November 27, 2018

IASB published the November issue of its Investor Update, which is intended to make it easy for investors to keep up to speed on changes in the International Financial Reporting Standards (IFRSs) and how those changes may affect investors. This issue discusses, among other topics, the new disclosure requirements for financial instruments with characteristics of equity and highlights certain benefits and new disclosures observed from entities applying IFRS 9.

In the article on financial instruments with characteristics of equity, the Investor Update highlights essential aspects of this new classification, along with the presentation and disclosure requirements for financial instruments issued by companies, as proposed in the recently published Discussion Paper. IASB expects that investors will find the results of the proposals useful when analyzing companies that issue financial instruments that have characteristics of both liabilities and equity. IASB published the above-mentioned discussion paper in June 2018, The paper sets out the Board's "preferred approach" to improve the information that companies provide in their financial statements about financial instruments they have issued. The paper is open for comments until January 07, 2019 and the Board is seeking feedback on the accounting for financial instruments with characteristics of equity. The Board’s preferred approach seeks to: 

  • Provide classification principles with a clear rationale for why an instrument is classified as either a liability or equity without fundamentally changing the existing classification outcomes of IAS 32
  • Enhance the information provided through presentation and disclosure so that investors can get richer and more comparable information about financial liabilities and equity instruments issued by companies

This Investor Update also contains an article that reports on the implementation of IFRS 15 and IFRS 9. The IFRS 9 article highlights the most common disclosures provided by corporates and banks from the first-time adoption of these new standards. The Update also mentions that Hans Hoogervorst, the IASB Chair, spoke at an event hosted by the Accounting Standards Board of Japan about adoption of IFRS Standards worldwide and the Board's work on Goodwill and Better Communication. Other updates cover composition of the Management Commentary Consultative Group, developments at the first meeting of the group, and certain management changes. 

Keywords: International, Accounting, Banking, IFRS 9, Investor Update, Financial Instruments, IASB

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