The consultation on IFRS 9 application covers:

• classification and measurement;
• impairment methodology;
• hedge accounting;
• transition arrangements;
• other considerations with implementation such as practical considerations and timetable;
• presentation and disclosures;
• whole of government accounts; and
•  amendments to the FReM. 

The consultation on IFRS 15 application covers:

•  the five-step model in IFRS 15, considering each in the public sector context;
• contract costs;
• transition;
• other considerations with implementation such as practical considerations and timetable;
• consolidated fund revenue;
• whole of government accounts; and
•  amendments to the FReM. 

HM Treasury proposes to apply both IFRS 9 and IFRS 15 from 1 April 2018 for the public sector.  Comments on the exposure drafts are requested by 30 September 2016.

UPDATE - response to the above exposure drafts have now been published and are below. 

Click for (all links to HM Treasury website):

• FReM Exposure Draft 16/01 – Amendments to the FReM – Application of IFRS 9 Financial Instruments for the public sector
• FReM Exposure Draft 16/02 – Amendments to the FReM – Application of IFRS 15 Revenue from Contracts with Customers 
• Responses to FReM Exposure Draft 16/01 – Amendments to the FReM – Application of IFRS 9 Financial Instruments for the public sector
• Responses to FReM Exposure Draft 16/02 – Amendments to the FReM – Application of IFRS 15 Revenue from Contracts with Customers 

The webinar serves as an education session in the context of the IPSASB’s current project to update its suite of IPSAS pronouncements on financial instruments (IPSAS 29 Financial Instruments: Recognition and Measurement, IPSAS 28 Financial Instruments: Presentation, and IPSAS 30 Financial Instruments: Disclosures), and provides an overview of the key changes introduced by IFRS 9 Financial Instruments as issued by the IASB.

The webinar can be accessed through the IPSASB website.

The Global Sustainability Standards Board (GSSB) of the Global Reporting Initiative (GRI) has published a draft of its future work programme for public consultation, and invites feedback from all stakeholders to help determine priorities for the next three years. The public consultation period for the draft work programme will remain open until 28 September 2016. For a comprehensive view of the work areas outlined, and to give your input, please see the draft GSSB Work Program on the GRI website.

The public comment period for the draft GRI Standards has ended and the GRI Standards Division and the GSSB are analysing the feedback and considering how it will influence the final standards. A first overview of the feedback received is available on the GRI website.

The Carbon Disclosure Project (CDP) reports that a record number of cities are now measuring and disclosing environmental data on an annual basis in order to manage emissions, build resilience, and protect themselves from the growing impacts of climate change. The press release on the CDP website offers an overview of how the total 70% increase from 2015 numbers translates into regional developments.

The Financial Reporting Council (FRC) has approved the CCAB as the recognised SORP-making body for issuing a recognised SORP for LLPs incorporated in Great Britain under the Limited Liability Partnerships Act 2000.  The members of the CCAB are; The Institute of Chartered Accountants in England and Wales (ICAEW), The Institute of Chartered Accountants of Scotland (ICAS), The Institute of Chartered Accountants in Ireland (ICAI), The Association of Chartered Certified Accountants (ACCA) and The Chartered Institute of Public Finance and Accountancy (CIPFA).  

SORPS issued by CCAB apply to LLPs preparing accounts under UK GAAP to present a ‘true and fair view’.  CCAB has stated that “the underlying purpose of the SORP is to deal with issues that are specific to LLPs and ensure that, as far as possible, LLPs present financial statements that are comparable with those of other entities”. 

The Exposure Draft proposes updates to the LLP SORP as a result of amendments made by the Financial Reporting Council (FRC) to UK accounting standards in July 2015.  These amendments resulted in:

• The withdrawal of the FRSSE for accounting periods beginning on or after 1 January 2016;
• Amendments FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland to add a new section (Section 1A Small Entities) outlining presentation and disclosure requirements for small entities and making other changes necessary for continued compliance with company law; and
• The publication of FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime, a new standard available to entities choosing to apply the micro-entities regime. 

A number of changes are also proposed as a result of amendments made to the Limited Liability Partnerships (Accounts and Audit) Regulations 2016 (SI 2016/575) (“The LLP Regulations”) and the consequential amendments to FRS 105 that were issued in May 2016 to align the standard with recent changes to UK company law and make the micro-entities regime available to LLPs and qualifying partnerships 

The final SORP will be effective for accounting periods beginning on or after 1 January 2016.  However earlier adoption will be permitted for accounting periods beginning on or after 1 January 2015 provided that the LLP Regulations are applied from the same date. 

Click for (all links to CCAB website):

• Press release
• Draft Statement of Recommended Practice — Accounting by Limited Liability Partnerships.

The Update reports on the EFRAG Board meeting on 19 July, the EFRAG Technical Expert Group (EFRAG TEG) conference call on 12 July and the EFRAG TEG meeting on 25-26 July.

The Update also lists EFRAG publications issued in July: 

• EFRAG’s final endorsement advice letter to the European Commission regarding Clarifications to IFRS 15 Revenue from Contracts with Customers for use in the European Union and European Economic Area;
• EFRAG’s draft comment letter on the IASB’s Exposure Draft ED/2016/1 Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11); and
• EFRAG’s summary report on its joint outreach event ‘What’s new in Accounting for Leases: a change worth $2.2 trillion’ held on 5 July in cooperation with the European Federation of Financial Analysts Societies (EFFAS) and the Belgian Association of Financial Analysts (BVFA/ABAF).

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

Changes are proposed to the service expenditure analysis (SEA) for England and Wales to reflect organisational and operational changes to services within authorities. The main changes to the SEA sections of the SeRCOP are in relation to Public Health (England) and adult social care (England).

Comments are requested by 16 September 2016. 

Click for (all links to CIPFA website):

• Press release
• Consultation on changes to the service reporting code of practice - Invitation to comment 

The Monitoring Board organised its plan into three sections, work related to:

• Trustees’ oversight of the IASB — Provide comments on the IASB’s due process arrangement and refer agenda items to the Trustees.
• Trustees — Review (1) the Trustees’ Review of Structure and Effectiveness and (2) the June 2016 proposal to amend the IFRS Foundation Constitution. The Monitoring Board also plans to review the Trustees’ financial arrangements and participate in the Trustee nomination process.
• Monitoring Board — Conduct a periodic review of existing Monitoring Board members and consider rotating members.

The work plan is available on the IASB's website.

The principles state that a company should take a long-term strategic view and explain clearly to shareholders how material decisions and actions are consistent with that view. Required quarterly reporting should reflect this view and provide an outlook for trends and metrics that reflect progress on long-term goals. The principles note that making short-term decisions to beat guidance is "likely to be value destructive in the long run".

According to the priciples, companies should not feel obligated to provide earnings guidance, but if they decide to so so, they should first determine whether it “does more harm than good”. Also, the guidance “should be realistic and avoid inflated projections”.

Finally, the priciples stress that companies are required to report their results in accordance with Generally Accepted Accounting Principles (GAAP). While the group of CEOs believes that "it is acceptable in certain instances to use non-GAAP measures to explain and clarify results for shareholders" they also stress that "such measures should be sensible and should not be used to obscure GAAP results". They also stress that all compensation expenses, including equity compensation, should be reflected in any non-GAAP measures of earnings as they are plainly a cost of doing business.

For more information, see the press release and principles on the website especially set up for this purpose.