The IFRS Foun­da­tion is seeking two Trustees: one from the Americas and one from the Asia-Oceania. Trustees’ re­spon­si­bil­i­ties include oversight of the organisation in the public interest, its strategic direction, ap­point­ments to the Board, the IFRS In­ter­pre­ta­tions Committee and the IFRS Advisory Council, and ensuring the financing of the organisation and approving its budget. The role de­scrip­tion notes:

Please click to access the press release on the IASB website.

The podcast discusses:

• Extensions to comment periods for three of the Board’s current consultations.
• Goodwill and Impairment project.
• Primary Financial Statements project.
• Request for Information Comprehensive Review of the IFRS for SMEs Standard.
• Equity Method research project.

The podcast (14 minutes) can be accessed through the press release on the IASB website.

Please click to view the detailed notes taken by Deloitte observers for the IASB regular meeting and supplementary meeting.

We do not support the proposals in the ED for reason cited by Ms Flores in her alternative view. We are concerned that the method proposed results in recognition of a lease liability for the expected variable payments not based on an index or rate, which is inconsistent with the general requirements in IFRS 16 and that the ED will be difficult to implement. In addition, we propose that a practical alternative would be to require that the “deferred gain” that results from the mechanical application of the existing requirements in IFRS 16:100 be recognised in profit or loss over the lease term on a straight-line basis (or another systematic basis) and presented as a reduction of the lease expense and suggest that no amendment be made at this time to specify the method that should be used by a seller-lessee to measure the proportion of the previous carrying amount of the lease asset that relates to the right of use retained.

Please click to download our full comment letter.

The letter notes the developments of the last few months beginning with the WEF publication Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation, then citing the IFRS Foundation consultation on setting up a global sustainability standards board and the statement of intent of CDP, CDSB, GRI, IIRC, and SASB to work together towards a comprehensive corporate reporting system.

The letter states that the same global standardisation and coordination as is already in place for financial reporting is needed for ESG reporting as well so that that companies of any industry or country are comparable and can be held accountable to investors. The letter outlines three steps for achieving this:

1. An independent global standard setting body should develop ESG standards that can be adopted worldwide. The letter notes that the IFRS Foundation is well positioned to do this and that the WEF supports the proposal to establish a Sustainability Standards Board (SSB) that would sit alongside the International Accounting Standards Board (IASB).
2. For the standards to be enforced in individual capital markets, regulatory authorities must endorse their use. The letter cites the support of the International Organization of Securities Commissions (IOSCO) for the IFRS Foundation initiative and the suggested "building blocks" approach and welcomes the statements.
3. For the IFRS Foundation standard setting process to best succeed, it should build on the main reporting initiatives already in use. The letter points at the work of CDP, CDSB, GRI, IIRC, and SASB and notes that the WEF's work has included helping to facilitate the collaboration among the five organisations and that the WEF looks forward to working even more closely with them in support of creating sustainability reporting standards through the SSB.

The WEF, which is also a member of the recently announced IFRS Foundation sustainability working group, concludes its letter by stating:

These, then, are the steps we need to complete to get to system change on ESG metrics. We support this process and the organizations that are working to achieve it. Concretely, we look forward to supporting the IFRS’s Sustainability Standards Board, as appropriate, during its establishment and as it delivers on its mandate. We will promote opportunities for high-level public-private dialogue to strengthen strategic alignment on these objectives and will mobilize corporate support at the chief executive level in the global business community. We also encourage capital market regulatory bodies to work with the IFRS Foundation and IOSCO to support the Sustainability Standards Board.

Please click to access the full letter on the WEF website.

The aim of the publication is to highlight what it sees as best practice for account preparers to access when planning their annual reporting. As part of the Government Financial Reporting Review in 2019, HM Treasury committed to continue to support ongoing improvements in financial reporting and committed to producing an annual best practice report. This latest report follows the publication of best practice examples taken from the 2017-2018 central government ARAs, published at the time of the Government Financial Reporting Review, and those contained within 2018-2019 ARAs published as part of a review in 2020.

The report is divided into three sections that broadly follow the structure of a departmental ARA required by the Financial Reporting Manual (FReM):

• Performance reporting;
• Accountability; and
• Financial statements.

Further information and links to the examples are available on the HM Treasury website.

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

Below is an analysis of all changes made to the work plan since our last analysis on 19 February 2021.

Stan­dard-set­ting projects

• Disclosure Initiative — Subsidiaries that are SMEs — The issuance of an exposure draft is now expected in Q3 2021 (previously H2 2021).
• Disclosure Initiative — Targeted Standards-level Review of Disclosures — This project is now in the exposure draft feedback stage and discussions on the feedback is expected in H1 2022. The exposure draft was issued on 25 March 2021.
• Rate-regulated activities — The comment letter deadline has been extended to 30 July 2021.

Main­te­nance projects

• Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) — The issuance of IFRS amendments is now expected in May 2021 (previously Q2 2021).
• IFRS 16 and COVID-19— This project expects to issue IFRS amendments in March 2021.
• Lease Liability in a Sale and Leaseback — Feedback to the exposure draft will now be discussed in May 2021 (previously Q2 2021).

Research projects

• Extractive Activities — The decision of the project’s direction is now expected in May 2021 (previously Q2 2021).
• Goodwill and Impairment — The discussion of the feedback on the discussion paper will continue in April 2021 (began in March 2021).
• Second Comprehensive Review of the IFRS for SMEs Standard — The next project step will be the issuance of an exposure draft (no date given).

Other projects

• IFRS Taxonomy Update — 2020 General Im­prove­ments and Common Practice — This project is removed from the work plan due to the issuance of the IFRS taxonomy update on 24 March 2021.
• IFRS Taxonomy Update — Amend­ments to IFRS 17, IFRS 4 and IAS 16 — This project is removed from the work plan due to the issuance of the IFRS taxonomy update on 24 March 2021.
• IFRS Taxonomy Update — Common Practice (IAS 19 Employee Benefits) — This project is removed from the work plan due to the issuance of the IFRS taxonomy update on 24 March 2021.

The above is a faithful com­par­i­son of the IASB work plan at 19 February 2021 and 26 March 2021. For access to the current IASB work plan at any time, please click here.

Against the backdrop of the final reports on possible EU non-financial reporting standards, participants discussed their expectations for future cooperation and the need and importance for EU sustainability reporting standards to build on as well as contribute to international standard-setting initiatives.

Please click to access the corresponding press release on the EFRAG website.

Practice Note 14 (PN 14) The Audit of Housing Associations in the United Kingdom provides sector specific guidance on applying the FRC’s auditing standards to an audit of Housing Associations.

The key revisions include:

• Updating of the material relating to devolved regulatory regimes and the inclusion of links to key locations on regulator’s websites where auditors can seek additional guidance.
• Updating of the key business risks affecting housing associations, including the inclusion of new risks and the re-ordering of existing risks.
• Updating of ISA (UK) specific guidance to ensure it remains fit for purpose and provides helpful guidance to auditors of housing associations. This includes providing new guidance in relation to requirements found in ISA (UK) 570 and ISA (UK) 720.

A press release and the revised Practice Note are available on the FRC website.

This increased transparency is aligned with a recommendation of Sir John Kingman’s Independent Review of the FRC that reviews should be made publicly available. Due to company law requirements, summaries can only be published with the consent of individual companies.

As part of the recently launched consultation Restoring trust in audit and corporate governance the Government is consulting on proposals to allow the FRC to publish summaries without the consent of companies, once sufficient safeguards around confidential information are in place.

Previously the FRC has published the names of companies reviewed, whether a full review was conducted and whether substantive correspondence had been entered into, without providing further details of review findings.

Further details are provided on the FRC website.