IFRS Publishes Summary of September 2019 Meeting of Advisory Council
IFRS published a summary of the meeting of the IFRS Advisory Council, along with the agenda papers and recordings. The meeting was held during September 18-19, 2019 in London. The agenda included the discussion and provision of advice in relation to the effect of technology on the investment process and its potential consequences for the IFRS Foundation. Other items on the agenda included the approach to facilitating consistent adoption and application of IFRS standards; digital experience for IFRS Foundation customers and stakeholders; and the proposed approach to the 2020 Agenda Consultation.
Key takeaways from the meeting include the following:
- Effect of technology on the investment process and the potential consequences for IFRS Foundation. Members of the Advisory Council noted that the Board needed to be careful about making changes to standards and to consider the impact of the changes on the technological analysis of data. The Foundation needs to consider its core competencies, potentially around recognition and measurement and the process of standard-setting. The Foundation should consider lending a hand or otherwise get involved in other relevant standard-setting arenas.
- Consistent adoption and application of IFRS standards. The Advisory Council members considered to what extent should the IFRS Foundation refresh its approach to monitoring consistent adoption and application of standards. For monitoring activities, the Foundation should consider working in partnership with others, including data aggregators about producing the information. To ensure consistent application, the Foundation should consider, in advance of issuing standards, matters in relation to translation and cultural application of language to ensure that standards are written to encourage consistent application.
- Risks confronting the IFRS Foundation. In general, members were in agreement with the risks that had been identified by the Foundation. However, there was a suggestion that risks around financing should be considered for inclusion. No significant new actions were identified for the Foundation to consider to minimize the impact of the risks, although a number of identified actions could be considered further by the Foundation.
- Proposed approach to the 2020 Agenda consultation. Members were generally supportive of the proposals of the management. The majority of members supported the proposal to include a shortlist of potential projects as well as a suggestion to include some form of preliminary Board thoughts on the topics, rather than the Board’s full preliminary views of which potential projects from the shortlist it proposes to add to its work plan. In addition, a majority of members supported the proposal to reassess the priority pipeline projects from its previous work plan that had not yet been commenced. Members also advised the Foundation to consider how best to determine and communicate the criteria for determining the appropriate work plan.
Keywords: International, Banking, Insurance, Securities, Risk Management, IFRS Standards, Advisory Council, IFRS, IASB
Previous Article
EC Amends Rules on Procedures, Formats, and Templates of SFCRRelated Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.
