EFRAG supports the IASB proposals; however, EFRAG does not believe the definition for ‘testing’ is needed since the proposed amendments “do not distinguish between net proceeds from selling items produced during the testing phase from any other proceeds prior to the item of property, plant and equipment being available for use.”

Comments on EFRAG's draft comment letter are requested by 13 October 2017. For more in­for­ma­tion, see the press release and the draft comment letter on the EFRAG website.

We generally agree with the clarifications to IFRS 8 but have concerns with the practicability of certain proposed requirements and developments in technology which chief operating decision makers have access to.

Please click to access the full comment letter.

Uncertain times need constructive thinking which can hold the hope of change and strength ahead. And in particular there is a need for public trust to help the process. IFAC, representing the global accountancy profession, has put together the thinking that it hopes will help. A new report, ‘Build Trust. Inspire Confidence’ (link to IFAC website), puts forward a call to action by G20 countries. In a joint statement its President and its CEO say that: ‘Governments must promote coherent public policy and a consistent, transparent regulatory environment that inspires confidence while enabling progress. Professional accountants continue to play a crucial role enabling capital flows, economic activity, and higher standards of living’. They call for a series of actionable recommendations, a policy consensus backed up by tangible implementation and cooperation amongst G20 countries. 

One of these recommendation is the use of integrated reporting.  ‘Integrated reporting’, says the report, ‘is an opportunity to focus on long-term value creation, and improve on a largely fragmented, complex, and compliance-driven system’. The way forward, says the report, is through harnessing the techniques of integrated thinking. ‘Integrated reporting’, says the report, ‘is founded on integrated organisational thinking and more likely to align capital allocation and corporate behaviours to the wider goals of financial stability and sustainable development’. It urges the G20 to action.

The report cites a recent survey carried out by the South African Institute of Chartered Accountants to illustrate how integrated thinking can improve decision making. 74% of executives, the report says, and 93% of non-executive directors were of the view that integrated thinking had improved decision-making at management level. And 72% of executives and 86% of non-executive directors thought integrated thinking had improved decision-making at board level.

Introducing the changes IFAC is advocating would, it says, ‘bring about a more coherent corporate reporting system, relevant to today’s business environment, that aligns outcomes with the G20 priorities of building resilience, improving sustainability, and assuming responsibility’.

The questionnaire that can be completed until 30 September 2017 was developped following a request for technical advice from the European Commission. The information collected will be used in later phases of the project.

More Information on the background and objective of the public consultation is provided in the press release on the EFRAG website. The survey can be accessed through the press release.

The Podcast that was recorded in Amsterdam during the IFRS Foundation’s annual European conference features discussions of the following topics:

• The role conferences play in helping stakeholders implement new Standards,
• Primary financial statements,
• Rate-regulated activities, and
• Amendments to IAS 8 and IFRS 9.

The podcast can be accessed through the press release on the IASB website. More information on the topics discussed is available through our comprehensive notes taken by Deloitte observers of the June 2017 Meeting.

On 25 May 2017, the International Accounting Standards Board (IASB) initiated the public consultation phase of IFRS 13 Fair Value Measurement post-implementation review (PIR) process by publishing for comment a Request for Information (RFI) on the effect of implementing the standard.

EFRAG has developed a general questionnaire and a questionnaire specifically designed for users that European constituents can use to share their practical experiences with IFRS 8. EFRAG would also like to receive examples of practices that are perceived as particularly noteworthy.

Please click for more information and access to the questionnaires in the press release on the EFRAG Website.