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. Please upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

August

IAS 39 and IFRS 4 amended for guarantee contracts

18 Aug 2005

The IASB has amended the scope of IAS 39 'Financial Instruments: Recognition and Measurement' to include financial guarantee contracts issued.

However, if an issuer of financial guarantee contracts has previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting applicable to insurance contracts, the issuer may elect to apply either IAS 39 or IFRS 4 Insurance Contracts to such financial guarantee contracts.

Some details:

  • A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due
  • Under IAS 39, financial guarantee contracts are initially recognised at fair value and are subsequently measured at the greater of (a) the amount determined in accordance with IAS 37 and (b) the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18
  • The issuer may make the IAS 39 or IFRS 4 election contract by contract, but the election for each contract is irrevocable
  • The amendments to IAS 39 and IFRS 4 are effective for annual periods beginning on or after 1 January 2006, with earlier application encouraged.
Click for IASB Press Release (PDF 57k).

 

IASB amends IAS 1 to add capital disclosures

18 Aug 2005

As part of its project to develop IFRS 7 Financial Instruments: Disclosures (see story above), the IASB decided also to amend IAS 1 Presentation of Financial Statements to add requirements for disclosures of: The entity's objectives, policies and processes for managing capital. Quantitative data about what the entity regards as capital. Whether the entity has complied with any capital requirements. If it has not complied, the consequences of such non-compliance. These disclosure requirements apply to all entities, effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged.

Illustrative examples are added to IAS 1 as guidance.

IFRSs are permitted for all companies in Belize

17 Aug 2005

We have updated our Table Summarising the Use of IFRSs to reflect the status of IFRSs in Belize.

Belize does not have a domestic stock exchange. The Institute of Chartered Accountants of Belize allows all domestic companies to use IFRSs as the basis for preparing their financial statements, or they may choose other internationally accepted standards (particularly US GAAP or Canadian GAAP).

IFRSs are permitted for all companies in Vanuatu

16 Aug 2005

We have updated our Table Summarising the Use of IFRSs to reflect the status of IFRSs in Vanuatu.

Vanuatu does not have a stock exchange. All domestic companies are permitted to use IFRSs as the basis for preparing their financial statements.

Hong Kong standards update seminar

11 Aug 2005

We have posted the presentation slides from a seminar on Implementing Hong Kong Financial Reporting Standards (HKFRSs) conducted by Deloitte (China) on 8 August 2005 (repeated on 10 August 2005).

Speakers at the seminar were Stephen Taylor, head of our Hong Kong IFRS Centre of Excellence, Paul Pacter, and Chew Ping Teo. Because Hong Kong standards are identical to IFRSs except for some effective date and transition differences, the slides from this seminar (417 in all) may be of interest globally. Click to (PDF 1,054k). The full text of HKFRSs may be found on the Hong Kong Institute of CPAs Website. See also our story of 9 August 2005 about a new book on implementing HKFRSs.

Implications of adopting IFRSs on practice

10 Aug 2005

Andreas Barckow, Deloitte's national IFRS leader for Germany, spoke on the Implications of EU Adoption of IFRSs on Practice at the International Accounting Section luncheon at the annual meeting of the American Accounting Association on 8 August 2005. Click to Download Andreas's Presentation (PDF 258k). .

Andreas Barckow, Deloitte's national IFRS leader for Germany, spoke on the Implications of EU Adoption of IFRSs on Practice at the International Accounting Section luncheon at the annual meeting of the American Accounting Association on 8 August 2005. Click to Download Andreas's Presentation (PDF 258k).

UK debate: fair presentation vs true and fair

09 Aug 2005

The United Kingdom Financial Reporting Council (FRC) has analysed the implications of new accounting and auditing standards for the 'true and fair view' and auditors' responsibilities.

The introduction of IFRSs for listed companies and new UK auditing standards based on IAASB Standards have replaced 'true and fair view' with 'fair presentation' as the over-arching test that financial statements should satisfy. Based on its analysis, the FRC has concluded that while the new standards will result in changes to the format and content of both company accounts and audit reports:
  • the concept of the 'true and fair view' remains a cornerstone of financial reporting and auditing in the UK;
  • there has been no substantive change in the objectives of an audit and the nature of auditors' responsibilities; and
  • the need for professional judgement remains central to the work of preparers of accounts and auditors in the UK.
The FRC is inviting comments on both its analysis of the current UK accounting and auditing frameworks and how they should evolve in the future. Click to download (PDF 99k). Response deadline is 1 November 2005.

Time for a rethink on IFRSs?

09 Aug 2005

In an article in the July 2005 issue of Company Director magazine, Chris Biermann, senior audit partner, and Frank Betkowski, client director, with Deloitte (Australia) ask whether it's Time for a Rethink on IFRSs? in Australia.

Australia has been adopting national 'equivalents' of IFRSs, with some accounting options removed, disclosures added, and guidance for applying the standards in the public sector. These standards apply to all but the smallest entities in Australia.

"The current situation is an 'almost there' outcome for Australia. We strive for the holy grail of 'IFRS convergence', but have done so in a way that causes difficulties for truly global organisations and forces standards applicable to the top end of town across the board."

Click to (PDF 433k).

New Global Offerings Services newsletter

09 Aug 2005

We have posted the (PDF 382k).

Global Offerings Services is a global team of Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. Past GOs Newsletters are Here.

On 12 April 2005, the US Securities and Exchange Commission adopted its final rule First-time Application of International Financial Reporting Standards (IFRS). Subsequently, several implementation questions have arisen. To promote consistency in applying the SEC rule and reducing uncertainties foreign private issuers may face during the transition year, the AICPA International Practices Task Force developed a series of frequently asked questions based on discussions with the SEC staff. The SEC staff has indicated that it does not object to the views expressed herein. An appendix to the July 2005 GOS Newsletter contains the full text of the Q&As.;

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.