Category Archives: IASB

How well do you know your IFRS Standards?

The IFRS Foundation is inviting people to test their knowledge of IFRS Standards and their use around the world, today releasing an updated version of the popular online IFRS Quiz.

The quiz is based on the 2016 Pocket Guide to IFRS Standards: the global financial reporting language. It provides students, educators and other interested parties with a free-of-charge resource to assess their knowledge of IFRS Standards, the IFRS Foundation structure, and the standard-setting process.

First launched in 2014, the quiz is available in both English and Spanish and has been taken more than 45,000 times. The updated version has been revised to include, among other things, the requirements of new and amended IFRS Standards such as IFRS 15Revenue from Contracts with Customers and IFRS 16 Leases.

The IFRS Quiz is available here.

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Is EBITDA a Non- IFRS number?

Surprise, surprise! EBITDA does not have to be a ‘non-IFRS’ number This is one of the most surprising takeaways we hear from investors when they read The Essentials— Presentation of Financial Statements, our investor publication that covers key elements of IAS 1 Presentation of Financial Statements, and explains how investors can make the most of the information presented.

Read more

Live web presentations on the new Leases Standard, Jan 13, 9am GMT

The staff of the International Accounting Standards Board® will hold two live web presentations on the new Leases Standard on 13 January 2016, the day the Standard will be issued.

For the convenience of stakeholders around the world, there will be one presentation held in the morning and one in the afternoon. Both presentations will provide an overview of the new requirements, followed by an opportunity for participants to ask questions. Each presentation, including Q&A, will last approximately 45 minutes.

Register to watch ‘Introducing the new Leases Standard’

There is no charge to listen to the web presentation but a registration is required. To register for the webcast, click on the ‘Register’ link below.

Date/Time (GMT) Register
9am Wednesday 13 January 2016 Click here
3pm Wednesday 13 January 2016 Click here

 

 

Issue 7 of the IASB Investor Update: Spotlight on Financial instruments

Issue 7 of the IASB Investor Update

Investor Update aims to make it easy for investors to keep up with changes in the world of International Financial Reporting Standards (IFRS) and how those changes may affect an investor’s day job.

Each issue profiles recently introduced Standards, or changes that are in the pipeline, and how they may alter the way in which you look at companies and analyse performance. We highlight events and publications that are of interest to investors. We also tell you when and how you can best share your thoughts on the direction we are taking.

Click here to read the October 2015 Investor Update.

In this issue:

  • Spotlight: Financial instruments—a focus on the new disclosure requirements in IFRS 9Financial Instruments;
  • In profile: views from Marietta Miemietz, Director and Co-founder of Primavenue, on the financial reporting debate and the work of the CFA UK’s Financial Reporting and Analysis Committee;
  • Shaping the future in 15 minutes: Alison Thomas, former portfolio manager and founder of the Corporate Reporting Users’ Forum, discusses why investors should invest 15 minutes in an online survey on the IASB’s Agenda Consultation;
  • We need your views: current projects that need input from the investment community; and
  • Stay up to date: information on investor materials and current events.

Webinar : Exposure Draft of the IFRS Practice Statement: Application of Materiality to Financial Statements, Nov 19, 10am GMT

This Thursday the IASB will give a live web presentation on the Exposure Draft of the IFRS Practice Statement Application of Materiality to Financial Statements.

IASB Executive Technical Director Hugh Shields and IASB staff will introduce the Exposure Draft, which was published on 28 October 2015, and answer questions from the public.

The Exposure Draft has been developed to assist management in applying the concept of materiality (as required by IFRS) in the preparation of financial statements. The Exposure Draft is open for comment until 26 February 2016.

The presentation will last approximately 45 minutes, including questions and answers.

Click on the icon below to register for the webinar.

Date/Time (GMT) Topic Register
Thursday 19 November 2015
10.00am GMT
Draft Practice Statement: Application of Materiality to Financial Statements

For more details, click here.

IASB Investor perspective: ‘Taking a measured approach’

The question of how best to measure an asset or liability (cost versus current value) always provokes a heated debate. In this article Steve Cooper, a member of the IASB, explains the IASB’s proposals on measurement that are part of the Conceptual Framework project.

In particular, Cooper discusses the factors that the IASB should consider when selecting a measurement method.

Click here for the article

http://www.ifrs.org/Investor-resources/Investor-perspectives-2/Documents/Investor-Perspectives_Taking-a-measured-approach.pdf

 

Can auditors expand assurance to meet investors’ needs? Shouldn’t it be mandatory?

Can auditors expand assurance to meet investors’ needs?

A company’s audited financial statements are among the many pieces of information investors consider when they evaluate where to allocate resources.

But news releases, company presentations, additional information in annual reports, and non-GAAP key performance indicators and financial metrics are also sources of information available to investors.

Read the entire Article 

IASB : impairment requirement will result in fundamental change

Speaking today at a conference in London, Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), said the forward-looking expected loss model in the new financial instruments Standard should provide investors with better insight on loan loss risks.

The conference is the third annual event for financial services institutions organised jointly by the IFRS Foundation and ICAEW. This year’s event is focussed specifically on the practical implementation of the impairment element of the financial instruments Standard, IFRS 9. The Standard was finalised in 2014 and becomes effective in 2018.

The new Standard requires banks to recognise 12 months’ expected losses on loans that perform as anticipated and full lifetime losses on loans that have experienced a significant increase in credit risk.

Read the full press release and access the speech here.

Historical cost and fair value are not as far apart as they may seem

Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), has today delivered a speech on what he calls one of the most difficult topics in accounting—how assets and liabilities should be measured. Speaking at the IFRS Foundation’s conference in Paris, he presented high-level, general observations on when historical cost and current value measurement could be most appropriate.

When measuring an asset or a liability, different measurement models are available: historical cost and current value, which includes fair value. They are often seen to be at opposite ends of the measurement spectrum, and both have their own ‘fan clubs’ with strong views on which is the better model.

Hoogervorst outlined the benefits and challenges linked to the measurement models and said the differences between them are not as great as they may seem.

Read the full press release here.

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.

IASB Webcast Series : Possible implications of the proposals—with provisions and contingent liabilities case study

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Possible implications of the proposals—with provisions and contingent liabilities case study Thursday 24 September Watch here

 

 

IASB Webcast Series : Proposed Conceptual Framework : objectives and qualitative characteristics

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Chapters 1 and 2—objectives and qualitative characteristics Thursday 17 September Watch here

IASB Webcast Series : Proposed Conceptual Framework : the reporting entity

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Chapter 3—the reporting entity Watch here

IASB Webcast Series : Proposed Conceptual Framework : derecognition of assets and liabilities

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Chapter 5—derecognition of assets and liabilities Thursday 3 September Watch here

 

IASB Webcast Series : Proposed Conceptual Framework : classification of income and expenses (profit or loss vs. OCI)

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

 

Chapter 7—classification of income and expenses (profit or loss vs OCI) Thursday 27 August Watch here

IASB Webcast Series : Proposed Conceptual Framework : measurement

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Chapter 6—measurement Thursday 20 August Watch here

IASB Webcast Series : Proposed Conceptual Framework : a closer look at liabilities and executory contracts

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Below is an overview of the topics that are covered and the dates the presentations will become available.

Chapter 4—a closer look at liabilities and executory contracts Thursday 13 August Watch here

IASB Webcast Series : Proposed Conceptual Framework : The elements of financial statements: definitions and recognition

The IASB staff are creating a series of recorded web presentations to help those with an interest in the Conceptual Framework get a better understanding of the proposed changes that are currently being consulted on.

Each presentation provides a detailed walk-through of the different parts of the Exposure Draft, providing further insight into the IASB’s thinking and the rationale behind the proposals. The Exposure Draft proposes a number of enhancements to the existing Conceptual Framework, for example:

  • refining the definitions of the basic building blocks of financial statements—assets, liabilities, equity, income and expenses;
  • a new chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis; and
  • confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in ‘Other Comprehensive Income (OCI)’.

A new presentation will be published every week and can be viewed on demand. Each presentation consists of slides and voice and runs approximately 10–25 minutes.

Below is an overview of the topics that are covered and the dates the presentations will become available. View here or click on link below

Chapter 4 and 5—the elements of financial statements: definitions and recognition Thursday 6 August Watch here