Technical issues trending now – October 2022

In this edition

Developments from the International Accounting Standards Board

• IFRS 16 amendment – IASB publishes amendment to clarify how to subsequently measure a sale and leaseback transaction, particularly the lease liability where there are variable lease payments
• IASB to explore narrow-scope standard setting – Cash received via electronic transfer as settlement for a financial asset
• Agenda decision confirmed – Assessing the principal versus agent relationship for a software reseller
• Other IC agenda decisions – Relating to: Negative low emission vehicle credits; Special purpose acquisition companies (SPAC); and Transfer of insurance coverage under a group of annuity contracts

Regulatory and Other Developments

• Corporation tax rate changes – When should they be included in the measurement of deferred tax assets and liabilities?

Developments from the Financial Reporting Council

• FRS 102 periodic review – Exposure draft due before the end of the year
• FRC publication – FRC publishes thematic review setting out useful reminders and reporting requirements surrounding climate change in financial statements
• FRC publication – FRC publishes thematic review discussing common compliance issues and best practice reporting surrounding business combinations and related areas, such as cash flows and merger relief
• FRC publication – FRC publishes thematic review discussing common compliance issues and best practice reporting for judgements and estimates
• FRC publication – FRC publishes thematic review discussing common compliance issues and best practice reporting surrounding deferred tax assets
• FRC publication – FRC publishes thematic review discussing common compliance issues and best practice reporting surrounding calculating and reporting earnings per share

Narrative and Front-end Reporting Developments

• Climate Reporting – FCA and FRC publish their reviews of TCFD-aligned disclosures by listed companies setting out their clear expectations for companies
• Diversity and Inclusion Reporting – FCA introduces new requirements for certain main market listed entities surrounding the reporting on board diversity and inclusion targets on a ‘comply or explain’ basis

Mind the GAAP Blog: Latest articles

• TCFD alignment studies from the FCA and FRC
• Amendments to IFRS 16 Leases – Lease Liability in a Sale and Leaseback
• IFRS IC - Agenda decision on negative low emission vehicle credits
• IFRS IC - Agenda decision on transfer of insurance coverage under a group of annuity contracts
• IFRS IC - Agenda decision on SPACs: classification of public shares as financial liabilities or equity