EFRAG draft comment letter on the request for information on the post-implementation review of IFRS 9

09 Nov 2021

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's request for information (RFI) seeking comments from stakeholders to identify whether the classification and measurement requirements in IFRS 9 'Financial Instruments' provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

In its draft comment letter, EFRAG notes a number of issues that are considered to be prevalent in Europe and might deserve standard-setting activities. EFRAG believes the following issues should be of highest priority:

  • the application of the SPPI test to sustainable finance products,
  • the absence of recycling for FVOCI equity instruments,
  • the treatment of equity-type instruments, and
  • reporting on reverse factoring.

Comments on EFRAG's draft comment letter are requested by 14 January 2022. For more information, see the press release and the draft comment letter on the EFRAG website.

EFRAG survey on reduced disclosures

09 Nov 2021

In connection with the IASB exposure draft 'Subsidiaries without Public Accountability: Disclosures', the European Financial Reporting Advisory Group (EFRAG) has launched a survey seeking the input of preparers of financial statements (parents and subsidiaries) on the costs and benefits and some of the content of the IASB proposals.

Please click for more information on the EFRAG website.

Agenda updated for the November IASB meeting

09 Nov 2021

The IASB has updated the agenda for its November meeting by moving the session on the Third Agenda Consultation from Friday to Monday and moving the sessions on Dynamic Risk Management and the Second Comprehensive Review of the IFRS for SMEs Standard from Monday to Friday.

View the updated agenda.

Agenda for the November 2021 IFRS Advisory Council meeting

08 Nov 2021

An agenda has been released for the meeting of the IFRS Advisory Council that will be held by remote participation on 10 November 2021.

A summary of the agenda is set out below:

Wednesday 10 November 2021 (12:00-15:25)

  • Welcome and Chair's preview
  • Updates on Trustees and Board’s Ac­tiv­i­ties
  • Feedback from previous Advisory Council meetings
  • Sus­tain­abil­ity reporting
  • Chair summary

Agenda papers for the meeting are available on the IASB website.

Summary of the October 2021 ASAF meeting now available

08 Nov 2021

The IASB staff have published a summary of the Accounting Standards Advisory Forum (ASAF) meeting held via remote participation on 1 October 2021.

The topics covered during the meeting were the following (numbers in brackets are ref­er­ences to the cor­re­spond­ing para­graphs of the summary):

  • Equity method (1–17): The ASAF members were provided with an update on the equity method research project and discussed the application question on changes in an investor’s interest in an associate without change in significant influence and application question that have recurrent themes outside the scope of the project.
  • Management commentary (18–26): The ASAF members discussed the IASB’s outreach on the Exposure Draft Management Commentary and provided feedback on the proposal’s objective-based approach, long-term prospects, intangible resources and relationships and environmental, social and governance (ESG) matters, qualified and unqualified statements of compliance, and the interaction between the proposals and local reporting requirements and practices.
  • Primary financial statement (27–50): The ASAF members were presented with an update on the Exposure Draft General Presentation and Disclosures and discussed subtotals and categories, disaggregation, management performance measures, and other comments
  • Rate-reg­u­lated ac­tiv­i­ties (51): ASAF members were presented with an overview of the feedback on Exposure Draft Reg­u­la­tory Assets and Reg­u­la­tory Li­a­bil­i­ties.
  • Agenda planning (52): The ASAF members discussed topics for the December 2021 ASAF meeting.

A full summary of the meeting is available on the IASB's website.

Intangibles: Joint webinar

08 Nov 2021

On Tuesday 30 November, there is a public webinar to discuss the results and practical recommendations from a large-scale research project on reporting of intangibles. The project was funded by the Institute of Chartered Accountants of Scotland (ICAS) and supported by the European Financial Reporting Advisory Group (EFRAG) and the European Federation of Financial Analysts Societies (EFFAS).

Key themes and topics of the webinar will be:

  • Production processes and disclosure modes of intangibles – traditional accounting and non-financial/narrative information;
  • The desired "consumption" processes of intangibles information by users; and
  • Critical characteristics for corporate production/disclosure and consumption processes, and the authors suggestions for policy makers and standard setters to address them.

Please click for more information and registration on the ICAS website.

IASB issues podcast on latest Board developments (October 2021)

08 Nov 2021

The IASB has released a podcast featuring IASB Chair Andreas Barckow and IASB Vice-Chair Sue Lloyd discussing deliberations at the Ocotber 2021 IASB meeting.

Highlights of the podcast include discussions on:

  • Goodwill and impairment;
  • Primary financial statements;
  • Post-implementation review of IFRS 10, IFRS 11 and IFRS 12;
  • Rate-regulated activities;
  • Second comprehensive review of the IFRS for SMEs;
  • Pension benefits that depend on asset returns;
  • Equity method;
  • Narrow scope amendment to IFRS 17; and
  • Ratification of tentative agenda decisions of the Interpretations Committee.

The podcast can be accessed through the press release on the IASB website.

Please click to view the detailed notes taken by Deloitte observers for the IASB meeting.

November 2021 IASB meeting agenda posted

05 Nov 2021

The IASB has posted the agenda for its next meeting, which will be held in London on 15–16 and 19 November 2021. There are eight topics on the agenda.

The Board will discuss the following:

  • Rate-regulated activities
  • Dynamic risk management
  • Second comprehensive review of the IFRS for SMEs Standard
  • Goodwill and impairment
  • Primary financial statements
  • Board work plan — Timing of PIRs
  • Post-implementation review of IRS 10–12
  • Third agenda consultation

The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries, as well as observer notes from the meeting on this page as they become available.

Two IOSCO speeches at COP26 focus on new ISSB

05 Nov 2021

The International Organization of Securities Commissions (IOSCO) has released the transcripts of two speeches of the Chair of the IOSCO Board and the Chair IOSCO Sustainable Finance Task Force given at the Green Horizon Summit of COP26 in Glasgow.

The Chair of the IOSCO Sustainable Finance Task Force, Erik Thedéen, noted that IOSCO identified the IFRS Foundation as the vehicle to develop a global baseline for investor-oriented sustainability standards given its well-tested governance structure, its best-in-class reputation in setting international reporting standards and its proven record of transparent and inclusive due process. He stressed:

The ISSB global standards are the right tool to respond to the existing ‘alphabet soup’ of voluntary sustainability disclosures. They can drive much-needed international consistency and comparability in sustainability-related information, laying the groundwork towards high quality mandatory reporting.

Ashley Alder, Chair of the IOSCO Board, gave the keynote speech at the summit. He stressed that the new board under the IFRS Foundation umbrella offers the most credible mechanism for creating a baseline of disclosure standards, enabling a confusing picture to be superseded by a properly aligned global approach. He commented:

Crucially, the ISSB will develop a comprehensive global baseline of corporate climate disclosure standards which meet the information needs of investors. They will enable investors to align their investment strategies with the global transition to net zero and will also mitigate the ever-present risk of greenwashing. [...] The baseline disclosure standard can also cut a clear pathway to the adoption of a mandatory standard if jurisdictions choose to take that route. This is important because, in order to hold corporates properly accountable, the standard should be sufficiently enforceable. It is also crucial that it is an open standard which allows jurisdictions to build on the baseline to accommodate their own sustainability needs and circumstances.

Both speakers also stressed that IOSCO plans to thoroughly assess the ISSB proposals to ensure they meet the needs of investors before deciding whether IOSCO can endorse them. If IOSCO's expectations are met, the IOSCO Board would then endorse the new standards for over 130 market regulators.

Please click to access the two speeches on the IOSCO website:

Earlier, IOSCO also released a statement welcoming the creation of the ISSB.

IFAC provides digital access to international standards

05 Nov 2021

The International Federation of Accountants (IFAC) has launched the platform eIS, short for e-International Standards.

The new resource provides direct access to the standards developed by the International Audit and Assurance Standards Board (IAASB), the International Ethics Standards Board for Accountants (IESBA), and the International Public Sector Accounting Standards Board (IPSASB).

Please click for more information and access to the platform on the IFAC website.

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