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July

Notes from IASB meeting 18 July afternoon

19 Jul 2002

We have combined all of our notes from the IASB meeting on 16-19 July 2002 on a Separate Page. .

We have combined all of our notes from the IASB meeting on 16-19 July 2002 on a Separate Page.

IAS essential for consolidation of European capital markets

19 Jul 2002

In an Address (PDF 27k) in Paris on 11 July, European Internal Markets Commissioner Frits Bolkestein said that the quantity and magnitude of accounting and corporate governance scandals that have come to light in the past year make it essential to speed up the consolidation of European capital markets -- and one of the keys is International Accounting Standards. We need to take measures to raise investor confidence in the numbers, through improvements in accounting standards.

The Union has already taken the highly important step in its accounting strategy that almost all listed EU companies will be required to use International Accounting Standards by 2005. Australia has recently joined us. I invite other countries to follow.

We must above all ensure that International Accounting Standards are implemented and enforced effectively and evenly across jurisdictions. I also want to see IAS and US GAAP converge by 2005 so that there may be full reconciliation between them.

Notes from IASB meeting 17 July

18 Jul 2002

We have combined all of our notes from the IASB meeting on 16-19 July 2002 on a Separate Page. .

We have combined all of our notes from the IASB meeting on 16-19 July 2002 on a Separate Page.

New Accounting Roundup newsletter posted

18 Jul 2002

We have posted the 15 July 2002 edition of the Accounting Roundup newsletter from Deloitte & Touche USA. .

We have posted the 15 July 2002 edition of the Accounting Roundup newsletter from Deloitte & Touche USA.

IASB votes to propose expensing of stock options

17 Jul 2002

At its meeting on 16 July 2002 in London, the IASB approved the principle that the fair value of stock options given to employees (and others) should be recognised as expense.

The Board considered and rejected allowing an option of disclosure in lieu of expensing. For employees, fair value would be measured at grant date; for options given to non-employees, a different measurement date would be used. IASB expects to publish an exposure draft in the fourth quarter. The target effective date would be 1 January 2004, though this is tentative, and the IFRS might include a 'look-back' period to cover options granted after the exposure draft is issued. Click for information about the IASB's Agenda Project on Share-Based Payment. Discussion that day also included Insurance Contracts. We have combined all of our notes from the IASB meeting on 16-19 July 2002 on a Separate Page.

Updates on accounting standards setting in Asia-Pacific

17 Jul 2002

We have updated our summaries of recent accounting standards activities in nine Asia-Pacific Jurisdictions: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, and Singapore. .

We have updated our summaries of recent accounting standards activities in nine Asia-Pacific Jurisdictions: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, and Singapore.

Update on South African GAAP

16 Jul 2002

The Accounting Practices Board (APB) in South Africa (SA) has a policy of harmonising SA Statements of Generally Accepted Accounting Practice (GAAP) with IAS. With the exception of the effective dates of the Statements, all SA Statements are similar to IAS.

The Accounting Practices Committee (APC) is revising the process of issuing local Statements of Generally Accepted Accounting Practice (GAAP). As part of this process they intend to clean out the AC 300 series Opinions and, where required, replace such Opinions with an AC 500 series Interpretation.

The AC 300 series are opinions issued by the Accounting Issues Task Force, established by the South African Institute of Chartered Accountants (SAICA), in order to provide a forum for timely review of accounting issues that are, or could be subject to divergent, or unsatisfactory treatment in practice. Task force opinions do not override principles established by Generally Accepted Accounting Practice (GAAP) in the AC 100 and 400 series, but offer guidance to preparers, auditors and users of financial statements, thus facilitating the standardisation of accounting treatments.

The AC 500-series pronouncements will be approved for issue by the Accounting Practices Board and will have the same authority as the AC 100 series Statements of GAAP and AC 400 series Interpretations.

Most of the AC 300 - series Opinions have subsequently been withdrawn and the first two proposed AC 500 - series pronouncements are now being exposed for public comment.

 

GAAP Monitoring Panel

The South African Institute of Chartered Accountants approved the principles of an arrangement with the JSE Securities Exchange to monitor financial statements of listed companies, with a view to taking action against companies which do not comply with the requirements of accounting standards.

 

Joint Disciplinary Task Team

In the light of the recent corporate failures, the SAICA, together with the Public Accountants and Auditors' Board (PAAB) recently joined forces to form a Joint Disciplinary Task Team to review the disciplinary process of the accountancy profession. The decision to form the task team was the result of the SAICA board's decision in 2001 to tighten up on the disciplinary processes of the profession.

The Task Team was given a broad mandate to review the current disciplinary processes of the two organisations in order to recommend improvements and harmonisation in the public interest. The mandate included consideration of the following specific issues:

  • The ability to obtain and subpoena evidence and witnesses, both by a statutory body and a voluntary association.
  • How the disciplinary needs of both SAICA and the PAAB can be met without double trials.
  • The credibility of the process in the eyes of both the public and the members of both bodies.
  • The acceptability of 'plea-bargaining' as a mechanism for improving the efficiency of the process.
  • The optimum level of resources needed to be able to conduct the process effectively and the level of expenditure needed to sustain the process
  • The appropriateness of sentences imposed by both bodies in the light of current society norms
  • The composition of the committees taking into account the availability of volunteers and the trend towards longer and more complex hearings
  • The increasing difficulty of proving cases and the adequacy of evidence
  • If and how the processes can be accelerated.

The Task Team, which has been meeting since January 2002 has issued a final report to be considered by the respective boards of SAICA and PAAB.

In accordance with the recommendations of the task team, the report has been made available for the information of members.

IASB begins a four-day London board meeting today

16 Jul 2002

The IASB will meet 16-19 July in London.

Click for Agenda.

How the ED on IAS 32/39 will change securitisations

15 Jul 2002

We have posted the 1 July 2002 issue of the Deloitte & Touche newsletter, (PDF 134k).

The newsletter summarises the securitisation aspects of IASB's exposure draft of Amendments to IAS 32 and IAS 39.

Basel Committee accord on measuring capital adequacy of banks

13 Jul 2002

At its meeting on 10 July, the Committee on Banking Supervision of the Bank for International Settlements (the Basel Committee) reached agreement on a new capital accord for internationally active banks.

The accord establishes the international benchmark for measuring the capital adequacy of banks. Click for Basel Committee Press Release.

Correction list for hyphenation

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