Subject of tommorrow's vote are suggested changes to the CONT draft opinion. The main statement "that the implementation of IFRS has contributed to enhancing the overall effectiveness, relevance and quality of financial data and statements, to the benefit of the single market and capital markets" from the draft opinion remains unchallenged, however, there are suggestions to expand this by noting that "IFRS are not fully implemented and not fully endorsed by the Member States which undermines the potential of the standards" and that the Commission should be called on "to develop an EU-wide simplified accounting standard for SMEs".

Interesting is also a suggestion that IFRSs could be included in the current Transatlantic Trade and Investment Partnership (TTIP) negotiations between the European Union and the United States.

Please click for access to the agenda, the draft opion and the proposed changes on the CONT website (agenda at the top of the page, other documents near the bottom under item 54).

The series will discuss the following topics related to the upcoming standard:

• The need for change and the history of the project (issued 1 April).
• What is an insurance contract?
• Initial measurement of insurance contracts.
• Subsequent measurement of insurance contracts.
• Modifications to the general model: variable fee contracts.
• Other modifications to the general model.
• Presentation and disclosure.
• Applying the Standard for the first time.

For more information, see the webinar page on the IASB’s website.

In a first phase, the TCFD has conducted a high-level review of the existing landscape of climate-related disclosures — including current voluntary and mandatory climate-related disclosure regimes — to identify commonalities, gaps, and areas for improvement and highlights these in its first report. The report also defines the scope and objectives of its work for the second phase where the TCFD will target climate-related financial disclosures pertaining to near-, medium- , and long-term physical and nonphysical impacts faced by both nonfinancial companies and the financial sector. Finally, the task force has identified seven fundamental principles that are critical for an effective regime for climate-related financial disclosure and that will underpin the TCFD's recommendations to be developed in phase two for enhancing climate-related disclosures and providing an enduring framework:

• present relevant information;
• be specific and complete;
• be clear, balanced, and understandable;
• be consistent over time;
• be comparable among companies within a sector, industry, or portfolio;
• be reliable, verifiable, and objective; and
• provide on a timely basis.

Please click to access an executive summary and a full version of the report on the TCFD website. The website has been newly set up to provide the public with access to TCFD materials and offer greater transparency on the TCFD's work. It also features a public consultation on the TCDF's work in the second phase.

In his article, Mr Hoogervorst acknowledges that IFRS 16 will result in a substantial change to many companies’ balance sheets and "will not be popular with everyone". However, he notes, the IASB has looked at all possible risks carefully and has concluded that the risks and costs are manageable. He states that:

• IFRS 16 will not put the leasing industry out of business and leases will remain attractive as a flexible source of finance. 
• The IASB believes that is is highly unlikely that the improved visibility of lease obligations will lead to significant effects in terms of the cost of borrowing and debt covenants.
• There will be costs involved in updating systems to implement IFRS 16.
• The IASB is convinced that the benefits of IFRS 16 will greatly outweigh its costs.

Please click to access the full text of Mr Hoogervorst's article, which first appeared on IFAC Global Knowledge Gateway, on the IASB website.