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Enhancement of EFRAG's role and working process


EFRAG has finalised its position paper on Enhancement of the Role and Working Process of EFRAG (PDF 65k).

Among the conclusions:

  • Expand the role of the Supervisory Board
  • Require that EFRAG analyse the economic, legal, and practical implications when expressing views on major issues
  • Create an Advisory Forum
  • Change EFRAG's voting procedures
  • Cooperate more closely with EU national accounting standard setters
  • Enhance EFRAG's working relationship with IASB
  • Increase EFRAG's overall visibility and transparency
  • Seek formal recognition under the EU accounting regulation from the European Commission
  • Increase EFRAG's funding

Special edition of IASPlus on IFRS 5


We have published a of our -->IAS Plus --> newsletter (PDF 56k) devoted to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

The news alert summarises the main requirements of IFRS 5 and discusses convergence with US SFAS 144 Accounting for the Impairment or Disposal of Long-Lived Assets. All past issues of the IAS Plus newsletter can be found Here.

IASB proposes to amend IAS 19 Employee Benefits


The IASB has issued an exposure draft: 'Proposed Amendments to IAS 19 Employee Benefits: Actuarial Gains and Losses, Group Plans and Disclosures'.

The amendments would introduce an option for an entity to recognise actuarial gains and losses in full as they arise, outside profit or loss, in a statement of changes in equity that shows total recognised gains and losses (sometimes called comprehensive income). This proposal is similar to the requirements of the UK standard, FRS 17 Retirement Benefits.

The IASB concluded that, pending further work on post-employment benefits and on reporting comprehensive income, the Board believes that the approach in FRS 17 should be available as an option to IFRS preparers. IAS 19 would also continue to permit recognition of actuarial gains and losses in profit or loss, either in the period in which they occur or spread over the service lives of the employees. Almost all entities currently using IAS 19 choose to spread actuarial gains and losses.

The exposure draft also would:

  • Extend the application of multi-employer plan accounting to entities within a consolidated group that meet certain criteria
  • Add disclosures to (a) provide information about trends in the assets and liabilities in a defined benefit plan and the assumptions underlying the components of the defined benefit cost and (b) bring the disclosures in IAS 19 closer to those required by the US standard SFAS 132 Employers' Disclosures about Pensions and Other Postretirement Benefits, which was revised in December 2003.

The IASB seeks comments by 31 July 2004. Click for IASB Press Release (PDF 26k).


IASB proposes to amend IFRS 3 'Business Combinations'


The IASB has issued an exposure draft: 'Proposed Amendments to IFRS 3 Business Combinations: Combinations by Contract Alone or Involving Mutual Entities'.

The amendments would add to the scope of IFRS 3:
  • Combinations in which separate entities are brought together to form a reporting entity by contract alone without the obtaining of an ownership interest; and
  • Business combinations involving mutual entities.

Both were excluded from IFRS 3 when it was issued last month. Including these transactions in IFRS 3 would mean that an acquirer must be identified and the acquirer must account for the combination using the purchase method.

The exposure draft would not change the IFRS 3 scope exclusion for combinations involving entities under common control.

If finalised, the proposal would be applied to business combinations agreed to on or after 31 March 2004 (same as IFRS 3).

The IASB has asked for comments by 31 July 2004. Click for IASB Press Release (PDF 33k).


EFRAG seeks comments on two endorsement proposals


The European Financial Reporting Advisory Group (EFRAG) has invited comments by 24 May 2004 on two draft letters to the European Commission recommending the adoption of IFRS 3 Business Combinations, as well as the recently revised IAS 36 Impairment of Assets and IAS 38 Intangible Assets, for use in Europe.

Despite the favourable recommendation, the letters express EFRAG's "serious concern" about recognising in-process R&D; as an asset and about recognising contingent liabilities. Click to download the draft IFRS 3 Letter (PDF 48k) and IAS 36 and 38 Letter (PDF 37k).

New Australian accounting alert


Deloitte (Australia) has published a new on Disclosing the Impacts of Adopting Australian Equivalents to IFRS (PDF 64k).

Past issues can be found Here.

New Accounting Roundup newsletter


We have posted the 26 April 2004 edition of (PDF 245k) from Deloitte (United States).

This newsletter briefly describes key regulatory and professional developments that have recently occurred and provides links to locations where additional information can be found on each topic. This issue includes updates on activities of FASB, SEC, PCAOB, and IASB. You will find past issues Here.

Report from IASB meeting with partner standard setters


We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004. .

We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.

EFRAG recommends adoption of IFRS 2 for use in Europe


The European Financial Reporting Advisory Group (EFRAG) has written to the European Commission recommending the adoption of IFRS 2 Share-based Payment for use in Europe.

"EFRAG supports the IASB conclusion that an expense should be recognised even though the share-based payment transaction does not require the entity to sacrifice any cash or other assets." Click to Download EFRAG's Letter (PDF 40k).

Singapore adopts improved IASs and revised IASs 32 and 39


The Singapore accounting standard-setter – the Council on Corporate Disclosure and Governance (CCDG) – has approved revised standards comparable to those issued under the IASB's Improvements Project, except for IAS 40 Investment Property.

The CCDG has also approved revised standards comparable to the revised IAS 32 and IAS 39. The new standards issued by the CCDG contain a few departures from the equivalent revised IASs:

  • FRS 16 Property, Plant and Equipment allows for one-off revaluations prior to 1996 to be carried as cost.
  • FRS 17 Leases allows leasehold land to be classified as a finance lease if it meets the criteria in the standard.
  • FRS 27 Consolidated and Separate Financial Statements, FRS 28 Investments in Associates, and FRS 31 Interests in Joint Ventures do not require that the parent must produce consolidated financial statements that comply with IFRSs in order to be exempt from consolidation or applying the equity method.
These improved FRSs will be effective for financial periods beginning on or after 1 January 2005. There's more information at the CCDG Website.

Correction list for hyphenation

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