Report on the October 2014 IFRS Advisory Council meeting

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05 Nov 2014

A report on the IFRS Advisory Council meeting held in London on 13-14 October 2014 has been posted to the IASB's website. The meeting included discussions focused on the risks and opportunities regarding the IFRS Foundation (IFRSF); updates on the IASB’s projects on insurance, materiality, disclosure initiative, and conceptual framework; a review of the structure and effectiveness of the IFRSF; and developments of IFRS Content Services.

Highlights from the meeting include:

  • IFRSF risk/opportunities. Breakout sessions were held where members looked at what they considered to be biggest risk to the IFRSF and how these risks could present opportunities. The Council agreed to add an agenda item to its February meeting to further discuss this matter.  
  • IASB project updates. 
    • Insurance — Discussions were held to provide the Council with the progress, difficulties and complexities that are occurring with this project.
    • Disclosure initiative — Feedback from the Council was positive concerning this project. They noted that there are initiatives currently occurring to improve disclosure effectiveness and encouraged the IASB staff to research those initiatives in order to get a better understanding of why they are taking place. In addition, the Council advised careful consideration should be taken on the use of non-IFRS information and the scope of the project.
    • Materiality — The main outcome from the discussions held included (1) support for the IASB to consider how materiality can improve disclosures, (2) keeping the definition of materiality as a part of IFRS, (3) prevent obscuring relevant information by not disclosing unnecessary immaterial information, (4) the IASB plays a role in changing the way materiality is applied, and (5) IASB should provide educational support.
    • Conceptual framework — The Council noted that any guidance issued needs to be neutral and focus on transparency.
  • Investor liaison strategy. The Council provided feedback on steps the Council, IASB, and IFRSF could take to support the investor community.

The next meeting of the IFRS Advisory Council is scheduled for 23-24 February 2014 in London.

The full report on the IFRS Advisory Council meeting is available on the IASB website.

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