August

Recording of the webinar on the second comprehensive review of the IFRS for SMEs Standard

21 Aug 2020

On 17 August 2020, the IASB offered an English language webinar on the second comprehensive review of the IFRS for SMEs Standard, including a Q&A session.

A recording of this webinar is available on the IASB's website.

IFRS Foundation publishes revised Due Process Handbook

21 Aug 2020

The Trustees of the IFRS Foundation have issued an updated IFRS Foundation Due Process Handbook. The most important changes regard the clarification of the authority of agenda decisions published by the Interpretations Committee and an additional due process step with requires the Board to vote on and agree with agenda decisions.

The Handbook continues to note that agenda decisions do not have the status of IFRSs and cannot add or change requirements in the standards, however, it now also states that in many cases an agenda decision includes explanatory material that explains how principles and requirements in IFRSs apply to the transaction or fact pattern described in the agenda decision. As these explanations "may provide additional insights that might change an entity’s understanding of the principles and requirements in IFRS Standards", the Handbook states that entities might determine that they need to change an accounting policy as a result of an agenda decision. The Handbook goes on to note: "It is expected that an entity would be entitled to sufficient time to make that determination and implement any necessary accounting policy change."

The additional due process step regarding agenda decisions consist of the Board being asked whether it objects to the agenda decision. Two aspects will be considered:

  • Whether the Board objects to the Interpretations Committee’s decision that a standard-setting project should not be added to the work plan; and
  • whether the Board objects to the Interpretations Committee’s conclusion that the agenda decision does not add or change requirements in IFRS Standards.

If four or more Board members object, the agenda decision is not published and the Board decides how to proceed.

Please click for the following additional information on the IASB website:

Consultation paper on a new ESG disclosure standard

20 Aug 2020

The CFA Institute, a global association of investment professionals, is developing a voluntary, global industry standard to provide greater product transparency and comparability for investors by enabling asset managers to clearly communicate the ESG-related features of their investment products.

In that context the CFA Institute published a consultation paper that defines ESG-related features as components or capabilities of investment products that can be combined in different ways to meet different investor needs. It identifies the following six ESG-related features:

  • ESG integration;
  • ESG-related exclusions;
  • Best-in-class;
  • ESG-related thematic focus;
  • Impact objective; and
  • Proxy voting, engagement and stewardship.

The features are expected to serve as a backbone of the standard in that they are a mechanism to connect investor needs and disclosure requirements.

The CFA Institute seeks input on the consultation paper from the wider investment community to help shape an exposure draft, which is expected to be released in May 2021.

Responses on the consultation paper are requested by 19 October 2020. The paper, a response form for providing comments, and volunteer opportunities in connection with developing the new standard are available on the CFA Institute website.

 

IFRS Foundation publishes IFRS Taxonomy update

18 Aug 2020

The IFRS Foundation has published 'IFRS Taxonomy 2020 — Covid-19-Related Rent Concessions (Amendment to IFRS 16)'.

This Taxonomy update includes elements to reflect the new disclosure requirements introduced by the recently-issued amendment to IFRS 16.

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

Summary of the July 2020 ITCG meeting

18 Aug 2020

The IASB has published a summary of the IFRS Taxonomy Consultative Group (ITCG) meeting held on 28 July 2020.

The ITCG discussed the following:

  • IFRS Taxonomy content — Tagging comparative information reported in accordance with a superseded IFRS Standard.
  • Technical updates to the IFRS Taxonomy.

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

Report on the future of financial reporting and interview with Board member Ann Tarca

18 Aug 2020

Chartered Accountants Australia and New Zealand (CAANZ) has released a report 'The future of financial reporting', examining the ways in which digital reporting can reshape the way financial information is used.

The report notes that:

  • Digital financial reporting presents significant advantages for preparers, auditors, regulators, users and analysts;
  • Through a unified labeling system, reports can be tailored to the needs of users; and
  • With simple access to detailed information, accountants can focus on advice and assurance.

The report is accompanied by a 25 minute interview with IASB Board member Ann Tarca, who recently delivered a speech discussing the benefits and costs of digital reporting.

Both, the report and the interview, can be accessed through the press release on the CAANZ website.

IASB member discusses the second comprehensive review of the IFRS for SMEs Standard

14 Aug 2020

IASB member Darrel Scott has issued an article discussing the review of the IFRS for SMEs Standard and his views on alignment with full IFRS Standards.

In the article In Brief: Second comprehensive review of the IFRS for SMEs Standard What does alignment mean?, Mr Scott discusses the latest comprehensive review of the IFRS for SMEs Standard and provides additional context around the ‘alignment with full IFRS Standards’ debate — that is, whether, how and when to reflect changes to IFRS Standards in the IFRS for SMEs Standard.

Mr Scott outlines two possible approaches, which he likens to "the two ends two ends of a continuum":

  • Simplified IFRS Standard approach — This requires that the IFRS for SMEs Standard is treated as a condensed version of full IFRS Standards. Also referred to as the 'top-down' approach.
  • Independent Standard approach — This requires that the IFRS for SMEs Standard be viewed as an independent text. Also referred to as the 'bottom-up' approach.

He discusses each approach in full, but notes that the Board's preferred approach is the simplified IFRS Standard approach, or the 'top-down' approach.

Please click to access the article on the IASB website.

Updated IASB work plan — Analysis (August 2020)

11 Aug 2020

The IASB has updated its work plan, which we have analysed to see what changes have resulted since it was last revised in July 2020. Changes are minimal — three expected dates have been clarified.

Below is an analysis of all changes made to the work plan since our last analysis on 25 July 2020.

Research projects

  • Dynamic Risk Management — Core model outreach is now expected in October 2020 (previously Q4 2020).

Other projects

  • IFRS Taxonomy Update — 2020 General Improvements and Common Practice — A proposed IFRS Taxonomy Update is now expected in October 2020 (previously Q4 2020).
  • IFRS Taxonomy Update — Common Practice (IAS 19 Employee Benefits) — The timing of a proposed IFRS Taxonomy Update is now expected in October 2020 (previously Q4 2020).

The above is a faithful comparison of the IASB work plan at 25 July 2020 and 11 August 2020. For access to the current IASB work plan at any time, please click here.

IFRS Foundation appoints four new IFRS Interpretations Committee members

10 Aug 2020

The Trustees of the IFRS Foundation have announced the appointments of Renata Bandeira, Sophie Massol, Jon Nelson and Donné Sephton as IFRS Interpretations Committee members. The new members will serve a three-year term which took effect on 1 July 2020.

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

IFRS Foundation meetings to be held remotely in 2020

07 Aug 2020

The IFRS Foundation has announced that due to concerns about the COVID-19 pandemic and the global nature of its organization, all meetings with advisory and consultative groups will be held remotely until the end of 2020.

The Foundation has been holding all meetings remotely since March and will continue with videoconference meetings through December 2020.

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

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.