February

IOSCO task force will address financial fraud

11 Feb 2004

The International Organization of Securities Commissions has appointed a special Chairmen's Task Force, composed of chairmen of a number of member commissions, to organise and coordinate IOSCO's response to recent high profile incidents of securities fraud and market abuse. "As a priority, the Task Force will: identify potential new issues arising from recent cases, including concerns about transparency in the bond markets, the role of unregulated entities, the role of complex group structures, and appropriate levels of sanctions; review implementation of existing standards, including current mechanisms for international cooperation; and suggest responses aimed at producing appropriate regulatory incentives, such as improving risk identification and assessment by regulators and giving attention to uncooperative and under-regulated jurisdictions. The recent revelations of accounting and auditing irregularities serve to emphasize the critical importance of the initiatives that IOSCO and its national securities commission members have taken relating to corporate disclosures and the quality of audits of public companies.

High quality accounting principles and the availability of high quality audits of public companies is critical to the proper functioning of securities markets and the protection of investors." Click for IOSCO Press Release (PDF 236k).

Comments on IASCF constitution review issues are posted

11 Feb 2004

As part of their constitution review, the IASC Foundation Trustees invited commentators to identify issues to be addressed in the review.

Those comment letters have been posted on the IASB Website.

China accounting - year 2003 in review

11 Feb 2004

We have posted both the (PDF 35k) and (PDF 217k) versions of our China Financial Reporting Update - 2003 Year-End Review.

The newsletter covers activities of the Ministry of Finance, the China Securities Regulatory Commission, and the Chinese Institute of Certified Public Accountants.

IASCF Trustees propose a European consultative group

11 Feb 2004

The IASC Foundation Trustees have invited senior officials from European banking, securities, and insurance regulators and from the accounting, banking, and insurance industries to form a high level European consultative group to advise the IASB.

The group will focus specifically on application of accounting standards to financial institutions. In announcing formation of the group, the Trustees said: "The concept of such a group has grown out of discussions with the European Commission, which is invited to participate in the consultative group's discussions as an observer. While deliberations on the international standards on financial instruments (IASs 32 and 39) must come to a close by the end of March 2004, the extended debate surrounding the IASB's proposed improvements to these two standards has demonstrated that long-standing and basic issues of accounting and regulatory philosophy and approach will remain. The IASB will need in the future to address these longer-term issues, which centre importantly on the application and extent of fair value accounting appropriate for regulated financial institutions in the banking and insurance industries." Click for Press Release (PDF 18k).

Review of Deloitte's IFRS e-learning

10 Feb 2004

Needless to say, we are delighted at what AccountingWeb had to say about Deloitte's IFRS e-learning.

Incidentally, in the first ten days over 5,000 modules were downloaded.

Excerpts from AccountingWeb 6 Feb 2004

"Review: Deloitte IAS Plus - e-learning for free Training consultant Viv Cole test drives the IFRS e-learning service from Deloitteand discovers a powerful performer that can be yours - for no cost."

"Deloitte must have spent the cost of a F1 Ferrari on developing IFRS e-learning and now they are giving it all away for free.... On www.iasplus.com you can follow the Deloitte IFRS e-learning logo to find modules that are designed to give you a good basic grounding in each IFRS. Once you have waded through the disclaimers, it is straightforward to download zip files of each module (the files are approximately 3Mb each, so having a broadband connection does help). Some of the features to highlight are:

  • a clearly presented and easy to navigate user interface
  • good use of questions and feedback to develop your understanding
  • a strong practical feel, with several scenarios where you need to think of how to apply the standard in order to provide advice, for example to a client
  • the variety created by use of audio and graphics to represent incoming phone calls, emails and faxes
  • a Coach button to help you go into more depth if you choose."

Comment letters on restructuring of EFRAG are posted

10 Feb 2004

The European Financial Reporting Advisory Group has posted on its Website the letters of comment it has received on its December 2003 Proposals to enhance its role and working process. .

The European Financial Reporting Advisory Group has posted on its Website the letters of comment it has received on its December 2003 Proposals to enhance its role and working process.

Colombia is considering a switch to IFRS

09 Feb 2004

The government of Colombia has invited comment on a draft law that would adopt International Financial Reporting Standards as Colombian national standards.

Currently, Colombian Accounting Standards are established by the government, and they differ significantly from IFRS. The draft law is a joint effort of various government ministries and departments, including finance, public credit, industry and commerce, accountancy, banking, companies, securities markets, planning, taxes, and customs – all of the key bodies that would need to agree to such a fundamental change in Colombian accounting practice. Click for More Information ("Proyecto de Ley: Por el cual se adoptan en Colombia los estándares internacionales de contabilidad, auditoría y contaduría").

 

Newsletter summarising the revised IAS 32 and IAS 39

09 Feb 2004

We have posted a 14-page (PDF 158k) of our IASPlus newsletter summarising the IASB's two recently revised financial instruments standards – IAS 32 Financial Instruments: Disclosure and Presentation, and IAS 39 Financial Instruments: Recognition and Measurement.

Both standards are effective for annual periods beginning on or after 1 January 2005. Earlier application of the revised standards together, but not individually, is permitted.

IVSC proposal on valuation of assets for financial statements

08 Feb 2004

A working group of the International Valuation Standards Committee has published, for comment, a draft position statement addressing the valuation implications arising from the recently revised IAS 16 'Property, Plant and Equipment'.

The draft proposes a new valuation basis in response to the change in establishing fair value under IAS 16. The IVSC Management Board will debate the recommendations of the working group at its meeting in early April but approved the early release of the position statement for exposure. Comments are due 19 March 2004. Click to download:

 

ACCA urges acceptance of IAS 32 and 39 in Europe

08 Feb 2004

The Association of Chartered Certified Accountants (ACCA) has expressed dismay about the possible delay in European endorsement of the revised IAS 32 and IAS 39 on financial instruments.

Allen Blewitt, ACCA Chief Executive, said: "The goal of achieving a truly global set of financial reporting standards is vital for the credibility of the world's capital markets. All parties must accept that the process of global convergence will necessarily involve some pain and some gain – they must keep their eye on the bigger picture." Click for ACCA Press Release (PDF 24k).

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.