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2019

HM Treasury issues new financial reporting manual (FReM)

02 Jan 2019

HM Treasury has issued a revised version of the government financial reporting manual (FReM) (2019-20).

The Government Financial Reporting Manual (FReM) is the technical accounting guide to the preparation of financial statements. It complements guidance on the handling of public funds published separately by the relevant authorities in England and Wales (HM Treasury and the Welsh Government respectively), Scotland (the Scottish Government) and Northern Ireland (the Executive Committee of the Northern Ireland Assembly). The FReM is prepared following consultation with the Financial Reporting Advisory Board (FRAB) and is issued by the relevant authorities.
 
The FReM applies to “all entities, and to funds, flows of income and expenditure and any other accounts that are prepared on an accruals basis and consolidated within Whole of Government Accounts (with the exception of the accounts of any reportable activities that are not covered by an Accounts Direction)”. It does not apply to Local Government, those Public Corporations that are not Trading Funds, and NHS Trusts, NHS Foundation Trusts and Clinical Commissioning Groups.
 
The press release, latest version of the FReM and application guidance are available on the HM Treasury website.

Board member of the ASBJ elected next IFASS Chair

02 Jan 2019

The International Forum of Accounting Standard Setters (IFASS) has elected Mr Yasunobu Kawanishi, Board member of the Accounting Standards Board of Japan (ASBJ), as Chair-designate.

Mr Kawanishi became Director of International Activities at the ASBJ in 2013. From 2013-2016 he was Visiting Fellow at the IASB. In 2016 he became a full-time Board member of the ASBJ.

Mr Kawanishi follows Ms Liesel Knorr, former President of the German standard-setter ASCG, who was elected IFASS Chair in 2016 and who will hand over responsibilities to her successor in March 2019.

The ASCG and the ASBJ have issued press releases announcing the upcoming change in IFASS chairmanship.

New developments at AAOIFI and IFSB

01 Jan 2019

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued four new exposure drafts and the Islamic Financial Services Board (IFSB) has adopted three new standards.

The AAOIFI exposure drafts are the following (links to the press releases on the AAOIFI website):

The three new IFSB standards are:

  • IFSB-20: Key Elements in the Supervisory Review Process of Takāful / Retakāful Undertakings [Islamic Insurance Segment];
  • IFSB-21: Core Principles for Islamic Finance Regulation [Islamic Capital Market Segment]; and
  • IFSB-22: Revised Standard on Disclosures to Promote Transparency and Market Discipline for Institutions Offering Islamic Financial Services (IIFS) [Banking Segment].

More information is available in the press release on the IFSB website.

In addition, the IFSB has published Frequently Asked Questions for its four standards on capital adequacy, liquidity risk management, Sharīʻah Governance and Solvency Requirements in Takāful. More information is available here.

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