Summary of the CMAC February 2016 meeting

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06 Apr, 2016

The IASB has released a summary of the Capital Markets Advisory Committee (CMAC) meeting which was held in London on 25 February 2016.

The topics discussed at the meeting included:

  • IFRS Advisory Council — Role and recent activities. Members discussed the strategic function of the council and considered how its advice was helpful to the IFRS Foundation in implementation support and views on the future of financial reporting.
  • Disclosure Initiative — Final amendments to IAS 7. The staff explained the final amendments to IAS 7 issued in January 2016. CMAC members encouraged the Board to continue developing disclosure about liquidity.
  • Different effective dates — IFRS 9 and the new insurance contracts standard. Many CMAC members thought that the Board should not provide any temporary approaches. They were also concerned about allowing two optional approaches as doing so would decrease comparability. CMAC members strongly opposed having a temporary exemption from applying IFRS 9, because IFRS 9 would bring vast improvements over IAS 39.
  • Structured Electronic Reporting — What do investors need? CMAC members were asked whether they use structured electronic data in their analysis; and how structured electronic reporting could be made more useful to investors and analysts.
  • Education Session — The new impairment requirements in IFRS 9. This session provided CMAC members with a brief background on the differences that investors are likely to observe regarding impairment when financial institutions make the transition from IAS 39 to IFRS 9.
  • Primary Financial Statements. This session focused on users’ views of operating profit. During the meeting, the staff asked CMAC members whether they employ the operating profit subtotal in their analysis and whether the Board should develop a standard definition of this subtotal.
  • IFRS 16 — Update on the new standard. This session provided CMAC members with a brief background on the differences that investors are likely to observe when entities make the transition from IAS 17 to IFRS 16.

The next meeting will be a joint CMAC and Global Preparers Forum (GPF) meeting. It will be held on 15–16 June 2016.

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

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