This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

July

US House may vote this week on stock options legislation

19 Jul 2004

The United States House of Representative may vote as early as Tuesday 20 July on legislation (known as H.R.

3574, the Stock Option Accounting Reform Act) that would restrict the SEC from recognising a FASB standard on expensing stock options to options granted to the top five officers of a company, would exclude volatility from the calculation of fair value for those options, and would delay implementation for at least a year. The Senate must also pass the same legislation before the bill becomes law. On 8 July 2004, FASB Chairman Robert H. Herz testified on the bill before the Commerce, Trade, and Consumer Protection Subcommittee of the House Committee on Energy and Commerce. Mr. Herz's testimony may be found on FASB's Website.

IAASB proposes to enhance its operating procedures

19 Jul 2004

The International Auditing and Assurance Standards Board (IAASB) has issued an exposure draft proposing certain enhancements to its due process and working procedures.

The enhancements are designed to increase confidence that the activities of the IAASB are properly responsive to the public interest and will lead to high quality international standards. Proposed enhancements include:
  • Public forums or round-tables, or the issue of consultation papers, where wider or further input would be appropriate.
  • Enhanced meeting agenda material and easier access to comment letters to assist in its deliberative process.
  • An expanded description of the process by which the IAASB considers the need to re-expose a draft IAASB international standard or practice statement.
  • The possibility of issuing a separate document explaining its basis for conclusions on final IAASB international standards or practice statements where necessary.
  • A process to address circumstances where issues over due process are raised with the IAASB.
For IAASB's press release, including a link to download the exposure draft, Click Here (PDF 89k). Comment deadline is 15 October 2004.

FASB may adopt IASB's black letter/gray letter style

19 Jul 2004

FASB's Response to July 2003 SEC Staff Report to Congress on a Principles-Based Accounting System (see story below) indicates that FASB " -->is considering using the black letter/gray letter style of the International Accounting Standards Board (IASB) and will use that style in its business combinations Exposure Draft.

The Board intends to request constituent input on that style and will address the advantages and disadvantages of using that style in all FASB standards at a later date."

The evolution of US GAAP

18 Jul 2004

Professor Stephen A.

Zeff, Rice University, presented an all-day seminar on the Evolution of US Generally Accepted Accounting Principles (1932 to today) at an International Symposium on Accounting Standards sponsored by the Ministry of Finance of the People's Republic of China, Beijing, 12 July 2004. We are grateful to Prof. Zeff for permitting us to post a comprehensive Outline of the Presentation (PDF 75k). The outline will remain available on the USA Page.

Australian companies slow to begin implementing IFRSs

17 Jul 2004

A survey of 122 Australian corporate entities conducted by the Institute of Chartered Accountants in Australia (ICAA) has found that less than half of those surveyed (49%) have begun the process for implementing International Financial Reporting Standards (IFRSs).

61% believe that IFRSs will assist Australian companies in general, while only 40% feel that IFRSs will assist their own business. Click for (PDF 19k). As noted in the story immediately below this one, IFRSs as of 31 March 2004 are now Australian GAAP and go into effect in 2005.

Australia brings all IFRSs as of 31 March 2004 into effect

17 Jul 2004

The Australian Accounting Standards Board (AASB) has voted to formally adopt all IASs and IFRSs existing at 31 March 2004 as Australian Accounting Standards, thereby effectively introducing those international accounting standards into Australian law for all companies and other entities for reporting periods commencing on or after 1 January 2005. The AASB's policy is to have standards in place one year before entities must adopt them, to allow time for entities to address systems changes and other transition problems.

Thus – with one exception – any further changes to IFRSs would take effect in Australia after 2005. The one exception is the standard expected to result from IASB's ED 6 on exploration and evaluation costs in the extractive industries. That exposure draft would, in effect, "grandfather" Australia's existing national GAAP for those industries. Thus, transition problems are not expected. Because they are delegated legislation, the standards still must pass through a final endorsement process in both houses of the Australian Parliament. They can be rejected in whole or part by a majority vote in either house. Click for (PDF 39k).

Agenda for the July 2004 IASB meeting in London

16 Jul 2004

The IASB will hold its July meeting at its offices, 30 Cannon Street, London, United Kingdom, on 20-22 July 2004. The agenda is presented below. .

The IASB will hold its July meeting at its offices, 30 Cannon Street, London, United Kingdom, on 20-22 July 2004. The agenda is presented below.

AGENDA OF THE IASB MEETING 20-22 JULY 2004

New – US Reporting newsletter for non-US based companies

16 Jul 2004

Here's a great new resource from Deloitte's Global Offerings Services group (GOs) for non-US companies that must report in the United States.

GOs comprises a global team of practitioners assisting non-US companies and non-US practice office engagement teams in applying US GAAP and International Financial Reporting Standards and in complying with the SEC's financial reporting rules. GOs has recently begun publishing a US Reporting Newsletter for Non-US Based Companies. We are adding these to IASPlus. Click to download the current issue – (PDF 381k). Past issues are available on the United States Page. We will announce each new edition here.

Deloitte comment letter on proposed IFRS 3 scope amendments

16 Jul 2004

Deloitte has submitted a (PDF 20k) on the IASB's exposure draft of Proposed Amendments to IFRS 3 – Combinations by Contract Alone or Involving Mutual Entities.

Our view:

We strongly disagree with the proposed amendments and the issuance of any standard arising from this Exposure Draft. The proposed amendments create an additional form of purchase accounting with different rules than those for other business combinations. We believe the proposals constitute an unsuitable short-term solution and believe it would be more appropriate to leave the standard unchanged until such time as adequate research into, and resolution of, the accounting issues created by such transactions is completed. We urge the Board to proceed with its project on 'fresh start accounting' as we consider exploration of this possibility may assist in the identification of conceptually robust solutions to this issue.

Testimony at IASCF Tokyo hearing has been posted

16 Jul 2004

The Constitution Review Committee of the IASC Foundation held a public hearing in Tokyo on 13 July 2004. The prepared testimony has posted on IASB's Website. .

The Constitution Review Committee of the IASC Foundation held a public hearing in Tokyo on 13 July 2004. The prepared testimony has posted on IASB's Website.

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.