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2003

IAASB EDs on the auditor's report and group audits

29 Dec 2003

The International Auditing and Assurance Standards Board (IAASB) has issued the following new exposure drafts (EDs) addressing issues pertaining to the auditor's report and group audits. Proposed Revised International Standard on Auditing (ISA) 700, The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements. Proposed Revised ISA 600, The Work of Related Auditors and Other Auditors in the Audit of Group Financial Statements. Proposed new International Auditing Practice Statement (IAPS), The Audit of Group Financial Statements. Comments are requested by 31 March 2004. Click for Press Release and Links to Download the EDs (PDF 87k). .

The International Auditing and Assurance Standards Board (IAASB) has issued the following new exposure drafts (EDs) addressing issues pertaining to the auditor's report and group audits.

  • Proposed Revised International Standard on Auditing (ISA) 700, The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements.
  • Proposed Revised ISA 600, The Work of Related Auditors and Other Auditors in the Audit of Group Financial Statements.
  • Proposed new International Auditing Practice Statement (IAPS), The Audit of Group Financial Statements.
Comments are requested by 31 March 2004. Click for Press Release and Links to Download the EDs (PDF 87k).

Differences between "Improved" IAS and UK GAAP

28 Dec 2003

The United Kingdom Accounting Standards Board has posted a Summary of Key Differences Between UK GAAP and the recently issued IASs resulting from the IASB's Improvements Project on the ASB website. .

The United Kingdom Accounting Standards Board has posted a Summary of Key Differences Between UK GAAP and the recently issued IASs resulting from the IASB's Improvements Project on the ASB website.

Hong Kong intends to adopt revised IAS 32 and 39 in full

24 Dec 2003

The Financial Accounting Standards Committee of the Hong Kong Society of Accountants (HKSA) has announced that it intends to seek approval of the HKSA's Council to adopt the IASB's newly revised standards on financial instruments – IAS 32 and IAS 39 – in full as Hong Kong Statements of Standard Accounting Practice (SSAPs).

The HKSA's goal is to have the final SSAPs approved in January. They had previously been exposed for comment in Hong Kong. The HKSA Press Release (PDF 117k) said: "These two accounting standards provide comprehensive guidance on the accounting for financial instruments. The need for such guidance is crucial. Financial instruments are a large part of the assets and liabilities of virtually every company, in particular financial institutions. They also play a central role in the efficient operation of financial markets". Accounting standard-setters in Australia, Canada, Germany, New Zealand, and United Kingdom have all issued press releases commending the IASB for its new standards, as has the US Securities and Exchange Commission and the Australia Securities and Investments Commission.

 

Project pages updated

24 Dec 2003

We have updated our summaries of the following IASB agenda projects to reflect the discussions at the Board's December 2003 meeting: .

New FASB pension disclosures delayed for foreign plans

24 Dec 2003

The US Financial Accounting Standards Board (FASB) has revised its Statement 132 on Employers' Disclosures about Pensions and Other Postretirement Benefits.

Among other things, companies must now disclose plan assets by category, investment strategy, measurement date(s), plan obligations, cash flows, and components of net periodic benefit cost recognised during interim periods. Disclosure requirements for nonpublic entities are reduced. The guidance is effective for financial years ending after 15 December 2003, and for quarters beginning after December 15, 2003. However, the effective date for disclosure of certain information relating to foreign plans is financial years ending after 15 June 2004. But until IAS 132 is fully adopted, financial statements that exclude foreign plans from (a) the actual allocation of assets, (b) the description of investment strategies, (c) the basis used to determine the expected long-term rate-of-return-on-assets assumption, or (d) the amount of accumulated benefit obligation must include, separately for domestic plans, the total fair value of plan assets and the overall expected long-term rate of return on assets. You can download the full Statement 132 and related news release and FAQ from the FASB Website.

Proposal – international auditing standards for Canada

22 Dec 2003

A discussion paper published by the Certified General Accountants Association of Canada concludes that Canada would be well served by adopting International Auditing Standards (ISAs) for use as the domestic auditing standards in Canada.

Click for More Information.

EFRAG public hearing on strengthening its role

22 Dec 2003

In our News Story of 6 December 2003, we previously reported that the European Financial Reporting Advisory Group (EFRAG) is inviting comment on proposals to enhance its role and streamline its operating processes with the goal of "strengthening European input to the IASB".

EFRAG has announced that it will hold a public hearing on those proposals on 8 January 2004 at the Renaissance Hotel, Rue du Parnasse 19, Brussels, Belgium, from 13:30pm to 17:00pm.

PCAOB adopts its first auditing standard

22 Dec 2003

The US Public Company Accounting Oversight Board has adopted its first auditing standard – Auditing Standard No.

1, References in Auditors' Reports to the Standards of the Public Company Accounting Oversight Board. AS 1 requires that auditors' reports on engagements conducted in accordance with the PCAOB's standards include a reference that the engagement was performed in accordance with the standards of the PCAOB. This replaces previously required references to generally accepted auditing standards. SEC approval is required before the standard takes effect. (PDF 55k).

New SEC guidance on MD&A

22 Dec 2003

The US SEC has issued an interpretive release providing guidance regarding Management's Discussion & Analysis of Financial Condition and Results of Operations, commonly called MD&A, included in reporting companies' disclosure documents.

Link to (PDF 312k) on SEC website. Regarding foreign issuers, the SEC said:

While this release refers primarily to U.S. GAAP, the underlying events and circumstances described in the release ordinarily will be applicable to foreign private issuers and should be discussed to the extent material. Consistent with the Instructions to Form 20-F, however, companies using that form should focus on the primary financial statements in their discussion and analysis in Item 5 (Operative and Financial Review Prospects). Also, companies are required to discuss in Item 5 of Form 20-F any aspects of the differences between foreign and U.S. GAAP that they believe are necessary for an understanding of the financial statements as a whole

Comment letters on asset disposals and macro hedging

21 Dec 2003

The IASB has posted on its Website the comment letters it received two exposure drafts: ED 4, Disposal of Non-current Assets and Presentation of Discontinued Operations, and the unnumbered ED on Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk.

They are available for download without charge.

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