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February

IASB issues podcast on latest Board developments

28 Feb 2017

The IASB has released a podcast featuring its Chair, Hans Hoogervorst and Vice-Chair, Sue Lloyd discussing the deliberations at the February 2017 IASB meeting.

In addition, the podcast features (1) updates on the recent meeting between the IASB, IFRS Foundation Trustees, and the IFRS Foundation Monitoring Board, (2) feedback on the proposed changes to the definition of a business consultation, (3) discussion on rate-regulated activities, (4) symmetric prepayment options comment period, and (5) sweep issues discussion on the new insurance contracts.

For more information, see the press release on the IASB website as well as our comprehensive notes taken by Deloitte observers of the February 2017 meeting.

EFRAG Pension Plans Advisory Panel membership announced

28 Feb 2017

The European Financial Reporting Advisory Group (EFRAG) has announced the composition of its pension plans advisory panel.

The advisory panel will provide “expert advice on EFRAG’s research project to investigate possible improvements to the current requirements in relation to pension plans where the promised benefit is linked to the return on specified assets.” The composition is as follows:

  • Nicklas Grip, Chairman, EFRAG TEG Vice-Chairman
  • Vincent Caire, preparer
  • André Geilenkothen, industry
  • Selim Gogus, user
  • Heinz Hense, EFRAG TEG member
  • Patrice Kalfon, consultant
  • Anne Laning, industry
  • Gabriel van de Luitgaarden, preparer
  • Kazim Razvi, user
  • Geert De Ridder, auditor
  • Jean-François Vaccaro, preparer
  • Julián Villanueva Lara, user

In addition, observer status has been granted to the European Commission, the European Insurance and Occupational Pensions Authority, the European Securities and Market Authority, and PensionsEurope.

For more information, see the press release on the EFRAG’s website.

Updated IASB work plan

27 Feb 2017

Following its February 2017 meeting, the IASB has updated its work plan.

Below is an analysis of all changes made to the work plan since the last update in January 2017.

Stan­dard-set­ting and related projects

  • Insurance contracts — the expected issuance of the IFRS is now marked as being expected within the next three months (May).

Nar­row-scope amend­ments

IFRS Taxonomy

  • Taxonomy update on insurance contracts — The expected issuance is now marked as being expected within the next three months (May).
  • Common practice (agriculture, leisure, franchises, retail and financial institutions) — This project has completed its public consultation phase and is now in the drafting phase.

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

Due Process Oversight Committee holds January 2017 meeting

27 Feb 2017

The Due Process Oversight Committee (DPOC) met in Paris on 31 January 2017.

Meeting ac­tiv­i­ties included the following:

  • Updates on technical ac­tiv­i­ties — The DPOC was presented with a report that outlined the due process ac­tiv­i­ties for all projects on the IASB’s current agenda. Specif­i­cally, the DPOC discussed the due process activities taken as part of the upcoming insurance contracts standard, which included an effects analysis and implementation activities.
  • Research agenda including due process on the share-based payment project — The DPOC was presented with the IASB’s research programme, the share-based payments research project, and the basis on which projects make it to the Board’s work plan.
  • Materiality practice statement — The DPOC confirmed that the requirements of the Due Process Handbook have been met.
  • IFRS 9 Financial Instruments (narrow scope amendment) — The DPOC agreed to allow an exposure draft for narrow-scope amendment to IFRS 9 to proceed with a 30-day comment period.
  • IFRS Taxonomy Consultative Group (ITCG): Terms of reference — The DPOC agreed to adjust the ITCG’s charter concerning ITCG member terms and approved the reappointment of the ITCG Chair and Vice-Chair.
  • Cor­re­spon­dence — No new cor­re­spon­dence has been received since the DPOC’s previous meeting.

The full report on the DPOC meeting is available on the IASB’s website.

IFRS Foundation Trustees hold February 2017 meeting

27 Feb 2017

The IFRS Foundation Trustees met in Paris on 1–2 February 2017.

Meeting ac­tiv­i­ties included the following:

  • Executive session — The Trustees discussed a number of important strategic issues:
    • Strategic workplan 2017 — The Trustees discussed the four primary strategic goals of the workplan.
    • Maintenance of IFRS The Trustees received a presentation on the approach to the interpretations process.
    • Foundation’s location — The Trustees agreed that the Foundation should stay in London in the medium-term, but will reassess its location over time.
    • Presentation on the work of the International Integrated Reporting Council (IIRC) — The Trustees noted that the IIRC will like to establish a closer relationship with the IASB.
    • Other issues — The Trustees discussed its self-assessment and were updated on the Asia Oceania office’s work on long-term investment and the effect of accounting information on investment decision-making. The Trustees also discussed the timetable for the 2016 Audited Financial statements.
    • Committee reports — The Trustees discussed reports from the Audit and Finance Committee, the Education and Content Services Committee, the Human Capital Committee, and the Nom­i­nat­ing Committee.
  • IASB Chairman’s report — The Chair of the IASB provided the Trustees with an update on a number of the IASB’s technical ac­tiv­i­ties, agenda con­sul­ta­tion, engagement strategy, and implementation activities.
  • Meeting with the Monitoring Board — The Trustees discussed the Foundation’s strategy, due process, and governance.
  • Events in Paris — The Association Francaise des Enterprises Privees hosted a stake­holder event with the Trustees, which included the final Tommaso Padoa-Schioppa lecture.

The full report on the IFRS Foun­da­tion trustees’ meeting is available on the IASB’s website.

Agenda for the March 2017 GPF meeting

27 Feb 2017

Representatives of the IASB will meet with the Global Preparers Forum (GPF) in London on Wednesday, 8 March 2017. The agenda for the meeting has been released.

The full agenda for the meeting is sum­marised below:

Wednesday, 8 March 2017 (10:10-17:00)

  • IASB Update
  • Implementation activities and maintenance projects:
    • IFRS 1 — A reserve of a subsidiary that adopts IFRSs later than parent company.
    • IFRS 9 — Symmetric payment options.
    • IAS 12 — Income tax consequences of payments on financial instruments classified as equity.
    • IAS 12 — Interest and penalties related to income taxes.
    • IAS 28 — Long-term interests in associates and joint ventures.
    • Feedback on Breakout session.
  • Impairment of goodwill
  • IFRS Taxonomy
  • Business combinations under common control

Agenda papers for this meeting are available on the IASB's website.

ASBJ and ANC hold joint meeting

27 Feb 2017

On 27 February 2017, the Accounting Standards Board of Japan (ASBJ) and the French standard-setter Autorité des Normes Comptables (ANC) held a joint meeting in Tokyo. The meeting was the first bilateral meeting 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 the implementation of new and forthcoming IFRSs, including insurance contracts, leases and revenue recognition. They also discussed opportunities for cooperation.

For more information about the meeting, see the press release on the ASBJ website.

February 2017 IASB meeting notes posted

24 Feb 2017

The IASB met at its offices in London on 22 and 23 February 2017. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The staff brought the Insurance Contracts project back to the Board to discuss the findings from the external editorial review of a draft of IFRS 17 Insurance Contracts. The staff proposed some drafting changes to address matters identified in the review. The most significant changes proposed relate to changes to the carrying amount of the contractual service margin and introducing a narrow exemption to the requirements to group insurance contracts when a regulation or law constrains an entity from fully pricing the insurance risks transferred based on the characteristics of each policy holder.  The IASB supported all of the proposed changes and will continue to finalise the new Standard. It is expected to be published in the first half of this year. 

In January 2017 the Board decided to develop an exposure draft to amend IFRS 9 Financial Instruments in relation to symmetric prepayment options, to allow instruments with a prepayment options to qualify for amortised cost measurement. Having discussed the urgency of the amendment with the Due Process Oversight Committee the IASB approved a 30 day comment period with the goal of finalising the amendment so that it can have an effective date of 1 January 2018. The ED is expected to be published at the end of April.

The discussions on the Conceptual Framework project are entering the final stages. The papers for this meeting relate mostly to housekeeping matters: whether the appendix on ‘cash-flow-based measurement techniques’ should be retained; a review of existing Standards for potential inconsistencies with the revised CF, the effects of the revised CF; and minor comments on concepts supporting asset and liability definitions and due process.  The IASB unanimously supported the finalisation of the revised Framework.

The paper on financial instruments with the characteristics of equity explore whether rights and obligations arising from non-contractual terms (e.g. those arising from law) should be taken into account when classifying a financial instrument as equity. The Board discussed mandatory tender offers and bonds that are contingently convertible to ordinary shares as a result of regulatory requirements.

The IASB discussed an analysis of the proposed new accounting model for rate-regulated activities that was discussed in the December 2016 Board meeting. The papers look at the general approach of the model, the scope and the recognition of regulatory assets and regulatory liabilities.

The Board discussed two issues relating to IFRS 9 Financial Instruments that have come from the Interpretations Committee and the Transitional Resource Group for Impairment of Financial Instruments. In both cases the IASB decided not to amend or interpret IFRS 9.

The staff updated the Board on the project to amend the definition of a business in IFRS 3 Business Combinations. They also formalised the steps for publishing a request for views as part of the post-implementation review of IFRS 13 Fair Value. And there was a brief update on the Research Programme.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

Trustees reappoint four IASB members

21 Feb 2017

The IFRS Foundation trustees have announced the reappointment of Martin Edelmann, Gary Kabureck, Chungwoo Suh, and Mary Tokar to serve a second term as IASB board members beginning on July 1, 2017.

In addition, Darrel Scott’s term has been extended by two more years and will end on September 30, 2020.

For more information, see the press release on the IASB’s Web site.

EFRAG issues draft endorsement advice on amendments to IAS 40

21 Feb 2017

The European Financial Reporting Advisory Group (EFRAG) has issued for comment its draft endorsement advice for the use of 'Transfers of Investment Property (Amendments to IAS 40)' in the European Union (EU).

In December 2016, the IASB issued the amendments to IAS 40 to clarify transfers of property to, or from, investment property. 

The EFRAG has performed a preliminary assessment of the amendments to IAS 40 and believes the amendments meet the tech­nical re­quire­ments of the Reg­u­la­tion (EC) No 1606/2002 of the European Par­lia­ment and of the Council on the ap­plic­a­tion of in­ter­na­tional ac­count­ing stand­ards.   

In addition, the EFRAG has updated its endorsement status report and is requesting comments on its preliminary conclusions by 20 March 2017. 

For more information, see the press release, draft endorsement advice and the invitation to comment on the EFRAG’s website.

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