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

IASB (International Accounting Standards Board) (blue) Image

IASB pushes publication of management commentary ED to May

07 Apr 2021

While the work plan of the IASB so far stated that an exposure draft (ED) for a revised Practice Statement 1 'Management Commentary' was expected in April 2021, the IASB has now released a statement that the expected publication date has been moved to May 2021.

Since the IASB's deliberations in the project have already been completed, the shift in publication date must be attributed to an attempt to balance out comment letter periods on different consultations.

During the March 2021 IASB meeting, which discussed the comment letter period for the management commentary ED, the IASB noted the difficult balance and the constraints on respondents' capacities:

  • The IASB has several consultation documents outstanding and plans to publish several more.
  • The COVID-19 pandemic has placed constraints on stakeholder resources.
  • Respondents to the ED may also develop responses to forthcoming proposals by the Trustees to change the Foundation’s Constitution to form an international sustainability reporting standards board within the existing governance structure of the IFRS Foundation and may find it difficult to respond to both documents at the same time.

Please click for the press release on the IASB website announcing the postponement.

IASB webcast Image

Report and video of an EAA workshop on the post-implementation review of IFRS 10, IFRS 11, and IFRS 12

07 Apr 2021

On 26 March 2021, the IASB, in conjunction with the European Accounting Association (EAA), held an EAA Financial Reporting Standards workshop that provided an overview of the request for information regarding the post-implementation review of IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', and IFRS 12 'Disclosure of Interests in Other Entities'.

The purpose of the workshop was to obtain feedback on the matters included in the request for information and to discuss relevant academic evidence.

A recording of the workshop as well as the slides used are now available on the EAA website.

ESMA (European Securities and Markets Authority) (dark gray) Image

ESMA publishes report on the activities of accounting enforcers and their findings within the EU in 2020

06 Apr 2021

The report provides an overview of the activities of the European Securities and Markets Authority (ESMA) and the accounting enforcers in the European Union (EU) when examining compliance of financial information provided by issuers listed on regulated markets with the applicable financial reporting framework in 2020.

European enforcers examined the financial statements of about 729 issuers representing an average examination rate of 17% of all IFRS issuers with securities listed on regulated markets. These examinations resulted in 265 actions taken to address material departures from IFRS.

Enforcers also assessed the non-financial information related to ESG for 737 issuers, covering approximately 37% of the total estimated number of issuers required to publish a non-financial statement, resulting in 39 enforcement measures.

In addition, 611 management reports were reviewed for evaluating compliance with ESMA’s guidelines on alternative performance measures, covering around 14% of all IFRS listed issuers in Europe against which were taken 93 corrective actions.

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

IFRS AC meeting (mid blue) Image

Agenda for the April 2021 IFRS Advisory Council meeting

06 Apr 2021

An agenda has been released for the upcoming meeting of the IFRS Advisory Council which will be held by remote participation on 13 April 2021.

A summary of the agenda is set out below:

Tuesday 13 April 2021 (12:00-16:25)

  • Welcome and Chair's preview
  • Sustainability
    • Introduction
    • Breakout sessions (closed session)
  • Updates on Trustees and Board’s Activities
  • Feedback from previous Advisory Council meetings
  • Sustainability
    • Report back from breakout sessions
    • Summary by Advisory Council Chair
  • Closing remarks

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

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

EFRAG launches survey on crypto-assets (liabilities)

02 Apr 2021

The European Financial Reporting Advisory Group (EFRAG) is inviting stakeholders to participate in a survey on Discussion Paper (DP) 'Accounting for Crypto-Assets (Liabilities): Holder and Issuer Perspective'.

The DP discusses three categories of crypto-assets (payment tokens/cryptocurrencies, utility tokens, and investment tokens) and proposes three approaches for addressing IFRS related requirements.

In addition, the EFRAG has issued three podcasts which discuss the issues in the DP.

Please click for more in­for­ma­tion and access to the survey on the EFRAG website.

CMAC (Capital Markets Advisory Committee) (mid blue) Image
GPF (Global Preparers Forum) (mid blue) Image

Summaries of the March 2021 CMAC and GPF meetings

01 Apr 2021

Representatives from the International Accounting Standards Board (IASB) met with both the Capital Markets Advisory Council (CMAC) on 11 March 2021 and with Global Preparers Forum (GPF) on 12 March 2021 by video conference. Notes and recordings from the joint meeting have now been released.

The topics discussed at the CMAC meeting included:

  • Post-implementation Review of IFRS 9—Classification and Measurement
  • Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12
  • Rate-regulated Activities
  • Business Combinations Under Common Control

See the meeting summary on the IASB website.

The topics discussed at the GPF meeting included:

  • Sustainability Reporting
  • Post-implementation Review of IFRS 9—Classification and Measurement
  • Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12
  • Rate-regulated Activities
  • IFRS Interpretations Committee update

See the meeting summary on the IASB website.

IFRS Foundation (blue) Image

IFRS Foundation publishes its 2020 annual report

01 Apr 2021

The IFRS Foundation has published its annual report and audited financial statements for the year ended 31 December 2020.

The report for 2020 provides an overview of the IFRS Foundation’s activities during the past year and sets out the Foundation’s and IASB’s priorities for 2021.

For more information, see the press release and annual report (available in PDF format, inline XBRL version and XBRL files) on the IASB website.

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

EFRAG issues final endorsement advice on IFRS 17 including June 2020 amendments

31 Mar 2021

The European Financial Reporting Advisory Group (EFRAG) has submitted final endorsement advice on IFRS 17 ‘Insurance Contracts’ including the June 2020 amendments to the European Commission.

EFRAG assesses that “on a consensus basis that, apart from the requirement to apply annual cohorts to intergenerationally-mutualised and cash-flow matched contracts, all the other requirements of IFRS 17, on balance (i) meet the qualitative characteristics of relevance, reliability, comparability and understandability required to support economic decisions and the assessment of stewardship, raise no issues regarding prudent accounting, and that they are not contrary to the true and fair view principle; and (ii) are conducive to the European public good.” EFRAG did not reach a consensus related to the requirement to apply annual cohorts to intergenerationally-mutualised and cash-flow matched contracts. Seven EFRAG Board members believe that the annual cohorts requirement meets the endorsement criteria, whereas seven EFRAG Board members believe it does not and two EFRAG Board members abstained.

For more information, see the press release which includes links to the final endorsement advice package on the EFRAG website. In addition, the EFRAG endorsement status report has been updated.

IASB document (blue) Image

IASB extends practical relief regarding COVID-19-related rent concessions

31 Mar 2021

The International Accounting Standards Board (IASB) has published 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' that extends, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

 

Background

In May 2020, the IASB issued Covid-19-Related Rent Concessions (Amendment to IFRS 16). The pronouncement amended IFRS 16 Leases to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. On issuance, the practical expedient was limited to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2021.

Since lessors continue to grant COVID-19-related rent concessions to lessees and since the effects of the COVID-19 pandemic are ongoing and significant, the IASB decided to extend the time period over which the practical expedient is available for use.

 

Changes

The Changes in Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) amend IFRS 16 to

  1. permit a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021);
  2. require a lessee applying the amendment to do so for annual reporting periods beginning on or after 1 April 2021;
  3. require a lessee applying the amendment to do so retrospectively, recognising the cumulative effect of initially applying the amendment as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the annual reporting period in which the lessee first applies the amendment; and
  4. specify that, in the reporting period in which a lessee first applies the amendment, a lessee is not required to disclose the information required by paragraph 28(f) of IAS 8.

 

Effective date

The amendment is effective for annual reporting periods beginning on or after 1 April 2021 (earlier application permitted, including in financial statements not yet authorised for issue at the date the amendment is issued).

 

Dissenting opinion

The final amendment includes a joint dissenting opinion by Board members Nick Anderson and Zachary Gast. They voted against publication of the final amendments noting that when the practical expedient was initially offered, its application was limited to a very specific timeframe. Extending the period during which the practical expedient is available does further impede comparability between lessees that apply the practical expedient and those that do not. They also note that support from users of financial statements for the original amendment was based on limiting the practical expedient to a specific time frame. In addition, they highlight that lessees are no longer applying IFRS 16 for the first time.

 

Additional information

Please click for:

 

IOSCO (International Organization of Securities Commissions) (dark gray) Image
Leaf - sustainability (green) Image

IOSCO sets up working group to support the IFRS Foundation sustainability initiative

31 Mar 2021

The International Organization of Securities Commissions (IOSCO) has announced the establishment of a new Technical Expert Group (TEG) under its Sustainable Finance Task Force (STF) that will work closely with the IFRS Foundation’s working group on its sustainability project.

The new TEG will be tasked with reviewing and assessing technical recommendations focused on enterprise value creation that will be developed the working group recently set up by the IFRS Foundation to prepare for a potential international Sustainability Standards Board (SSB). The working group's tasks also include planned work to further refine the prototype climate-related disclosure standard, its content, and industry-specific metrics. IOSCO has been invited to join the IFRS Foundation working group as an observer.

Please click to access the announcement of the new TEG on the IOSCO 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.