Agenda 2
Matters arising from Financial Reporting Standards Council Meeting held on 15 July 2016
1.
Matter arising
Person/s
responsible
(Task Group
chairman
and
Secretariat)
Minute 3.4- Exploratory paper on ethical taxes
and the impact in SA
Khaya
Dludla/
Suresh Kana
Refer to Agenda Item 8
Secretariat
Done
Nobuhle
Makuni/Kim
Bromfield
Refer to Agenda Item 9
It was agreed at the April 2016 meeting that a
short paper will be prepared by members of the
FRSC exploring the topic of ethical taxes in South
Africa and the current required disclosures, with
the aim of determining whether further guidance is
required in this regard.
Status
Work has not yet commenced on the exploratory
paper. The Chairman will reach out to Khaya
Dludla regarding expected time lines for the
paper.
2.
Minute 3.4-Circulation of FRSC newsletter
Whilst the FRSC newsletter is being circulated to
stakeholder bodies such as SAICA/SAIPA etc. the
newsletter was not circulated to members. The
secretariat must ensure that the newsletter is
circulated to all members of the FRSC.
3.
Minute 3.4-Financial Reporting
Pronouncements published for comment
The comment periods for the following Financial
Reporting Pronouncements (FRPs) published for
comment have closed:
‘Substantively Enacted Tax Rates and Tax Laws
Under IFRS and IFRS for SMEs’; ‘The Limit on a
Defined Benefit Asset, Minimum Funding
Requirements and their Interaction Under IFRS in
the South African Pension Fund Environment’;
and ‘Accounting for Black Economic
Empowerment (BEE) Transactions Under IFRS
and IFRS for SMEs’.
Nobuhle Makuni agreed to send through all
comment letters received by the DTI to Kim
Bromfield. The final FRPs will be brought to the
meeting of the FRSC in November 2016 for
approval and issue.
4.
Minute 3.1.4- Review of Companies Act
Amendments
Desmond
Ramabulana
Desmond Ramabulana agreed to forward to the
secretariat a draft of the Companies Act
Amendments (policy document) for circulation to
the Council.
5.
Minute 4- Update to FRSC Rules and
Procedures
Secretariat
Refer to Agenda Item 4
The secretariat will edit the FRSC Rules and
Procedures and circulate to members. The
Matters arising from FRSC Meeting 15 July 2016 as at 8 November 2016
Page 1 of 5
Matter arising
Person/s
responsible
(Task Group
chairman
and
Secretariat)
Status
proposed FRSC Rules and Procedures will be
brought back to the November meeting of the
FRSC for approval.
6.
Minute 5- Appointments to the FRSC
Suresh Kana
Will be considered for
inclusion in annual
communication.
Suresh
Kana/All
Will be considered for
inclusion in annual
communication.
Suresh Kana
Will be considered for
inclusion in annual
communication.
It has been noted that the roles of members of the
FRSC has in some cases changed since
appointment by the Minister. The Chairman
agreed to draft a paper to the Deputy Director
General on the change in the roles of members to
be considered when appointing FRSC members
at the end of the Council’s current term. The
Chairman also agreed to include the updated
roles of members in his annual communication to
the Minister.
7.
Minute 5- Appointments to the FRSC
It was noted that the Council has approximately
18 months remaining of their current term. It was
decided that reappointments to the FRSC should
be considered in upcoming meetings to ensure
continuity of the council.
8.
Minute 5- Appointments to the FRSC
From the review of the membership of the FRSC
carried out before the July 2016 meeting, it was
noted that there are currently a number of roles on
the FRSC which have not been filled and
consideration should be given to appointing these
additional members. The Chairman agreed to
draft a paper to the Deputy Director General
regarding these vacancies.
9.
Minute 6- IASB EEG Meeting to be held in
South Africa (3-4 November 2016)
The meeting will be hosted on 3-4 November
2016 in South Africa. Invitation letters to delegates
must be sent out early in August to ensure
delegates are able to obtain their visas and
finalise travel arrangements timeously.
Sibusiso Sasayi agreed to try to hasten the
approval process and provide feedback to the
Chairman by 31 July 2016.
Sibusiso
Sasayi/
Dumisani
Manana/
Bruce
Mackenzie/
Suresh Kana
Refer to Agenda Item 11.5
for feedback
The task group working on the EEG meeting also
agreed to on a plan B in the meantime in terms of
securing alternative ‘sponsors’. In terms of Plan B,
the Chairman will also reach out to professional
bodies such as SAICA/SAIPA etc. with regard to
potentially ‘sponsoring’ part of the event.
Matters arising from FRSC Meeting 15 July 2016 as at 8 November 2016
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Matter arising
Person/s
responsible
(Task Group
chairman
and
Secretariat)
Status
The task group also agreed to assist Dumisani
Manana with topics to be presented on at the
meeting.
10.
Minute 6- IASB EEG Meeting to be held in
South Africa (3-4 November 2016)
All
Refer to agenda item 11.5
for feedback.
Bruce
Mackenzie/
Dumisani
Manana
Refer Agenda Item 13
Members agreed to consider possible topics to be
presented at the EEG meeting to be hosted on 34 November 2016 and to share these ideas with
Dumisani Manana.
11.
Minute 7-FRSC Conference to be hosted in
South Africa
The conference is most likely to take place in
2017. Bruce Mackenzie and Dumisani Manana
agreed to prepare the motivation letter to be
submitted to the DTI in preparation for the
conference.
12.
Minute 8- Stakeholder engagement (SAIBA
Conference)
Suresh Kana
SAIBA will be hosting the 46th International
Association of Financial Executives conference in
South Africa. Nicolaas would like the FRSC to
participate and will send further details to the
Chairman regarding the conference and the
participation of the FRSC.
13.
Minute 8- Stakeholder engagement (PAFA
Technical Committee)
Garth Coppin brought to the attention of the FRSC
that the meeting of the PAFA Technical
Committee in April 2016 did not have any FRSC
representation due to a delay on the part of the
DTI in issuing a ticket for Garth Coppin to attend
the meeting. Dumisani Manana expressed similar
frustrations regarding his attendance at EEG
Meetings.
Garth
Coppin/
Dumisani
Manana/
Suresh Kana/
Desmond
Ramabulana
Garth Coppin and Dumisani Manana agreed to
prepare a note describing the issues encountered
and the Chairman will take this issue up with the
Deputy Director General.
Desmond Ramabulana has also agreed to look
into this matter further.
Matters arising from FRSC Meeting 15 July 2016 as at 8 November 2016
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Matter arising
14.
Minute 8- Stakeholder engagement (XBRL)
The CIPC hosted a workshop on XBRL. There
was no representative of the FRSC at the
workshop. Additionally an Exposure Draft on the
XBRL Taxonomy had been released by the CIPC
however this was not brought to the FRSC.
Person/s
responsible
(Task Group
chairman
and
Secretariat)
Status
Suresh
Kana/Rory
Voller
The Chairman agreed to reach out to Rory Voller
in this regard.
15.
Minute 9- Report back on the work of the IFRS
Foundation
It was agreed that the FRTC will prepare a
comment letter on the Exposure Draft issued for
public comment, ED 370: Trustees’ Review of
Structure and Effectiveness: Proposed
Amendments to the IFRS Foundation
Constitution. This will be circulated to members of
the FRSC for comment and approval. The
comment letter will also be shared with Professor
Wiseman Nkuhlu for comment.
16.
Minute 10- Technical activities of the FRTC
Reduced Disclosure Framework
It was agreed that, the FRTC should work on the
development of a Discussion Paper which
highlights the reduced disclosure frameworks of
other countries. The Reduced Reporting
Framework as issued by the UK will be used as a
starting point in developing an example of what
such a framework would look like. Respondents
will be requested to comment on:
Prof Danie
Coetsee/All/
Professor
Wiseman
Nkuhlu
Prof Danie
Coetsee/
FRTC
- Whether a similar framework should be
developed in South Africa?
-Entities to which the framework would be
applicable to?
The FRTC’s sub-committee will commence work
on the Discussion Paper so that the first draft can
be considered by the FRSC at its November 2016
meeting.
17.
Minute 10- Reduced Disclosure Framework
Johan Brink
Johan Brink agreed to further investigate the
Companies Act Implications of issuing a separate
framework in addition to IFRS and IFRS for
SMEs, specifically the requirements of the Act
with regard to companies with a defined PI score
preparing financial statements in accordance with
the IFRS or IFRS for SME framework.
Matters arising from FRSC Meeting 15 July 2016 as at 8 November 2016
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Matter arising
18.
Minute 10 - Technical activities of the FRTC ED
2016/1
The FRTC will prepare a comment letter on the
ED 2016/1- Definition of a business and
accounting for previously held interests-Proposed
amendments to IFRS 3 and IFRS 11 which has
been issued for public comment. The comment
letter will be circulated to the FRSC for comment
and approval before the comment deadline of 31
October 2016.
19.
Minute 11.1.1.- Financial Reporting framework
on Summarised Financial Statements
Person/s
responsible
(Task Group
chairman
and
Secretariat)
Status
Prof Danie
Coetsee/
FRTC
Kim
Bromfield
It was suggested that the amended copyright
(Refer Matter Arising 19 below) as included in the
‘Preface to Financial Reporting Pronouncements
and Guides issued by the FRSC’ be included in the
Preface
to
the
Financial
Reporting
Pronouncements on Summarised Financial
Statements. The FRP will then be issued as it had
been approved at the April 2016 meeting of the
FRSC.
20.
Minute 11.1.2.- Financial Reporting framework
on Summarised Financial Statements
Kim
Bromfield
It was agreed that the copyright included on the
Preface should be amended to remove the
following ‘apart from the extent reasonably
necessary for the purposes of research, private
study, personal or private use, criticism, review or
the reporting of current events, as permitted in
terms of the Copyright Act (No.98 of 1978), no
portion may be reproduced by any process without
written permission.’
Matters outstanding from April 2016 meeting
1.
Minute 9.1.6.- Draft Financial Reporting Guide
on Offsetting of Financial Assets and Financial
Liabilities: Amendments to IAS 32-Financial
Instruments Presentation
Kim
Bromfield/
Johan Brink
It was agreed that the draft guide will be brought
to the next meeting of the FRSC in November
2016.
Matters arising from FRSC Meeting 15 July 2016 as at 8 November 2016
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