Technical roundup 12 March

Mar 11, 2021

Welcome to this week’s Technical roundup.   

In developments this week, the IASB met to redeliberate the proposals in its recent consultation on Covid-19-Related Rent Concessions; the IFRS Foundation Trustees announce strategic direction and further steps based on feedback to their sustainability reporting consultation; EFRAG has published two reports submitted to the European Commission setting out recommendations on the development of EU sustainability reporting standards; and listen to the latest in the EFRAG podcast series on the PIR of IFRS 10, IFRS 11 and IFRS 12.  

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

Financial Reporting  

  • A supplementary International Accounting Standards Board (IASB) meeting was held on 10 March to redeliberate the proposals in the February 2021 Exposure Draft Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed Amendment to IFRS 16). A summary of the supplementary meeting, along with details of the next step is available here.

  • Reaching out to stakeholders, EFRAG has released its third episode, out of a series of four podcasts, dedicated to the post-implementation review of IFRS 10, IFRS 11 and IFRS 12. With the aim of collecting stakeholders' views, EFRAG has also launched a survey on the application of these IFRS Standards and looks forward to receiving responses by 16 April 2021. 

  • The Trustees of the IFRS Foundation have invited applications from suitable candidates to fill two vacancies on the IFRS Interpretations Committee.

  • EFRAG is renewing the membership of its Financial Instruments Working Group and has invited suitable candidates to send their applications by 15 April 2021. EFRAG is also seeking an academic fellow to work with EFRAG during a sabbatical leave period of between 6 months and two years - applications are welcome by 15 April 2021.

  • Hans Hoogervorst, Chair of the IASB, delivered a speech at a meeting of the International Forum of Accounting Standard Setters (IFASS). He reflected on his 10-year tenure, as it comes to an end in June 2021; how IFRS Standards have evolved during that time; and on the importance of independent standard-setting. 

  • The FRC Financial Reporting Lab has released its first newsletter for 2021. In this issue, the team reflect on the work it completed over the past year, provide updates on the Lab’s ongoing projects and other areas of reporting. 

Sustainability reporting 

  • The Trustees of the IFRS Foundation met in early March to continue their analysis and discussions of the feedback received to their Consultation Paper on Sustainability Reporting. Based on the feedback to the Consultation, and encouraged by the IOSCO Board statement, the Trustees have reached views on the strategic direction and further steps in their initiative. The new board to be set up would:
    • focus on information that is material to the decisions of investors, lenders and other creditors;
    • initially focus its efforts on climate-related reporting, while also working towards meeting the information needs of investors on other ESG matters;
    • build upon the well-established work of the Financial Stability Board’s Task Force on Climate related Financial Disclosures (TCFD), as well as work by the alliance of leading standard-setters in sustainability reporting focused on enterprise value; and
    • by working with standard-setters from key jurisdictions, issue standards that would provide a globally consistent and comparable sustainability reporting baseline, while also providing flexibility for coordination on reporting requirements that capture wider sustainability impacts. 

        Read the announcement here. 

        Further, IFAC have noted their support of the next steps and strategic direction of
        the IFRS Foundation’s work on sustainability.   

  • Two reports were published this week, prepared in response to the mandates given by the European Commission to EFRAG and to the EFRAG Board President. The reports set out recommendations to the European Commission for the elaboration of possible EU sustainability reporting standards and for possible changes to EFRAG's governance and funding if it were to become the EU sustainability reporting standard setter. The final report of the Project Task Force on preparatory work for the elaboration of possible EU non-financial reporting standards proposes ‘a roadmap for the development of a comprehensive set of EU sustainability reporting standards.’ Read more and access the report here

Other areas of interest  

  • ESMA turned 10 on 1 January 2021 and as part of their anniversary celebrations, will host an online conference on 23 March to reflect on the progress the Authority has made as a financial regulator and look to its future. Registrations are now open, and the details of the agenda and speakers are available. 

  • The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2020 was due back before the Dáil this week for consideration of amendments from the Seanad. When the Bill is passed into law, details of the legislation will be provided in a future Roundup. 

  • Section 78(2) of the Companies (Accounting) Act 2017 delayed implementation of the requirement in Section 1274 of the Companies Act 2014 for certain private unlimited companies to file financial statements, to financial years beginning on or after 1 January 2022. With the expiry of this delayed implementation approaching, members may wish to review the area as applicable to them and /or their clients. 

  • The Department of Enterprise, Trade and Investment has issued its March monthly Enterprise Newsletter, which includes information on the Department's initiatives, schemes and latest publications.  

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