The endorsement status report notes the following changes:

• The issue of Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) on 21 November 2013, which is effective for annual periods beginning on or after 1 July 2014.  The report indicates the endorsement is currently expected in the third quarter of 2014*
• The issue of Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) on 19 November 2013, which introduced the general hedge accounting requirements to IFRS 9 and removed the mandatory effective date. Accordingly, the effective date of IFRS 9 was taken out of the report
• The fact that the Accounting Regulatory Committee’s opinion on IFRIC 21 Levies will be voted in a future meeting.  The report notes that endorsement is expected in the second quarter of 2014.

* These amendments were already included in the endorsement status report dated 27 November 2013.

The endorsement status report, dated 2 December 2013, is available here.

The report follows an earlier consultation on the suitability of International Public Sector Accounting Standards (IPSAS) for EU member states, which lead to the publication of a report in March 2013. This report found that whilst IPSAS as they stood could not be implemented in EU member states, they could form a strong starting reference for EU harmonised European Public Sector Accounting Standards (EPSAS), to be applied by all general government public entities.

Following the release of the IPSAS report, Eurostat organised a conference in Brussels in May 2013 to discuss the EPSAS project, and one of the key issues identified for follow up was that of governance. The IPSAS report noted that the governance of IPSAS "suffers from the insufficient participation in practice of EU public-sector accounting authorities".

The consultation paper outlines the key principles related to the EPSAS governance structure and process, including professional independence, impartiality, legitimacy, transparency, competence and capacity, cost effectiveness and accountability. In terms of the EPSAS standards themselves, the paper posits the following principles: reliability, relevance, coherence and comparability, and accessibility and clarity.

The proposed implementation of EPSAS would be rooted in a legal basis for EPSAS through a EPSAS Framework Regulation that would:

• Define EPSAS governance and establish an 'EPSAS Committee'
• Define the due process to adoption EPSAS standards, the central element of which would be newly established EPSAS Committee
• Define the principles underlying EPSAS governance, including providing a basis to ensure direct participation of national standard-setters and government accounting authorities in the standard setting process, and providing oversight by the European Commission, as well as by the Council, the European Parliament and the European Court of Auditors
• Set core requirements of EPSAS, e.g. based on accrual accounting and using double-entry
• Confirm IPSAS as the starting point for the development of EPSAS.

The EPSAS Committee would be chaired and represented by the European Commission and be comprised of high-level member state representatives, with a limited number of non-voting observers. The committee would put in place a work programme for the development of EPSAS and would be directly involved in the decision making process. EPSAS Standards Working Groups would also be established to support the committee's work, and involve technical accounting experts from public sector standard setters and government accounting authorities - these working groups would be involved in the drafting of EPSAS standards and also resolve interpretation requests in an authoritative manner.

The report also entertains two optional components of any EPSAS governance structure, namely a 'EPSAS Governance Advisory Board' (EPSAS GAB) which might be entrusted with specific EPSAS oversight tasks, and an 'EPSAS Technical Advisory Group', which could liaise with a wide range of stakeholders including the International Public Sector Accounting Standards Board (IPSASB), government finance statisticians, supreme audit institutions, public and private accounting experts, academics and end users.

The consultation paper is open for comment until 17 February 2014, and comments are requested to be submitted in the form of questionnaire. The questionnaire asks specific questions on the relevance of the key governance principles, the institutional arrangements proposed for governance oversight, the desirability of the possible EPSAS GAB and EPSAS Technical Advisory Group and how these might be structured, and whether, and if so how, an interpretation function should be considered.

Click for:

• Background to the consultation process (link to Eurostat website)
• Public consultation paper Towards implementing European Public Sector Accounting Standards (EPSAS) for EU Member States - Public consultation on future EPSAS governance principles and structures (link to Eurostat website)
• Online questionnaire (link to Eurostat website, a PDF version is also available).

The full agenda for the meeting, dated 29 November 2013, can be found here.  We will post any updates to the agenda, and our Deloitte observer notes from the meeting, on this page as they are available.

Enlarging EFRAG's General Assembly to include National Funding Mechanisms (NFM) and welcome other European organisations is aimed at satisfying an earlier request of NFM (more particularly those set in France, Germany, Italy and the UK) to gain greater ownership and responsibility in EFRAG and it is also intended as an encouragement for Member States that do not yet have such a mechanism to set up one up.

NFM (national systems that collect contributions to fund EFRAG) exist in Denmark, France, Germany, Italy, Norway, Sweden and the UK and until 2010, EFRAG was entirely funded by its Member Organisations and the NFM. Since 2010, the European Commission contributes to the funding through a grant but Mr Maystadt warned in his report that "due to budgetary constraints, the EU grant for 2014 will [...] be decreased".

The final report had therefore recommended to analyse the legal possibility of establishing a system of compulsory contributions/ levies paid by listed companies that use and benefit from IFRS. Pending the implementation of such a levy system, Mr Maystadt recommended for the meantime that Member States organise a National Funding Mechanism (NFM) if it has not yet been done.

EFRAG still needs to secure its funding for 2014. European funding for the whole year 2014 has not been confirmed as the draft regulation supporting such funding is still being debated by European institutions. EFRAG expects that it will continue to benefit from European funding but delays in issuing the final regulation are likely to delay the payments. Therefore, the EFRAG Supervisory Board has decided to call upon NFM to formalise their financial commitment to EFRAG in 2014 "so that EFRAG can face without any concern any potentially delayed payment of the EC contribution".

Please click for the press release on the EFRAG website.

Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) was issued on 21 November 2013 and clarifies the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. In addition, the amendments permit a practical expedient if the amount of the contributions is independent of the number of years of service, in that contributions, can, but are not required, to be recognised as a reduction in the service cost in the period in which the related service is rendered. 

The amendments are effective for annual periods beginning on or after 1 July 2014, however the endorsement status report indicates that the endorsement process is currently expected in the third quarter of 2014.

The endorsement status report, dated 27 November 2013, is available here.

Highlights of news and developments include:

• FAQ on sustainability reporting. The United Nations Environment Programme (UNEP), Global Reporting Initiative (GRI) and Climate Disclosure Standards Board (CDSB) have collaborated to produce Frequently Asked Questions on Corporate Sustainability Reporting (link to CDSB website). The report seeks to provide context to the work of the 'Group of Friends of Paragraph 47' (formed by the governments of Brazil, Denmark, France and South Africa, and supported by UNEP and the Global Reporting Initiative (GRI) after the Rio+20 conference) and address key questions around sustainability reporting. The questions discuss the context and background to corporate sustainability reporting, the current practices of business, governments and others in sustainability reporting, and opportunities for the further development and increased uptake of corporate sustainability reporting
• IIRC yearbook. The International Integrated Reporting Council (IIRC) has published its IIRC Pilot Programme Yearbook 2013 (link to IIRC website), providing insights into how those responsible for sustainability within organisations are moving towards integrated reporting as part of the IIRC's pilot programme. The document provides insights on how entities have considered the 'capitals' concept in integrated reporting, how integrated reporting impacts the way organisations define value, the critical nature of an entity's business model, the impact of integrated reporting on investors, and the developing regional networks supporting integrated reporting
• UNCTAD and IIRC MoU. The United Nations Conference on Trade and Development (UNCTAD) has signed a Memorandum of Understanding with the International Integrated Reporting Council (IIRC), formalising ongoing collaboration between the UNCTAD and IIRC to to promote the global harmonisation and clarity of reporting frameworks. More information is available in the IIRC newsletter for November 2013 (link to IIRC website)
• UNEP FI roundtable. The United Nations Environment Programme Finance Initiative (UNEP FI) held a global roundtable in Beijing on 12-13 November 2013 focusing on how the finance sector can contribute to global sustainability efforts. The session included the launch of the Online Guide to Banking and Sustainability (link to UNEP FI website), a tool designed to assist financial institutions to understand and implement sustainability based on the UNEP 'Statement of Commitment by Financial Institutions on Sustainable Development' (financial institutions joining the UNEP FI are required to adhere to the statement, which includes requirements around reporting). More information about the roundtable is available at the dedicated UNEP FI website for the event.

Mrs Santana was Chair and President of the Comissao de Valores Mobiliarios (CVM), the Brazilian Securities and Exchange Commission, from 2007 until 2012. In that position, she oversaw the successful transition and adoption of IFRS in Brazil. Mrs Santana also served as Chair of IOSCO's Executive Committee and a member of the International Integrated Reporting Council (IIRC). She replaces Pedro Malan, former Finance Minister of Brazil and former President of the Central Bank of Brazil. Mr Malan's term expires 31 December 2013.

Ms Wood has served as Chairman of the Australian Financial Reporting Council (FRC) and as a member of the New Zealand External Reporting Board (XRB) since 2011. Ms Wood follows Jeffrey Lucy, former Chairman of the FRC and former Chairman of the Australian Securities and Investments Commission (ASIC). Mr Lucy's term also expires 31 December 2013.

Please click for the IFRS Foundation press release on the IASB website.

Click through for direct access to the notes:

Wednesday, 20 November 2013

• Financial instruments — Limited amendments to IFRS 9 (classification and measurement) (IASB/FASB)

Thursday, 21 November 2013

• Financial instruments — Impairment

You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.