News

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GRI publishes sustainability standard for the mining sector

06 Feb, 2024

The Global Reporting Initiative (GRI) has published a new sustainability standard titled 'GRI 14: Mining Sector 2024'. The new standard provides a consistent set of metrics to be used in reporting the impacts of mining entities.

GRI 14 was developed using a multi-stakeholder approach and addresses 25 topics within the mining sector. Among these topics are local impacts and risks, emissions, waste, human rights, land and resource rights, climate change, biodiversity, anti-corruption and community engagement. 

It also introduces three new sustainability topics to the GRI standards that are specific to the mining sector: tailings management, artisanal and small-scale mining, and operating in conflict zones.

According to the press release, GRI 14 will make it easier for entities to produce robust and comparable information to meet their reporting obligations. It applies to all entities that undertake mining or quarrying, except for coal, oil and gas, to which specific GRI sector standards apply.

For more information, including access to GRI 14, please see the press release on the GRI website.

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Webcast introducing the forthcoming IFRS 18

05 Feb, 2024

The IASB has released a ten-minute webcast introducing the forthcoming IFRS 18 'Presentation and Disclosure in the Financial Statements' that is expected to be issued in April 2024 and will be effective for annual reporting periods beginning on or after 1 January 2027.

The new standard responds to investors' demand for better information about companies financial performance and will improve how company information is communicated in the financial statements and thus investors a better basis for analysing a company's performance and making their investment decisions.

Please click to access the webcast on the IFRS Foundation website.

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FRC publishes research report on barriers to competition in UK audit market

02 Feb, 2024

The Financial Reporting Council (FRC) has published a summary of key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.

The research was undertaken in support of the FRC's strategic objective to create a more resilient audit market through greater competition and choice and sought to enhance understanding of entry, growth and exit of firms in the Public Interest Entity (PIE) and non-PIE audit markets by obtaining the views of smaller audit firms and non-audit firms.

The report highlights several obstacles for smaller firms to expand their presence including capacity constraints, recruitment and retention challenges and regulatory requirements.  This was especially true for PIE audits.

The FRC highlights that in order to promote greater competition and choice in the audit market, it is important that there is a collaborative, cross-system approach involving the regulator, audit firms, professional accounting bodies, and the government.

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

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EFRAG launches survey on IASB FICE ED

02 Feb, 2024

The European Financial Reporting Advisory Group (EFRAG) has launched an online survey to seek views on the IASB ED/2023/5 'Financial Instruments with Characteristics of Equity (Proposed amendments to IAS 32, IFRS 7 and IAS 1)'.

​EFRAG is seeking views on the classification, presentation, disclosures and transition requirements proposed by the IASB in the exposure draft.

The primary purpose of the survey is a qualitative assessment of the impact of the IASB proposals including any potential implementation and application concerns. However, should participants be ready to share any quantitative information, especially in the most material areas, such contributions would also be appreciated.  

Participation in the survey is encouraged by 8 March 2024.

Please click for more information and access to the survey on the EFRAG website.

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FRC publishes its thematic review of reporting by the UK’s largest private companies

02 Feb, 2024

The Financial Reporting Council (FRC) has published the results of its thematic review which looked at the quality of corporate reporting based on the annual report and accounts of 20 of the UK’s largest private companies across a range of industries with year ends falling between September 2022 and December 2022.

The review focused on those areas of the annual report and accounts which are of most importance to users and where it has frequently identified issues when performing reviews of listed companies as reported in its latest Annual Review of Corporate Reporting.

The FRC found that reporting was ‘mixed’ particularly where companies explained material matters that were complex or judgemental.  The FRC indicates that many of the issues identified could have been avoided if a sufficiently critical review of the annual report and accounts had been conducted prior to finalisation.

Companies are encouraged to consider the findings and expectations in the thematic review when drafting their forthcoming annual reports and accounts.  The FRC expects companies to focus their efforts on disclosure of the most significant, complex or judgmental matters.  Specifically, the FRC expects companies to:

  • provide a strategic report that contains a balanced analysis focused on those elements of development, performance and position that are key for an understanding of the company.
  • explain how the company or subgroup fits into a wider group structure to allow a user to understand fully the context in which it operates.
  • tailor accounting policies for transactions and balances that are complex or judgemental and keep policies under review to ensure that they remain complete, relevant and accurate.
  • disclose revenue policies explaining the nature of each significant revenue stream, when it is recognised and how its value is determined.
  • provide specific details of judgements taken and clearly explain the rationale for the conclusion reached.
  • clearly distinguish which estimates have a significant risk of material adjustment to the carrying amount of assets and liabilities in the next financial year. In addition, companies should provide additional quantitative detail where it is necessary for an understanding of the significance of the estimate.
  • disclose clearly the nature of the obligation giving rise to a provision and the associated uncertainty in timing or amount for significant provisions.
  • explain the nature of each significant financial instrument risk within the company. Where necessary for an understanding of the exposure, this should include quantification and provide information on the sensitivity to potential future changes.
  • conduct a critical review of the annual report and accounts prior to finalisation. This includes considering whether the report as a whole is clear, concise and understandable, as well as checking for internal consistency and more detailed presentation and disclosure matters.

A press release and the full report are available on the FRC website.

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IVSC publishes updated version of IVS

02 Feb, 2024

The International Valuation Standards Council (IVSC) has issued an updated version of the suite of International Valuation Standards (IVSs). They become effective from 31 January 2025.

The 2024 version includes new chapters on data and inputs, documentation, and financial instruments. The general standards section has also been reordered to more accurately reflect the modern valuation process, as well as the many participants involved in the preparation, review and use of valuations. An expanded consideration of ESG factors in valuations, including a dedicated appendix, is also included.

More information is available through the press release on the IVSC website.

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IPSASB publishes exposure drafts on natural resources

01 Feb, 2024

As part of its broader natural resources project, the International Public Sector Accounting Standards Board (IPSASB) has released two exposure drafts on mineral resources.

To address the gap in the IPSAS literature on accounting for natural resources, the IPSASB issued a consultation paper in May 2022 and the IPSASB continues to develop principles for the recognition and measurement of natural resources, with the targeted publication of an exposure draft in the second half of 2024. However, following feedback received on the consultation paper concerning the lack of guidance on specific activities related to mineral resources, this is being addressed first with the release of two exposure drafts for public comment:

  • ED 86 Exploration for and Evaluation of Mineral Resources proposes a standard on accounting for the costs incurred in the exploration and evaluation of mineral resources, based on the selection of an accounting policy specifying which expenditure should be recognised as exploration and evaluation assets. ED 86 is aligned with the private sector requirements in IFRS 6 Exploration for and Evaluation of Mineral Resources with limited changes for the public sector context.
  • ED 87 Stripping costs in the Production Phase of a Surface Mine (Amendments to IPSAS 12) proposes adding an authoritative appendix to IPSAS 12 Inventories. The proposed guidance clarifies when to capitalise or expense costs incurred to remove waste material in surface mining operations. ED 87 is aligned with the guidance in IFRIC 20 Stripping costs in the Production Phase of a Surface Mine with limited changes for the public sector context.

Comments on the exposure drafts are requested by 31 May 2024. Please click for additional information and access to the drafts in the press release on the IPSASB website.

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January 2024 IASB meeting notes posted

31 Jan, 2024

The IASB met in London on 22-23 and 25 January. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed for both meetings:

Power purchase agreements: The IASB discussed the staff’s preliminary views on how to address accounting issues related to power purchase agreements. No decisions were made.

Post-implementation review (PIR) of IFRS 15 Revenue from Contracts with Customers: The IASB discussed the feedback received in response to the request for information on the PIR of IFRS 15 and a plan for the next phase of the project. The IASB expects to finalise its decisions by the third quarter of 2024.

Maintenance and consistent application: The IASB did not object to the finalisation of an agenda decision published by the IFRS Interpretations Committee. In addition, the staff presented the most recent IFRIC Update.

Amendments to the classification and measurement of financial instruments: The IASB decided to finalise proposals in the exposure draft Amendments to the Classification and Measurement of Financial Instruments with regard to the assessment of contractual cash flows, financial assets with non-recourse features and contractually linked instruments.

IFRS accounting taxonomy update—amendments to IAS 12, IAS 21, IAS 7 and IFRS 7: The IASB discussed the feedback received on the proposed IFRS taxonomy update International Tax Reform—Pillar Two Model Rules, Supplier Finance Arrangements and Lack of Exchangeability. No decisions were made.

Second comprehensive review of the IFRS for SMEs accounting standard: The IASB continued its redeliberations on the proposals in the exposure draft Third edition of the IFRS for SMEs Accounting Standard. The IASB made decisions with regard to liabilities arising from financing activities, bearer plants, impairment of financial assets and leases.

Disclosure initiative—subsidiaries without public accountability: disclosures: The IASB made decisions on sweep issues with regard to some more judgemental changes to the disclosure requirements proposed in the exposure draft Subsidiaries without Public Accountability: Disclosures resulting from implementing the modified approach discussed in previous meetings.

Updating the Subsidiaries without Public Accountability: Disclosures standard: The IASB decided to propose disclosure requirements in a catch-up exposure draft following the publication of the forthcoming IFRS accounting standard Subsidiaries without Public Accountability: Disclosures. These disclosures relate to supplier finance arrangements, international tax reform—pillar two model rules and lack of exchangeability.

Feedback on ISSB consultation on agenda priorities (joint session with the ISSB): The boards discussed the feedback received in response to the ISSB’s request for information (RFI) Consultation on Agenda Priorities related to integrated reporting and connectivity to help decide which next steps should be taken by the IASB and ISSB respectively. No decisions were made. As a next step, the IASB will discuss the direction of the management commentary project while the ISSB will continue to discuss feedback on the RFI and make decisions based on that feedback.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

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Podcast on Q4 2023 IFRS Interpretations Committee developments

31 Jan, 2024

The IASB has issued a podcast on the developments of the IFRS Interpretations Committee during the fourth quarter of 2023.

The podcast is hosted by IFRS Interpretations Committee Chair and IASB member Bruce Mackenzie. Topics discussed include climate-related commitments in IAS 37 and disclosure of revenues and expenses for reportable segments in IFRS 8.

For more information, see the press release on the IFRS Foundation’s website.

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ISSB issues January 2024 podcast

30 Jan, 2024

The IFRS Foundation has released a podcast hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd discussing the latest developments from the ISSB.

The podcast looks ahead to the ISSB’s three priorities for 2024:

  • Supporting the implementation of the ISSB Standards;
  • Working with jurisdictions on their adoption roadmaps; and
  • Finalising the ISSB’s two-year work plan.

It also discusses recent progress on technical work, including the discussion at the January 2024 joint IASB-ISSB meeting, for which a dedicated podcast has been released.

For more information and access to the podcast, please see the press release on the IFRS Foundation website.

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