As we covered here, the IASB recently issued for comment a new framework for management commentary. The document describes management commentary as “a report that complements an entity’s financial statements. It provides management’s insights into factors that have affected the entity’s financial performance and financial position and factors that could affect the entity’s ability to…
Here’s an extract from a comment letter submitted by US SEC Commissioner Hester M. Peirce to the IFRS Foundation, on its initiative to create a sustainability standards board Financial statements, prepared according to high-quality accounting standards, enable investors to make informed economic decisions. As the Foundation’s website explains, “IFRS Standards contribute to economic efficiency by…
The IFRIC recently issued for comment a tentative agenda decision on Economic Benefits from Use of a Windfarm, with comments requested by August 16, 2021. Here’s the fact pattern: The Committee received a request about whether, applying paragraph B9(a) of IFRS 16, an electricity retailer (customer) has the right to obtain substantially all the economic…
A recent article in CPA Canada’s Pivot magazine, written by Gord Beal, posits that “a new capitalism requires a new accounting.” Here’s an extract: Investors and business leaders are joining others who are challenging an unsustainable status quo. Although the degree and speed to which capitalism will evolve remains to be seen, dramatic shifts in…
CPA Canada’s IFRS Discussion Group recently discussed the following fact pattern: Entity A establishes a long-term incentive plan at the beginning of 20X0 for senior management. Senior management of Entity A will be awarded with a bonus compensation of 10 per cent of their base salary, payable immediately upon achievement of the target EPS growth.…
The IASB has issued amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction, effective for annual reporting periods beginning on or after January 1, 2023 The amendments express themselves primarily with reference to accounting for leases under IFRS 16, but they also apply to decommissioning obligations, and perhaps in other…
Let’s return to the IASB’s discussion paper Business Combinations under Common Control, on which comments are requested by September 1, 2021. As we covered here, the main proposal is that fair-value information should be provided when a business combination under common control affects shareholders outside the group. In all other cases, the Board is suggesting…
IASB consults on a new framework for management commentary reflecting changes in corporate reporting landscape, announces a recent news release Here’s how it sums it up: Management commentary—in some countries referred to as management discussion and analysis—is a report that complements a company’s financial statements. The proposed framework represents a major overhaul of IFRS Practice Statement…
Well, we’re almost at the end of the Hans Hoogervorst era… As you’re probably aware, if you’re interested in the subject matter of this blog, he will be replaced in July by Prof Dr Andreas Barckow, formerly President of the Accounting Standards Committee of Germany. I previously provided exclusive access to a sampling of the…
Canadian regulators seek comment on proposal to streamline continuous disclosure requirements, announces a recent news release Here’s the summary: The Canadian Securities Administrators (CSA) is proposing changes to the continuous disclosure requirements for non-investment fund reporting issuers that will streamline and clarify their annual and interim filings. “We have identified areas where we can…
Canadian securities regulators publish final rule for non-GAAP and other financial measures, announces a recent news release Here’s some of what it says: The Canadian Securities Administrators (CSA) today published disclosure requirements for issuers that disclose non-GAAP (generally accepted accounting principles) and other financial measures on a voluntary basis. The rule improves the quality of…
Here’s the background to another issue recently discussed by Canada’s IFRS Discussion Group: Entity A enters into a contract for a ground lease of land and begins construction of a manufacturing facility where it will operate its manufacturing plant. The contract is determined to be a lease under IFRS 16. The lease commenced on September…
The European Securities and Markets Authority (ESMA) has issued its report on Enforcement and regulatory activities of European enforcers in 2020. The report provides “an overview of the activities of ESMA and of accounting enforcers in the European Economic Area…when examining compliance of financial and non-financial information provided by issuers in 2020 (and) presents the…
Flexible reporting standards mean investors know little about when companies used emergency wage subsidies, announces the title of a recent Globe and Mail article by David Milstead This is how it starts off: Canada’s three major telecommunications companies took tens of millions of dollars from Canada’s Emergency Wage Subsidy program. For most of the pandemic,…
The IASB has issued the exposure draft Lack of Exchangeability, with comments to be received by September 1, 2021 IAS 21 generally requires using a spot exchange rate when an entity reports foreign currency transactions or a foreign operation’s results and financial position in its financial statements. The standard specifies the exchange rate to use…
