September

IASB issues work plan update

26 Sep 2015

Following its September meeting, the IASB has updated its work plan. Due to the IASB's new presentation format, which now speaks of "within three months", "within six months" and "after six months", changes are difficult to trace and there is a potential slippage of two months (since the last update in July) in every project where the IASB has not made an active change. However, one of the few changes made confirms that the IASB expects that the new leases standard will be finalised before the end of the year.

On the major projects, the change in the Leases project is the only one. The move from "within six months" to "within three months" logically derives from the fact that the IASB intends to publish a final standard before the year is out. On all other major projects next project steps may or may not have been pushed back by two months since the last work plan update in July.

Updates regarding the implementation projects now include an expected exposure draft of proposed changes that would address the conflicts arising from the different effective dates of IFRS 9 and IFRS 4. As noted, these proposals would include an overlay approach and a deferral approach. The exposure draft is expected "within three months".

Finally, for the following implementation projects the status has been changed from "within six months" to "within three months":

  • Exposure draft on Clarifications Arising from the Post-implementation Review (Proposed amendments to IFRS 8);
  • Decision on project direction on Clarifications to IFRS 15 Revenue from Contracts with Customers: Issues emerging from TRG discussions; and
  • Decision on project direction on Remeasurement at a Plan Amendment, Curtailment or Settlement / Availability of a Refund of a Surplus from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14).

On all other implementation projects next project steps may also have been pushed back by two months or not.

The revised IASB work plan is available on the IASB's Web site.

September 2015 IASB meeting notes posted — part 1

24 Sep 2015

The IASB met at its offices in London on 21–24 September 2015, some of it a joint meeting with the FASB. We have posted the Deloitte observer notes from the sessions on revenue, the research programme, and the disclosure initiative.

Please click through for direct access to the notes:

Tuesday, 22 September 2015

Wednesday, 23 September 2015

Thursday, 24 September 2015

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

Final instalment of the IASB's Conceptual Framework webcast series

24 Sep 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 last instalment was posted today.

The on-demand webcasts 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 Possible implications of the proposals — with provisions and contingent liabilities case study is available today. For information about the upcoming webcasts and a complete archive, see the webcast page on the IASB's website.

IASB decides to propose IFRS 9 deferral

23 Sep 2015

At its meeting today, the IASB resolved Monday's tied vote on proposing the 'Deferral Approach' in favour of the deferral.

During the meeting on 21 September, the IASB discussed a possible deferral in addition to the "overlay" tentatively decided on in July and transition reliefs on initial application of the new insurance contracts standard. The IASB decided on the details of the possible deferral, but was split on the final vote with seven members voting to defer the effective date of IFRS 9 for specified entities that issue contracts within the scope of IFRS 4 until the new insurance contracts standard is applied and seven members against. During today's session, the tie was resolved in favour of proposing a deferral.

The IASB also considered today whether there should be a time horizon on how long such a deferral would last - it was decided to propose a deferral until 2021. The deferral of IFRS 9 for insurers to 2021 will expire in 2020 if the IASB issues the new insurance contracts standard with an effective date of 2020. The IASB expects to publish a final standard in 2016. An Exposure Draft proposing both the overlay approach and the deferral approach will be published later this year.

For more information, see Deloitte's meeting notes from the 21 September and 23 September insurance contracts sessions as well as the press release on the IASB website.

IASB decides to extend the comment period for the Conceptual Framework ED

22 Sep 2015

At its meeting today, the IASB discussed an agenda paper recommending to extend the comment period for the Conceptual Framework ED.

The IASB followed the staff's recommendation and decided to extend the comment period for the Conceptual Framework ED from 150 to 180 days, ending on 25 November 2015. Please see the IASB Update for further information.

Norway aims at introduction of IFRS for SMEs based accounting standards

22 Sep 2015

The Norwegian Ministry of Finance has circulated for comment an exposure draft of a new Accounting Act for Norway. Part of the reform would see current Norwegian accounting standards replaced by requirements based on the IASB’s IFRS for SMEs.

Changes to the existing accounting legislation in Norway became necessary to comply with the new European Accounting Directive. However, the mandate behind the proposal and the proposed new legislation go way beyond minimum adjustments that would have been necessary to comply with the new European Accounting Directive. Rather than suggesting minimum amendments to the current law, the current legislation is removed and replaced by a new law that basically consist of the regulation included in the Accounting Directive. Most of the accounting regulation not provided in the Directive will be included in legally binding accounting standards, developed by a committee appointed by the Ministry of Finance. This approach allows greater flexibility should future changes in the accounting requirements be required. The accounting standards will be derived from the IFRS for SMEs with deviations only allowed when certain rather strict criteria are met.  

Key changes that the new Accounting Act will introduce to Norwegian accounting include:

  • Current legislation will be replaced by a law primarily based on general accounting principles in line with the Directive’s minimum requirements. This will remove for example the revenue-oriented principles such as the matching principle that currently characterise Norwegian accounting legislation.
  • Accounting standards based on IFRS for SMEs might lead to significant changes such as extended use of fair value measurement (for example for investment property, biological assets, fixed assets and significantly more financial instruments).

As a member of the European Economic Area, Norway has adopted the European IAS Regulation that requires that companies listed in a securities market must prepare their consolidated financial statements in accordance with IFRSs. Norway has also used the option under the IAS Regulation to require IFRS as adopted by the EU in the separate company financial statements of companies whose securities trade in a regulated market but that do not prepare consolidated financial statements because they have no subsidiaries. In addition, all other companies in Norway currently have the option to apply IFRSs voluntarily. This option would remain unchanged under the proposed new Accounting Act.

In addition, the Norwegian Ministry of Finance currently has a regulation in place that offers an option to apply a simplified version of IFRS developed by the Ministry. This option is currently applicable both in the consolidated and in the separate financial statements of entities that is not required to apply IFRS as endorsed by the EU. The proposed new law would see the option to apply this "light" version restricted to separate financial statements of entities that report to IFRS reporting entities, and also suggests that the IFRS “light” reporting guidance is set out in a separate accounting standard.

The Norwegian move is part of a greater tendency to bring national reporting standards more into line with IFRS concepts by using the IFRS for SMEs as basis for new national accounting standards. In a similar move, the United Kingdom replaced its local GAAP by the IFRS for SMEs based FRS 102 in March 2013.

The new Norwegian Accounting Act might become effective in 2017, however, 1 January 2018 or later seems more likely. The Accounting Standards will be issued in due course.

Please click for the following information on the Norwegian Ministry of Finance's website (both documents available in Norwegian only):

A Guide through IFRS 2015 ('Green Book') is now available

22 Sep 2015

The IFRS Foundation has announced that 'A Guide through IFRS 2015' is now available. This volume (nicknamed the 'Green Book') includes the full text of the Standards and Interpretations and accompanying documents (such as the Basis for Conclusions) issued by the IASB as of 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 can be purchased for £96 plus shipping for the two book set (academic, developing country, and volume discounts apply). Click for more information and ordering details.

IASB publishes editorial corrections

22 Sep 2015

The IASB has published a batch of editorial corrections that retract a previous correction and impact consequential amendments, stand-alone standards, and the IASB's “2015 IFRS (Red Book)”, "A Guide Through IFRS 2014", and "2015 IFRS (Blue Book)".

Editorial corrections to consequential amendments affect the following standards:

Editorial corrections affect the following individual pronouncements:

Editorial corrections to A Guide through IFRS 2014, 2015 IFRS (Red Book) and 2015 IFRS (Blue Book) affect the following standards:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards
  • IFRS 3 Business Combinations
  • IAS 1 Presentation of Financial Statements
  • IAS 27 Separate Financial Statements
  • IAS 28 Investments in Associates and Joint Ventures

Editorial corrections do not change the meaning or application of pronouncements, but instead correct inadvertent errors. The editorial corrections can be viewed on the editorial corrections page of the IASB's website.

ITG discusses implementation of impairment requirements in IFRS 9

18 Sep 2015

On 16 September 2015, the IFRS Transition Resource Group for Impairment of Financial Instruments (‘ITG’) held its second meeting to discuss implementation issues arising from the new impairment requirements following the issue of IFRS 9 'Financial Instruments' (2014).

Topics discussed at the meeting included:

  • Significant increases in credit risk.
  • Use of changes in the risk of a default occurring over the next 12 months when assessing for significant increases in credit risk.
  • Measurement of expected credit losses for revolving credit facilities
  • Forward-looking information.
  • Status of Basel guidance on accounting for expected credit losses.

The next ITG meeting is planned for 11 December 2015.

For more in­for­ma­tion, and a summary of the dis­cus­sions at the meeting, see Deloitte’s IFRS in Focus as well as the meeting summary on the IASB's website.

Data on voluntary IFRS adoption in Japan

18 Sep 2015

The Tokyo Stock Exchange (TSE) has released data showing that 112 companies listed on the TSE, accounting for almost a quarter of the market capitalisation, have adopted or plan to adopt International Financial Reporting Standards (IFRS). In addition, nearly 200 further companies are actively considering adoption.

Since the issuance of 'Japan’s Modified International Standards (JMIS)' in June this year, there are four sets of accounting standards for consolidated financial statements in Japan: JMIS, designated IFRSs, Japanese GAAP, and US GAAP. On 30 June 2015, the Cabinet in Japan adopted a revised 'Japan Revitalisation Plan' that includes encouragement of further IFRSs adoption by Japanese companies to promote the nation's growth. The data released today takes stock and shows the number and market capitalisation of companies that have adopted IFRSs or plan to do so, IFRS adoption by industrial sector, scheduled adoption dates, and the stage of progress by companies considering IFRS adoption.

Please click to access the analysis on the TSE website.

Correction list for hyphenation

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