In his keynote speech, Mr Kono shared some of his thoughts on the importance of capital markets in finance for growth, and the critical role that exchanges can and must play in the global capital marketplace. He stressed: "Efforts for strengthening corporate governance and work towards convergence of accounting standards with the ultimate goal of achieving a single set of high quality global accounting standards should be an increasing focus of attention for exchange operators."

Japan's BAC, which concluded its deliberations about the use of International Financial Reporting Standards (IFRSs) in Japan by publishing a final report in June 2013 recommending greater, but not mandatory, use of IFRSs or IFRS-based standards, met again to review the state of use of IFRSs in Japan. There was no substantive decision made, however, the BAC reaffirmed the aim to increase voluntary adoption of IFRSs in Japan and announced that additional measures to this efffect would be considered by the BAC.

The following information is available on the FSA website:

• Keynote address of Mr Kono at the WFE annual meeting
• Notes from the BAC meeting (Japanese only)

In December 2013, EFRAG and ICAS published the results of a literature review on the use of information by capital providers. One of the conclusions of the literature review was that not much direct evidence exists on how financial statements are used by major capital providers. Therefore, EFRAG and ICAS have decided to sponsor an empirical study on the use of financial information by professional investors. The study aims to inform the debate on the IASB Conceptual Framework by assessing professional investors' opinions of financial reporting information. For the study, EFRAG and ICAS are looking for users who are either currently working, or have had experience in the recent past, as buy-side analysts, fund managers or, by other means, have had experience with investment decisions.

Please click for more information on the EFRAG website.

Note: On 16 December 2014 EFRAG and ICAS have extended the interview period for the study to the end of February 2015.

In August 2014, the EC initiated a public consultation where it asked interested parties to provide their thoughts on the impact of IFRS in the EU. In particular, the EC looked for views concerning the scope, relevance, and the cost/benefits of the IAS Regulation; the current EU endorsement mechanism and criteria; quality of IFRS financial statements; and enforcement of IFRSs. The IFRSF letter provides its view on those concerns as well as emphasising two key points.

First, IFRS should be considered as a “global language” for accounting and explains that “jurisdictions have made very few modifications to IFRS, and the few that have been made are generally regarded as temporary steps in the jurisdiction’s plans to adopt IFRS. If jurisdictions such as the EU were to make modifications, they would not be adopting IFRS and so would lose the benefits of using the globally-accepted language of IFRS. EU companies would no longer have the benefit of the global financial reporting passport that IFRS provide, including their ability to access international capital markets using their IFRS financial statements, without reconciliation to local standards. Investors would be deprived of comparable accounts and therefore essential information.”

Second, the IFRSF noted that IFRS is critical in achieving the objectives of the new Commission. The letter states that “[g]iven the global nature of capital markets and the need for comparability within the EU market to mirror internationally-accepted best practice, only IFRS can provide those requirements. The transparent financial reporting provided by companies reporting under IFRS helps participants in capital markets to make more efficient and informed resource allocation and other economic decisions, and makes investment more attractive to capital providers. Having a comparable and familiar financial reporting language is, therefore, a vital feature to encourage the investment that is so necessary for the growth that the Commission seeks for the EU."

The response letter is available on the IASB's website.

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.

The amendments were issued in September 2014 and affect IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, IFRS 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.

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.

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.

The full agenda for the meeting is summarised below:

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