Category Archives: EFRAG

The Statement of Cash Flows: issues for Financial Institutions

EFRAG Short Discussion Series – The Statement of Cash Flows: issues for Financial Institutions

EFRAG has published a paper in the Short Discussion Series. This paper discusses the relevance of the Statement of Cash Flows for financial institutions and investigates alternatives that could either supplement or replace the information currently portrayed by these entities in the Statement of Cash Flows.
The EFRAG Short Discussion Series addresses topical and problematic issues with the aim of helping the IASB to address ways to improve financial reporting after having stimulated debate among European constituents and beyond.

The paper discusses how the nature of the business activities of financial institutions may affect the relevance of the statement of cash flows as required by IAS 7 Statement of Cash Flows and discusses two alternatives for these entities:

a)    To replace the statement of cash flows with other disclosures; or

b)    To modify some of the requirements in IAS 7.

Views of constituents are welcomed and requested by 31 March 2016. EFRAG notes that this period is longer than the period normally provided in other Discussion Papers. However, EFRAG is aware that there are a number of issues that will require the attention of European constituents in the coming months, especially the Exposure Draft Conceptual Framework for Financial Reporting, the IFRS Foundation Review, the IASB Agenda Consultation, the forthcoming standard on leases and the finalisation of the Insurance project. During the comment period, EFRAG also wants to gather information from users and preparers in order to build with them proposals after evaluating the alternatives presented in the Discussion Paper.

Document : EFRAG_SDS_The_Statement_of_Cash_Flows_Issues_for_Financial_Institutions.pdf

Joint investor outreach event: Milan—22 October 2015

Joint investor outreach event: Milan—22 October 2015

  • Could the proposals in the Conceptual Framework Exposure Draft make profit or loss (P&L) more useful?
  • What you need to know about IFRS 9 Financial Instruments
The International Accounting Standards Board (IASB), in conjunction with the European Financial Reporting Advisory Group (EFRAG), the European Federation of Financial Analysts Societies (EFFAS) and the Associazione Italiana degli Analisti e Consulenti Finanziari (AIAF), invite investors to participate in a joint outreach event.

We are actively seeking input from investors on the proposed changes to the Conceptual Framework for Financial Reporting. One of the topics we will consider at this event is how to improve the usefulness of the statement of profit or loss (the P&L).

Join us to share your views on how the P&L could better meet your needs:

  • Is the P&L the starting-point for your analysis? If not, what is?
  • Are there items included in the P&L that you eliminate? If so, what are they?
  • Are there items that you need but that you do not find in the P&L?
  • Are there items shown in Other Comprehensive Income (OCI) that you include in your analysis? If you do not use OCI, why not?
  • Should bad news (adverse litigation, for example) be reflected in the P&L earlier than good news that is expected but still uncertain?
  • When assets are measured at fair value through P&L, how do you treat the gains and losses associated with the changes in value during the period?
  • What is the importance of stewardship to your work as an investor?

The discussion will feature a panel of leaders in the investment management industry and the accounting standard-setting community.

It will be followed by an educational session from Fred Nieto, IASB Investor Education Manager, on the new requirements for accounting for financial instruments in IFRS 9. A panel of experts will also report on their first experience and impressions, with an investor focus.

For further details and registration please read the formal invitation here. Please register before October 16

More information about the Conceptual Framework project can be found here.
More information about IFRS 9 Financial Instruments can be foundhere.