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Monthly roundup - February 2013

Staying on top of developments

Author: Deepesh Malik and Moana Overton, Accounting Technical Group

February 2013 edition
Issued 05 March 2013

In this edition:

Monthly highlights

New 'revenue recognition standard' – transition and effective date

The IASB and the FASB tentatively decided at the February 2013 Board meeting that the revised revenue standard will be effective for annual reporting periods beginning on or after 1 January 2017, with early application not permitted. For an Australian company with a June year-end, this will result in first time application for the year ended 30 June 2018.

In an interesting departure from the norm, unless an entity elects to retrospectively apply the standard, re-statement of prior year comparatives will not be required.

The Boards tentatively decided that an entity will be permitted to either apply the final standard retrospectively or elect an alternative transition method requiring an entity to:

  • apply the final standard to all contracts not completed under legacy IFRSs/US GAAP at the date of initial application (1 July 2017 for an Australian company with a June year end);
  • recognise the cumulative effect of initially applying the final standard as an adjustment to the opening balance of retained earnings on the effective date; and
  • disclose the financial statement impact, by line item, of applying the final standard rather than legacy revenue guidance in the period the standard is adopted.

The updated IASB work plan suggests the new revenue standard will be finalised and issued by June 2013.

Please refer to our Revenue recognition project insights page and Deloitte observer notes for the February 2013 IASB meeting for further details.


New pronouncements

(A listing of new accounting standards, interpretations, exposure drafts, discussion papers and similar documents issued during the month by the AASB and IASB/IFRIC, along with other IFRS-related documents by other bodies that may be of interest and related links to Deloitte publications and alerts. See also our What’s new in the December 2012 financial reporting cycle summary.)

International Accounting Standards Board (IASB)
Pronouncement Key dates More information

Exposure Draft ED/2013/2 Novation of Derivatives and Continuation of Hedge Accounting

Proposes changes to IAS 39 Financial Instruments: Recognition and Measurement and the forthcoming hedge accounting chapter of IFRS 9 Financial Instruments to permit the continuation of hedge accounting where hedging instruments are novated to a central counterparty in accordance with laws or regulations introduced by jurisdictions to implement the G20's agreed reforms around over the counter (OTC) derivatives.

Comments due by 02 April 2013

IAS Plus article

ED 2013/2 (PDF)

Australian Accounting Standards Board (AASB)
Pronouncement Key dates More information

No new significant pronouncements were issued by the AASB in February 2013.

   

Standard setter meetings

(A listing of meetings of various standard setters during the month or where documents were issued during the month in respect of the previous month’s meetings, with links to our analysis, agenda papers and so on)

Meeting Highlights More information
IASB regular meeting
18-22 February 2013

Topics discussed were as follows (click on the links for direct access to the Deloitte observer notes for that topic):

Deloitte Observer notes
AASB regular meeting
20-21 February 2013

Key issues discussed include:

  • Possible Policy Implications of the Results Emerging from the Research into Special Purpose Financial Reporting
  • Budgetary Reporting by NFP Public Sector Entities
  • Implementation Guidance for NFP Entities re AASB 10
  • Service Concession Arrangements: Grantor's Perspective
  • IASB Proposals for Limited Amendments to IFRS
  • Revenue from Contracts with Customers
  • Financial Instruments
  • IFRS Interpretations Committee
  • Accounting Standards Advisory Forum (ASAF)
AASB alert (PDF)

 

New Deloitte publications

(Key IFRS-related and other publications issued by Deloitte during the month, not covered elsewhere. You can find full details and back issues of our various publications by following these links: Accounting alerts, IAS Plus publications, IFRS in Focus Newsletters, Webcasts, and Podcasts)

IFRS publications
Deloitte Podcasts
  • Deloitte IFRS podcast discusses the IASB’s and FASB’s proposed reforms to classification and measurement of financial instruments, considering the similarities as well as the differences between their proposals.
Deloitte comment letters

Other developments

(A brief listing of other financial reporting developments during the month. A full summary of all IFRS-related developments can be found in our February historical summary on IAS Plus. You can also subscribe to our Deloitte IAS Plus RSS feed to be kept informed of developments as they happen)

Australian-specific topics
  • The Australian Accounting Standards Board (AASB) has released a staff paper (PDF) dealing with government sector accounting for Australia's carbon pricing mechanism.
International Accounting Standards Board
  • The International Accounting Standards Board (IASB) has updated its work plan. A number of due process milestones have been deferred, including the finalisation of the hedge accounting section of IFRS 9 and the re-exposure of the lease proposals
  • IASB podcast (mp3) clarifies certain aspects of Exposure Draft 'Limited Amendments to IFRS 9 (proposed amendments to IFRS 9 (2010)'. It answers the most frequently asked questions that the IASB staff has received on the proposal.
Other global news
  • The European Financial Reporting Advisory Group (EFRAG) recommends adoption of investment entities amendments, and updated its endorsement status report (IAS Plus article)
  • The International Accounting Standards Board (IASB) and International Integrated Reporting Council (IIRC) have announced a Memorandum of Understanding (MoU), to strengthen their cooperation on the development of the IIRC's integrated corporate reporting framework (IAS Plus article).

Related links

Related links

  • Monthly roundup - January 2014
    ASIC has extended Class Order [CO 13/1050] which allows issuers of stapled securities (stapled entities) to continue to present consolidated or combined financial statements
  • Monthly roundup - January 2012
    Financial reporting developments during January 2012. Monthly highlights include the IASB and the FASB discussion to reduce differences in classification and measurement models for financial instruments.
  • Monthly roundup - July 2013
    Financial reporting developments during July 2013. Monthly highlights discuss the ASIC areas of focus for July 2013 reporting period.
  • Monthly roundup - June 2013
    Financial reporting developments during June 2013. Monthly highlights discuss the ASIC areas of focus for June 2013 reporting period.
  • Monthly roundup - December 2012
    Financial reporting developments during December 2012. Monthly highlights discuss the key considerations for the December 2012 reporting season and a series of pronouncements by the AASB
  • Monthly roundup - March 2011
    Financial reporting developments during March 2011. Monthly highlight discusses the updated IASB work plan, ASIC's proposed guidance on additional financial information and a joint UK/NZ project to reduce disclosures under IFRS.
  • Monthly roundup - March 2009
  • Monthly roundup - August 2010
    Summary of developments in financial reporting during August 2010. Monthly highlight discusses the possible impact of changes in the IASB and FASB chairs on global standard setting.
  • Monthly roundup - June 2010
    Summary of developments in financial reporting during June 2010. Monthly highlight discusses recent financial reporting reform.
  • Monthly roundup - May 2010
    Summary of developments in financial reporting during May 2010. Monthly highlight discusses the financial reporting impacts of recent and proposed tax changes.

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