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News

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Global accountancy bodies call for improved SDG disclosures

20 Jan 2020

The International Federation of Accountants (IFAC), the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants of Scotland (ICAS), the Chartered Accountants Australia and New Zealand (CA ANZ), the International Integrated Reporting Council (IIRC) and the World Benchmarking Alliance have jointly published a report calling for improved UN Sustainable Development Goals (SDG) disclosures.

The report follows on the consultation paper Recommendations for SDG Disclosures and considers feedback from the consultation. The recommendations for SDG Disclosure are designed to be both used in conjunction with existing reporting frameworks and neutral with respect to them. The recommendations are also SDG specific, recognising the complexity and interconnectedness of the sustainable development issues that the SDGs address.

Please click for the following information on the IIRC website:

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CMAC seeks members

17 Jan 2020

The Capital Markets Advisory Committee (CMAC) is seeking new members and welcomes applications from analysts and investors from all over the world.

New members will start on 1 January 2021 for a term of three years, renewable once for a further three years. For more information, see the press release on the IASB website.

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European Union formally adopts IBOR amendments

16 Jan 2020

The European Union has published a Commission Regulation endorsing 'Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)'.

The amendments are a first reaction to the potential effects the IBOR reform could have on financial reporting and deal with pre-replacement issues (issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark); the IASB has already begun work on a second phase of the project that deals with replacement issues (issues that might affect financial reporting when an existing interest rate benchmark is replaced).

The European Union effective date is the same as the IASB effective date (1 January 2020).

The Commission Regulation amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council was published in the Official Journal of the European Union on 16 January 2020.

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GPF seeks members

15 Jan 2020

The Global Preparers Forum (GPF) is seeking new members with an emphasis for candidates from Africa, Asia-Oceania, and European regions with a background in technology and/or retail.

New members will start on 1 March 2020 for a term lasting between two-to-five years. For more in­for­ma­tion, see the press release on the IASB’s website.

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AcSB and ASBJ hold joint meeting

14 Jan 2020

On 13 January 2020, the Canadian Accounting Standards Board (AcSB) and the Accounting Standards Board of Japan (ASBJ) held a joint meeting in Toronto. The meeting was the first bilateral meeting between the two standard-setters.

At the meeting, the AcSB and the ASBJ both introduced their respective financial reporting frameworks and activities, and exchanged views on the opportunities for cooperation. They also discussed specific technical topics in which both Boards have interest, including insurance, revenue recognition and leases. The two standard-setters plan to continue to exchange views.

For more information about the meeting, see the press release on the ASBJ website.

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Summary of the December 2019 MCCG meeting

13 Jan 2020

The IASB has published a summary of the Management Commentary Consultative Group (MCCG) meeting held on 13 December 2019.

The meeting focused on topics for further input, an overview of the staff’s current proposals, and supporting the adoption of the Practice Statement.

The topics for further input were:

  • information on intangibles and ESG matters in management commentary;
  • the meaning of ‘management’s view’;
  • the entity’s purpose; and
  • guidance on narrative coherence.

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

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ICAS report on fair value measurement of financial instruments

13 Jan 2020

The Institute of Chartered Accountants of Scotland (ICAS) has released a report examining the preparation and evaluation of fair value measurements for financial instruments reported in the financial statements.

ICAS joined forces with the International Association of Accounting Education and Research (IAAER) and the International Audit and Assurance Standard Board (IAASB) to commission qualitative research on the valuation of financial instruments. Previous research had been done from the perspective of auditors, but this research focuses on the perspective of the valuation specialist.

While the report notes no distinct differences across geographical regions, it analyses pressure points and potential conflicts in the four phases of the production of fair value measurements reported in financial statements: 1) project acquisition and planning; 2) scoping, valuation approach, and methodology; 3) estimate preparation and relationship management; and 4) negotiations and final estimate reporting.

The report does include some policy recommendations for regulators, standard-setters, and other stakeholders:

  • Auditors and regulators should consider the relative advantages and disadvantages of adopting the independent estimate approach as best practice when evaluating clients’ fair value measurements;
  • Standard-setters should consider strengthening auditor awareness of the effects of budget and timeline pressures, and scope constraints, and encourage a more collaborative team-based approach between auditors and specialists;
  • Regulators should consider incorporating an evaluation of management’s competence related to fair value measurements as a component of the auditors’ risk assessment process; and
  • Standard-setters should consider enhancing corporate governance by promoting understanding of the subjectivity inherent in fair value measurements among the board and audit committees.

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

 

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Agenda and pre-meeting summaries for the January 2020 IFRS Interpretations Committee meeting

09 Jan 2020

The IFRS Interpretations Committee will hold a video meeting on Tuesday 21 January 2020 to finalise one agenda decision.

The whole meeting is scheduled to last only 30 minutes.

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

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EFRAG notes possible EU endorsement of IBOR amendments "by mid-January"

08 Jan 2020

The European Financial Reporting Advisory Group (EFRAG) has published an updated endorsement status report to provide additional guidance on when endorsement of the two amendments to IFRSs that became effective on 1 January 2020 but have not been endorsed for use in the European Union yet might be expected.

The amendments are Definition of a Business (Amendments to IFRS 3) and Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7).

On the IFRS 3 amendments EFRAG notes: "The required scrutiny period by the European Parliament will only conclude mid-March 2020. The finalisation of the process will then proceed as usual."

On the IBOR amendments, the report states: "Almost all formalities for endorsement have been completed. Without pre-empting the final adoption procedures, the amendments could be adopted by mid-January followed by publication in the Official Journal."

Please click to access the updated status report.

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IASB publishes overview of consultation documents to be expected in 2020

08 Jan 2020

In 2020, the IASB plans to publish a number of consultation documents, including a discussion paper on goodwill and impairment, an exposure draft in its management commentary (wider corporate reporting) project, and a request for information regarding the 2020 Agenda consultation.

The full list of consultations to be expected and the currently expected timing is given below:

Project Type of consultation document When to be expected?
Goodwill and impairment Discussion paper Q1 2020
Comprehensive review of the IFRS for SMEs Request for information Q1 2020
Business combinations under common control Discussion paper Q2 2020
IBOR reform and its effects on financial reporting — Phase 2 Exposure draft Q2 2020
Rate-regulated activities Exposure draft Q2 2020
Post-implementation review of IFRS 10, IFRS 11, and IFRS 12 Request for information Q2 2020
Disclosure initiative — Targeted standards-level review of disclosures Exposure draft H2 2020
Management commentary (wider corporate reporting) Exposure draft H2 2020
2020 Agenda consultation Request for information H2 2020

A corresponding press release is available on the IASB website.

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