June 19, 2019

Erkki Liikanen of the IFRS Foundation delivered a speech at the Eurofiling Conference 2019 in Frankfurt. He addressed the audience on whether digitalization will deliver increased productivity to the global economy and how the IFRS Foundation is undertaking its own digital transformation. He also mentioned that the IFRS Foundation has recently signed-off on a long-term plan to completely overhaul its technology systems and to establish a roadmap for the digital experience to be offered to stakeholders worldwide.

Mr. Liikanen discussed the work of the IFRS Foundation with respect to technology and digitalization. The Foundation has played an important role in the digital reporting space, by providing the IFRS Taxonomy to support the electronic filing and consumption of IFRS-compliant financial information. Regulators worldwide have started to fully embrace electronic filing, with the IFRS Taxonomy being used in Chile, Peru, Mexico, South Korea, South Africa, Australia, and the US. Earlier this month, EC finalized its proposals to require listed companies that prepare consolidated financial statements using IFRS Standards to tag their primary financial statements using the IFRS Taxonomy for financial years, starting on or after January 01, 2020. The requirement is part of the EC’s move to the European Single Electronic Format, an electronic format for EU annual financial reports introduced to support accessibility and transparency of financial information. This is excellent news in the move toward achieving the full benefits of electronic reporting and these benefits will be realized with global adoption of the IFRS Taxonomy.

He also noted the U.S. SEC's previous decision to allow the use of the IFRS Taxonomy by non-US companies listed in the United States', using financial statements that reflect IFRS Standards. This includes both detailed tagging of both the primary financial statements and the notes to the primary financial statements. The tagged data is now available and used by the IFRS Foundation in empirical research underpinning standard-setting. These are important steps in building the institutional infrastructure, added Mr. Liikanen. The IFRS Foundation is part of that infrastructure and it recognizes the importance of its role in developing and maintaining a high-quality IFRS Taxonomy.

IASB has recently appointed a staff person to lead its technology-related standard-setting work. As part of this work, the Foundation will continue to explore how technological developments affect the way financial information is consumed and what this means for the IFRS Taxonomy strategy, in addition to exploring how technology-related innovations affect the standard-setting process. He further highlighted that the IFRS Foundation is about to embark on its own digital transformation. During the last Trustees’ meeting, a long-term plan for the IFRS Foundation to completely overhaul its technology systems has been signed-off and, with it, a plan to establish a roadmap for the digital experience to be offered to stakeholders worldwide. Mr. Liikanen noted, “... we call this a business process and technology program, recognizing that benefits come not just from technology, but also come from rethinking our business processes to deliver enhanced value to our stakeholders around the world. It’s a three-year program of investment, but we’re excited about its potential. Recognizing the importance of this initiative, we have formed a permanent Trustee subcommittee on technology to oversee the program.”

 

Keywords: International, Accounting, Banking, Insurance, Securities, Reporting, IFRS Taxonomy, ESEF, Fintech, Digitalization Roadmap, EC, IFRS

Related Articles
News

US Agencies Consult on Capital Treatment of Land Development Loans

US Agencies (FDIC, FED, and OCC) issued a proposed rule on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the regulatory capital rule.

July 12, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for July 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published answers to five questions related to supervisory reporting.

July 12, 2019 WebPage Regulatory News
News

ESMA Updates Manual for European Single Electronic Format in EU

ESMA updated the reporting manual for European Single Electronic Format (ESEF).

July 12, 2019 WebPage Regulatory News
News

FED Updates Supplemental Instructions for Reporting Form FR Y-9C

FED updated the supplemental instructions for FR Y-9C reporting.

July 12, 2019 WebPage Regulatory News
News

EBA Publishes Report on Monitoring Implementation of LCR in EU

EBA published its first report on the monitoring of the implementation of liquidity coverage ratio (LCR) in EU.

July 12, 2019 WebPage Regulatory News
News

APRA Applies Additional Capital Requirements to Three Australian Banks

APRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments.

July 11, 2019 WebPage Regulatory News
News

IMF Report on 2019 Article IV Consultation on Euro Area Policies

IMF published its staff report in context of the 2019 Article IV consultation on euro area policies with member countries.

July 11, 2019 WebPage Regulatory News
News

FSB to Survey Practices on Cyber Incident Response and Recovery

FSB launched a survey on the industry practices on cyber incident response and recovery.

July 11, 2019 WebPage Regulatory News
News

ECB Appoints New Members of Supervisory Board

The Governing Council of ECB appointed Edouard Fernandez-Bollo, Kerstin af Jochnick, and Elizabeth McCaul as representatives to the Supervisory Board of ECB Banking Supervision, for a five-year non-renewable term.

July 11, 2019 WebPage Regulatory News
News

OSFI Consults on Applying Proportionality to Pillar 1 Rules in Canada

OSFI published a discussion paper seeks input on possible tailoring of the capital and liquidity requirements for small and medium-size deposit-taking institutions.

July 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3435