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Monthly roundup - September 2013

Staying on top of financial reporting developments

Author: Wendy Wang and Moana Overton, Accounting Technical Group

September 2013 edition
Issued 09 October 2013

In this edition:

Monthly highlights

Deloitte responds to the Joint IASB-FASB Exposure Draft on leases

Deloitte’s comment letter agrees that conceptually the right-of-use (ROU) asset approach depicts the rights and obligations for lessees and should serve as the foundation for changes to the existing lease standard.

However Deloitte has significant concerns with the approach currently included in the proposal, specifically:

  • The concept of the Type B lessee approach, specifically, this may result in an increasing amount of amortisation over the lease term and the proposed dual-model approach may also be more costly and complex for preparers as compared to the current lease standards, and may not result in sufficiently improved information for users
  • Combination of the proposed measurement and disclosure requirements for the lease liability may not provide financial statement users with sufficient information about a lessee’s future lease payments; and 
  • IASB have not yet sufficiently developed the ROU model for lessors and the proposed lessor accounting did not show a significant improvement over the existing lessor accounting model.

The comment letter also questions whether the cost-benefit analysis of introducing this new model continues to support the case for change at this stage of the development of the ROU concept.

Please refer to full comment letter on IAS Plus website.

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).

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

Tier 2 Supplement to ED 242 ‘Leases’

Sets out the disclosures proposed in AASB ED 242 from which it is proposed entities applying Tier 2 reporting requirements should be exempt

Comments to the AASB due by 15 November 2013

Tier 2 supplement (PDF)


International Accounting Standards Board (IASB)
Pronouncement Key dates More information
No major accounting pronouncements released by the IASB in September 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
AASB regular meeting 

4 – 5 September 2013

Key issues discussed include:

  • AASB ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities 
  • Emissions Trading Schemes 
  • Withdrawal of AASB 1031 Materiality 
  • AASB ED 242 Leases 
  • Outcomes of IASB’s post-implementation review of IFRS 8 Operating Segments 
  • Tier 2 Supplement - ED 235 Recoverable Amount Disclosures for Non-Financial Assets 
  • Update on IASB’s Financial Instruments project 
  • Accounting for stapled entities 
  • Update on IFRS Interpretations Committee activities

AASB action alert 

IFRIC  regular meeting 

10 – 11 September 2013

Key issues discussed include:

  • IAS 19 Employee Benefits— 
    • Employee benefit plans with a guaranteed return on contributions or notional contributions 
  • IFRS 2 Share-based Payment— 
    • Transactions in which the manner of settlement is contingent on future events
    • Accounting for cash-settled share-based payment transactions that include a performance condition 
    •  Price difference between the institutional offer price and the retail offer price for shares in an initial public offering 
  • IAS 32 Financial Instruments: Presentation - Classification of financial instruments that gives the issuer the contractual right to choose the form of settlement 
  • IFRS 10 Consolidated Financial Statements - Protective rights and continuous assessment of control under IFRS 10 
  • IFRS 5 Non-current Assets Held for Sale and Discontinued Operations –
    • Classification in conjunction with a planned IPO, but the prospectus has not been approved by the securities regulator 
    • Write-down of a disposal group and reversal of a disposal group impairment losses relating to goodwill 
  • Deliberation of comments received on proposals for narrow-scope amendments 
    • ED/2012/5 Clarification of acceptable methods of depreciation and amortisation—Proposed amendments to IAS 16 and IAS 38 
    • ED/2013/4 Defined Benefit Plans: Employee Contributions—Proposed amendment to IAS 19

Deloitte observer notes

IFRIC update (PDF)


IASB regular meeting

13 – 18 September 2013

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

Deloitte observer notes

IASB update (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

Other publications

Deloitte Comment letter

  • Deloitte comment letter on the International Accounting Standards Board’s Exposure Draft, ED/2013/5 'Regulatory Deferral Accounts'
  • Deloitte comment letter on the International Accounting Standards Board’s and Financial Accounting Standards Board’s Joint Exposure Draft on leases.

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 September 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
International Accounting Standards Board
  • The International Accounting Standards Board (IASB) has released a new edition in its 'Investor Perspectives' series. In this edition, Patrick Finnegan (IASB Board member) discusses the proposals in revised insurance contracts exposure draft (IAS Plus article)
  • The IFRS Foundation has launched a new web application (web app) for accessing IFRS content and related information from tablet computers and other mobile devices. The app currently supports Apple iPad and iPhone devices, with support for Android coming soon. (IAS Plus article
  • The IASB has released its updated work plan. Changes include: 
    • The work plan formalises plans for finalised requirements as being expected in the first or second quarter of 2014 in relation to the impairment of financial instruments and the limited reconsideration of IFRS 9 (classification and measurement)
    • Deferrals have been announced in the finalisation of the IFRS on revenue recognition, a discussion paper on rate regulation, and exposure drafts for a number of narrow scope projects (IAS Plus article). 
  • The IFRS Foundation has announced that 'A Guide through IFRS 2013' is now available. This volume (nicknamed the 'Green Book') includes the full text of the Standards and Interpretations and accompanying documents (such as the Basis for Conclusions) issued by the IASB as of 1 July 2013 with extensive cross-references and other annotations (IAS Plus article). 
  • The IFRS Foundation has published 'A Guide to the IFRS Education Initiative' highlighting the progress made in each of the IFRS Foundation Education Initiative’s main projects (IAS Plus article). 
  •  The IASB staff have published a summary of feedback from investors and analysts on the lessee accounting proposals. The outreach events summarised were held between May and September 2013 (IAS Plus article).
Other global news
  • The European Financial Reporting Advisory Group (EFRAG) has published its final comment letter on the IASB’s exposure draft ED/2013/5 ‘Regulatory Deferral Accounts.’ The comment letter makes clear that EFRAG constituents do not support the pursuit of this interim project (IAS Plus article). 
  • The European Securities and Market Authority (ESMA) have published its final comment letter on the IASB’s exposure draft ED/2013/5 ‘Regulatory Deferral Accounts.’ The comment letter makes clear that ESMA agrees with EFRAG, does not support the pursuit of this interim standard (IAS Plus article).
  • The EFRAG and the National Standard Setters of France, Germany, Italy and the United Kingdom have published two more issues of their joint publication series on the IASB's Conceptual Framework project relating to the role of the business model in financial reporting and the role of a Conceptual Framework (IAS Plus article). 
  • The European Financial Reporting Advisory Group (EFRAG) has submitted to the European Commission its endorsement advice letter and effects study report on IFRIC Interpretation 21 Levies (IAS Plus article). 
  • The Association of Chartered Certified Accountants (ACCA) has published the third report in a four-part project undertaken to understand the investor perspective on corporate reporting. This third report details findings from a survey carried out to gather feedback from investors on their views on 'real-time' reporting. The report highlights that there is a genuine demand for real-time reporting among investors who however also see a number of downsides that need to be taken into consideration before real-time reporting becomes a reality (IAS Plus article). 
  • The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Discussion Paper (DP) containing proposals for topical areas where the IASB considers a revision and amendment of the existing Conceptual Framework necessary (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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