Background

On 23 January 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 Presentation of Financial Statements based on the contractual arrangements in place at the reporting date. The amendments had an effective date of 1 January 2022.

In April 2020, the IASB held a supplementary IASB meeting to consider COVID-19-related matters including the Board's timelines in view of the COVID-19 pandemic. The Board tentatively decided to delay by one year the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023 and published a corresponding exposure draft in May 2020.

The finalised amendment published today defers the effective date of the January 2020 amendments by one year.

Changes

The changes in Classification of Liabilities as Current or Non-current — Deferral of Effective Date defer the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023. Earlier application of the January 2020 amendments continue to be permitted.

Additional information

Please click for:

• IASB press release (link to IASB website)
• Our UK Accounting Plus project page on Classification of liabilities — Effective date
• Our related Need to know publication

The role of the FRAB is “to ensure that government financial reporting meets the best possible standards of financial reporting by following Generally Accepted Accounting Practice (GAAP) as far as possible”. The FRAB includes representatives from the accountancy profession in the private and public sectors, academia and government bodies. The board meets regularly to consider proposed changes to policy and practice.

Key topics discussed during the March meeting included:

• an update on the Financial Reporting Manual (FReM);
• an update on the implementation plan for the adoption of IFRS 17 Insurance Contracts and a proposed IFRS 17 application guidance exposure draft expected in winter 2020/21; and
• an update on the CIPFA/LASAAC Code of Practice on Local Authority Acounting in the United Kingdom.

Key topics discussed during the April meeting included the challenges from Covid-19 that are emerging including various options for reducing the reporting burden.  It was agreed that the 2019/20 FReM would remain unchanged but that further guidance would be issued to set minimum reporting requirements for the performance and accountability reports.

The minutes and other supporting documents for the March and April meetings are available on the HM Treasury website.

The standards and amendments affected include: 

• IPSAS 41 Financial Instruments;
• IPSAS 42 Social Benefits;
• Long-term Interests in Associates and Joint Ventures (Amendments to IPSAS 36) and Prepayment Features with Negative Compensation (Amendments to IPSAS 41);
• Collective and Individual Services (Amendments to IPSAS 19); and
• Improvement to IPSAS, 2019. 

The exposure draft can be accessed on the IPSASB website. Comments are requested by 15 August 2020.

A consolidated version of IFRS 17 incorporating the June 2020 amendments is now available freely on the IASB website. The amendments are effective for annual periods beginning on or after 1 January 2023 with earlier application permitted.

Please click to access the consolidated version of IFRS 17 on the IASB website.

The corrections affect IFRS 17 Insurance Contracts. In addition, the IASB has published a list of errata on Amendments to IFRS 17 published in June 2020.

Editorial corrections do not change the meaning or application of pronouncements, but instead correct inadvertent errors. Both, the editorial corrections and the list of errata, can be viewed on the editorial corrections page of the IASB's website.

A recording of this webinar is now available on YouTube.

The objective of the event is to collect input from the community of interested preparers that were unable to participate in the field-tests organised by EFRAG. The insights of the field testing will be presented and discussed with a panel of preparers. The audience will be able to contribute to the discussion through polling surveys and Q&A sessions.

Please click for more information on the EFRAG website.

ISA (UK) 315 (Revised-July 2020) adopts the revisions made to the underlying international standard issued by the International Auditing and Assurance Board (IAASB).Those revisions are designed to establish a more robust and consistent risk identification and assessment.

ISAE (UK) 3000 adopts the corresponding ISAE issued by the IAASB but has been modified to require that assurance practitioners applying it for engagements that the FRC has designated as "public interest assurance engagements" comply with the FRC's Ethical Standard.  Compliance with ISAE (UK) 3000 will be mandatory for such engagements which will ordinarily be particular engagements for which there is a requirement in law or regulation for an assurance report to be provided by an auditor or other assurance practitioner, or where a clear need has been identified to serve the public interest. Voluntary application to other assurance engagements is permitted.

Please click below for (all links to FRC website):

• Press Release
• ISA (UK) 315 (REVISED-July 2020)
• Feedback Statement and Impact Assessment for ISA (UK) 315
• (ISAE) (UK) 3000
• Feedback Statement and Impact Assessment for (ISAE) (UK) 3000

The project will seek to identify how information about stakeholders can be reported most effectively by examining existing practice and understanding investors' needs in this area.  Of particular interest will be reporting on other stakeholders including customers and suppliers.

The scope of the project will:

• focus on communications targeted towards shareholders but which may be of use to other stakeholders;
• explore companies’ approach to reporting about stakeholders, including how stakeholders’ views are gathered and the communication channels used;
• investigate how companies report on the decisions they are taking in relation to customers, employees, suppliers and the environment in which they operate, including difficult decisions in light of COVID-19;
• discuss which areas of reporting are most challenging for companies;
• consider the extent to which lessons can be learnt from emerging international reporting practice; and
• highlight interesting examples from current reporting practice (across both Section 172 statements and wider reporting).

A press release and further information are available on the FRC website.

As the revised UK GAAP regime has now been in place for a number of years, preparation of either parent company or subsidiary accounts under either FRS 101 or FRS 102 should now have become a more routine exercise. The FRC has made several changes to FRS 102 as part of its first triennial review of the Standard to deal with issues highlighted in its implementation. The amendments were published in December 2017. More recently amendments to FRS 102 related to multi-employer defined benefit plans and interest rate benchmark reform have been issued. Minor amendments were also made as a result of the 2019/20 annual review of FRS 101.

The table below reflects new and revised UK GAAP financial reporting requirements that need to be considered for financial reporting periods ending on 30 June 2020. For those reporters who want to understand new UK GAAP application for earlier periods please select one of the following:

• New UK GAAP application for reporting periods ending 31 March 2020
• New UK GAAP application for reporting periods ending 31 December 2019
• New UK GAAP application for reporting periods ending 30 September 2019
• New UK GAAP application for reporting periods ending 30 June 2019
• New UK GAAP application for reporting periods ending 31 March 2019
• New UK GAAP application for reporting periods ending 31 December 2018
• New UK GAAP application for reporting periods ending 30 September 2018
• New UK GAAP application for reporting periods ending 30 June 2018
• New UK GAAP application for reporting periods ending 31 March 2018
• New UK GAAP application for reporting periods ending 31 December 2017
• New UK GAAP application for reporting periods ending 30 September 2017
• New UK GAAP application for reporting periods ending 30 June 2017
• New UK GAAP application for reporting periods ending 31 March 2017
• New UK GAAP application for reporting periods ending 31 December 2016
• New UK GAAP application for reporting periods ending 30 September 2016
• New UK GAAP application for reporting periods ending 30 June 2016
• New UK GAAP application as at 31 March 2016
• New UK GAAP application as at 31 December 2015