Financial reporting update: FRC review, IFRS adoption, and more

Financial Reporting Council under review

The UK government has announced a review of the function of the Financial Reporting Council (FRC). The review will assess the regulator’s “governance, impact, and powers, to help ensure it is fit for the future”, according to a news release. The aim of the review is to make the FRC the best in class, the release said.

In a statement, an FRC official said the review was welcomed. “Meeting public expectations means using our powers effectively, working closely with other regulators, and identifying where gaps in those powers exist,” Sir Win Bischoff, chair of the FRC, said in a news release.

The review is scheduled to be completed by the end of the year.

IFRS on the increase

The International Federation of Accountants (IFAC) published the results of a survey among its members as International Standards: 2017 Global Status Report.

The report includes a section on adoption of IFRS and notes that there has been a considerable increase in their adoption across the globe.

IFRS 17 update

The European Financial Reporting Advisory Group (EFRAG) has hired Italian consulting firm Valdani Vicari & Associati (VVA) and advisory firm London Economics to provide economic input into EFRAG’s impact analysis of IFRS 17, Insurance Contracts.

VVA and London Economics seek input from a wide range of stakeholders. EFRAG is encouraging completion of the survey by close of business on 31 May.

International Accounting Standards Board update

The IASB is updating guidance on management commentary to reflect the European Non-Financial Reporting Directive and UK and other countries’ updated strategic guidance as well as developments within integrated reporting. The commentary was last updated in 2010.

— David Hackett is technical policy manager at the Association of International Certified Professional Accountants. To comment on this article or to suggest an idea for another article, contact Neil Amato, an FM magazine senior editor, at Neil.Amato@aicpa-cima.com.