This edition covers current developments released prior to December 31, 2016.
This quarter, the International Accounting Standards Board (IASB) issued Annual Improvements to IFRS Standards (2014-2016) Cycle, Transfers of Investment Property (Amendments to IAS 40 Investment Property), and IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration.
The IASB has also announced its five-year plan which places an emphasis on delivery – especially through better communication in financial reporting. To achieve this the IASB will focus on completing projects that form part of the Disclosure Initiative, which are aimed at improving presentation and disclosure and place less emphasis on changes to the recognition and measurement requirements.
The rapidly approaching effective dates for the new standards (revenue and financial instruments, effective in 2018, and leases, effective in 2019) have drawn the attention of regulators. The Ontario Securities Commission (OSC) issued Staff Notice 52-723, Financial Reporting Bulletin, which highlights the expectation for increasingly detailed disclosure about the expected effects of the new standards.
Although other Canadian regulators have not as yet specifically communicated their expectations, entities should be aware that their key stakeholders may also expect incremental disclosures.
Earlier this year, European and US regulators issued statements with respect to their expectations of transparent disclosures regarding the impact of new standards on financial statements. Specifically, they indicated that they would expect disclosures of the expected impact of the new standards and status of implementation projects as early as the 2016 annual financial statements.