2020 IFRS XBRL taxonomy issued

17 Mar, 2020

The IFRS Foundation has issued its 2020 IFRS Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language).

The IFRS Taxonomy 2020 is consistent with IFRSs as issued by the IASB at 1 January 2020, including those issued but not yet effective.

The IFRS Foundation has also published IFRS Taxonomy 2019 — Update 1 Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7). The IFRS Taxonomy 2020 incorporates the changes resulting from this update.

For more information, see the press release and the IFRS Taxonomy 2020 page on the IASB's website.

2020 issued and annotated issued IFRS Standards now available

24 Mar, 2020

The IFRS Foundation announces that the annual publication formerly known as the 'Red Book' is now available.

The Issued IFRS Standards 2020 publication contains the Standards as approved by the International Accounting Standards Board for issue up to 31 December 2019. These Standards include changes that are not yet required at 1 January 2020. The Annotated Issued IFRS Standards 2020 includes the same content as Issued IFRS Standards 2020, but with additional annotations containing extensive cross-references, explanatory notes and IFRS Interpretations Committee agenda decisions.

The books are available in electronic format for subscribers to eIFRS Professional. Printed copies of the books are available for sale through the IASB's web shop.

Accounting considerations related to coronavirus disease 2019

12 Mar, 2020

Global responses to the coronavirus disease 2019 (COVID-19) outbreak continue to rapidly evolve. COVID-19 has already had a significant impact on global financial markets, and it may have accounting implications for many entities.

Some of the key impacts include, but are not limited to:

  • Interruptions of production.
  • Supply chain disruptions.
  • Unavailability of personnel.
  • Reductions in sales, earnings, or productivity.
  • Closure of facilities and stores.
  • Delays in planned business expansions.
  • Inability to raise financing.
  • Increased volatility in the value of financial instruments.
  • Reduced tourism, disruptions in nonessential travel and sports, cultural and other leisure activities.

In addition, entities should consider the increasingly broad effects of COVID-19 as a result of its negative impact on the global economy and major financial markets.

Entities must carefully consider their unique circumstances and risk exposures when analysing how recent events may affect their financial reporting. Specifically, financial reporting and related financial statement disclosures need to convey all material effects of COVID-19.

The FRC has recently issued advice on this matter which is available here.

Read more in Deloitte's Need to know newsletter.

Agenda for the April 2020 ASAF meeting

20 Mar, 2020

The International Accounting Standards Board (IASB) has released an agenda and meeting papers for the meeting of the Accounting Standards Advisory Forum (ASAF), which is to be held by remote participation on 2 April 2020.

The agenda for the meeting is summarised below:

Thursday, 2 April (11:00-15:30)

  • IBOR reform and its effects on financial reporting — Phase 2
    • ASAF members' initial views on the proposals in the exposure draft
  • Agenda planning
  • Goodwill and Impairment
    • Board’s preliminary views included in the discussion paper
    • ASAF members’ views on the feedback process for the discussion paper and areas of focus during the comment and outreach period
    • FASB presentation on the feedback received on the invitation to comment Identifiable Intangible Assets and Subsequent Accounting for Goodwill
    • Presentation by the ASBJ and HKICPA of their paper on accounting for goodwill
  • Primary financial statements
    • ASAF members' initial views on the proposals in the exposure draft

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

Agenda for the March 2020 CMAC meeting

17 Mar, 2020

Representatives from the International Accounting Standards Board (IASB) will meet with the Capital Markets Advisory Council (CMAC) by video conference on 26 March 2020. The agenda for the meeting has been released.

The full agenda for the meeting is summarised below:

Thursday, 26 March 2020 (10:00-14:25)

  • Welcome and introduction of new members
  • Primary financial statements: Exposure Draft General Presentation and Disclosures
    • Overview of the Exposure Draft
    • Preliminary feedback from members
  • Financial instruments with characteristics of equity
    • Outreach with users of financial statements to help the Board refine and further develop the disclosure proposals explored in the 2018 Discussion Paper
  • IBOR reform and its effects on financial reporting — Phase 2
    • Outreach with users of financial statements to help the Board obtain feedback on the disclosures proposed for this phase of the project
  • Management commentary
    • CMAC members input on what users need to understand for each distinct area of content in management commentary and how they use that information
    • CMAC members input on the proposed disclosure objectives for each area of content

Agenda papers for this meeting are available on the IASB's website.

Applicants invited for IFRS Interpretations Committee membership

09 Mar, 2020

The Trustees of the IFRS Foundation have invited applications for candidates to fill four vacancies on the IFRS Interpretations Committee.

Specif­i­cally, the Trustees are seeking in­di­vid­u­als who have a preparer focus. Members are expected to attend ap­prox­i­mately six two-day meetings each year held in London. Terms of mem­ber­ship will begin 1 July 2020 and will expire on 30 June 2023. Mem­ber­ship is unpaid, but the IFRS Foun­da­tion meets members' expenses of travel on IFRS IC business.

Ap­pli­ca­tions are accepted until 9 April 2020.

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

CARES Act would provide optional temporary relief from CECL accounting

30 Mar, 2020

On 27 March 2020, US President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides relief from certain accounting and financial reporting requirements under U.S. GAAP. However, until actions are taken by the SEC or the FASB, the provisions of the CARES Act are not amendments to US GAAP.

Section 4014 of the CARES Act offers optional temporary relief from applying the FASB’s current expected credit losses (CECL) standard (ASU 2016-13) for certain entities. Any guidance developed by the SEC or FASB to address the CARES Act’s impact on US GAAP would most likely take into account both the scope and length of any optional deferral, will likely take into account whether any deferral should apply to all entities that were otherwise required to adopt the CECL, and would more clearly define the date of adoption if an entity chose the deferral. For more information, see Deloitte's related Heads Up newsletter as well as the CARES Act, which is available on the US Senate's website.

Other than US Senate and Congress, the IASB has concluded that the existing requirements within IFRS 9 Financial Instruments (including the IASB's CECL model) need not be changed, removed nor added to. On Friday, the IASB only released a statement to support the consistent application of requirements in IFRS 9.

The IASB's position is supported by several other communications on the application of IFRS 9 during the COVID-19 crisis.

  • The Office of the Superintendent of Financial Institutions (OSFI) in Canada has released a statement that includes guidance on Applying IFRS 9 in extraordinary circumstances that will allow companies to remain compliant with IFRS as issued by the IASB;
  • the Prudential Regulation Authority (PRA) of the Bank of England has released a statement Covid-19: IFRS 9, capital requirements and loan covenants that offers an annex with guidance consistent with IFRS 9 to assist firms in making well-balanced and more consistent ECL estimates and in determining how to treat payment holidays and similar schemes for accounting and regulatory purposes;
  • the French Autorité des Marchés Financiers (AMF) has released guidance (in the French language only) noting that the general measures implemented allowing, among other things, payment suspensions or deferrals or the granting of additional appropriations do not mechanically constitute an indicator of a significant increase in the credit risk of the financial assets concerned;
  • the German Institut der Wirtschaftsprüfer (IDW) has released comprehensive guidance on IFRS 9 that is also available in an (abridged) English language translation; and
  • the Malaysian Accounting Standards Board (MASB) has countered calls for a temporary exemption from MFRS 9 (the Malaysian equivalent of IFRS 9) with a statement reassuring its constituents "that the principle-based nature of the Malaysian Financial Reporting Standards (MFRS) Framework requires and allows for judgement in addressing the accounting challenges arising from COVID-19".

All statements agree that IFRS 9 is principles-based and requires the use of experienced credit judgement and that the current situation does not lead to an undifferentiated, automatic transfer of financial instruments from Level 1 to Level 2 or even Level 3.

Earlier last week, ESMA hat already concluded that the principles-based nature of IFRS 9 includes sufficient flexibility to faithfully reflect the specific circumstances of the COVID-19 outbreak and the associated public policy measures.

Charities SORP Committee publishes guidance on Covid-19

30 Mar, 2020

The Charities Statement of Recommended Practice (SORP) Committee has published guidance on the implications of COVID-19 control measures and charity financial reporting.

The advice does not amend the SORP, is advisory in nature and aims to assist preparers, auditors and examiners of accounts. Preparers are under no obligation to apply the advice.

The key messages from the guidance are:

  • The measures being taken to contain COVID 19 will impact on charities in many different ways and it is important for charity trustees to understand the impact on the delivery of their activity and their governance including their finances.
  • Where a charity is preparing a set of accounts and these have not yet been approved, trustees should consider whether information needs to be included to explain the impact of the COVID 19 situation on their charity.
  • There could be changes to the financial statements needed as a result of the COVID 19 situation and it is important that trustees understand and consider these.
  • Charities should keep up to date with developing guidance from the relevant charity regulator in their jurisdiction.

Specifically the guidance covers:

  • The Trustees’ Annual Report and risk reporting.
  • Accounting related considerations:
    • ‘True and fair’
    • Post balance sheet events
    • Going concern considerations
    • Alternative basis of preparation where not a going concern
    • Defined benefit pension liabilities
    • Liabilities and provisions
  • Audit and external scrutiny.
  • Reporting to the charity regulator by charity trustees.
  • Filing and going concern, trustees’ filing responsibilities and late filing.

The guidance is available on the Charities SORP website.  The Institute of Chartered Accountants in England and Wales (ICAEW) has also published a guide on the implications of COVID-19 on charity acconting.  It is available from the ICAEW website.

Chartered Governance Institute and IIRC release guide to integrated reporting

16 Mar, 2020

The Chartered Governance Institute and International Integrated Reporting Council (IIRC) have published a guide to integrated reporting aimed at Chartered Secretaries and Chartered Governance Professionals.

The guide is designed to give Chartered Secretaries and Chartered Governance Professionals an overview of integrated reporting and integrated thinking, and the role they can play in embedding them into their organisation.

A press release and the full guide are available on the IIRC website.

Companies House issues advice on filing deadlines in light of Covid-19

24 Mar, 2020

In light of the impact of Coronavirus (Covid-19) on companies, Companies House has issued guidance on delaying filing deadlines.

Companies wishing to seek an extension should apply before the filing deadline – a delay of up to three months can be requested.

Details are available here including a link to apply online and details of how to apply by post.

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