Monthly roundup - February 2013
Staying on top of developments
February 2013 edition
Issued 05 March 2013
In this edition:
- Monthly highlights
- New pronouncements
- Standard setter meetings
- New Deloitte publications
- Other developments
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.
(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|
Australian Accounting Standards Board (AASB)
|Pronouncement||Key dates||More information|
No new significant pronouncements were issued by the AASB in February 2013.
(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)
|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:
|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 on Point — IFRS Accounting Developments and Information: January 2013 (PDF) highlights the month’s important IFRS developments and information
- A Closer Look — Fair value measurement of financial instruments under IFRS 13 (PDF) considers both practical and technical aspects of applying IFRS 13 'Fair Value Measurement' to four specific areas affecting financial instruments valuations and disclosures
- IFRS in Focus: IASB proposes limited scope amendments to IAS 36 describes the IASB’s proposed changes to the disclosure requirements in IAS 36 'Impairment of Assets' on the impairment of non-financial assets
- IFRS in Focus: IASB issues exposure draft on accounting for the sale or contribution of assets between an investor and its associate or joint venture describes the IASB's proposed amendments to IFRS 10 'Consolidated Financial Statements' and IAS 28 'Investments in Associates and Joint Ventures' (2011) to clarify the accounting for the sale or contribution of assets by an investor to its associate or joint venture
- IFRS in Focus: IASB proposes limited scope amendment to IFRS 11 describes the IASB’s proposed guidance on the accounting by joint operators for the acquisition of an interest in a joint operation, as defined in IFRS 11 'Joint Arrangements', when the activities underlying the joint operation constitute a business
- IASB Project Insights provide a quick overview of the current status of the key projects of the IASB. New updates posted in February 2013: Revenue recognition; Financial Instruments: Hedge accounting; Rate regulated activities; Insurance contracts; and Leases.
- 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
- Deloitte comment letter on IASB Exposure Draft 2012/2 — Annual improvements to IFRSs 2011–2013 Cycle.
(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)
- 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).