A final response has now been submitted to the IASB's General Presentation and Disclosures Exposures Draft. The full response is here
The draft response to the IASB’s Exposure Draft ED/2019/7 General Presentation and Disclosures is here
. The response outlines tentative views on the Exposure Draft. We welcome stakeholders’ views to inform the FRC’s final response to the IASB’s ED, and we invite comments from UK stakeholders on the following questions, which are included in our draft comment letter:
Do you anticipate that the proposed operating profit subtotal will work sufficiently well for entities in general, and for financial institutions in particular? Please explain your rationale.
Do you anticipate any issues in implementing the proposed requirement to include in the operating category income and expenses from investing activities undertaken in the course of the entity’s main business activities? Please describe any issues and your proposed solution.
To what extent is it feasible to analyse financing income and expenses into those which relate to the provision of financing to customers and those which do not?
Is information on the income and expenses from providing finance to customers already available to meet regulatory requirements, in other sources available to the public, or in investor presentations?
If information on the income and expenses from providing finance to customers is not already available, what practicalities and costs would be involved in providing it? Please provide details.
To what extent is the IASB’s proposed split of associates and joint ventures into an integral category and a non-integral category desirable and feasible? What costs and practicalities would be involved?
To what extent do you support our proposals for enhanced disclosures on associates and joint ventures? What practicalities would be involved? How many associates and joint ventures do you report on?
To what extent is the proposed presentation and disclosure of immaterial items in paragraphs 27 and 28 of the Exposure Draft desirable and practical? What are the costs and practical implications?
How feasible are the proposals to require an analysis of operating expenses by nature either in the statement of profit or loss or in the notes? Please provide details of the practicalities and costs that such an analysis would involve.
To what extent are the IASB’s proposals to define and disclose unusual items practicable and useful? Please explain the rationale for your answer.
To what extent is our proposed definition of unusual items and associated disclosure requirements practicable and useful? Please explain the rationale for your answer.
Are there any particular aspects of the regulatory environment in the UK which would conflict with the IASB’s proposals on MPMs? Please provide the rationale for your answer.
To what extent would it be beneficial to adopt our recommendations on MPMs? Please provide the rationale for your answer.
Please provide comments no later than 4 September 2020 to Alison Stiles at GPD@frc.org.uk
We have prepared a series of short educational webinars on the General Presentation and Disclosures project.
Survey inviting stakeholder views
We have published a survey inviting stakeholders’ views on the IASB’s proposals in the Exposure Draft. The survey can be accessed here
and is open until 4 September 2020. The data collected through completing this form will be stored and processed by the FRC/EB. By completing this survey, you consent to the FRC/EB processing your data for the purposes of responding to the IASB’s General Presentation and Disclosures Exposure Draft. For further information, please see our privacy statements and notices
Field testing opportunities
As part of outreach activities on the General Presentation and Disclosures project, we invite preparers of financial statements to field test the proposals. To find out more, click here
Members of Insurance Technical Advisory Group (TAG)
The purpose of the Insurance TAG will be to support initially the Endorsement Board secretariat and, once it is established, the Endorsement Board in developing advice to the Secretary of State for Business, Energy and Industrial Strategy on the adoption of IFRS 17 Insurance Contracts for use in the UK. The members of TAG are:
||Legal & General Group Plc
||Direct Line Group Plc
||UK Shareholders’ Association
||Columbia Threadneedle Investments
||Willis Towers Watson
||Guy Carpenter & Company Limited