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April

Updated IASB work plan — Analysis

30 Apr 2018

Following the IASB's April 2018 meeting, we have analysed the IASB work plan to see what changes have resulted from the meeting and other developments in April.

Below is an analysis of all changes made to the work plan since our last analysis on 23 March 2018.

Main­te­nance projects

Standard-setting projects

Research projects

The above is a faithful com­par­i­son of the IASB work plan at 23 March 2018 and at 30 April 2018. For access to the current IASB work plan at any time, please click here.

April 2018 IASB meeting notes posted

27 Apr 2018

The IASB met at its offices in London on 24 and 25 April 2018. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The Board discussed the following topics:

Tuesday 24 April

Primary Financial Statements

The Board discussed clarifying the requirements for management performance measures (MPMs) and requirements for management-defined adjusted earnings per share (adjusted EPS) in the financial statements.

Business Combinations under Common Control

The staff updated the Board on the approaches they are developing for BCUCC transactions.

Wednesday 25 April

Goodwill and impairment

The Board decided not change the requirement to recognise all identifiable assets acquired in a business combination separately from goodwill. The Board did not decide whether the next stage in the project should be to issue a Discussion Paper or an Exposure Draft, but instead asked the staff to consider this matter further and bring a new paper to a future meeting.

Dynamic Risk Management [Macro-hedging]

The Board discussed qualifying criteria for the financial liabilities used to determine an entity’s target profile, the designation and de-designation of financial liabilities within the Dynamic Risk Management (DRM) model and corresponding documentation requirements.

Disclosure Initiative – Definition of Material

In 2017 the IASB published a proposal to amend the definition of material in IAS 1 and IAS 8. The comment period closed in January 2018. The Board discussed a general summary of the comments received. The Board supported continuing to develop the amendments.  

Implementation

The Board reviewed the activities of the IFRS Interpretations Committee. The discussion include concerns raised by respondents about the Committee providing technical responses to highly-specific fact patterns submitted. Overall, the Board is comfortable with the approach the Interpretations Committee is taking.

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

Summary of the March 2018 GPF meeting

27 Apr 2018

Representatives of the IASB met with the Global Preparers Forum (GPF) in London on 6 March 2018. Notes from the meeting have now been released.

The topics discussed at the meeting included:

  • IASB and IFRIC update. Members discussed management commentary, primary financial statements, and project overlap. The IASB staff also provided an update on how GPF members’ feedback was used.
  • Principles of disclosure. The staff discussed feedback from the discussion paper and potential next steps with the GPF members. Specifically, GPF members discussed addressing the disclosure problem, relative prioritisation of six topics included in the discussion paper, and the effect of technology and digital reporting on the project.
  • Primary financial statements. GPF members discussed management performance measures and management-defined earnings per share as well as the presentation of the share of profit or loss of associates and joint ventures accounted for using the equity method in the statement of performance.
  • Goodwill and impairment. The GPF members discussed simplifying the identification of intangible assets acquired in a business combination separately from goodwill as well as improving the effectiveness of impairment testing of goodwill by using the unrecognised headroom of a cash-generating unit as an additional input in the impairment testing of goodwill.

The next GPF meeting will be held on 14 and 15 June 2018 jointly with the Capital Markets Advisory Committee (CMAC).

The full meeting summary is available on the IASB's website.

IASB Vice-Chair reappointed for second term

26 Apr 2018

The Trustees of the IFRS Foundation have reappointed Sue Lloyd for a second term as Vice-Chair of the Board.

Ms Lloyd’s second term will begin on 1 January 2019 and will last for five years. For more information, see the press release on the IASB’s website.

Agenda for the May 2018 IFRS Interpretations Committee meeting

26 Apr 2018

The IASB's IFRS Interpretations Committee will be meeting by video conference call on 9 May 2018.

The Committee will continue discussions on one issue, consider one new issue and discuss the Committee's work in progress.

The full agenda for the meeting can be found here. We will update this page for any changes to the agenda, our pre-meeting summaries and our Deloitte observer notes from the meeting as they become available.

IFRS Foundation Trustees seek to fill Advisory Council vacancies

25 Apr 2018

The Trustees of the IFRS Foundation are calling for candidates to fill vacancies occurring at the end of 2018 for membership to the IFRS Advisory Council.

The terms of 15 current members will be completed on 31 December 2018. Of those 15 current members, eight are eligible for reap­point­ment. New members would serve two or three-year terms, starting on 1 January 2019, renewable once.

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

Research into the local implementation of the EU Directive on disclosure of non-financial and diversity information

25 Apr 2018

Accountancy Europe, CSR Europe, and GRI have published an updated report on their research looking at the local implementation of the EU Directive on non-financial and diversity information reporting.

Member State Implementation of the Directive 2014/95/EU, developed by CSR Europe and the Global Reporting Initiative (GRI) with the support of Accountancy Europe, provides a high-level overview of the similarities and differences in national transposition of the Directive on disclosure of non-financial and diversity information across Europe – including scope, reporting features, auditor’s involvement and fines.

Following a general introduction into the background, requirements, and options of the Directive, the publication offers a table with the overview of the transposition (p. 10) and country profiles for all EU member states as well as Iceland and Norway (pp. 16 ff.).

Please click to access the publication on the Accountancy Europe website.

EFRAG draft comment letter on proposed amendments to IAS 8 regarding agenda decisions

24 Apr 2018

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2018/1 'Accounting Policy Changes (Proposed amendments to IAS 8)'.

EFRAG does not support the proposals in the ED. EFRAG disagrees with introducing a distinction between voluntary changes in accounting policies resulting from agenda decisions and other voluntary changes as EFRAG considers that the proposals in the ED raise broader questions about the status and the objectives of agenda decisions. EFRAG also considers that the proposals in the ED may give rise to practical challenges if finalised in their current form.

Comments on EFRAG's draft comment letter are requested by 13 July 2018. For more information, see the press release and the draft comment letter on the EFRAG website.

IASB Vice-Chair discusses IFRS 9

23 Apr 2018

IASB Vice-Chair Sue Lloyd has issued a paper which recaps the requirements in IFRS 9 for equity investments and the effects on long-term investment.

In her paper, she discusses the following:

  • IFRS 9 on long-term investment.
  • Reporting value changes in profit or loss gives better information about value creation over time.
  • Recycling can provide a confusing presentation of performance.
  • Debt investments are different.
  • Prohibiting recycling avoids complexity related to impairment.
  • Developing a new impairment model for equity investments is not an easy task.
  • Prevalence of available for sale equity investments applying IAS 39.

Ms Lloyd’s paper is available on the IASB’s website.

ESMA publishes 22nd enforcement decisions report

20 Apr 2018

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 5, IAS 7, IAS 32, IAS1/IAS36, IFRS 3/IFRS 13/IAS 28, IFRIC 17, IAS 1, IFRS 10, IAS 8/IAS 21/IAS 29, and IAS 38.

The European national enforcers of financial information monitor and review financial statements published by issuers with securities traded on a regulated European market and who prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.

ESMA has developed a confidential database of enforcement decisions taken by individual European enforcers as a source of information to foster appropriate application of IFRS.

The publication of enforcement decisions is designed to inform market participants about which accounting treatments European national enforcers may consider as complying with IFRS, i.e. whether the treatments are considered as being within the accepted range of those permitted by IFRS. ESMA considers the publication of the decisions, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from August 2016 to July 2017, include:

Standard Topic
IFRS 5Non-current Assets Held for Sale and Discontinued Operations Classification of an asset that is not expected to be sold within one year
IAS 7Statement of Cash Flows Presentation and disclosure of restricted cash balances
IAS 32Financial Instruments: Presentation Perpetual notes classified as liabilities
IAS 1Presentation of Financial Statements
IAS 36 — Impairment of Assets
Disclosure of quantitative commodity price assumptions that have significant risk of resulting in material adjustments to carrying amount
IFRS 3Business Combinations
IFRS 13Fair Value Measurement
IAS 38 Intangible Assets
Purchase price allocation of a group of acquired assets
IFRIC 17 Distributions of Non-cash Assets to Owners Demerger and distribution of a segment to the issuer’s shareholders
IAS 1Presentation of Financial Statements Presentation of revaluation losses of assets used in operating activities
IFRS 10Consolidated Financial Statements Obtaining power over an investee following a tender offer
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 29 Financial Reporting in Hyperinflationary Economies
Lack of foreign currency exchangeability and hyperinflation  
IAS 38 Intangible Assets Amortisation of content rights for films and television programmes

Click for access to the full report (link to ESMA website). The ESMA has also published an updated overview of all enforcement decisions ever published.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.