November

New Global Offerings Services newsletter

02 Nov 2004

We have posted the (PDF 283k), which provides US reporting information for non-US based companies.

This issue covers recent EITF, SEC, and PCAOB activities and announces the availability of a US GAAP Compliance Checklist. There are also links to 15 recent Deloitte publications. You will find past issues of the GOS Newsletter Here.

New Accounting Roundup newsletter

02 Nov 2004

The (PDF 250k) is now available.

This newsletter is published by Deloitte (USA) and includes the latest news from FASB, GASB, SEC, PCAOB, AICPA, IASB, and IFRIC. You will find past issues of Accounting Roundup Here.

Framework for evaluating internal control deficiencies

02 Nov 2004

Nine large accounting firms, including Deloitte, have jointly issued A Framework for Evaluating Process/Transaction-Level Exceptions and Deficiencies for use in implementing Section 404 of the Sarbanes-Oxley Act.

While the framework is not endorsed by the Public Company Accounting Oversight Board (PCAOB), and it should be read in conjunction with PCAOB Auditing Standard No. 2 on internal control audits, companies may find it a useful reference as they implement the requirements of Section 404. Click to Download the Framework (PDF 80k).

New FEE paper on auditor independence

02 Nov 2004

The European Federation of Accountants (FEE) has published a 186-page paper outlining how to apply, in practice, the principles underlying the European Commission's Recommendation on auditor independence.

The EC Recommendation requires auditors to identify, consider, and document potential threats to their independence and to detail the safeguards that have been put in place to eliminate those threats. The FEE publication also provides a comparison of the requirements of the EC Recommendation with that of the independence section of the International Federation of Accountants (IFAC) Code of Ethics. Click to:

ARC to consider endorsing additional IFRSs

02 Nov 2004

The Accounting Regulatory Committee of the European Commission will meet in Brussels on 30 November 2004 to vote on recommendations to endorse certain new and improved IFRSs and IFRIC 1. The specific IFRSs to be considered are IASs 1, 2, 8, 10, 16, 17, 21, 24, 27, 28, 31, 32, 33, 36, 38, and 40, as well as IFRSs 2, 3, 4, and 5. The agenda also includes a Commission presentation on "the latest developments towards a solution on the fair value option and on the technical work on the interest margin hedge" (IAS 39).

Heads Up on unremitted foreign earnings

02 Nov 2004

The latest edition of the (PDF 103k) from Deloitte (USA) is of interest globally.

It is devoted to the American Jobs Creation Act of 2004, the first major broad-based restructuring of US business taxes since 1986. The Act gives multinational companies a limited, one-time tax incentive to repatriate up to 85% of their foreign earnings tax-free. Accounting implications may include:
  • A need to recognise deferred tax and tax expense in 2004 on the planned repatriation in 2005.
  • For companies that have provided deferred taxes on unremitted earnings, consideration of the 85% deduction likely will reduce the deferred tax liability.
  • The timing of recognising tax expense or benefit could be complicated by the Act's requirements to have specific plans for reinvesting the undistributed earnings.

Russia moves toward adopting IFRSs

01 Nov 2004

IFRSs moved a step closer in Russia last week when the Duma (parliament) gave preliminary approval to a bill requiring corporations with more than one subsidiary to publish financial statements that conform to International Financial Reporting Standards within six months of the end of their financial year.

All companies will still have to report unconsolidated results to Russian standards. Two additional votes of the Duma are required before the bill would become law. The bill as passed calls for companies to report under IFRSs as of 2004. It may be changed to a 2005 effective date before final adoption. Some large Russian companies already report under IFRSs. Others currently use US GAAP. The US GAAP companies will have until 2008 to switch to IFRSs.

 

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.