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News

IASB (International Accounting Standards Board) (blue) Image

Updated IASB work plan — Analysis

22 Sep 2017

Following the IASB's September 2017 meeting, we have analysed the IASB work plan to see what changes have resulted from the meeting and other developments in the months of August and September. Changes mostly relate to pronouncements having been published, comment letter deadlines having ended, and clarifications of upcoming dates of issuing prononouncements.

Below is an analysis of all changes made to the work plan since our last analysis on 21 Juli 2017.

Standard-setting projects

  • Conceptual Framework — the revised version of the Conceptual Framework is now expected in the first quarter of 2018 (was: fourth quarter of 2017)
  • Disclosure initiative — Materiality — an ED on the definition of materiality and a practice statement on materiality were issued on 14 September; accordingly, the project on the practice statement was removed from the work plan; the ED is open for comment until 15 January 2018

Maintenance project

Research projects

Other projects

  • IFRS Taxonomy update for IFRS 17 — now expected in December 2017

The above is a faithful comparison of the IASB work plan at 21 July 2017 and at 22 September 2017. For access to the current IASB work plan at any time, please click here.

IASB meeting (blue) Image

September 2017 IASB meeting notes posted

22 Sep 2017

The IASB met at its offices in London on 20 and 21 September 2017. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

On Wednesday 20 September 2017, the meeting began with a continuation of the background sessions designed to help the Board understand dynamic risk management. This session focused on prepayment risk and the concept of capacity (whether an entity has enough hedged items against which derivatives could be designated in a hedging relationship).

The Board discussed three implementation projects:

  • The Board is moving forward with an Exposure Draft to amend IAS 8 to make it easier to apply a change in accounting policy arising from an agenda decision prospectively.
  • The Board decided to finalise its proposed amendments to IAS 19 on plan amendments, curtailment or settlement amendments, but not the proposed amendments to IFRIC 14 in relation to the availability of a refund.
  • The Board decided to complete the 2015-2017 Cycle of its Annual Improvements: IAS 12 the income tax consequences of dividends; IAS 23, when specific borrowing remains outstanding after completion of the asset; and IFRS 3 and IFRS 11 the initial measurement when an entity gets control of a joint operation. The IFRS 3 and IFRS 11 amendments were exposed separately, but will be completed as part of Annual Improvements. The IASB expects to issue the amendments in December 2017.

The day concluded with a continuation of the discussions on rate-regulated activities. This session focused on initial measurement when an entity incurs costs in excess of estimates and the regulatory agreement allows the entity to recover these costs over more than one reporting period by increasing the rate charged. The Board supported taking into account the time value of money when measuring the regulatory asset, but there were mixed views about how to account for an entitlement to earn a return.

On Thursday 21 September 2071, the Board discussed business combinations under common control, for the first time since April 2016. The session was a recap of previous discussions. The Board expressed a preference for keeping the scope of the project narrow. The staff plan to bring papers back to the Board with the goal of developing a Discussion Paper for release in 2018.

The Board was given a brief update on the research programme.

The Board continued its discussions on primary financial statements. The Board decided to give priority to developing an EBIT subtotal over developing a management performance measure—they plan to use the term ‘profit before financing and income tax’ rather than EBIT. The Board also supported introducing an investing category into the statement of financial performance, although it would not be the same as the ‘investing activities’ category in the cash flow statement. The Board did not support the staff proposal that cash and cash equivalents should be used as a proxy for cash and temporary investments of excess cash that form part of capital structure. 

The papers also look at the requirement in IAS 1 to disclose expenses by nature or function.  The Board decided that the choice be retained but that more guidance on how to select the most appropriate method should be provided in the Standard. That guidance would suggest that by nature is likely to provide more useful information when an entity is unable to allocate natural components to functions on a consistent and non-arbitrary basis.

The last agenda item was Conceptual Framework. The current draft has been undergoing a fatal flaw review. In that draft, the Basis for Conclusions alludes to the trade-off between relevance and faithful representation, but the Framework does not have an explicit principle, or any guidance on how to assess any such trade-off. This was identified as a weakness by reviewers. The Board decided that the Framework should acknowledge the trade-off but they will not add any guidance on how to make that trade-off when it sets Standards.

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

IFRS IC (IFRS Interpretations Committee) (blue) Image

IASB publishes some general information on the work of the IFRS Interpretations Committee

22 Sep 2017

The IASB has released a four-minute video as well as a four-page leaflet with information about the mechanisms of the work of the IFRS Interpretations Committee.

Both, the video and the leaflet, are very general in nature. They can be accessed through the press release on the IASB website.

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Updated agenda for the September 2017 ASAF meeting

22 Sep 2017

The International Accounting Standards Board (IASB) has released an updated agenda for the meeting of the Accounting Standards Advisory Forum (ASAF), which is to be held at the IASB's offices in London on 28 September 2017.

The updated agenda for the meeting is sum­marised below:

Thursday, 28 September 2017 (9:35-16:00)

  • Primary financial stements — Alternative performance measures
  • Primary financial stements — Feedback on the FRC discussion paper
  • Rate-regulated activities — the new proposed accounting model
  • Definition of a business — tentative decisions made at the IASB June 2017 meeting
  • Goodwill and impairment — EFRAG discussion paper Goodwill Impairment Test: Can it be improved?
  • Goodwill and impairment — staff proposals to improve the effectiveness measures for the impairment test
  • Project updates and agenda planning

Agenda papers for the meeting are available on the IASB's website.

IASB document (blue) Image

The Annotated IFRS Standards ('Green Book') is now available

21 Sep 2017

The IFRS Foundation has announced that 'The Annotated IFRS Standards (Green Book) July 2017' is now available. This volume (nicknamed the 'Green Book') includes the full text of the Standards and Interpretations and accompanying documents (such as the Basis for Conclusions) issued by the IASB as of 1 July 2017 with extensive cross-references and other annotations. This edition does not contain documents that are being replaced or superseded but remain applicable if a reporting entity chooses not to adopt the newer versions early.

The new re­quire­ments since 1 July 2016 include:

The Green Book sells for £102 plus shipping for the two book set. More in­for­ma­tion and ordering details are available on the IASB's website.

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IASB announces membership of the transition resource group for IFRS 17

21 Sep 2017

The International Accounting Standards Board (IASB) has announced the members of a Transition Resource Group (TRG) that will focus on potential implementation issues associated with their new insurance contracts standard.

The TRG members comprise of auditors and preparers. In addition, there are three observers to the group from international security regulators, insurance supervisors and actuarial organisations. The current mem­ber­ship includes:

  • Vasilka L Bangeova, Grant Thornton UK LLP, Director, head of insurance technical
  • Laurent Cholvy, AXA, Group head of accounting norms and actuarial reporting
  • Jo Clube, Aviva plc, Technical accounting director
  • Anne Driver, QBE Insurance Group, Group head of finance policy and assurance
  • Sai-Cheong Foong, AIA Group Limited, Group chief actuary
  • Jens Freiberg, BDO AG Wirtschaftsprüfungsgesellschaft, Partner, head of accounting advisory group
  • Kevin Griffith, EY, Partner, global IFRS insurance leader
  • Francesco Nagari, Deloitte, Partner, global IFRS insurance leader
  • Jeong Hyeok Park, Samsung Life Insurance, General manager
  • Roman Sauer, Allianz SE, Head of group accounting and reporting
  • Lesley Thomson, Sun Life Financial, Vice president and deputy chief actuary
  • Massimo Tosoni, Assicurazioni Generali SpA, Head of group accounting policy and reporting
  • Mary Helen Trussell, KPMG, Partner and global leader, insurance change
  • Gail Tucker, PricewaterhouseCoopers, Lead global accounting technical partner responsible for insurance
  • Ying (Sally) Wang, China Pacific Life Insurance Co., Ltd, Deputy general manager and chief financial officer

Observers

  • William C. Hines,  International Actuarial Association
  • Thorsten Melcher, International Organization of Securities Commissions
  • Kallol Sen, International Association of Insurance Supervisors

The first TRG meeting is scheduled for 13 November 2017.

For more in­for­ma­tion, see the press release on the IASB website.

Deloitte document (mid gray) Image

We comment on the IASB's post-implementation review of IFRS 13

21 Sep 2017

We have responded to the IASB's Request for Information, “Post-implementation Review — IFRS 13 Fair Value Measurement,” that was published in May 2017.

We believe IFRS 13 has had a positive effect on financial reporting and applaud the IASB and FASB in achieving convergence between IFRS 13 and the US GAAP equivalent. In addition, we note several areas where further guidance would be beneficial and encourage the IFRS Foundation to work with other interested parties to ensure the consistent application of IFRS 13.

Please click to access the full comment letter.

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IPSASB 2017 Handbook of pronouncements available

20 Sep 2017

The International Public Sector Accounting Standards Board (IPSASB) has made available its 2017 Handbook of International Public Sector Accounting Pronouncements.

In two volumes, the Handbook contains all IPSASB pronouncements published as of 31 January 2017, including the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities. It can be downloaded free of charge in PDF format from the IPSASB website. The IPSASB points out that the print edition is currently in production and will be available for online ordering soon.

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IASB posts webcast on IFRS 17

19 Sep 2017

The 30 minute webcast covers the accounting for reinsurance contracts held in applying IFRS 17 'Insurance Contracts'.

The new webcast can be accessed on the IASB website. Earlier webcasts and webinars on IFRS 17 are available through an archive.

Accountancy Europe Image

Accountancy Europe follows up on 'CORE & MORE' and calls for decisive leadership in non-financial reporting

18 Sep 2017

At the 'Shaping the future of corporate reporting' event held today in Brussels, Accountancy Europe launched two publications: a follow-up report on the 2015 paper that put forward the idea of 'CORE & MORE' and a call for action to enhance the coordination of non-financial information initiatives and frameworks.

The Core & More concept introduced in 2015 aims to present corporate reporting in a smarter way, organising financial and non-financial information based on the interests of users. Information relevant for a wide range of stakeholders would be in the Core report, and supplementary details for a more limited audience would form the More reports. The paper presented today develops the concept further and provides ideas on what information could be presented in each of the pillars. It also explores how technology might support the Core & More concept and addresses the relationship between Core & More and integrated reporting. Please click to access the paper Core & More: an opportunity for smarter corporate reporting on the Accountancy Europe website.

The call for action notes that "the overwhelming number of existing disconnected non-financial information reporting frameworks complicates coherent, consistent, and comparable wider corporate reporting, and steadily increases the reporting burden for companies". Accountancy Europa calls on the different standard-setting bodies and initiatives to coordinate their efforts to streamline existing reporting frameworks addressing similar pieces of non-financial information. The organisation believes that the final step in this development should aim at developing a single global framework for non-financial information reporting. (At the very same event IASB Chairman Hans Hoogervorst noted in a speech that the IASB could not and would not take the decisive leadership role Accountancy Europe hints at in the call for action.) Please click to access the Call for action: Enhance the coordination of non-financial information initiatives and frameworks on the Accountancy Europe website.

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