December monthly News Summary
Please find below a brief summary of news and events from the IFRS®
Foundation over the past month:
COP15 Montréal, Canada
The ISSB has set out a series of guidance and reliefs to support those applying the requirement
within its Climate-related Disclosures Standard (S2) to disclose
Scope 3 Greenhouse Gas (GHG) emissions when material for a company. The guidance and
reliefs are designed to help companies embed and improve their processes for
measurement and disclosure of Scope 3 GHG emissions.
IFRS Foundation and Ministry of Finance of China to establish ISSB office
The Trustees of the IFRS Foundation signed a Memorandum of Understanding (MoU) with
the Ministry of Finance of China to establish a Beijing office of the IFRS
Foundation. The MoU is effective for an initial three-year
period. The office is expected to open mid-2023.
IFRS 17 Insurance Contracts comes into effect
Andreas Barckow, Chair of the IASB, has appeared in a short video to remind stakeholders that IFRS 17 Insurance
Contracts applies to companies with annual reporting periods beginning on or
after 1 January 2023.
Post-implementation Review of IFRS 9─Classification and Measurement─feedback statement
In response to feedback, the IASB has identified areas for research and standard-setting to further
enhance information provided to users of financial
statements.
The IASB has initiated a standard-setting project focused on a company’s assessment
of the contractual cash flow characteristics of financial assets with ESG-linked
features and on electronic cash transfers as settlement of a financial asset or
liability. An exposure draft will be published in Q1 of 2023.
IFRS Taxonomy formula linkbase 2022 now available
The IFRS Taxonomy formula linkbase can help with validating, and thereby
improving, the reliability of values reported using the IFRS Accounting Taxonomy
and the XBRL technical format. For example, the linkbase can be
used to help preparers avoid reporting negative values for IFRS Accounting Taxonomy
elements where positive values are expected.
Speeches by Andreas Barckow, Chair of the IASB
In December, Andreas spoke at the AICPA & CIMA Conference on ‘Current SEC and PCAOB
Developments’ about progress in the IASB’s work and its
future priorities for the next five years.
He also spoke at EFRAG’s 21st anniversary conference, about the IASB’s
relationship with EFRAG over this time, and working together towards the common goal
to create a global passport in financial reporting for multinational companies.
IAEER-KPMG research grants open
Research about the IASB’s future projects on intangible assets and the
statement of cash flows is being sought. These projects have
been added to the IASB’s future work plan as an outcome from the Third Agenda
Consultation, which informed the IASB’s key priorities for the next five years.
Proposals relating to any project on the IASB’s work plan or research project
pipeline are also welcome.
The deadline for submissions is 28 February 2023.
Call for papers on hedge accounting requirements of financial instruments Accounting Standard
The IASB and Accounting & Finance journal have announced a call for research papers on the application and impact of
hedge accounting requirements in IFRS 9 Financial Instruments and new
disclosure requirements in IFRS 7 Financial Instruments: Disclosures related
to this.
The deadline for submission is 1 September 2023.
IFRS Foundation appoints new Trustees
The newly appointed IFRS Foundation Trustees bring wide-ranging skills and
expertise from Asia, Europe and South America. The appointments
deliver on the Trustees’ 2021 commitment that when they broadened the Foundation’s
remit to include sustainability standard-setting, they would also ensure that the
backgrounds and experience of the Trustees continued to develop in line with that
broadening remit.
Linda Mezon-Hutter appointed as IASB Vice Chair
Linda Mezon-Hutter has been a member of the IASB since September
2022, joining from the Canadian Accounting Standards Board
(AcSB) where she had served as Chair since 2013.
At that time, she also worked closely with the IASB and standard-setters around the
world as the Canadian representative on the Accounting Standards Advisory Forum. She
also participated in the IFRS Foundation’s annual World Standard-setters Conference
and the International Forum of Accounting Standard Setters.
Sustainability Standards Advisory Forum membership announced
Thirteen representatives of jurisdictions and regions from around the world
have been appointed to the Sustainability Standards Advisory Forum
(SSAF), that will work with the ISSB towards a comprehensive
global baseline of sustainability-related disclosure for capital markets.
New members join Global Preparers’ Forum
The IASB Global Preparers’ Forum has appointed three new members
for an initial five-year term—Frédéric Agnès, Ernesto Escarabajal Baadenhuijsen and
Jeong Hyeok-Park.
IFRS Foundation Trustees meeting—South Korea
A panel discussion, moderated by Teresa Ko, Vice-Chair of the IFRS Foundation
Trustees, was held on the theme ‘A Year after Glasgow, and the Future—Global Adoption of the IFRS
Sustainability Disclosure Standards’.
Global South jurisdictions roundtable
The ISSB held a roundtable with representatives from Brazil,
Chile, Egypt, Indonesia, Kazakhstan, Kenya, Nigeria, Mexico, Pakistan, South Africa,
Sri Lanka, Uzbekistan and Zimbabwe, with written comments received from Thailand and
Papua New Guinea.
IFRS for SMEs Accounting Standard Update
The December 2022 Update includes frequently asked
questions on the proposals in the Exposure Draft Third Edition of the IFRS
for SMEs Accounting Standard; a list of newly available resources to support
the consultation; and guidance on how to get involved.
The deadline for comments to the consultation is 7 March 2023.