As the FRC promises to monitor the growing quality gap in reporting between FTSE 350 and other companies, ICAS presents the IFRS Developments course, bringing CAs up to speed on the latest regulatory changes

WORDS: Fraser Allen

With a flurry of regulatory activity already this autumn, ICAS’ two-hour online course, IFRS Developments: An Essential Guide (27 November), should keep finance professionals on top of the latest changes working their way through the pipeline. And following developments earlier this year designed to enhance reporting transparency, there is much to cover.

The pace of change across IFRS may have slowed overall in recent years, with few new major announcements, but updates continue to emerge. As most readers will be aware, the International Accounting Standards Board (IASB) issued two new standards earlier in 2024: the Presentation and Disclosure in Financial Statements (IFRS 18, issued in April) and Subsidiaries without Public Accountability: Disclosures (IFRS 19, in May).

Both will take effect from 2027, but there is much to be gained from getting on top of the new requirements now. Furthermore, narrow-scope amendments to IFRS 9 and IFRS 7 have also been issued, effective from 2026.

“There’s a drive to make financial statements more consistent so that investors can compare like-for-like more accurately”

John Moffat CA, BPP trainer

The IFRS Developments course is led by the experienced John Moffat CA, who will also cover “the latest thoughts of the FRC [Financial Reporting Council] on corporate reporting, the recently announced review of cashflow statements, and the exposure draft on equity accounting”.

The FRC’s annual review of corporate reporting (published on 24 September) said “the quality of reporting in the FTSE 350 has been maintained, and there have been improvements in several reporting areas”. However, it also pointed to “an increase in the number of restatements in relation to impairment of assets and cash flow statements, predominantly in companies outside the FTSE 350, where we are seeing some evidence of a widening gap in quality”.

The report added: “These will remain areas of close focus for the FRC. Companies and their auditors may reduce the risk of challenge by closely reviewing the FRC’s findings to avoid similar breaches of reporting requirements in future.”

The cashflow statements review (announced by the IASB on 16 September) comes in response to calls from stakeholders, particularly investors, for improvements to financial statements. And through the draft Equity Method of Accounting (published on 19 September), the IASB is seeking amendments to “reduce diversity in practice and provide users of financial statements with more comparable and useful information”.

Investor perspective

Moffat explains: “The course overall will explore the increased focus on the enhanced presentation and disclosure of the income statement in response to investor concerns about comparability and transparency. There’s a drive to make statements more consistent so that investors can compare like-for-like more accurately. For instance, there will be an IFRS 18 requirement to provide subtotals for operating profit and for profit before financing and income taxes ­– although this won’t affect how companies measure their financial performance and overall profit figure.

“The papers also set out how disclosures in relation to management performance should be presented in financial statements and commentaries,” adds Moffat. “It’s really an ongoing process to make everything more user-friendly from an investor’s perspective. We will also include timely reminders on issues such as income tax, debt with covenants, sale-and-leaseback transactions, and supplier finance arrangements, picking up on anything new emerging from the regulators.”

The course is designed primarily for CAs, but is also relevant to many non-members and professionals from the wider accountancy and finance sector.

IFRS Developments: An Essential Guide

27 November 2024, 10am–12pm
Online live
Presenter: John Moffat CA

What we will cover
• IFRS 18 – Presentation and Disclosure in Financial Statements
• IFRS 19 – Subsidiaries without Public Accountability: Disclosures
• Narrow-scope amendments to IFRS 9 and IFRS 7
• IFRS related to income taxes, debt with covenants, sale-and-leaseback transactions, and supplier finance arrangements, all of which are effective in 2024, as well as the amendment to IAS 21, effective in 2025
• The FRC’s annual review of corporate reporting
• The IASB cashflow statements review
• The draft IASB Equity Method of Accounting

Find more information and book here