In his speech, Mr Golden discussed the important role high-quality financial reporting has within capital markets around the world and noted that high-quality accounting standards should “promote truth-telling in financial reporting”.

Mr Mackintosh presented on major trends and challenges towards high-quality corporate reporting and focused on the IASB's mission and the future agenda of the IASB.

Michael Stewart, Director of Implementation Activities at the IASB, explained how principle-based standards support consistent application across diverse facts and circumstances and how the IASB Education Initiative promotes IFRS judgement capacity-building by developing cohesive IFRS understanding and capacity to make, audit, regulate, and analyse IFRS judgements.

Please click for direct access to these speeches on the UNCTAD website:

• Mr Golden's keynote address
• Mr Mackintosh's presentation
• Mr Stewart's presentation

All presentations given at the meeting (including presentations from representatives of the PIOB, IFAC, IAASB, Basel Committee, FSB, World Bank, IIRC, CDSB) can be accessed through this website.

FRED 62 proposes to amend paragraphs 34.22 and 34.42 of FRS 102 to require disclosure of financial instruments held at fair value on the basis of a fair value hierarchy consistent with EU-adopted IFRS as follows:

A fair value measurement is categorised in its entirety on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or indirectly.

Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability.

When finalised, these amendments are proposed to apply for accounting periods beginning on or after 1 January 2017. Early application will be permitted. Comments on FRED 62 are invited by 31 January 2016.

The press release and FRED 62 are available on the FRC website.

The ITG was created to keep the IASB informed on issues occurring during implementation of the new impairment requirements in IFRS 9 Financial Instruments, to assist in determining what action may be needed to resolve diversity in practice and to provide a public forum for stakeholders to learn about the new impairment requirements from others involved with implementation.

The agenda for the meeting is as follows:

Agenda papers are available on the ITG December meeting page on the IASB's website.

The main proposed amendments would require:

• IASB approval of IFRS content reflecting new or amended standards;
• review by three to five members of the IASB of content reflecting common practice;
• formalisation of the enhancements that were implemented in January 2014 (creation of the IFRS Taxonomy Consultative Group and establishment of a process that seeks public consultation on IFRS Taxonomy updates that are released during the year); and
• inclusion of enhancements that reflect current practices and processes, but are not documented in the Due Process Handbook for XBRL Activities.

Please click to access the press release and the invitation to comment on the proposed amendments on the IASB website. Comments are requested by 3 February 2016.

The paper builds on the fundamental concepts and principles as captured by the IIRC's International Integrated Reporting Framework issued in December 2013. It explains how a connected approach supports the other four key areas of integrated thinking: an external value focus, integrated planning, effective governance and oversight, and integrated communications. The authors argue that with a broader view of an organisation, the CFO and the finance function can begin to ensure that all aspects involving people, processes, and systems are better connected while a disconnected approach can lead to important drivers of value being omitted from both information provided to management and external reports.

Please click to access the thought paper on the IFAC website.

The purpose of the TRG is to seek feed­back on po­ten­tial issues related to im­ple­men­ta­tion of the boards’ new revenue stan­dard. By an­a­lyz­ing and dis­cussing po­ten­tial im­ple­men­ta­tion issues, the TRG will help the boards de­ter­mine whether they need to take ad­di­tional action, such as pro­vid­ing clar­i­fi­ca­tion or issuing other guid­ance.

The agenda for the meeting is as follows:

Agenda papers for this meeting are avail­able on the IASB's Web site.

The draft guidance has been issued as a result of the change to the way that companies will need to account for financial instruments (if they were not adopting FRS 26 (IAS 39) Financial Instruments: recognition and measurement under old UK GAAP) when moving from old UK GAAP to new UK GAAP (FRS 101 Reduced Disclosure Framework or FRS 102 The Financial Reporting Standard applicable in the UK and the Republic of Ireland) or to full International Financial Reporting Standards (IFRSs).

One particular area where there can be significant difference from Old UK GAAP (where FRS 26 has not been applied) is in respect of non-interest bearing loans and in other cases where loans are entered into on non-market terms.

The accounting difference arises from the requirement in Section 11 of FRS 102 that a basic financial instrument should, in the case of a financing transaction, be measured on initial recognition in the accounts at the present value of future expected cash flows discounted at the market rate of interest. This is similar to the requirement in Section 12 of FRS 102 that non-basic financial instruments (and in IAS 39 for all financial instruments), be measured on initial recognition at the fair value of the instrument.

In most cases, the transaction price for entering into the financial instrument will be the same as its present value / fair value. However, in cases where the loan is not entered into on market terms, this is likely to lead to an accounting difference being booked on inception.

There are a number of accounting and tax rules that can be relevant, depending on the nature of the transaction. The draft guidance looks to cover the interaction of those rules and explain how this particular accounting issue should be treated for corporation tax purposes in the most common circumstances with a number of illustrative examples.

HMRC has also published two papers which provide an overview of the key accounting changes and the key tax considerations of moving from ‘old’ UK GAAP to either FRS 101 or FRS 102.  An updated paper for FRS 102 was published in October 2015.

The draft guidance is available on the HMRC website.

The Update reports on the meeting of the EFRAG Board on 28 October, the EFRAG Technical Expert Group (EFRAG TEG) conference calls on 20 and 29 October and the EFRAG TEG meeting on 7-8 October.  The Update also lists EFRAG publications issued in October:

• EFRAG’s final comment letter in response to the IASB Exposure Draft ED/2015/7 Effective Date of Amendments to IFRS 10 and IAS 28;
• EFRAG’s draft comment letter in response to the Request for Views regarding the Trustees’ Review of Structure and Effectiveness: Issues for the Review; and
• EFRAG’s questionnaire on the proposed definitions of assets and liabilities in the IASB Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting. 

Please click to download the October EFRAG Update from the EFRAG website.