Technical Roundup 1 April

Mar 31, 2021

Welcome to this week’s Technical Roundup. 

In developments this week, the FRC has published summaries of its corporate reporting reviews and  has published a new report on supervision; IAASA has published an Information Note: IAS 36 Impairment of Assets – information requests from IAASA; EFRAG and the European Commission have met with leading international sustainability reporting standard setters; the Central Bank of Ireland has issued a consultation paper on stakeholder engagement.

Read more on these and other developments that may be of interest to members below.

Financial Reporting

  • The International Accounting Standards Board (IASB) is seeking public comments on a new approach to developing disclosure requirements in IFRS Standards and new disclosure requirements for the Standards on fair value measurement and employee benefits. The Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19), along with a Snapshot which provides an overview of the proposals, and a short video introducing the proposals, are available here. The Board is asking for stakeholder comments by 21 October 2021.
  • The IASB has also published a consultation document to seek views on what the Board’s priorities should be over the next five years.
  • In the March episode of the monthly IASB podcast, the Chair and Vice-Chair of the IASB talk about the Board’s discussions at the supplementary meeting on 10 March to discuss IFRS 16 Leases and covid-19-related rent concessions, as well as at the regular monthly meeting held virtually on 23 and 24 March 2021. The March 2021 IASB Update has also been published and the work plan updated.
  • The IASB has decided to extend by 30 days the comment period for the Exposure Draft Regulatory Assets and Regulatory Liabilities to give stakeholders more time to respond. The comment period will now end on 30 July 2021.
  • The IASB has extended by one year the application period of the practical expedient in IFRS 16 Leases to help lessees accounting for covid-19-related rent concessions. The Board has extended the relief by one year to cover rent concessions that reduce only lease payments due on or before 30 June 2022. Further information is available here.

  • Each year, the Financial Reporting Council (FRC) conducts over 200 corporate reporting reviews to assess whether company reports and accounts comply with relevant accounting and reporting requirements. Announcing a new approach to publishing corporate reporting reviews, the FRC has, for the first time, and aligned with a recommendation of Sir John Kingman’s Independent Review of the FRC that reviews should be made publicly available, published summaries of its corporate reporting reviews.

  • IAASA has published an Information Note: IAS 36 Impairment of Assets – information requests from IAASA. IAASA notes that the primary purpose of this Information Note is to provide preparers, auditors and users of financial statements with information to encourage discussion and stimulate debate as to whether or not issuers have adequately considered the requirements of IAS 36, and that, with the aim of achieving this primary purpose, IAASA is publishing a selection of the IAS 36 information requests that it has made to issuers during recent financial statement examinations. Find out more here.
  • Reaching out to stakeholders, EFRAG has released the final podcast of its four-episode series dedicated to the post-implementation review of IFRS 10, IFRS 11 and IFRS 12, along with a survey to collect stakeholders’ views.
  • Noting the issuing of the IASB consultation Request for Information - Third Agenda Consultation (mentioned above), the UK Endorsement Board (UKEB) has invited those interested in being involved in their outreach on this project to email them at agendaconsultation@endorsement-board.uk. Separately, the UKEB has launched a video guide on IASB DP/2020/2 Business Combinations Under Common Control.
  • The International Organization of Securities Commissions (IOSCO) has issued a Statement on Going Concern Assessments and Disclosures during the COVID-19 Pandemic.

Auditing

  • The Financial Reporting Council (FRC) has published a new report Our Approach to Audit Supervision, which sets out what firms can expect from the FRC in the course of supervision with a focus on audit quality and firm resilience. A link to the report is available here.

Sustainability / Non-Financial Reporting

  • EFRAG and the European Commission have met with leading international sustainability reporting standard setters and other related initiatives to present recommendations for the development of EU sustainability reporting standards and explore possible cooperation in a co-constructive spirit, promoting convergence and maintaining momentum. Find out more here.
  • In the latest In Conversation podcast the FRC's Deputy Director of Stakeholder Engagement and Corporate Affairs speaks to the Head of Clean Growth at the Department for Business, Energy and Industrial Strategy (BEIS) on the UK Government's consultation to require mandatory TCFD reporting.

Anti-Money Laundering

Listen to the Association of Compliance officers  podcast series. This week the Deputy Money Laundering Reporting Officer of a financial institution discusses the importance of firm-wide AML frameworks, the role of the compliance professional and the role of the first line of defence in managing AML risk. Previous podcasts in the series includes a conversation with the Director of Enforcement and Anti Money laundering at the Central Bank of Ireland about the CBI priorities 2021; she discusses diversity and inclusion, the CBI fitness and probity regime, PCFs and what’s new on the anti-money laundering front.

Other areas of interest

UK extension of dates of coronavirus temporary measures

The UK government’s  Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 came into force on 26th March 2021. It extends the restrictions on the use of statutory demands and winding up petitions to 30 June 2021 (from 31 March), extends  the modifications to moratorium provisions and temporary moratorium rules to 30 September 2021 (from 30th March ) and extends the small supplier exemption from termination clause provisions to 30 June 2021( from 30 March 2021 ). It also extends provisions suspending liability for wrongful trading to 30 June 2021 (from 30 April 2021).

Central Bank of Ireland Consultation with Stakeholders

The Central Bank of Ireland has issued a consultation paper on stakeholder engagement. Consultation Paper 136 Enhancing our Engagement with Stakeholders. As a body representing accountants, we welcome this engagement. Details are in the attached and the consultation runs until 11 May.

For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.