IFRS, IAS, ISA Update

IASB begins public consultation on Post-implementation Review of IFRS 3

Earlier this year, the International Accounting Standards Board (IASB) began the public consultation stage of its review of IFRS 3 Business Combinations by publishing a Request for Information (RfI) on experience with, and the effect of, implementing the Standard. The RfI seeks feedback on whether the Standard provides information that is useful to users of financial statements, whether there are areas of the Standard that represent implementation challenges and whether unexpected costs have arisen when preparing, auditing or enforcing the requirements of the Standard.

In addition to publishing the RfI, the IASB will also undertake a range of outreach activities internationally to gather further feedback on the effect of implementing IFRS 3.

Commenting on the review, Hans Hoogervorst, Chairman of the IASB said: “This Request for Information forms an important part of our formal outreach programme. It will be invaluable in helping us learn whether IFRS 3 is being implemented on a consistent basis. The feedback we receive will also help us understand whether any unintended consequences have arisen following its introduction. We look forward to receiving comments from across the IFRS community.” The RfI is open for public consultation until 30 May 2014 and can be accessed via the ‘Comment on a Proposal’ page. Further details of these activities will be published on the IFRS 3 Post-implementation Review project page on the IASB’s website.

IASB publishes proposals as part of Disclosure Initiative

The IASB recently published for public comment an Exposure Draft outlining proposed amendments to IAS 1 Presentation of Financial Statements. The proposal results from one of several short-term projects under the IASB’s Disclosure Initiative.

Many respondents to the IASB’s Agenda Consultation 2011 asked the IASB to review the disclosure requirements in existing IFRS, to explore ways to improve disclosures. Consequently, in 2013 the IASB started the Disclosure Initiative, a package of several projects aimed at improving the disclosure of financial information. The Exposure Draft proposes narrow-focus clarifying amendments to IAS 1 to address some of the concerns expressed about existing presentation and disclosure requirements and to ensure entities are able to use judgement when preparing their financial statements.
The proposed amendments:

  • Clarify the materiality requirements in IAS 1, including an emphasis on the potentially detrimental effect of overwhelming useful information with immaterial information.

  • Clarify that specific line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position can be disaggregated.

  • Add requirements for how an entity should present subtotals in the statement(s) of profit or loss and other comprehensive income and the statement of financial position.

  • Clarify that entities have flexibility as to the order in which they present the notes, but also emphasise that understandability and comparability should be considered by an entity when deciding that order.

  • Remove potentially unhelpful guidance in IAS 1 for identifying a significant accounting policy.

XBRL: IFRS Foundation publishes the 2014 annual version of the IFRS Taxonomy

The IFRS Foundation has published the IFRS Taxonomy 2014. The IFRS Taxonomy is a translation of International Financial Reporting Standards (IFRS) into eXtensible Business Reporting Language (XBRL). The IFRS Taxonomy 2014 is consistent with IFRS as issued by the IASB at 1 January 2014, including Standards published but not yet effective at that date. By providing the IFRS Taxonomy, the IFRS Foundation seeks to address the demand for an electronic standard to transmit IFRS information.
The IFRS Taxonomy 2014 follows a different architecture to the IFRS Taxonomy 2013, with separated modules for full Standards, IFRS for SMEs and IFRS Practice Statement Management Commentary. The IFRS Foundation has published the IFRS Taxonomy 2014 with the updated IFRS Taxonomy Guide and a range of accompanying materials that have been specifically developed to aid understanding and use of the IFRS Taxonomy.

IFRSs coming into force

The following IFRSs and improvements to IFRSs have come into force on Annual periods beginning on / after 1 January 2013:

  • Offsetting Financial Assets and Financial Liabilities – Disclosures – Amendment to IFRS 7

  • IFRS 10 Consolidated Financial Statements

  • IFRS 11 Joint Arrangements

  • IFRS 12 Disclosure of Interests in Other Entities

  • IFRS 13 Fair Value Measurement

  • IAS 19 (2011) Employee Benefits

  • IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

  • Government Loans – Amendments to IFRS 1

May 2012 Annual Improvements to IFRSs

  • IFRS 1 First-Time Adoption of International Financial Standards

  • IAS 1 Presentation of Financial Statements

  • IAS 16 Property, Plant and Equipment

  • IAS 32 Financial Instruments: Presentation

  • IAS 34 Interim Financial Reporting

Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition guidance

  • IFRS 10 Consolidated Financial Statements

  • IFRS 11 Joint Arrangements

  • IFRS 12 Disclosure of Interests in Other Entities

The following IFRSs and improvements to IFRSs have come into force on Annual periods beginning on / after 1 January 2014:

  • Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32

  • Novation of Derivatives and Continuation of Hedge Accounting

  • Amendments to IAS 36 – Recoverable Amount Disclosures for Non-Financial Assets

  • IFRIC 21 Levies

Investment Entities Amendments to:

  • IFRS 10

  • IFRS 12

  • IAS 27

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