The new publication highlights the value of reporting on human capital, sharing some of the developments and experimentation taking place in this area. It also identifies the benefits of human capital management and reporting, including the particular benefits to be gained from applying Integrated Reporting. Please click to access The value of human capital reporting on the IIRC website.

This issue of Investor Perspective features:

• An examination of capitalisation tables;
• A closer look at the IASB's projects on Conceptual Framework and financial instruments with characteristics of equity;
• A solicitation for ideas on "more efficient and effective way for investors and lenders to obtain a comprehensive picture of the rights and obligations created by a company’s liability and equity claims"; and
• Recent resources related to disclosure effectiveness.

For more information, see the June 2016 edition of the Investor Perspectives newsletter on the IASB’s website.

The development is reflected in an updated EFRAG endorsement status report.

BUFDG has amended its resources available to assist users of the SORP Accounting for further and higher education as set out below.

• The Model Financial Statements have been amended to clarify various presentation issues, principally in relation to capital grants; and
• A new conversion tool, which moves from current UK GAAP to FRS102 and demonstrates how each of the adjustments impacts the balance sheet, statement of comprehensive income, statement of equity and cash flow, has been made available.

Both of these documents are available from the dedicated SORP resources page of the BUFDG website, as is the BUFDG press release.

Sketching progress that has been achieved in the regulatory field after the global financial crisis, Mr Hoogervorst first pointed at the increased use of IFRSs around the world. This, he stated, has brought "tremendous benefits to the global economy in terms of transparency, accountability and efficiency". In terms of standard-setting he then mentioned the completion of IFRS 15 and IFRS 16 and the near completion of the new standard on insurance contracts. The completion of IFRS 9 he called the IASB's main response to the financial crisis.

Looking more deeply into IFRS 9 Financial Instruments, Mr Hoogervorst explained the new expected loss model that means that full lifetime losses will have to be recognised as soon as a significant increase in credit risk has taken place. He noted that implementation of the expected loss model will require considerable effort, particularly in jurisdictions where the banking system is suspected of harbouring a lot of problem loans. In these jurisdictions proper implementation of IFRS 9 could be a huge challenge for auditors, market and prudential regulators. He warned and encouraged his audience:

Expect to hear a lot of complaints, but stand resolute in your determination to do the right thing!

After discussing accounting, Mr Hoogervorst strayed beyond the remit of the IASB and offered his thoughts on audit, bank capital, leverage in the global economy, and unchartered waters in general.

Please click to access the full text of Mr Hoogervorst's speech on the IASB website.

In relation to accounting, corporate reporting, audit and corporate governance this means that the following considerations apply.

• For the foreseeable future, the requirements for use of IFRSs as endorsed for use in the European Union (including the need for endorsement of new standards before they can be applied) will not change.
• The legal requirements underpinning UK GAAP remain unchanged.
• There will be no impact on implementation of the EU audit reform changes, which came into effect for periods commencing on or after 17 June this year.

In a statement following the referendum vote to leave the EU, the FRC said that:

"Stakeholders have asked about the implications of the referendum result for our regulatory work. Our regulatory framework is unchanged and we will continue to apply it. The FRC will also continue to play its part in representing the interests of the UK internationally. We will pay close attention to the decisions now taken by the Government and Parliament, and continue to work in collaboration with our key stakeholders, particularly investors, business and the professionals we regulate, in order to ensure our work continues to support economic growth."

The full FRC statement can be obtained from their website.

Click here to access Deloitte's Governance in Brief publication 'The vote to leave' which examines key considerations for half year reporting.

Deloitte UK offers a website dedicated to the EU referendum and its result offering insight papers, perspectives and access to webinars on what this change can mean.

Sir Win Bischoff highlighted the work of the FRC in promoting good corporate behaviour through its Culture Coalition; a group of organisations containing the Chartered Institute of Internal Auditors (IIA), the Chartered Institute of Personnel and Development (CIPD), the Chartered Institute of Management Accountants (CIMA), the Institute of Business Ethics (IBE) and City Values Forum specifically focused on culture.  Sir Win Bischoff previously discussed the issue of corporate culture at a conference in March 2016.

Speaking at the Deloitte Forum, Sir Win Bischoff commented that “Nobody is in a position to develop a better feel for the culture of an organisation than its auditor.” He further stated that despite this not being a specifically prescribed duty for the auditor, it nevertheless “is a responsibility you may well agree you have towards investors.”

The full text of the speech can be obtained from the FRC’s website. 

Changes to the work plan include:

Major projects

• No changes made to major projects.

Im­ple­men­ta­tion projects

• Annual Improvements (2015-2017): Updated to indicate that a decision on the direction of the project is now expected within 3 months; previously it was within 6 months.
• Remeasurement at a Plan Amendment, Curtailment or Settlement / Availability of a Refund of a Surplus from a Defined Benefit Plan: Updated to indicate that a decision on the direction of the project is now expected within 3 months; previously it was within 6 months.
• Draft IFRIC Interpretation — Uncertainty over Income Tax Treatment: Updated to indicate that a decision on the direction of the project is now expected within 3 months; previously it was within 6 months.
• Draft IFRIC In­ter­pre­ta­tion — Foreign Currency Trans­ac­tions and Advance Con­sid­er­a­tion: Updated to indicate that a final interpretation is expected within 6 months; prviously it was after 6 months.

In addition, the work plan makes clear that exposure drafts on the definition of a business and on the remeasurement of previously held interests are to be expected next week since the work plan still states that these will come out in June (which ends next week).

Finally, the IASB has updated the details of the primary financial statements research project indicating that initial research will focus on:

• the structure and content of the statement(s) of financial performance;
• the potential demand for changes to the statement of cash flows and the statement of financial position; and
• the implications of digital reporting for the structure and content of the primary financial statements.

The revised IASB work plan is available on the IASB's website.