February

IASB issues podcast on latest Board developments (January 2020 Board meeting)

05 Feb, 2020

The IASB has released a podcast, featuring IASB Vice-Chair Sue Lloyd and IASB Board member Nick Anderson, to discuss the deliberations at the January 2020 IASB meeting, matters raised by the IFRS Interpretation Committee, and the recently-issued request for information in the context of the comprehensive review of the IFRS for SMEs.

The 15-minute podcast features discussions related to:

  • Subsidiaries that are SMEs
  • Provisions
  • Pension benefits that depend on asset returns
  • Amendments to IFRS 17 Insurance Contracts
  • IBOR reform and the effects on financial reporting
  • Business combinations under common control
  • Disclosure initiative: Targeted standards-level review of disclosures
  • Matters raised by the IFRS Interpretation Committee
  • Request for information in the context of the comprehensive review of the IFRS for SMEs

The podcast can be accessed through the press release on the IASB website. More information on the topics discussed is available through our comprehensive notes taken by Deloitte observers at the January IASB meeting.

IASB posts webinar on exposure draft on general presentation and disclosures, announces Japanese language presentation

11 Feb, 2020

The IASB has posted a webinar on Exposure Draft, ‘General Presentation and Disclosures’.

The webinar summarises main proposals in the exposure draft, including subtotals in the statement of profit and loss, disaggregating information, and management performance measures.

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

In addition, the IASB hosted a similar webinar in the Japanese language on 19 February 2020. Please click here to view this webinar.

IASB releases podcast on IFRS 17

03 Feb, 2020

The IASB has released a podcast featuring IASB member Darrel Scott and technical staff member Roberta Ravelli as they discuss the developments at the January 2020 Board meeting related to the amendments to IFRS 17 'Insurance Contracts'.

The podcast discusses the amend­ments ten­ta­tively finalised during the meeting and focuses on credit card contracts, risk mitigation option, contracts acquired in a settlement period, and acquisition cash flows.

The podcast can be accessed through the press release on the IASB website. Our summary of the meeting and the results of the IASB's votes is available here.

IFAC and ACCA issue reporting on the implementation of accrual accounting in the public sector

26 Feb, 2020

The IFAC and ACCA have issued a report, ‘Is Cash Still King? Maximising the Benefits of Accrual Information in the Public Sector’, which discusses the transition by governments to move from cash to an accrual basis for their financial reporting and the lessons learned during implementation.

The report provides information on the current reporting environment, the benefits of accruals in the public sector, lessons learned during the implementation phase, and key findings and recommendations.

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

IFRS Foundation appoints new Chair of the IFRS Advisory Council

11 Feb, 2020

The Trustees of the IFRS Foundation have announced that Bill Coen has been appointed as new Chair of the IFRS Advisory Council.

Mr Coen follows Joanna Perry whose term ended in December 2019. He was Secretary General of the Basel Committee on Banking Supervision from 2014 to 2019 and Deputy Secretary General from 2007 to 2014. Mr Coen served on the IFRS Advisory Council from 2016 until 2019.

Mr Coen has been appointed for 12 months and can be reappointed once. At the end of phase, the Trustees intend to appoint a new Chair through a public nomination process.

Please click for more information in the press release on the IASB website.

IFRS Foundation seeks new SMEIG members

24 Feb, 2020

The IFRS Foundation Trustees are currently seeking nominations for membership of the SME Implementation Group (SMEIG), which supports the international adoption of the 'International Financial Reporting Standards for Small and Medium-sized Entities' (IFRS for SMEs) and monitors its implementation.

The Trustees are seeking new SMEIG members from all geographical regions and are particularly interested in candidates who use the financial statements of small and medium-sized entities (investors and providers of finance). They will be appointed from 1 July 2020 and would serve three-year terms. Nominations for membership of the SMEIG close on 20 March 2020. Please click for the IASB press release (link to IASB website).

IFRS Foundation Trustees' stakeholder event with focus on non-financial reporting

19 Feb, 2020

At the joint stakeholder event hosted by the IFRS Foundation and the European Financial Reporting Advisory Group (EFRAG) during the meeting of the Trustees in Brussels on 18 February, participants discussed 'Financial reporting: remaining relevant in a changing environment'.

The keynote address was delivered by Executive Vice President of the European Commission Valdis Dombrovskis. He noted that the European Commission (EC), at the beginning of a new five-year mandate, hat two major tasks to focus on - the fight against climate change and digital transformation. In his speech on non-financial reporting, Mr Dombrovskis connected both topics. He explained that today a much broader range of information is needed from companies and that in order for corporate reporting to remain relevant in this changing world, it needs to evolve. Mr Dombrovskis referred to the recently launched initiative to review the Non-Financial Reporting Directive and mentioned that the EC will ask EFRAG to begin work on non-financial reporting standards soon. However, he stressed, that while the EU is taking the lead on this, it "cannot go alone". Rather, Mr Dombrovskis explained, the EU initiative will be a platform that will allow and need others to contribute to developing these standards - he referred expressly to the IASB and other standard-setters and organisations "from around the world". Turning to digitalisation, Mr Dombrovskis commented that common standards are not only needed to achieve comparability in non-financial reporting, they would also provide a good basis for harnessing digital developments to help make fragmented and scattered information accessible and machine readable. His thoughts included broadening the new European Single Electronic Format (ESEF) to non-financial reporting and he noted that the digital financial strategy the EC is currently developing would extend to both financial and non-financial reporting.

Following the keynote address, the Chairman of the IFRS Foundation Trustees Erkki Liikanen moderated a panel discussion with MEPs Sven Giegold and Sirpa Pietikäinen, both members of the Committee on Economic and Monetary Affairs (ECON) of the European Parliament. Again, non-financial reporting was at the heart of the discussion. Ms Pietikäinen pointed to the 200 plus frameworks and sets of standards for sustainability reporting that currently exist. She asked the audience to imagine such a situation for financial reporting and stressed that non-financial reporting must be harmonised and must be made mandatory to achieve comparability. Ms Pietikäinen expressed the belief that this must be done globally. She suggested that there is no better place to have such a global standard-setter than under the auspices of the IFRS Foundation. Asked what the IFRS Foundation and the IASB should think or worry about regarding climate change and financial reporting, Mr Giegold explained that the climate crisis is a similar crisis to the financial crisis. Before the financial crisis, financial statements did not give a true and fair view of the risks companies were exposed to. Similarly, financial statements now would not faithfully portray the risks companies are exposed to as regards the climate change. He pointed out that ESG risks have a huge economic impact. He acknowledged the IASB's efforts around the management commentary, however, he called it the "blah blah" and asked the IASB to become active and develop rules that would allow to reflect ESG risks and their economic impact in the financial statements themselves.

A transcript of Mr Dombrovskis speech is available on the EC website.

IIRC calls for feedback in the context of the planned revision of its Framework

20 Feb, 2020

The International Integrated Reporting Council (IIRC) has launched a revision of the International <IR> Framework and is calling for market feedback on specific themes that will inform the nature and direction of the revision.

The IIRC has identified key themes around which it invites feedback, outlined in three topic papers on a) business model considerations, b) responsibility for an integrated report, and c) charting a path forward. The first two topic papers relate to the current <IR> Framework revision process. The third topic paper forges ahead with themes shaping the future of corporate reporting, including extended assurance and the role of technology. Feedback on this paper will inform the IIRC’s longer-term strategy.

Each topic paper separately invites market feedback via an online survey. Responses are requested by 20 March 2020. Please see the following additional information on the IIRC website:

Proposed amendments to the Framework will receive 90-day public exposure via a consultation draft, launching in May 2020. The revised Framework is due for release at the end of 2020.

Investment Association issues publication setting out shareholder priorities for 2020

14 Feb, 2020

The Investment Association has issued a publication setting out priority areas for shareholders in 2020.

The role of investment managers is to invest on behalf of savers around the world seeking to deliver long term returns which meet their investment needs. One way they do this is by ensuring that the companies in which they invest in are run to generate long term returns for shareholders and ultimately savers. The investment managers have high expectations of UK listed companies which cover more than just share price performance or dividend yield. Investors now expect companies to be run taking into account a wider range of factors including environmental, social and governance issues.

The publication sets out the expectations of the Investment Association in four areas that its members believe can be critical drivers of long-term value:

  • Responding to climate change;
  • Audit quality;
  • Stakeholder engagement; and
  • Diversity.

It outlines why investors consider these four issues to be important areas of focus for companies in 2020 and also sets out their expectations for change in 2020. For companies with year ends on or after 31 December 2029, IVIS, the IA’s Corporate Governance research service, will assess the progress made and highlight where they are not meeting investor expectations.

The full publication is available on the Investment Association website here.

IPSASB completes set of guidance on accounting for government programmes

03 Feb, 2020

The International Public Sector Accounting Standards Board (IPSASB) has issued 'Collective and Individual Services (Amendments to IPSAS 19)'. The guidance addresses a wide range of significant government expenditures.

In January 2019, the IPSASB issued IPSAS 42 Social Benefits providing guidance on accounting for social benefits expenditure. Together with the new standard, the IPSASB published an exposure draft of guidance complementing IPSAS 42 by providing requirements for accounting for collective services (such as defense at national-levels and street lighting at sub-national levels) and individual services (such as healthcare and education), which has now been finalised. Collective and Individual Services requires that an expense is recognised at the point of service delivery and is effective for periods beginning on or after 1 January 2022.

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

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