2014-01-30 AC Insights - Winter 2014

AC Insights provides audit committee members with a summary of financial reporting developments for public companies using IFRS or US GAAP, how those developments might affect their companies and things they may want to think about.

In this Canadian edition, we discuss IFRS, CSA, SEC and IIRC developments. In particular, the IASB’s new version of IFRS 9: Financial instruments that simplifies hedge accounting. The IASB also finalized some of its annual improvements and other clarifications which address important but non-urgent issues. In this edition, we highlight these changes.

With the start of a new year, Canadian investment companies will adopt IFRSs. For other companies, there are only a few minor changes to existing standards that are effective for 2014 and these changes are outlined in this edition of AC Insights. Also, data on inflation trends in various countries has been reviewed and we outline economies that might be considered hyperinflationary and may require adjustments in the financial statements using IFRSs.

The OSC staff completed its review of disclosures about non-GAAP and additional GAAP measures and noted some areas where significant improvements should be made. Also, the annual AICPA National Conference on Current SEC and PCAOB Developments was held in December. In this edition, we have summarized the matters outlined by the securities administrators.

In December, the International Integrated Reporting Council released their Framework for Integrated Reporting. In this edition, we outline the status of the report and observations of Canadian respondents to the draft Framework.

AC Insights Winter 2014 – CDN Edition (144 KB)
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In this US GAAP edition, we discuss US GAAP, CSA, SEC and IIRC developments. The only development made by the FASB during the last quarter of 2013 was the finalization of the definition of a public company. This is an important step in the continued development of exemptions for private enterprises from standards applicable to public companies. The FASB continues to work on a number of standards including the finalization of the revenue standard expected in the first half of 2014. The FASB also ratified four interpretations made by the Emerging Issues Task Force. In this edition, we summarize these developments.

With the start of a new year, previously issued Accounting Standards Updates become effective. The changes for 2013 are clarifications or amendments to existing standards which have been outlined in this edition of AC Insights. Also data on inflation trends in various countries have been reviewed and we outline the SEC views on economies that might be considered hyperinflationary and require adjustments in the financial statements using US GAAP.

The OSC staff completed its review of disclosures about non-GAAP and additional GAAP measures and noted significant improvements are required. While the OSC focused on non-GAAP and additional GAAP measures based on IFRSs financial information, we summarize their findings on non-GAAP measures in this edition as these issues may also be relevant to issuers using US GAAP.

In December, the International Integrated Reporting Council released their Framework for Integrated Reports. In this edition, we outline the status of the report and observations of Canadian respondents to the draft Framework.

AC Insights Winter 2014 – US Edition (139 KB)
Download the full PDF.

For more information on any topics, please speak to your PwC engagement team. Our Accounting Advisory Services team would be pleased to discuss with you how they may be able to help your company implement any new IFRS standards.