We have combined the notes taken by Deloitte observers at the IASB's meeting on 12-14 November 2002 in Hong Kong onto a Single Page.

The exposure draft of International Auditing Practice Statement (IAPS), Reporting on Compliance with International Financial Reporting Standards, makes clear that when an entity references compliance with IFRSs, auditors should issue an audit report with an unqualified opinion only if the entity complies fully with all applicable IFRSs. Click to download:

• Exposure Draft (PDF 48k)
• Press Release (PDF 18k)
• Info about IAASB.

Webster has resigned as chairman of the US Public Company Accounting Oversight Board (PCAOB). The PCAOB was created by accounting reform legislation enacted in the United States in July to oversee the audits of public companies. Also, Jackson M. Day has been named Acting Chief Accountant of the SEC, replacing Robert K. Herdman, who had resigned last week. The resignations of Mr. Webster and Mr. Herdman, and that of SEC Chairman Harvey H. Pitt, relate to questions about the SEC's process for selecting members of the new five-member PCAOB.

We have combined the notes taken by Deloitte observers at the IASB's meeting on 12-14 November 2002 in Hong Kong onto a Single Page.

His resignation comes less than a week after that of SEC Chairman Harvey H. Pitt (see news story 5 November 2002). Mr. Herdman said he resigned "in light of recent events" – alluding to questions relating to the SEC's effort to select candidates for the five-member Public Company Accounting Oversight Board.

The Board's agenda includes Insurance, the Improvements Project (results of exposure), Business Combinations (Phase II), Revenue, Debt/Equity, and Convergence – IAS 19 Employee Benefits. We will post brief summaries of each day's discussions. On 15-16 November, the Board will meet with the Standards Advisory Council. On the agenda are Convergence, Reporting Performance, Share-Based Payment (update on North American developments), Revenue and Liabilities, the Board's Research Agenda, Insurance, Regulatory Developments in the European Union, the Improvements Project (update), and Other Project Developments. Agenda Details.

The rules would apply to both in-house and outside counsel, including attorneys licensed, or otherwise qualified to practice, in foreign jurisdictions who appear and practice before the Commission. Click for SEC News Release.

Herz addressed many aspects of convergence of US GAAP and IFRS and the implications of a principles-based approach to setting accounting standards in the United States. He also outlined the FASB's current examination of whether modifications in the current structure of US accounting standard setting – including the roles, composition, and processes of the EITF and AcSEC – would improve the overall quality and effectiveness of U.S. accounting standard setting. Click for:

• Mr. Herz's Address (PDF 160k)
• Press Release from the AICPA (PDF 45k) on shifting the focus of AcSEC to industry-specific guidance.

We have posted the October 2002 Edition of our quarterly newsletter .

The exposure draft addresses how entities should account for share-based payment transactions, including grants of share options to employees. The proposals reflect the following principles:

• When goods or other services are received in exchange for a share-based payment, an expense should be recognised.
• Recognition of the expense should be over the period in which the services involved are rendered or as the goods involved are received.
• Measurement of the expense should be made by reference to fair value.

Comments on the proposals are requested by 7 March 2003. If a standard is issued by the end of 2003, it is expected to be effective for periods beginning on or after 1 January 2004.

The UK Accounting Standards Board has simultaneously published the exposure draft as FRED 31 Share-Based Payment. The FASB is also expected to publish the exposure draft, together with a summary of the key differences with current US accounting standards, and an invitation to comment.

The electronic version of ED 2 will be posted on the IASB's Website on 18 November (subscribers may download it now). Please note that ED 2 is published in three separate PDF documents: Requirements, Basis for Conclusions, and Implementation Guidance.

Click for:

• Background Information on the project (including a summary of the main proposals).
• IASB Press Release (PDF 33k).