Updated IPSAS-IFRS alignment dashboard

21 Nov, 2022

The International Public Sector Accounting Standards Board (IPSASB), which develops the International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, has released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRSs.

Please click to access the updated alignment dashboard prepared for the December 2022 IPSASB meeting on the IPSASB website.

FRC issues revised Application Guidance to FRS 100

21 Nov, 2022

The Financial Reporting Council (FRC) has issued 'Amendments to FRS 100 Application of Financial Reporting Requirements – The Interpretation of Equivalence' ("the Amendments").

The Amendments have been made following a consultation in May 2022 and revise the Application Guidance to FRS 100 to reflect changes to UK company law and decisions on equivalence following the UK’s exit from the European Union.  The revised guidance is effective immediately.

The FRC has also issued a revised version of FRS 100, which incorporates the revised Application Guidance and other amendments made since the previous edition was issued in 2018, as well as changes in Irish company law.

press release, the Amendments to FRS 100 and the revised edition of FRS 100 are available on the FRC website.

Pre-meeting summaries for the November 2022 IASB meeting

18 Nov, 2022

The IASB meets in London on 22–24 November 2022. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. We summarised 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.

The following topics are on the agenda:

Post-implementation Review (PIR) of IFRS 9—Classification and Measurement

The IASB will discuss financial liabilities and own credit. The IASB will be asked if it is satisfied that the project can be concluded. The next step will be the publication of a Report and Feedback Statement.

Dynamic Risk Management             

The IASB will discuss managing equity and notional alignment of designated assets and liabilities. The staff recommend that equity not be an eligible item in the DRM model. The staff also recommend that the IASB amends its original tentative decision to not require the notionals of eligible assets, liabilities and future transaction for designation in the current net open risk position to be the same.

Rate-regulated Activities

At this meeting, the IASB will continue redeliberating the proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities. The staff recommend that when there is a direct relationship between an entity’s regulatory capital base and its property, plant and equipment and the regulatory agreement provides the entity with (a) both a debt and equity return on an asset not yet available for use, the entity must reflect in the statement of financial performance during the construction period only those returns in excess of the entity’s capitalised borrowing costs; or (b) only a debt return on an asset not yet available for use, the entity must not reflect the return in the statement of financial performance during the construction period if the entity capitalises its borrowing costs.

Maintenance and consistent application

International Tax Reform (Pillar Two Model Rules)—the staff recommend that the IASB amend IAS 12 to introduce a temporary exception from accounting for deferred taxes arising from legislation enacted to implement the OECD’s Pillar Two model rules (including any qualified domestic minimum top-up tax). The exception would apply until such time that the IASB decides to either remove it or make it permanent. Supplier Finance Arrangements—the staff recommend that the IASB proceed with its proposals in the ED with some changes.

Amendments to the Classification and Measurement of Financial Instruments

The IASB will discuss a sweep issue related to contractually linked instruments and the derecognition requirements in IFRS 9 for the settlement of a financial asset or a financial liability via electronic cash transfers. The staff recommend clarifying that when determining whether a transaction is in the scope of the CLI requirements, an entity excludes any instruments held by the sponsor that has transferred the underlying assets to the issuer. For electronic transfers, the staff are recommending clarifying that an entity applies settlement date accounting when recognising and derecognising financial assets (except for regular way transactions) and financial liabilities. In relation to the accounting alternative for derecognising a financial liability before settlement date, the staff recommend refining the criteria to require an entity to have no ability to withdraw, stop or cancel an electronic payment instruction; to have lost the practical ability to access the cash as a result of the electronic payment instruction; and the settlement risk associated with the electronic payment instruction to be insignificant.

Goodwill and Impairment

The staff will ask the IASB whether they want to retain the impairment-only model or move to an amortisation model.

Business Combinations under Common Control (BCUCC)

The IASB will continue discussing the selection of the measurement method to apply to a BCUCC. The staff set out their initial views, but are not making any recommendations. The staff agree with the IASB’s preliminary views to, in principle, apply the acquisition method to a BCUCC that affects non-controlling shareholders but that the IASB should consider some potential exceptions. If the BCUCC does not affect non-controlling shareholders a book-value method would apply, with no exceptions.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures

The staff recommend that the IASB confirms that the subsidiaries eligible to apply the Standard are a ‘subsidiary at the end of the reporting period’ that has an ultimate or intermediate parent that produces consolidated financial statements complying with IFRS Accounting Standards. The staff also recommend not proceeding with the proposal that the parent’s consolidated financial statements are ‘available for public use’.

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

Recording of the Islamic Finance Consultative Group

17 Nov, 2022

On 1-2 November 2022, the Islamic Finance Consultative Group held its meeting in Kuala Lumpur, Malaysia.

Topics discussed during the meeting included:

  • Updates from MASB
  • Second comprehensive review of the IFRS for SMEs Accounting Standard
  • Post-implementation review of IFRS 9
  • Post-implementation review of IFRS 15
  • Update on ISSB developments
  • Third Agenda consultation
  • IFRS Interpretations Committee update

A recording of the meeting is available on the IFRS Foundation’s website.

IASB issues November 2022 'Investor Update' newsletter

17 Nov, 2022

The IASB has issued the latest edition of its newsletter 'Investor Update', which profiles recently introduced IFRS Standards and other changes that are in the pipeline as well as how those changes may affect companies and performance.

This issue features:

  • In profile — Enitan Adebonojo, Senior Forensic Equity Analyst and Executive Director at CFRA
  • Spotlight — Key conclusions from the Third Agenda Consultation
  • We need your views — Open consultations
  • Stay up to date
  • Resources for investors — Recent webcasts and webinars
  • IASB Updates and podcasts

The Investor Update newslet­ter is available on the IFRS Foun­da­tion’s website.

November 2022 IFRS Interpretations Committee meeting agenda posted

17 Nov, 2022

The IFRS Interpretations Committee has posted the agenda for its next meeting, which will be held on 29 November 2022.

The Committee will discuss the following:

  • Administrative matters
  • Definition of a lease: Substitution rights (IFRS 16)
  • Potential annual improvements to IFRS Accounting Standards
  • Post-implementation review of IFRS 15

The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries as well as observer notes from the meeting on this page as they become available.

G20 Leaders support upcoming ISSB Standards

17 Nov, 2022

The G20 has issued final declaration following the G20 Leaders meeting held in Bali on 15–16 November 2022.

In particular, the G20 discussed that “globally consistent data are needed in order to effectively address climate-related financial risks” and are looking “forward to the finalization of standards by the International Sustainability Standards Board (ISSB) in support of globally consistent, comparable and reliable climate-related financial disclosures, and its work beyond climate.” In addition, the G20 welcomes “the efforts to achieve interoperability across disclosure frameworks.”

For more information, see the full final declaration.

Summary of the Jurisdictional Working Group October 2022 meeting

16 Nov, 2022

The IFRS Foundation has posted the meeting summary of the Jurisdictional Working Group meeting held on 17 October 2022.

During the meeting, par­tic­i­pants provided an update on the progress of sustainability-related reporting in their jurisdictions and gave observations to the agenda papers for the October 2022 ISSB meeting. The ISSB and IFRS Foundation Trustees will be evaluating the future role of the JWG considering the establishment of the Sustainability Standards Advisory Forum.

See the full summary on the IFRS Foundation website.

IFRS Foundation proposes update to IFRS Taxonomy 2022

16 Nov, 2022

The IFRS Foundation has issued a proposed IFRS Taxonomy Update, 'IFRS Accounting Taxonomy 2022 Proposed Update 1 — General Improvements and Common Practice'.

The proposed changes aim to improve the quality of tagged data and to make the IFRS Accounting Taxonomy easier to use.

Details on the proposed changes are available in the press release on the IFRS Foundation website and in proposed update itself. Comments are requested by 16 December 2022.

Chairs of EFRAG FRB and EFRAG SRB announced

16 Nov, 2022

The European Financial Reporting Advisory Group (EFRAG) has completed the move to its new structure by announcing the Chairs of the two new reporting Boards working side-by-side under the new Administrative Board.

The Financial Reporting Board (FRB) will be chaired by Wolf Klinz, former Member of the European Parliament; the Sustainability Reporting Board (SRB) will be chaired by Patrick de Cambourg, former President of the French accounting standard setter Autorité des normes comptables (ANC). The Chair and Vice Chair of the Administrative Board were already announced in February 2022.

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

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