Desde Inform News uk PWC

Accounting and corporate reporting
Exposure drafts and discussion papers
IASB issues exposure draft on improvements to IFRS 8,'Operating segments'
The proposed amendments follow on from a Post-implementation review (PIR) of IFRS 8 that was carried out to assess whether the standard works as intended. The PIR confirmed that the standard generally functions well but identified some areas that could benefit from improvements.

The proposed improvements in the exposure draft include amendments:

• to clarify and emphasise the criteria that must be met before two operating segments may be aggregated;
• to require companies to disclose the title and role of the person or group that performs the function of the chief operating decision maker; and
• to require companies to provide information in the notes to the financial statements if segments in the financial statements differ from segments reported elsewhere in the annual report and in accompanying materials.

The Board has also proposed to amend IAS 34, 'Interim financial reporting', to require companies that change their segments to provide restated segment information for prior interim periods earlier than they currently do.

Comments are due 31 July 2017.

IASB issues a discussion paper on the disclosure initiative
IASB issues a discussion paper on the disclosure initiative

The discussion paper 'Principles of disclosure' suggests principles to make disclosures in financial statements more effective.

Ultimately, it is expected that the discussion paper could lead to amendments to IAS 1,'Presentation of financial statements', or the development of a new general disclosure standard.

Some specific suggestions in the discussion paper include:

• 7 principles of effective communication, which could be included in a general disclosure standard or described in non-mandatory guidance;
• Possible approaches to improve disclosure objectives and requirements in IFRS Standards; and
• Principles of fair presentation and disclosure of performance measures and non-IFRS information in financial statements, to ensure that such information is not misleading.

The discussion paper is open for comments until 2 October 2017.

PwC guidance
‘Brexit’ and implications for income tax - PwC In brief
The UK Government is about to give formal notice of its intention to leave the EU. This notice will trigger the process of negotiating the UK’s exit, which is likely to last at least two years. There are various tax reliefs and exemptions that apply to transactions between UK entities and entities in other EU member states, under existing tax laws, that might cease to apply when the UK’s exit finally occurs. The tax legislation, if any, that will replace those reliefs and exemptions is unknown at this stage. This In brief addresses the potential implications for income tax accounting.

Demystifying IFRS 9 impairment – modified financial assets - PwC video
PwC’s IFRS 9 banking specialists, Sandra Thompson and Mark Randall discuss the implications of renegotiated debt terms on expected credit losses in this short video: Demystifying IFRS 9 Impairment 11. Modified financial assets. They share insights about the interaction with credit systems, derecognition policies and modification gains and losses.

IFRS year end accounting reminders - March 2017
The 31 March 2017 IFRS year end accounting reminders is a publication that outlines the IFRS reporting requirements as at 31 March 2017. It the standards that apply at this date; and the standards are published but effective at later dates and hence required to be disclosed plus a summary of the latest topical issues.

Tools, practice aids and publications
IFRS 15 for real estate – PwC In depth
In May 2014, the IASB and FASB issued their long-awaited converged standard on revenue recognition. The effect on entities will vary depending on industry and current practices but almost all entities will see a significant increase in required disclosures. The PwC guide “Revenue from Contracts with Customers, 2016” is a comprehensive analysis of the new standard. This supplement highlights some of the areas that could pose the most significant challenges for real estate managers and developers as they transition to the new standard. This supplement should also be read in conjunction with our supplements for the Engineering and Construction and Asset Management industries.

New IFRSs for 2017 – PwC In depth
This guide summarises the new amendments and IFRIC issued by the IASB since 2016, plus those standards and amendments issued previously that are effective from 1 January 2017. It gives an overview of the impact of the changes, which may be significant for some entities, helping companies understand if they will be affected and to begin their considerations. Hard copies can be ordered from www.ifrspublicationsonline.com. PwC staff should refer to the internal guidelines for ordering publications (UK staff - click here).

Other news
IFRIC Update - March 2017
The Committee met in London on 14 and 15 March 2017, and the update includes:

• Items on the current agenda
  • IFRS 3 Business Combinations and IFRS 11 Joint Arrangements—Previously held interests (Agenda Paper 9)
  • IAS 19 Employee Benefits—Plan amendments, curtailments or settlements (Agenda Paper 2)
• Committee’s tentative agenda decisions
  • IFRS 1 First-time Adoption of International Financial Reporting Standards—Subsidiary as a first-time adopter (Agenda Paper 5)
  • IFRS 9 Financial Instruments—Modifications or exchanges of financial liabilities that do not result in derecognition (Agenda Paper 11)
  • IAS 12 Income Taxes—Interest and penalties related to income taxes (Agenda Paper 6)
  • IAS 19 Employee Benefits—Discount rate in a country that has adopted another country’s currency (Agenda Paper 3)
  • IAS 32 Financial Instruments: Presentation—Centrally cleared client derivatives (Agenda Paper 10)
  • IAS 33 Earnings per Share—Tax arising from payments on participating equity instruments (Agenda Paper 4)
  • IAS 41 Agriculture—Biological assets growing on bearer plants (Agenda Paper 7)
• Committee’s agenda decisions
  • IFRS 10 Consolidated Financial Statements—Investment entities and subsidiaries (Agenda Paper 8A)
  • IAS 12 Income Taxes—Deferred taxes when acquiring a single-asset entity that is not a business (Agenda Paper 8C)
  • IAS 28 Investments in Associates and Joint Ventures—Fund manager’s assessment of significant influence (Agenda Paper 8B)
  • Commodity loans (Agenda Paper 8D)
• Other Matters
  • Committee work in progress update (Agenda Paper 12)
  • Matters reported to the Board (Agenda Paper 13)

IASB update - March 2017
The March 2017 IASB Update has been published and the IASB Work Plan has been updated.

The topics for discussion were:

• Wider corporate reporting
• Goodwill and impairment
• Discount rates—present value measurements
• Insurance contracts
• Primary financial statements
• Conceptual framework for financial reporting
• Dynamic risk management
• Financial instruments with characteristics of equity

IASB Investor update - March 2017
In this issue of the IASB Investor update :

• Spotlight—overview of the proposed amendments to IFRS 8,' Operating segments'
• Right Here, Right now - IAS 7, Statement of cash flows', amendments
• We need your views
• Stay up to date: information on investor materials and current events

IFRS SMEs update - March 2017
The March 2017 IFRS SME update has been published and covers

• Update on global use of the IFRS for SMEsstandard
• IFRS for SMEs standard translations - status report
• where to obtain information about the IFRS for SMEsstandard