This technical release is an updated version of TECH 07/13BL and provides guidance on eligibility for and application of the provisions in s479A-479C of the Companies Act 2006. These provisions permit subsidiary companies and limited liability partnerships to take an exemption from audit if the parent undertaking guarantees all outstanding liabilities to which the subsidiary is subject at the end of the financial year to which the guarantee relates, until they are satisfied in full.

The revised technical release applies for periods beginning on or after 1 January 2021. It reflects changes to UK law made since the previous version; most notably it reflects changes arising as a result of the UK’s withdrawal from the EU. In particular, for periods commencing on or after IP completion day (defined as 31 December 2020 at 11.00pm UK time), the exemption is only available where the guarantee is given by a parent undertaking that is established under UK law. This represents a narrowing of the availability of the exemption; for periods beginning before IP completion day, the exemption is available where the guarantee is given by a parent undertaking established in the EEA.

The technical release is available on the ICAEW’s website.

The topics covered during the meeting were the following (numbers in brackets are references to the corresponding paragraphs of the summary):

• Goodwill and impairment (1–9): The ASAF discussed the initial feedback on the discussion paper from their stakeholders, and how that feedback compared to what the Board has heard so far. In addition, the ASAF members outlined their plans for outreach and fieldwork to stimulate feedback to the discussion paper.
• Business combinations under common control (10–15): The ASAF was given an update on the outreach plans for the forthcoming discussion paper. The ASAF members provided feedback on the proposed focus in the outreach, stakeholder events in their jurisdictions, and on how to facilitate effective stakeholder engagement.
• Conceptual Framework for Financial Reporting (16–19): The FASB provided an overview of its proposed Chapter 4 Elements of Financial Statements of FASB Concepts Statement No. 8 Conceptual Framework for Financial Reporting.
• Update and agenda planning (20–23): The ASAF members discussed the Board’s current work plan and planned topics for the December 2020 ASAF meeting.

A full summary of the meeting is available on the IASB's website.

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

• an update on the Lab's recent reports and published guidance, including Video in Corporate Reporting, a set of tips to help companies make S172 statements more useful and guidance on reporting in times of uncertainty
• other activities of the Lab including work on climate change, the Future of Corporate Reporting discussion paper and the FRC Annual Review of Corporate Reporting
• a summary of published guidance for companies and auditors regarding COVID-19.

The full newsletter is available on the FRC website here.

Below is an analysis of all changes made to the work plan since our last analysis on 28 September 2020.

Standard-setting projects

• Disclosure initiative — Subsidiaries that are SMEs — the decision of whether to issue a discussion paper or an exposure draft is now expected in December 2020 (previously fourth quarter of 2020)
• Management commentary — the issuance of an exposure draft is now expected in the first half of 2021 (previously first quarter of 2021)
• Primary financial statements — the review of the feedback to the exposure draft is now expected in December 2020 (previously fourth quarter of 2020)

Maintenance projects

• 2019 Comprehensive review of the IFRS for SMEs — the feedback on the request for information is now expected to be discussed in December 2020 (previously fourth quarter of 2020)
• Accounting Policies and Accounting Estimates (Amendments to IAS 8) — the issuance of final amendments is now expected in December 2020 (previously fourth quarter of 2020)
• Deferred tax related to assets and liabilities arising from a single transaction — the Board decided to finalise the amendments (no date given)
• Disclosure initiative — Accounting policies — the issuance of final amendments is now expected in December 2020 (previously fourth quarter of 2020)
• Disclosure initiative — Targeted standards-level review of disclosures — the issuance of an exposure draft is now expected in the first quarter of 2021 (previously first half of 2021)
• Lack of exchangeability — the issuance of an exposure draft is now expected in the first quarter of 2021 (previously no date given)

Research projects

• Dynamic risk management — the feedback on the core model is expected to be discussed in the first half of 2021 (outreach was undertaken through October 2020)
• Equity method — a project newly added to the work plan, a project direction is yet to be decided
• Financial instruments with characteristics of equity — a decision on the project direction is now expected in December 2020 (previously fourth quarter of 2020)
• Goodwill and impairment — the feedback on the discussion paper is now expected to be discussed in the first quarter of 2021 (previously first half of 2021)
• Pension benefits that depend on asset returns — a review of the research is now expected in December 2020 (previously November 2020)
• Post-implementation review of IFRS 10, IFRS 11 and IFRS 12 — the issuance of a request for information is now expected in December 2020 (previously fourth quarter of 2020)

Other projects

• 2020 Agenda Consultation — the issuance of a request for information is now expected in the first quarter of 2021 (previously first half of 2021)
• IFRS Taxonomy Update — 2020 General Improvements and Common Practice — a proposed IFRS Taxonomy Update was published on 29 October 2020 and the feedback is expected to be discussed in the first quarter of 2021
• IFRS Taxonomy Update — Amendments to IAS 1, IAS 8 and IFRS Practice Statement 2 — this project has been added to the work plan and a proposed IFRS Taxonomy Update is expected in December 2020
• IFRS Taxonomy Update — Amendments to IFRS 17, IFRS 4 and IAS 16 — the feedback on the proposed IFRS Taxonomy Update has been discussed and a final IFRS Taxonomy Update is expected in the first quarter of 2021
• IFRS Taxonomy Update — Interest Rate Benchmark Reform — Phase 2 — the feedback on the proposed IFRS Taxonomy Update was expected to be discussed in October 2020, however, the date entry has been removed
• Sustainability reporting — newly added to the work plan; the feedback on the Trustees' consultation paper is expected to be discussed in December 2020 (although the consultation period does not end until 31 December 2020)

The above is a faithful comparison of the IASB work plan at 28 September 2020 and 31 October 2020. For access to the current IASB work plan at any time, please click here.

Meeting activities included the following:

• Executive session:
  • Report of the Executive Director — The Trustees received a report from the Executive Director Lee White on activities since the last meeting.
  • Update on sustainability reporting — The Trustees discussed the initial reactions to the consultation paper on sustainability reporting that they published in September.
  • Committee reports — The Trustees discussed reports from the Business Process and Technology Committee, the Audit, Finance and Risk Committee, the Human Capital Committee, the Nominating Committee, and the DPOC. (A report of the DPOC meeting is attached to the meeting summary.)
• IASB Chairman’s report — The Chair of the IASB noted the successful completion of time-sensitive amendments to IFRS 17 Insurance Contracts and to the financial instruments standards to address the effects of the ongoing IBOR reform, and updated the Trustees on the continuing discussion in the EU about endorsement of IFRS 17.

For more information, see the full summary on the IFRS Foundation Trustees’ and DPOC meeting on the IASB’s website.

The virtual events will allow participants to learn and interact with experts and previous winners from around the world, who will be sharing their experience and insights. The virtual events will also be an opportunity for participants to understand how finance can play a crucial role in shaping a sustainable and resilient recovery.

The three events are:

• Driving change in the finance community - how education can reshape the future of finance – 13:00-14:30 GMT, 7 December 2020.
• Authentic integrated thinking - connecting purpose, people, planet and profit within everyday decision making – 13:00-14:30 GMT, 8 December 2020.
• Moving financial markets - how can we accelerate financial markets to drive a green and fair recovery? – 12:30-13:30 GMT, 9 December 2020.

The Finance for the Future Awards programme will be back in 2021 and aligned with the rescheduled COP26.

Further information and details of how to register is available on the ICAEW website.

The error identified first occurred in Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) published in September 2019 and was later reproduced in the Red Book and the annotated Red Book 2020 as well as the Blue Book and the annotated Blue Book 2020.

Editorial corrections do not change the meaning or application of pronouncements, but instead correct inadvertent errors. The editorial corrections can be viewed on the editorial corrections page of the IASB's website.

The endorsement advice relates to the following narrow scope amendments to (the amendments):

• IAS 37 Provisions, Contingent Liabilities and Contingent Assets, Onerous Contracts — Cost of Fulfilling a Contract;
• IFRS 3 Business Combinations, Reference to the Conceptual Framework;
• IAS 16 Property, Plant and Equipment, Proceeds before Intended Use; and
• Annual Improvements to IFRS Standards 2018–2020, which amends IAS 41, IFRS 16, IFRS 1 and IFRS 9.

EFRAG recommends the endorsement of the Amendments. EFRAG’s assessment is that the Amendments meet all the technical endorsement criteria of the IAS Regulation and are conducive to the European public good.

A press release and the endorsement advice letters to the European Commission are available on the EFRAG website. EFRAG has also updated its endorsement status report.

The consultation is intended to assess demand for global sustainability standards and what role the Foundation might play in the development of such standards.

For the convenience of participants from different time zones, there will be two sessions of the webinar both discussing the same topics:

• Tuesday 17 November 2020, 10:00–11:00 GMT and
• Tuesday 17 November 2020, 15:00–16:00 GMT.

Each session will last a maximum of 60 minutes and include a moderated question-and-answer session. Questions can be submitted in advance.

Please click for more information, registration, and submitting questions in the press release on the IASB website.

The proposed update includes elements to reflect common reporting practice and new and amended labels to clarify the accounting meaning and intended use of some existing elements.

For more information, see the press release and proposed update on the IASB’s website. Comments are requested by 5 January 2021.