October

EFRAG draft comment letter on the IASB's Discussion Paper on rate regulation

27 Oct 2014

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB Discussion Paper (DP) soliciting feedback from constituents whether, and under which circumstances, financial effects arising from rate regulation should be accommodated in financial reporting.

EFRAG welcomes the publication of DP/2014/2 Reporting the Financial Effects of Rate Regulation and supports the IASB's decision to initially examine a generic type of rate regulation called 'defined rate regulation'. However, EFRAG stresses that the DP can only represent a starting point in the discussion:

As the project progresses, we believe the IASB will need to consider in which circumstances an entity's right to recover an agreed amount of revenue and obligations to perform certain activities creates enforceable rights and obligations that should be recognised in financial statements.

EFRAG also believes that the IASB may need to consider whether it should widen the scope of a potential future standard to require disclosures of the effects of rate regulation other than those where assets and liabilities are recognised.

EFRAG generally supports the accounting approach of developing specific IFRS accounting requirements to defer or accelerate the recognition of a combination of costs and revenue but "remains open" to a 'cost deferral approach' should further work of the IASB show that it might produce relevant information.

Comments on the draft comment letter are due by 31 December 2014. It is available on the EFRAG website.

 

October 2014 IASB meeting notes — Part 1

26 Oct 2014

The International Accounting Standards Board (IASB) met at its offices in London on 22–24 October 2014. We have posted the Deloitte observer notes from Wednesday's morning sessions on the research programme, the disclosure initiative, and the IFRIC Update.

Click through for direct access to the notes:

Wednesday, 22 October 2014

You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

Updated EFRAG endorsement status report for draft endorsement advice letter on annual improvements 2012-2014

24 Oct 2014

The European Financial Reporting Advisory Group (EFRAG) has updated its Endorsement Status Report to include its draft endorsement advice letter on 'Annual Improvements to IFRSs 2012–2014 Cycle'.

The amendments were issued in September 2014 and affect IFRS 5 Non-current Assets Held for Sale and Discontinued OperationsIFRS 7 Financial Instruments: Disclosures, IAS 19 Employee Benefits, and IAS 34 Interim Financial Reporting. Endorsement of the amendments is currently expected in the third quarter of 2015.

The endorsement status report, dated 24 October 2014, is available here.

Summary of joint outreach event on macro hedging

23 Oct 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 made available a summary of the discussions held during their outreach event held on 7 July 2014, which discussed the proposals and the potential impact of the IASB’s Discussion Paper ‘Accounting For Dynamic Risk Management: A Portfolio Revaluation Approach’.

The topics discussed at the meeting included:

  • A view of current practices in the banking and insurance industries and from analysts on how the information is understood and used.
  • Initial thoughts from IASB member Martin Edelmann and EFRAG Chairman Françoise Flores concerning the discussion paper.
  • Initial thoughts from attendees on the DP and the view given by the EFRAG.

For more information, see the press release and report on the EFRAG's website.

Updated EFRAG endorsement status report for draft endorsement advice letter on amendments to IAS 27

23 Oct 2014

The European Financial Reporting Advisory Group (EFRAG) has updated its Endorsement Status Report to include its draft endorsement advice letter on 'Equity Method in Separate Financial Statements (Amendments to IAS 27)'.

The amendments were issued in August 2014 and reinstate the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial statements. Endorsement of the amendments is currently expected in the third quarter of 2015.

The endorsement status report, dated 23 October 2014, is available here.

Agenda for November 2014 Global Preparers Forum meeting

23 Oct 2014

Representatives from the International Accounting Standards Board (IASB) will meet with the Global Preparers Forum (GPF) in London on Thursday, 6 November 2014. The agenda for the meeting has been released, which includes updates from the IASB and IFRS Interpretations Committee, together with discussion on specific topics including research activities, emissions trading schemes, equity method of accounting and the disclosure initiative.

The full agenda for the meeting is summarised below:

Thursday, 6 November 2014 (10:00-17:00)

  • IASB update - including the Joint Revenue Transition Resource Group and an update on the leases project
  • IFRS Interpretations Committee update - including discussion on:
    • Foreign currency translation of revenue for goods/services delivered over time
    • Foreign exchange restrictions in hyperinflationary economies
    • Post-implementation review - IFRS 3 Business Combinations
  • Research activities - plans going forward
  • Emissions trading schemes - key issues to resolve
  • Equity method of accounting - practical difficulties in application
  • Disclosure initiative
    • Update on developments
    • Cohesiveness principle
    • Disclosure of cash flow information.

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

Agenda for the Joint Transition Resource Group for Revenue Recognition meeting

20 Oct 2014

The agenda has been released for the second meeting of the Joint Transition Resource Group for Revenue Recognition (TRG), which is being jointly held at the offices of the IASB and FASB on 31 October 2014. The TRG will discuss a number of topics related to the boards’ new revenue standard, “Revenue From Contracts With Customers” (issued as IFRS 15 by the IASB and ASU 2014-09 by the FASB).

The TRG was formed in June 2014 and is responsible for soliciting, analysing, and discussing stakeholder issues arising from implementation of the new standards in order to assist the IASB and the FASB to determine what, if any, action will be needed to address those issues.

The agenda for the meeting is as follows:

Friday, 31 October 2014

  • Introductory remarks.
  • Customer options for additional goods and services and nonrefundable upfront fees.
  • Presentation of a contract as a contract asset or a contract liability.
  • Determining the nature of a license of intellectual property.
  • Distinct in the context of the contract.
  • Contract enforceability and termination clauses.

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

IFAC announces 2014 editions of various handbooks

20 Oct 2014

The International Federation of Accountants (IFAC) has announced the availability of the 2014 editions of the handbooks from the International Auditing and Assurance Standards Board (IAASB), International Accounting Education Standards Board (IAESB), International Ethics Standards Board for Accountants (IESBA), and International Public Sector Accounting Standards Board (IPSASB).

The publications are:

  • 2014 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements.
  • 2014 Handbook of International Education Pronouncements.
  • 2014 Handbook of the Code of Ethics for Professional Accountants.
  • 2014 Handbook of International Public Sector Accounting Pronouncements.

For more information, see the press release on the IFAC’s website.

Compliance checklists for 2014 issued

20 Oct 2014

Deloitte's IFRS Global Office has issued updated versions of the IFRS compliance, presentation, and disclosure checklist and the IAS 34 compliance checklist for 2014.

The IFRS compliance, presentation and disclosure checklist 2014 summarises the recognition, measurement, presentation, and disclosure requirements set out in IFRSs in issue as of 30 April 2014. IFRSs include Standards as issued by the International Accounting Standards Board (IASB) and the former International Accounting Standards Committee and Interpretations as issued by the IFRS Interpretations Committee and the former Standing Interpretations Committee. It may be used as a guide to assist in considering compliance with the requirements of the IFRSs. It is not a substitute for understanding such pronouncements.

The IAS 34 compliance checklist 2014 summarises the requirements of IAS 34 Interim Financial Reporting, formatted to allow the recording of a review of interim financial statements, with a place to indicate yes/no/not-applicable for each item. The checklist addresses the requirements of IAS 34 as of 30 April 2014.

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We comment on IVSC's Agenda Consultation

20 Oct 2014

Deloitte Touche Tohmatsu Limited has responded to the International Valuation Standards Council’s (IVSC) Agenda Consultation.

In our response to the IVSC's consultation, we support the Board's efforts to bring together national bodies of valuation professionals into a global representative organisation. However, we believe the role of the IVSC should be as an educational and coordinating body, rather than as an international 'standard setter', which suggests a significant degree of regulatory rigor and compliance. We do support the IVSC developing valuation guidance based on clear principles that can be applied across asset (and liability) types in order to facilitate a variety of valuation objectives, but do not support developing more asset-specific or sector-specific guidance.

Download the full comment letter.

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