May

EFRAG draft comment letter on proposed amendments to IFRS 9 regarding the classification of certain prepayable financial assets

04 May, 2017

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2017/3 'Prepayment Features with Negative Compensation (Proposed amendments to IFRS 9)'.

In its draft comment letter, EFRAG welcomes the IASB addressing the concerns related to prepayment features with negative compensation. However, EFRAG is of the view that prepayment features with negative compensation should be subject to the same eligibility conditions as prepayment features with positive compensation; therefore, EFRAG disagrees with the criterion that states that the fair value of the prepayment feature should be insignificant at initial recognition.

In order to minimise any disruption to the implementation efforts already undertaken by preparers and users, EFRAG requests the IASB to do its utmost to finalise the amendments as soon as possible and to ensure they are limited to what is strictly necessary to address the issue submitted to the IFRS Interpretations Committee. EFRAG also recommends that the IASB include an effective date of 1 January 2019, with early application permitted, rather than the date proposed in the amendments.

Comments on EFRAG's draft comment letter are requested by 17 May 2017. For more information, see the press release and the draft comment letter on the EFRAG website.

Recent sustainability and integrated reporting developments

04 May, 2017

A summary of recent developments at the Accountancy Europe and GRI.

Three years after publication of the International Integrated Reporting Framework, the International Integrated Reporting Council (IIRC) launched a two-month consultation to gauge businesses' views on the implementation of the framework, to inform on further development. Accountancy Europe has now responded to the consultation and also points out major barriers:

  • That quality and relevance of the information in integrated reports need to be improved;
  • that it needs to be explored how an integrated report conforms with other reports;
  • that the cost to prepare an integrated report is a challenge to SMEs; and
  • that the framework focuses on reporting from the perspective of investors and thus the wider stakeholder base has diffculties applying it.

The full comment letter is available on the Accountancy Europe website.

The Global Reporting Initiative (GRI) is currently seeking senior individuals of integrity and high reputation to join the following committees for a term of 3 years, from 1 January 2018: GRI Board of Directors; Global Sustainability Standards Board; Stakeholder Council; and Independent Appointments Committee. More information is available on the GRI website.

IFRS Interpretations Committee holds May 2017 meeting

03 May, 2017

The IFRS Interpretations Committee met via video conference call on Wednesday 3 May 2017. We have posted Deloitte observer notes for the technical issues discussed during this meeting.

Please click through for the notes relating to the following issues:

The preliminary and unofficial notes taken by Deloitte observers for the entire meeting are also available.

IFRS Foundation updates its pocket guide to IFRS

03 May, 2017

The IFRS Foundation has published the 2017 version of 'Pocket Guide to IFRS Standards: the global financial reporting language'. The guide provides an overview of the adoption of IFRS in 150 countries and other jurisdictions around the world.

The Pocket Guide to IFRS Standards: the global financial reporting language can be downloaded free of charge from the IASB's website. For more information, see the press release on the IASB's website.

FRC's Financial Reporting Lab publishes framework for future digital reporting

02 May, 2017

The Financial Reporting Council's (FRC's) Financial Reporting Lab has released a report setting out a framework for future digital reporting. The report expresses the views of a wide range of preparers, investors and others on the characteristics that they would like to see in any future (digitally enabled) system of corporate reporting.

The report, Digital Future - A framework for future digital reporting, is the first in a series of outputs on the 'Digital Future' and takes forward the core findings contained within the Lab's May 2015 report, Digital Present

The report identifies three stages of reporting: production, distribution, and consumption. For each of the stages characteristics of future digital reporting are then identified and explained.  The report indicates that if future digital reporting is to be successful it would meet the following characteristics for each of the three stages of reporting:

  • Production - cost-efficient, easy, compatible and timely.
  • Distribution - free, prompt, compliant, and accessible.
  • Consumption - contextual, usable, credible, and engaging.

In the next phase of the project, the Lab will assess the extent to which technologies such as virtual reality, augmented reality, blockchain, XBRL, video, and other digital media fit the framework.

Please click to download the press release and publication from the FRC's website.

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