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March

IASB issues three new and three revised standards

31 Mar 2004

The International Accounting Standards Board has issued three new International Financial Reporting Standards – on business combinations, insurance, and asset disposals – and has issued three revised International Accounting Standards, including the finalised macro hedging amendment to IAS 39.

These are briefly noted in the table below.  We will post more detailed summaries shortly.  IASB subscribers will be able to download the new pronouncements from IASB's Website.

 

New IFRSs

IFRS 3 Business Combinations, replacing IAS 22

  • All business combinations are accounted for using the purchase method
  • Pooling of interests is prohibited
  • Goodwill may not be amortised but must be tested for impairment at least annually
  • Post-combination restructuring costs are not accrued as liabilities at the time of the acquisition.
  • Press Release (PDF 60k).

IFRS 4 Insurance Contracts

  • Insurers are exempted from applying the IASB Framework and certain existing IFRSs
  • Catastrophe reserves and equalisation provisions are prohibited
  • Requires a test for the adequacy of recognised insurance liabilities and impairment test for reinsurance assets
  • Insurance liabilities may not be offset against related reinsurance assets
  • Accounting policy changes are restricted
  • New disclosures are required
  • Press Release (PDF 32k).

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, replacing IAS 35

  • Assets held for sale are measured at the lower of carrying amount and fair value less costs to sell
  • Such assets are not depreciated
  • A major line of business or area of geographical operations must be classified as discontinued when its assets are classified as held for sale
  • Requirements are substantively the same as US FASB Statement 144
  • Press Release (PDF 32k).
Revised IASs

IAS 36 Impairment of Assets

  • The amendments to IAS 36 relate to adoption of IFRS 3 (see press release above) and are not a comprehensive revision of IAS 36

IAS 38 Intangible Assets

  • The amendments to IAS 38 relate to adoption of IFRS 3 (see press release above) and are not a comprehensive revision of IAS 38

IAS 39 Financial Instruments: Recognition and Measurement

  • This amendment incorporates new provisions that permit, in certain cases, fair value hedge accounting for a portfolio hedge of interest rate risk (macro hedging)
  • Press Release (PDF 43k).

Change of dates for IASB May 2004 meeting

31 Mar 2004

The IASB's May Board meeting will be held on 19-21 May 2004 (Monday to Wednesday) rather than 21-23 May. .

The IASB's May Board meeting will be held on 19-21 May 2004 (Monday to Wednesday) rather than 21-23 May.

FASB will issue its stock options exposure draft this week

30 Mar 2004

The US Financial Accounting Standards Board has announced that it will post its exposure draft, Share-Based Payment, to its Website "early in the week of March 29".

The FASB's proposals are expected to be largely the same as those in IASB IFRS 2, which was issued last month. IFRS 2 requires that all share-based payment transactions must be recognised in the financial statements, using a fair value measurement basis. An expense is recognised when the goods or services received are consumed. The same recognition and measurement standards apply to both public and non-public companies. In the United States, currently, FASB Statement 123 allows companies to choose either to recognise the fair value of stock options and other share-based payment as expense or to disclose those fair values in the notes.

UK consultation on use of IFRS by unlisted companies

30 Mar 2004

The United Kingdom Department of Trade and Industry has released a consultation document Modernisation of Accounting Directives/IAS Infrastructure (PDF 655k).

DTI is seeking input on proposed changes to the UK 1985 Companies Act that would allow companies that are not already required by European law to follow IFRSs to choose IFRSs instead of UK GAAP in preparing their financial statements. Companies choosing the IFRS option would be able to reverse it only in limited circumstances. Parent companies would be required to ensure consistency of choice within the group unless there are good reasons against it.

New Accounting Roundup newsletter

30 Mar 2004

We have posted the 29 March 2004 edition of (PDF 150k) 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 (including the 17-19 March 2004 IASB meeting). You will find past issues Here.

Project pages updated

29 Mar 2004

We have updated our summaries of the following IASB agenda projects to reflect the discussions at the Board's March 2004 meeting: .

Publications expected in the next several days

29 Mar 2004

The IASB's timetable calls for publication of the following documents by 31 March 2004. These will all be effective for adoptions of IFRSs in 2005: Amendments to IAS 39 Financial Instruments relating to macro hedging IFRS 3 Business Combinations (replacing IAS 22) Revisions to IAS 36 Impairment of Assets Revisions to IAS 38 Intangible Assets IFRS 4 Insurance Contracts IFRS 5 Asset Disposals .

The IASB's timetable calls for publication of the following documents by 31 March 2004. These will all be effective for adoptions of IFRSs in 2005:

  • Amendments to IAS 39 Financial Instruments relating to macro hedging
  • IFRS 3 Business Combinations (replacing IAS 22)
  • Revisions to IAS 36 Impairment of Assets
  • Revisions to IAS 38 Intangible Assets
  • IFRS 4 Insurance Contracts
  • IFRS 5 Asset Disposals

IFAC releases 2004 public sector standards handbook

28 Mar 2004

The International Federation of Accountants (IFAC) has published its Handbook of International Public Sector Accounting Pronouncements.

The Handbook includes all of the currently effective International Public Sector Accounting Standards and other pronouncements related to public sector accounting issued by IFAC as of 1 January 2004. It is available in print, PDF, and electronic formats. There is no charge to download the 2.8mb PDF version. Click for Information. IFAC also recently released its auditing and ethics handbook – see our news story of 25 March.

Swiss exchange backtracks on IFRS

27 Mar 2004

In August 2003, we Reported an announcement by the Swiss Exchange that starting in 2005 all listed companies would required to use either US GAAP or IFRS.

The Exchange has now announced an exception for companies that are not multinational: "From 2005, companies listed on the Swiss Exchange will have to carry out their accounting according to IFRS or US GAAP. Companies that are oriented towards their home markets in terms of financing may, however, continue to use the Swiss GAAP ARR standards which are tailored to the Swiss marketplace."

IFRIC project pages updated to reflect recent meeting

26 Mar 2004

We have updated the following Project Pages to reflect the deliberations at IFRIC's meeting on 23-24 March 2004: .

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.