EFRAG and ASBJ discussed the following topics:

• Goodwill,
• Rate-regulated activities,
• Negative interest rates,
• Insurance contracts, and
• the IASB’s better communication project.

The next meeting between the EFRAG and ASBJ will be held in Brussels in 2018. A press release is available on the ASBJ website.

The conference will focus on IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases and on practical implementation issues and challenges of these new standards.

For more information and registration, see the conference page on the IASB’s website.

The English language event will introduce the main elements of the discussion paper and will give the preliminary European view on the paper. It also seeks input on a number of the key questions in the paper that will be used by EFRAG and NASB in providing their input to the IASB.

Please click for the following additional information:

• Press release on the EFRAG website
• Registration for the event on the NASB website

In the webcast, IASB Vice-Chair Sue Lloyd and Technical Director Kumar Dasgupta talk through key requirements of IFRS 9 Financial Instruments that are relevant when an entity determines the expected life of revolving facilities, such as credit cards and overdrafts, by considering its normal credit risk management actions.

The webcast is available on the IASB’s website.

Major valuation topics identified in the consultation paper as potential IVSC projects include non-financial liabilities, discount rates, early stage valuation, biological assets, extractive industries, and inventory. The IVSC also thinks that targeted improvements might make sense as regards control premium and discount for lack of control, capital structure considerations, and development value. The consultation paper also indentifies certain topics for potential future projects that the IVSC believes represent medium to longer terms goals of IVSC and are not priorities.

Please click to access the consultation paper on the IVSC website. Comments are requested by 15 August 2017.

The web presentations will provide an overview of the new requirements and will allow participants to ask questions. Registration is required (on the IASB's website) for the 18 May web presentations:

• Session at 9:00 (GMT)
• Session at 15:00 (GMT)

Stay tuned to IAS Plus for in­for­ma­tion on IFRS 17; we will have timely, com­pre­hen­sive coverage of the new insurance contracts standard to help readers un­der­stand the re­quire­ments and im­pli­ca­tions.

Both organisations have a public interest mission and they believe that combining their expertise and extensive networks will support developing economies to achieve sustainable and comprehensive development built on transparency, accountability, and efficient financial markets.

The Memorandum of Understanding notes three priorities of collaboration:

• Implementation of IFRSs and the IFRS for SMEs by encouraging adoption, supporting accessibility, and conducting research;
• Capacity development for the implementation of IFRSs by developing scalable programmes, supporting professional development, and thought leadership; and
• Enhancing engagement in standards development by strengthening standard-setting capabilities and participating in advisory bodies of the IFRS Foundation.

Please click to access the following information of the IASB website:

• Press release
• Memorandum of Understanding
• Video discussing the Memorandum of Understanding

The EBA guidelines build on the guidance by the Basel Committee on Banking Supervision (BCBS) in December 2015 on the same matter and feature a detailed section on the application of IFRS 9 Financial Instruments. A draft of the guidelines was subject to a three-month consultation period between July 2016 and October 2016. The guidance notes:

The EBA welcomes the move from an incurred loss model to an ECL model under IFRS 9. IFRS 9 is, overall, an improvement compared to IAS 39 in the accounting for financial instruments and the changes on credit loss provisioning should contribute in addressing the G20’s concerns about the issue of ‘too little, too late’ recognition of credit losses and improve the accounting recognition of loan loss provisions by incorporating a broader range of credit information. IFRS 9 is therefore expected to address some prudential concerns and contribute to financial stability. However, the application of IFRS 9 also requires the use of judgement in the ECL assessment and measurement process which could potentially affect the consistent application of IFRS 9 across credit institutions and the comparability of credit institutions’ financial statements.

The EBA notes that the objective of the guidelines is to be in line with the BCBS guidance. The EBA guidelines would also not prevent credit institutions from meeting the impairment requirements in IFRS 9. The guidelines should be implemented by 1 January 2018.

Please click for the following additional information on the EBA website:

• Press release
• Final guidance

As calls for the exercise of increased professional scepticism grow, the report “explains how cognitive biases are central to improving the exercise of professional scepticism and to understanding the fundamental ethical principal of objectivity”. 

It “recommends a holistic approach that encourages market participants to think actively about cognitive bias and take steps to minimise its impact on audit quality”. 

A number of recommendations for standard setters, regulators and auditors are put forward to improve and encourage audit quality and tackle cognitive bias in the audit process. 

The press release and report are available on the ACCA website. 

The main drivers for the revisions are:

• revisions to UK auditing standards (ISAs (UK));
• changes to UK accounting standards (Financial Reporting Standard (FRS) 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland) and the revision of the charities Statement Of Recommended Practice (SORP);
• continuing developments in regulation and guidance issued by the Charity Regulators; and
• changes in relevant legislation. 

Comments are requested until 25 August 2017. 

The press release and invitation to comment are available on the FRC website.