August

World Standard-setters meeting programme available

21 Aug 2015

A draft programme has been released for the upcoming World Standard-setters meeting, which is being held in London on 28-29 September 2015.

A summary of the programme is set out below:

Monday, 28 September 2015 (09:00 - 18:30)

  • Welcome and IASB update
  • Research update
    • Accounting for dynamic risk management
    • Rate-regulated activities
    • Pollutant pricing mechanisms
  • Implementation and education update
  • Update on jurisdictional profiles
  • IFRS Foundation's review of structure and effectiveness
  • Agenda consultation
  • Small group discussions on the review of structure and effectiveness and the agenda
    consultation
  • Feedback from the small group discussions on the review of structure and effectiveness and the agenda
  • Optional sessions (two iterations)
    • IFRS 15 Revenue from Contracts with Customers
    • IFRS 9 Financial Instruments
    • Leases
    • IFRS for SMEs
    • Insurance contracts

Tuesday, 29 September 2015 (08:00 - 13:30)

  • Optional session with the translations adoption copyright team
  • Small group discussions on 'How the Conceptual Framework changes the future'
  • Feedback from the small group discussions on 'How the Conceptual Framework changes the future'
  • Disclosure initiative
  • Optional Q&A session on the Conceptual Framework

Papers for the meeting are expected to be made available in due course on the IASB's website.  The WSS meeting will be immediately followed by a meeting of the International Forum of Accounting Standard Setters (IFASS).

Second IASB Research Forum

21 Aug 2015

On 11 October 2015, the second IASB Research Forum will be held in Hong Kong offering an interdisciplinary platform for academics from around the world to exchange their views with peers and with members of the International Accounting Standards Board (IASB) on topics that address the interaction between international financial reporting requirements, policy and the functioning of capital markets. The topic of the second research forum will be 'Consequences of IFRS for Capital Markets, Managers, Auditors and Standard-setters'.

The Research Forum will feature six paper presentations:

  • Other Comprehensive Income: A Review and Directions for Future Research
  • Non - GAAP Earnings Disclosures and IFRS
  • The Impact of IFRS Goodwill Reporting on Financial Analysts’ Equity Valuation Judgements: Some Experimental Evidence
  • Longer Term Audit Costs of IFRS and the Differential Impact of Implied Auditor Cost Structures
  • Unrealized Earnings, Dividends and Reporting Aggressiveness: An Examination of Firms’ Behaviour in the Era of Fair Value Accounting
  • An Evaluation of Asset Impairments by Australian Firms and Whether This Was Impacted by AASB 136

There will also be a panel discussion on 'The Role of Financial Statements in Reporting Financial Performance' with panelists Mary Barth (Stanford University), Gary Biddle (University of Hong Kong), Hans Hoogervorst (IASB), and Katherine Schipper (Duke University).

Please click for more information and the full programme on the IASB website.

EFRAG conference on the conceptual framework and European expectations

21 Aug 2015

On 23 September 2015, the European Financial Reporting Advisory Group (EFRAG) will host a conference on 'Conceptual Framework for Financial Reporting - will it meet European expectations?' in Brussels.

At the conference, the results of a study on professional investors’ financial information usage will be presented. In addition, a representative of the IASB will provide a presentation of ED/2015/3 Conceptual Framework for Financial Reporting. The ED will then be debated by participants and a panel consisting of representatives from National Standard-Setters, the European Parliament, users of financial statements, the IASB, EFRAG, and academics.

Please click for the press release and the formal invitation on the EFRAG website.

2015 IFRS 'Green Book' coming soon

20 Aug 2015

The IFRS Foundation has announced that 'A Guide through IFRS 2015' will be available soon.

This volume (nicknamed the "Green Book") will include the full text of the Standards and Interpretations and accompanying documents (such as the Basis for Conclusions) issued by the IASB as at 1 July 2015 with extensive cross-references and other annotations. This edition does not contain documents that are being replaced or superseded but remain applicable if a reporting entity chooses not to adopt the newer versions early.

The new requirements since 1 July 2014 include:

The Green Book will sell for £96 plus shipping for the two book set (academic, developing country and volume discounts apply). More information and ordering details are available on the IASB's eIFRS website.

Third instalment of the IASB's Conceptual Framework webcast series

20 Aug 2015

In August 2015, the IASB launched a webcast series on the proposed changes to its Conceptual Framework. Eight pre-recorded webcasts will be posted to the IASB's website weekly. The third instalment was posted today.

The on-demand webcasts will provide detailed discussions of each part of the IASB's May 2015 Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting.

The webcast on Chapter 6 — Measurement is available today. For information about the upcoming webcasts and a complete archive, see the webcast page on the IASB's website.

AAOIFI creates new technical board for Islamic accounting

20 Aug 2015

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) invites nominations for two new technical boards it intends to establish: the AAOIFI Accounting Board and the AAOIFI Governance and Ethics Board. These two boards will be responsible for developing and revising AAOIFI standards on accounting, auditing, ethics and governance. The AAOIFI Sharia'a Board will continue to be responsible for AAOIFI Sharia'a standards.

As a leading standard-setter for the international Islamic finance industry, AAOIFI has issued a total of 94 standards to date, comprising 54 Sharia'a standards, 26 accounting standards, 5 auditing standards, 2 codes of ethics and 7 governance standards.

Please click for more information and the call for nominations on the AAOIFI website.

IFRS conference in Cartagena announced

20 Aug 2015

The IFRS Foundation has announced that its next IFRS conference in the Amaricas will be held in Cartagena, Colombia on 23-24 November 2015. The conference will include discussions on the implementation plans for new standards (IFRS 9, IFRS 15) and on implementing for the first time the IFRS for SMEs. There will also be panel discussions on IFRS transition issues and IFRS regulatory issues.

Some of the topics to be covered at the conference include:

  • Welcome
  • The future of financial reporting
  • Key note speeches by the host country
  • IASB update
  • Break-out sessions on
    • Implementing IFRS 9 Financial Instruments: financial institutions
    • Implementing IFRS 9 Financial Instruments: other than financial institutions
    • Implementing IFRS 15 Revenue from Contracts with Customers
    • Implementing for the first time the IFRS for SMEs
  • IFRS - truly global accounting standards
  • Panel discussion on IFRS transition issues
  • Break-out sessions on
    • Insurance
    • Leases
    • What to do when Standards do not specify accounting for particular transactions?
    • Panel discussion on IFRS regulatory issue
  • Break-out sessions on
    • Rate regulated activities and emissions trading schemes
    • Financial instruments with characteristics of equity
    • Conceptual Framework
    • IFRS for SMEs

Before the conference, a half-day workshop cross-cutting IFRS measurement issues will be held.

More details, including registration information, are available on the IASB website.

IFAC publication with a list of useful resources for sustainability accounting

19 Aug 2015

The Professional Accountants in Business Committee (PAIB) of the International Federation of Accountants (IFAC) has released a briefing supporting accountants in developing a greater awareness of how they can help their organisations address issues of sustainability and more fully incorporate these issues into business strategy. The publication is not so much focused on accounting as such but offers a valuable section on additional resources by focus area.

The section "Useful Resources for Accountants by Focus Area" (pp. 19-33) points out additional resources on the following topics:

  • Leadership and business strategy
    • Identifying the business case at an organisational, project, or issue level
    • Facilitating leadership and commitment
    • Engaging the finance and accounting function
    • Connecting sustainability to strategy, risk, and performance, and identifying how decisions can be enhanced by integrating sustainability-related information
  • Management, operations, and accounting
    • Generating information and analysis to support decisions
    • Reducing the sustainability impact of products, services, and operations
  • Communications, reporting, and disclosure
    • Developing a business reporting strategy and approach
    • Integrating sustainability impacts into financial reporting
    • Assuring sustainability disclosures and reports

Please click to access the publication Accounting for Sustainability - From Sustainability to Business Resilience on the IFAC website.

Study of the CFA Institute on the influence of ESG disclosures on investment decisions

18 Aug 2015

The CFA Institute, a global association of investment professionals, has published 'ESG Issues in Investing: Investors Debunk the Myths'. The study shows that almost three-quarters of investment professionals worldwide take environmental, social, and corporate governance (ESG) issues into consideration in the investment process.

The report presents the results of an online survey that was conducted from 26 May to 5 June 2015. Some 1,325 members of CFA Institute who are portfolio managers or research analysts responded to the survey for a response rate of 3 percent.

Key findings of the survey are:

  • 63% percent of survey respondents said they consider ESG information in the investment decision making process to help manage investment risks, 44% include ESG evaluation on demand of their clients/investors, and 38% see ESG performance as a proxy for management quality.
  • Board accountability, human capital, and executive compensation were cited as the issues most important to investment analysis and decision-making.
  • In the Asia-Pacific region, ESG issues are considered by 78% of the respondents; investors in the Europe, Middle East, and Africa (EMEA) region follow with 74%; in the Americas region still more than half (59%) consider ESG factors.
  • 57% of respondents integrate ESG into the whole investment analysis and decision-making process; 38% use best-in-class positive alignment. 36% use ESG analysis for exclusionary screening.  
  • 61% of survey respondents say that public companies should be required to report at least annually on ESG factors, and 69% of these believe that these disclosures should be subject to independent verification.

Please click to access the full report on the CFA Institute's website. A webinar reviewing the findings is archived on YouTube.

World Bank finds Sri Lanka has implemented IFRS successfully

17 Aug 2015

The World Bank has published the 2014 'Report on the Observance of Standards and Codes' (ROSC) on accounting and auditing in Sri Lanka. The report follows a 2004 ROSC, which had recommended that Sri Lanka mandates the use of IAS/IFRS without modifications for specified business enterprises. The 2014 ROSC states that this key recommendation has been fully implemented.

Specified business enterprises (SBE) do not only include listed companies but also all banks, insurance companies, factoring companies, finance companies, leasing companies, unit trusts, fund management companies, stockbrokers and stock dealers, and stock exchanges. Since 2012, these companies have to apply Sri Lanka Financial Reporting Standards (SLFRS), which are nearly identical with International Financial Reporting Standards (IFRS).

As means of transitional reflief, the Institute of Chartered Accountants of Sri Lanka (CASL), the official standard-setter in Sri Lanka, adopted SLFRS 7 without requiring comparative information for periods beginning before 1 January 2013. Also, CASL adjusted the effective date of SLFRS 10, 11, 12, and 13 to 1 January 2014 but "recommended to use the principles contained in IFRS 13 in the measurement of fair value due to its practical prominence". In view of pertinent issues identified by regulators and other stakeholders, Sri Lanka has also adopted a Statement of Alternative Treatment (SoAT) regarding the right-of-use of land on lease.

Please click for additional information:

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