The report summarises the use of IFRS around the world and includes audited financial statements and a comprehensive breakdown of the financial support received by the IFRS Foundation during 2013.

In his "Report of the Chairman of the IFRS Foundation Trustees" Michel Prada describes the challenges of "how best to support developed and emerging economies alike at whatever point they are on their journey towards IFRS adoption." He discusses the IFRS Foundation's achievements in 2013 and priorities for 2014 and beyond.

Hans Hoogervorst provided a summary of convergence efforts and discussed the IASB's new work plan in his “Report of the Chairman of the IASB”.

The full report — which also contains statements from the Monitoring Board, Due Process Oversight Committee, IFRS Interpretation Committee, and Advisory Council, as well as audited financial statements — is available on the IASB's website.

Note: The IFRS Foundation announced on 6 June 2014 that the financial statements contained in the annual report are also available in XBRL mapped to the IFRS Taxonomy 2014.  The XRBL files are available on the annual reports page on the IASB website.

The objectives of the joint IASB/FASB project on revenue recognition were to:

• remove inconsistences and weaknesses in existing revenue recognition standards by providing clear principles for revenue recognition in a robust framework;
• provide a single revenue recognition model which will improve comparability over a range of industries, companies and geographical boundaries; and
• simplify the preparation of financial statements by reducing the number of requirements to which preparers must refer.

IFRS 15 will be published at the same time as the corresponding FASB Accounting Standards Update Revenue from Contracts with Customers. Please click for the press release on the IASB website.

In her speech, Ms White provided a brief history of IFRS in the Unites States, including permitting foreign private issuers to report using IFRS without a reconciliation to U.S. GAAP, and the 2012 SEC staff report about the possible incorporation of IFRS into the US financial reporting system.

In referencing speeches by previous SEC Chair Mary Schapiro and SEC Commissioner Elisse Walter, Ms White noted expressed sentiments about the importance of converged accounting standards in global capital markets, but also noted the following:

They also said three other important things: first, the interests of U.S. investors would remain front and center as the Commission considers IFRS; second, the FASB would remain front and center as the ultimate standard setter of accounting standards for U.S. companies; and third, the role the United States plays in the development of global standards must be an important consideration.

Whilst strongly agreeing with these sentiments, Ms White acknowledged increasing pressure from the SEC's international regulatory and accounting counterparts and others for more information about the SEC's intentions on the incorporation of IFRS into US domestic capital markets, saying:

The Commission last spoke on these questions in February 2010 when it said that: “…a single set of high-quality globally accepted accounting standards will benefit U.S. investors and that this goal is consistent with our mission…” That remains true today and I have made it a priority for the Commission to position itself to make a further statement on this very important subject, now that we have six years of experience working on the priority convergence projects with the IASB and over six years of experience with foreign private issuers filing IFRS-prepared financial statements without a U.S. GAAP reconciliation.

Ms White also focused on the importance of accounting standards in financial reporting and the work of the FASB. In discussing the convergence process with the International Accounting Standards Board (IASB), Ms White noted the imminent release of new standards on revenue recognition, and that the joint project "on one of our most fundamental and critical standards is a true success for both FASB and the IASB".

In a wide-ranging speech, Ms White also discussed the importance of the enforcement of accounting standards, the SEC's rule making priorities, and the SEC's disclosure effectiveness project which is "intended to make sure that investors are being well-served by the disclosures they receive" and that the SEC "will work with the FASB to identify ways to improve the effectiveness of disclosures in corporate financial statements and to minimize duplication with other existing disclosure requirements".

The full transcript of the speech can be found on the SEC's website.

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

TUESDAY, 13 MAY 2014

Finalisation of tentative agenda decisions

• IFRS 3 & IFRS 10 – Identification of the acquirer in accordance with IFRS 3 and the parent in accordance with IFRS 10 in a stapling arrangement
• IAS 19 – Employee benefit plans with a guaranteed return on contributions or notional contributions
• IAS 32 – Classification of an instrument that is mandatorily convertible into a variable number of shares, subject to a cap and a floor
• IAS 16 – Disclosure of carrying amount information for assets stated at revalued amounts
• IAS 1 – Issues related to the application of IAS 1

Finalisation of tentative agenda decisions

• IFRIC 14 – Availability of refunds from a defined benefit plan managed by an independent trustee
• IAS 19 – Remeasurement at a plan amendment or curtailment

WEDNESDAY, 14 MAY 2014

Items for continuing consideration

• Annual improvements (2012–2014 cycle)
  • IFRS 5 – Changes in methods of disposal
  • IFRS 7 – Servicing contracts
  • IFRS 7 – Applicability of the amendments to IFRS 7 on offsetting disclosures to condensed interim financial statements
  • IAS 19 – Discount rate: regional market issue
  • IAS 34 – Disclosure of information 'elsewhere in the interim financial report'

Click here to go to the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

The Commission’s communication with the assessment of the reform and the accompanying staff working document present the individual and overall impact of these measures, including interactions between different reforms. Accounting is in particular dealt with in chapter 4.7.4 Enhancing accounting standards of the working document.

Both documents are available on the European Commission website:

• Communication of the Commission 
• Accompanying working document

FEE is one of the first respondents to the RFI published in January 2014 that contained technical questions regarding eight areas of which two are given special prominence in FEE's comment letter. Judging from publicly observable sessions at national and regional standard-setters, these issue cause the most discussion generally.

FEE agrees that one of the key issues to be addressed as part of the post-implementation review is whether the differentiated treatment for acquisitions of assets as opposed to acquisitions of business is justified. In this context, FEE points out that under certain circumstances and in certain industry sectors distinguishing between assets and businesses might pose significant practical difficulties. FEE therefore believes that the IASB needs to provide a clearer definition of a business.

Regarding the topic of an annual impairment review of goodwill and indefinite-life intangible assets, as opposed to amortisation, FEE admits that it originally supported the requirement when it was introduced into IFRS 3 Business combinations. However, FEE states that since the implementation of that requirement significant issues arising from the practical application of annual impairment reviews have become obvious. At the same time, FEE points out that there are also problems with the amortisation approach that the introduction of the annual impairment review was originally intended to address. Therefore, some FEE members still support the requirement as the "least-worst" option while others favour amortisation of goodwill. According to FEE, this split of opinions shows "that there is a need for the IASB to further research the comparative merits of both the impairment only and amortisation approaches".

Please click for access to the full comment letter on the FEE website.

Main topics of the discussion will be:

• Taking stock on EPSAS developments
• Experiences from the development of the IPSAS conceptual framework
• Panel debate on "Assessing the need for a European conceptual framework and ways of developing it"

The roundtable is free of charge but the number of participants is limited. Please click for more information on the FEE website.

Mr Beswick was named acting chief accountant in the SEC's Office of the Chief Accountant in July 2012 after James L. Kroeker left. He was named to the position permanently in December 2012.

Mr Beswick served as staff director of the multi-year effort to help the Commission evaluate the implications of incorporating IFRSs into the financial reporting system for US companies and the beginning of his term saw the publication of the SEC final staff report Work Plan for the Consideration of Incorporating IFRSs into the Financial Reporting System for U.S. Issuers on 13 July 2012. However, since then the SEC has not announced any further steps in this regard.

The SEC has not yet named Mr Beswick's successor.

Please click for the press release on the SEC website.

The updated agenda also reflects that the meeting on Thursday will end 15 minutes earlier. We have updated our agenda for the meeting accordingly.