MINUTES

MINUTES
MEETING:
ICAEW Financial Reporting Committee
DATE:
15 April 2015
LOCATION:
Board Room, Chartered Accountants’ Hall
CHAIRMAN:
Kathryn Cearns
SECRETARY:
Nigel Sleigh-Johnson
ATTENDEES:
Phil Barden, Matt Blake (dial-in), Alex Brougham, Martin Cavey, Jake Green,
Lynn Pearcy, Ken Rigelsford, Danielle Stewart; Observer, Pamela Taylor-100
Group
STAFF:
Sarah Dunn, Eddy James
GUESTS:
Roger Marshall, Financial Reporting Council
APOLOGIES:
Jo Clube, Peter Hogarth, Rajan Kapoor, Liz Murrall, Chris Nobes, Trevor
Pitman, Sondra Tarshis
ITEM
DETAILS
1
Apologies
Apologies were noted from members unable to attend the meeting.
2
Minutes
The draft minutes of the meeting held on 12 March 2015 were approved.
3
FRC Membership
No changes to the membership and external appointments of FRC members were
reported.
4
Guest
Roger Marshall was welcomed to the meeting in his capacity as acting President of the
EFRAG Board, and explained the background to the new arrangements at EFRAG and
the likely position of the new EFRAG on endorsement in general and on IFRS 9 and
IFRS 15 endorsement in particular.
Members raised the issue of prudence in accounting, the EU endorsement criteria and
the work of the Financial Reporting Council, including the impact of the new UK GAAP on
unincorporated businesses, the relevance of deferred tax in micro accounts, and the role
of the Accounting Council and TAG.
MATTERS FOR CONSIDERATION AND DRAFT REPRESENTATIONS
5
Representations - Key Issues
IASB, ED/2014/6, Disclosure Initiative – proposed amendments to IAS 7
Sarah Dunn summarised the key issues. Members suggested a number of changes to
the proposed ICAEW comments.
A final version would be finalised by the chairs of FRC and the working party.
FRC, FRED 58 Draft FRS 105 The Financial Reporting Standard applicable to the
Micro-Entities Regime
Sarah Dunn and Nigel Sleigh-Johnson summarised ICAEW comments and suggestions
for improvements, and reported discussions with FRC staff the day before.
A number of changes were suggested to the ICAEW draft. The merits and drawbacks of
the micro exemptions were also debated.
FRC, FRED 59 Draft amendments to FRS 102 – Small entities and other minor
amendments
Sarah Dunn summarised the concerns about FRED 59. A number of clarifications were
suggested, including on early adoption and cash flow statements.
The process for completing the drafts was agreed and the ‘standing room only’ event with
the FRC on 27 April was referred to.
FRC, FRED 60 Draft amendments to FRS 100 and FRS 101
Sarah Dunn introduced the proposals and ICAEW views. The draft ICAEW submission
was approved.
Basel Committee on Banking Supervision, Consultative document: guidance on
accounting for expected credit losses
Views on the Basel draft and process were discussed.
A positive response with detailed drafting suggestions was agreed to be appropriate. The
ICAEW meeting with the PRA due to take place the following day was mentioned.
European Commission, Green paper: Building a Capital Markets Union
Nigel Sleigh-Johnson introduced the key proposals from a financial reporting perspective.
The Committee asked to see the complete draft submission.
IASB, ED/2015/1 Classification of Liabilities – proposed amendments to IAS 1
Members discussed the key issues and ICAEW draft comments.
A final version of the submission would be circulated for consideration.
6
New Consultations
It was noted that no new consultation papers had been issued since the March 2015
meeting.
2
7
Projects, Presentations and Policy
Faculty developments and recent events
Nigel Sleigh-Johnson reported on membership and conference speakers. Progress was
commended.
Development of the reports: Moving to IFRS Reporting. Lessons Learned from the
European Experience; and the updated version of The Effects of Mandatory IFRS
Adoption in the EU - A Review of Empirical Research.
Nigel Sleigh-Johnson reported on progress.
Other proposed actions regarding guests, projects and discussion events
The attendance of Richard Carter of BIS at June’s FRC meeting was mentioned, along
with other forthcoming events.
8
Other Current Financial Reporting Developments
EFRAG Board paper Assessing prudence in the context of endorsement
It was noted that the paper had been discussed earlier with Roger Marshall.
Accounting treatment under UK GAAP for Accelerated Payment Notices (APNs).
It was reported that a draft ICAEW help sheet has been circulated for comment.
ICAEW Social Housing Sub-Committee’s comments on the classification of
financial instruments under FRS 102
No new developments were reported.
Financial reporting developments in Brussels
CBCR developments were noted, and concerns raised.
Regulations implementing the EU Accounting Directive in the UK
Some outstanding issues were noted.
Other current financial reporting developments, risks and issues
The approach to Lord Hill by IFRS critics was noted.
MATTERS TO NOTE
9
FRC Meeting Arrangements
It was noted that the May meeting of FRC might be cancelled.
OTHER MATTERS
10
TAC and other ICAEW Groups
No issues were reported.
11
Any Other Business
To consider any other business.
3
12
Future Meetings
It was noted that the next meeting scheduled to take place on 14 May 2015 might be
cancelled.
4