For a list of other changes made to the work plan since it was last revised, see our IASPlus news item.

As reported earlier, Executive Vice President Valdis Dombrovskis of the EC announced in January 2020 that later this year he would present a renewed sustainable finance strategy, which would include a revision of the Non-Financial Reporting Directive (NFRD).

As a first step of the corresponding initiative that has just been launched, an "Inception impact assessment" has been published. The background paper for the impact assessment notes the following current problems with the NFRD:

• Reported non-financial information is not sufficiently comparable or reliable.
• The reported non-financial information does not meet users' needs.
• Companies incur unnecessary and avoidable costs related to reporting non-financial information.
• Companies face uncertainty and complexity when deciding what non-financial information to report, and how and where to report such information.

The background papers names three options that could be followed to address these problems:

1. Continue the current approach of non-binding guidelines to assist companies when reporting according to the NFRD.
2. Explore the use of standards (which would remain voluntary for companies to use if they wish to).
3. Revise and strengthen the provisions of the NFRD.

Given Mr Dombrovskis earlier remarks and the title of the initiative, it seems that the EC has already formed an opinion on the best way forward. However, stakeholders have the possibility to comment on the impact assessment (until 27 February 2020), and a formal full consultation is announced for the first quarter of 2020.

Please click for the consultation page on the EC website that offers access to the Inception impact assessment background paper, the feedback possibility and a general outline on the planned timing for the revision.

The The update reports on the EFRAG conference call on 11 December, the EFRAG Board meeting on 18 December, the EFRAG Technical Expert Group meeting on 4 to 5 December, the meeting of the EFRAG CFSS and EFRAG TEG on 4 December and the meeting of the European Lab Steering Group on 3 December.update reports on the EFRAG Board meeting on 14 January, the EFRAG Technical Expert Group meeting on 29 to 30 January, the EFRAG conference call on 8 January and the Project Task Force on Climated-Related Reporting meeting on 8 January.

The update also lists EFRAG publications issued in December:The update also lists EFRAG publications issued in DecemberThe update also lists EFRAG publications issued in January:

• EFRAG's final comment letter and feedback statement on the IASB Exposure Draft ED/2019/6 Disclosure of Accounting Policies;
• EFRAG's advice to the European Commission on the measurement of ling-term investments in equity instruments;
• EFRAG's call for expressions of interest from European Insurance companies in participating in its limited update of the case studies realting to IFRS 17 Insurance Contracts; 
• EFRAG's call for experts for its Advisory Panel on intangibles;
• EFRAG's invitation for a launching event of a report on Climate-related Reporting.

Please click to download the January EFRAG update from the EFRAG website.update reports on the EFRAG conference call on 11 December, the EFRAG Board meeting on 18 December, the EFRAG Technical Expert Group meeting on 4 to 5 December, the meeting of the EFRAG CFSS and EFRAG TEG on 4 December and the meeting of the European Lab Steering Group on 3 December.The update reports on the EFRAG conference call on 11 December, the EFRAG Board meeting on 18 December, the EFRAG Technical Expert Group meeting on 4 to 5 December, the meeting of the EFRAG CFSS and EFRAG TEG on 4 December and the meeting of the European Lab Steering Group on 3 December.THtThe update reports on the EFRAG conference call on 11 December, the EFRAG Board meeting on 18 December, the EFRAG Technical Expert Group meeting on 4 to 5 December, the meeting of the EFRAG CFSS and EFRAG TEG on 4 December and the meeting of the European Lab Steering Group on 3 DecembTfThe update reports on the EFRAG conference call on 11 December, the EFRAG Board meeting on 18 December, the EFRAG Technical Expert Group meeting on 4 to 5 December, the meeting of the EFRAG CFSS and EFRAG TEG on 4 December and the meeting of the European Lab Steering Group on 3 December.fhfgThe update reports on the EFRAG conference call on 11 December, the EFRAG Board meeting on 18 December, the EFRAG Technical Expert Group meeting on 4 to 5 December, the meeting of the EFRAG CFSS and EFRAG TEG on 4 December and the meeting of the European Lab Steering Group on 3 December.

The podcast discusses the amend­ments ten­ta­tively finalised during the meeting and focuses on credit card contracts, risk mitigation option, contracts acquired in a settlement period, and acquisition cash flows.

The podcast can be accessed through the press release on the IASB website. Our summary of the meeting and the results of the IASB's votes is available here.

In January 2019, the IPSASB issued IPSAS 42 Social Benefits providing guidance on accounting for social benefits expenditure. Together with the new standard, the IPSASB published an exposure draft of guidance complementing IPSAS 42 by providing requirements for accounting for collective services (such as defense at national-levels and street lighting at sub-national levels) and individual services (such as healthcare and education), which has now been finalised. Collective and Individual Services requires that an expense is recognised at the point of service delivery and is effective for periods beginning on or after 1 January 2022.

Please click for the following additional information on the IPSASB website:

• Press release
• Access to the standard, introductory webinar and At a Glance summary

Below is an analysis of all changes made to the work plan since our last analysis on 14 December 2019.

Standard-setting projects

• Primary Financial Statements — After publishing an exposure draft in December 2019, the next milestone for this project is now exposure draft feedback. Comments are due by 30 June 2020.
• Rate-regulated Activities —  An exposure draft is now expected in H2 2020 (formerly H1 2020).
• Subsidiaries that are SMEs — After reviewing research at the January 2020 Board meeting, the Board decided to elevate this project to a standard-setting project. The next milestone is now  a decision on whether to proceed with a discussion paper or exposure draft. No date is listed.

Maintenance projects

• 2019 Comprehensive Review of the IFRS for SMEs Standard — After publishing its Request for Information earlier this month, the next milestone for this project is feedback. Comments are due by 27 July 2020.
• Amendments to IFRS 17 Insurance Contracts — An IFRS amendment is now expected in Q2 2020 (formerly H1 2020).
• Annual improvements — 2018-2020 cycle — Final amendments are now expected in April 2020 (formerly Q2 2020). The following projects are part of the annual improvements:
  
  • Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities (Amendments to IFRS 9)
  • Lease Incentives (Amendment to Illustrative Example 13 accompanying IFRS 16)
  • Subsidiary as a First-time Adopter (Amendment to IFRS 1)
  • Taxation in Fair Value Measurements (Amendment to IAS 41)
• Classification of Liabilities as Current or Non-current (amendments to IAS 1) — Removed from the work plan after publishing an IFRS amendment earlier this month.
• Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to IAS 12) — Exposure draft feedback is now expected in Q2 2020 (formerly Q1 2020).
• IBOR Reform and its Effects on Financial Reporting—Phase 2 — An exposure draft is now expected in April 2020 (formerly Q2 2020).
• Lack of Exchangeability (Amendments to IAS 21) — The milestone has shifted from "work in progress" to an exposure draft. No expected date is listed.
• Onerous Contracts—Cost of Fulfilling a Contract (Amendments to IAS 37) — An IFRS amendment is now expected in Q2 2020 (formerly H1 2020).
• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) — An IFRS amendment is now expected in March 2020 (formerly Q1 2020).
• Provisions—Targeted Improvements — After reviewing research at the January 2020 Board meeting, the Board decided to elevate this project to a maintenance project. The next milestone is to decide the project direction. No expected date is listed.
• Updating a Reference to the Conceptual Framework (Amendments to IFRS 3) — An IFRS amendment is now expected in April 2020 (formerly Q2 2020).

Research projects

• Business Combinations under Common Control — A discussion paper is now expected in Q2 2020 (formerly H1 2020).
• Dynamic Risk Management — Core model outreach is now expected in Q2 2020 (formerly H1 2020).
• Extractive Activities — Review research is now expected in Q2 2020 (formerly H1 2020).

Other projects

• Due Process Handbook Review — After discussing the feedback received on the proposed amendments, the DPOC decided to move forward with final amendments. No expected date is listed.
• IFRS Taxonomy Update—Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) — After a discussion at the January 2020 Board meeting, the next milestone is an IFRS Taxonomy Update, expected in March 2020.

The above is a faithful comparison of the IASB work plan at 14 December 2019 and at 31 January 2020. For access to the current IASB work plan at any time, please click here.

This year, the improvement cycle does not include amendments that aim at convergence with recent IASB amendments.

The amendments that are the result of IPSAS 41 Financial Instruments are effective for periods beginning on or after 1 January 2022.

All other amendments are effective for periods beginning on or after 1 January 2021.

Please click for the following information on the IPSASB website:

• Press release
• Access to the final pronouncement

EFRAG did not find sufficient evidence to determine whether the non-recycling treatment of equity instruments within IFRS 9 Financial Instruments has an impact on investor behaviour. However, EFRAG also notes that the reasoning behind the IASB's decision for prohibiting recycling is not one of the reasons stated in the revised Conceptual Framework for doing so. EFRAG, therefore, advises the EC to recommend to the IASB a review of the non-recycling treatment of equity instruments in IFRS 9, testing whether the revised Conceptual Framework would justify recycling of fair value gains and losses accumulated in other comprehensive income on such instruments when realised. EFRAG also recommends that if recycling was to be reintroduced, the IASB should also consider the features of a robust impairment model, including the reversal of impairment losses.

Please click for the following additional information on the EFRAG website:

• Press release
• Technical advice to the EC
• Feedback statement on the public consultation EFRAG conducted as part of forming the advice
• Technical assessment of alternative accounting treatments

The FRC’s proposed changes reflect revisions to the international standards on auditing issued by the International Auditing and Assurance Standards Board (IAASB).  Those revisions are designed to establish a more robust and consistent risk identification and assessment.

The FRC is proposing to update the ISA (UK) to reflect all of the changes made by the IAASB without any new UK requirements.

When finalised, the revised UK standard is proposed to be effective, in line with the international standard, for audits of financial statements for periods beginning on or after 15 December 2021. Early adoption of the revised standard will be permitted and is encouraged.

The FRC is at the same time consulting on conforming amendments to other UK standards.

The consultation runs until 4 April 2020.

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

Carrots & Sticks and the Reporting Exchange have collaborated to improve access to reliable and comparable information by aligning taxonomies. Jointly, the newly aligned systems give public and private sector users an overview of hundreds of reporting provisions covering the world’s 70 largest economies. This includes mandatory and voluntary requirements and guidance from regulators, capital markets, professional associations, industry bodies and other organisations. Please click for more information and access to the systems.

The Climate Disclosure Standards Board (CDSB) has announced the launch of a consultation with the aim of accelerating the rate of nature-related financial disclosures at scale by organisations globally and exploring the role of the CDSB Framework in facilitating this. Please click for more information and access to the consultation.

The Integrated Reporting Committee (IRC) of South Africa has developed an information paper to assist organisations with their disclosure of the information regarding outlook. The paper aims to inform those preparing integrated reports, as well as executives and members of the governing body who are responsible for guiding and approving integrated reports. Please click for more information and access to the information paper.

Accounting for Sustainability (A4S) has released Financing our Future (Update), which updates the September 2018 report of the same title and also contains five overarching recommendations, one of which regards sustainability reporting and calls for the adoption of global reporting standards and the use of consistent terminology. Please click for more information and access to the original and the updated report.

The Global Reporting Initative has announced the launch of a new tax reporting standard that seeks to ensure multinationals are much clearer about how much – and where – they pay their taxes (more information) as well as the launch of a new toolkit to advance reporting on modern slavery (more information).

The Institute of Chartered Accountants in England and Wales (ICAEW) will be hosting a webinar looking at the Task Force on Climate-related Financial Disclosures' recommendations in more detail. Please click for more information.

The European Corporate Reporting Lab @EFRAG announces a launching event of a report on Climate-related Reporting, on 6 February. The report focuses on good reporting practice examples from Europe and beyond related to general climate-related disclosures and scenario analysis. Please click for more information and registration.

The United Nation's Sustainable Stock Exchanges (SSE) initiative announces that The Athens Stock Exchange, a member of the initiative since 2018, published its first ESG reporting guide. Please click for more information and access to the guide.