Technical roundup 4 December

Dec 02, 2020

Developments of interest this week are outlined.

UK

  • Compelling new research commissioned by the Financial Reporting Council (FRC) has shown that the development of standards for audit committees would support a more consistent approach to promoting audit quality. The research, conducted by YouGov, involved interviews with Audit Committee Chairs (ACCs) on how they carry out their role.
  • The FRC has issued FRED 77 Draft amendments to FRS 101 Reduced Disclosure Framework – 2020/21cycle which proposes amendments to FRS 101 as a result of its latest annual review.
  • The FRC has launched a consultation on the proposed revision of its review standard for interim financial statements, International Standard for Review Engagement (UK) 2410 (ISRE (UK) 2410) Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
  • The revised UK Corporate Governance Code provides an opportunity for companies to report to their stakeholders in a way that allows them to communicate high-quality information about the way in which their governance functions to deliver a company’s purpose and strategy. Although some companies have embraced the opportunities the revised Code offers, the FRC has found in its Review of Corporate Governance Reporting that this was not consistent across the board.

Europe

  •  In their latest podcast, Accountancy Europe speaks to CEO, Olivier Boutellis-Taft, on the importance of corporate governance in paving the way for a sustainable economy.

International

  • The IASB has published an exposure draft 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16)' that aims at clar­i­fy­ing how a seller-lessee should apply the sub­se­quent mea­sure­ment re­quire­ments in IFRS 16 to the lease liability that arises in a sale and leaseback trans­ac­tion. Comments are requested by 29 March 2021.
  • The International Accounting Standards Board (Board) has launched a public consultation on possible new accounting requirements for mergers and acquisitions involving companies within the same group—business combinations under common control.