· 30 July 2010: The IASB today published for public comment Exposure Draft 2010/8 Insurance Contracts (the ED). The ED proposes a single International Financial Reporting Standard (IFRS) that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. The proposals in the ED will completely replace the current requirements in IFRS 4 Insurance Contracts, released by the IASB in 2004.
The proposals in the ED are based on more than the 160 comment letters the IASB received on its discussion paper, Preliminary Views on Insurance Contracts, which they published in 2007. The proposals also consider the feedback received by the IASB from interested parties through an extensive outreach programme, including interaction with the IASB’s Insurance Working Group and a targeted field test with preparers. The IASB plans to undertake further outreach during the exposure draft’s comment period, including a second round of field tests, to ensure that the IASB considers the views of all interested parties before it issues an IFRS.
The exposure draft is open for comment to 30 November 2010. To obtain more details on the IASB’s Insurance Contracts project, a downloadable PDF of the exposure draft and information on how to submit a comment letter, please click on the link to be redirected to the IASB’s Insurance Contract project page.
· 30 July 2010: On 28 July 2010 the IASB published a questionnaire for financial statement users on its June 2010 exposure draft Measurement Uncertainty Analysis Disclosure for Fair Value Measurements.
Analysts are being asked to complete the questionnaire to provide input on the proposals in the exposure draft for Level 3 fair value measurements. This questionnaire forms part of a comprehensive programme of outreach activities being undertaken by the IASB to all IFRS constituents.
Responses to the questionnaire should be submitted by 7 September 2010. The IASB also encourages all interested parties, including users of financial statements, to submit a comment letter on the exposure draft by 7 September 2010.
For additional details please click on the link to be redirected to the questionnaire on the IASB’s Fair Value Measurement project page.
· 26 July 2010: The European Commission has published the following Commission Regulations endorsing a number of recent IASB pronouncements:
(EC) No 632/2010 (IAS 24 Related Party Disclosure (Revised) and Amendment to IFRS 8 Operating Segments);
(EC) No 633/2010 (Amendments to IFRIC 14 Prepayments of a Minimum Funding Requirement); and
(EC) No 662/2010 (IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments).
· 26 July 2010: The European Financial Reporting Advisory Group (EFRAG) has updated its Endorsement Status Report to 23 July 2010 in the light of EFRAG's endorsement advice letter on the Improvements to IFRS (as issued by the IASB in May 2010).
The following IASB Standards and Amendments are awaiting European Commission endorsement for use in Europe:
- IFRS 9 Financial Instruments;
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments; and
- Amendments to IFRS 1 Additional Exemptions for First-time Adopters.
The updated Endorsement Status Report can be viewed by clicking the link or by going to the EFRAG website
· 23 July 2010: The IASB has tentatively scheduled two additional Board meeting on 3 August 2010 from 11:00 to 14:00 (London Time) and on 24 August 2010 from 11:00 to 15:00 (London time) to discuss the financial instruments project in an effort to accelerate its work on replacing IAS 39 with a new standard by its Q2 2011 deadline.
Please note that agenda papers have not yet been posted for these meeting. For additional details or to register to attend either meeting please refer to the meeting diary links on the IASB’s website.
· 12 July 2010: The IASB will hold its July 2010 meetings at its London offices from Monday 19 to Friday 23 of July. The meeting on the 19 (afternoon only) will be a joint meeting with the FASB. Topics to be discussed each day are:
Monday 19 July (afternoon - joint meeting with FASB) Leases – application guidance on when to apply which accounting model, purchase/sale scope decision, splitting lease payments from payments for services, business combinations, and additional disclosures; and
Insurance Contracts – sweep issues.
Tuesday 20 July
Derecognition – discussion of remaining differences between US GAAP disclosure requirements and proposed IFRS disclosure requirements for transfers of financial assets;
Rate-regulated Activities – discussion of the key issue of whether regulatory assets and regulatory liabilities exist in accordance with the current Framework and whether they are consistent with other current IFRSs; and
Income taxes – discussion of a practice issue relating to deferred tax on the remeasurement of investment property at fair value.
Wednesday 21 July
IFRS Interpretations Committee – update from last meeting;
IFRS 1 – fixed date in derecognition exception;
IAS 29 – Reporting in accordance with IFRS after a period of chronic hyperinflation;
Annual Improvements – issues discussed by the Interpretations Committee and recommendations to the board with respect to inclusion in the next annual improvements ED;
Conceptual Framework – Measurement – implications for measurement of the objective of financial reporting, implications for measurement of the qualitative characteristics of decision useful information, and what the measurement chapter should accomplish;
Financial Instruments with the Characteristics of Equity – discussion of some of the more significant comments received from external reviewers on the staff draft of the ED; and
Hedge Accounting –discussion of aspects of hedge effectiveness testing.
Thursday 22 July
Impairment – comment letter summary, update on Expert Advisory Panel;
Leases and Insurance Contracts (continued from Monday); and
Consolidation - disclosures.
Friday 23 July
Hedge Accounting – eligibility of hedged items: net position, discussion of some presentation issues related to hedge accounting and the mechanics of hedge accounting; and
Fair value Option – discussion of a high-level summary of the comment letters received on the exposure draft Fair Value Option for Financial Liabilitities
The meetings are open to public observation however registration is required. To register to attend any of the sessions or to download the meeting agenda and the agenda papers to be discussed, please refer to the IASB's website under the meeting diary links.
· 7 July 2010: On 8 July 2010, the IASB and the FASB will hold two joint webcasts to introduce the exposure draft Revenue from Contracts with Customers, which was published on 24 June 2010, to be followed by a question and answer session. The exposure draft is open for public comment until 22 October 2010.
For the convenience of participants in different time zones two webcasts have been scheduled at 9:30 am and 5:00 pm (London time). There's no charge to attend a webcast however prior registration is required. For additional information or to register to participate in one of the webcasts please refer to the IASB’s website.
· 5 July 2010: The IASB has published a comprehensive project summary of the fair value measurement project. The project summary provides background to the project and provides details on how the IASB plans to finalise an IFRS on fair value measurement.
The project summary also compares the tentative decisions reached so far in the project with:
· the proposals in the IASB’s May 2009 exposure draft Fair Value Measurement (ED/2009/5); and
· the proposals in the FASB exposure draft of a proposed Accounting Standards Update (ASU) Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which proposes amendments to Topic 820 Fair Value Measurements and Disclosures in the FASB Accounting Standards Codification TM (which codified FASB Statement of Financial Accounting Standards No. 157 Fair Value Measurements (SFAS 157)).
For additional information and a link to the project summary document and the fair value measurement project page, please refer to the press release on the IASB’s website.
· 5 July 2010: The IASB and FASB have started an extended outreach programme to stakeholders on their joint financial statement presentation project by posting a staff draft of proposed standards on their respective websites. The draft reflects the cumulative tentative decisions made by the boards, concluding with their joint meeting in April 2010.
The outreach activities to be undertaken over the coming months will focus on:
(1) the perceived benefits and costs of the proposals, and
(2) the implications of the proposals for financial reporting by financial services entities.
In particular, the staff plan to:
- ask users of financial statements to evaluate how the proposed changes to the organisation of, and information presented in, financial statements would benefit their analysis and resource allocation decisions.
- ask preparers of financial statements to evaluate the effort and cost involved in adopting the proposed changes in their own circumstances.
- meet preparers and users of the financial statements of financial services entities to discuss the proposed changes.
- gather additional information about benefits and costs by doing more field work on the proposals in the staff draft, including additional field testing and/or experimental research.
The tentative plan is to complete the additional outreach activities towards the end of 2010 and in light of the feedback received, aim to publish an exposure draft in early 2011.
For additional information and a link to the IASB Financial Statement project page, please refer to the IASB’s website.
· 1 July 2010: The IFRIC will hold meetings on Thursday 8 and Friday 9 (morning only) July 2010 at the IASB offices in London. The meetings are open to public observation. Agenda items to be discussed at the meetings on each date include:
8 July 2010:
Introduction;
Active Committee Projects
IAS 16 Property, Plant and Equipment - Accounting for production phase stripping costs in the mining industry;
IFRS 2 Share-based Payment - Vesting and non-vesting conditions; and
IAS 27 Consolidated and Separate Financial Statements – put options written over non-controlling interests.
Review of Tentative Agenda Decisions published in May IFRIC Update
IAS 1 Presentation of Financial Statements- going concern disclosures – specifying consequence of concern;
IAS 12 Income taxes – Recognising deferred tax assets for unrealised losses on AFS debt securities; and
IAS 39 Financial Instruments: Recognition and Measurement – Impairment of financial assets reclassified from AFS to loans and receivables.
Items for Continuing Consideration
IFRS 1 First-time adoption of International Financial Reporting Standards - Fixed date in derecognition exception, initial measurement exemption for financial instruments (ie day 1 gains/losses) and repeat application;
IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayment of investment/ CTA;
IAS 29 Financial Reporting in Hyperinflationary Economies – Reporting in accordance with IFRS after a period of chronic hyperinflation; and
IAS 40 Investment Property – Change from fair value model to cost model (reconsideration).
9 July 2010 (morning only):
Active Committee Projects (continued, if needed)
IAS 27 Consolidated and Separate Financial Statements – put options written over non-controlling interests;
IAS 16 Property, Plant and Equipment - Accounting for production phase stripping costs in the mining industry; and
IFRS 2 Share-based Payment - Vesting and non-vesting conditions.
Items for Continuing Consideration (continuation of Thursday’s deliberations if needed)
New Items for Initial Consideration
IFRS 3 Business Combinations – Regrouping and consistency of contingent consideration guidance;
IAS 19 Employee Benefits – Accounting for statutory employee profit sharing arrangements;
IAS 28 Investment in Associates - Step acquisition – fair value as deemed cost;
IAS 36 Impairment of Assets –Accounting for goodwill impairment testing when non-controlling interests are recognised; and
All IFRSs – Encouraged versus required disclosures.
Administrative Session
IFRIC work in progress.
To register as an observer or to obtain the meeting agenda and agenda papers to be discussed, please see the meeting diary link on the IASB’s website.· 1 July 2010: The IASC Foundation has formally changed its name to the IFRS Foundation as part of the process to simplify the names in use across the organisation announced following the conclusion of the Constitutional Review in 2010. The International Financial Reporting Interpretations Committee (IFRIC) and the Standards Advisory Council (SAC) have already been renamed as the IFRS Interpretations Committee and the IFRS Advisory Council, respectively. The name of the International Accounting Standards Board (IASB) will remain unchanged.
· 1 July 2010: The IASB has published for public comment Exposure Draft ED/2010/7 Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (the ED) as further enhancements to a disclosure proposal on Level 3 fair value measurements which formed part of the IASB’s exposure draft Fair Value Measurement published in May 2009.
In the May 2009 exposure draft, the IASB proposed a three-level fair value hierarchy that categorises observable and non-observable market data used as inputs for fair value measurements. According to that hierarchy, Level 3 inputs are ‘unobservable inputs’ used for the fair value measurement of assets or liabilities for which market data are not available.
In response to comments received, the IASB proposes to enhance its original proposal by requiring the measurement uncertainty analysis disclosure to reflect the interdependencies between unobservable inputs used to measure fair value in Level 3.
The ED is open for public comment until 7 September 2010.
The FASB is publishing the proposals in the exposure draft Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. The boards will consider the comments received on the exposure drafts jointly as they continue their discussions about fair value measurement.
For a link to the exposure draft and information on how to submit a comment letter please refer to the press release on the IASB’s website.