Member State Implementation of the Directive 2014/95/EU, developed by CSR Europe and the Global Reporting Initiative (GRI) with the support of Accountancy Europe, provides a high-level overview of the similarities and differences in national transposition of the Directive on disclosure of non-financial and diversity information across Europe – including scope, reporting features, auditor’s involvement and fines.

Following a general introduction into the background, requirements, and options of the Directive, the publication offers a table with the overview of the transposition (p. 10) and country profiles for all EU member states as well as Iceland and Norway (pp. 16 ff.).

Please click to access the publication on the Accountancy Europe website.

EFRAG does not support the proposals in the ED. EFRAG disagrees with introducing a distinction between voluntary changes in accounting policies resulting from agenda decisions and other voluntary changes as EFRAG considers that the proposals in the ED raise broader questions about the status and the objectives of agenda decisions. EFRAG also considers that the proposals in the ED may give rise to practical challenges if finalised in their current form.

Comments on EFRAG's draft comment letter are requested by 13 July 2018. For more information, see the press release and the draft comment letter on the EFRAG website.

In her paper, she discusses the following:

• IFRS 9 on long-term investment.
• Reporting value changes in profit or loss gives better information about value creation over time.
• Recycling can provide a confusing presentation of performance.
• Debt investments are different.
• Prohibiting recycling avoids complexity related to impairment.
• Developing a new impairment model for equity investments is not an easy task.
• Prevalence of available for sale equity investments applying IAS 39.

Ms Lloyd’s paper is available on the IASB’s website.

The European national enforcers of financial information monitor and review financial statements published by issuers with securities traded on a regulated European market and who prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.

ESMA has developed a confidential database of enforcement decisions taken by individual European enforcers as a source of information to foster appropriate application of IFRS.

The publication of enforcement decisions is designed to inform market participants about which accounting treatments European national enforcers may consider as complying with IFRS, i.e. whether the treatments are considered as being within the accepted range of those permitted by IFRS. ESMA considers the publication of the decisions, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from August 2016 to July 2017, include:

Click for access to the full report (link to ESMA website). The ESMA has also published an updated overview of all enforcement decisions ever published.

The Board will discuss six topics.

Tuesday

Primary Financial Statements

At this meeting the Board will discuss clarifying the requirements for management performance measures (MPMs) and requirements for management-defined adjusted earnings per share (adjusted EPS) in the financial statements.

Business Combinations under Common Control

The purpose of this session is to provide an update to the Board on the approaches being developed by the staff for BCUCC transactions.  It is an education session, which means that Board members are not being asked to make any decisions.

Wednesday

Goodwill and impairment

The Board will continue its discussions on the goodwill and impairment research project. At this meeting it will be asked whether it wants to change the requirement to recognise all identifiable assets acquired in a business combination separately from goodwill and whether the next stage in the project should be to issue a Discussion Paper or an Exposure Draft.

Dynamic Risk Management [Macro-hedging]

The Board will discuss qualifying criteria for the financial liabilities used to determine an entity’s target profile, the designation and de-designation of financial liabilities within the Dynamic Risk Management (DRM) model and corresponding documentation requirements.

Disclosure Initiative – Definition of Material

In 2017 the IASB published a proposal to amend the definition of material in IAS 1 and IAS 8. The comment period closed in January 2018. At this meeting the Board will discuss a general summary of the comments received on the exposure draft to amend the definition of material in IAS 1 and IAS 8. The Board is not being asked to make any decisions.

Implementation

The Board will review the activities of the IFRS Interpretations Committee. The discussion will include concerns raised by respondents about the Committee providing technical responses to highly-specific fact patterns submitted.

More information

Our pre-meeting summaries are available on our April meeting note page and will be supplemented with our popular meeting notes after the meeting.

The IFRS Foundation expects to issue stand-alone modules for each section of the 2015 IFRS for SMEs Standard (35 in total). The first three modules issued cover the following topics:

• Small and medium-sized entities.
• Financial statement presentation.
• Property, plant and equipment.

For more information, access the IFRS for SMEs modules (free registration required) and see the press release on the IASB’s website.

The Monitoring Board's planned activities are organised into two sections:

• Reviewing the Trustees’ oversight of the IASB
  
  • review and comment on the Trustees ́ plan for the review of the IASB ́s due process arrangements
  • continue the dialogue with the Trustees on accounting matters of broad public interest for consideration by the IASB
• Monitoring and conferring with the Trustees on their responsibilities
  • continue its ongoing dialogue with Trustees on the efforts to strengthen the governance framework of the IFRS Foundation
  • follow up of the IFRS Reputation research report
  • discuss the progress and results of the IFRS Foundation’s exercise to identify and evaluate its operational risks
  • continue to review the adequacy and appropriateness of the Trustees’ arrangements for the IFRS Foundation’s funding
  • participate and provide input and help to the IFRS Foundation nomination and approval process for Trustee candidates, including the Chair

The work plan is available on the IASB's website.

In addition to giving updates on their respective standard-setting activities at the meeting, the two boards exchanged views on the EFRAG Discussion Paper Equity Instruments - Impairment and Recycling and IFRS implementation issues including revenue recognition, leases, financial instruments and insurance contracts. They also discussed other projects in which they both have an interest including separate finacial statements and virtual currencies.

For more information about the meeting, see the press release on the ASBJ website.

The purpose of the TRG is to seek feedback on potential issues related to implementation of IFRS 17 Insurance Contracts. By analysing and discussing potential implementation issues, the TRG will help the IASB determine whether additional action is needed, such as providing clarification or issuing other guidance. This meeting will be the second meeting where technical matters will be discussed.

The agenda for the meeting is as follows:

Agenda papers for this meeting are available on the IASB's website.

The proposed IFRS convergence amendments reflect the following IASB amendments:

• Annual Improvements to IFRSs 2011 – 2013 Cycle (issued December 2013)
• Disclosure Initiative (Amendments to IAS 7) (issued January 2016)
• Transfers of Investment Property (Amendments to IAS 40) (issued December 2016)
• Annual Improvements to IFRSs 2014 – 2016 Cycle (issued December 2016)
• IFRIC 22 Foreign Currency Transactions and Advance Consideration (issued December 2016)
• Annual Improvements to IFRS Standards 2015 – 2017 Cycle (issued December 2017)
• Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) (issued February 2018)

Please click to access the exposure draft Improvements to IPSAS, 2018 on the IPSASB website. Comments are requested by 15 July 2018.