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29 November 2003: Preliminary revised version of IAS 16 is available
The IASB is making available on-line to subscribers the "preliminary final" texts of Standards being revised under the Improvements Project. The preliminary final version of IAS 16, Property, Plant and Equipment, is now available on IASB's Website. The IASB has previously made available the preliminary final texts of IASs 2, 10, 24, and 33.
28 November 2003: New Australian accounting alert posted
We have posted the latest Australian Accounting Alert, Accounting Requirements for Tax Consolidation to Be Revised.
27 November 2003: Deloitte comment letter on macro hedging
We have posted the Deloitte comment letter on the IASB Exposure Draft, Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk. Click to Download (PDF 141k).
26 November 2003: November EITF Roundup posted
We have posted the November 2003 Edition of EITF Roundup (PDF 137k). This issue covers the issues discussed, consensuses reached, and administrative matters discussed at the 12-13 November 2003 meeting of FASB's Emerging Issues Task force.
20 November 2003: United Kingdom IASPlus newsletter posted
We have posted the November 2003 United Kingdom Edition (PDF 138k) of the IASPlus newsletter.
20 November 2003: Notes from second day of IASB November 2003 meeting
We have combined the preliminary and unofficial notes taken by Deloitte observers at the IASB's 18-19 November 2003 Board meeting in London onto a Separate Page.
19 November 2003: Notes from first day of IASB November 2003 meeting
We have combined the preliminary and unofficial notes taken by Deloitte observers at the IASB's 18-19 November 2003 Board meeting in London onto a Separate Page.
16 November 2003: IFAC Council approves standard-setting reforms
The Council of the International Federation of Accountants (IFAC), meeting in Singapore, has approved a set of reforms designed to strengthen international audit standard-setting processes, achieve convergence to international standards, and ensure that the international accountancy profession is responsive to the public interest. The reforms provide for a more transparent standard-setting process with greater public input. A Public Interest Oversight Board (PIOB) will be established to oversee IFAC's standard-setting activities, particularly with respect to auditing, assurance, ethics, and independence. The PIOB will also oversee IFAC's compliance activities. The reforms also provide a means for ongoing dialogue between regulators and IFAC through the establishment of an IFAC Leadership Group and a Monitoring Group comprised of regulators. Click for:
15 November 2003: Two comment letters to IASB from EFRAG
We have posted the following comment letters of the European Financial Reporting Advisory Group (EFRAG) to the IASB:
14 November 2003: IFAC seeks comments on audit partner rotation
The International Federation of Accountants (IFAC) has issued an exposure draft proposing to revise the Code of Ethics for Professional Accountants to clarify that an individual who has completed a predefined period in the role of lead engagement partner for an audit of a listed entity should not participate in the assurance engagement until a further period, normally two years, has elapsed. Click to Download the IFAC Proposal (PDF 53k). Comments are due 15 February 2004.
13 November 2003: Comment deadline on macro hedging ED is tomorrow
Reminder: Comments are due at the IASB tomorrow (14 November 2003) on the IASB exposure draft Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk
13 November 2003: Details of IASCF constitution review are announced
The Trustees of the IASC Foundation (IASCF), under which the IASB operates, have released details of the review of the IASCF constitution that was discussed at their 4 November meeting (see our news story of 7 November below). The constitution sets out the operating procedures of the Foundation and the IASB and requires that the constitution be reviewed every five years.
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IASC Foundation Constitution Review
Scope and consultation. The review will cover "the full range of issues raised by the constitution" and that they will be consulting a wide range of organisations, including international and regional organisations, securities regulators, other international regulatory organisations, accounting standard-setters, organisations representing the accountancy profession, organisations representing business groups, analyst groups and other investment organisations, academic groups, and the Standards Advisory Council.
Review committee. The committee to oversee the review will be chaired by Paul Volcker, chairman of the IASC Foundation Trustees. Committee members are IASCF Trustees John Biggs, Roberto Teixeira a Costa, Toru Hashimoto, Cornelius Herkstroter, Philip Laskawy, and Sir Sydney Lipworth.
Invitation to comment. The Trustees have published an Invitation to Comment setting out the issues for the constitution review. Written comments are sought by 11 February 2004. You can download the Invitation to Comment from the IASB website.
IASCF press release. Click to Download (PDF 28k).
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13 November 2003: Reminder about upcoming IFRS Beyond 2005 conference
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IASB Chairman Sir David Tweedie will be among the speakers at the upcoming conference on Europe and IFRS Beyond 2005. The conference is sponsored by Deloitte and the IASB will take place in Paris on 3 and 4 December 2003. Other speakers include Rene Ricol, Chairman of the International Federation of Accountants (IFAC) and IASB members James Leisenring and Gilbert Gelard. For more information, please download the:
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12 November 2003: US Senate hearings today on stock option accounting
The Securities and Investment Subcommittee of the US Senate Banking Committee is today holding a Public Hearing titled "The Financial Accounting Standards Board and Small Business Growth". FASB Chairman Robert Herz is among those testifying. The hearing relates to a bill that would force a 3-year study period before the SEC could accept any changes to accounting for stock options. A similar bill has been introduced in the US House of Representatives. The IASB has proposed to require recognition of the fair value of Share-Based Compensation as an expense, and the FASB recently voted to issue an exposure draft with a similar proposal (see our news story of 30 October 2003).
12 November 2003: Comparison of Singapore GAAP and IFRS
Deloitte & Touche (Singapore) has published an update of the New Financial Reporting Framework in Singapore, which includes a comparison of Singapore GAAP and IFRS. In 2002, the Singapore government created the Council on Corporate Disclosure and Governance (CCDG) to replace the Institute of Certified Public Accountants of Singapore as the accounting standard setter in Singapore. The CCDG has now issued a set of accounting standards and interpretations that are almost identical to the current set of International Financial Reporting Standards, with the exception of effective dates, the inclusion of Singapore Financial Reporting Standard 25, Accounting for Investments, and the absence of an equivalent to IAS 40, Investment Property:
11 November 2003: Agenda for the upcoming Advisory Council meeting
The IASB will meet with the Standards Advisory Council on 20 and 21 November 2003 at the Renaissance Chancery Court Hotel, 252 High Holborn, London, United Kingdom. Agenda topics are:
AGENDA FOR STANDARDS ADVISORY COUNCIL MEETING
20-21 NOVEMBER 2003
- IASB Chairman's Report
- Update on IASB Priorities
- Reporting Comprehensive Income (Performance Reporting)
- Transition to IFRSs
- Share-based Payment
- Business Combinations Phase I
- Business Combinations Phase II - full goodwill measurement issues and the relevance of full goodwill
- Insurance Contracts Phases I and II
- Accounting and Financial Reporting by Small and Medium-Sized Entities
- Measurement
- Education Update
- IASCF Constitutional Update
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11 November 2003: Q3 2003 Accounting Roundup newsletter
During the third quarter of 2003, accounting standards-setters and accounting regulators issued a number of final and proposed SFASs, SOPs, IFRSs, EITF consensuses, SEC rules, and PCAOB rules and standards affecting accounting practice, financial reporting, and corporate governance. Accounting Roundup: Third Quarter 2003 presents
brief descriptions of those pronouncements, as well as certain other regulatory and professional developments in accounting and financial reporting that may affect the preparation of financial statements. The articles in this quarterly edition of the Deloitte Accounting Roundup newsletter were drawn primarily from the Accounting Roundup newsletters dated 5 and 25 August 2003, 15 September 2003, and 14 October 2003, and have been updated where appropriate.
10 November 2003: IASB will not meet on 17 November 2003
The November 2003 meeting of the IASB, originally announced for 17-19 November, will now be held only on 18-19 November at the Board's offices in London. The agenda for the meeting has expanded from that previously announced (news story 4 November 2003) and now will include the following topics:
- Business Combinations Phase I
- Business Combinations Phase II
- Employee Benefits - Pensions
- Improvements - IAS 17 and IAS 40
- Insurance Contracts Phase I
- Insurance Contracts Phase II
- Leases
- Reporting Comprehensive Income
- Share-Based Payment - Tax Issue
7 November 2003: IASB trustees will undertake a constitution review
At their meeting in Brussels on 4 November 2003, the trustees of the IASC Foundation (which oversees the IASB) announced the appointment of a committee to review the IASB's constitution. The committee held its first meeting on 3 November 2003. Presented below is our unofficial summary of the discussion of the constitutional review at the trustees' meeting. The trustees' agenda also included a comprehensive Report on IASB Activities (PDF 99k) from IASB Chairman Sir David Tweedie and discussion of the IASB's education programme with the new Director of Education Elizabeth Hickey.
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IASC Foundation Constitution Review
At its 3 November 2003 meeting, the constitution review committee felt it was important to announce the existence of the committee. The procedures and timetable were also decided. Meetings would generally be open, with proposals published prior to decisions being made. A list of topics to be examined will be issued quickly without comment on the relative importance of each, though the committee recognised that some additional questions might arise in the course of their work.
The committee felt that transparency is essential. The trustees discussed staffing for the review and concluded that at most one additional staff member could be funded. They discussed, without conclusion, whether there should be an advisory board. While such a board would provide a good sounding board, some trustees were concerned that an advisory board might assume some of the power of the review committee itself. The matter of duplication of effort of the review committee and the advisory board was also discussed.
Trustees noted that the Constitution is detailed and rule based. They discussed whether it provides for sufficient representation by analysts and preparers of accounts. They noted that it is sometimes difficult to get these parties involved in IASB activities and that this issue can not be resolved in the constitution.
Trustees noted that the constitution includes a list of organisations which the IASB should consult, but some important groups (such as the Basel Committee) are not included. However the IASB Chairman noted that while the wording needed to be altered slightly, the list was not meant to be exhaustive and did not preclude consultation with other groups.
We have created a new Page on IASPlus to track the progress of the constitution review.
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6 November 2003: Two EFRAG comment letters posted
We have posted to our EFRAG Page links to the two most recent comment letters to the IASB from the European Financial Reporting Advisory Group:
- ED 4, Disposal of Non-Current Assets and Presentation of Discontinued Operations (PDF 50k).
- ED 5, Insurance Contracts (PDF 145k).
6 November 2003: New NYSE and NASDAQ rules apply to foreign issuers
The US Securities and Exchange Commission has approved new rules adopted by the New York Stock Exchange and NASDAQ aimed at strengthening of corporate governance standards for listed companies. The standards relate to independence for directors and independent director oversight of processes relating to corporate governance, auditing, director nominations, and compensation. There are certain exemptions for foreign private issuers, but not with respect to audit committee requirements.
There is also a delayed implementation date for foreign private issuers. The NASDAQ rules require companies to make a public announcement of an audit opinions with a going concern qualification. Click for:
5 November 2003: Preliminary revised version of IAS 2 is available
The IASB is making available on-line to subscribers the preliminary final texts of Standards being revised under the Improvements Project. The Preliminary Final version of IAS 2, Inventories, is now available on IASB's Website. The IASB had previously posted Preliminary Final versions of IAS 33, Earnings Per Share, and IAS 10, Events after the Balance Sheet Date. You can purchase subscriptions on line.
4 November 2003: Agenda project pages updated
We have updated the following agenda project pages to reflect Board deliberations at its October 2003 meeting:
4 November 2003: Agenda for the November 2003 IASB meeting
The following projects will be on the agenda of the IASB meeting to be held at the Board's offices in London on 17-19 November 2003:
- Insurance Contracts Phase I
- Business Combinations Phase I
- Business Combinations Phase II
- Share-Based Payment - Tax Issue
- Pensions
- Leases
4 November 2003: Study of financial reporting in the mining industry
Deloitte Touche Tohmatsu has published Financial Reporting in the Global Mining Industry, a survey of the financial reporting practices in 21 of the world's leading mining companies based on a review of their published annual financial statements and supplementary data. The 21 companies are domiciled in 9 different countries and use 7 different accounting frameworks for preparing their financial statements. We looked at their reporting in many key areas: accounting for exploration costs and mine development, the amortisation of capitalised costs, impairment, provisions for costs to be incurred after mine closures, establishing fair values in a business combination, and reporting interests in joint ventures. We are pleased to make this report available without charge. Click to Download (PDF 1249k).
3 November 2003: We comment on ED 5 on insurance contracts
The Deloitte letter of comment on Exposure Draft ED 5, Insurance Contracts, questions the approach of adopting an 'interim standard' that exempts entities within the scope of the draft standard from complying with certain parts of the IASB Framework and defers addressing recognition and measurement principles until a later date. Instead, we prefer that the IASB address these issues in a comprehensive project to establish proper recognition and measurement principles for insurance contracts. We also disagree with the insertion of a 'sunset clause' in relation to this exemption. In addition, without adequate guidance on how to determine the fair value of insurance contracts, we suggest the Board reconsider the
usefulness of the fair value disclosures proposed. Click to Download the Deloitte letter of comment on ED 5, Insurance Contracts (PDF 163k).
3 November 2003: Concerns about IFRIC D2 on decommissioning liabilities
The Deloitte letter of comment on IFRIC Draft Interpretation D2, Changes in Decommissioning, Restoration and Similar Liabilities, agrees that guidance is needed but concludes that the proposal is not the most appropriate interpretation of IFRS. In our view, IFRS should be interpreted differently to achieve a conceptually better and more operable approach that at the same time converges with US GAAP. Click to Download the Deloitte letter of comment on IFRIC D2 (PDF 74k).
3 November 2003: Russian banks begin adopting IFRS in 2004
Speaking at a conference on IAS and Russian Integration into the World Economy, Tatyana Paramonova, First Deputy Chairman of the Russian Central Bank, said that the Central Bank has developed a programme for the Russian banking sector's transition to International Financial Reporting Standards. Russian banks are required to adopt IFRS starting 1 January 2004. However, Ms. Paramonova noted that "the transition is a very difficult process as for almost 70 years the whole system of accounting was geared towards a centralised planned economy." Banks will have a two-year transition period to convert to IFRS. Starting on 1 January 2006, the Central Bank will begin evaluating and enforcing compliance.
2 November 2003: IASC Foundation trustees will meet on 4 November
The trustees of the IASC Foundation will meet in Brussels on Tuesday, 4 November 2003. The agenda includes approval of the minutes, report of the chairman of the IASB, process for constitutional review, and the proficiency testing and education programme. Also, European Union Internal Market Commissioner Frits Bolkestein will meet with Paul Volcker, Chairman of the IASC Foundation Trustees, on Monday, 3 November 2003 to discuss the implementation of IFRS in Europe.
1 November 2003: ICAEW concern about IASB's approach to convergence
In their comment letter to the IASB on IASB ED 4, Disposal of Non-current Assets and Presentation of Discontinued Operations, the Institute of Chartered Accountants in England and Wales urged the IASB to focus its efforts on outstanding issues relating to the adoption of IFRS in 2005, rather than on convergence of IFRS and existing national GAAPs. The Institute also challenged the IASB's underlying approach to convergence, as "it is not apparent that in developing ED 4 the Board has considered the merits of relevant GAAP other than the US Standard SFAS 144." Click for:
1 November 2003: New IFAC guidance on audits of SMEs
The International Auditing and Assurance Standards Board of the International Federation of Accountants has released new guidance to assist auditors in applying International Standards on Auditing to small entities. The new guidance is included in an updated version of International Auditing Practice Statement 1005 (PDF 79k), The Special Considerations in the Audit of Small Entities.
1 November 2003: IOSCO statement on "convergence" of global GAAPs
Following is an excerpt from the Final Communique (PDF 268k) of the 28th Annual Conference of the International Organization of Securities Commissions (IOSCO) that was held on 14-17 October 2003 in Seoul:
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The Technical Committee also is continuing its close cooperation with the International Accounting Standards Board (IASB). The Technical Committee and the IASB have developed ongoing arrangements for the Technical Committee to provide input on IASB
projects as they are developed and initiated and to monitor IASB work on an ongoing basis. IOSCO welcomes the efforts of accounting standard setting bodies towards convergence of international accounting standards. Looking ahead, IOSCO encourages the IASB and national standard setters to continue to work cooperatively and expeditiously to achieve convergence in order to facilitate cross-border offerings and listings and encourages regulators to address the broader issues of consistent interpretation, application and enforcement of accounting standards. |
1 November 2003: Securities regulators announce MOU on information sharing
The International Organization of Securities Commissions (IOSCO) has announced agreement on a Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information. The MOU is the first global multilateral information-sharing arrangement among securities regulators and sets a new international benchmark for cooperation critical to combating violations of securities and derivatives laws. The MOU provides for the exchange of basic information in investigating cross-border violations, including bank, brokerage, and client identification records. Information provided through the MOU may be used to enforce compliance with securities and derivatives laws and regulations, including through civil and criminal prosecutions. Currently, regulators from 23 countries have signed the MOU. Others are expected. All signatories must first undergo an IOSCO screening process.
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