The document gives a broad explanation of that law and of the role and content of the Guidance on realised and distributable profits (TECH 02/17BL) issued by ICAEW and the Institute of Chartered Accountants of Scotland (ICAS). It aims to inform readers who are not accountants about the subject generally and to make TECH 02/17BL and its principles more widely accessible. The document does not change or supersede TECH 02/17BL which remains in effect as written.

The document covers:

• Laws relevant to dividends and other forms of distribution. This provides an overview of the various laws that directors should be aware of before making dividend payments. These laws include laws specific to dividends in the Companies Act 2006.
• General principles on the realisation of profits and losses. This outlines the general principles when applying the laws specific to dividends in the Companies Act 2006, including those derived from TECH 02/17BL.
• Directory of TECH 02/17BL. This briefly describes the subject matter of each chapter of TECH 02/17BL to help users of that publication to navigate its contents.

A press release and the full publication are available on the ICAEW website.

Accountancy Europe notes that the COVID-19 pandemic has resulted in rapid deployment of government financial resources and development of support programmes. As governments should be very transparent about the effects of this, the recommended short-term actions include:

• Controls over public sector expenditure have been relaxed. It is essential that governments are transparent as to the amount of funds received by beneficiaries and that such payments are retrospectively audited to ensure they have been correctly used.
• Public sector entity reporting and auditing requirements may need to be temporarily relaxed in certain circumstances. But transparency is important, and they should report what truly matters.
• Central governments should urgently provide guidance for public sector entities on reporting of going concern, post balance sheet events and management commentary.

Accountancy Europe also notes that it will not be business as usual once the crisis is over and that governments should seize the opportunity to drive forward programmes that support long-term fiscal resilience. The recommended long-term actions, therefore, include:

• Public sector balance sheets will be more important than ever with public sector assets and liabilities set to balloon.
• Post coronavirus crisis, the public sector finances will need to be restored and economies will need a kick-start. Robust accruals-based accounts provide the foundation necessary for forward looking estimates and economic models.
• Governments will need record levels of borrowing, much of it from open markets, and investors will want to see reliable, internationally comparable and timely information. Adopting internationally recognised public sector accounting standards (IPSAS) would provide such foundations.

The actions recommended by Accountancy Europe are available in a summary overview, an in-depth analysis of the short-term actions and an in-depth analysis of the long-term actions.

EFRAG assesses that the amendment meets the technical endorsement criteria of the IAS Regulation and is conducive to the European public good. It therefore recommends its endorsement.

The European Commission's Accounting Regulatory Committee's (ARC) vote, the next step in the endorsement process, is expected to take place later in June, however, final endorsement is currently expected not before "Q3/Q4 2020".

Please click to access the final endorsement advice letter and a corresponding press release on the EFRAG website.

The webinar will cover:

• changes to IFRS Standards effective in 2020, including amendments to interest rate benchmark reform;
• the latest updated to IFRS 17 Insurance Contracts relevant to non-insurers;
• lessons learned from implementing IFRS 16 Leases; and
• forthcoming developments in IFRS Standards.

Further details are available on the ICAEW website.

The third article Opportunities for Enhancing the Goodwill Impairment Framework can be accessed on the IVSC website.

The second article What is the Information Value of the Current Impairment Framework? was published in December 2019.

The first article Is Goodwill a Wasting Asset? was published in September 2019.

The statement discusses:

• the importance of disclosures about the impact on amounts recognised, measured and presented in the financial statements;
• the importance of transparent and complete disclosures that should be entity-specific and especially highlight significant judgments and estimates;
• non-GAAP measures that should be reliable and informative;
• interim reports that should provide robust disclosures of material information and management’s response to the changing circumstances;
• implications for the annual audit; and
• the balance between the flexibility provided by regulators by extending the period to file financial information and the responsibility to provide timely and comprehensive financial information that includes reasonable and supportable judgments.

A corresponding press release and the public statement are available on the IOSCO website.

The IASB's project on goodwill and impairment aims at improving the information companies provide to investors, at a reasonable cost, about the businesses those companies buy and would help to hold management to account for its decisions to acquire those businesses.

In its draft comment letter on the discussion paper published in March 2020, EFRAG

• supports the objective to explore whether companies can, at a reasonable cost, provide investors with more useful information about the acquisitions companies make;
• notes some practical issues to consider in relation to disclosures about the strategic rationale, management’s objectives for an acquisition, and synergies; asks whether this information should be provided in the management commentary rather than the financial statements; and questions whether the benefits of some of the disclosures would outweigh the costs;
• suggests that the guidance on goodwill allocation to cash generating units is possibly amended to improve how the impairment test for cash-generating units containing goodwill is applied in practice;
• does not offer a view yet on whether amortisation of goodwill should not be reintroduced;
• appreciates the attempts to simplify the impairment test, but has reservations about introducing an indicator-only approach;
• supports the proposal to remove the restriction that prohibits companies from including cash flows arising from a future uncommitted restructuring or from enhancing the asset’s performance as well as to remove the requirement to use pre-tax inputs and pre-tax discount rates to calculate value in use;
• does not assess that there would be any benefits of presenting the amount of total equity excluding goodwill in the statement of the financial position; and
• would recommend that the issue on whether some intangible assets could be included in goodwill should be considered in a second phase of the project.

Comments on EFRAG's draft comment letter are requested by 30 November 2020. For more information, see the press release and the draft comment letter on the EFRAG's website.

The podcast features discussions related to amendment to IFRS 16 Leases to help companies with covid-19-related rent concessions. The podcast also discusses:

• Amendments to IFRS 17 Insurance Contracts;
• IBOR reform and the effects on financial reporting — Phase 2;
• Management commentary;
• Disclosure initiative — Accounting policies; and
• Maintenance and consistent application.

The podcast can be accessed through the press release on the IASB website. More information on the topics discussed is available through our comprehensive notes taken by Deloitte observers at the May IASB meeting as well as the Board's supplementary COVID-19 meeting.

Interest rate benchmarks such as the London Interbank Offered Rate (LIBOR) are being reformed, and it is anticipated that LIBOR will not be available after 2021. There is increasing uncertainty about the long-term viability of some interest rate benchmarks and this gives rise to issues affecting financial reporting in the period before the reform, particularly in relation to hedge accounting.

In response to the uncertainty, the FRC amended specific hedge accounting requirements in Section 12 of FRS 102 in December 2019, to provide relief that will avoid unnecessary discontinuation of hedge accounting as interest rate benchmarks are reformed.

The amendments in 2019 focussed on financial reporting issues arising before the reform of an interest rate benchmark. Further issues might affect financial reporting during the reform of an interest rate benchmark in respect of modifications to financial instruments, changes to hedging relationships and modifications to leases. FRED 74, which represents a second phase of amendments, focusses on these issues.

FRED 74 proposes amendments to the accounting requirements in Section 11 Basic Financial Instruments, Section 12 Other Financial Instruments Issues and Section 20 Leases to provide relief to minimise discontinuities in the accounting for financial instruments and leases, minimise reporting costs, assist entities in providing useful information to users of financial statements and avoid unnecessary discontinuation of hedge accounting as agreements are modified in order to transition to alternative benchmark rates. Entities will account for modifications as if they result from periodic re-estimations of cash flows to reflect changes in market rates of interest.

It is proposed that the amendments are effective for accounting periods beginning on or after 1 January 2021, with early application permitted. Comments are requested by 30 September 2020.

A press release and the draft amendments are available on the FRC website.

Amendments have been made to the standard to improve the consistency of the disclosure exemptions in relation to the statement of cash flows and related disclosures.

The amendments to FRS 101 provide an exemption from the disclosure of cash flows required by paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources. A similar amendment has been made to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for qualifying entities.

An amendment has also been made to the exemption from paragraph 33(c) of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, removing the condition that this exemption is only available when equivalent disclosures are made in the relevant consolidated financial statements of the group in which the entity is consolidated. This is for consistency with the exemption from the presentation of a statement of cash flows.

A press release and the amendments are available on the FRC website.