the conference, the results of a study on professional investors’ financial information usage will be presented. In addition, a representative of the IASB will provide a presentation of ED/2015/3 Conceptual Framework for Financial Reporting. The ED will then be debated by participants and a panel consisting of representatives from National Standard-Setters, the European Parliament, users of financial statements, the IASB, EFRAG, and academics.

Please click for the press release, the formal invitation and the full programme on the EFRAG website.

Charity Commission findings into charities that report low charitable expenditure

20 Aug, 2015

The Charity Commission has published the findings of a review carried out into charities that reported charitable expenditure which was less than 10 per-cent of their total income.

By law, charities are required to spend their income within a reasonable period of time on achieving their charitable purposes.  The review was conducted due to the perceived risk that those charities reporting low charitable expenditure might not be using their income to achieve the charity’s aims.

The Charity Commission reviewed part B of the annual returns of charities to review the level of charitable expenditure against total income – this consisted only of those larger charities with incomes over £500,000.    An initial sample of 443 charities was identified that reported charitable expenditure in their annual returns at less than 10 per-cent of total income in the latest filed accounts.  A sample of 188 charities was then selected for further review to determine whether the charity’s trustees’ annual report and accounts provided a reasonable explanation for the low level of charitable expenditure.

Findings indicated:

  • For 57 per-cent of charities sampled, there was a valid reason for reporting a low level of charitable expenditure.
  • For 27 per-cent of charities sampled, the annual return had been completed incorrectly where charitable expenditure had been included within ‘other’ expenditure categories.  Findings indicated that these charities had actually spent an average of 89 per-cent of their income on charitable activity.
  • For 15 per-cent of charities sampled, the accounts understated the level of charitable expenditure.  For these charities, the accounts included amounts that appeared charitable in nature but were included within ‘other’ categories.
  • For the remaining samples, the accounts did not state the amount of charitable expenditure as was required by the Charities Statement of Recommended Practice (SORP) that those charities should have been following.

The Charity Commission highlights that the findings “indicate that many larger charities do not fully understand, or are failing to comply with, the reporting and accounting requirements that apply to them”.  It also highlights lessons for Charity Trustees to ensure that they “have a good understanding of their charity’s activities and how this is reported in their annual reports, accounts and annual returns”.

The full findings are available on the Charity Commission website.

2015 IFRS 'Green Book' coming soon

20 Aug, 2015

The IFRS Foundation has announced that 'A Guide through IFRS 2015' will be available soon.

This volume (nicknamed the "Green Book") will include the full text of the Standards and Interpretations and accompanying documents (such as the Basis for Conclusions) issued by the IASB as at 1 July 2015 with extensive cross-references and other annotations. This edition does not contain documents that are being replaced or superseded but remain applicable if a reporting entity chooses not to adopt the newer versions early.

The new requirements since 1 July 2014 include:

The Green Book will sell for £96 plus shipping for the two book set (academic, developing country and volume discounts apply). More information and ordering details are available on the IASB's eIFRS website.

Third instalment of the IASB's Conceptual Framework webcast series

20 Aug, 2015

In August 2015, the IASB launched a webcast series on the proposed changes to its Conceptual Framework. Eight pre-recorded webcasts will be posted to the IASB's website weekly. The third instalment was posted today.

The on-demand webcasts will provide detailed discussions of each part of the IASB's May 2015 Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting.

The webcast on Chapter 6 — Measurement is available today. For information about the upcoming webcasts and a complete archive, see the webcast page on the IASB's website.

AAOIFI creates new technical board for Islamic accounting

20 Aug, 2015

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) invites nominations for two new technical boards it intends to establish: the AAOIFI Accounting Board and the AAOIFI Governance and Ethics Board. These two boards will be responsible for developing and revising AAOIFI standards on accounting, auditing, ethics and governance. The AAOIFI Sharia'a Board will continue to be responsible for AAOIFI Sharia'a standards.

As a leading standard-setter for the international Islamic finance industry, AAOIFI has issued a total of 94 standards to date, comprising 54 Sharia'a standards, 26 accounting standards, 5 auditing standards, 2 codes of ethics and 7 governance standards.

Please click for more information and the call for nominations on the AAOIFI website.

IFRS conference in Cartagena announced

20 Aug, 2015

The IFRS Foundation has announced that its next IFRS conference in the Amaricas will be held in Cartagena, Colombia on 23-24 November 2015. The conference will include discussions on the implementation plans for new standards (IFRS 9, IFRS 15) and on implementing for the first time the IFRS for SMEs. There will also be panel discussions on IFRS transition issues and IFRS regulatory issues.

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

  • Welcome
  • The future of financial reporting
  • Key note speeches by the host country
  • IASB update
  • Break-out sessions on
    • Implementing IFRS 9 Financial Instruments: financial institutions
    • Implementing IFRS 9 Financial Instruments: other than financial institutions
    • Implementing IFRS 15 Revenue from Contracts with Customers
    • Implementing for the first time the IFRS for SMEs
  • IFRS - truly global accounting standards
  • Panel discussion on IFRS transition issues
  • Break-out sessions on
    • Insurance
    • Leases
    • What to do when Standards do not specify accounting for particular transactions?
    • Panel discussion on IFRS regulatory issue
  • Break-out sessions on
    • Rate regulated activities and emissions trading schemes
    • Financial instruments with characteristics of equity
    • Conceptual Framework
    • IFRS for SMEs

Before the conference, a half-day workshop cross-cutting IFRS measurement issues will be held.

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

IFAC publication with a list of useful resources for sustainability accounting

19 Aug, 2015

The Professional Accountants in Business Committee (PAIB) of the International Federation of Accountants (IFAC) has released a briefing supporting accountants in developing a greater awareness of how they can help their organisations address issues of sustainability and more fully incorporate these issues into business strategy. The publication is not so much focused on accounting as such but offers a valuable section on additional resources by focus area.

The section "Useful Resources for Accountants by Focus Area" (pp. 19-33) points out additional resources on the following topics:

  • Leadership and business strategy
    • Identifying the business case at an organisational, project, or issue level
    • Facilitating leadership and commitment
    • Engaging the finance and accounting function
    • Connecting sustainability to strategy, risk, and performance, and identifying how decisions can be enhanced by integrating sustainability-related information
  • Management, operations, and accounting
    • Generating information and analysis to support decisions
    • Reducing the sustainability impact of products, services, and operations
  • Communications, reporting, and disclosure
    • Developing a business reporting strategy and approach
    • Integrating sustainability impacts into financial reporting
    • Assuring sustainability disclosures and reports

Please click to access the publication Accounting for Sustainability - From Sustainability to Business Resilience on the IFAC website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.