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July

Pre-meeting summaries for the July IASB meeting

12 Jul 2017

The IASB will meet at its offices in London on 18–19 July 2017. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. For each topic to be discussed we summarise the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

There are nine topics on the agenda.

Tuesday 18 June

The meeting starts in the afternoon with feedback on outreach the IASB staff have undertaken with investors and analysts in relation to the recently issued IFRS 17 Insurance Contracts.

The Board will discuss feedback on two of the proposed amendments included in the Annual Improvements to IFRS Standards 2015–2017 Cycle related to IAS 12 Income Taxes and IAS 23 Borrowing Costs. They will also discuss a possible amendment to IFRIC 14 IAS 19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

The day finishes with a session on Disclosure Initiative: Materiality Practice Statement. The staff are responding to comments received as a result of an external review of the draft practice statement. This session was originally scheduled for discussion in June.

Wednesday 19 June

The morning session is devoted to the proposed amendment to IFRS 9 on prepayment features with negative compensation. The Board will continue to discuss the feedback from comment letters. The staff are asking the Board to finalise the amendments, but with an effective date of 1 January 2019, rather than the originally proposed 1 January 2018, with earlier application permitted.

In the afternoon the Board will continue its discussions on rate-regulated activities, focusing on control and matching; and recognition and uncertainty.

The meeting concludes with another education session on possible revisions to the assessment of goodwill impairment, mainly focusing on feedback from outreach.

More information

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

EFRAG seeks TEG applicants

10 Jul 2017

The European Financial Reporting Advisory Group (EFRAG) is calling for candidates for its Technical Expert Group (TEG).

The present mandate period of eight of the sixteen EFRAG TEG members expires on 31 March 2018 with six of the eight eligible for reappointment while two have reach their maximum term limits. The EFRAG is looking for a candidates from a wide range of backgrounds and geographic origins and prefers all candidates’ submissions to occur by 9 October 2017.

For more information, see the press release on the EFRAG’s Web site.

July 2017 IASB meeting agenda posted

08 Jul 2017

The IASB has posted the agenda for its next meeting, which will be held at its offices in London on 18 and 19 July 2017. There are six topics on the agenda.

The Board will discuss the following:

  • Insurance contracts
  • IFRS implementation issues
  • Disclosure initiative: Materiality practice statement
  • IFRS 9 - Prepayment features with negative compensation and modification of liabilities
  • Rate-reg­u­lated ac­tiv­i­ties (education session)
  • Goodwill and impairment (education session)

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.

OTS publishes report recommending simplifications to corporate taxation

07 Jul 2017

The Office of Tax Simplification (OTS) has published a report which makes a number of “practical recommendations” aimed at simplifying the corporation tax system from both the perspective of smaller and larger companies.

The report, which responds to calls from businesses to make the calculation of corporation tax simpler, specifically looks at:

  • Simpler tax for smaller companies.
  • Aligning the tax rules more closely with accounting rules.
  • Simplifying tax relief for capital investment.
  • Specific issues affecting the largest companies.

For smaller companies the report recommends:

  • That accounting profit prepared under FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime be used as the taxable profit without any adjustments.
  • For those smaller companies not able to apply FRS 105, the tax calculation should be simplified to require “only a minimum number of essential adjustments to accounting profit”.

For larger companies the report recommends improvements in a number of technical areas in the context of promoting stability and certainty in the corporation tax system.

The press release and full report are available on the OTS website.

FRAB minutes for June 2017 meeting released

07 Jul 2017

The minutes of the Financial Reporting Advisory Board’s (FRAB’s) meeting of 15 June 2017 have been made available on the HM Treasury website.

The role of the Financial Reporting Advisory Board (FRAB) is “to ensure that government financial reporting meets the best possible standards of financial reporting by following Generally Accepted Accounting Practice (GAAP) as far as possible”.  The FRAB includes representatives from the accountancy profession in the private and public sectors, academia and government bodies.  The board meets regularly to consider proposed changes to policy and practice. 

Key topics discussed during the meeting included:

  • Updates on IFRS 9 Financial Instruments, IFRS 16 Leases and IFRS 15 Revenue from Contracts with Customers
  • An update on European Public Sector Accounting Standards (EPSAS).
  • Whole of Government Accounts 2015-16
  • The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) 2018/19 Code of Practice on Local Authority Accounting in the UK 

Click here for detailed minutes and other supporting documents on HM Treasury website.

Agenda for the July 2017 ASAF meeting updated

06 Jul 2017

The International Accounting Standards Board (IASB) has released an updated agenda for the meeting of the Accounting Standards Advisory Forum (ASAF), which is to be held at the IASB's offices in London on 6-7 July 2017. Changes include moving the (1) improvements to IFRS 8 session to Friday, (2) post-implementation review of IFRS 13 to Thursday, and (3) altering the time of discussions for Friday’s sessions on wider corporate reporting, rate-regulated activities, and property, plant and equipment.

The updated agenda for the meeting is sum­marised below:

Thursday, 6 July 2017 (9:15-17:30)

  • Dis­clo­sure ini­tia­tive — Prin­ci­ples of dis­clo­sure — Dis­cus­sions related to the proposals in the dis­cus­sion paper
  • Goodwill and im­pair­ment — Dis­cus­sions on the ASBJ’s research paper, ‘Too little, too late,’ as well as feedback from Global Preparers Forum
  • IAS 8 — Accounting policy changes resulting from agenda decisions
  • Post-im­ple­men­ta­tion review of IFRS 13 — Gather pre­lim­i­nary feedback on the Request for In­for­ma­tion
  • Primary Financial State­ments — Gather views on the certain tentative decisions

Friday, 7 July 2017 (9:00-13:45)

  • Wider corporate reporting — Overview on wider corporate reporting and whether to consider an update to Practice Statement Man­age­ment Com­men­tary
  • Im­prove­ments to IFRS 8 Operating Segments (Proposed amend­ments to IFRS 8 and IAS 34) — Discuss views from ASAF members and preparers on four proposed amend­ments to IFRS 8 and IAS 34
  • Rate-reg­u­lated ac­tiv­i­ties — Dis­cus­sions on the proposed accounting model
  • Property, plant and equipment: Proceeds before intended use (proposed amend­ments to IAS 16) — Dis­cus­sions on the upcoming exposure draft
  • Project updates and agenda planning

Agenda papers for the meeting are available on the IASB's website.

EFRAG draft comment letter on proposed amendments to IAS 16

05 Jul 2017

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2017/4 'Property, Plant and Equipment — Proceeds before Intended Use (Proposed amendments to IAS 16)'.

EFRAG supports the IASB proposals; however, EFRAG does not believe the definition for ‘testing’ is needed since the proposed amendments “do not distinguish between net proceeds from selling items produced during the testing phase from any other proceeds prior to the item of property, plant and equipment being available for use.”

Comments on EFRAG's draft comment letter are requested by 13 October 2017. For more in­for­ma­tion, see the press release and the draft comment letter on the EFRAG website.

We comment on the IASB's proposed improvements to IFRS 8

05 Jul 2017

We have responded to the IASB's Exposure Draft 2017/2, "Improvements to IFRS 8 Operating Segments," that was published in March 2017.

We generally agree with the clarifications to IFRS 8 but have concerns with the practicability of certain proposed requirements and developments in technology which chief operating decision makers have access to.

Please click to access the full comment letter.

EFRAG survey on possible effects of IFRS 9 on equity portfolios

04 Jul 2017

The European Financial Reporting Advisory Group (EFRAG) has prepared an online questionnaire to collect evidence from European constituents on information about the significance of their existing investments in equity instruments and the possible effects of IFRS 9 'Financial Instruments' on their equity portfolios.

The questionnaire that can be completed until 30 September 2017 was developped following a request for technical advice from the European Commission. The information collected will be used in later phases of the project.

More Information on the background and objective of the public consultation is provided in the press release on the EFRAG website. The survey can be accessed through the press release.

 

EFRAG publishes summary report for its joint outreach event on principles of disclosure in Copenhagen

04 Jul 2017

On 14 June 2017, the Confederation of Danish Industry (DI) and the Danish standard-setter FSR, together with EFRAG, hosted a joint outreach event in Copenhagen on the IASB discussion paper DP/2017/1 'Disclosure Initiative — Principles of Disclosure'. A summary report related to this outreach event has now been provided.

The English language event introduced the main elements of the discussion paper and gave the preliminary European view on the paper. It also sought input on the key questions in the paper that will be used by EFRAG, DI and FSR in providing their input to the IASB.

Participants pointed out that clear disclosure objectives are necessary in IFRS and that disclosure requirements should be proportional to users' needs. Disclosures should provide useful information on how entities operate and develop their business. The possibility to disclose non-IFRS information could help to achieve this.

The press release and the summary report can be found on the EFRAG website.

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