The announcement of the prototype framework follows on an earlier draft outline and links to comments made by Paul Druckman (IIRC CEO) at the recent conference, where he noted the importance of the pilot programme in developing the framework:

... I am so pleased that the Pilot Programme will be extended for two further reporting cycles, so that this year’s innovation can be continued and tested, and shared with others.  We are seeking to encourage a process of continuous improvement in the quality of corporate reporting.  The Framework will be so much more valuable with the benefit of this extensive testing, providing the intellectual underpinning to the evolution in corporate reporting we are seeking to bring about.

In his speech, Mr Druckman also called on governments and organisations to prepare for the introduction of integrated reporting:

... in the coming year we plan to use the collateral we have gained from the experiences of Pilot Programme businesses and investors to increase our profile and influence.  To begin this process, we will be asking each of [the Pilot Programme] organizations to sign up to a public statement which will be published in early October.  The statement will outline the broad benefits of our market-led approach and will call on Governments, regulators and standard setters to sit up and take notice of our movement.  We need to encourage them to think about, and prepare for, Integrated Reporting, in advance of the Framework being published at the end of next year.

A Consultation Draft of the Framework is expected to be released in April 2013 followed by a final “version 1.0” in December 2013.   The IIRC is also planning to release subsidiary papers on a range of topics during late 2012 and 2013.

Click for (links to IIRC website):

• IIRC Prototype framework (note: this is the finalised version released 26 November 2012)
• Full text of Paul Druckman's speech
• IIRC press release

The forum included discussions on changes implemented by  IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IFRS 13 Fair Value Measurement; IFRS 9 Financial Instruments and the financial instruments project; and the exposure drafts on leases and revenue recognition. The modifications to these standards are expected to “change the international financial reporting landscape in a dramatic manner.”

Additionally, Deloitte IFRS experts, Veronica Poole (Global IFRS Leader Technical) and Andrew Spooner (Partner, IFRS Centre of Excellence, UK) discussed IASB and FASB convergence issues such as those regarding financial instruments project, the implications of the US SEC Staff report, and the IASB unfinished agenda under the “MoU” with the FASB.

This forum is part of a series of Deloitte IFRS seminars in the Middle East to address these ongoing changes to IFRS.

The press release is available on Deloitte.com.

In coming to the decision to re-expose, the Board considered a number of factors including the length of time that has already been devoted to the project (the comprehensive project on insurance contracts was added to the IASB's agenda in 2001) and the importance of issuing a final standard soon. Balancing the belief that a re-exposure is necessary and the wish not to start discussions almost from scratch again by re-exposing the whole exposure draft (and thus to delay the finalisation of the standard), the IASB has decided on targeted questions on:

• treatment of participating contracts;
• presentation of premiums in the statement of comprehensive income;
• treatment of the unearned profit in an insurance contract;
• presenting, in other comprehensive income, the effect of changes in the discount rate used to measure the insurance contract liability; and
• the approach to transition.

A date for the re-exposure has not yet been announced. Please click for access to the corresponding press release on the IASB website.

An excerpt from the FRRP findings:

Conclusions

The Panel found the general quality of reporting by companies whose accounts it reviewed to be good.

There was further improvement in all aspects of reporting of principal risks and uncertainties. The reporting of mitigating actions, in particular, was considered to be done well.

In recent years, to support its objective of improving the quality of corporate reporting, the Panel has highlighted features which it associates with a good annual report. It is pleased to see some evidence this year of boards focussing on key messages by eliminating unnecessary and obscuring detail. Others have reconsidered the presentation of their financial statements by giving greater prominence to material disclosures or by changing the order of content to assist shareholders’ understanding of their company’s business, policies, performance and position.

We do, however, remain concerned about the quality of reporting by some smaller listed and AIM quoted companies that lack the accounting expertise of their larger listed counterparts. The Panel raised more potentially substantive issues with a number of such companies and these frequently took more time to resolve satisfactorily. Directors should not under-estimate the importance of their legal responsibility to prepare accounts that comply with the law and accounting standards.

The Panel was pleased that boards of directors continued to co-operate well with it during the year, often voluntarily giving undertakings to improve the quality of their future reporting. In the one instance where a company did not respond constructively to the Panel’s request for additional information and explanations, the Panel wrote to the chairman invoking its statutory power to require such information as it believed necessary. Such information was then provided.

Click for:

• FRRP annual report (link to FRC website)
• Our UK country page

Sir David was Chairman of the IASB for 10 years and served another decade before that as Chairman of the UK Accounting Standards Board. He overhauled UK GAAP and spearheaded the adoption of IFRS in over 100 countries. He will bring his vast experience to the IVSC, helping to advance the organisation's priorities: (1) promoting the recognition and adoption of the International Valuation Standards in the world’s major economies and (2) leading the development of the valuation profession worldwide bringing it together with users of valuation, regulators, legislators and opinion-formers.

Click for press release (link to IVSC website).