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).

The objective of the meeting is for the SMEIG to discuss public responses to the Request for Information: Comprehensive Review of the IFRS for SMEs published in June 2012 and to develop a list of specific recommendations to the IASB for amendments to the IFRS for SMEs.

The Request for Information adresses to areas of possible improvements:

• Part A contains specific questions on particular sections of the IFRS for SMEs for respondents. These issues have been frequently raised by interested parties. Respondents are also invited to raise any other specific issues they may have relating to possible changes to particular sections of the IFRS for SMEs.
• Part B contains general questions about the IFRS for SMEs. Respondents are invited to raise any other general issues they may have relating to possible changes to the IFRS for SMEs.

The deadline for public responses to the Request for Information is 30 November 2012.

Please click for IASB press release announcing the first meeting of the SMEIG (link to IASB website)