March

IFRS XBRL taxonomy for 2014 is available

05 Mar 2014

The IFRS Foundation has published the IFRS Taxonomy 2014. The IFRS Taxonomy is a translation of IFRSs (International Financial Reporting Standards) into XBRL (eXtensible Business Reporting Language).

The 2014 taxonomy is consistent with IFRSs as issued by the IASB at 1 January 2014 and IFRS for Small and Medium-sized Entities as issued on 9 July 2009. The IFRS Taxonomy 2014 consolidates the two IFRS Taxonomy Proposed Interim Releases issued September 2013 and January 2014.

Please note that the IFRS Taxonomy 2014 follows a different architecture to the IFRS Taxonomy 2013, with separated modules for full Standards, IFRS for SMEs and IFRS Practice Statement Management Commentary.

Click here to access the IFRS Taxonomy files and accompanying materials on the IFRS Foundation's website.

EFRAG, EFFAS/ABAF, and IASB announce macro hedging outreach event

04 Mar 2014

The European Financial Reporting Advisory Group (EFRAG), the European Federation of Financial Analysts Societies (EFFAS) and the Association Belge des Analystes Financiers (ABAF), and the International Accounting Standards Board (IASB) have announced the second in their series of joint outreach events will be held on 7 July 2014 to discuss how macro hedging can improve analysis of banks and insurers.

This second outreach event will (1) provide an explanation of macro hedging from banking and insurance industry representatives, (2) analyse real examples, (3) discuss the IASB’s proposals, and (4) provide the EFRAG’s current position. Registration for this event is requested by 30 June 2014.

The first outreach event will be held on 1 April 2014 to discuss the post-implementation review of IFRS 3.

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

Canadian 'Starter's Guide to Sustainability Reporting'

04 Mar 2014

Chartered Professional Accountants of Canada (CPA Canada) has published a guide designed to be a starting point for new or early-stage sustainability reporters. The focus of the guide is to provide a roadmap on how to get started on sustainability reporting, the reporting choices available, the process and resources involved, as well as the relevant tools and guidance available.

A challenge for many first time and early-stage reporters irrespective of whether they are multi-national corporations or small and medium-sized enterprises (SMEs) is finding a starting point so that they can develop a reporting process. Therefore, the guide offers a roadmap of key steps, related objectives and practical advice to ensure that companies can have a well-managed approach and focus on high-priority topics. The roadmap is structured into eight areas:

  • scope and strategy,
  • governance and accountability,
  • stakeholder inclusiveness,
  • high-priority focus areas,
  • key performance indicators, performance and impact,
  • balance and clarity,
  • credibility, and
  • institutionalisation of sustainability reporting.

The benefits of a phased approach are considered, as a way for companies to avoid over-stretching their resources in the short term, while laying out an achievable plan for meeting their reporting aspirations in the mid-term. The guide also considers reporting beyond the development of a printed report and also includes comments on e.g. online communication and social media.

The guide is available on the CPA Canada website. Earlier in 2014, CPA Canada already released A Primer for Environmental and Social Disclosure.

We comment on IVSC credit and debit valuation ED

03 Mar 2014

We have published our comment letter on the International Valuation Standards Council’s (IVSC) Exposure Draft (ED) ‘Credit and Debit Valuation Adjustments’.

We are concerned that the objective of the fair value measurement of credit risk is not clear. We believe that any guidance issued should state the valuation objective and that this objective should be valuation for financial reporting purposes, whilst acknowledging that valuation for other purposes exist and may result in the application of different valuation approaches. We also are concerned who the primary beneficiary would be. Large financial institutions will have limited use for the guidance in the ED, while, non-financial institutions appear not to be the target of the ED.

Click for the full comment letter.

Agenda for March 2014 Global Preparers Forum meeting

03 Mar 2014

Representatives from the International Accounting Standards Board (IASB) will meet with the Global Preparers Forum (GPF) in London on Tuesday, 11 March 2014. The agenda for the meeting has been released, and includes an overview of the IASB and IFRS Interpretations Committee work plans, and discussion on specific topics including macro hedging, financial instruments impairment, leases, hyperinflation, the post-implementation review of IFRS 3, and the Conceptual Framework.

The full agenda for the meeting is summarised below:

Tuesday, 11 March 2014 (09:00-17:45)

  • IASB work plan update - including updates on revenue recognition, insurance contracts, limited amendments to IFRS 9 and disclosure framework
  • Updates on particular projects
    • Financial instruments - Macro hedge accounting - discussion paper
    • Financial instruments - Impairment - potential differences with US GAAP
  • Leases - focus on simplifying lessee accounting
  • IFRS Interpretations Committee update
  • Post-implementation review - IFRS 3 Business Combinations
  • Accounting in high inflationary or hyperinflationary economies - issues raised in applying IAS 29 Financial Reporting in Hyperinflationary Economies
  • Conceptual Framework
    • Summary of comment letters
    • Role and purpose
    • Case study on rate-regulated activities

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

EFRAG suggests the IASB addresses interests in joint operations structured through separate vehicles

01 Mar 2014

In a letter to the IASB, the EFRAG requests that the IASB review the issues surrounding the accounting for interests in joint operations structured through a separate vehicle in separate financial statements.

Specifically, the guidance in IFRS 11 Joint Arrangements, which requires a joint operator to follow in its separate financial statements the same accounting method as in its consolidated financial statements when accounting for interest in a joint operation structured through a separate vehicle, provides different options than the guidance in IAS 27 Separate Financial Statements, which requires investments in subsidiaries, associates or joint ventures to be accounted for at cost or fair value in the separate financial statements of the investor. These differences have created issues for listed companies that present separate financial statements in accordance with IFRSs.

In Italy, the application of IFRSs is not only required in consolidated financial statements but also in separate financial statements of listed companies and therefore the Italian standard-setter Organismo Italiano di Contabilità (OIC) has brought the issue to the IASB's attention in 2012 and again in 2013. In the letter now submitted to the IASB, EFRAG agrees with the concerns of the OIC and notes that a practical solution to address the issue is for the IASB to amend IAS 27 to allow joint operations, structured through a separate vehicle, to be accounted for in the same way as joint ventures (i.e. at cost or fair value) in the separate financial statements of the joint operator.

For more information, see the press release and the letter to the IASB on the EFRAG website.

Correction list for hyphenation

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