While IFAC had originally maintained that there are a range of different organisational reporting frameworks and that it was important to examine the relationship between these frameworks, this position has now been modified and IFAC puts the International Integrated Reporting Council (IIRC) and the implementation of its Framework first claiming that integrated reporting is the key to enhanced organisational reporting. The paper states:

[T]he integrated report can be used as an “umbrella” report for an organization’s broad suite of reports and communications, enabling greater interconnectedness between different reports and recognizing that there is a range of different frameworks and regulations available, and under development.

The updated version of the paper also includes a new section that describes integrated reporting in more detail.

Please click for the following information on the IFAC website:

• IFAC press release
• Enhancing Organizational Reporting: Integrated Reporting Key - two page overview
• Enhancing Organizational Reporting: Integrated Reporting Key - full Policy Position Paper

The FRC published its Draft Plan and Budget and Levy Proposals indicating its priorities for 2017/18 in December 2016 with a comment period until 17 February 2017.  

Registration details for the meeting are available on the FRC website.

The Financial Reporting Council (FRC) has now responded to the Foundation’s call for tenders on relocation services and states that the UK is the most powerful centre of accounting expertise outside the US that offers the IFRS Foundation unique access to IFRS knowledge and experience. Therefore, the FRC concludes:

A move overseas for the IFRS Foundation would be counter-productive. It is logical for the Foundation to remain in the UK.

Please click to access the press release on the FRC website.

The new webinar covers:

• The need for change and the history of the project
• Level of aggregation
• Applying the Standard for the first time

Please click to access the update as well as all previous webinars on the IASB website.

The first meeting for 2017 has a light agenda, with the IASB scheduled to meet in public only on Wednesday 18 January 2017.

The first session focuses on a post-implementation review of IFRS 13 Fair Value Measurement. The requirements in IFRS 13 are substantially the same as those in the FASB’s requirements, the two boards having worked to have converged standards. The staff is recommending that the IASB move ahead with a post-implementation review and that the Board should issue a request for information as part of that process.

The Board will continue its discussions from December 2016 on a possible amendment to IFRS 9 Financial Instruments in relation to symmetric prepayment options, to allow instruments with a prepayment options to qualify for amortised cost measurement. The staff are recommending that the Board proceed with an amendment.

The Board is currently preparing an exposure draft to clarify the difference between an accounting policy and a change in estimate. The staff will provide feedback on the testing of the proposed wording.

The Staff will also provide the IASB with a brief (ten minute) oral update on the insurance contracts project.

The Conceptual Framework session focuses on factors specific to initial measurement; the use of more than one measurement basis; and whether to confirm the proposals to update the references in Standards and Interpretations to the Conceptual Framework.

Our pre-meeting summaries are available on our January meeting note page and will be supplemented with our popular meeting notes after the meeting.

We are supportive of balanced and proportionate measures which aim to increase the quality and transparency of financial reporting. We agree that the proposed changes will promote more effective and efficient processes, and enhance the transparency of reviews and their outcomes. 

We note that, in line with stakeholders’ requests for more transparency, the FRC has started writing to companies advising them when the FRC has completed a review of their report and accounts but has not identified any substantive matters. However, whilst this is clear from the Consultation Paper, this has not been included in the revised Operating Procedures. We believe this is a positive development for companies and recommend that such a practice be clarified in the revised Operating Procedures as the current drafting does not make it clear that the names of such companies will be included on the regularly published list of closed cases. 

In addition to the proposed changes, earlier in the year we recall the FRC mentioning that it would consider writing to some companies ‘fore-warning’ them of reviews on specific areas in their accounts. However, we could not see this in the revised Operating Procedures. The benefits of such an approach have already been evidenced by the FRC’s thematic review of tax disclosures and confirmed in an FRC press notice published on 31 October 2016. We believe this approach is a good idea and could result in further improvements in the quality of financial reporting in other areas of the annual report. We note that the FRC, in its thematic review of APMs, has confirmed it will be giving advance notice of its intention to review the next annual reports and accounts of two companies. 

Our full comment letter is available here.

The Board will discuss the post-implementation review of IFRS 13, symmetric prepayment options related to IFRS 9, accounting policies/estimates and the Conceptual Framework.

The full agenda for the meeting can be found here. We will post any updates to the agenda, our comprehensive pre-meeting summaries as well as observer notes from the meeting on this page as they become available.

The CRSC advises ESMA on issues related to accounting, audit, periodic financial reporting, electronic reporting and storage of regulated information.  CWG members are expected to provide assistance to the CRSC by providing input on its work plan, its projects and broader policy objectives. 

ESMA will be seeking to ensure a balanced representation of the following types of stakeholders in the CWG: 

• Users of financial information;
• Retail and institutional investors;
• Issuers of securities;
• Accountants and auditors;
• Parties involved in the storage of regulated information and its use; and
• Academics

Further details are available in the Call for expression of interest on the ESMA website.  

Applications must be submitted by no later than 6 February 2017

The European national enforcers of financial information monitor and review financial statements published by issuers with securities traded on a regulated European market and who prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.

ESMA has developed a confidential database of enforcement decisions taken by individual European enforcers as a source of information to foster appropriate application of IFRS.

The publication of enforcement decisions is designed to inform market participants about which accounting treatments European national enforcers may consider as complying with IFRS, i.e. whether the treatments are considered as being within the accepted range of those permitted by IFRS. ESMA considers the publication of the decisions, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from March 2014 to June 2016, include:

Click for access to the full report (link to ESMA website). The ESMA has also published an updated overview of all enforcement decisions ever published.

The Foundation has posted to its website an invitation to tender, which includes specifications, scope of services, timing, process, and proposal requirements. Proposals are being requested through 3 February 2017.