In balance – May 2013
Welcome to In balance, our monthly update on financial reporting developments. In balance is designed to help keep you one step ahead by providing easy access to the information you need, all in one place.
This month we have issued IASB Projects: A Pocketbook Guide. The publication assists users in tracking the key features of active projects and tentative decisions made by the IASB, as well as highlighting potential implications for businesses to consider.
Also noteworthy is draft legislation proposing amendments to disclosures of remuneration for key management personnel, issued by Treasury as a result of removing these requirements from the relevant accounting standards.
Finally, our latest edition of IFRS Developments focuses on the impact of proposed changes to IFRS 11 Joint Arrangements for entities in the oil and gas, and mining and metals industries.
- Hot topics
- IFRS news and updates
- AASB news and updates
- Industry in focus
- On the horizon
- Events and webcasts
- IASB Projects: A Pocketbook Guide
Ernst & Young’s pocketbook guide summarises key features of the active projects and tentative decisions made by the IASB up to 31 March 2013. This publication also includes potential financial and business implications of the proposed standards, along with our views on certain projects.
- Treasury issues Corporations Legislation amendment
Treasury has issued legislation to amend the Corporations Regulations to incorporate disclosures regarding key management personnel (KMP) into the remuneration report for disclosing entities. These proposals, together with the changes to the accounting standards, will only result in a change in the location of the individual KMP disclosures and are not expected to have a significant impact on the reporting process.
The following disclosures will now be included in the remuneration report:
- Equity holdings and transactions
- Rights and option holdings and transactions
- Transactions involving loans
- Other related party transactions
This change is effective for reporting periods beginning on or after 1 July 2013.
Comments are invited on the draft regulation by 10 May 2013.
Access the paper here: http://www.treasury.gov.au/~/media/Treasury/Consultations%20and%20Reviews/2013/Corporations%20Legislation%20Amendment%20Regulation%202013/Key%20Documents/PDF/Draft%20Regulations.ashx
IFRS news and updates
- IFRS 12 Example Disclosures for Interests in Unconsolidated Structured Entities
The latest Applying IFRS publication examines disclosure requirements for entities that meet the definition of a structured entity, yet are not consolidated into the reporting entity, and provides illustrative examples.
- IASB to clarify interaction between unit of account and fair value measurement requirements
This edition of IFRS Developments summarises the IASB proposals to clarify the unit of account for investments in subsidiaries, associates and joint ventures, and the interaction between that unit of account and the fair value measurement requirements in IFRS 13.
- IASB issues proposals on rate regulation
The IASB has published the exposure draft(ED) Regulatory Deferral Accounts as part of its Rate-regulated Activities research project. This ED proposes an interim standard that allows entities that adopt IFRS, and that currently recognise regulatory deferral accounts in accordance with their previous GAAP, to continue to do so. This will allow those entities to avoid making major changes in accounting policy on transition to IFRS until guidance can be developed through the comprehensive project.
Access the paper here:
- April 2013 IASB Update
The IASB met at the IASB offices in London from 23-25 April 2013. The publication below summarises the key issues discussed.
Access the paper here:
- IFRS Resources: Essential resources for effective application of IFRS
This document describes Ernst & Young's IFRS publications, their frequency and how to access them. It summarises each type of publication in order to help you to stay up to date with IFRS developments.
AASB news and updates
- April 2013 AASB Action Alert
Action Alert No. 157, for the 130th meeting of the AASB, which was held on 10 April 2013, is now available.
Access the paper here:
Industry in focus
- Boards discuss allocation of insurance contracts revenue and consider changes
In January and February 2013, the IASB and the FASB re-deliberated the decisions made in the IASB’s ED Insurance Contracts.
The latest edition of Insurance Accounting Alert summarises these discussions.
Oil and gas, mining and metals
- IFRS Developments: Acquisitions of interests in joint operations that are businesses
Entities in the mining and metals and oil and gas sectors may be affected by the proposed amendment to IFRS 11 Joint Arrangements. The proposed amendment would require an entity to apply the principles of business combinations accounting to transactions involving the acquisition of an interest in a joint operation that is a business.
Here we summarise the proposed changes and explore some of the potential implications for mining and metals and oil and gas entities.
Access the publication here.
Access the publication for Oil and Gas here.
On the horizon
Closing dates for comment letters on exposure drafts and consultation papers
|Exposure draft|| AASB comment |
| IASB comment |
|Request for information on Rate Regulation||7 May 2013||30 May 2013|
|ED 237 Financial Instruments: Expected Credit Losses||10 May 2013||5 July 2013|
|ED 239 Defined Benefit Plans: Employee Contributions||24 June 2013||25 July 2013|
|ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities||30 June 2013||N/A|
|ED 2013/5 Regulatory Deferral Accounts||N/A||4 September 2013|
Events and webcasts
Click here to access a summary of all upcoming webcasts.
Archived recordings of all our previous webcasts are available here.