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SMEIG issues guidance on IFRS for SMEs Standard

14 Dec 2017

The SME Implementation Group (SMEIG) has issued Q&A guidance on financial guarantee contracts. The guidance aims to support entities during the implementation of the IFRS for SMEs Standard.

Specifically, the guidance discusses how a reporting entity would account for the financial guarantee contract issued to the bank in its separate or individual financial statement.

For more information, see the press release and Q&A on the IASB’s website.

New Trustees of the IFRS Foundation appointed, Chair Michel Prada continues in his post for the time being

14 Dec 2017

The IFRS Foundation announces that it has appointed seven new Trustees, but that the identification of a successor of the Chair of the Trustees has taken longer than anticipated and therefore Michel Prada has agreed to remain in place until the appointment process is completed.

The following seven new Trustees have been appointed for three-year terms beginning on 1 January 2017:

  • Dame Colette Bowe
  • Larry Leva
  • Michel Madelain
  • Ross McInnes
  • Vinod Rai
  • Lucrezia Reichlin
  • Teresa Ko

In addition, Sheila Fraser’s term as Vice-Chair has been extended until December 2019, and Takafumi Sato replaces Ronald Arculli as the second vice-chair from 1 January 2018, following Mr Arculli’s retirement as a Trustee at the end of 2017.

For more information, please see the press release on the IASB website.

Video recording of panel discussion with Chairs of IASB, FASB, and AcSB

13 Dec 2017

The Canadian Accounting Standards Board (AcSB) has made available a video recording of a panel discussion at the November 2017 IFRS Conference: Americas featuring Hans Hoogervorst, Russ Golden, and Linda Mezon.

Topics discussed included the global financial reporting landscape, how the world has changed in recent years, the future for US GAAP/IFRS convergence, and how financial accounting fits with a broader reporting framework.

The video recording of the panel discussion (approx. one hour) is available on the AcSB website.

FRC Lab report notes digital future of corporate reporting

13 Dec 2017

A new report from the Financial Reporting Lab of the UK Financial Reporting Council (FRC) concludes that XBRL (eXtensible Business Reporting Language) is an important technology in the path to digitisation of company reporting.

The Lab considered how XBRL could be used in the production, distribution and consumption of listed company annual reports. The Lab identified gaps between the characteristics that users and preparers desired from digital reporting and the expected implementation of XBRL for listed company reporting. To close these gaps, the report recommends a series of actions for regulators, technology companies, preparers and investors and notes:

We are at a turning point for the use of technology in corporate reporting. The paper-based way of reporting is likely to change with the European requirement to prepare digital financial information by 2020. The changing demands of users, supported by upcoming regulatory changes mean that boards can no longer ignore digitisation of listed company reporting. This report urges all those involved in corporate reporting to help shape the future.

Please click to access the report on the FRC website.

IASB concludes the 2015-2017 annual improvements cycle

12 Dec 2017

The IASB has issued 'Annual Improvements to IFRS Standards 2015–2017 Cycle'. The pronouncement contains amendments to four International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project.

Annual Improvements to IFRS Standards 2015–2017 Cycle makes amendments to the following standards:

IFRS Subject of amendment

IFRS 3 Business Combinations and IFRS 11 Joint Arrangements

The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business. The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. 

IAS 12 Income Taxes

The amendments clarify that the requirements in the former 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 paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits.

IAS 23 Borrowing Costs The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.

The Amendments to IFRS 3 and IFRS 11 were originally included in Exposure Draft ED/2016/1 Definition of a Business and Accounting for Previously Held Interests. However, the Board believed that these amendments meet the criteria for annual improvements and therefore included them in this cycle.

Furthermore, the Exposure Draft ED/2017/1 Annual Improvements to IFRS Standards 2015-2017 Cycle included amendments to IAS 28 regarding long-term interests in an associate or joint venture. Those amendments have been finalised separately as a narrow-scope amendment to IAS 28.

The amendments published today are all effective for annual periods beginning on or after 1 January 2019.

Please click for the following additional information:

IASB posts webcast on IFRS 17

12 Dec 2017

The IASB has posted a webcast on the transition requirements in IFRS 17 'Insurance Contracts'.

The new webcast is available on the IASB website in two parts - an overview as first part and a deep dive as second. It is part of a series on the implementation of IFRS 17. Earlier webcasts and webinars on IFRS 17 are available through an archive.

EFRAG TEG appointments and reappointments

11 Dec 2017

The Board of the European Financial Reporting Advisory Group (EFRAG) has announced the appointment of Emmanuelle Guyomard and Jed Wrigley to its Technical Experts Group (TEG).

In addition, EFRAG has reappointed Nicklas Grip as EFRAG TEG Vice-Chairman and reappointed the following members: Ana Cortez, Guenther Gebhardt, Heinz Hense, Soren Kok Olsen, and Andrew Spooner. The EFRAG TEG composition becomes effective on 1 April 2018.

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

ANC Research Forum - Live broadcast and papers

11 Dec 2017

The Autorité des Normes Comptables (ANC), the French standard setter, will host its 7th Symposium on Accounting Research today. The event will be broadcast live and the policy papers can be downloded from the ANC website.

The papers are the following (for the presentation times please see the programme of the event):

  • Elements for a European conceptual framework (cover note and proposed framework) (available in English)
  • Using proforma to predict future cash-flows: the impact of income statement (available in English and French)
  • The value relevance of IFRS earnings totals and sub-totals and non-GAAP performance measures  (available in English and French (executive summary))
  • L’impact du numérique sur l’information financière: quel enjeu stratégique pour la normalisation comptable international? Le cas du langage XBRL comme «Standard Business Reporting Language» (available in English (executive summary) and French)
  • Quel impact de l’économie numérique sur la comptabilité ? l’enjeu de la reconnaissance des actifs immatériels (available in English and French)

The live broadcast of the event can be accessed here from 9:00 Paris time.

Recent sustainability and integrated reporting developments

08 Dec 2017

A summary of recent developments at the European Parliament, IIRC, Finance for the Future, and CDSB.

On 21 November 2017, the European Parliament's Committee on Legal Affairs organised a public hearing on corporate social responsibility with the aim of following up on the most recent developments in the field. Among the experts invited was also Alain Deckers, Head of the Unit ‘Accounting and Financial Reporting’ at the European Commission. The full programme, webstreaming and presentations are available on the Parliament website.

The International Integrated Reporting Council (IIRC) has published a new report highlighting how the integrated reporting framework can help meet investor demands for better information. Creating Value – Benefits to Investors is available on the IIRC website.

Business leaders in the US have formed an integrated reporting working group under the auspices of the IIRC in a bid to make integrated reporting mainstream. The group has launched a US <IR> Website and will hold monthly webinars to inform stakeholders of latest developments and to build understanding.

The Finance for the Future Awards 2017 have been awarded. One of the awards is for ‘Communicating integrated thinking’. Please click for the list of winners on the Finance for the Future website.

The Climate Disclosure Standards Board (CDSB) has published an infographic showing the users of the CDSB framework (374 companies in 32 countries across 10 sectors). Please click to access the infographic on the CDSB website.

IFAC Call for Nominations

08 Dec 2017

The International Federation of Accountants (IFAC) has issued issued a 'Call for Nominations for the Independent Standard-Setting Boards in 2019' looking to fill 22 vacancies including 6 vacancies on the International Public Sector Accounting Standards Board (IPSASB).

Nominations are requested by 15 February 2018. For more information please see the following information on the IFAC website:

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