Last year’s annual accounting update was themed around the “new normal” and how the COVID-19 pandemic had disrupted lives, and made “certainties” less certain. We covered the work of standard setters in helping practitioners to prepare for and respond to the new normal. Back then, it was uncertain how long the disruption would continue and what the lasting impact would be.
Lat year’s annual accounting update was themed around the “new normal” and how the COVID-19 pandemic had disrupted lives, and made “certainties” less certain. We covered the work of standard setters in helping practitioners to prepare for and respond to the new normal. Back then, it was uncertain how long the disruption would continue and what the lasting impact would be.
Now, though COVID-19 has begun to be tamed, the pandemic is not over. Therefore, this year’s conference is themed around this idea that the COVID-19 pandemic has changed the world, and its effects will persist for years to come. It is therefore necessary to move on and prepare for future changes in financial reporting and corporate reporting more generally. “You gotta move on.”
Over the past year there have been some revisions to financial reporting standards to account for how the pandemic has changed the world. For example, as the pandemic continued, the International Accounting Standards Board (IASB) issued an amendment which extended the availability of the practical expedient in International Financial Reporting Standard (IFRS) 16 Leases to rent concessions that reduce lease payments due on or before 30 June 2022. We are also preparing for the introduction of IFRS 17 Insurance Contracts, which will become effective on 1 January 2023 and significantly change the financial reporting of insurance companies.
The increasing importance of environmental, social and governance considerations is changing the corporate reporting landscape. However, at the moment there are a number of competing reporting frameworks. The Trustees of the IFRS Foundation are seeking to create an International Sustainability Standards Board (ISSB) to set global standards for sustainability reporting, just like how the IASB sets financial reporting standards. This year, the Trustees undertook a consultation on this project, and have begun work to create the ISSB.
“Now, though COVID-19 has begun to be tamed, the pandemic is not over. Therefore, this year’s conference is themed around this idea that the COVID-19 pandemic has changed the world, and its effects will persist for years to come.”
About the conference
Join this year’s Annual Accounting Update conference, which will be held virtually, on Saturday, 13 November from 9:00 a.m. to 1:00p.m. for an update on the latest developments in standard setting. I will begin the virtual conference with a presentation on how financial reporting standards are set, including the Institute’s standard setting function, and the progress of some major standard setting projects.
After my presentation, Lisa Zhang, Director at PwC, will discuss application issues of financial reporting standards, including recent agenda decisions by the IFRS Interpretations Committee, and new and not-yet-effective standards. After me, the conference will turn to discussing the future, with two presentations on the future of corporate reporting and emerging issues. The first will cover climate change, sustainability reporting, and the IASB’s focuses for the year ahead. The second will cover cryptocurrencies and special purpose acquisition companies.
After viewing the conference, participants will have a good understanding of how standards are set now, and how they are likely to develop in the future. Visit the Institute’s website for the enrolment details.
Ernest Lee FCPA (practising) is Technical Partner at Deloitte China. He has very extensive experience in auditing and providing technical advice on accounting and auditing related matters in a variety of industries across Asia-Pacific. He is Chairman of the Institute’s Financial Reporting Standards Committee, and a member or former member of various advisory panels and committees of the Institute. He is a member of the Financial Reporting Review Panel of the Financial Reporting Council and also serves as an advisor to the Master of Accounting programme of Cambridge Judge Business School, University of Cambridge.
