The IPSASB develops standards for accounting and financial reporting by national, regional and local governments and related governmental agencies. Those standards, known as International Public Sector Accounting Standards (or IPSAS) are generally based on IFRSs, and profit-oriented government business enterprises are required to comply directly with IFRSs. We have posted the April 2005 issue of IPSASB Update, the first issue of IFAC's public sector newsletter since the reorganisation of the PSC into the IPSASB. The newsletter reports the decisions made at the IPSASB's March 2005 meeting and includes a review of the IPSASB's current work programme. Click:

• Download IPSASB Update April 2005 (PDF 168k)
• More Information about the IPSASB, including links for downloading all earlier editions of the Update newsletter published by the PSC.

Agenda details for the two-day meeting can be found Here.

Under that plan, the success of a wide range of Internal Market initiatives is being evaluated. Regulation EC 1606/2002 (the 'IAS Regulation') is scheduled for review in 2007.

During the first quarter of 2005, accounting standard-setters and accounting regulators issued a number of final and proposed FASB Interpretations, FSPs, EITF consensuses, SEC rules, PCAOB rules, IFRSs, etc. affecting accounting, financial reporting, and corporate governance. Accounting Roundup: 1st Quarter in Review–2005, presents brief descriptions of those pronouncements, as well as certain other regulatory and professional developments in accounting and financial reporting. The articles included were primarily drawn from issues of the Accounting Roundup newsletters published in the first quarter of 2005 and have been updated when appropriate. You will find past issues Here.

Under FAS 123R, registrants would have been required to implement the standard as of the beginning of the first interim or annual period that begins after 15 June 2005 (after 15 December 2005 for small businesses). For a calendar year-end company, this would have meant initial adoption of FAS 123R in their third quarter 2005 reports.

The Commission's new rule allows companies to implement FAS 123R at the beginning of their next financial year that begins after 15 June 2005 (15 December 2005 for small businesses). An SEC registrant other than a small business with a 30 June 2005 year-end, however, must comply with FAS 123R starting with its interim financial statements for the quarter beginning 1 July 2005. The Commission's new rule does not change the accounting required by FAS 123R – only the dates for compliance with the standard. FAS 123R, like IFRS 2, requires companies to recognise the fair value of stock options given to employees as compensation expense. IFRS 2 went into effect on 1 January 2005. Click for (PDF 29k).

 

This advanced level of knowledge is deeper than that expected of other professional accountants. The proposals are set out in an exposure draft, Competence Requirements for Audit Professionals (PDF 128k). The ED also would require individuals to gain a period of relevant practical experience (normally a minimum of three years) before having substantial involvement in a financial audit assignment. For audits of financial statements in specific industries (such as banking and finance, extractive industries, and insurance) and specific environments (such as transnational audits), the proposed standard would require that the audit professional possess professional knowledge and experience relevant to those environments or industries. Comment deadline is 15 July 2005. Click for Press Release (PDF 67k).

The amendment also specifies that if the hedge of a forecast intragroup transaction qualifies for cash flow hedge accounting, any gain or loss that is recognised directly in equity in accordance with the hedge accounting rules in IAS 39 must be reclassified into profit or loss in the same period or periods during which the foreign currency risk of the hedged transaction affects consolidated profit or loss.

The amendment is effective 1 January 2006, although earlier application is encouraged. This amendment removes a difference with US GAAP that was created when IAS 39 was amended in December 2003, because that amendment did not permit hedge accounting for forecast intragroup transactions.

Click for Press Release (PDF 55k).

 

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The ED sets out, for consultation, the ASB's views on its future role, including its roles in:

contributing to the development and implementation IFRSs, influencing EU policy on accounting standards, including the endorsement of IFRSs, achieving convergence of UK accounting standards with IFRSs, and providing guidance on applying IFRSs in the absence of guidance from IFRIC.

Comments on the Exposure Draft are invited by 15 September 2005. Click to download the (PDF 20k). You can Download the Exposure Draft from the UK ASB website (PDF 169k).

The IPSASB (formerly known as the Public Sector Committee) develops accounting standards for financial reporting by governments and other public sector entities. Nominations are requested by 31 May 2005. Click for More Information.