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2019

IASB seeks candidates for IFRS Taxonomy Consultative Group

08 Aug 2019

The IASB is seeking candidates for membership to its IFRS Taxonomy Consultative Group. The group provides an advisory and review forum for members to actively assist the IASB in the maintenance and development of the IFRS Taxonomy and related activities.

The Board is keen to appoint members with professional experience as preparers or users of electronic financial reports prepared using the IFRS Taxonomy. Technical knowledge of XBRL is desirable, but not required. Applications are requested by 7 October 2019. For more information, see the press release on the IASB website.

IVSC Financial Instruments Board consults on future agenda

08 Aug 2019

The International Valuation Standards Council (IVSC) has published a consultation document seeking feedback regarding the approach its newly established Financial Instruments Board should take, and the prioritisation of that work.

The Standards Review Board of the IVSC recognised the need to develop guidance for the valuation of financial instruments and created IVS 500 as a holding chapter on financial instruments, which was initially released as part of IVS 2017.

In December 2018, the IVSC Financial Instruments Board was formed and met for the first time in April 2019. At that meeting, the Board agreed to significantly modify and enhance the existing financial instrument standard IVS 500 and, as a first step, to publish a consultation document to obtain feedback from stakeholders on how to modify and enhance the existing standard.

The consultation document now released solicits feedback about the valuation topics the IVSC and its newly established Board for financial instruments should address as part of its current agenda and additional financial instruments valuation topics that stakeholders feel should be prioritised or added to IVSC’s agenda.

Please click to access the consultation document through the press release on the IVSC website. Comments are requested by 19 September 2019.

SME Implementation Group publishes draft Q&A for comment

07 Aug 2019

The SME Implementation Group (SMEIG) has published a draft question and answer (Q&A) on the IFRS for SMEs.

The Q&A addresses the application of the undue cost or effort exemption for investment property on the date of transition to the IFRS for SMEs. The draft Q&A concludes that additional cost or effort due to the elapse of time between the date of transition and the date of preparing the first IFRS for SMEs financial statements is not considered.

Comments are requested by 7 October 2019. The draft is available on the IASB website.

Study into the uptake of integrated reporting

06 Aug 2019

The International Integrated Reporting Council (IIRC) has posted to its website a study 'Integrated Reporting and the Capitals’ Diffusion'. The study quantitatively analyses integrated reporting to determine the extent of diffusion of integrated reporting, the depth of integrated reporting adoption, and the extent and nature of the disclosure of multiple capitals.

The study was sponsored by the Autorité des Normes Comptables (ANC), the French standard setter, and was presented at the 8th Symposium on Accounting Research 2018 in Paris (a recording of the research forum is available here).

The project behind the study sought answers to the questions:

  • Where and by whom has integrated reporting been adopted?
  • To what extent has the International <IR> Framework been followed (‘depth’ of adoption)?
  • How are organisations reporting on the capitals?
  • Are integrated reporters using the GRI Standards too?

The research reveals that integrated reporting has matured into fast-paced diffusion around the world, but it also offers some interesting insights such as the fact that more developed countries are lagging in adoption, some companies developed integrated reports even before the International <IR> Framework was published, and the title ‘integrated report’ is not necessarily used - some integrated reports are labeled 'annual report' or 'sustainability report'.

Please click for the press release on the IIRC website, which offers a brief summary and access to the full report.

IPSASB review of developments 2017-2018

06 Aug 2019

The International Public Sector Accounting Standards Board (IPSASB) has published 'Delivering for the Future: IPSASB 2017-2018 Biennial Review'.

The publication summarises the IPSASB’s achievements, challenges, and key developments in 2017 and 2018 and can be downloaded from the IPSASB website.

IPSASB publishes proposed 'Improvements to IPSAS, 2019'

05 Aug 2019

The International Public Sector Accounting Standards Board (IPSASB) has published an exposure draft 'Improvements to IPSAS, 2018', which sets out proposed amendments to International Public Sector Accounting Standards (IPSAS) to address issues raised by stakeholders.

This year, the exposure draft does not include proposed amendments that aim at convergence with recent IASB amendments.

Candidates for such amendments would have the the IASB's Definition of Material (Amendments to IAS 1 and IAS 8) and Definition of Business (Amendments to IFRS 3), both issued in October 2018. However, on the definition of material the IPSASB decided not to amend the definition IPSAS 1 and IPSAS 3. Before making standards-level amendments the IPSASB will review the guidance on materiality in its own framework and in doing so will take account of the IASB’s amendments.

On the definition of a business the IPSASB decided not to amend the definition of an operation in IPSAS 40 (which draws on the definition of a business in IFRS 3) as the definition in IPSAS 40 applies to amalgamations as well as to acquisitions while some of the additional guidance in IFRS 3 would only be relevant to acquisitions. The modifications that would be needed to ensure that this guidance does not apply to amalgamations would go beyond the remit of the improvements project. A separate narrow scope project to evaluate the potential impact of the IASB’s revised definition of business on IPSAS 40 may be considered in the future.

Please click to access the exposure draft Improvements to IPSAS, 2019 on the IPSASB website. Comments are requested by 30 September 2019.

Final papers presented at the fifth IASB Research Forum

05 Aug 2019

The International Accounting Standards Board (IASB) hosted its fifth Research Forum on 11 and 12 November 2018 in Sydney.

The meeting saw the presentation of six academic papers. These have now been finalised and also reflect the responses by academics and standard-setters to the presentations at the forum. We already posted our short summaries of the discussions in November 2018. In December 2018, the IASB made available audio recordings of the presentations and responses. The finalised papers are now available in Abacus Volume 55, Issue 1.

IVSC publishes IVS 2020

02 Aug 2019

The International Valuation Standards Council (IVSC) has issued an updated version of the suite of International Valuation Standards (IVSs) titled IVS 2020 as they become effective on 31 January 2020.

The 2020 edition of IVS will replace IVS 2017 and consists of five general standards and six asset standards. The general standards offer guidance for all valuation assignments including terms of a valuation engagement, bases of value, valuation approaches and methods, and reporting. The asset standards include requirements related to specific types of assets.

More information is available through the press release on the IVSC website

IFRS Foundation Trustees and Due Process Oversight Committee hold June 2019 meeting

01 Aug 2019

The IFRS Foundation Trustees and the Due Process Oversight Committee (DPOC) held meetings in Munich on 24-26 June 2019.

Meeting ac­tiv­i­ties included the following:

Trustees’ meeting

  • Executive session:
    • Report of the Executive Director — The Trustees received a report from the Executive Director Lee White on ac­tiv­i­ties since the last meeting.
    • Strategy review — The Trustees discussed key challenges for the Foundation, the support for consistent application of IFRS Standards, timeliness, and sustainability reporting.
    • Gov­er­nance issues — The Trustees viewed a presentation from the IFRS Foundation Advisory Council and discussed its role in providing strategic advice.
    • Op­er­a­tions analysis — The Trustees received a presentation on managing the Foundation’s brand.
    • Future meetings — Trustees confirmed that their next meetings would be in Brussels in February 2020, Seoul in June 2020, and New Delhi in October 2020.
    • Committee reports — The Trustees discussed reports from the Business Process and Technology Committee, Audit and Finance Committee, the Human Capital Committee, the Nom­i­nat­ing Committee, and the DPOC. (A report of the DPOC meeting is attached to the meeting summary.)
  • IASB Chairman’s report — The Chair of the IASB provided the Trustees with a general update on the IASB’s technical ac­tiv­i­ties, es­pe­cially on the proposed amendments to IFRS 17, the IBOR reform, simplification of accounting for goodwill, and management commentary.
  • Meetings in Munich — The Trustees co-hosted a stakeholder event with the German accounting standard setter (the DRSC), which included a keynote speech by Dr Nicolas Peter, the Chief Financial Officer of BMW AG.

The full report on the IFRS Foun­da­tion trustees’ and DPOC meeting is available on the IASB’s website.

July 2019 IASB meeting notes posted

01 Aug 2019

The IASB met on Monday 22, Wednesday 24 and Thursday 25 July 2019. On Tuesday 23 July the IASB and the US Financial Accounting Standards Board (FASB) met together in public for an education session. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

IBOR Reform: The staff summarised the feedback from comment letters and discussed additional issues for consideration before finalising the proposed amendments. The IASB plans to hold an additional meeting in late August to discuss the project. No decisions were made in this session.

Classification of Liabilities as Current or Non-current: The Board considered liabilities with equity-settlement features as well as transition and early application requirements.

Primary Financial Statements: The Board discussed potential amendments to IAS 34, whether to include special provisions for management performance measures and subtotals that are similar to gross profit, how to classify interest and dividends in the statement of cash flows and how earnings per share should reflect management performance measures. The Board gave the staff permission to begin preparing the Exposure Draft.

Goodwill and Impairment: The Board gave the staff permission to begin preparing the Discussion Paper.

Rate-regulated Activities: The Board decided to include an exception in IFRS 3 for rate-regulated activities. They also discussed the regulatory agreement period and incentive schemes. The Board gave the staff permission to begin preparing the Exposure Draft.   

Disclosure Initiative: The Board decided to add specific disclosure objectives to the requirements in IAS 19.

Dynamic Risk Management: The staff demonstrated how the DRM model is designed to operate. The Board considered some operational simplifications and decided that the application of the model should be optional. The Board also discussed the areas of focus for disclosure.   

Financial Instruments with Characteristics of Equity—Summary of feedback: The Board continued to discuss feedback on the Discussion Paper, focusing on presentation of financial liabilities; presentation of equity instruments and disclosure; contractual terms; users of financial statements and the overall objective, scope and challenges. No decisions were made.

Comprehensive review of the IFRS for SMEs Standard: The Board plans to issue a Request for Information (RFI) in the second half of 2019. At this meeting the Board decided to propose changes to the IFRS for SMEs Standard to reflect IFRS 3, IFRS 10 and IFRS 15. For IFRS 11, the Board decided to retain the current requirements of the IFRS for SMEs Standard. The Board also decided to propose a range of amendments to IFRS Standards and IFRIC Interpretations that have been published since the last review.

Management Commentary: The Board considered how to apply the Conceptual Framework’s qualitative characteristics to information presented in management commentary as well as how to make relevance and materiality judgements. 

Business Combinations under Common Control (BCUCC): The staff presented their analysis of the implications of potential equity investors in BCUCC and the measurement approaches that could be applied.

Implementation Matters: The Board was asked for any feedback on the June meeting of the IFRS Interpretations Committee.   

Joint session with the FASB: The middle day of the IASB meeting had been set aside for a joint meeting with the FASB. The Boards updated each other on projects each Board is working on separately: Segments (FASB); Primary Financial Statements (IASB); Financial Performance Reporting (FASB); Financial Instruments with Characteristics of Equity (IASB); Distinguishing Liabilities from Equity (FASB); IBOR reform (both); Goodwill and Impairment (IASB); Identifiable Intangible Assets and Subsequent Accounting for Goodwill (FASB); Disclosure Initiative (IASB); Disclosure Framework (FASB); and Implementation: Revenue and Leases (FASB).

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

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.