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March

New DTT publication on applying IFRS in the publishing industry

18 Mar 2003

A new booklet from Deloitte & Touche (UK) – Publishing Industry: The Future of Intangibles under IAS – assesses the impact that changes in IFRS may have on the newspaper and magazine publishing industry over the next few years.

While intangibles occur in virtually all industries, the publishing industry is particularly affected because publishing rights and titles form an important element of most publishing companies' financial statements. In some instances they are a highly significant portion of the net asset position (often more than 100 percent). You may (PDF 280k) without charge. In recent exposure drafts, the IASB has proposed to draw an accounting distinction between intangibles with finite useful lives and those with indefinite lives, with amortisation plus impairment testing for the former and non-amortisation plus impairment testing for the latter. Revaluation would be permitted for all, but only if fair value can be determined by reference to prices in an active market. Click for a Summary of the IASB Exposure Drafts.

IFRS conference in Copenhagen 1 April, 6 May, and 3 June 2003

18 Mar 2003

Deloitte & Touche in Denmark will host a three-day public conference on The Road to IAS/IFRS in Copenhagen on 1 April, 6 May, and 3 June.

The conference will address the transition to reporting under IFRS primarily from a strategic point of view. It will also cover financial reporting issues and IT-systems impacts. Click for the Programme (PDF 279k, in Danish). Meet among others John T. Smith, IASB Board Member and co-author of IAS 39 on 6 May 2003. This whole day is devoted to the most complex issue in making the transition to IFRS – financial instruments. The fee for the entire conference is 2,500 DKK excluding VAT per person to cover the direct costs. Register using this Registration Form (PDF 56k, in Danish), or by phoning Marianne Lund at +45 35-25-25-66, or by email at malund@deloitte.dk.

Comments on IASCF testing and certification programme

17 Mar 2003

The letters of comment received by the IASC Foundation Trustees on their Proposal for a testing and certification programme have been posted on the IASB website. .

The letters of comment received by the IASC Foundation Trustees on their Proposal for a testing and certification programme have been posted on the IASB website.

Another Congressional letter to FASB on stock options

15 Mar 2003

A bipartisan group of 15 US Senators – including a former accountant and the Senator who led the Congressional opposition to FASB's proposal to expense stock options in the early 1990s – have Written to FASB (PDF 808k) urging enhanced disclosures, coupled with shareholder approval of all stock option plans, rather than mandatory expensing.

They also said that the deliberation process currently underway is "basically flawed".

Investors need accurate, reliable and meaningful information to make informed investment decisions. Accounting rules should reflect accounting principles that are generally accepted within the accounting profession, especially those that promote the disclosure, transparency, comparability and reliability of financial statements.

We believe a mandatory expensing standard – such as that proposed by the International Accounting Standards Board and apparently which is under consideration by the FASB – may not meet these important tests.... A mandatory expensing standard will not give investors accurate or reliable information – instead, they will get exactly the opposite.

See also our earlier news story of 19 February 2003.

Canadian and German boards support expensing stock options

15 Mar 2003

In their letters of comment on IASB ED 2, Share-Based Payment, both the Canadian and German accounting standards boards expressed support for expensing stock options and for measuring them at the fair value of the options granted. .

In their letters of comment on IASB ED 2, Share-Based Payment, both the Canadian and German accounting standards boards expressed support for expensing stock options and for measuring them at the fair value of the options granted.

Deloitte Touche Tohmatsu comment letter on ED 2

14 Mar 2003

We have posted our , Share-Based Payment (PDF 230k).

Our comments expressed the following principal conclusions:

Deloitte Touche Tohmatsu Principal Conclusions on Share-Based Payments

  • Share-based payments should be measured and recognised at fair value. Share-based payments to employees represent an element of compensation. The most relevant measurement of that compensation is fair value.
  • Share-based payments should be expensed over the period that the related service is provided.
  • Share-based payments should be measured at grant date, being the date the parties are committed to the transaction.
  • No adjustment should be made to fair value for vesting conditions.
  • Expensing should stop if the employee leaves and consequently stops providing services.
  • Minimum value should be used for unlisted entities.
  • For transactions involving the exchange of goods directly for equity, a measurement date does not occur until the exchange actually occurs (not at an earlier agreement date).

IFAC's 2003 Handbook is published

14 Mar 2003

IFAC has released the 2003 edition of its Handbook of International Auditing, Assurance, and Ethics Pronouncements, containing all pronouncements issued as of 31 December 2002. The Handbook includes International Standards on Auditing (ISAs), developed by the International Auditing and Assurance Standards Board (IAASB), and IFAC's Code of Ethics for Professional Accountants.

A print version (includes CD ROM) may be purchased from IFAC. Alternatively, the handbook, and all pronouncements contained in it (and future updates), may be accessed free of charge by going to the IFAC Store.

FASB adds employee stock options to its agenda

13 Mar 2003

Noting that "a move to require an expense treatment would be consistent with the FASB's commitment to work toward convergence between US and international accounting standards", the US Financial Accounting Standards Board has added to its agenda a project on employee stock options.

Click for FASB News Release.

Overgang til de internationale regnskabsstandarder

13 Mar 2003

Deloitte & Touche in Denmark has developed a 28-page publication on (PDF 848k, in Danish, A5 format).

The booklet is written mainly for top management – the members of the supervisory boards and the executive boards of entities listed on the Copenhagen Stock Exchange and other large Danish entities. Of course, other Danish readers can get a quick overview of the process of transition to IAS by reading it. The booklet highlights areas of focus that are likely to require most resources for Danish entities.

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