Summary of the June 2016 joint CMAC-GPF meeting

  • CMAC meeting (mid blue) Image
  • GPF meeting (mid blue) Image

02 Sep 2016

Representatives from the International Accounting Standards Board (IASB) met with both the Capital Markets Advisory Council (CMAC) and Global Preparers Forum (GPF) in London on 15 and 16 June 2016. Notes from the joint meeting have now been released.

The topics discussed at the meeting included:

  • IASB and Interpretations Committee Update. Members discussed the support of consistent application of IFRSs and the agenda consultation.
  • Materiality. Members discussed a proposed ‘four-step approach’ for making materiality judgements when preparing a financial report:
    • Step 1 — identifying the primary users and their information needs;
    • Step 2 — making a materiality judgement, considering quantitative factors as well as qualitative entity-specific and environmental factors;
    • Step 3 — organising material information within the financial report; and
    • Step 4 — stepping back and reviewing the financial report as a whole.
  • Statement of Cash Flows. Topics discussed were the classification of cash flows (positively defining cash flows from operating activities, presenting cash outflows for acquiring property, plant and equipment as cash flows from operating activities, presentation of cash flows related to financing liabilities, cash received from customers and presentation of cash flows related to tax), cash equivalents and the management of liquid resources, reconciliation of operating activities, and direct or indirect method.
  • Primary Financial Statements. Members discussed the structure and content of the statement of profit or loss and OCI as regards line items and subtotals as well as alternative performance measures, the structure and content of the statement of financial position, and the interaction between items reported in different primary financial statements.
  • Financial instruments with characteristics of equity. Focus of the discussion were shares redeemable at fair value and cumulative preference shares.

The next CMAC meeting will be held on 3 November 2016 and the next GPF meeting will be held on 29 November 2016. The full meeting summary is available on the IASB's website.

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