Oxley, the Ohio Republican who is chairman of the House Committee on Financial Services, had taken a stand against true evil: the International Accounting Standards Board. His act of bravery was voicing his determination to keep America safe from the proper accounting of companies' stock options...."

The action was taken for two reasons. First, since all European listed companies will be required to use IAS in 2005, Dutch companies will be able to make the switch sooner if they choose. Second, allowing IAS or US GAAP will ease the burden on the many Dutch companies that now have to prepare two sets of financial statements because they seek capital in overseas markets. The bill has been sent to the Council of State for advice, after which the House of Commons must approve.

The forum brought together CEOs and CFOs of major insurance companies, investors, analysts, standard-setters including representatives from the IASB, regulators, actuaries, and auditors to debate the issues surrounding financial reporting by insurance groups, particularly on the accounting for insurance contracts and performance reporting. Click for IASB Project Information. You can download these key conference documents:

• (PDF 15k)
• Analysis by Deloitte Touche Tohmatsu (PDF 1,003k)
• Analysis by Deloitte Touche Tohmatsu (PDF 322k)
• Analysis by Deloitte Touche Tohmatsu (PDF 440k)
• (PDF 1,329k)

Our basic position:

• We support the increased use of fair values for financial instruments in financial statements as part of the evolutionary process that may ultimately result in a full fair value accounting model for financial instruments. However, we will not support the recognition in the income statement of changes in the fair values of financial instruments that are not being held for trading until issues relating to performance reporting and fair value measurement are resolved.
• We believe that a movement to fair value accounting should be an evolutionary process that is accomplished in stages. IAS 32 started the movement by requiring disclosures of fair values of financial instruments. IAS 39 continued that movement by requiring that all derivatives and most financial instruments be reported at fair value. We believe the next step in the evolution could be a partial increase in the use of fair value accounting.
• We recommend that the next step in the process of moving to fair value accounting for financial instruments be accomplished by amending IAS 39 to eliminate the use of amortised cost for originated loans, held-to-maturity financial assets and financial liabilities. Enterprises would have a choice of recognising changes in fair value in equity or in the income statement, except that there should be no choice for financial instruments held for trading. Enterprises would continue to be permitted to use hedge accounting.

Click for:

• Deloitte response to the Joint Working Group Proposal on Financial Instruments
• Project information.

Click for IOSCO News Release (PDF 88k).

The schedule for the Washington meetings:

• Monday 15 October 2001: Trustees meeting
• Tuesday and Wednesday 16-17 October 2001: IASB meets with Advisory Council
• Thursday-Saturday 18-20 October 2001: IASB Board meeting

Click for Agenda Information.

The 64-page guide has summaries of the IASs and SICs as well as background information about IASB. You can download a copy from This Page.

We have posted updated versions of Deloitte Touche Tohmatsu's Model IAS Financial Statements and Presentation/Disclosure Checklist reflecting Standards and Interpretations that are in effect for financial reporting in 2001. Click:

• More information
• Download the (PDF 205k)
• Download the (PDF 219k)

Click here for Project Information. Our basic position:

• We strongly support the development of an international accounting standard for mining and oil and gas companies.
• At the current time, an historical cost concept is more appropriate for accounting for the extractive industries than a model of accounting based on an estimate of the fair values of mineral properties and reserves.
• Within the context of an historical cost model, there is an urgent need to achieve consistency in recognition, measurement, and subsequent depreciation of extractive industry related assets, particularly pre-production expenditure. We favour the following treatment of pre-production costs:
  • Preacquisition prospecting and exploration: Charge to expense
  • Property acquisition (direct and incidental): Capitalise
  • Post-acquisition exploration: Capitalise
  • Evaluation or appraisal costs: Capitalise
  • Development cost: Capitalise
  • Construction cost: Capitalise
  • All capitalised costs are subject to depreciation and an impairment test based on disposal value of the acquired rights

We have updated the country information pages for

• Australia,
• China,
• Hong Kong,
• India,
• Indonesia,
• Malaysia,
• Philippines,
• Pakistan,
• Singapore,
• Taiwan, and
• Thailand.