AC Insights provides audit committee members with a summary of financial reporting developments for public companies using IFRS, how those developments might affect their company and things they may want to think about when reviewing financial reports. The insights are provided for developments to the end of the current quarter-end. Developments may occur subsequent to the quarter-end which change the guidance issued or perspectives on the guidance. Such changes will be reflected in subsequent editions of AC Insights.

IFRS 16, Leases, is effective for annual periods beginning on or after January 1, 2019. The objective of IFRS 16 is to increase the visibility of a company’s lease commitments and better reflect the economic reality of these transactions.

During the first quarter of 2019, the IASB met monthly to discuss various projects. Significant efforts were focused on addressing issues arising from the implementation of IFRS 17, Insurance contracts for the new standard. The Board also continued work on its projects on primary financial statements, classification of liabilities as current or non-current, and business combinations under common control.

Accounting Standards Codification Topic 842, Leases, is effective for annual periods beginning after December 15, 2018. The objective of the new leases standard is to improve users’ understanding about an entity’s leasing activities and to enhance transparency about and comparability of financial effects of those activities.

During the first quarter of 2019, the FASB met six times to discuss various projects. Work continues in three major areas dealing with distinguishing between debt and equity, accounting for identifiable intangible assets and goodwill, and disclosure reviews of selected standards.

The US edition also includes the CSA, SEC and Auditing developments discussed in the Canadian edition.