The objective of the Academic Panel, which will support EFRAG’s Technical Expert Group (EFRAG TEG), is to contribute to the debate on current financial reporting and accounting topics by:

• Assisting in the definition of a clear scope for EFRAG Research projects;
• Making suggestions on the appropriate methodology;
• Providing input to EFRAG TEG discussions on the perceived issues and possible solutions (both on IASB and EFRAG Research projects).

The panel is expected to have between 10 to 15 members and is expected to meet in person twice per year.  Members should be academics specialising in accounting and (financial) reporting and notably in IFRS issues and knowledgeable in European specificities.

Full details and terms of reference are available on the EFRAG website.

The EFRAG TEG plays a central role in providing technical advice to the EFRAG Board that is responsible for all EFRAG positions with the objective of EFRAG speaking convincingly, clearly and consistently, and be recognised as the European Voice in financial reporting. EFRAG TEG provides its own professional judgment, arguments and technical analysis based on its technical expertise and on EFRAG’s due process. 

The press release is available on the EFRAG website.

The webinar is an opportunity for participants to find out more on the recommendations and share their views.  There will be a presentation by Russell Picot, Special Advisor to the TCFD, followed by a question and answer session.  

Further details as well as registration details are available on the ICAEW website.

EFRAG assesses that, in the specific circumstances arising from the misalignment of effective dates of IFRS 9 Financial Instruments and the future insurance contracts standard, the amendments meet all technical endorsement criteria of the IAS Regulation. EFRAG further assesses that the amendments address the main concerns of entities whose activities are predominantly related to insurance, who are the most significantly affected by the issues arising from the misalignment of the effective dates of IFRS 9 and the forthcoming insurance contracts standard. On that basis, EFRAG assesses that adopting the amendments would be conducive to the European public good.

Please click to access the press release, that offers access to the endorsement advice on the EFRAG website. EFRAG has also updated its endorsement status report, which can be downloaded here.

• IASB Vice-Chair Sue Lloyd discusses transition options and benefits;
• IASB Member Gary Kabureck explains early planning and practical steps;
• IASB Member Darrel Scott expands on judgements and discount rates; and
• IASB Member Stephen Cooper examines investor expectations and lease disclosures between now and 2019.

Please click to access the article on the IASB website.

The Global Reporting Initiative (GRI) has announced the Corporate Leadership Group on integrated reporting 2017 (CLGir 2017) and invites companies to apply to join the group. Coordinated by GRI and in collaboration with the International Integrated Reporting Council (IIRC), the CLGir 2017 will define themes for their explorations of practical topics, including how companies can embed sustainability into the heart of their operations and business strategy by leveraging GRI Standards and the IIRC framework. Please click for more information on the GRI website.

The Integrated Reporting Committee (IRC) of South Africa notes the challenges of disclosing performance against strategic objectives in an integrated report and has published an information paper highlighting the challenges and offers key considerations. Please click to access the paper on the IRC website.

The newest FASB Outlook newsletter provides a contribution by FASB member Marc Siegel titled "Should the FASB have a role in sustainability disclosures?". The article is a reaction to questions raised as to whether the FASB should promulgate standards requiring corporate disclosures about sustainability or environmental, social, and governance (ESG) issues. Mr Siegel concludes that the answer to the question of whether FASB should engage in sustainability and/or ESG issues "is not binary". He notes that the Board engages where those issues are within the boundaries of financial reporting set forth by the FASB's Conceptual Framework but that not all sustainability or ESG information is within the boundaries. Please click to access the article on the FASB website.

Phil has been at the FRC since 2009.  Jennifer will join the FRC on 27 March.  The press release is available on the FRC website.

The report indicates that compliance with the UK Corporate Governance Code “remains high” but where Boards choose not to follow provisions “too many explanations are of poor quality”.  The report also indicates that the quality of reporting against the Stewardship Code has “improved substantially”.

Key highlights of the report, which is based upon a number of reports and surveys published by the FRC and others, include: 

Corporate Governance

• 90 per cent of FTSE 350 companies comply with all, or all but one or two, of the UK Corporate Governance Code’s 54 provisions. Full compliance has increased from 57 per-cent to 67 per-cent.
• Code provision B.1.2 which states that at least half the board (excluding the chairman) should be independent, remains the area of most non-compliance amongst FTSE 350 companies. Non-compliance in this area is, however, decreasing.
• There was reduced investor support for remuneration resolutions with concern noted about a lack of transparency about the link between executive pay and performance.
• The majority of FTSE 350 companies now have in place arrangements to enable them to recover or withhold variable pay. 91 per-cent have malus and/or clawback provisions on the annual bonus and 78 per-cent on long-term plans.  It is expected that other companies will introduce similar arrangements when their remuneration policies next go for shareholder approval.
• The FRC’s initial assessment of viability statements “suggests that there is little variation in disclosures between business sectors” and a number of companies (in a sample taken by the FRC) only provided basic information. The FRC “encourages companies to provide more constructive reporting in line with the spirit of the Code, including a clear rationale for their choice of timeframe, what qualifications and assumptions were made, and how the underlying analysis was performed”.  The report provides some suggestions for viability reporting.
• Companies are providing basic descriptions of their succession planning policies and companies may not be spending enough time considering board and senior management succession. The FRC indicates the need for nomination committees to play a more active role in aligning board composition with company strategy to ensure that the board has the required skills to ensure long-term success. 

Stewardship

• The report draws attention to the FRC’s public assessment of signatories’ reporting against the Stewardship Code, published in November 2016, which demonstrated “much improved reporting against the Code and greater transparency in the UK market”.
• The FRC expects “continuous reporting improvements from signatories” and encourages them to “consider whether their statements are clear and make revisions where necessary”.
• The FRC will be considering how to encourage further improvements in reporting and possible revisions to the UK Stewardship Code in 2018. 

The full report expands upon these areas and also provides a summary of the FRC’s report into corporate culture that was published in July 2016.  Additionally the full report indicates where the FRC would like to see changes made to corporate governance behaviour and reporting. 

Click for (all links to FRC website):

• Press release
• Full report: Developments in Corporate Governance and Stewardship 2016

Mr Scott has been an academic in the field of accounting at various universities in Canada since the late 1970s. Most recently, he acted as a Director and Professor of Accounting at the School of Accounting and Finance, University of Waterloo, Canada. He also served as a member of the Canadian Accounting Standards Board from 2003 to 2011.

Please click for the announcement on the IASB's website.