The purpose of the TRG is to seek feedback on potential issues related to implementation of IFRS 17 Insurance Contracts. During the meeting, the TRG discussed the following:

• Combination of insurance contracts
• Determining the risk adjustment for non-financial risk in a group of entities
• Cash flows within the contract boundary
• Boundary of reinsurance contracts held with repricing mechanisms
• Determining the quantity of benefits for identifying coverage units
• Implementation challenges outreach report
• Reporting on other questions submitted

A summary on the meeting and audio recordings of each session are available on the TRG meeting page on the IASB’s website. For more information, see Deloitte's related IFRS in Focus newsletter.

In addition, see the meeting summary and listen to the podcast on the IASB's website.

The agenda for the meeting is sum­marised below:

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

More information about the issues is set out below:

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

The frameworks set out how the AASB uses IFRSs as a base to develop, issue and maintain Australian Accounting Standards; and to help identify when the AASB should undertake a project to modify IFRS and the form and extent of such modifications.

The two new frameworks can be accessed on the AASB website:

• The AASB’s For-Profit Entity Standard-Setting Framework
• The AASB’s Not-for-Profit Entity Standard-Setting Framework

The 13-minute podcast features discussions of the following topics:

• Revised Conceptual Framework for Financial Reporting (issued March 2018);
• Projects on (1) primary financial statements and (2) goodwill and impairment;
• Definition of ‘material’;
• Updates on the work to develop an accounting model for business combinations between companies that are owned by the same parent company.

The podcast can be accessed through the press release on the IASB website. More information on the topics discussed is available through our comprehensive notes taken by Deloitte observers of the April 2018 meeting.

IFAC surveyed 104 of its member organisations in 80 jurisdictions around the world for the report. Of these 80 jurisdictions 58% (46) have adopted IFRSs, 32% (26) have partially adopted IFRSs, and 10% (8) have not adopted IFRSs.

Jurisdictions that have fully adopted IFRSs (58%) have different processes to adopt the standards:

• The most common mode of adoption is through an endorsement process that may include translation and republication of IFRSs for application in the jurisdiction (33%).
• 23% of the jurisdictions have adopted through direct reference in law.
• 3% of the jurisdictions have eliminated the differences between its national standards and IFRS through a convergence process.

A common feature in almost all of the jusrisctions that have only partially adopted IFRSs (32%) is that IFRSs are required for the preparation of financial statements of some types of public interest entities, and national standards — which apply for all other companies — differ from IFRSs.

Out of the 10% of the jurisdictions that have not adopted IFRSs, accounting standards in 5 jurisdictions are established at the regional level. The remaining 3 jurisdictions require the use of national accounting standards, which are not in line with IFRSs.

Please click to access the full report on the IFAC website.

One of the sources of information for the impact analysis is a survey that was launched on 4 May. Please click for more information on the EFRAG website.

The accounting when an entity makes a voluntary payment to a tax authority in relation to a disputed amount was discussed initially in March. The staff are recommending that the Committee not take the matter onto its agenda. The paper also includes a discussion on how the staff thinks the IAS 8 hierarchy should be applied when there is conflict between a definition in the new Conceptual Framework and a definition in IFRS Standards.

The new issue relates to the Venezuelan Bolivar and its lack of exchangeability. This is a preliminary discussion on how, or whether, the Committee should respond.

The staff will also discuss work in progress.

The full agenda for the meeting and our pre-meeting summaries can be found here. We will update this page for any changes to the agenda and our Deloitte observer notes from the meeting as they become available.

Board member Françoise Flores and technical staff provide an overview of the revised Conceptual Framework for Financial Reporting, followed by a Q&A session.

Please click to access the recording here.

The report notes that public sector entities in Australia complain of financial reporting complexity, inconsistent requirements and that the reports do not focus on the needs of stakeholders. It also notes that the cost of preparation (including valuation of non-financial assets) and audit of these financial statements is estimated to be more than $1 billion annually.

To understand the basis for public sector entities’ criticism, the new research report looks into whether the current Australian public sector financial reporting requirements are necessary to adequately hold the public sector accountable for the use of taxpayers’ monies and benchmarks the financial reporting requirements applicable to public sector entities in Australia and seven comparable international jurisdictions (Canada, Hong Kong, New Zealand, Singapore, South Africa, UK, and United States of America).

The research report is available here.