The survey aims to understand how investors/analysts view mergers and acquisitions with third parties and mergers and acquisitions under common control, in particular, what determines the substance of the transactions. The project was first introduced and discussed at the autumn 2017 IFASS meeting in September. The findings of the survey will help determine whether all mergers and acquisitions should be accounted and reported in the same way. Targeted users are institutional or retail investors, analysts, and other users of financial statements.

Please click to access the survey here. The cut-off date for participation is 28 February 2018. 

The new standard FAS 30 Impairment, Credit Losses and Onerous Commitments is not converged with the corresponding requirements in IFRS 9 Financial Instruments as it was concluded that "the impairment and credit losses approaches taken by the generally accepted accounting principles recently set by various accounting standard setters and regulatory standard setters, as well as, the regulators, cannot be applicable on Islamic finance transactions in a similar manner".

The standard is effective from the financial periods beginning on or after 1 January 2020. Earlier adoption is permitted.

The issued standard can be accessed exclusively by subscribers, however, free subscription is available through the AAOIFI website. Please see the press release on the AAOIFI website for more information.

The 15 minute podcast features discussions of the following topics:

• Primary financial statements
• Wider corporate reporting
• Improvements IFRS 8 Operating Segments
• Dynamic risk management

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 November 2017 Meeting.

EFRAG is therefore calling for volunteers to participate in such a case study and is seeking the participation of a range of entities involved in providing insurance. The focus of the study is on European insurance groups that apply IFRSs under the provisions of the IAS Regulation.

Expressions of interest are requested by 8 December 2017. Please see the press release on the EFRAG website for more information.

A new project Management commentary (Wider corporate reporting) has been added to the IASB's agenda. The aim of the project is to review and update the Management Commentary Practice Statement issued in 2010 to help address the lack of alignment and integration between wider corporate reporting and financial reporting.

An Accountancy Europe hosted event on 22 Noevember in Brussels saw the launch of a new publication Policy & Reporting: 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. The publication provides a high-level overview of the similarities and differences in national transposition of the Directive across Europe – including scope, reporting features, auditor’s involvement and fines. The event featured a panel discussion What role does the non-financial reporting play in the future of corporate reporting? Please click access the publication on the Accountancy Europe website.

GRI also announces that Eric Hespenheide, former Deloitte Partner, has been appointed as the Chairman of the GRI Board of Directors, effective 1 January 2018. The press release is available here.

The International Auditing and Assurance Standards Board (IAASB) has agreed to collaborate with the World Business Council for Sustainable Development (WBCSD) to strengthen international assurance standards on sustainability reporting. Please see the press release on the WBCSD website.

The Carbon Disclosure Project (CDP) has released additional national editions of its 2017 Climate Change report analysing data disclosed by companies. Please click through for the individual reports on the CDP website:

• China (in the Chinese language)
• DACH - Germany, Austria, Switzerland (in the German language)
• Ireland
• Korea (in the Korean language)
• United Kingdom

The Committee discussed six issues, including three new interpretation requests.

Finalisation of draft agenda decisions

The Committee consider the public feedback on a request related to IFRS 3 Business Combinations on the acquisition of a group of assets, and decided to finalise the decision not to add to its agenda. However the IASB will monitor this issue and proactively seek feedback from stakeholders on the significance of the issue after the revised definition of a business takes effect.

Continued discussions

In its September 2017 meeting, the IC tentatively decided to add a project to clarify the meaning of the term ‘unavoidable costs’, which is used in the definition of an onerous contract in IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The staff recommended that the clarification be by way of an amendment to IAS 37 and that the scope of the project be limited to clarifying the meaning of ‘unavoidable costs’, and not consider broader issues related to identifying or measuring an onerous contract. The Committee agreed with the Staff’s recommendation but decided to leave open what form the clarification should take until the project is more mature.

In its September 2017 meeting, the IC asked the Staff to research into the scope of a potential narrow-scope amendment to IFRS 1 First Time Adoption of International Financial Reporting Standards with the aim of reducing compliance costs when a subsidiary becomes a first-time adopter later than its parent. The Staff recommended amending IFRS 1 to allow a subsidiary that applies paragraph IFRS 1.D16(a) to measure cumulative translation differences using the amounts reported by the parent based on the parent’s date of transition to IFRS. The Committee supported that recommendation but the Staff will provide further analysis on whether IFRS 1 should require or permit the subsidiary to measure CTD based on the parent’s reported amounts.

New issues

There were three new issues. Two relate to IFRS 15 Revenue from Contracts with Customers:

• Revenue recognition in a real estate contract that includes the transfer of land
• Right to payment for performance completed to date

The third relates to IAS 1 Presentation of Financial Statements and IFRS 9 Financial Instruments:

• Presentation of interest revenue for particular financial instruments

For all three issues the Committee tentatively decided not to add the issue to its agenda. The draft Agenda Decisions will be published in IFRIC Update.

Future items

The Staff are analysing requests received on whether a dual currency bond meets the solely payments of principal and interest condition in IFRS 9; whether an instrument for which the notional amount varies depending on the outcome of a transaction can be a hedging instrument applying IFRS 9; and how the initial recognition exemption in paragraphs 15 and 24 of IAS 12 applies to the recognition of right-of-use assets and lease liabilities arising under IFRS 16.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

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 five questions discussed include:

1. Will IFRS 17 affect dividend payouts?
2. How can a principle-based Standard like IFRS 17 improve comparability between insurers?
3. Will IFRS 17 bring global comparability to the insurance sector?
4. What are the main differences between IFRS 17, regulatory reporting and embedded value reporting?
5. How will removing insurance premiums from the income statement improve comparability?

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

The agenda for the meeting is sum­marised below:

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