The report was commissioned and funded by the UK Department of the Environment, Food and Rural Affairs (DEFRA). The report is part of DEFRA's research into the contribution that greenhouse gas reporting makes to the UK achieving its climate change objectives. The report presents the results of an investigation into how financial institutions take account of environmental considerations in making investment decisions.

The report recommends reporting policies should be introduced requiring, at the minimum:

• Companies to disclose their carbon emissions strategies and management programmes
• Relevant information disclosures to be audited in the same way as are company financial reports
• Financial institutions of all types to disclose the adjudged effect of taking environmental considerations into account on portfolio risk levels.

The Climate Disclosure Standards Board (CDSB) was formed at the 2007 annual meeting of the World Economic Forum in response to increasing demands for standardised reporting guidelines on the inclusion of climate change information in mainstream reports. One of the responses the CDSB intends is to develop its existing Climate Change Reporting Framework to further align with accounting models with which organisations and investors are already familiar. As quoted in the paper "It is difficult to comprehend something that is not in companies' accounting models".

Click for:

• CDSB press release (link to CDSB website)
• Our sustainability reporting page.

• IFRSs as the Global Standard: Setting a Strategy for the Foundation's Second Decade (link to IASB website, PDF 309k)

The Economics of Ecosystems and Biodiversity study (TEEB) introduced the concept of ecosystem valuation as a practical and influential aid to decision-making (see our earlier story). Going forward, ecosystem valuation is expected to be more consistently incorporated into public policies, regulations, and political decisions. Ecosystem values are also expected to be increasingly considered by the finance sector and business-to-business customers as they assess the biodiversity and ecosystem-related risks and opportunities of investments and supply chains.

The CEV Guide to Corporate Ecosystem Valuation is designed to "operationalise" TEEB's key messages and recommendations by providing a practical approach for their effective application at the company level.

The International Integrated Reporting Committee (IIRC) is working towards presenting an integrated reporting proposal to the G20 later in 2011 and the work of TEEB and the WBCSD may complement the proposals presented.

Click for:

• WBCSD press release (link to WBCSD website)
• Our earlier story on the TEEB report
• Our sustainability reporting page.

During the global economic crisis, capital market participants questioned the necessity and usefulness of assessing the transferor's ability criterion when determining whether a repo should be accounted for as a sale or as a secured borrowing. It is also not a consideration under international accounting standards (IAS 39 Financial Instruments: Recognition and Measurement forbids the derecognition of these financial instruments in most cases). The Board concluded that an entity's assurance of its ability to perform in accordance with its contractual rights or satisfy its contractual obligations should not be a determining factor as to whether an entity has (or does not have) effective control. The amendments in this Update remove from the assessment of effective control the transferor's ability criterion. It also removes implementation guidance related to that criterion.

Please click for:

• Accounting Standards Update 2011-03 Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements (link to FASB website)
• Heads Up: FASB Amends Guidance on Effective Control in Repurchase Agreements (PDF 95k)

This effectively means that the financial reporting requirements for 'public benefit entities' (PBEs) and 'qualifying entities' (i.e. those entities that apply New Zealand's differential reporting concessions) will effectively be frozen for the short-term.

The ASRB has previously outlined a new accounting framework for New Zealand consisting of two sets of accounting standards for entities required to prepare general purpose financial reports (see our previous story). New Zealand has being considering the possible adoption of International Public Sector Accounting Standards (IPSASs) for some time. It is possible that the ASRB may propose standards based on IPSASs for public benefit entities under the new arrangements.

Wednesday, 27 April 2011

• Insurance Contracts (IASB/FASB joint meeting)
  • Eligibility requirements
  • Discounting of the pre claims obligation
  • Treatment of acquisition costs
  • Premium allocation patterns and onerous contract test

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

The exposure draft proposes to extend the existing requirements of IES 6, which currently prescribes the requirements for a final assessment of a candidate's professional capabilities and competence before qualification. The proposals address elements that are considered essential to assessing professional competence over the career of a professional accountant.

Comments on the exposure draft close on 28 July 2011. Click for the IAESB announcement (link to IFAC website).

The paper provides background on issues affecting the development of a conceptual framework for public sector entities and standard setting. In particular, it highlights that public sector entities are likely to depend upon taxation rather than commercially generated profits for their continued existence, and have governance arrangements that generally involve a legislative body holding an executive to account.

Comments on the exposure draft close on 31 August 2011. Click for the IPSASB announcement (link to IFAC website).

The summaries have been prepared in order to stimulate the discussions at EFRAG's outreach events, organised in co-operation with National Standard Setters throughout Europe. The purpose has been to enable participants assessing whether raised concerns with the Revenue Recognition and Leases projects have been resolved.

In addition, the documents can be helpful to everyone in Europe who wishes to assess whether, at this stage of the IASB re-deliberations, concerns have been appropriately addressed and new issues have not arisen.

Please click for further information on the EFRAG website:

• Summary of revenue recognition re-deliberations to date (PDF 254k)
• Summary of leases re-deliberations to date (PDF 144k)
• Overview of dates and places for the EFRAG and NSS outreach events

The proposed ISAE 3000 is a principles-based standard that is designed to be applied effectively to a broad range of assurance engagements. Such engagements may range from assurance on statements about the effectiveness of internal control, for example, to direct engagements such as performance or 'value for money' audits, to possible future engagements addressing integrated reporting or corporate social responsibility reporting.

Comments on the exposure draft close on 1 September 2011. Click for the IAASB announcement (link to IFAC website).