January

Updated IASB work plan — Analysis

19 Jan 2017

Following its January 2017 meeting, the IASB has updated its work plan. In particular, the new standard on insurance (IFRS 17) is now expected in May and no longer in March since the fatal flaw review revealed some small issues that the staff wants to lay before the Board before finalising the draft. Also, following yesterday's decision to take a project on IFRS 9 and prepayment options onto the agenda, the IASB now announces that it expects to publish an exposure draft on the issue in April.

Below is an analysis of all changes made to the work plan since the last update in December 2016.

Research projects

Standard-setting and related projects

  • Disclosure initiative: Materiality (practice statement) — the expected publication of the practice statement has moved forward and is now given as "within 6 months"
  • Insurance contracts — the expected issuance of the IFRS has been delayed to May since the fatal flaw review revealed some small issues that the staff wants to lay before the Board before finalising the draft

Nar­row-scope amend­ments

IFRS Taxonomy

  • In line with the delayed expected publication of the new insurance standard, the publication of a proposed related IFRS Taxonomy Update has also been pushed back to May

Post-implementation reviews

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

FASB and ASBJ hold biannual meeting

19 Jan 2017

On 18 and 19 January 2017, the FASB and the Accounting Standards Board of Japan (ASBJ) met in Tokyo. The meeting was the 21st in a series of biannual meetings between the two standard-setters.

In addition to giving updates on their respective standard-setting activities at the meeting, the two boards exchanged views on technical topics in which they both have an interest, including performance reporting, goodwill and intangible assets, and negative interest rates.

The next meeting between the FASB and ASBJ is expected to be held in the second half of 2017 in Norwalk. For more information about the meeting, see the press release on the ASBJ website.

IASB decides on project on limited IFRS 9 amendments

18 Jan 2017

The International Accounting Standards Board (IASB) has just voted (11 in favour, 1 against) to add a limited scope project on IFRS 9 'Financial Instruments' to its agenda.

The project will look into whether a narrow-scope exception could be made to allow instruments with symmetric prepayment options to qualify for amortised cost or fair value through other comprehensive income measurement because they would otherwise fail the SPPI condition. Please see our summary of the agenda paper and the IASB's discussion for more details.

IVSC publishes IVS 2017

18 Jan 2017

The International Valuation Standards Council (IVSC) has issued the suite of new International Valuation Standards (IVSs) that make up the 2017 IVS. They are the result of exposure drafts published in April and June 2016.

IVS 2017 consist of five general standards and six asset standards. The general standards offer guidance for all valuation assignments including terms of a valuation engagement, bases of value, valuation approaches and methods, and reporting. The asset standards include requirements related to specific types of assets.

More information and ordering details are available through the press release on the IVSC website.

EFRAG TEG appointments and reappointments

17 Jan 2017

The Board of the European Financial Reporting Advisory Group (EFRAG) has announced the appointment of six (new) members of its Technical Experts Group (TEG).

The new EFRAG TEG members is Silvia Dinova, auditor from Bulgaria. Deloitte's Andrew Spooner as well as Geert Ewalts, Günther Gebhardt, Heinz Hense, and Ambrogio Virgilio have been reappointed. All (re)appointments will run from 1 April 2017.

Please click for the press release announcing the appointments on the EFRAG website.

Two research papers on the economic consequences of IFRS adoption in Korea

17 Jan 2017

The Korea Accounting Standards Board (KASB) has made available two more of the research papers commissioned as part of its comprehensive research project see whether the hoped for effects of IFRS adoption have come about.

EFRAG believes IFRS 4 amendments address the main concerns of entities whose activities are predominantly related to insurance

13 Jan 2017

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice 'Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts''.

EFRAG assesses that, in the specific circumstances arising from the misalignment of effective dates of IFRS 9 Financial Instruments and the future insurance contracts standard, the amendments meet all technical endorsement criteria of the IAS Regulation. EFRAG further assesses that the amendments address the main concerns of entities whose activities are predominantly related to insurance, who are the most significantly affected by the issues arising from the misalignment of the effective dates of IFRS 9 and the forthcoming insurance contracts standard. On that basis, EFRAG assesses that adopting the amendments would be conducive to the European public good.

Please click to access the press release, that offers access to the endorsement advice on the EFRAG website. EFRAG has also updated its endorsement status report, which can be downloaded here.

IASB article on putting IFRS 16 into practice

13 Jan 2017

The IASB has published an article featuring four IASB members discussing messages they have heard from stakeholders about IFRS 16 implementation over the last year and advice to companies implementing the new standard.

  • IASB Vice-Chair Sue Lloyd discusses transition options and benefits;
  • IASB Member Gary Kabureck explains early planning and practical steps;
  • IASB Member Darrel Scott expands on judgements and discount rates; and
  • IASB Member Stephen Cooper examines investor expectations and lease disclosures between now and 2019.

Please click to access the article on the IASB website.

Recent sustainability and integrated reporting developments

13 Jan 2017

A summary of recent developments at the GRI/IIRC, IRC, and FASB.

The Global Reporting Initiative (GRI) has announced the Corporate Leadership Group on integrated reporting 2017 (CLGir 2017) and invites companies to apply to join the group. Coordinated by GRI and in collaboration with the International Integrated Reporting Council (IIRC), the CLGir 2017 will define themes for their explorations of practical topics, including how companies can embed sustainability into the heart of their operations and business strategy by leveraging GRI Standards and the IIRC framework. Please click for more information on the GRI website.

The Integrated Reporting Committee (IRC) of South Africa notes the challenges of disclosing performance against strategic objectives in an integrated report and has published an information paper highlighting the challenges and offers key considerations. Please click to access the paper on the IRC website.

The newest FASB Outlook newsletter provides a contribution by FASB member Marc Siegel titled "Should the FASB have a role in sustainability disclosures?". The article is a reaction to questions raised as to whether the FASB should promulgate standards requiring corporate disclosures about sustainability or environmental, social, and governance (ESG) issues. Mr Siegel concludes that the answer to the question of whether FASB should engage in sustainability and/or ESG issues "is not binary". He notes that the Board engages where those issues are within the boundaries of financial reporting set forth by the FASB's Conceptual Framework but that not all sustainability or ESG information is within the boundaries. Please click to access the article on the FASB website.

IASB publishes proposals for amendments under its annual improvements project (cycle 2015-2017)

12 Jan 2017

The International Accounting Standards Board (IASB) has published an exposure draft 'Annual Improvements to IFRS Standards 2015–2017 Cycle'. It contains proposed amendments to three International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by 12 April 2017.

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The ED proposes the following amendments:

Standard Subject of proposed amendment
IAS 12 Income Taxes

To clarify that the requirements in the existing paragraph 52B (to recognise the income tax consequences of dividends where the transactions or events that generated distributable profits are recognised) apply to all income tax consequences of dividends by moving the paragraph away from existing paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits

IAS 23 Borrowing Costs

To clarify that when an asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that asset as part of the funds that it has borrowed generally

IAS 28 Investments in Associates and Joint Ventures

To clarify that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied

ED/2017/1 Annual Improvements to IFRS Standards 2015–2017 Cycle does not contain proposed effective dates for the proposed amendments to IAS 12 and IAS 23 as the intention is to decide on these after the exposure period. However, it is proposed that the amendments to IAS 28 should be effective for annual periods beginning on or after 1 January 2018 to align their effective date with the effective date of IFRS 9.

As regards the proposed amendments to IAS 28, the ED contains a dissenting opinion as one Board member disagrees amending IAS 28 as proposed without also specifying the types of interests that an entity accounts for using the equity method and the types of interests that an entity accounts for applying IFRS 9.

Please click for the following additional information:

Correction list for hyphenation

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