June

EFRAG conducting survey on the IASB’s future agenda and EFRAG’s proactive research agenda

04 Jun, 2021

The European Financial Reporting Advisory Group (EFRAG) is inviting stakeholders to participate in a two-part survey on the following: (1) EFRAG’s consultation on the IASB’s Third Agenda Consultation and (2) EFRAG’s consultation on its Proactive research agenda.

The feedback from the survey will be used to assist the IASB and EFRAG on possible future projects. The survey is open until 17 September 2021. Please click for more in­for­ma­tion and access to the survey on the EFRAG website.

Trustees to offer webinar on their sustainability initiative

04 Jun, 2021

On 7 July 2021, the Trustees of the IFRS Foundation will host a webinar that will summarise the feedback gathered during the Trustees’ 2020 Consultation and explain how the Trustees have responded to that feedback. The speakers will also outline the Trustees’ strategic decisions and the remaining steps before the Trustees make a final determination on the new board by the United Nations COP26 conference in November 2021.

For the convenience of participants in different time zones there will be two sessions, one in the morning and one in the afternoon.

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

Report on the May 2021 IFRS Advisory Council meeting

04 Jun, 2021

A summary report has been released of the additional meeting of the IFRS Advisory Council held by remote participation on 11 May 2021.

Apart from the Chair's welcome and preview and an address by the IASB Chair Hans Hoogervorst, the only topic of discussion was the recently launched third agenda consultation.

General comments from Advisory Council members included:

  • The possibility to involve external partners in some areas (eg, digital financial reporting) to help alleviate some of the Board’s capacity constraints.
  • The Board’s agenda consultation focuses on the Board’s current scope of work. However, areas of digitalisation, stakeholder engagement, and understandability and accessibility are also relevant to the ISSB. Therefore, feedback on this agenda consultation may also provide valuable information for future work of the ISSB and its standard-setting processes.
  • The need to allocate some of the Board’s resources to coordinating the work of the Board and a new ISSB.
  • IFRS 17 Insurance contracts has started becoming quite topical.

In breakout sessions, the Advisory Council members discussed the strategic direction and balance of the Board’s activities for 2022 to 2026. They provided some comments on the Board’s six main activities:

  • New IFRS Standards and major amendments to IFRS Standards
  • Maintenance and consistent application of IFRS Standards
  • The IFRS for SMEs Standard
  • Digital financial reporting
  • Understandability and accessibility of the Standards
  • Stakeholder engagement

Regarding the criteria for assessing the priority of financial reporting issues that could be added to the Board’s work plan, Advisory Council members commented that the criteria could be split into essential criteria and non-essential criteria. The Board could also consider other criteria. They also noted that there is a lot of overlap and similarities between the first four criteria proposed by the Board. When there is a deficiency in current reporting, the Board should also consider the costs and benefits of leaving the gap unaddressed. The Board should consider the importance of the matter to a broad range of stakeholders, not only to investors. Advisory Council members also noted that it would be helpful if the Board clarified whether the criteria apply to new projects or the Board’s other activities as well, including the post-implementation reviews.

As regards financial reporting issues that could be added to the Board’s work plan, the Advisory Council members mentioned the following issues:

  • intangibles,
  • cryptocurrencies
  • climate-related risks
  • discount rates
  • discontinued operations and disposal groups
  • government grants
  • other comprehensive income
  • going concern

Some additional possible projects were also mentioned by individual Advisory Council members.

The full meeting summary is available on the IASB's website. There are also recordings of the individual sessions.

EFRAG draft comment letter on the exposure draft on lack of exchangeability

03 Jun, 2021

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB Exposure Draft ED/2021/4 ‘Lack of Exchangeability’ (proposed amendments to IAS 21).

In the draft comment letter, EFRAG supports the “set up principles-based guidance for determining a lack of exchangeability” and the “intention not to prescribe on a detailed method to determine an estimated exchange rate.” In addition, the EFRAG suggests improvements to the application guidance.

Comments on EFRAG's draft comment letter are requested by 26 August 2021. For more in­for­ma­tion, see the press release on the EFRAG website.

IASB Chair provides final observations

03 Jun, 2021

During the IFRS Foundation Virtual Conference 2021, IASB Chair Hans Hoogervorst provided his final observations of his 10-year tenure. Mr Hoogervorst discussed certain economic thinking, such as the influence of the ‘Washington Consensus’. Also, he touched upon the effect of the Great Financial Crisis of 2008 and the COVID pandemic had to the economy and the risks that recent policies may have to the monetary system.

Next, he commented on the progress done to IFRS Standards to reduce vulnerabilities. Specifically, he mentioned the improvements made by IFRS 9, IFRS 15, and IFRS 17 Standards, the updated conceptual framework, the primary financial statements project, and the new version of the management commentary practice statement.

Further, Mr Hoogervorst noted the progress in the use of IFRS Standards globally and that there are currently more than 140 jurisdictions that have adopted IFRS Standards.

In closing, Mr Hoogervorst thanked the Trustees, the IASB Board (past and present), IASB Vice-Chair Sue Lloyd, the technical and operational staff as well as the accounting community for all the contributions to the standard setting process.

In the video recording, upcoming IASB Chair Andreas Barckow provided a brief introduction and thanked Mr Hoogervorst for all his accomplishments during the past 10 years.

See the transcript and video of his speech on the IASB’s website.

IASB issues podcast on latest Board developments (May 2021)

03 Jun, 2021

The IASB has released a podcast featuring IASB Chair Hans Hoogervorst and IASB Vice-Chair Sue Lloyd discussing deliberations at the May 2021 IASB meeting.

The podcast discusses:

  • Primary financial state­ments.
  • Second comprehensive review of the IFRS for SMEs Standard.
  • Financial instruments with characteristics of equity.
  • Goodwill and Im­pair­ment.
  • Lease liability.
  • Dynamic risk management.
  • Transition to IFRS 17 Insurance Contracts.

The podcast (18 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 meeting.

Agenda for the June 2021 ASAF meeting

03 Jun, 2021

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 28-29 June 2021.

The agenda for the meeting is sum­marised below:

Monday, 28 June (11:00-15:00)

  • Business combinations under common control
    • ASAF members’ views on the Discussion Paper Business Combinations Under Common Control published in November 2020.
  • Third agenda con­sul­ta­tion
    • ASAF members’ views on the Request for Information published in March 2021.
  • Sustainability reporting
    • The staff will provide an update on the feedback statement on the IFRS Foundation Trustees’ Consultation Paper on Sustainability Reporting and will proposed targeted amendments to the IFRS Foundation Constitution.

Tuesday, 29 June (11:00-15:15)

  • Rate regulated activities
    • ASAF members' views on the Exposure Draft Regulatory Assets and Regulatory Liabilities published in January 2021.
  • Goodwill and impairment
    • ASAF members’ views on the Discussion Paper Business Combinations — Disclosures, Goodwill and Impairment.
  • Disclosure Initiative — Targeted Standards-level Review of Disclosures
    • The staff will provide an update on outreach activities, including fieldwork to test the proposals in the Exposure Draft Disclosure Requirements in IFRS Standards — A Pilot Approach published in March 2021.
  • Agenda planning

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

EFRAG issues annual review for 2020

03 Jun, 2021

The European Financial Reporting Advisory Group (EFRAG) has published its 2020 annual review.

The review highlights EFRAG’s work on sustainability reporting, on IFRS 17, primary financial statements and goodwill and impairment as well as the EFRAG research projects on crypto-assets and liabilities and intangibles.

The annual review is available on the EFRAG website.

EFRAG publishes May 2021 issue of ‘EFRAG Update’

03 Jun, 2021

The European Financial Reporting Advisory Group (EFRAG) has published an ‘EFRAG Update’ summarising public technical discussions held and decisions made during May 2021.

The update reports on the EFRAG Board webcast meeting on 5 May and the EFRAG Technical Expert Group (TEG) webcast meeting on 19-20 May.  The update also covers the activities of the European Reporting Lab as well as webinars and online outreaches.

The update also lists EFRAG publications issued in May including:

Please click to download the May EFRAG Update from the EFRAG website.

EFRAG report on application issues of IFRS 10, IFRS 11, IFRS 12

02 Jun, 2021

As part of its response to the IASB's request for information on the post-implementation review of IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', and IFRS 12 'Disclosure of Interests in Other Entities', the European Financial Reporting Advisory Group, (EFRAG) has prepared a report on the issues heard from European constituents on the implementation or application issues of IFRS 10, IFRS 11, IFRS 12, and related IFRS Standards.

The constituents identified 48 issues of different size and prevalence. Regarding 30 of the issues, the constituents believe a change in the current requirements would be helpful.

The report is attached to EFRAG's final comment letter. Appendix 1 contains a list of all identified issues, Appendix 2 a detailed description of the each of the issues. The report has been prepared for the consideration of the IASB in the further phases of their post-implementation review process.

Please click to access the report through the press release on the EFRAG website.

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