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News

ANC (Autorité des Normes Comptables) (lt blue) Image
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11th ANC Symposium on Accounting Research

23 Nov 2021

On 13 December 2021, the Autorité des Normes Comptables (ANC), the French standard setter, will host its 11th Symposium on Accounting Research in Paris. The general theme will be "Accounting, Growth & Sustainability".

The following topics are to be discussed:

  • Accounting and intangibles
  • Accounting, control, joint-ventures and partnerships
  • Accounting and growth: what funding for growth?
  • The challenge of the non-financial information: long-term in crisis time?
  • Public good and accounting impacts of growth

Please click for more information on the ANC website:

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United Kingdom Image

AcSB and UKEB hold joint meeting

23 Nov 2021

On 17 November 2021, the Canadian standard setter AcSB and the UK Endorsement Board (UKEB) held a joint virtual meeting. The meeting was the first meeting following the formation of the UKEB in March 2021.

The two boards informed each other about their respective activities and exchanged views on technical topics in which they both have an interest, including rate-regulated activities and the IASB’s third agenda consultation. The UKEB also updated the AcSB on its activities relating to its assessment of IFRS 17 for adoption for use in the UK. For more information about the latest meeting, see the press release on the UKEB website.

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

Responses to the EFRAG consultation on the due process for EU sustainability reporting standard-setting

23 Nov 2021

In June 2021, EFRAG launched a public consultation on the requirements EFRAG plans to follow in its role as technical advisor to the European Commission in the preparation of European sustainability reporting standards envisioned in the draft Corporate Sustainability Reporting Directive. A summary of the responses to the consultation is now available.

Respondents to the consultation especially stressed the need for proper due process and transparency during the work that is already being carried out before the new Sustainability Standards Board has been established, the need for an orderly and transparent transition to the new governance structure, and the need to build on existing standards and frameworks for sustainability reporting and accounting and to cooperate with other standard setters in the field, especially the IFRS Foundation's ISSB.

The summary of responses is available on the EFRAG website.

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Updated IPSAS-IFRS alignment dashboard

22 Nov 2021

The International Public Sector Accounting Standards Board (IPSASB), which develops the International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, has released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRSs.

Please click to access the updated alignment dashboard prepared for the December 2021 IPSASB meeting on the IPSASB website.

In this context, please see also our 2021 edition of IPSAS in your pocket published in February.

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November 2021 IFRS Interpretations Committee meeting agenda posted

19 Nov 2021

The IFRS Interpretations Committee has posted the agenda for its next meeting, which will be held by video conference on 30 November and 1 December 2021.

The Committee will discuss the following:

  • IFRS 15 — Principal versus agent: software resellers
  • IFRS 16 — Economic benefits from use of a windfarm
  • IAS 37 — Negative low or new energy vehicle credits
  • IFRS 9 — TLRO III transactions
  • Work in progress

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.

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We comment on two IFRS Interpretations Committee tentative agenda decisions

19 Nov 2021

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 7 and IFRS 9, as published in the September 2021 'IFRIC Update'.

More in­for­ma­tion about the issues is set out below:

Issue

Agenda decision supported?

More in­for­ma­tion

Cash Received via Electronic Transfer as Settlement of a Financial Asset (IFRS 9)

Yes. However, we believe that this issue should be referred to the Board to consider the wider consequences of the analysis in the TAD and to perform a comprehensive cost/benefit analysis before concluding on the matter.

o    Deloitte comment letter

o    Committee dis­cus­sion

Demand Deposits with Restrictions on Use (IAS 7)

Yes

o    Deloitte comment letter

o    Committee dis­cus­sion

Click to access all our comment letters to the IASB, IFRS Foun­da­tion, and IFRS In­ter­pre­ta­tions Committee.

IASB document (blue) Image

IASB proposes amendments to IAS 1 regarding the classification of debt with covenants

19 Nov 2021

The International Accounting Standards Board (IASB) has published the exposure draft 'Non-current Liabilities with Covenants (Proposed amendments to IAS 1)' to clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The deadline for submitting comments is 21 March 2022.

 

Background

In January 2020, the Board issued Classification of Liabilities as Current or Non-current, which amended IAS 1 Presentation of Financial Statements. The amendments clarified how an entity classifies debt and other financial liabilities as current or non-current in particular circumstances. The amendments are effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted.

In December 2020, the IFRS Interpretations Committee published a tentative agenda decision in response to informal feedback and enquiries about how an entity applies the amendments to particular fact patterns. After considering feedback to its tentative agenda decision, the Committee handed the matter over to the IASB as that feedback provided information about situations the Board did not specifically consider when developing the 2020 amendments.

In response to that new information, the Board tentatively decided to amend IAS 1 with respect to classification (as current or non-current), presentation and disclosures of liabilities for which an entity’s right to defer settlement for at least 12 months is subject to the entity complying with conditions after the reporting period.

 

Key proposals

The main proposals in ED/2021/9 Non-current Liabilities with Covenants (Proposed amendments to IAS 1) would: 

  • Modify the requirements introduced by Classification of Liabilities as Current or Non-current on how an entity classifies debt and other financial liabilities as current or non-current in particular circumstances: The Board proposes that conditions an entity must comply with within twelve months after the reporting period would have no effect on whether an entity has the right to defer settlement of a liability for at least twelve months after the reporting period, i.e. such conditions have no effect on the classification of a liability as current or non-current. When an entity classifies such a liability as non-current, however, it would be required to disclose information that enables users of financial statements to assess the risk that the liability could become repayable within twelve months. An entity would also present separately, in its statement of financial position, liabilities classified as non-current for which the entity’s right to defer settlement for at least twelve months after the reporting period is subject to compliance with certain conditions within twelve months after the reporting period.
  • Defer the effective date of the 2020 amendments to no earlier than 1 January 2024.

The deadline for submitting comments on these proposals is 21 March 2022.

 

Effective date

The Board intends to decide on the effective date after exposure, but the date would be no earlier than 1 January 2024. The amendments would be applied retrospectively in accordance with IAS 8. Earlier application would be permitted.

 

Alternative views

The exposure draft contains alternative views by two Board members. Both members dissented because they disagree with the Board’s proposal to require an entity to present separately, in its statement of financial position, non-current liabilities subject to covenants. They would have preferred these conditions to be communicated through the notes to the financial statements.

 

Additional information

The following additional information is available on the IASB website and on IAS Plus:

 

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Agenda for the November 2021 ITCG meeting

18 Nov 2021

The agenda is available for the next meeting of the IFRS Taxonomy Consultative Group (ITCG), which will be a virtual meeting on 29 November 2021.

The ITCG will discuss the following topic:

  • Digital reporting implications for the Exposure Draft Management Commentary (continued from the September 2021 ITCG meeting)

The agenda papers for this meeting are available on the IASB website.

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EFRAG seeks to broaden its membership by including civil society chapter

17 Nov 2021

In its process of creating a new sustainability reporting pillar alongside its existing financial reporting pillar, the European Financial Reporting Advisory Group (EFRAG) aims to enlarge the EFRAG General Assembly to allow additional relevant and interested organisations to participate in and contribute to EFRAG and become EFRAG Member Organisations.

To ensure a balanced representation of stakeholders, the membership of the EFRAG General Assembly will extended with a Chapter covering Civil Society (including NGOs, academics, trade unions, and consumer organisations) in addition to its European Stakeholder Organisations Chapter and National Organisations Chapter. EFRAG Member Organisations can contribute to the sustainability reporting pillar or to the financial reporting pillar or to both.

EFRAG has published a call for expressions of interest for EFRAG membership, and is inviting all organisations including civil society to join its new sustainability reporting pillar. Expressions of interest are welcome by 8 December 2021.

Please click for more information on the EFRAG website.

Note: A briefing note published on 3 December 2021 explains who qualifies for EFRAG membership.

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Summary of the September 2021 ITCG meeting

16 Nov 2021

The IASB has published a summary of the IFRS Taxonomy Consultative Group (ITCG) meeting held on 16 September 2021.

The ITCG discussed the following:

  • Review of common reporting practice
  • Digital reporting implications for the Exposure Draft Management Commentary
  • Technology update

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

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