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2020

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.

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.

Recent sustainability and integrated reporting developments

17 Mar 2020

A summary of recent developments at CDSB, CDSB/CDP, SASB, IRC, ICAI, Deloitte, and IAASB.

The Climate Disclosure Standards Board (CDSB) is following the review of the EU Non-Financial Reporting Directive closely and proposes eight changes to ensure that the Directive is fit for purpose to achieve Europe’s ambitious sustainable finance goals. Please click for further information on the CDSB website.

The CDSB and the Carbon Disclosure Project (CDP) have jointly released an environmental reporting handbook to help companies improve their disclosure in line with the EU Non-Financial Reporting Directive. The EU Environmental Reporting Handbook helps companies learn from their peers to better understand how to report in line with the Directive. Please click for further information on the CDSB website

The Sustainability Accounting Standards Board (SASB) has launched the SASB Implementation Primer, an online resource for companies seeking to incorporate SASB standards into their core communications with investors. Please click to access the press release and the implementation primer on the SASB website.

The Integrated Reporting Committee (IRC) of South Africa has updated its starter’s guide initially published in 2014, to provide organisations with practical suggestions on preparing an integrated report. The guide is aligned with the King IV Report on Corporate Governance for South Africa and presents updated examples five years after publication of the International <IR> Framework. Please click to access Preparing an Integrated Report – A Starter’s Guide (Updated) on the IRC website.

The Institute of Chartered Accountants of India (ICAI) has set up a Sustainability Accounting Standards Board to help companies in achieving sustainable development goals. The Board will set standards that will establish disclosure requirements in line with the sustainable development goals of the United Nations. The initial composition of the Board is available here.

Deloitte Norway studied the annual and sustainability reports of the 50 largest companies headquartered in the country, analysing their maturity in terms of integrated reporting and sustainability reporting. Greenwashing or measurable results? can be accessed here.

Deloitte UK has commented on Advancing Nature-related Financial Disclosures and use of the CDSB Framework published by the CDSB. Deloitte encourages the CDSB to work with others to push with urgency for consolidation and harmonisation of standards and frameworks, in order to have one definitive global standard on climate reporting. Please click to access the comment letter here.

The International Auditing and Assurance Standards Board (IAASB) is consulting on proposed guidance Extended External Reporting Assurance. The purpose of the guidance is to promote consistent high-quality application of ISAE 3000 so as to strengthen the influence of EER assurance engagements on the quality of EER reports, enhance user trust in the resulting assurance reports, and engender greater confidence in the credibility of, trust in and reliance upon EER reports by their intended users. Please click for more information on the IAASB website.

Consultation launched to assist trustees on aligning their pension scheme to the TCFD recommendations

17 Mar 2020

A new consultation has been launched which sets out non-statutory guidance for the trustees of occupational pension schemes on assessing, managing and reporting climate-related risks in line with the Taskforce on Climate-Related Financial Disclosures (TCFD).

The draft guidance has been drawn up by the Pensions Climate Risk Industry Group (PCRIG), a group set up last summer by the Department of Work and Pensions, TPR and other pension representatives.

The draft guidance is split into three parts:

  • Part 1 - introduces climate risk as a financial risk to pension schemes, trustees’ legal requirements and the TCFD recommendations.
  • Part 2 - sets out a suggested approach for the integration and disclosure of climate risk within the typical governance and decision-making processes of pension trustee boards, including defining investment beliefs, setting investment strategy, manager selection, and monitoring.
  • Part 3 - contains technical details on recommended scenario analysis and metrics that trustees may wish to consider using to record and report their findings.

The consultation closes at 11.45pm on 7 May 2020. PCRIG intends to publish the final guidance in the autumn.

A press relese and the guidance are available here.ss release and the updated guidance is available on the FRC website. 

IASB reduces the March 2020 meeting agenda

13 Mar 2020

Due to concerns with the coronavirus, the IASB has reduced the agenda for the March 2020 meeting and has made it remote access only. The reduced agenda will only include discussions on amendments to IFRS 17, rate-regulated activities, and management commentary.

Our pre-meeting summaries are available on our March meeting notes page and will be supplemented with our popular meeting notes after the meeting.

European Lab seeks members for its second task force

13 Mar 2020

The European Financial Reporting Advisory Group (EFRAG) has published a call for candidates for members of a new project task force on reporting of non-financial risks and opportunities and linkage to the business model.

The aim of the new project of the European Corporate Reporting Lab is to identify good practices on the reporting of non-financial risks and opportunities and their linkage to the business model from a sustainability perspective and addressing what is commonly known as ESG factors. The project is expected to consider the information needs and expectations of a wide range of users and other stakeholders, the extent to which they are addressed by current reporting practices, and the challenges faced by companies in providing that information.

The deadline for applications is 10 April 2020.

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

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.

IFRS Foundation Coronavirus update

12 Mar 2020

The IFRS Foundation has provided updated operational information related to the Coronavirus. The inforation regards the March CMAC meeting, the March IASB meeting, and general information about visits to the IFRS Foundation offices.

The March CMAC meeting (26 March 2020) will be remote access only for observers. CMAC members will only attend if they are based in London and meet the criteria for visits to the IFRS Foundation offices.

The March IASB meeting (17 and 19 March 2020) is currently expected to proceed as planned, however, observers are reminded that digital access is available. Should the IFRS Foundation offices need to be closed, the meeting will be held by video conference and will feature a reduced agenda.

All visitors to the IFRS Foundation offices will need to confirm before arrival that they haven't been to a category 1 or 2 hotspot in the past 14 days and have not experienced any flu-like symptoms in the past seven days.

Please click for the full update on the IASB website.

Pre-meeting summaries for the March 2020 IASB meeting

11 Mar 2020

The IASB will meet in London on 17 and 19 March 2020. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. For each topic to be discussed, we summarise the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

Maintenance and Consistent Application: In 2017, the IFRS Interpretations Committee received a question about a particular commodity loan transaction and observed that the transaction may not be captured within the scope of any IFRS Standard. The staff recommend that the Board consider referring to commodity transactions as a potential project in its Request for Information (RFI) on the 2020 Agenda Consultation.

Agenda Consultation: The staff set out the plan for the 2020. They expect to publish the RFI in September, with a comment deadline of January 2021. After the Board has considered the feedback the work plan and feedback statement are expected to be published in Q4 2021.

Disclosure Initiative—Subsidiaries that are SMEs: In the January 2020 meeting, the Board agreed to move the project from the research programme to the standard-setting programme. The objective is to develop a reduced disclosure IFRS Standard that would apply on a voluntary basis to subsidiaries that are SMEs, adapted from the disclosure requirements of the IFRS for SMEs Standard. The staff expect to start drafting an ED or a DP in Q4 2020.

Rate-regulated Activities: The staff have been drafting the ED for the accounting model for regulatory assets and regulatory liabilities since last July. The staff are asking the Board to clarify whether some components included in the regulated rates in a period form part of total allowed compensation for the goods or services supplied by an entity in the same period or in a different period. In particular, the staff are seeking clarification about whether regulatory returns and performance incentives included in the regulated rates for a period form part of the total allowed compensation for to the goods or services supplied in the same period.

Management Commentary: The Board will continue its discussions about the objective of management commentary, which the staff recommend should be to support primary users in assessing an entity’s prospects of future cash flows and assessing management’s stewardship of the entity’s economic resources. The primary users are existing and potential investors, lenders and other creditors and they are expected to have a reasonable knowledge of business and economic activities. The staff will also introduce their thinking on developing disclosure objectives for various types of content to be included in management commentary.

Disclosure Initiative—Targeted Standards-level Review of Disclosures: The staff will ask permission to begin the balloting process on Exposure Draft (ED) Targeted Standards-level Review of Disclosures—Amendments to IAS 19 and IFRS 13. The staff recommend a comment period of 180 days.

Financial Instruments with Characteristics of Equity: At the December 2019 Board meeting, the Board discussed the staff’s preliminary analysis on how the fixed-for-fixed requirement in IAS 32 could be clarified. At this meeting the staff recommend that the Board articulate its foundation principle by stating that in a derivative on own equity that meets the fixed-for-fixed condition, the amount of functional currency units to be exchanged with each underlying equity instrument is fixed and does not vary other than (if applicable) with preservation adjustments and passage of time adjustments. The staff also set out recommendations for how the preservation and passage of time adjustments should be expressed. The staff will also present their plan for outreach with stakeholders on potential disclosures that can be developed as part of the FICE project.

Post-implementation review of IFRS 10, 11 and 12: The staff recommend that the Board proceed with the PIR and publish an RFI to gather more information about the application of these Standards.

Amendments to IFRS 17 Insurance Contracts: The staff recommend that the Board defer the effective date of IFRS 17 (incorporating the amendments) to annual reporting periods beginning on or after 1 January 2023 and extend the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 to the same date. The staff expect that the amendments will be issued in the second quarter of 2020.

More information

Our pre-meeting summaries are available on our March meeting notes page and will be supplemented with our popular meeting notes after the meeting.

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.

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