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Charity Commission publishes study on external scrutiny of charity accounts

04 Sep 2019

The Charity Commission has published a study which looked at the quality of external scrutiny of charity accounts by auditors and independent examiners.

The study assessed the accounts of 296 charities against a new external scrutiny benchmark developed by the Charity Commission to determine whether a minimum standard of scrutiny by auditors and independent examiners had been met. The benchmark is based on the requirements of the Charities Act 2011, the Charities Statement of Recommended Practice (SORP), auditing standards and the Commission’s Directions for independent examiners.

Only three quarters of charities with income over £1 million met the external scrutiny benchmark. This fell to 51% in the case of charities with income of £250,000 - £1 million and just 37% for charities with income below £250,000. Particular issues included incomplete reporting of related party transactions (for which a separate report discussing the findings in more detailed is linked below) and charitable companies failing to provide a separate summary income and expenditure account, or not stating that it was included in the Statement of Financial Activities. The Charity Commission also noted that accounts reviewed by an auditor met the benchmark more frequently than those reviewed by an independent examiner.

As a result of its findings the Charity Commission has issued updated guidance for trustees on independent examination (CC31). It has also made the external scrutiny benchmark available on its website.

Click for (all links to the Charity Commission website):

EFRAG research into crypto assets

04 Sep 2019

The European Financial Reporting Advisory Group (EFRAG) is currently conducting research into accounting challenges that are not addressed within existing IFRSs. In this context, it is looking for input from crypto-assets experts.

EFRAG is seeking to engage with subject matter experts and practitioners to discuss the following:

  • Issuance via initial coin offerings and similar offerings;
  • Holding/investing activities and payment services;
  • Custodial and storage services; and
  • Mining services.

The outreach will be conducted through phone interviews and the questions will be shared before the interview.

Please click for more information on the EFRAG website.

Financial Reporting Lab publishes quarterly newsletter

03 Sep 2019

The Financial Reporting Lab ("the Lab") has published its Q2 newsletter providing highlights of its activities in the second quarter of 2019.

The newsletter provides an update of the Lab's three current projects and a brief overview of its other activities:

The full newsletter is available on the FRC website here.

IASB publishes "Investor Perspectives" article on proposed amendments to IFRS 17

03 Sep 2019

The IASB has issued the latest issue of "Investor Perspectives." In this edition, IASB board member Nick Anderson discusses the new disclosures in the targeted amendments to IFRS 17.

Specifically, this issue features insight into the proposed amendments related to commission paid on short-term insurance contracts with expected renewals and profit recognition on long-term insurance contracts with investment returns.

For more in­for­ma­tion, see the press release and Investor Per­spec­tives article on the IASB’s website.

September 2019 meeting of the ICAEW FRDG

03 Sep 2019

The next meeting of the Institute of Chartered Accountants in England and Wales (ICAEW) Financial Reporting Discussion Group (FRDG) will be held on 17 September 2019 in London.

The meeting will cover an update from the Financial Reporting Lab on its current and future projects including:

Click here for more information and how to register.

New appointments to the FRC

03 Sep 2019

The Financial Reporting Council (FRC) has appointed Anne Whitaker to the FRC’s Conduct Committee following her appointment as Chair of the Audit Quality Review Committee (AQRC).

Anne replaces David Cannon who has served as Chair of the AQRC and a member of the Conduct Committee since September 2015.

The press release can be found on the FRC website here.

Updated IASB work plan — Analysis

03 Sep 2019

Following the IASB's August 2019 meeting, we have analysed the IASB work plan to see what changes have resulted from the meeting and other developments since the work plan was last revised in July.

Below is an analysis of all changes that were made to the work plan since our last analysis on 29 July 2019.

Standard-setting projects

  • No changes

Maintenance projects

  • Amendments to IFRS 17 — Discussions on feedback received on the exposure draft is expected to occur in November 2019 (previously fourth quarter of 2019)
  • Disclosure initiative — Accounting policies — An exposure draft was published on 1 August 2019, discussions on the feedback received on the exposure draft are expected begin in November 2019
  • IBOR reform and its effects on financial reporting (Phase 1) — discussions on the feedback received on the exposure draft were concluded in August 2019, the staff will prepare the final amendments for publication (no date given)
  • IBOR reform and its effects on financial reporting (Phase 2) — newly added to the work plan, no date given for the planned exposure draft

Research projects

  • SME Implementation Group draft Q&A — newly added o the work plan, discussion of the feedback on the draft Q&A is expected to begin in the fourth quarter of 2019

Other projects

  • Updated IFRS Foundation Due Process Handbook — Discussions on feedback received on the exposure draft is expected to occur in October 2019 (previously fourth quarter of 2019)

The above is a faithful comparison of the IASB work plan at 29 July 2019 and at 3 September 2019. For access to the current IASB work plan at any time, please click here.

IASB issues podcast on latest Board developments (August 2019)

29 Aug 2019

The IASB, which normally does not meet in August, held an additional meeting on 28 August 2019 to discuss feedback received on ED/2019/1 'Interest Rate Benchmark Reform (Proposed amendments to IFRS 9 and IAS 39)'. The IASB has released a podcast featuring IASB Vice-Chair Sue Lloyd and communications team member Kirstina Reitan to discuss the deliberations at the meeting and the timeline of the project.

The 7-minute podcast can be accessed through the press release on the IASB website. More information on the discussions is available through our comprehensive notes taken by Deloitte observers at the August IASB meeting.

Agenda for the October 2019 ASAF meeting

29 Aug 2019

The International Accounting Standards Board (IASB) has released an agenda for the meeting of the Accounting Standards Advisory Forum (ASAF), which is to be held at the IASB's offices in London on 3 October 2019.

The agenda for the meeting is summarised below:

Thursday, 3 October (09:30-16:20)

  • Financial instruments with characteristics of equity
    • Update on the Board’s discussion of the project
    • Project direction
  • Dynamic Risk Management
    • Overview of the core model
    • ASAF members' help with obtaining feedback on the model
  • IBOR phase II
    • Update on the draft scope for the project
  • Disclosure initiative – Accounting policies
    • ASAF members’views on the exposure draft published in August
  • Agenda planning
  • Agenda consultation
    • Introduction to the 2020 agenda consultation request for views
  • Accounting estimation
    • Overview of the KASB research project on exploring the definition of accounting estimation

For more information, please see the agenda on the IASB's website.

August 2019 IASB meeting notes posted

28 Aug 2019

The IASB, which normally does not meet in August, held an additional meeting on 28 August 2019 to discuss feedback received on ED/2019/1 'Interest Rate Benchmark Reform (Proposed amendments to IFRS 9 and IAS 39)'. We have posted our comprehensive Deloitte observer notes for this discussion.

The Board decided that the amendments will: include an exception to the requirement in IAS 39 for retrospective assessment when a hedge is temporarily outside the 80–125% range solely due to uncertainties arising from the reform; provide relief from the separately identifiable requirement for ‘macro hedges’; clarify when the relief ceases to apply to a group of items designated as the hedged item; clarify that the amendments would apply to hedges of both interest rate and foreign currency risks; and simplify the disclosure requirements.

The staff will prepare the final amendments for publication.

Please click to access the detailed notes taken by Deloitte observers for this discussion.

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