February

Responses to the IVSC consultation on its future agenda

08 Feb 2018

In May 2017, the International Valuation Standards Council (IVSC) launched a consultation to gain feedback on the topics that IVSC should address as part of its current agenda and additional topics that stakeholders think should be priorities or added to IVSC’s agenda. The IVSC has now made available a report on the responses received as well as the individual responses.

Most respondents commented that they largely agreed with the prioritisation of the topics discussed in the consultation document and the suggested categorisation of critical, medium term, or long term, even though some respondents expressed priority for different topics.

The following points were also raised:

  • It was considered to be at least a challenging schedule to address all the items categorised as "critical" by the IVSC in the prescribed 0-2 years for critical items.
  • It was also suggested that the IVSC should also supply implementation guidance.
  • It was noted that the IVSC is suggesting to also address valuation issues that relate to recently issued IFRSs or to projects that are currently on the IASB work plan — for these it was suggested that the IVSC contribution may be more effective if it was made within the context of the IASB work streams.

Please click to access the full report on the IVSC website. The individual responses can be accessed here.

Insurance contracts transition resource group holds first technical meeting

07 Feb 2018

The Transition Resource Group (TRG) for Insurance Contracts held its first technical meeting on 6 February 2018.

The purpose of the TRG is to seek feed­back on po­ten­tial issues related to im­ple­men­ta­tion of IFRS 17 Insurance Contracts. During the meeting, the TRG discussed the following:

  • Separation of insurance components of a single contract.
  • Boundary of contracts with annual repricing mechanisms.
  • Boundary of reinsurance contracts held.
  • Insurance acquisition cash flows paid on an initially written contract.
  • Determining quantity of benefits for identifying coverage units.
  • Insurance acquisition cash flows when using fair value transition.
  • Reporting on other questions submitted.

Audio recordings of each session are available on the TRG meeting page on the IASB’s website. In addition, a summary on the meeting is expected soon.

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

EFRAG simplifies case study on IFRS 17

07 Feb 2018

The European Financial Reporting Advisory Group (EFRAG) is calling for participants to complete a simplified case study on the expected impact of IFRS 17, ‘Insurance Contracts.’

On 22 November 2017, the EFRAG requested volunteers to participate in a detailed case study on IFRS 17; however, requests were made to simplify the case study for participants who did not have the resources to complete the detailed case study. The EFRAG invites any European insurance group that applies IFRSs under the provision of the IAS Regulation and has not completed the detailed case study to participate in the simplified version.

Responses are requested by 31 May 2018. For more information, see the press release on the EFRAG’s website.

IFRS Foundation appoints Executive Director

07 Feb 2018

The IFRS Foundation trustees have appointed Lee White as new Executive Director of the IFRS Foundation. Mr White follows Yael Almog who departed from the position in 2017. Mr White’s term is expected to begin in April 2018.

Most recently, Mr White was the Chief Executive Officer of Chartered Accountants Australia and New Zealand. Previously, he worked as Chief Accountant at the Australian Securities and Investment Commission and was a member of the Australian Financial Reporting Council, the International Organization of Securities Commissions, and the International Forum of Independent Audit Regulators.

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

IASB finalises amendments to IAS 19 regarding plan amendments, curtailments, and settlements

07 Feb 2018

The International Accounting Standards Board (IASB) has published 'Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)' thus finalising one of two issues relating to IAS 19 submitted to the IFRS Interpretations Committee and exposed together in June 2015.

 

Background

In June 2015, the IASB published ED/2015/5 Remeasurement on a Plan Amendment, Curtailment or Settlement/Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14) combining two issues submitted separately to the IFRS Interpretations Committee into a single package of narrow-scope amendments to IAS 19 Employee Benefits and IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

However, in April 2017 the IASB decided to pursue the amendments to IAS 19 and in September 2017 confirmed it would do so despite putting off the amendments to IFRIC 14. Although exposed together, the IAS 19 amendments are unrelated to the IFRIC 14 amendments.

 

Changes

The amendments in Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) are:

  • If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement.
  • In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.

 

Effective date and transition requirements

An entity applies the amendments to plan amendments, curtailments or settlements occurring on or after the beginning of the first annual reporting period that begins on or after 1 January 2019. Early application is permitted but must be disclosed.

 

Additional information

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Webinar on the scope of the Business Combinations under Common Control project - recording available

07 Feb 2018

On 31 January, the IASB hosted a live webinar on the scope of its Business Combinations under Common Control project. A recording of the webinar, which lasted approximatively 35 minutes, is now available on the IASB website.

In December 2017 the IASB concluded its discussions of the scope of the project and the webinar discussed the Board’s decisions and illustrative examples of transactions within the scope.

Please click to access the recording on the IASB website.

IPSASB proposes strategy and work plan for 2019-2023

06 Feb 2018

The International Public Sector Accounting Standards Board (IPSASB) has proposed a new strategy and work plan for 2019 through 2023.

The strategic objective of the IPSASB is stated as strengthening public financial management through increasing adoption of the International Public Sector Accounting Standards (IPSAS). The IPSASB intends to deliver this objective through developing IPSAS and other high-quality financial reporting guidance for the public sector and raising awareness of IPSAS and the benefits of accrual adoption.

To develop standards on critical areas in public sector accounting, the IPSASB proposes to take on three new major public sector specific projects:

  • accounting for natural resources,
  • discount rates, and
  • differential reporting.  

The IPSASB will also continue to strive to maintain convergence with International Financial Reporting Standards (IFRSs).

Please click to access the proposed strategy and work plan and supporting material on the IPSASB website. Comments are requested by 15 June 2018.

FASB and ASBJ hold biannual meeting

02 Feb 2018

On 31 January and 1 February 2018, the FASB and the Accounting Standards Board of Japan (ASBJ) met in Tokyo. The meeting was the 23rd 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 the conceptual framework, financial statement presentation and disclosures, impairment of financial assets, and leases.

The next meeting between the FASB and ASBJ is expected to be held in August 2018 in Norwalk. For more information about the meeting, see the press release on the FASB website.

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