[Global Financial Insights] IFRIC Update – November 2024 Summary and more

This week’s Global Financial Insights covers significant updates in financial reporting and auditing practices:

1. The IFRS Interpretations Committee met on 26 November 2024, discussing topics such as hyperinflationary economies (IAS 29), intangible assets related to climate expenditure (IAS 38), and cash flows for variation margin calls (IAS 7). The committee decided not to add standard-setting projects on these issues, citing no material diversity in practice.
2. The Financial Reporting Council (FRC) has updated its factsheets to help stakeholders implement the revised FRS 102 following the 2024 amendments. The updates include new guidance on lease accounting, revenue recognition, and business combinations, with three new factsheets introduced.
3. The FASB has proposed an Accounting Standards Update (ASU) to simplify credit loss measurement for private companies and certain non-profits, addressing challenges in applying the ECL model to short-term receivables. The proposal introduces a practical expedient and accounting policy election to reduce complexity.
4. The FRC’s 2024 Audit Market and Competition update reveals that challenger firms increased their share of FT350 audits to 13%, while audit fees in the PIE market reached £1.4 billion. The FRC is promoting competition and improving audit quality through initiatives like the Big Four’s operational separation and the Scalebox program for smaller firms.

Click Here To Read The Full Article