In the annual report, the FSB especially notes expected loan loss provisioning (IFRS 9 and the FASB's current expected credit loss model). The FSB has asked the standard-setters to monitor the consistent implementation of their standards. The annual report also notes IFRS 17 as setting out a single, consistent approach to accounting for insurance contracts.

In his letter to G20 Leaders, the FSB Chair especially comments on mitigating the financial stability risks from climate change through the Taskforce on Climate-related Financial Disclosures (TCFD). He notes "encouraging progress" and that a many companies are already reporting against some of the recommendations. The letter states: "Adoption can be expected to widen and improve as the private sector refines emerging good practice in efficient, decision-useful material climate-related financial disclosure."

Please click for the two documents on the FSB website:

• Annual report
• Letter to G20 Leaders

The guide, which is written for directors of private companies limited by shares with more than one director, provides an overview of directors' responsibilities and duties, including on internal governance, transactions between a company and its directors or shareholders, and corporate administration. It also covers responsibilities in relation to insolvent or financially challenged companies, as well as penalties for breach of directors' responsibilities.

The guide is available on the ICAEW website.

In the first phase of the project, the European Commission asked EFRAG to collect quantitative data on the current holdings of equity instruments and their accounting treatment and investigate if entities expect that the new accounting requirements will affect their decisions in relation to investment in equity instruments. EFRAG reported its findings from this first phase in January 2018.

In the second phase of the project, EFRAG investigated whether and how the requirements in IFRS 9 on accounting for holdings of equity instruments could be improved. EFRAG published a discussion paper to gather constituents' views on recycling and impairment of equity instruments designated at fair value through other comprehensive income on 1 March 2018 and made available the results of a literature view on IFRS 9 and long-term investment on 28 March 2018. EFRAG has now published its final response to the second phase of the EC request. The response addresses the interaction between an impairment model and the reintroduction of recycling, and what characteristics an impairment model for equity instruments could have. The letter notes:

The majority of respondents that expressed a view were in fact more supportive of an impairments model similar to IAS 39. [...] However, there is no consensus on how to reach an approprioate balance between relevance and comparability. [...] EFRAG maintains that a degree of rigour in the use of the election or the impairment model would be essential to ensure comparability.

Please click to access the full response on the EFRAG website.

EFRAG also notes that it is currently working on a second request for technical advice on possible alternative accounting treatments for equity and equity-type instruments. The European Commission asked for EFRAG's technical advice on this aspect of IFRS 9 by the second quarter of 2019.

The guidance includes:

• a summary of key suggestions and matters for directors to consider;
• practical steps directors can take to help them discharge their s172 duty;
• the legal context of the s172 duty; and
• an example scenario of how directors in a specific business situation could discharge their duties.

The guidance is available on the GC 100 page on the Practical Law website.  Our related Governance in brief publication is available here.

The amendments also clarify that the Chair of the Trustees can be appointed either from among the Trustees or externally and specify that the Vice-Chairs must be appointed from the Trustee ranks.

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

• Press release
• Feedback statement
• Amended constitution

The Taskforce was set up on the initiative of the UK Financial Conduct Authority, the Financial Reporting Council and the Prudential Regulation Authority. The membership of the Taskforce includes Banks, Institutional Investors and Rating Agencies.

The Taskforce’s report sets out recommendations on the content of a comprehensive set of IFRS 9 Expected Credit Losses disclosures in order to promote high quality, comparable ECL-related disclosures.

A press release, letter to co-chairs and the full report are available on the FRC website.

This remuneration guidance sets out its members’ views on the role of shareholders and directors in relation to remuneration and the manner in which remuneration should be determined and structured.

Updates to the Principles, which have been made due to make the Principles "cleaner and sharper" and to reflect the new UK Corporate Governance Code and developing best practice.

Additionally the IA has issued a letter to Remuneration Committee chairmen highlighting key aspects of the Principles that its members have asked to be re-emphasised to companies. These areas include:

• investor and remuneration committee relations;
• shareholder engagement;
• new reporting requirements;
• levels of remuneration; and
• pay for performance.

The press release, revised Principles of Remuneration and letter to the chairs of Remuneration Committees are available from the IVIS website.

For more information please see the press release on the EFRAG website.

This issue features:

• Spotlight — Financial Instruments with Characteristics of Equity project
• Spotlight — IFRS 9 & 15 implementation update
• We need your views
• Stay up to date

The Investor Update newsletter is available on the IASB’s website.

EFRAG notes that the purpose of the DP is "to encourage debate on:

• a) whether transfers in which an entity either receives or gives value from another entity without directly giving or receiving approximately equal value in exchange [NETs] have differentiating characteristics that could warrant a specific accounting treatment; and
• b) if a specific accounting treatment is warranted, the possible features of that accounting treatment. The DP therefore explores a comprehensive approach and conceptual basis for the recognition of NETs."

The DP and a press release are available on the EFRAG website. Comments are due by 30 April 2019.