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Summary of the November 2016 GPF meeting

20 Jan 2017

Representatives of the IASB met with the Global Preparers Forum (GPF) in London on Tuesday, 29 November 2016. Notes from the meeting have now been released.

The topics discussed at the meeting included:

  • IASB and Interpretations Committee Update. Members were given an overview of the IASB's work plan and how it reflects the messages received during the Board’s 2015 Agenda Consultation. They discussed the relevance of IFRSs in view of the recent developments in integrated reporting and the increasing use of alternative performance measures. They also considered the process with respect to national standard-setters’ projects that contribute to IASB projects.
  • Post-implementation Review of IFRS 13 Fair Value Measurement. As a part of phase 1 of the review, the staff sought feedback from the GPF members on their experience with implementing IFRS 13. The GPF members noted that IFRS 13 was generally working well but commented on some smaller matters.
  • Education Initiative commercial publications. The purpose of the session was to discuss possible improvements to A Guide through IFRS Standards (the ‘Green Book’) and A Briefing for Chief Executives, Audit Committees and Boards of Directors. As regards the Green Book, members commented on the basis of preparation, possible modifications, format of publication, and language and timing. On the second publication, members questioned whether the format of the publication was appropriate for the target audience and made several suggestions in this regard.
  • Definition of a business. The purpose of this session was to understand and discuss GPF members’ views on the exposure draft. Views were mixed and comments diverse.

The next GPF meeting will be held on 8 March 2017. The full meeting summary is available on the IASB's website.

Updated IASB work plan — Analysis

19 Jan 2017

Following its January 2017 meeting, the IASB has updated its work plan. In particular, the new standard on insurance (IFRS 17) is now expected in May and no longer in March since the fatal flaw review revealed some small issues that the staff wants to lay before the Board before finalising the draft. Also, following yesterday's decision to take a project on IFRS 9 and prepayment options onto the agenda, the IASB now announces that it expects to publish an exposure draft on the issue in April.

Below is an analysis of all changes made to the work plan since the last update in December 2016.

Research projects

Standard-setting and related projects

  • Disclosure initiative: Materiality (practice statement) — the expected publication of the practice statement has moved forward and is now given as "within 6 months"
  • Insurance contracts — the expected issuance of the IFRS has been delayed to May since the fatal flaw review revealed some small issues that the staff wants to lay before the Board before finalising the draft

Nar­row-scope amend­ments

  • Improvements to IFRS 8 resulting from the post-implementation review of IFRS 8 — the expected publication of an exposure draft is now expected in April
  • Symmetric prepayment options — following yesterday's decision to take a related project onto the agenda, the IASB now announces that it expects to publish an exposure draft on the issue in April
  • Annual improvements to IFRSs 2015-2017 — following the publication of an exposure draft of proposed amendments earlier this month, the project is now marked as being in consultation phase with a decision on the project direction expected "within 6 months"

IFRS Taxonomy

  • In line with the delayed expected publication of the new insurance standard, the publication of a proposed related IFRS Taxonomy Update has also been pushed back to May

Post-implementation reviews

  • After the IASB has decided to move forward with a post-implementation review of IFRS 13, it now announces that it expects to issue a request for information "within 6 months"

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

EFRAG rate-regulated activities working group calls for members

19 Jan 2017

EFRAG has put out a call for applicants for its rate-regulated activities working group. The working group supports EFRAG TEG in providing technical advice to the EFRAG Board on the financial reporting issues arising from rate-regulated activities and contributes specialist accounting expertise along with knowledge of the industry sectors subject to rate-regulation, with an emphasis on specific European circumstances.

The existing membership of the group has been in place over three years, and some of the members have given up there roles or have indicated that they will need to do so in the near future. Therefore, EFRAG has decided to renew the composition of the group.

The size of the group is limited to 16 members, and the selection of members will aim to ensure a good mix of different professional backgrounds. Current members are eligible for reappointment. The application period ends on 20 February 2017.

For more information, please see the EFRAG press release.

IASB decides on project on limited IFRS 9 amendments

18 Jan 2017

The International Accounting Standards Board (IASB) has just voted (11 in favour, 1 against) to add a limited scope project on IFRS 9 'Financial Instruments' to its agenda.

The project will look into whether a narrow-scope exception could be made to allow instruments with symmetric prepayment options to qualify for amortised cost or fair value through other comprehensive income measurement because they would otherwise fail the SPPI condition. Please see our summary of the agenda paper voted on for more details.

IVSC publishes IVS 2017

18 Jan 2017

The International Valuation Standards Council (IVSC) has issued the suite of new International Valuation Standards (IVSs) that make up the 2017 IVS. They are the result of exposure drafts published in April and June 2016.

IVS 2017 consist of five general standards and six asset standards. The general standards offer guidance for all valuation assignments including terms of a valuation engagement, bases of value, valuation approaches and methods, and reporting. The asset standards include requirements related to specific types of assets.

More information and ordering details are available through the press release on the IVSC website.

ICSA and the Investment Association launch joint project on board engagement

17 Jan 2017

ICSA: The Governance Institute (ICSA) and the Investment Association (IA) have jointly launched a project to provide guidance on how the boards of the UK’s largest companies can improve their engagement with and understanding of the views of their stakeholders and thus better reflect such views in their decision making.

The project “aims to tackle concerns that the voices of key groups such as employees, customers and suppliers are not being heard at the highest levels of British business”.  

The ICSA and IA will produce practical guidance as to how Boards can enhance their understanding of the interests of employees and other stakeholders in accordance with their duties under Section 172 of the Companies Act 2006.  The guidance will cover: 

  • the ways in which companies can identify non-executive directors with relevant stakeholder experience
  • the processes by which boards can receive the views of their key stakeholders; and
  • how training and induction can be used to enhance directors’ understanding of their duties and the interests of, and impact on, different stakeholders. 

The voluntary guidance, which will be published in the second quarter of 2017, will also offer options as to how companies might demonstrate how they have fulfilled their duties in this area. 

The press release is available on the ICSA website.

Call for candidates for EFRAG’s new Academic Panel

16 Jan 2017

The European Financial Reporting Advisory Group (EFRAG) is launching a call for nominations for its new Academic Panel. Applications are requested by 1 March 2017.

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.

New EFRAG TEG composition

16 Jan 2017

The European Financial Reporting Advisory Group (EFRAG) has announced the new composition of the EFRAG Technical Expert Group (EFRAG TEG) from 1 April 2017.

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.

ICAEW/TCFD webinar on TCFD consultation on climate-related financial disclosures

13 Jan 2017

The Institute of Chartered Accountants in England and Wales (ICAEW) and the Task Force on Climate-related Financial Disclosures (TCFD) will be hosting a webinar on the TCFD’s consultation on climate-related financial disclosures on 23 January 2017.

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 believes IFRS 4 amendments address the main concerns of entities whose activities are predominantly related to insurance

13 Jan 2017

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice 'Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts''.

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.

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