On 22 November 2017, the EFRAG requested volunteers to participate in a detailed case study on IFRS 17; however, requests were made to simplify the case study for participants who did not have the resources to complete the detailed case study. The EFRAG invites any European insurance group that applies IFRSs under the provision of the IAS Regulation and has not completed the detailed case study to participate in the simplified version.

Responses are requested by 31 May 2018. For more information, see the press release on the EFRAG’s website.

Most recently, Mr White was the Chief Executive Officer of Chartered Accountants Australia and New Zealand. Previously, he worked as Chief Accountant at the Australian Securities and Investment Commission and was a member of the Australian Financial Reporting Council, the International Organization of Securities Commissions, and the International Forum of Independent Audit Regulators.

For more information, see the press release on the IASB’s website.

Changes

The amendments in Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) are:

• If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement.
• In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.

Effective date and transition requirements

An entity applies the amendments to plan amendments, curtailments or settlements occurring on or after the beginning of the first annual reporting period that begins on or after 1 January 2019. Early application is permitted but must be disclosed.

Additional information

Please click for:

• IASB press release (link to IASB website)
• Our UK Accounting Plus project page on IAS 19/IFRIC 14 — Remeasurement at a plan amendment, curtailment or settlement / Availability of a refund of a surplus from a defined benefit plan
• Updated EFRAG endorsement status report
• Our related Need to know publication

In December 2017 the IASB concluded its discussions of the scope of the project and the webinar discussed the Board’s decisions and illustrative examples of transactions within the scope.

Please click to access the recording on the IASB website.

The strategic objective of the IPSASB is stated as strengthening public financial management through increasing adoption of the International Public Sector Accounting Standards (IPSAS). The IPSASB intends to deliver this objective through developing IPSAS and other high-quality financial reporting guidance for the public sector and raising awareness of IPSAS and the benefits of accrual adoption.

To develop standards on critical areas in public sector accounting, the IPSASB proposes to take on three new major public sector specific projects:

• accounting for natural resources,
• discount rates, and
• differential reporting.  

The IPSASB will also continue to strive to maintain convergence with International Financial Reporting Standards (IFRSs).

Please click to access the proposed strategy and work plan and supporting material on the IPSASB website. Comments are requested by 15 June 2018.

An agenda with supporting papers and details on how to register for the public meeting can be found on the EFRAG website.

The ED proposes a single right-of-use model for lease accounting that will replace the risk and rewards incidental to ownership model in IPSAS 13.

For lessees, the ED proposes to adopt the right-of-use model in IFRS 16 Leases.

However, the ED proposes a departure from IFRS 16's requirements for lessor accounting. As converging with the requirements for lessors under IFRS 16 would “give rise to a number of public sector specific issues”, the IPSASB also proposes a right-of-use model for lessor accounting specifically designed for public sector financial reporting.

Proposals for new public sector specific guidance on concessionary leases for both lessors and lessees are also contained in the ED.

Comments are requested until 30 June 2018.

A press release and the full exposure draft are available on the IPSASB website.

The Update reports on the EFRAG Board conference call 16 January and the EFRAG TEG meeting on 17-18 January.
 
The Update also lists EFRAG publications issued in January:

• EFRAG's draft endorsement advice on the IASB's publication Annual Improvements to IFRS Standards 2015-2017 Cycle;
• EFRAG's final comment letter and feedback statement on the IASB's Exposure Draft ED/2017/5 Accounting Policies and Accounting Estimates - Proposed amendments to IAS 8;
• EFRAG's final comment letter and feedback statement on the IASB's Exposure Draft ED/2017/6 Definition of material - Proposed amendments to IAS 1 and IAS 8; and
• EFRAG's letter to the European Commission to report on the findings of the first phase (the assessment phase) of its research project Equity Instruments -Impairment and Recycling.

Please click to download the January EFRAG Update from the EFRAG website.

EFRAG is specifically looking for economic and behavioural expertise to assist in its impact analysis. It will then use this as one of the inputs to its endorsement advice to the European Commission on whether IFRS 17 would be conducive to the European public good.

EFRAG is also conducting its own activities that will support the development of its endorsement advice including surveys, case studies and outreach events.

Further information is available on the EFRAG website here.

The HLEG calls on the European Commission (EC) to “place greater emphasis on the need to integrate non-financial information” in the EU Directive on non-financial reporting. The final report states, “The ultimate ambition has to be convergence or integration of financial and non-financial or sustainability information… Integrated reporting supports this convergence qualitatively through reporting that links sustainability factors with company strategy.”

In more detail, the recommendations of the HLEG to the EC are:

Please click to access the final report and supporting materials on the EC website.