This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

News

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG believes IFRS 4 amendments address the main concerns of entities whose activities are predominantly related to insurance

13 Jan 2017

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice 'Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts''.

EFRAG assesses that, in the specific circumstances arising from the misalignment of effective dates of IFRS 9 Financial Instruments and the future insurance contracts standard, the amendments meet all technical endorsement criteria of the IAS Regulation. EFRAG further assesses that the amendments address the main concerns of entities whose activities are predominantly related to insurance, who are the most significantly affected by the issues arising from the misalignment of the effective dates of IFRS 9 and the forthcoming insurance contracts standard. On that basis, EFRAG assesses that adopting the amendments would be conducive to the European public good.

Please click to access the press release, that offers access to the endorsement advice on the EFRAG website. EFRAG has also updated its endorsement status report, which can be downloaded here.

IASB (International Accounting Standards Board) (blue) Image

IASB article on putting IFRS 16 into practice

13 Jan 2017

The IASB has published an article featuring four IASB members discussing messages they have heard from stakeholders about IFRS 16 implementation over the last year and advice to companies implementing the new standard.

  • IASB Vice-Chair Sue Lloyd discusses transition options and benefits;
  • IASB Member Gary Kabureck explains early planning and practical steps;
  • IASB Member Darrel Scott expands on judgements and discount rates; and
  • IASB Member Stephen Cooper examines investor expectations and lease disclosures between now and 2019.

Please click to access the article on the IASB website.

Leaf - sustainability (green) Image

Recent sustainability and integrated reporting developments

13 Jan 2017

A summary of recent developments at the GRI/IIRC, IRC, and FASB.

The Global Reporting Initiative (GRI) has announced the Corporate Leadership Group on integrated reporting 2017 (CLGir 2017) and invites companies to apply to join the group. Coordinated by GRI and in collaboration with the International Integrated Reporting Council (IIRC), the CLGir 2017 will define themes for their explorations of practical topics, including how companies can embed sustainability into the heart of their operations and business strategy by leveraging GRI Standards and the IIRC framework. Please click for more information on the GRI website.

The Integrated Reporting Committee (IRC) of South Africa notes the challenges of disclosing performance against strategic objectives in an integrated report and has published an information paper highlighting the challenges and offers key considerations. Please click to access the paper on the IRC website.

The newest FASB Outlook newsletter provides a contribution by FASB member Marc Siegel titled "Should the FASB have a role in sustainability disclosures?". The article is a reaction to questions raised as to whether the FASB should promulgate standards requiring corporate disclosures about sustainability or environmental, social, and governance (ESG) issues. Mr Siegel concludes that the answer to the question of whether FASB should engage in sustainability and/or ESG issues "is not binary". He notes that the Board engages where those issues are within the boundaries of financial reporting set forth by the FASB's Conceptual Framework but that not all sustainability or ESG information is within the boundaries. Please click to access the article on the FASB website.

IASB document (blue) Image

IASB publishes proposals for amendments under its annual improvements project (cycle 2015-2017)

12 Jan 2017

The International Accounting Standards Board (IASB) has published an exposure draft 'Annual Improvements to IFRS Standards 2015–2017 Cycle'. It contains proposed amendments to three International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by 12 April 2017.

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The ED proposes the following amendments:

Standard Subject of proposed amendment
IAS 12 Income Taxes

To clarify that the requirements in the existing paragraph 52B (to recognise the income tax consequences of dividends where the transactions or events that generated distributable profits are recognised) apply to all income tax consequences of dividends by moving the paragraph away from existing paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits

IAS 23 Borrowing Costs

To clarify that when an asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that asset as part of the funds that it has borrowed generally

IAS 28 Investments in Associates and Joint Ventures

To clarify that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied

ED/2017/1 Annual Improvements to IFRS Standards 2015–2017 Cycle does not contain proposed effective dates for the proposed amendments to IAS 12 and IAS 23 as the intention is to decide on these after the exposure period. However, it is proposed that the amendments to IAS 28 should be effective for annual periods beginning on or after 1 January 2018 to align their effective date with the effective date of IFRS 9.

As regards the proposed amendments to IAS 28, the ED contains a dissenting opinion as one Board member disagrees amending IAS 28 as proposed without also specifying the types of interests that an entity accounts for using the equity method and the types of interests that an entity accounts for applying IFRS 9.

Please click for the following additional information:

IASB (International Accounting Standards Board) (blue) Image

Tom Scott appointed to the IASB

11 Jan 2017

The IFRS Foundation Trustees have announced the appointment of Tom Scott to serve as a member of the International Accounting Standards Board (IASB). Mr Scott will join the IASB in April 2017 for an initial term 5-year term.

Mr Scott has been an academic in the field of accounting at various universities in Canada since the late 1970s. Most recently, he acted as a Director and Professor of Accounting at the School of Accounting and Finance, University of Waterloo, Canada. He also served as a member of the Canadian Accounting Standards Board from 2003 to 2011.

Please click for the announcement on the IASB's website.

IFAC (International Federation of Accountants) (lt gray) Image

IFAC updates Policy Position Paper on enhancing organisational reporting

11 Jan 2017

The International Federation of Accountants (IFAC) has issued an updated version of its Policy Position Paper 8 on enhanced organisational reporting. The update emphasises IFAC's position that integrated reporting is the way to achieve a more coherent corporate reporting system, fulfilling the need for a single report that provides a fuller picture of organisations’ ability to create value over time.

While IFAC had originally maintained that there are a range of different organisational reporting frameworks and that it was important to examine the relationship between these frameworks, this position has now been modified and IFAC puts the International Integrated Reporting Council (IIRC) and the implementation of its Framework first claiming that integrated reporting is the key to enhanced organisational reporting. The paper states:

[T]he integrated report can be used as an “umbrella” report for an organization’s broad suite of reports and communications, enabling greater interconnectedness between different reports and recognizing that there is a range of different frameworks and regulations available, and under development.

The updated version of the paper also includes a new section that describes integrated reporting in more detail.

Please click for the following information on the IFAC website:

FRC (United Kingdom Financial Reporting Council) Image

FRC believes the IFRS Foundation should remain in the UK

10 Jan 2017

As reported, the IFRS Foundation is seeking a new office location and had not excluded the possibility of moving overseas.

The UK Financial Reporting Council (FRC) has now responded to the Foundation’s call for tenders on relocation services and states that the UK is the most powerful centre of accounting expertise outside the US that offers the IFRS Foundation unique access to IFRS knowledge and experience. Therefore, the FRC concludes:

A move overseas for the IFRS Foundation would be counter-productive. It is logical for the Foundation to remain in the UK.

Please click to access the press release on the FRC website.

IASB webcast (blue) Image

IASB posts update on insurance webinars

10 Jan 2017

In April and May 2016, the IASB posted a series of eight webinars on the forthcoming insurance contracts standard. Now a twenty minute update has been made available that reflects more recent decisions in the project.

The new webinar covers:

  • The need for change and the history of the project
  • Level of aggregation
  • Applying the Standard for the first time

Please click to access the update as well as all previous webinars on the IASB website.

IASB meeting (blue) Image

Pre-meeting summaries for the January IASB meeting

09 Jan 2017

The International Accounting Standards Board (IASB) will meet at its offices in London on 18 January 2017. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. For each topic to be discussed we summarise the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

The first meeting for 2017 has a light agenda, with the IASB scheduled to meet in public only on Wednesday 18 January 2017.

The first session focuses on a post-implementation review of IFRS 13 Fair Value Measurement. The requirements in IFRS 13 are substantially the same as those in the FASB’s requirements, the two boards having worked to have converged standards. The staff is recommending that the IASB move ahead with a post-implementation review and that the Board should issue a request for information as part of that process.

The Board will continue its discussions from December 2016 on a possible amendment to IFRS 9 Financial Instruments in relation to symmetric prepayment options, to allow instruments with a prepayment options to qualify for amortised cost measurement. The staff are recommending that the Board proceed with an amendment.

The Board is currently preparing an exposure draft to clarify the difference between an accounting policy and a change in estimate. The staff will provide feedback on the testing of the proposed wording.

The Staff will also provide the IASB with a brief (ten minute) oral update on the insurance contracts project.

The Conceptual Framework session focuses on factors specific to initial measurement; the use of more than one measurement basis; and whether to confirm the proposals to update the references in Standards and Interpretations to the Conceptual Framework.

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

IPSASB (International Public Sector Accounting Standards Board) (mid gray) Image

Two new IPSASB videos on adopting and implementing IPSASs

09 Jan 2017

The International Public Sector Accounting Standards Board (IPSASB) has issued two new videos as part of a series examining the challenges and benefits of governments adopting International Public Sector Accounting Standards (IPSASs) and accrual accounting.

In the video interviews, IPSASB members from different nations describe the process and share key details, timelines, and lessons learned in their jurisdictions in connection with the adoption of IPSAS. The two new videos are for Austria and Australia.

In 2015, the IPSASB had already published videos for South Africa, Panama, New Zealand, Switzerland, and Brazil.

All videos are available on the IPSASB 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.