Standard-setting activities & insights
International Financial Reporting Standards
Proposed amendments to IFRS 2 Share-based Payment
On November 25, 2014, the IASB published an Exposure Draft (ED) of proposed
amendments to IFRS 2 Share-based Payment, which would clarify the
classification and measurement of share-based payment transactions. The ED
addresses several requests the IASB and the IFRS Interpretations Committee
received and the IASB decided to deal with in one combined narrow-scope project.
Comments are requested by March 25, 2015.
November 2014 IASB meeting minutes
On November 24, 2014, the IASB published the minutes of its meeting on November
19 and 20, 2014. The following projects were discussed: (i) IFRS for SMEs:
Comprehensive Review 2012–2014; (ii) Insurance Contracts; (iii) Conceptual
Framework; (iv) Disclosure Initiative; (v) Leases; and Emission Trading Schemes.
IASB updated work plan
On November 24, 2014, following its November meeting,
the IASB issued its updated work plan. The revised plan
adds a target date for amendments to IFRS for SMEs (Q1/
2015) and a timeframe for the comment letter analysis
(Q1/ 2015) on the discussion paper on macro hedging.
Further, the IASB now expects to issue an Exposure Draft
on the elimination of gains or losses arising from
transactions between an entity and its associate or
joint venture in Q1/2015 (previously Q4/2014). Lastly,
it includes updates to the expected timing of board
discussions for the short-term research projects on
business combinations under common control (Q1/2015),
discount rate (Q1/2015), emissions trading scheme
(Q4/2014 through Q1/2015), equity method (Q4/2014
through Q2/2015), and financial instruments with
characteristics of equity (Q4/2014), as well as,
long-term research project on post-employment benefits
(Q1/2015 and Q2/2015).
October 2014 ITCG Meeting Summary
On November 20, 2014, the IASB posted the minutes of the
Taxonomy Consultative Group (ITCG) meeting held on
October 28, 2014. Topics discussed were: the IFRS
Taxonomy—overview of current and future activities;
using the IFRS Taxonomy— a regulator's guide; management
of entity-specific disclosures; IFRS Taxonomy content
review—new or amended Standards; IFRS Taxonomy
content—common practice; use of the Versioning 1.0
Specification; and updates from ITCG members and
observers.
November 2014 IFRIC Update
On November 19, 2014, the IASB posted the IFRIC Update
in respect of the IFRIC meeting held on November 11,
2014. The meeting covered (a) Items on the current
agenda including issues related to IFRS 5, IAS 2, IAS
12, IAS 16, IAS 21, and IAS 32/IAS 37; (b) Issues
considered for Annual Improvements including IAS 19 and
IAS 28; (c) Interpretations Committee agenda decisions;
and (d) Interpretations Committee tentative agenda
decisions.
November 2014 AcSB
Decision Summary
On November 18, 2014, the AcSB posted the Decision
Summary in respect of its meeting on November 5 and 6,
2014. Among the items discussed were: AcSB Exposure
Drafts of IFRS Proposals; Adoption of IFRSs; OSFI Draft
Advisory; and Rate-regulated Activities.
Accounting Standards for Private Enterprises
November 2014 AcSB Decision Summary
On November 18, 2014, the AcSB posted the Decision Summary in respect of its
meeting on November 5 and 6, 2014. Among the items discussed were: 2015 Annual
Improvements; and Enterprises Permitted to Apply Accounting Standards for
Private Enterprises.
Public Sector Accounting Standards
Amendments to the Introduction to the PSA Handbook
On November 28, 2014, Filing Instruction No. 41 to the
PSA Handbook was issued containing the amendments to the
Introduction to the PSA Handbook approved by the PSAB at
its meeting on September 15-16, 2014. The Introduction
has been amended under date of December 2014 to: (i)
introduce the term public sector entity; (ii) define a
government component; (iii) amend the definition of a
government organization; (iv) include specific
definitions of all types of government organizations and
partnerships; and (v) provide guidance as to the basis
of accounting to be used by government components,
organizations and partnerships, where the partnerships
have two or more public sector entity partners.
Editorial changes have also been made in other standards
as a consequence of the amendments to the Introduction.
PSAB Matters
On November 27, the PSAB issued the November 2014 issue
of this e-newsletter includes a message from the Chair,
an article on transition to the Financial Instruments
standard, and other articles relevant to public sector
stakeholders.
US GAAP
US GAAP Plus Weekly Roundup
Do not miss Weekly Roundup, prepared by Deloitte US’ Accounting Standards
& Communications group, is a digest of news, developments, and Deloitte
publications related to U.S. and international accounting topics.
Assurance
Proposed Joint Policy Statement Concerning Communications with Law Firms Regarding Claims and Possible Claims in Connection with the Preparation and Audit of Financial Statements
On November 27, 2014, the AASB and the JPS Review Committee of The Canadian Bar
Association have issued an Exposure Draft proposing a revised Joint Policy
Statement. Stakeholders are encouraged to submit their comments by April 6,
2015.
CPAB 2014 Public Report on Canada’s Big Four audit firms
On November 25, 2014, CPAB issued its 2014 Public Report, which is
its first annual inspections report focused on Canada’s Big Four audit firms.
CPAB’s 2014 inspection findings show a positive trend across the Big Four firms.
There were 98 (2013:105) Big Four engagement files inspected and an overall
improvement in audit quality was found, including a 36 per cent decline (2013:43
per cent) in files with significant audit deficiencies. Since 2011, when CPAB
issued its call to action to improve audit quality, the number of files
inspected by CPAB with significant audit deficiencies has declined overall by
more than two-thirds.
CPAB notes that, while the firms have responded to its call to action, there is
still more to do to achieve sustainable audit quality. Even though each firm is
actively pursuing audit quality goals, not all are in the same place when it
comes to implementation or results. While no new audit quality themes emerged in
2014 among the Big Four firms, CPAB’s inspections indicate that challenges
persist in the areas of: (i) auditing complex accounting estimates; (ii)
auditing in foreign jurisdictions; (iii) understanding and evaluating internal
controls; (iv) applying professional judgment; and (v) executing professional
skepticism.
Audit Committee Oversight of Foreign Operations
On November 21, 2014, in this bulletin, CPAB notes that independent auditor
oversight can be a challenge for audit committees of reporting issuers with
operations in foreign jurisdictions. Operational, financial and reputational
risks stemming from foreign jurisdictions can impact the quality of the
audit and expose directors to greater liability.
Audit Quality Indicators
On November 21, 2014, in this bulletin, CPAB discusses various international
efforts to develop a portfolio of quantitative measures which would provide
insight into audit quality that an audit firm could share publicly or with audit
committees and which would facilitate dialogue on the drivers of audit quality.
Assurance on integrated reporting
In this interview, Robert Bruce, Deloitte financial journalist, speaks with
Michael Nugent, Technical Director, Framework Development, International
Integrated Reporting Council (IIRC). They discuss the possible options for
assurance on integrated reporting considering the
two papers on assurance that the IIRC issued for comment in July 2014
(comments closed on December 1, 2014) and the comments that have been raised at
roundtables that have taken place around the world on this topic.
Standard–setting governance activities
Assessing and reporting the likely effects of proposed IFRS
On November 28, 2014, the Effects Analysis Consultative Group published a series
of recommendations on how the IASB could strengthen its assessment of the likely
effects of proposed IFRS.
AcSB Annual Report
On November 27, 2014, the Accounting Standards Board released its 2013-2014
report which includes information on the activities of the AcSB, as well as a
message from the Chair, Linda F. Mezon.
AcSOC Annual Report
On November 25, 2014, the Accounting Standards Oversight Council released its
2013-14 annual report which provides information on the activities and
performance of both the AcSB and PSAB.
Cross-Border Regulation
On November 25, 2014, the International Organization of Securities Commissions
published a consultation report which identifies and describes cross-border
regulatory tools and challenges.
2013 IESBA Annual Report
On November 19, 2014, the International Ethics Standards
Board for Accountants (IESBA) released its 2013 Annual
Report, Reinforcing Trust in the Profession. The
report provides a summary of the IESBA’s 2013
achievements and includes developments on key projects
and initiatives that have continued to progress
throughout 2014. In particular, it highlights the
board’s extensive efforts in reaching out to
stakeholders, and the developments of the board that
centered on building public trust in both the profession
and the IESBA’s Code of Ethics for Professional
Accountants.
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