August

EFRAG publishes a feedback statement on its 2018 research agenda consultation

21 Aug 2018

The European Financial Reporting Advisory Group (EFRAG) has published a feedback statement on its 2018 research agenda consultation.

EFRAG published its 2018 Research Agenda Consultation in April 2018 to solicit input on the strategic direction of its research activities.

The feedback statement summarises the main messages received from constituents and notes any key themes identified. Based upon the input received, the EFRAG Board will deliberate over the next few months which projects should be added to its Research Agenda.

A press release and the full feedback statement are available on the EFRAG website.

IASB posts webcast on IFRS 17

20 Aug 2018

The IASB has posted a webcast on insurance contracts with participation and other features in IFRS 17 'Insurance Contracts'.

The webcast is presented in two parts:

  • Part 1 discusses the measurement of the fulfilment cash flows
  • Part 2 covers the contractual service margin and the scope and requirements of the variable fee approach

For more information, see the press release on the IASB’s website. In addition, earlier webcasts and webinars on IFRS 17 are available through an archive.

IPSASB releases proposed amendments to keep IPSASs in line with IFRSs

20 Aug 2018

The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft 66 'Long-term Interests in Associates and Joint Ventures (Amendments to IPSAS 36) and Prepayment Features with Negative Compensation (Amendments to IPSAS 41)'.

The proposed amendments to IPSAS 36 would converge IPSAS with the narrow-scope amendments to IAS 28 Investments in Associates and Joint Ventures made by the IASB in Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) issued October 2017.

The proposed amendments to IPSAS 41 would converge IPSAS with the narrow-scope amendments to IFRS 9 Financial Instruments made by the IASB in Prepayment Features with Negative Compensation (Amendments to IFRS 9) also issued October 2017.

Comments on the exposure draft are requested by 22 October 2018. It can be accessed here on the IPSASB website.

Australian FRC releases position statement on external reporting

20 Aug 2018

In response to increasing demand from investors and other stakeholders for more than just financial statements, the Financial Reporting Council (FRC), responsible for overseeing the effectiveness of the financial reporting framework in Australia, has released a position statement on external reporting.

The statement sets out the need for a holistic approach to respond to increasing demand for disclosure of non-financial information, and notes that both financial and non-financial information should be subject to the same or similar frameworks and overarching principles. It also notes international take up of external reporting initiatives in a number of jurisdictions and at the IASB.

Please click to access the position statement on the website of the Australian government.

IASB member discusses the relevance of accounting information

17 Aug 2018

On 9 August 2018, IASB member Ann Tarca gave a lecture during a conference at the University of Western Australia in Perth.

Her speech entitled ‘Check the numbers: Accounting information still matters to you, me and investors around the world’ covered (1) the relationship between accounting information and share prices, (2) whether current accounting practices and economic changes have diminished the role for accounting information, and (3) how the IASB is addressing issues raised by those who consider accounting has lost its relevance.

The full version of Ms Tarca’s speech is available on the IASB’s website.

IPSASB publishes guidance on financial instruments

17 Aug 2018

The International Public Sector Accounting Standards Board (IPSASB) has released IPSAS 41 'Financial Instruments'.

IPSAS 41 replaces IPSAS 29 Financial Instruments: Recognition and Measurement, and introduces:

  • Simplified classification and measurement requirements for financial assets;
  • A forward-looking impairment model; and
  • A flexible hedge accounting model.

IPSAS 41 includes public sector-specific guidance and illustrative examples on: (1) financial guarantees issued through non-exchange transactions; (2) concessionary loans; (3) equity instruments arising from non-exchange transactions; and (4) fair value measurement.

For more information, see the press release, IPSAS 41, and At-a-Glance summary on the IPSASB website.

AAOIFI issues accounting standard on risk reserves

17 Aug 2018

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued a new accounting standard FAS 35 'risk reserves'.

The standard defines the accounting principles for risk reserves in line with the best practices of financial reporting and risk management. The standard encourages but does not require maintaining adequate risk reserves to safeguarding the interest of profit and loss stakeholders particularly against various risks including credit, market, equity investment risks, as well as, the rate of return risk. Together wih FAS 30 Impairment, Credit Losses and Onerous Commitments, FAS 35 supersedes the earlier FAS 11 Provisions and Reserves and is effective for the financial periods beginning on or after 1 January 2021 with earlier adoption permitted.

The new standard can be accessed through the press release on the AAOIFI website.

IIRC launches a new <IR> Academic Database

14 Aug 2018

The International Integrated Reporting Council (IIRC) has launched a new <IR> Academic Database. The database highlights potential positive benefits of adopting integrated reporting (<IR>) and emerging best practice based on academic studies.

The <IR> Academic Database is run on a voluntary basis by the<IR> Academic Network; a network that provides a space for connecting theory and practice by bridging academia to those who directly prepare and benefit from integrated reports.

Over 1,600 companies in 65 countries are using integrated reporting. Research included in the database concludes that integrated reporting leads to increased stock liquidity, better performance, higher market valuation and a longer-term investor base for the businesses that adopt it.

The database, which represents the most comprehensive collection of scholarly investigation into the impact of integrated reporting in the world, will be the focal point for academic research on integrated reporting in the future and provides opportunity for further study, complementing the IIRC’s global <IR> Academic Network.

The press release and the database, a freely available resource, can be found on the integrated reporting website.

IFRS Foundation issues seven educational modules on IFRS for SMEs

14 Aug 2018

The IFRS Foundation has issued seven new stand-alone educational modules which support the learning, application, and reading of financial statements prepared with the IFRS for SMEs Standard.

The IFRS Foundation expects to issue stand-alone modules for each section of the 2015 IFRS for SMEs Standard (35 in total). This is the second batch of modules released by the Foundation; the first three modules were posted in April 2018. The seven new modules issued cover the following topics:

  • Statement of comprehensive income and income statement.
  • Statement of changes in equity and statement of income and retained earnings.
  • Statement of cash flows.
  • Basic financial instruments.
  • Other financial instrument issues.
  • Inventories.
  • Events after the end of the reporting period.

For more information, access the IFRS for SMEs modules (free registration required) and see the press release on the IASB’s website.

IPSASB releases updated questions and answers on sovereign debt restructurings under IPSAS

14 Aug 2018

The staff of the International Public Sector Accounting Standards Board (IPSASB) has published an updated document with questions and answers relating to the accounting for sovereign debt restructurings under International Public Sector Accounting Standards (IPSAS).

The updated publication highlights how IPSAS reflect the accounting consequences of sovereign debt restructuring transactions.

Please click to access the document on the IPSASB website.

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