Since joining the IASB programme, Insight has benefitted from investor education sessions on changes to the IFRS accounting standards, such as IFRS 16 (valuation of leases) and IFRS 15 (revenue recognition).
We have contributed to projects on the following:
- Examining the purpose, structure and content of primary financial statements. We assisted the IASB in determining the direction of the project, and particularly how to enhance the Statement of Profit or Loss, Statement of Cash Flows, and Statement of Financial Position. In particular we pushed for a new subtotal for EBITDA and standardisation of cash flow presentation. Both these would help protect investors from management adjustments to reported figures.
- Cash disclosures. Specifically, we pushed for proper disclosure of where cash is held; restrictions on moving cash; and full details of revolving credit facilities, both drawn and undrawn. Understading liquidity is critical to credit analysis, therefore we have been very vocal on this. The project recently concluded with no proposed changes to the existing standard, and we are therefore seeking to lobby again on the issue, and understand why the IASB decided not to proceed with any changes.