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2019

CMAC call for members

08 Jan 2019

The IASB's Capital Markets Advisory Committee (CMAC) is currently seeking applications for membership after the terms of a number of members expire at the end of 2019. New candidates would join the CMAC for a three-year term beginning 1 January 2020, renewable once for an additional three-year term.

The CMAC is a group of professional financial analysts who meet three times a year with members of the IASB to provide the views of professional investors on financial reporting issues.

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

Additional educational module on the IFRS for SMEs on liabilities and equity

08 Jan 2019

The IFRS Foundation has issued an additional new stand-alone educational module, which supports the learning, application, and reading of financial statements prepared with the IFRS for SMEs Standard.

The module focuses on the general requirements for presenting financial statements applying Section 22 Liabilities and Equity of the IFRS for SMEs.

Please click to access all 21 IFRS for SMEs modules available so far (free registration required).

Pre-meeting summaries for the January 2019 IFRS Interpretations Committee meeting

07 Jan 2019

The IFRS Interpretations Committee will meet via Video Conference Call on Wednesday 16 January 2019. The Committee will discuss four tentative agenda decisions. The meeting starts at 12 noon London time and the meeting is scheduled to last just over one hour.

The Committee will consider recommendations from the staff to finalise the following:

  1. IAS 37 Provisions, Contingent Liabilities and Contingent Assets: whether a voluntarily payment made by an entity to a tax authority in relation to a disputed assessment (to avoid possible penalties or interest) is an asset.
  2. IFRS 15 Revenue from Contracts with Customers: whether fees for admitting an entity to a stock exchange and fees for an ongoing listing service are distinct or relate to only one service.
  3. IAS 27 Separate Financial Statements: when an entity loses control of a subsidiary as a result of disposing some of its interest, can the entity elect to measure the retained interest at FVOCI and can any gain or loss on initial disposal be presented in profit or loss.
  4. IAS 27 Separate Financial Statements: whether the cost of a subsidiary acquired in stages is the fair value of the tranches (as deemed cost) or the sum of the consideration actually paid.

Other work in progress

The Committee will discuss feedback on tentative agenda decisions in relation to the application of the highly probable requirement in a cash flow hedge relationship and the recognition of a lease liability by a joint operator at a future meeting. 

The staff are working on potential amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to provide more guidance when a spot exchange rate is not observable.

The staff are analysing requests in relation to (a) whether an entity applies IFRS 16 Leases or IAS 38 Intangible Assets to a contract that gives it rights to space below the ground for a period of time; and (b) whether the right to potential discounts affects the classification of an entity’s pension plan as defined benefit or defined contribution.

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

IVSC consults on the valuation of non-financial liabilities

07 Jan 2019

The International Valuation Standards Council (IVSC) has published an exposure draft IVS 220 'Non-Financial Liabilities' for public comment.

The IVSC's project on the valuation of non-financial liabilities resulted from feedback received during its agenda consultation process conducted in 2017 and 2018.

In the introductory comments, the IVSC notes that the determination of whether a liability is financial or non-financial may be difficult. While non-financial liabilities have limited accounting and valuation guidance, financial liabilities are often subject to specific accounting, valuation, and regulatory requirements (the exposure draft contains extensive references to both IFRSs and US GAAP). Therefore, the IVSC warns that valuers must use judgement and rely on the applicable accounting and/or regulatory guidance when defining the subject liability as non-financial or financial.

Please click to access the exposure draft on the IVSC website. Comments are requested by 1 April 2019.

Agenda for the January 2019 IFRS Interpretations Committee meeting

04 Jan 2019

The IASB's IFRS Interpretations Committee will be meeting by video conference call on 16 January 2019. The Committee will discuss four agenda decisions to finalise and the Committee's work in progress.

The meeting starts at 12 noon London time and is scheduled to last 70 minutes.

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

AAOIFI issues two new financial accounting standards

04 Jan 2019

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued financial accounting standard (FAS) 33 'Investments in Sukuk, Shares and Similar Instruments' and FAS 34 'Financial Reporting for Sukuk-holders'.

FAS 33, which supersedes FAS 25, sets out improved principles for classification, recognition, measurement, presentation and disclosure of investment in Sukuk, shares and other similar instruments of investments made by Islamic financial institutions in line with Sharia’a principles. It defines the key types of instruments of Sharia’a compliant investments and defines the primary accounting treatments commensurate to the characteristics and business model of the institution under which the investments are made, managed and held.

FAS 34 aims to establish the principles of accounting and financial reporting for assets and businesses underlying the Sukuk to ensure transparent and fair reporting to all relevant stakeholders, particularly including Sukuk-holders.

The two standards are effective for financial periods beginning on or after 1 January 2020 with earlier adoption permitted. The press release on the AAOIFI website offers more information and access to the new standards.

Recent sustainability and integrated reporting developments

03 Jan 2019

A summary of recent developments at IRC, SSE, and GRI.

The Integrated Reporting Committee (IRC) of South Africa has released its latest technical paper Achieving Balance in the Integrated Report. The Paper discusses the role of the governing body, the meaning of balanced reporting, challenges and weaknesses, and lists some key considerations in achieving a balanced integrated report. Please click for access to the report on the IRC website.

The United Nation's Sustainable Stock Exchanges (SSE) initiative has launched a new searchable database of stock exchanges’ sustainability activities. to provide easier access to sustainability information on over 90 stock exchanges worldwide. The new database interface allows users to filter the SSE’s Fact Sheets for particular activities, and gives users a quick view of what markets provide particular sustainability instruments such as mandatory ESG disclosure or a sustainability themed bond segment. Please click for more information on the SSE website.

In addition, the SSE notes the following developments:

  • Saudi Arabia’s stock exchange, Tadawul, has announced its voluntary commitment to promoting sustainable and transparent capital markets in becoming an SSE partner stock exchange (press release).
  • The Nigerian Stock Exchange has published sustainability disclosure guidelines for the Nigerian market (press release).
  • The National Stock Exchange of Costa Rica has created sustainable voluntary guidance to help issuers in preparing and disclosing information about ESG criteria (press release).

The Global Reporting Initiative (GRI) has announced a draft standard on tax and payments to governments for public comment. The draft standard is expected to make a pioneering stride in tax transparency by combining management approach disclosures on tax strategy, with country-by-country reporting of an organisation’s business activities and taxes paid. Please click for more information on the GRI website.

Board member of the ASBJ elected next IFASS Chair

02 Jan 2019

The International Forum of Accounting Standard Setters (IFASS) has elected Mr Yasunobu Kawanishi, Board member of the Accounting Standards Board of Japan (ASBJ), as Chair-designate.

Mr Kawanishi became Director of International Activities at the ASBJ in 2013. From 2013-2016 he was Visiting Fellow at the IASB. In 2016 he became a full-time Board member of the ASBJ.

Mr Kawanishi follows Ms Liesel Knorr, former President of the German standard-setter ASCG, who was elected IFASS Chair in 2016 and who will hand over responsibilities to her successor in March 2019.

The ASCG and the ASBJ have issued press releases announcing the upcoming change in IFASS chairmanship.

New developments at AAOIFI and IFSB

01 Jan 2019

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued four new exposure drafts and the Islamic Financial Services Board (IFSB) has adopted three new standards.

The AAOIFI exposure drafts are the following (links to the press releases on the AAOIFI website):

The three new IFSB standards are:

  • IFSB-20: Key Elements in the Supervisory Review Process of Takāful / Retakāful Undertakings [Islamic Insurance Segment];
  • IFSB-21: Core Principles for Islamic Finance Regulation [Islamic Capital Market Segment]; and
  • IFSB-22: Revised Standard on Disclosures to Promote Transparency and Market Discipline for Institutions Offering Islamic Financial Services (IIFS) [Banking Segment].

More information is available in the press release on the IFSB website.

In addition, the IFSB has published Frequently Asked Questions for its four standards on capital adequacy, liquidity risk management, Sharīʻah Governance and Solvency Requirements in Takāful. More information is available here.

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