In its draft comment letter, EFRAG expresses the view that the proposed guidance could be helpful, in particular in the context of disclosures, in order to provide a common ground for applying judgement in deciding which information is relevant for users and fostering thinking on how materiality is applied. EFRAG also believes that it is appropriate that the guidance takes the form of a practice statement as the essence of the proposed guidance is to foster the exercise of judgement, i.e. work on a mindset. Nevertheless, EFRAG believes that the draft practice statement should be drafted in a more concise and practical way and focus on the key steps of the process necessary to make decisions and exercise judgement on materiality.

Comments are requested by 15 February 2016. For more information, see the press release and the draft comment letter on the EFRAG website.

The International Integrated Reporting Council (IIRC) announces that it will be launching the <IR> Academic Network on Wednesday, 16 December 2015 via a webinar. The session will include a welcome from the IIRC, an overview of current research on, opportunities for further research, and an introduction to the features of the Academic Network – including how to join. Please click to access the press release on the IIRC website.

The Association of Chartered Certified Accountants (ACCA) has published a report into the challenges to providing independent assurance over an integrated report. The report notes that "the big question is not how <IR> can develop to accommodate assurance, but how assurance models can be adapted to incorporate integrated reporting". Please click for the press release on the ACCA website.

The CFA Institute, a global association of investment professionals, has added Environmental Social & Governance Issues in Investments: A Guide for Investment Professionals to its portfolio of environment, social and governance (ESG) resources. The guide was developed in response to growing interest among investment professionals to better incorporate ESG issues in investment analysis, and serves as a comprehensive introduction to ESG considerations. Please click to access the press release on the CFA Institute's website.

The draft Natural Capital Protocol and Sector Guides have been launched for consultation at the World Forum on Natural Capital. The draft protocol and sector guides have been developed by the Natural Capital Coalition as a standardised framework for business to measure and value its impacts and dependencies on natural capital and to help them integrate this into their decision making. For more information, see the press release on the organisation's website.

The European national enforcers of financial information monitor and review financial statements published by issuers with securities traded on a regulated European market and who prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.

ESMA has developed a confidential database of enforcement decisions taken by individual European enforcers as a source of information to foster appropriate application of IFRS.

The publication of enforcement decisions is designed to inform market participants about which accounting treatments European national enforcers may consider as complying with IFRS, i.e. whether the treatments are considered as being within the accepted range of those permitted by IFRS. ESMA considers the publication of the decisions, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from February 2014 to May 2015, include:

Click for access to the full report (link to ESMA website). The ESMA has also published an updated overview of all enforcement decisions ever published.

Highlights from the meeting included:

Global IFRS issues

Michel Prada, Chairman of the Trustees, IFRS Foundation, delivered the opening remarks. He spoke on the main strategic challenges to IFRS,the current structure and effectiveness review of the IFRS Foundation, and the role and responsibilities of accounting standard-setters in an IFRS world. After his speech when answering questions he spoke at some length about percieved U.S. influence on IFRS standard-setting.

Reports from regional groups

Representatives from the Asian-Oceanian Standard-Setters Group (AOSSG), the European Financial Reporting Advisory Group (EFRAG), the Group of Latin-American Accounting Standard Setters (GLASS), and Pan-African Federation of Accountants (PAFA) explained recent developments in each of the groups.

IPSASB matters

Participants were updated on IPSASB developments since March 2015. One focus of attention was the IPSASB’s social benefits project.

Administrative matters

The next IFASS meeting will be held in Toronto on 4 and 5 April 2016.

The IFASS Chairman confirmed that she will step down after the Toronto IFASS meeting in 2016. She summarised the nomination and appointment process of the next IFASS Chairman, including a proposed timetable. A representative from the German standard-setter advised that his jurisdiction would be nominating Liesel Knorr, Past President of the Accounting Standards Committee of Germany, as a candidate for the position of IFASS Chairman.

IASB work and research programmes

IASB staff representatives rprovided an update on the IASB’s current agenda projects and identified activities that representatives could undertake to support the IASB’s project activities and the development of IFRSs. They also noted that the IASB is aware that, while its standards are principles based, many of them are very long. The staff is thinking how to simplify the IASB’s guidance and is examining FASB’s simplification project. Participants noted that simplification is harder for the IASB to accomplish versus the FASB, because of the translation problem.

Report back on IFASS member projects

Representatives from Japan and EFRAG provided an update on the goodwill project being conducted by EFRAG, the Italian standard-setter and the Japanese standard-setter. They also asked for input on the next steps to be undertaken. On an informal show of hands most participants appeared to prefer the amortisation approach.

IFRS implementation issues

The IASB Director of Implementation Activities initiated a discussion on ways of improving the IASB’s knowledge of application issues at the local-jurisdiction level. Participants were doubtful that completely consistent application is possible on each and every issue. Differing tax and other legislation would be a hindrance. The Chairman suggested that helpful hints on contentious issues emanating from local jurisdictions should be shared with IFRIC and the IASB staff. She also added that local jurisdictions could hold education and discussion sessions on issues and send those on which there is no consensus to IASB and IFRIC.

FASB Proposals to Revise Financial Statement Presentation of Not-for-Profit Organisations (NFPO)

FASB representatives provided an overview of the FASB’s April 2015 Exposure Draft proposing several improvements to the financial statement presentation requirements for not-for-profit organisations. On an informal show of hands, participants appeared to indicate that there is a need for international standards for reporting by NFPOs. Many indicated that they favoured customisation of international standards to deal with local situations. The IPSASB incoming Chair said that IPSASB would consider this issue further and report back to the group.

Topical Issues

Participants then discussed three topical issues:

• Core inventories (presented by India)
• U.K. GAAP: Adapting IFRS for domestic needs (presented by the UK)
• Types of reporting frameworks used by entities raising capital in non-traditional markets (presented by Canada)

New IFASS member projects

Three new projects were introduced during this meeting, all undertaken by EFRAG:

• Reporting income and expense in profit or loss or OCI
• The statement of cash flows – Issues for financial institutions
• Use of financial information by investors

Please click for the full report from the meeting.