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31 January 2004: Recommendations for valuing real estate under IFRS
The European Public Real Estate Association (EPRA) has published its Best Practices Recommendations 2004 (PDF 565k) regarding the valuation of real estate under International Financial Reporting Standards. The EPRA recommendations are supported by the International Valuation Standards Committee (PDF 138k). EPRA's recommendations state:
1. General items: EPRA is neither an accounting body nor a valuation body. As from 2005, EPRA members
will have to report in accordance with International Financial Reporting Standards (IFRS). The Best Practices Recommendations provide a framework for:
- Specific additional guidance for real estate companies within the IFRS framework;
- Uniform performance reporting and presentation between real estate companies;
- Additional disclosure guidance.
2. Accounting and valuation principles: for all areas where IFRS is not specific enough for real estate companies, the Best Practices Recommendations provide tailored guidance, aiming for uniform accounting and valuation principles amongst our members.
3. Presentation of accounts: as IFRS, to some extent, is "format free" regarding the presentation of the balance sheet, profit & loss accounts and cash flow statements, the Best Practices Recommendations propose standard formats for the presentation of these accounts.
4. Notes and additional disclosure: making the performance of real estate companies insightful requires additional notes and disclosure items, based upon uniform recommended standards.
5. Draft recommendations: at current, several areas for which EPRA wishes to issue recommendations, need further research and consulting of EPRA members as well as of the IASB before final recommendations can be issued.
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29 January 2004: Investment group urges European support for IFRS and IASB
In a letter published in the Financial Times on 23 January 2004, the United Kingdom Society of Investment Professionals has decried the political controversy that has arisen regarding adoption in Europe of IAS 32 and IAS 39 (financial instruments). The group also condemned what it sees as attacks on the IASB's standard setting process. We have posted the Text of the Letter (PDF 6k) with the kind permission of its authors.
28 January 2004: EFRAG proposes to endorse improved IASs
The European Financial Reporting Advisory Group is seeking comments on its Proposed Letter to the European Commission supporting adoption in Europe of the 13 "improved" IASs that were issued by the IASB in December. Comments are due by 24 February 2004.
27 January 2004: Japanese government agency comments to British FSA
Following up on our news story of yesterday: Today the Financial Services Agency of the Government of Japan (the Japanese securities regulator) has written to the UK Financial Services Authority requesting the UK government "to continue to allow Japanese issuers with a primary listing or a secondary listing on the LSE to use Japan GAAP as equivalent to IAS (or US GAAP)". The Japan FSA went on to say: "If Japanese issuers were required to prepare their financial statements in accordance with IAS, and not allowed to use Japan GAAP, this could discourage their financial activities within the City and other EU markets, encourage their delisting from the LSE and other EU securities exchanges, and shift the focus of Japanese financing efforts outside Japan to non-EU markets." Click for Full Text of Japanese Government Letter to UK (PDF 25k).
27 January 2004: New IAASB framework for assurance engagements
IFAC's International Auditing and Assurance Standards Board has issued a revised Assurance Framework and International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. The Framework defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which International Standards on Auditing (ISAs) and ISAEs apply. It provides a frame of reference for practitioners and others involved with assurance engagements, such as those engaging a practitioner and the intended users of an assurance report. Click for Press Release (PDF 41k).
26 January 2004: Japan will urge London to continue to allow Japanese GAAP
Today's issue of the Yomiuri Shimbun, Japan's main business newspaper, has Reported that representatives of Japanese business organisations will go to London to try to convince the UK Financial Services Authority (FSA) not to go ahead with its proposal to require foreign companies listed on the London Stock Exchange to prepare financial statements using only US GAAP or IFRS. Currently, non-UK listed companies may report using their national GAAP. The EU accounting regulation requiring EU listed companies to adopt IFRS in 2005 does not apply to non-EU companies listed on EU exchanges, but individual EU countries can extend the requirement to such companies. The FSA has issued a Consultation Paper (PDF 318k) in which FSA said:
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"With the introduction of IAS..., there will be consistency amongst all EU listed issuers that produce consolidated accounts. We believe that it is in the interests of investors for there to be consistency between all equity issuers with primary listings. So, we propose that overseas non-EU issuers should be required to report in either IAS or US GAAP."
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26 January 2004: Survey finds that IFRS will improve understanding
A survey of 425 companies (249 listed and 176 non-listed) in 6 European countries by the French-based international auditing and advisory firm Mazars has found that:
- The great majority of listed companies are confident that adopting IFRS will bring about "beneficial impacts" on the transparency (73% of listed companies) and reliability (79% of listed companies) of their financial statements.
- Listed companies believe that the largest impact of the change to IFRS will be on their internal organisation, with 57% of listed companies foreseeing "a real opportunity to improve their internal organisation".
- The majority (55%) of non-listed companies wish to apply IFRS, and 64% of those think that improved comparability and transparency will result from the change.
- Many companies are late in setting up IFRS implementation programmes, measuring the impact of IFRS, training of employees, and developing external communications strategies for financial analysts, shareholders, and investors.
Click for link to Download the Study.
24 January 2004: Notes from the final day of the IASB's January meeting
To allow our home page to load more quickly, we have moved our unofficial notes from the January 2004 IASB meeting to a Separate Page.
23 January 2004: Deloitte partner is the new chair of EFRAG
Deloitte & Touche partner Stig Enevoldsen has been selected as the new full-time Chairman of the Technical Expert Group (TEG) of the European Financial Reporting Advisory Group (EFRAG) effective 1 April 2004 for a three-year term. Stig currently heads Deloitte's Copenhagen, Denmark, IFRS Centre of Excellence and is a member of the firm's Global IFRS Leadership Team. Previously, he chaired the firm's IAS Policy Committee. From 1987 to 1996 Stig Enevoldsen was a member of the Danish Accounting Standards Committee, serving as its chairman from 1991-1996. Stig was a member of the Board of the International Accounting Standards Committee from 1991 to 2000, and was the IASC chairman from 1998 to 2000. Currently he is a member of both the TEG and the IASB's Standards Advisory Council. Also, Deloitte partner Catherine Guttman, from France, a specialist in insurance and financial instruments issues, was appointed a new part-time member of the TEG. In addition, The chairs of the UK, French, and German standard setters will be permanent observers at the TEG. EFRAG was established in June 2001 by a broad group of organisations representing the European accounting profession, preparers, users, and national standard-setters to provide technical expertise to the European Commission concerning the use of IFRS within the Europe and to participate in IASB's standard setting process. EFRAG is currently in the middle of a process to Enhance its Role and streamline its operating processes with the goal of strengthening European input to the IASB. Click for EFRAG Press Release (PDF 31k).
23 January 2004: Report on IFRS at European Council of Ministers Meeting
The official Notes of the Meeting of EU Council of Economics and Finance Ministers in Brussels on 20 January 2004 state: "Commissioner Bolkestein briefed the Council on the difficult discussions underway with the International Accounting Standards Board on International Accounting Standards IAS 32 and 39 (the financial instruments standards). The Council welcomed the efforts made by Commissioner Bolkestein on this important issue and invited him to pursue his work."
23 January 2004: Agenda for 3-4 February 2004 IFRIC meeting
The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB offices in London on 3 and 4 February 2004 (Tuesday and Wednesday). The announced agenda for the meeting is as follows:
AGENDA FOR IFRIC MEETING 3-4 FEBRUARY 2004
- IAS 11 Construction Contracts: Combining and Segmenting Contracts
- Commencing to Apply IAS 29 Financial Reporting in Hyperinflationary Economies
- Emission Rights
- Defined Contribution Plans with a Minimum Guarantee
- IAS 27 and Investments of Venture Capital Providers
- Draft Interpretation D2 - Changes in Decommissioning, Restoration and Similar Liabilities
- Accounting for Service Concession Arrangements
- Member Shares in Cooperative Banks
- Fair Values in IAS 41 Agriculture
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23 January 2004: IFAC issues a number of publications
In the past few days, the International Federation of Accountants (IFAC) has issued the following publications, including exposure drafts of revised International Standards on Auditing (comments due 31 March 2004):
- January 2004 Edition of IFAC Quarterly Newsletter (PDF 90k)
- Exposure Draft of ISA 600 (Revised), The Work of Related Auditors and Other Auditors in the Audit of Group Financial Statements, and an ED of an IAPS on The Audit of Group Financial Statements (PDF 336k). Issued by the IAASB. Comments are due 31 March 2004.
- Exposure Draft of ISA 700 (Revised) ISA 600 (Revised), The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements, and EDs of ISA 200, Objective and General Principles Governing an Audit of Financial Statements, Amendment to ISA 210, Terms of Audit Engagements, and Conforming Amendments (PDF 371k). Also issued by the IAASB. Comments are due 31 March 2004.
- Study 14, Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities (Second Edition). This Study is intended to assist governments and government entities wishing to migrate to the accrual basis of accounting in accordance with International Public Sector Accounting Standards (IPSASs). It may also assist governments and government entities complying with the financial reporting requirements of the Cash Basis IPSAS Financial Reporting Under The Cash Basis of Accounting in making the additional encouraged disclosures. Also issued by the PSC.
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23 January 2004: Notes from the third day of the IASB's January meeting
To allow our home page to load more quickly, we have moved our unofficial notes from the January 2004 IASB meeting to a Separate Page.
22 January 2004: Deloitte IFRS e-learning available without charge
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Deloitte is pleased to make available, in the public interest and without charge, our e-learning training materials for IFRS. Click here to Access Deloitte's IFRS e-Learning Material. Content on the following standards is now available: IAS 1, IAS 2, IAS 8, IAS 11, IAS 14, IAS 17, IAS 18, IAS 21, IAS 27, IAS 28, IAS 31, IAS 34, IAS 37, IAS 40, IAS 41, and the Framework for the Preparation and Presentation of Financial Statements. Modules on the remaining standards are currently being developed and will be released in phases throughout 2004.
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22 January 2004: Notes from the second day of the IASB's January meeting
To allow our home page to load more quickly, we have moved our unofficial notes from the January 2004 IASB meeting to a Separate Page.
22 January 2004: Detailed summary of recent improvements to IASs
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Deloitte & Touche (United Kingdom) has published a Special Edition of the IASPlus Newsletter (PDF 117k) dealing with the 13 International Accounting Standards that were recently revised as a result of the IASB's Improvements Project. This 16-page newsletter presents the key features of each of the 13 revised standards, along with their impact on UK companies. The revised standards all apply to periods beginning on or after 1 January 2005, with earlier adoption encouraged. For most companies in Europe with December year ends, 1 January 2004 is the date of transition to IFRS. |
22 January 2004: Euronext eases quarterly reporting requirements
A Euronext rule, adopted in April 2003, would have required that companies in the NextEconomy and NextPrime segments publish quarterly reports starting in 2004. Euronext has changed that requirement to a non-mandatory "best practice". Half-yearly reporting remains mandatory. Another rule adopted in April 2003 requires NextEconomy (technology) and NextPrime (more traditional) companies that are not already using IFRS to disclose, in half-yearly reports for financial years beginning on or after 1 January 2004, the effects of converting to IFRS in 2005. That rule has not been changed. Euronext is an amalgamation of the stock exchanges in Amsterdam, Brussels, Lisbon, and Paris.
21 January 2004: Bertrand Collomb joins the IASC Foundation trustees
The IASC Foundation has appointed Bertrand Collomb, Chairman of Lafarge of France, as a trustee from Europe. Mr Collomb replaces Didier Pineau-Valencienne, whose term ended on 31 December 2003. Mr Collomb is currently chairman of Association Francaise des Entreprises Privees. He also serves as a director of Total, ATCO, and Vivendi Universal, and is a member of the Supervisory Board of Allianz and the Advisory Board of Unilever. Click for Press Release (PDF 18k).
21 January 2004: IASB posts editorial corrections to recently revised standards
The IASB has posted (for subscribers) on its Website editorial changes to the Improvements Project IASs and to the revised IAS 32 and IAS 39 that were released in December 2003. Editorial changes are textual corrections that do not change the intended meaning of the document. No Board or IFRIC approval is needed for such corrections. The IASB will post editorial corrections as and when needed, but normally not more frequently than monthly. The Board has also posted tables listing all of the consequential amendments made by each of the fifteen standards revised in the Improvements project. Consequential amendments are changes to a standard that are caused by the issue, revision, or amendment of another standard.
21 January 2004: Notes from the first day of the IASB's January meeting
To allow our home page to load more quickly, we have moved our unofficial notes from the January 2004 IASB meeting to a Separate Page.
20 January 2004: Progress on accounting standards in Indonesia
We have updated the our page for Indonesia to report recent accounting standards developments. At 31 December 2003, 57 accounting standards and 4 interpretations were in force. Also, exposure drafts of three standards and exposure drafts of four governmental accounting standards were outstanding at that date.
20 January 2004: IFRS on the agenda for today's meeting of EU Finance Ministers
The European Union's Council of Economics and Finance Ministers will meet today in Brussels. The Preparatory Paper for the meeting, setting out the discussion agenda, states: "The Commission will continue to promote the emergence of an agreement between all stakeholders on International Accounting Standards."
19 January 2004: Revised SEC revenue recognition guidance
The SEC staff has recently issued Staff Accounting Bulletin 104, Revenue Recognition (PDF 348k). SAB 104 updates the revenue recognition guidance in the Codification of Staff Accounting Bulletins that was released in May 2003. The revised guidance applies to calendar 2003 financial reports of all SEC registrants, domestic and foreign.
18 January 2004: Webcast of IASB January meeting
The IASB has announced that it will be testing a video Webcast system at its January Board meeting. The meeting will be broadcast live and will also be archived. You can watch the January meeting without charge. If the tests are successful, the IASB plans to provide the Webcast service for all future London meetings, but a charge will be imposed to cover the IASB's costs.
17 January 2004: ACCA opposes using IFRS to measure taxable income
A study commissioned by the Association of Chartered Certified Accountants (ACCA) has concluded that aligning tax and accounting rules during the changeover period to International Financial Reporting Standards (IFRS) will bring unnecessary complications for businesses and government. ACCA has recommended that the British government not pursue that approach. The ACCA research report, A Conceptual Framework for the Taxable Income of Businesses, and How to Apply it under IFRS, by Professor Christopher Nobes of Reading University, examines the advantages and disadvantages of conforming tax practice with financial reporting practice and concludes that tax and financial reporting should have separate rules and, therefore, be disconnected. The full report may be downloaded from ACCA's Website (PDF 248k). Click for Press Release (PDF 22k).
16 January 2004: We support strengthening of EFRAG
In our Letter of Comment (PDF 83k) on the Proposals for the Enhancement of the Role and Working Process of EFRAG, we strongly supported strengthening the role of EFRAG as compared to that which it has had in the recent years. We wrote:
In order to strengthen EFRAG, and achieve further recognition of EFRAG by all relevant
constituencies, EFRAG should become the European experts group which:
participates actively and effectively in the selection of an appropriate agenda for the
IASB and IFRIC, working in partnership with those bodies;
works closely in partnership with CESR and European enforcement agencies (e.g. review panels), for European expertise and experience relating to the accounting standards.
In addition, the Supervisory Board should consider how to address the extensive need for implementation guidance arising as a result of more than 7,000 European companies moving to IAS in 2005. The harmonisation of accounting in Europe will not be achieved if various local standard-setters and regulators were to start issuing their own guidance and interpretations of IAS.
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EFRAG (The European Financial Reporting Advisory Group) was formed in 2001 by a broad group of organisations representing the European accounting profession, preparers, users, and national standard-setters with the following goals:
— to provide technical expertise to the European Commission concerning the use of IAS within the Europe,
— to participate in IASB's standard setting process, and
— to coordinate within the EU the development of views concerning international accounting standards.
16 January 2004: Asia-Pacific jurisdiction pages updated
We have updated the following Country Pages to report recent accounting standards developments:
15 January 2004: IASB issues ED 6 on exploration for mineral resources
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The IASB has invited comment on its Exposure Draft ED 6, Exploration for and Evaluation of Mineral Resources. ED 6 proposes to exempt companies engaged in exploring for and evaluating mineral resources from certain requirements of IFRSs and the IASB Framework. Those companies would be permitted to continue using, under IFRS, the accounting policies for recognising and measuring assets arising from mineral exploration and evaluation activities that were used in their most recent annual financial statements. A company that elects to use its previous accounting policies should then change those policies if, and only if, the change makes the financial statements more relevant and reliable. In addition, ED 6 proposes indicators to be considered when identifying whether exploration and evaluation assets might be impaired. It also proposes a "cash generating unit for exploration and evaluation assets" under IAS 36, Impairment of Assets. The proposals would be effective for annual periods beginning on or after 1 January 2005. That is, the final IFRS would be followed by European and other companies that adopt IFRS in 2005. ED 6 may be downloaded from the IASB's Website. Comment deadline is 16 April 2004. Click: Press Release (PDF 32k). Summary of ED 6. |
15 January 2004: IFRIC issues two draft interpretations for comment
The International Financial Reporting Interpretations Committee has issued two draft interpretations –
IFRIC D3, Determining Whether an Arrangement Contains a Lease, and IFRIC D4, Decommissioning, Restoration and Environmental Rehabilitation Funds. Copies may be downloaded from the IASB's Website. Comments are due by 19 March 2004.
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IFRIC D3 would require arrangements that do not take the legal form of leases, but that have the substance of leases, to be accounted for in accordance with IAS 17, Leases. The types of arrangements addressed include outsourcing arrangements; contracts to supply network capacity in the telecommunications industry; take-or-pay contracts (in which purchasers must make specified payments regardless of whether they take delivery of the contracted products or services; and service concession arrangements in which a supplier (usually a private entity) provides the use of an item of infrastructure to a purchaser (usually a government). The draft provides guidance on determining whether an arrangement is, or contains, a lease for the purpose of applying IAS 17, but it does not provide guidance on whether such leases should be classified as finance or operating leases.
IFRIC D4 would provide guidance where entities contribute to funds established to reimburse their decommissioning, restoration, or rehabilitation obligations when the costs are incurred. Such funds may be established by a single contributor to fund its own decommissioning obligations, or by multiple contributors to fund their joint decommissioning obligations.
IFRIC proposes that the contributor determine whether it has control, joint control, or significant influence over the fund by reference to the standards dealing with subsidiaries, joint ventures, associates and special purpose entities. If it does, the contributor should account for its interest in the fund in accordance with those standards. If this does not apply, and the fund does not relieve the contributor of its obligation to pay decommissioning costs, the contributor should recognise a separate asset (for rights to reimbursement from the fund) and liability (to pay decommissioning costs).
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15 January 2004: IASB announces agenda for January meeting; day added
The IASB will meet on Tuesday afternoon, 20 January 2004, as well as on the previously announced dates of 21-23 January. The agenda:
AGENDA OF THE IASB MEETING 20-23 JANUARY 2004
- Business Combinations Phase I
- Financial Instruments – discussion of comments on the exposure draft on macro hedging
- IFRIC Matters
- Insurance Contracts Phase I – discussion of comments on ED 5
- Leasing
- Post-Employment Benefits
- Revenue Recognition
- Short-term Convergence – discussion of comments on ED 4 on asset disposals and discontinued operations
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15 January 2004: January 2004 editions of IASPlus newsletters posted
We have posted the January 2004 editions of our quarterly newsletter IAS Plus:
The United Kingdom edition will be published soon.
14 January 2004: Summaries of some IASs are updated
We have begun updating our Summaries of IASs to reflect recent revisions. So far we have updated the summaries of
13 January 2004: Study of trends and causes of financial statement errors in US
A new study by Huron Consulting Group has found that the number of restatements due to errors in the annual financial statements of public companies in the United States rose to a record 206 in 2003, up from 183 in 2002. Including revisions to quarterly reports, the total number of restatements fell slightly to 323 from 330 in 2002. The most common errors in 2003 related to provisions (accruals for liabilities of uncertain amount or timing) and contingencies. That differs from 2002, when revenue recognition matters were the most common cause of restatements. Click for:
Summary of the Report (PDF 24k, posted with the kind permission of Huron Consulting Group). The full report will be available in early February.
Press Release (PDF 17k).
13 January 2004: Disparities in implementing Internal Market directives in Europe
A Study by the European Commission has found "big disparities between Member States in implementing and applying rules" for the European Internal Market. The Commission reported that 131 Directives (around 8.5% of Internal Market Directives) have still not been implemented into national law in every Member State, though the deadlines agreed by the Member States themselves when they adopted the Directives have passed (often by more than two years). The Regulation requiring all EU-listed companies to prepare their consolidated financial statements in accordance with International Financial Reporting Standards from 2005 is part of the Commission's Internal Market Strategy.
9 January 2004: You can listen to FASB meetings by webcast without charge
The US Financial Accounting Standards Board has started to broadcast its meetings live via audio webcast. There's no charge. To listen to the webcast, visit the FASB's homepage www.fasb.org to access the link. You must have Windows Media Player® Version 9 installed on your computer. If you are on a network, the network must allow MMS (multimedia service) access. You can also listen to a recording of the most recent Board meeting via webcast free of charge. Go to the FASB's homepage and click the "Archive Meeting" playback link. The archive playback will be available until the next Board meeting.
9 January 2004: CESR recommendations on use of IFRS in prospectuses
The Committee of European Securities Regulators (CESR) has submitted to the European Commission its Recommendations (PDF 294k) on the content of prospectuses. Noting that some EU member States require 3 years of historical financial information in prospectuses, CESR recommended, for companies that must switch to IFRS because they are selling securities in a public market for the first time, that:
- Debt issuers should restate only one year of accounts on an IFRS basis even if two years is required for equity issuers.
- No issuer should be required to produce IFRS figures in a prospectus for any period earlier than 1 January 2004 (1 January 2006 if the member State allows delayed transition to IFRS for debt issuers and/or companies that currently prepare their primary financial statements with US GAAP).
- Non-EU companies that list in Europe for the first time and that use "internationally accepted standards" should be allowed to continue to do so until 2007.
- Non-EU issuers that currently have securities listed on a European exchange be required to switch to IFRS only if the future transparency directive requires them to do so.
- The Commission should establish a procedure to evaluate equivalence of non-EU-GAAPs to IFRS.
Click for CESR Press Release (PDF 114k) and Link to CESR Website.
8 January 2004: International convergence is one of FEI's top issues for 2004
The CEO of Financial Executives International (FEI) includes international convergence in her List of the top financial reporting issues for 2004. FEI comprises 15,000 senior-level corporate financial executives, primarily in the United States (75 chapters) and Canada (11 chapters). Her advice to FEI members:
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International Convergence. Monitor what's going on at the International Accounting Standards Board (IASB). Whatever projects are on the IASB agenda are likely to be on FASB's agenda in the near term (including pension accounting, insurance accounting, lease accounting). In mid-December, FASB issued several Exposure Drafts identifying short-term convergence issues. |
8 January 2004: FEE calls for coordinated enforcement of IFRS in Europe
The European Federation of Accountants (FEE) has called for a pan-European body to enforce International Financial Reporting Standards consistently throughout Europe. "The impending adoption of IFRS in Europe should be a key driver towards a fully integrated European capital market by facilitating comparability of financial information across the EU. However, FEE... is concerned that the benefits of increased market efficiency will be undermined unless there is consistent enforcement of IFRS throughout Europe, a role that the proposed enforcement body would undertake.... The European coordination body's role is to ensure consistency in the processes used and decisions reached by national enforcement bodies in order to create a level playing field for enforcement of International Financial Reporting Standards." Click for:
7 January 2004: Deloitte Hong Kong GAAP guide includes comparison with IFRS
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The Third Edition of Deloitte's Hong Kong GAAP: A Practical Guide to Generally Accepted Accounting Practice has been published by Sweet & Maxwell Asia. Written by Deloitte partners Stephen Taylor and Norma Hall, this 1,514-page book includes 48 chapters and five appendices. Each chapter has a comparison with International Financial Reporting Standards and with the standards in the United States, United Kingdom, and People's Republic of China. One appendix is a comprehensive comparison of Hong Kong Financial Reporting Standards and IFRS. This edition includes significant revisions to the chapters on income tax, interim financial reporting, and financial instruments as well as entirely new chapters on government grants, agriculture, hyper-inflationary economies and summary financial reports. Copies may be ordered from Sweet & Maxwell by phone (+852 2863 2668), fax (+852 2520 6954), or website www.sweetandmaxwellasia.com. The price is US$93 + 10% for postage and packing. |
6 January 2004: IFAC begins a review of Public Sector Committee
The International Federation of Accountants (IFAC) has begun a review of the operation of its Public Sector Committee (PSC). The PSC focuses on the accounting, auditing, and financial reporting needs of national, regional, and local governments and related governmental agencies. Its International Public Sector Accounting Standards are based ("to the extent appropriate") on International Financial Reporting Standards. Click for Press Release about the Review.
6 January 2004: Final CESR recommendations on transition to IFRS
The Committee of European Securities Regulators (CESR) has published recommendations on how listed European companies can effectively communicate to investors the financial impact of transitioning to IFRS in 2005. The recommendations identify four milestones in the transition process, as follows:
Publication of the 2003 annual report (including the 2003 financial statements). Companies should explain (a) how they intend to carry out the transition to IAS/IFRS (plans and degree of achievement for the transition) and (b) the key differences between their present accounting policies and the ones they know with sufficient certainty they will have to apply under IAS/IFRS.
Publication of the 2004 annual report (including the 2004 financial statements). As soon as a company can quantify the impact of the change to IAS/IFRS on its 2004 financial statements in a sufficiently reliable manner, it should disclose the relevant quantified information.
2005 interim financial reports (half-yearly and quarterly financial reports). In interim financial reports for 2005, listed companies should start applying as of 1 January 2005 either IAS 34, Interim Financial Reporting, or, if this is not possible, at least the IAS/IFRS recognition and measurement principles that will be applicable at year end.
2005 annual financial statements. For most listed companies in Europe, these will be the first complete set of financial statements presented under IAS/IFRS. CESR does not propose a requirement for more than one year of comparatives (2004) under IAS/IFRS. But if, because of national regulation or choice, a company presents three successive periods but has not restated under IAS/IFRS the earliest period presented (2003), CESR proposes a format ("the bridge approach") for presenting comparative figures (2004 and 2003).
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5 January 2004: Special IASPlus newsletter: Year 2003 in Review
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We have published a special edition of our IASPlus newsletter – IFRS: Year 2003 in Review (PDF 106k). This edition includes:
- Month-by-month summary of the key international financial reporting events of 2003.
- List of Deloitte IFRS resources published during 2003.
- National adoptions of IFRS during 2003.
- Meeting dates for 2004 for the International Accounting Standard Board (IASB), the Standards Advisory Council (SAC), and the International Financial Reporting Interpretations Committee (IFRIC).
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1 January 2004: Thank you for visiting us during 2003
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