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News

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New IASB podcast series

08 Jul 2019

The IASB has launched a new series of quarterly podcasts on the work of the IASB and IFRS Interpretations Committee.

The first podcast (25 minutes) focuses on the June 2019 meeting of the Interpretations Committee. Among the topics covered are questions about applying the new financial instruments, revenue recognition and leases Standards — IFRS 9, IFRS 15 and IFRS 16 — as well as the accounting for holdings of cryptocurrencies.

Please click to access the podcast through the press release on the IASB website.

 

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IASB posts webinar on proposed amendments to IFRS 17

05 Jul 2019

The IASB has posted to its website a webinar offering an overview over the exposure draft ED/2019/4 'Amendments to IFRS 17' published on 26 June 2019.

The webinar is a recording that took place to provide national standard-setters with an overview of the proposed amendments to IFRS 17 right after the exposure draft was published.

Please click to access the 25 minute webinar through the press release on the IASB website.

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SEC names chief accountant

03 Jul 2019

The SEC has appointed Sagar Teotia as chief accountant in the SEC’s Office of the Chief Accountant.

Mr. Teotia had been serving as the Commission’s acting chief accountant since the departure of Wesley Bricker in June. Previously, he has held positions as SEC professional accounting fellow, SEC deputy chief accountant, and partner at Deloitte LLP.

For ad­di­tional in­for­ma­tion, see the press release on the SEC’s Web site.

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CRD position paper on transparency and accountability

03 Jul 2019

The Corporate Reporting Dialogue (CRD), which brings together organisations that have significant international influence on the corporate reporting landscape, has published a position paper noting that he world’s leading financial and non-financial corporate reporting frameworks have the same common foundations, based on the key objectives of transparency and accountability.

The position paper sets out the seven key principles report preparers should follow for achieving such transparency and accountability: materiality, completeness, accuracy, balance, clarity, comparability and reliability. It notes that these common principles are a reminder that the CRD participants have similar expectations from companies in preparing and disclosing information but also states that transparency needs accountability in order to drive effective behaviour or performance: disclosing in itself is not enough if those holding to account do not have the power to influence the behaviour or performance.

The position paper follows an earlier paper on SDGs and the future of corporate reporting and a consultation better alignment through an online survey and a series of global roundtables held in Australia, Colombia, France, Germany, Italy, Japan, Malaysia, Poland, South Africa, US and UK from March until June 2019.

Please click for the following additional information on the CRD website:

 

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IASB posts webcast on IFRS IC and IASB agenda decisions

02 Jul 2019

In April 2019, the Trustees of the IFRS Foundation issued an updated IFRS Foundation Due Process Handbook for public comment. Clarifications regarding the role and status of agenda decisions published by the Interpretations Committee (IFRS IC) and amendments to make agenda decisions a tool for the Board were the most prominent proposed amendments.

In the context of the proposed amendments, the IASB has posted a webcast with IASB Chair Hans Hoogervorst, IASB Vice-Chair Sue Lloyd and IFRS Foundation staff member Sam Prestidge that discusses some of the main elements of due process around agenda decisions.

The 13 minute webcast can be accessed through the press release on the IASB website.

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Hyperinflationary economies - updated IPTF watch list available

02 Jul 2019

IAS 29 'Financial Reporting in Hyperinflationary Economies' defines and provides general guidance for assessing whether a particular jurisdiction's economy is hyperinflationary. But the IASB does not identify specific jurisdictions. The International Practices Task Force (IPTF) of the Centre for Audit Quality (CAQ) monitors the status of 'highly inflationary' countries. The Task Force's criteria for identifying such countries are similar to those for identifying 'hyperinflationary economies' under IAS 29.

The IPTF's discussion document for the 21 May 2019 meeting is now available and states the following view of the Task Force:

Countries with three-year cumulative inflation rates exceeding 100%:

  • Angola
  • Argentina
  • Democratic Republic of Congo
  • South Sudan
  • Sudan
  • Venezuela

Countries with projected three-year cumulative inflation rates exceeding 100%:

  • Islamic Republic of Iran
  • Yemen
  • Zimbabwe

Countries where the three-year cumulative inflation rates had exceeded 100% in recent years:

There are no countries in this category for this period.

Countries with recent three-year cumulative inflation rates exceeding 100% after a spike in inflation in a discrete period:

  • Suriname

Countries with projected three-year cumulative inflation rates between 70% and 100% or with a significant (25% or more) increase in inflation during the current period

  • Liberia
  • Libya

The full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force are available on the CAQ website. We also offer the overview of the IPTF's assessment of hyperinflationary jurisdictions at the end of our summary of IAS 29.

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Updated IPSAS-IFRS alignment dashboard

02 Jul 2019

The International Public Sector Accounting Standards Board (IPSASB), which develops the of International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, has released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRSs.

The alignment dashbord was updated for the June 2019 IPSASB meeting. It also offers a table showing for which IFRSs there is no IPSAS equivalent and whether the IPSASB intends to fill that gap.

Please click to access the updated dashboard on the IPSASB website.

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EFRAG draft comment letter on proposed amendments to IFRS 3 regarding a reference to the Conceptual Framework

28 Jun 2019

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ‘Reference to the Conceptual Framework (Proposed amendments to IFRS 3)'

The exposure draft contains three proposed amendments to IFRS 3 'Business Combinations' that would update an outdated reference in IFRS 3 without significantly changing the requirements of the standard.

EFRAG agrees with all three proposed amendments.

Comments on EFRAG's draft comment letter are requested by 17 August 2019. For more information, see the press release and the draft comment letter on the EFRAG website.

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IASB issues podcast on latest Board developments (June 2019)

27 Jun 2019

The IASB has released a podcast featuring IASB members Nick Anderson, Darrel Scott and Ann Tarca to discuss the deliberations at the June 2019 IASB meeting and other developments.

The podcast features dis­cus­sions of the following topics in more detail (length of the podcast: 20 minutes):

  • Goodwill and impairment.
  • Primary financial state­ments.
  • Rate-regulated activities.
  • 2019 review of the IFRS for SMEs Standard.
  • Financial instruments with characteristics of equity.
  • Business combinations under common control.

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 at the June IASB meeting.

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IASB publishes proposed amendments to IFRS 17

26 Jun 2019

The International Accounting Standards Board (IASB) has published an exposure draft 'Amendments to IFRS 17' to address concerns and implementation challenges that were identified after IFRS 17 'Insurance Contracts' was published in 2017. Comments are requested by 25 September 2019.

 

Background

Since IFRS 17 Insurance Contracts was issued in May 2017, the Board has been monitoring the implementation and has learned about concerns and implementation challenges. The Board had previously indicated that it would consider whether additional action is needed to address matters arising during implementation. At the October 2018 meeting of the Board a list of 25 potential amendments to the standard was identified and the criteria against which any possible amendment would be considered were agreed. 

Subsequent discussions in the project on possible amendments to IFRS 17 led to the proposed amendments that are included in today's exposure draft.

 

Suggested changes

The main changes proposed in ED/2019/4 Amendments to IFRS 17 are:

  • Deferral of the date of initial application of IFRS 17 by one year to annual periods beginning on or after 1 January 2022 and change the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2022.
  • Additional optional scope exclusion for loan contracts that transfer significant insurance risk and related transition requirements to enable entities issuing such contracts to account for those contracts applying either IFRS 17 or IFRS 9.
  • Additional scope exclusion for credit card contracts that provide insurance coverage.
  • Amendments regarding allocation, recognition, assessment of the recoverability, and disclosure regarding insurance acquisition cash flows relating to expected contract renewals.
  • Amendments regarding the contractual service margin (CSM) allocation relating to investment components and related disclosure requirements so that in the general model the CSM is allocated on the basis of coverage units that are determined by considering both insurance coverage and any investment return service.
  • Extension of the risk mitigation option to include reinsurance contracts held.
  • Amendments to require an entity that at initial recognition recognises losses on onerous insurance contracts issued to also recognise a gain on reinsurance contracts held.
  • Simplified presentation of insurance contracts in the statement of financial position so that entities would present insurance contract assets and liabilities in the statement of financial position determined using portfolios of insurance contracts rather than groups of insurance contracts.
  • Additional transition relief for business combinations.
  • Additional transition relief for the date of application of the risk mitigation option and the use of the fair value transition approach.

The exposure draft also contains several smaller proposed amendments.

Comments on the proposed changes are requested by 25 September 2019.

 

Effective date

The proposed effective date for the amendments would be the same as the proposed new effective date for IFRS 17 (1 January 2022) with early application permitted. The amendments would be applied retrospectively.

 

Additional information

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