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EFRAG publishes endorsement advice and effects study reports

06 Apr 2012

The European Financial Reporting Advisory Group (EFRAG) has submitted to the European Commission its Endorsement Advice Letters and Effects Study Reports on IFRS 10, IFRS 11, IFRS 12, IAS 27 (2011), IAS 28 (2011), and amendments to IAS 32 and IFRS 7.

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Links to the endorsement letters are provided in the press releases.

EFRAG has updated its endorsement status update accordingly.

Discussions at the joint IASB-ASBJ meeting

05 Apr 2012

Representatives of the International Accounting Standards Board (IASB) and the Accounting Standards Board of Japan (ASBJ) held their fifteenth biannual meeting in Tokyo on 2 April 2012.

IASB and ASBJ discussed the following topics:

  • IFRS - US GAAP convergence,
  • the IASB Agenda Consultation 2011,
  • the ongoing review of the IFRS Interpretations Committee, being conducted by the Trustees, and
  • opportunities for closer co-operation between the IASB and national accounting standard-setters, including the future relationship between the IASB and the ASBJ.

The IASB has posted to its website a press release with a summary of the discussions.

Sir David Tweedie to become president of ICAS

05 Apr 2012

Sir David Tweedie, former chairman of the UK Accounting Standards Board and IASB, will begin a one-year term as president of The Institute of Chartered Accountants of Scotland (ICAS) on 20 April 2012.

Sir David will continue his work to improve financial reporting with the ICAS. He has noted the need for increased transparency and clearer communication to restore confidence and trust in business and in the accounting profession. Sir David also noted that there is a need for principle-based accounting standards and a focus on the tone at the top, stating the following:

Under today's spotlight that tone at the top needs to be even more visibly evident; with values and integrity literally dripping through an organisation. Organisations and individuals that push ethical considerations to the heart of their strategies will stand a better chance of sustaining success over the long term.

Click for press release (link to ICAS website).

Australian research report sheds light on sustainability reporting

05 Apr 2012

The Australian Centre for Corporate Social Responsibility (ACCSR) has released a research report on how stakeholders read sustainability reports, how they use them, how this affects an organisation’s reputation, and what causes stakeholders concern.

The report, The state of CSR in Australia: Stakeholders as readers of sustainability reports, was presented at the Australian Global Reporting Initiative (GRI) Conference on Sustainability and Integrated Reporting held in Melbourne on 26-28 March 2012.

The data collected from 16 research projects conducted by ACCSR between 2006 and 2011, relating to stakeholder perceptions of sustainability reports, was analysed to produce the report.

Some of the findings of the research include:

  • A balanced report helps develop trust with stakeholders. Reporting both positive and negative, challenges and achievements, makes stakeholders more likely to see a sustainability report as a credible source of information
  • In terms of engagement with the report, contractors, suppliers and financial stakeholders are most likely to completely read a sustainability report
  • Stakeholders are more likely to use sustainability reports to understand an organisation's sustainability approach rather than sustainability performance
  • The greatest 'reputational uplift' from sustainability reports is gained when stakeholders learn something new about an organisation - producing a sustainability report provides the potential to improve reputation with minimal risk.

Click for access to the ACCSR report (free registration required).

Chairman Hans Hoogervorst discusses IASB's future agenda

04 Apr 2012

On 4 April 2012, IASB Chairman Hans Hoogervorst addressed the KASB/Korea Accounting Institute Seminar in Seoul, Korea. In his speech, he focused on the IASB's agenda consultation.

Mr Hoogervorst noted that most of the convergence work with the US Financial Accounting Standards Board is complete. Currently, there are four remaining convergence projects (leases, revenue recognition, financial instruments, and insurance). The chairman is hopeful that the SEC will make a timely decision about the U.S. adopting IFRSs, which will help expedite the completion of the  remaining convergence projects.

One of the most common items from the feedback received during meetings, round-table discussions, and other events was a request for a period of stability. Mr Hoogervorst noted that the IASB's future work programme would focus on 'fixing what needs fixing, and no more', including:

  • completing revisions to the conceptual framework
  • ensuring disclosure requirements are appropriate
  • deciding what to do with other comprehensive income
  • work on smaller projects, such as agriculture, business combinations under common control, hyperinflation and rate-regulated industries.

The chairman commented that the IASB has introduced a new research phase to the work programme. The research phase would be designed to gather preliminary views from within the IASB and other standard-setting groups before it is considered for the IASB’s work programme. Mr Hoogervorst emphasised working with other accounting standard-setting bodies to do research and report back their findings to the IASB, conducting much of the discussion paper phase of the IASB's standard-setting work.  Mr Hoogervorst noted this should enable the IASB to understand national and industry perspectives earlier in the standard setting process.

Further, Mr Hoogervorst remarked:

The introduction of a research phase to our work stream, delivered by other accounting standard-setting bodies within the parameters set by the IASB, is an excellent example of our desire to formalise and strengthen our relationships with other organisations such as the KASB.

Click for speech transcript (link to IASB website).

Agenda from recent IFASS meeting

04 Apr 2012

The International Forum of Accounting Standard Setters (IFASS), previously known as the National Standard Setters (NSS), met recently in Kuala Lumpur, Malaysia. Whilst a report from the meeting is not expected for a number of weeks, there was a wide range of important topics discussed at the meeting.

The matters discussed at the meeting, held on 29-30 March 2012, were as follows:

Thursday, 29 March 2012 (8:30-17:30)

  • Chairman's welcome and introduction
  • IASB workplan and IFRS Foundation developments
  • Reports from regional groups:
    • Asian-Oceanian Standard-Setters Group (AOSSG)
    • European Financial Reporting Advisory Group (EFRAG)
    • Group of Latin American Accounting Standard Setters (GLASS)
    • Pan-African Federation of Accountants (PAFA)
  • IASB Agenda consultation
  • Model for National Standard Setters
  • Report on US developments regarding US GAAP and IFRSs
  • Topical issues
    • Report-back on the paper on income taxes
    • Report-back on the paper on business combinations under common control
    • Development costs (comparability among entities relating to recognition of internally generated intangible assets in the development phase under IAS 38)
    • IAS 32 effect on accounting for foreign currency convertible bonds
    • Accounting standards for small (or micro) -sized entities in different jurisdictions
  • Administrative matters (in camera)

Friday, 30 March 2012 (8:30-16:30)

  • Statement of Best Practice
  • IASB post-implementation reviews
  • Effect analysis
  • Public sector conceptual framework
  • Unit of account
  • Topical issues
    • Subsequent measurement of goodwill: impairment of consumption
    • The Financial Reporting Council's Sharman Enquiry regarding the going concern concept
    • Presentation of operating income in the context of comprehensive income

We have posted the above agenda for the meeting with the kind permission of the IFASS secretariat.

With the IASB beginning to focus on its post-convergence agenda and governance, the role and importance of regional and jurisdictional standard-setters going forward is a key challenge for the IFRS Foundation.  Hans Hoogervorst (IASB Chairman) commented recently about the "need for the IASB to strengthen and formalise its relationships with standard-setters, regulators and the accounting profession".

IFRS XBRL taxonomy in Spanish

03 Apr 2012

The IFRS Foundation has published a Spanish translation of the IFRS (International Financial Reporting Standards) Taxonomy 2011.

The taxonomy is an official IFRS Foundation translation of the complete 2011 taxonomy label linkbases into spanish, created using official terminology.

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UK FRC appoints Richard Fleck as Chairman of FRRP

03 Apr 2012

The Financial Reporting Council (FRC) announces that Richard Fleck will serve as Chairman of the Financial Reporting Review Panel (FRRP).

Mr. Fleck is succeeding Bill Knight who retired on 31 March after eight years as chairman.

Click for FRC press release (link to FRC website).

IFRS for SMEs Updates

03 Apr 2012

The IASB has issued a revised IFRS for SMEs guide and announced the adoption of IFRS for SMEs in Samoa and Ecuador.

The revised Guide to the IFRS for SMEs booklet is designed to provide a briefing of IFRS for SMEs for lenders, creditors, and other interested parties.

In the recent edition of IFRS for SMEs Update newsletter, the staff announced the adoptions of the IFRS for SMEs in Samoa and Ecuador. In Samoa, all non-publicly accountable entities will begin using IFRS for SMEs for financial reporting periods ending on or after 30 June 2012. In Ecuador, IFRS for SMEs is effective for all non-publicly accountable entities for years ending on or after 31 December 2012.

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Agenda for April 2012 IFRS Foundation Trustees meeting

03 Apr 2012

The IFRS Foundation Trustees will meet at the Crowne Plaza in London on 13 April 2012.

The agenda was publicly released on 2 April 2012 and is available here.

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