July

EFRAG moves quickly on endorsement advice on IFRS 4/IFRS 9 amendments

07 Jul 2020

Following yesterday afternoon's EFRAG Board meeting, the European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice on ' Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)'.

In keeping with the deferral of the effective date of IFRS 17 by two years to annual periods beginning on or after 1 January 2023, the amendments change the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023.

Final endorsement of the amendments is currently expected in the fourth quarter of 2020 - in time for European companies to benefit from the deferral.

Please click to access the final endorsement advice letter and a corresponding press release on the EFRAG website. EFRAG has also updated its IFRS endorsement status report to reflect the development.

Podcast on the public sector and the coronacrisis

06 Jul 2020

Accountancy Europe has released a podcast exploring how the COVID-19 crisis differs from the 2008/09 financial crisis and the wider repercussions of the global lockdown across the economy for the public sector.

The 17-minute podcast can be accessed through the press release on Accountancy Europe's website. It is the fifth in a series of podcasts focusing on different aspects of the crisis. The entire series is available on Accountancy Europe's podcast page.

In June 2020, Accountancy Europe released an analysis of short-term and long-term actions that could support the public sector in countering the pandemic's impact, among them many actions with regard to transparency and reporting.

IFRS Foundation Trustees and Due Process Oversight Committee hold June 2020 meeting

06 Jul 2020

The IFRS Foundation Trustees and the Due Process Oversight Committee (DPOC) met by video conference on 9–11 June 2020.

Meeting activities included the following:

  • 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 progressed in more detail their discussion from the February meeting.
    • IFRS Foundation Advisory Council — The Trustees received a presentation from the Chair of the Advisory Council on his work in assessing how the Council can best provide strategic advice for the Trustees and the Board.
    • Committee reports — The Trustees discussed reports from the Business Process and Technology Committee, the 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 continuing discussion in the EU about endorsement of IFRS 17 Insurance Contracts.

For more information, see the press release and the full summary on the IFRS Foundation Trustees’ and DPOC meeting on the IASB’s website.

Fourth and fifth podcast on IFRS Interpretations Committee developments

04 Jul 2020

In the series of quarterly podcasts on the work of the IFRS Interpretations Committee, the April and July editions have now been released.

The April podcast (21 minutes) focuses on IFRS Interpretations Committee activities and developments between Janaury and March 2020. Among the topics covered are the various questions discussed at these meetings, including the agenda decisions finalised on the definition of a lease, on training costs and on hyperinflationary foreign operations.

The July podcast (24 minutes) focuses on IFRS Interpretations Committee activities and developments between April and June 2020. Among the topics covered are sale and leaseback transactions, player transfer payments, deferred tax and reverse factoring arrangements.

Please click to access the podcasts through the press release on the IASB website.

IASB announces third webinar on PFS ED

03 Jul 2020

In December 2019, the IASB published the exposure draft of a new standard 'General Presentation and Disclosures' that is intended to replace IAS 1 'Presentation of Financial Statements'. The IASB is introducing the exposure draft in a series of webinars.

The third webinar on 9 July 2020 will explain the Board’s detailed proposals for disaggregation including general guidance, the analysis of operating expenses and unusual income and expenses. The webinar will last approximately 60 minutes and will include a question-and-answer session. More information is available here.

EFRAG to undertake preparatory work for possible EU non-financial reporting standards

03 Jul 2020

In February 2020, the European Commission (EC) launched an initiative to review the European Non-Financial Reporting Directive (NFRD). One of the aspects of the review looks at whether to mandate the use of a common set of non-financial reporting standards and whether these should be especially developed European standards. The EC has now sent two letters to the European Financial Reporting Advisory Group (EFRAG) asking it to undertake preparatory work for the possible elaboration of such standards.

The first letter tasks the Steering Group of the European Reporting Lab with appointing a multi-stakeholder project task force to carry out the preparatory work for possible standards. The second letter is directed ad personam to the EFRAG Board President to consider a possible need for changes to the governance and financing of EFRAG if it were to be tasked with the development of European non-financial reporting standards in a revised NFRD. 

The press release on the EFRAG website offers access to both letters.

Report on the May 2020 IFRS Advisory Council meeting

01 Jul 2020

A summary report has been released of the meeting of the IFRS Advisory Council held by remote participation on 27-28 May 2020.

The participants discussed:

  • Digital experience for customers and stakeholders — Council members received a presentation on the Foundation’s digital experience. The proposed digital framework was well received by the members.
  • Key performance indicators (KPIs) on Board technical activities — Council members reviewed the areas of the Board’s technical work that will benefit from the use of KPIs; the types of KPIs to be used; the manner in which KPIs support the Foundation’s key objectives as well as KPIs’ limitations; and the use and interpretation of KPI data.
  • Monitoring adoption — Council members received presentations BCBS, IOSCO, and the IMF. Each organisation shared some of the pertinent lessons learnt from their experience in monitoring and assessing standards.
  • Update on Board activities and Update on the Board’s activities — Council members received updates on recent trustee activities and on recent activities of the Board and the IFRS Foundation.

The full meeting summary is available on the IASB's website. There are also recordings of the individual sessions.

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