Comments sought on exposure drafts

At BDO, we provide comments locally to the Australian Accounting Standards Board (AASB) and internationally to the International Accounting Standards Board (IASB). We welcome any client comments on exposure drafts that are currently available for comment. If you would like to provide any comments please contact Wayne Basford at wayne.basford@bdo.com.au.

Document Proposals Comments due to AASB by Comments due to IASB by
ED 278 Improvements to IFRS 8 Operating Segments Proposes various amendments to AASB 8 Operating Segments as part of the IASB’s post-implementation review of IFRS 8, including:
  • Clarifying the function of the chief operating decision maker (CODM)
  • Requiring disclosure of the title and role of the CODM
  • Requiring an explanation if segments differ between the financial statements and other parts of the annual reporting package
  • Adding examples of similar economic characteristics when assessing whether the aggregation criteria have been met
  • Clarifying that segment information in addition to that reviewed by, or regularly provided to the CODM can be disclosed if it meets the core principles
  • Clarifying that information on reconciling items must be given with sufficient detail to enable users to understand the nature of the reconciling items, and
  • Amending AASB 134 Interim Financial Reporting to require companies changing segments to provide restated segment information for all prior interim periods earlier than they currently do.
23 June 2017 31 July 2017
ED 280 Property, Plant and Equipment – Proceeds before Intended Use Proposes prohibiting deducting any proceeds from selling ‘test items’ against the cost of an item of PPE, as well as clarifying:
  • The meaning of ‘testing whether the asset is functioning properly’, and
  • That the proceeds from sale of items produced while bringing an asset into the location and condition necessary for it to be capable of operating in the manner intended by management would be recognised in accordance with applicable accounting standards, for example, inventories produced would be recognised as revenue.
18 September 2017 19 October 2017
ITC 35 Disclosure Initiative – Principles of Disclosure In this next step in the IASB’s Disclosure Initiative project, this Discussion Paper seeks to establish clear principles governing what, how and where information should be disclosed in the financial statements. The proposals include:
  • Seven principles of effective communication for entities preparing financial statements
  • Possible approaches to improve the disclosure objectives and requirements in IFRS Standards, and
  • Principles of fair presentation and disclosure of performance measures and non-IFRS information in financial statements, to ensure that such information is not misleading.
4 September 2017 2 October 2017