IFRS Foundation seeks Trustee applications

31 May, 2022

The IFRS Foundation is seeking Trustees from Asia-Oceania, the Americas and Europe for terms beginning on 1 January 2023.

Trustees’ responsibilities include oversight of the organisation in the public interest, its strategic direction, appointments to the IASB, the ISSB, the IFRS Interpretations Committee and the IFRS Advisory Council, and ensuring the financing of the organisation and approving its budget. Trustees are expected to engage with the markets in their regional jurisdiction. Given the recent creation of the ISSB, the Trustees would particularly welcome applications from candidates with a knowledge and interest in sustainability-disclosure reporting and wider corporate reporting.

Please click for additional information in the press release on the IFRS Foundation website.

Updated IASB and ISSB work plan — Analysis (May 2022)

30 May, 2022

Following the IASB's May 2022 meeting, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meeting and other developments since the work plan was last revised in April 2022. Changes are few.

Below is an analysis of all changes made to the work plan since our last analysis on 29 April 2022.

Standard-setting projects

  • Contractual cash flow characteristics of financial assets — A project newly added to the work plan; the next project milestone will be an exposure draft (no date given)
  • Dynamic risk management — This project has been moved from the research agenda to the standard-setting agenda

Maintenance projects

  • Lack of exchangeability — A decision on the project direction is now expected in July 2022 (previously Q3 2022)

Research projects

  • Extractive activities — A decision on the project direction is now expected in July 2022 (previously Q3 2022)

Other projects

  • IFRS Sustainability Disclosure Taxonomy — A project newly added to the work plan; feedback on the staff request for feedback will be discussed in H2 2022
  • Research programme — This entry provided a history of research projects; it has been removed from the work plan
  • Third agenda consultation — A feedback statement is now expected in July 2022 (previously Q3 2022)

The above is a faithful comparison of the IASB and ISSB work plan at 29 April 2022 and 30 May 2022. For access to the current work plan at any time, please click here.

IFRS Foundation Trustees seek SSAF members

30 May, 2022

The IFRS Foundation is calling for applications from relevant jurisdictional and regional bodies to become members of the Sustainability Standards Advisory Forum (SSAF).

The SSAF will be established in 2022 to formalise and streamline the relationships between the IFRS Foundation and ISSB with the relevant jurisdictional and regional bodies, in order to bring important regional perspectives to the ISSB's technical work and to offer feedback on the most important issues of the day.

The SSAF is comprised of 12-16 members and a non-voting chair (being the IASB chair or vice-chair).  The 12-16 members are sourced from the following geographical regions:

  • Africa: 1 member
  • Americas (North and South): 3 members
  • Asia/Oceania: 3 members
  • Europe (including non-EU): 3 members
  • World at large*: minimum 2, up to 6 members

* subject to maintaining overall geographical balance.

Membership of the SSAF is open to all relevant jurisdictional and regional bodies with existing expertise in sustainability-related reporting relevant to the development of IFRS Sustainability Disclosure Standards that are interoperable with jurisdictional sustainability-related reporting requirements.

The closing date for applications is 11 July 2022.

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

FRC publishes its 2020/2021 audit quality inspection findings

30 May, 2022

The Financial Reporting Council (FRC) has published key findings and good practices identified by its Audit Quality Review (AQR) team during the 2020/21 audit quality inspections of the seven largest audit firms.

The findings are contained within two reports; one containing key findings and another on good practices. 

The purpose of these documents is to share with auditors, audit committees, investors and other users of audited financial statements the nature of the key findings and good practices reported on the individual audits inspected.

The press release and links to individual reports are available on the FRC website.

UKEB comment letter regarding a tentative agenda decision on IFRS 17

30 May, 2022

The UK Endorsement Board (UKEB) has published its comment letter on the IFRS Interpretations Committee tentative agenda decision on IFRS 17 and the transfer of insurance coverage under a group of annuity contracts.

The UKEB highlights the importance of this issue to the insurance industry and indicates that finalising an agenda decision that clarifies the application of IFRS 17 Insurance Contracts would enable insurers and auditors to move towards the initial application of IFRS 17 with greater certainty over this issue and would also remove potential diversity in practice.  In that respect the UKEB encourages the IFRS Interpretations Committee to finalise the decision as soon as possible.

The UKEB acknowledges the concerns expressed by various stakeholders regarding the tentative agenda decision and indicates that they should be considered by the International Accounting Standard Board (IASB) on a holistic basis once experience has been gained of applying the standard in practice.  These areas include:

  • Uncertainty over the concept of insurance service and what that might comprise, how its transfer to policyholders might be measured and whether that should necessarily be linked to, or limited by policyholders’ ability to make valid claims in the period.
  • Interaction of the CSM with the risk adjustment for non-financial risk.
  • Whether the criteria for recognition of an investment-return service operate as intended, and whether further guidance on splitting the CSM between different insurance contract services would be useful.

The UKEB believes that there is a risk of further diversity in practice if these matters are not addressed and that they should be addressed as part of the IFRS 17 post-implementation review

The final comment letter is available on the UKEB website.

UKEB publishes its draft comment letter on ISSB Exposure Drafts IFRS S1 and IFRS S2

30 May, 2022

The UK Endorsement Board (UKEB) has published its draft comment letter relating to the International Sustainability Standards Board (ISSB) Exposure Drafts (EDs): S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and S2 Climate Related Disclosures (IFRS S2).

In March 2022, the ISSB issued two EDs, IFRS S1 (ED/2022/S1) and IFRS S2 (ED/2022/S2).  The UKEB welcomes the exposure drafts and supports the need for a general requirements framework for sustainability-related information.  It also 'strongly supports' the alignment of IFRS S2 exposure draft with the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations.

It acknowledges many areas of alignment with the International Accounting Standard Board’s (IASB's) Conceptual Framework for Financial Reporting, IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and believes this will improve connectivity with the financial reports and help stakeholders to better understand the information presented.

The letter also makes several recommendations in relation to the proposed approach.

Comments on the draft comment letter are requested by 27 June 2022.

The draft comment letter and the invitation to comment are available on the UKEB website.

IFRS Foundation announces new IASB Board members

26 May, 2022

The Trustees of the IFRS Foundation have announced the appointment of Linda Mezon-Hutter and Robert Uhl as IASB Board members. Their appointments are for a five-year term starting in September 2022. In addition, three Board members have been reappointed for a second three-year term.

Ms Mezon-Hutter has served as a member, Vice-Chair and ultimately Chair of the Canadian Accounting Standards Board (AcSB). She has also served on the IASB’s Accounting Standards Advisory Forum. Before joining the AcSB, Mezon-Hutter served as the Chief Accountant at Royal Bank of Canada.

Mr Uhl has served as a Partner and National Director for Accounting Standards at Deloitte in the United States. He was also a member of the IFRS Interpretations Committee and the US Financial Accounting Standards Board’s (FASB) Emerging Issues Task Force. In addition, he has served as a Professional Accounting Fellow at the Office of the Chief Accountant at the US Securities and Exchange Commission.

Nick Anderson, Jianqiao Lu and Ann Tarca have been reappointed to serve a second, three-year term. Mr Anderson's and Mr Lu’s second terms start 1 September 2022, whereas Ms Tarca’s second term starts on 1 July 2022.

The press release on the IFRS Foundation's website also notes that Mary Tokar’s second term has been extended from 30 June to 31 August 2022. 

Report on the April 2022 IFRS Advisory Council meeting

26 May, 2022

A summary report has been released of the meeting of the IFRS Advisory Council held in a hybrid format (virtual participation and participation at the IFRS Foundation Office in London) on 5-6 April 2022.

The participants discussed:

  • Update on Trustees' activities and IASB activities — Main discussion points were
    • the multi-location model of the ISSB,
    • the ISSB’s due process approach,
    • asserting compliance with IFRS accounting standards and IFRS sustainability-related disclosure standards,
    • engagement being undertaken with governments, regulators, and jurisdictions on the EDs, and to achieve a global baseline,
    • connectivity between the IASB and the ISSB and the potential for IASB-ISSB joint stakeholder engagement,and
    • the IASB’s future work plan, new projects to be added to the work plan, and selected projects currently on the IASB's work plan.
  • Update on the ISSB’s exposure drafts — Participants received an in-depth introduction to the two EDs and had the opportunity to ask questions.
  • Feedback from previous Advisory Council meetings — Participants were updated on how strategic advice provided by members at previous meetings has been considered and applied to the work of the IASB, the ISSB and the IFRS Foundation.
  • Introduction of the Chair of the ISSB and an update on the ISSB’s activities — Participants had the opportunity to ask questions regarding ISSB Board membership, challenges expected regarding ISSB standard-setting, ISSB standards and compliance with the SEC disclosure requirements, the culture of merged organisations, relations between standard setters, and emerging markets.
  • Organisational culture — Participants discussed:
    • Advice on bringing organisational cultures together when working in a global multilocation setting with multiple organisational consolidations occurring, and in a context of hybrid working during a continuing pandemic.
    • How can the IFRS Foundation best build on strengths in the values and cultures of the legacy organisations and achieve a unified culture?

The full meeting summary (16 pages) is available on the IFRS Foundation website.

FRC Stakeholder Survey — ISSB Exposure Drafts

26 May, 2022

The Financial Reporting Council (FRC) invites stakeholders to share their views on the Exposure Drafts recently published by the newly formed International Sustainability Standards Board (ISSB).

To gather UK stakeholders’ views on the ISSB’s Exposure Drafts, the FRC has developed a survey.  The data collected by the FRC will inform its response to the ISSB Exposure Drafts.  The deadline to provide comments is 29 May 2022. 

The survey is available on the FRC website.

Staff seeks feedback on future on a future IFRS sustainability disclosure taxonomy for digital reporting

25 May, 2022

The staff of the International Sustainability Standards Board (ISSB) is looking for feedback that would inform the development of a taxonomy to enable digital consumption of sustainability disclosures prepared using the ISSB's IFRS Sustainability Disclosure Standards.

The IFRS Sustainability Disclosure Taxonomy would be the counterpart to the IFRS Accounting Taxonomy developed to enable digital consumption of information provided by companies applying IFRS Accounting Standards issued by the International Accounting Standards Board (IASB).

Responses to the staff request for feedback are due by 30 September 2022 and can be provided by filling in an online form or by sending a comment letter. Please click for more information on the IFRS Foundation website.

Correction list for hyphenation

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