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Monthly roundup - June 2013

Staying on top of developments

Author: Deepesh Malik and Moana Overton, Accounting Technical Group

June 2013 edition
Issued 08 July 2013

In this edition:

Monthly highlights

ASIC focus areas

The Australian Securities and Investments Commission (ASIC) has released its findings from its review of 31 December 2012 financial reports and announced its areas of focus for 30 June 2013.

ASIC have continued to highlight the importance of reporting performance, including addressing the impact of new accounting standard requirements and focus on asset values in light of the current economic climate. Directors should focus on disclosures of useful and meaningful information for investors and other users.

Some of the key areas of focus are:

  • disclosure in the operating and financial review for listed entities;
  • impact of new accounting standards relating to consolidated financial statements and joint arrangements;
  • impairment of goodwill and other non-current assets;
  • the value of financial instruments that are not traded in an active market;
  • going concern assessment; and
  • revenue recognition and expense deferral policies.


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 June 2013 financial reporting cycle summary.)

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

Exposure Draft ED/2013/7 Insurance Contracts

Revised proposals (based on feedback received on ED/2010/8 ‘Insurance Contracts’) focus on five key aspects:

  • adjusting the unearned profit from insurance contracts
  • accounting for contracts that specify a link to the returns on underlying items that the entity is required to hold
  • presentation of insurance contract revenue and expenses
  • presentation of interest expense between profit or loss and the other comprehensive income
  • full retrospective approach to transition
Comments due by 25 October 2013

IFRS in focus (PDF)
Deloitte Podcasts
IAS Plus article

Exposure Draft ED/2013/8 Agriculture: Bearer Plants

Proposed amendments to IAS 16 ‘Property, Plant and Equipment’ and IAS 41 ‘Agriculture’ to include bearer plants which no longer undergo significant biological transformation into the scope of IAS 16. (Note: Currently, IAS 41 requires that all biological assets that are related to agricultural activity must be measured at fair value less costs to sell)

Comments due by 28 October 2013

IFRS in focus (PDF)
IAS Plus article

Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39 Financial Instruments: Recognition and Measurement)

Under the amendments there would be no need to discontinue hedge accounting if a hedging derivative was novated, provided certain criteria are met.

Effective for annual periods beginning on or after 1 January 2014

IFRS in focus (PDF)
IAS Plus article

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

AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

Narrow-scope amendments to AAS 136 'Impairment of Assets' address the disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. It follows similar guidance issued by the IASB in May 2013

Effective for annual periods beginning on or after 1 January 2014

IFRS in focus (PDF)
AASB 2013-3

Interpretation 21 Levies

Clarifies the circumstances under which a liability to pay a levy imposed by a government should be recognised, and whether that liability should recognised in full at a specific date or progressively over a period of time

Effective for annual periods beginning on or after 1 January 2014

IFRS in focus (PDF)
INT 21

Exposure Draft ED 243 Withdrawal of AASB 1031 Materiality

Proposes withdrawing AASB 1031 and making consequential amendments in other Australian Accounting Standards (including Interpretations).

Comments to the AASB are requested by 23 August 2013

ED 243 (PDF)

ED 244 Insurance Contracts

Incorporates the IASB ED/2013/7, discussed above

Comments to the AASB due by 27 September 2013 and to the IASB by 25 October 2013

ED 244 (PDF)

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 - 19 June 2013

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

Deloitte Observer notes

 

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
Other publications
Deloitte podcasts
Deloitte comment letters
  • Deloitte comment letter to IFRS Interpretations Committee (IFRIC) on draft agenda decision on IAS 19 — pre-tax or post-tax discount rate.

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 June 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 Securities and Investments Commission (ASIC) has released its areas of focus for 30 June 2013 financial reports
  • The Australian Accounting Standards Board (AASB) has published on its website the new compiled versions of Standards and Interpretations that apply to annual reporting periods beginning on or after 1 January 2013.
International Accounting Standards Board
  • IASB has issued guidance to help micro-sized entities apply the IFRS for Small and Medium-sized Entities (IFRS for SMEs). The Guide accompanies, but is not part of, the IFRS for SMEs (IAS Plus article)
  • IASB has updated its work plan - the expected timing of the classification and measurement, impairment, and macro hedge accounting projects has been pushed back (IAS Plus article)
  • IASB chairman announces 10-point plan in relation to disclosures (IAS Plus article)
  • .
Other global news
  • The European Financial Reporting Group (EFRAG) has issued a report containing the results of the field test conducted by the EFRAG and National Standard Setters (NSS) ANC, ASCG, FRC and the OIC, on how the new requirements in IFRS 9, as amended by Exposure Draft (ED) 'Classification and Measurement: Limited Amendments to IFRS 9', would affect the current classification and measurement of financial assets (IAS Plus article)
  • The EFRAG has issued a feedback statement on the questionnaire on subsequent measurement of goodwill. The results of the study indicate that information on goodwill is used in many different manners and that there are many different views on how to measure goodwill after initial recognition (IAS Plus article).

Related links

Related links

  • Monthly roundup - December 2013
    Key considerations for the December reporting season and ASIC findings from 30 June 2013 financial reports.
  • 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 - January 2013
    Financial reporting developments during January 2013. Monthly highlights discuss the EFRAG concerns on Hedge Accounting proposals and identification of a 'business' in a transaction
  • Monthly roundup - January 2009
  • 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 - April 2010
    Summary of developments in financial reporting during April 2010. Monthly highlight discusses the AASB's April meeting.

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