ED/2011/6 is a re-exposure of the IASB and FASB's proposals in ED/2010/6 Revenue from Contracts with Customers (2010 ED).

In general, EFRAG welcomes the changes made to the 2010 ED, and notes that many of its concerns expressed in relation to the 2010 ED have now been solved. However, EFRAG disagrees with the proposals to:

• limit the onerous test to performance obligations satisfied over a period of time greater than one year
• perform the onerous test at a performance obligation level
• offset advances received against contract assets in all circumstances
• only being able to allocate contingent amount to one or all performance obligations within a contract
• require a list of specific disclosure requirements in IAS 34 Interim Financial Reporting
• include only sales-based variable consideration in the special requirements for when to recognise revenue related to licence agreements of intellectual property

The draft comment letter also raises a number of other concerns.

Comments on the letter are invited by 9 March 2012. The draft comment letter can be downloaded via the press release on EFRAG's website.

Click to download the Endorsement Status Report as of 20 January 2012 (PDF 191k).

Currently, the following 14 IASB pronouncements await endorsement action:

• IFRS 9 Financial Instruments
• IFRS 10 Consolidated Financial Statements
• IFRS 11 Joint Arrangements
• IFRS 12 Disclosures of Interests in Other Entities
• IFRS 13 Fair Value Measurement*
• IAS 27 Separate Financial Statements (2011)
• IAS 28 Investments in Associates and Joint Ventures (2011)
• Amendments to IAS 12 Deferred tax: Recovery of Underlying Assets*
• Amendments to IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters*
• Amendments to IAS 1 Presentation of Items of Other Comprehensive Income
• Amendments to IAS 19 Employee Benefits
• Amendments to IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities#
• Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities#
• IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine*

* Indicates EFRAG has issued its final endorsement advice for this pronouncement since the previous report, final steps to endorsement will now proceed.

# Added since previous report

You can always find the endorsement status report here.

The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):

Tuesday 17 January 2012

• Active Committee projects
  • IAS 32 Financial Instruments: Presentation — Put options written over non-controlling interests
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets — Levies charged for participation in a market on a specified date
• Review of Tentative Agenda Decisions published in November IFRIC Update
  • IAS 19 Employee Benefits — Definition of termination benefits
• Items for continuing consideration
  • IFRS 11 Joint Arrangements — Acquisition of interest in joint operation
  • IAS 28 Investments in Associates — Share of other changes in equity
  • IFRIC 12 Service Concession Arrangements — Payments made by an operator in a service concession arrangement
  • IAS 33 Earnings per Share — Calculating EPS with non-cumulative preference dividends

Wednesday 18 January 2011

• Annual improvements — comment letter analysis
  
  • IFRS 1 First-time Adoption of International Financial Reporting Standards — Repeated application of IFRS 1
  • IFRS 1 First-time Adoption of International Financial Reporting Standards — Borrowing costs relating to qualifying assets for which the commencement date for capitalisation is before the date of transition to IFRSs
  • IAS 1 Presentation of Financial Statements — Clarification of the requirements for comparative information
  • IAS 16 Property, Plant and Equipment — Classification of servicing equipment
  • IAS 32 Financial Instruments: Presentation — Tax effect of distribution to holders of equity instruments
  • IAS 34 Interim Financial Reporting — Interim financial reporting and segment information for total assets
• New items for initial consideration
  • IAS 2 Inventories — Long-term prepayments for inventory supply contracts
  • IAS 41 Agriculture — Disclosure of the components of changes in fair value and associates valuation techniques
  • IAS 28 Investments in Associates and SIC 13 Jointly Controlled Entities — Non-Monetary Contributions by Venturers — Definition of the term 'non-monetary asset' in SIC 13 and IAS 28 (2011)
• Administrative session

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

The Update was issued due the current economic uncertainties in numerous countries. The Update aims to provide issues to UK listed companies that may occur when responding to the increasing country and currency risk when filing their annual and semi-annual financial reports. The Update notes the following:

The Update also suggests that additional guidance should be considered, such as the ESMA's statement Sovereign Debt in IFRS Financial Statements (see our earlier story).

Click for:

• FRC report: An Update for Directors of Listed Companies: Responding to increased country and currency risk in financial reports (PDF 761 KB, link to FRC website)

During the meeting, views were exchanged on the work of the trustees and the IASB on establishing IFRSs as the globally accepted set of accounting standards. Also during the discussion, the Singapore representatives expressed the challenges that companies in Singapore face with the implementation of IFRS.

Currently, the Singapore Financial Reporting Standards (SFRSs) are extensively align to IFRSs and the ASC is committed to achieving full convergence.

Click for:

• IFRS Foundation press release (link to IASB website)
• Our Singapore page