Financial Reporting Dossier

This article provides: (a) key recent updates in the financial reporting space globally; (b) Global Regulators’ Actions – FRC and PCAOB; (c) SEC reports on audit, accounting and fraud matters.

A. KEY GLOBAL UPDATES:

1. IASB — ACCOUNTING FOR COMPOUND FINANCIAL INSTRUMENTS

On 29th November, 2023, the International Accounting Standards Board (IASB), based on feedback received from the Investors, proposed amendments to address the challenges in companies’ financial reporting on instruments that have both debt and equity features. The proposed amendment would amend the IAS 32, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.

IAS 32 Financial Instruments: Presentation sets out how a company that issues financial instruments should distinguish debt instruments from equity instruments. The distinction is important because the classification of the instruments affects the description of a company’s financial position and performance. The proposed amendment mainly to (i) clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity; (ii) to require companies to disclose information to further explain the complexities of instruments that have both