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August

Lists of German companies currently using IFRSs and US GAAP

31 Aug 2004

The German Accounting Standards Committee has updated its lists of large German companies that are currently applying IFRSs, as well as those now using US GAAP and German GAAP.

These lists sorted by the 30 DAX, 50 MDAX, 50 SDAX, and 30 TecDAX companies. They are part of a series of frequently asked questions (FAQ) about German financial reporting, in English. Here is the Link to the FAQ File on the website of the GASC.

Graded vesting of share options – FASB to differ from IFRS 2

31 Aug 2004

A decision of the US Financial Accounting Standards Board would create a significant difference between US GAAP and IFRSs on how to recognise the expense for share options with graded vesting.

Graded vesting means that portions of a single option grant will vest on two or more dates. The IFRS 2 requirement is explained in IFRS 2.IG11:

For example, suppose an employee is granted 100 share options, which will vest in instalments of 25 share options at the end of each year over the next four years. To apply the requirements of the IFRS, the entity should treat each instalment as a separate share option grant, because each instalment has a different vesting period, and hence the fair value of each instalment will differ (because the length of the vesting period affects, for example, the likely timing of cash flows arising from the exercise of the options).

That had been FASB's proposal as well. However, after considering the comments on its current exposure draft, FASB has now decided to give entities the choice of recognising the expense on a straight-line basis. Treating each instalment as a separate grant has the effect of recognising more expense up front.

Draft guidance for auditors on first-time IFRS adoption

30 Aug 2004

The Auditing Practices Board of the United Kingdom has issued a 37-page draft bulletin on Guidance for Auditors on First-time Application of IFRSs in the United Kingdom.

The bulletin would provide auditors with interim guidance on issues that may arise when entities move from UK GAAP to IFRSs. Comments on the draft are due by 31 October 2004. Among the audit risks noted are limited experience with IFRSs, problems caused by systems changes, shortage of resources, identification of all of the differences between the accounting frameworks, valuation issues in such areas as share options and non-traded financial instruments, and earnings management. Regarding the latter, the bulletin notes:

There may be opportunities for aggressive earnings management by companies. For example, management may wish to set an advantageous starting figure for earnings under IFRSs in the year of transition, conscious of the implications for future years. This could involve setting the figure as low as possible in the year of such a major change, while attention is focussed on the changeover itself, so giving leeway for flattering increases in earnings in future years.

Click for:

Agenda for IASB September meeting is posted

26 Aug 2004

The International Accounting Standards Board will meet on Tuesday through Friday, 21-24 September 2004, in London.

The meeting will be the first to adopt the IASB's new meeting framework, which includes both educational (non-decision-making) and deliberative sessions. In the agenda shown below, all sessions are deliberative unless marked educational. The Board will also meet on Monday morning 27 September 2004 and then again on Wednesday morning 29 September 2004 with the chairs of its eight liaison standard-setting bodies. Further, the Board will host a meeting of representatives of over 30 world accounting standard setters on the afternoon of Monday 27 September 2004 and continuing all day Tuesday 28 September 2004.

AGENDA OF THE IASB MEETING 21-24 SEPTEMBER 2004

Tuesday 21 September

Wednesday 22 September

  • Morning: Educational session on Insurance
  • Afternoon: Accounting Concepts – initial consideration of this topic
  • Afternoon: Business Combinations Phase II – Issues related to the proposed fair value hierarchy and combinations involving mutual entities

Thursday 23 September

Friday 24 September

MEETINGS WITH STANDARD SETTERS 27-29 SEPTEMBER 2004

Monday 27 September 2004

  • Morning: Meeting with national standard-setters
  • Afternoon: Meeting with world standard-setters
Tuesday 28 September 2004
  • All day: Meeting with world standard-setters
Wednesday 29 September 2004
  • Morning: Meeting with national standard-setters

German GAAP–IFRS comparison is now available

26 Aug 2004

The second edition of Deloitte's 170-page comparison of German GAAP and IFRSs – Rechnungslegung nach IFRS – is now available.

The book contains a general introduction into IFRSs, the IASB, and the IAS regulation; a summary of the key aspects of IFRS 1; and a line item by line item comparison. It concludes with an executive summary. For more information please visit the Publisher's Website.

Deloitte guide to IFRS 1 First-time Adoption of IFRSs

26 Aug 2004

We have posted a new Deloitte publication First-time Adoption – A Guide to IFRS 1.

This 104-page bound booklet deals with first-time adoption issues related to the stable platform IFRSs, with focus on 2005 adopters. The booklet includes:
  • A summary of IFRS 1.
  • Specific issues related to first-time adoption.
  • Questions and responses.
  • A disclosure checklist.
  • A large number of illustrative examples.
Click to (PDF 2,506k).

Interpretations Committee will meet next week in London

25 Aug 2004

The International Financial Reporting Interpretations Committee (IFRIC) will meet on Thursday and Friday, 2 and 3 September 2004, at the offices of the IASB in London.

The agenda:

AGENDA OF THE IFRIC MEETING 2-3 SEPTEMBER 2004

EFRAG announces its 2005 meeting schedule

24 Aug 2004

The EFRAG Technical Expert Group (TEG) is coordinating the dates of its 2005 meetings with those of the IASB, generally holding meetings (which are open to public observation) during the week preceding the IASB Board meeting, as follows (locations may change from Brussels).

EFRAG's 2004 meeting dates are also shown:

 

2004 Month

IASB Board

SAC

WSS

Location

EFRAG TEG

Location

September

22 to 24

27

London

Wed-Fri 1 to 3

Brussels

October

18 to 22

Norwalk

Wed-Fri 6 to 8

Brussels

November

15 to 17

18/19

London

Wed-Fri 3 to 5

Brussels

December

15 to 17

London

Tue-Thu 7 to 9

Brussels

2005 Month

IASB Board

SAC

WSS

Location

EFRAG TEG

Location

January

17 to 21

London

Wed-Fri 12 to 14

Brussels

February

14 to 18

10/11

London

Mon-Wed 7 to 9

Brussels

March

14 to 18

London

Wed-Fri 9 to 11

Brussels

April

18 to 22

London

Wed-Fri 13 to 15

Brussels

May

16 to 20

London

Wed-Fri 11 to 13

Brussels

June

20 to 24

27/28

London

Wed-Fri 15 to 17

Brussels

July

18 to 22

London

Mon-Wed 11 to 13

Brussels

August

September

19 to 23

26/27

London

Wed-Fri 7 to 9

Brussels

October

17 to 21

Norwalk

Wed-Fri 5 to 7

Brussels

November

14 to 18

10/11

London

Tue-Thu 8 to 10

Brussels

December

12 to 16

London

Wed-Fri 7 to 9

Brussels

Changes to Australian GAAP from adopting "IFRS equivalents"

24 Aug 2004

The Australian Accounting Standards Board recently issued 40 new or revised accounting standards applicable for all financial years beginning on or after 1 January 2005 (see our news story of 17 July 2004).

Early adoption of the standards is not permitted. Those standards – sometimes referred to as Australian equivalents to International Financial Reporting Standards (A-IFRSs) – will result in some significant changes as compared to practice under current Australian GAAP. Deloitte (Australia) has published a 24-page booklet explaining the major (PDF 2,089k). None of the new A-IFRSs is 100% compatible with the corresponding IFRS for the following reasons:
  • Wording has been amended to accommodate the Australian legislative environment, for example, reference to the Corporations Act 2001 in the application paragraphs.
  • Additional or amended requirements for not-for-profit entities.
  • In some cases the AASB has permitted only one of a number of options available in the corresponding IFRS.
  • Additional disclosures.

Some stats about www.iasplus.com files

24 Aug 2004

Out of curiosity, we computed a few statistics about the files underlying Deloitte's www.iasplus.com website.

The site is made up of 1,775 files totalling 226mb of information. The 1,775 files include 392 HTML pages; 994 downloadable PDF files; 293 GIF and 78 JPG image files; and 18 other files including ZIP and ICO. The files contain 933 remote links to other sites or pages on the Internet.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.