Investors: the IASB needs your input on accounting
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International Financial Reporting Standards (IFRSs) are aimed at ensuring that financial statements provide information that existing and potential investors and other capital providers need to make capital allocation decisions. Although as an investor your priority might not be the standard-setting process, it is important that the IASB gets your input, because the results of our projects will ultimately influence the information that you get from financial statements. So that we can better meet your needs, we want to make it as easy as possible for you to provide input on our work. Detailed accounting background or knowledge is not a requirement to speak to us about or provide feedback on our projects and proposals.
IASB Survey on Classification and Measurement of Financial Assets
On 7 May 2013 the IASB launched a survey for financial statement users on its November 2012 Exposure Draft Classification and Measurement: Limited Amendments to IFRS 9 (Proposed amendments to IFRS 9 (2010)).
The IASB asks analysts and investors to provide input on the proposals in the Exposure Draft—namely, on the proposed third category for the classification of financial assets. That category is Fair Value through Other Comprehensive Income (FVOCI). The purpose of the proposed FVOCI category is to better portray how financial assets are managed. This survey, targeted at users of financial statements, forms part of a comprehensive programme of outreach activities to all IFRS stakeholders.
The survey is now closed. Thank you to those who participated—the IASB appreciates your input. The IASB staff discussed the feedback received on this project from users of financial statements at the June 2013 Board meeting.
Investor Perspectives on potential changes to accounting for financial assets now available:
Framework rethink will shape the landscape for investors
On 18 July 2013, the IASB published a Discussion Paper which proposes changes to its conceptual framework for financial reporting. The name alone may cause many of you to assume this to be a somewhat theoretical exercise of interest only to accounting geeks with seemingly little relevance to investors.
Accounting for expected credit losses
In early March 2013 the IASB published a set of proposals dealing with the accounting for credit losses on financial instruments. Specifically, the proposals establish how and when an entity should recognise “expected” credit losses on financial instruments and on commitments to extend credit.
Limited amendments to IFRS 9
In November 2012 the IASB proposed limited amendments to the classification and measurement requirements in IFRS 9 Financial Instruments. The proposed amendments are narrow in scope and are consistent with the existing principles in IFRS 9.
Disclosures in financial reporting
On 28 January 2013, the IASB asked for input from the investor and preparer communities to help in addressing what is perceived to be a “disclosure problem”. More information about the survey that was provided is available by clicking here. Further information about the forum can be found here.
We aim to publish a feedback statement about the results of the discussions in the second half of 2013.
Investor Spotlight on potential changes to lessee accounting
In an effort to ensure that investors and others have sufficient information about a company’s leasing activities, the IASB is working on a project that would provide information about:
- the amount of a lessee’s obligation to make lease payments; and
- the assets that a lessee has control over.
In effect, the project would result in operating leases being reported on the balance sheet. Click here to read the Investor Spotlight summarising the proposed changes.
Investor feedback received on the IASB’s post-implementation review of segment disclosures
Input from the investor community was requested to assist the IASB in its post-implementation review of IFRS 8 Operating Segments. Post-implementation reviews are normally carried out two years after a new IFRS or major amendment has become mandatory and been implemented. More information about the review is available here.
Investors and analysts provide input on the agenda consultation
Setting the IASB’s future work plan
As part of its consultation about what should be on the future work plan, the IASB sought the views of the investor community through an online investor survey.
A summary of the input received is available here.
Webcast on revenue recognition
12 January 2012
Understanding the New U.S. GAAP & IFRS Proposals on Revenue Recognition
On 12 January 2012 the IASB, FASB and the CFA Institute presented a webcast about the proposals on revenue recognition. A recording of the webcast is available here [external link].
- Become a member of an official working group for a specific project (commitments vary, with meetings taking place a few times a year);
- Discuss your thoughts on a particular project with us informally;
- Comment formally on a project that is currently open for comment by submitting a comment letter; and
- Become a member of the Capital Markets Advisory Committee (CMAC), a dedicated user group that meets regularly with the IASB (meetings take place three times a year in our London office);
- Find out more about the Advisory Council Sub-Committee
For more information about how to get involved, contact Barbara Davidson, Principal in charge of the Investor Liaison programme, at email@example.com.