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December

DTT Worldwide Member Firms 2005 Review

31 Dec 2005

Deloitte Touche Tohmatsu (DTT) has released its 2005 worldwide member firm review, which reports aggregate member firm financial results for fiscal 2005 and also articulates a new strategic direction for DTT member firms.

The new strategic direction is intended to elevate all of its member firms' businesses to be the standard of excellence, thus strengthening their market differentiation. For fiscal 2005 DTT member firms had aggregate revenues of US$18.2 billion, a 10.9% increase over the US$16.4 billion reported last year. This marks the third consecutive year of double-digit growth from continuing operations. Fiscal 2005 also marked the 12th consecutive year that Deloitte member firms have posted aggregate revenue increases. Click for:

Public Sector Accounting Standards Board update

30 Dec 2005

We have posted the December 2005 issue of IPSASB Update.

The newsletter reports the decisions made at the November-December 2005 meeting of the International Public Sector Accounting Standards Board (IPSASB). The IPSASB replaced IFAC's Public Sector Committee (PSC) in November 2004. It develops standards for accounting and financial reporting by national, regional, and local governments and related governmental agencies. Those standards are generally based on IFRSs, and profit-oriented government business enterprises are required to comply directly with IFRSs. The IPSASB's current work programme includes an ongoing project on 'Convergence with International Financial Reporting Standards (IFRSs) issued by the IASB'. One IPSASB convergence issue relates to IFRIC's project on accounting for Service Concessions (public-private partnerships). Because IFRIC's draft Interpretations do not address accounting by grantors of service concessions, the IPSASB will work with national standard setters to explore the potential for coordinating national and international guidance on accounting by public sector entities involved in service concession arrangements. Click:

Survey of pension plan accounting assumptions

29 Dec 2005

Watson Wyatt Worldwide has published 2005 Global Survey of Accounting Assumptions for Defined Benefit Plans.

The report contains 2004 pension assumption data for 356 companies in 25 countries. 82% of the survey participants report under FAS 87 Employers' Accounting for Pensions; 11% under IAS 19 Employee Benefits; 6% under FRS 17 Retirement Benefits (UK and Ireland); and the remaining 1% percent under other national standards. The US retirement plan data on FAS 87 assumptions is derived from information reported in corporate annual reports. The non-US information was collected using a survey form. The report includes tables showing by country, among other things:
  • Background economic data - Bond yields and CPI+.
  • Discount rates are used to calculate the present value of pension obligations and the service and interest cost portion of pension expense.
  • Expected rates of return on assets.
  • Salary increase assumptions.
  • Spread between the average discount rate and salary increase by country.
  • Estimated social security increase, in those countries where the plan formula takes into account social security.
  • Estimated pension increases, in those countries where either pensions are required to increase or there is a substantive commitment to provide increases.
  • Whether pension assets are measured at 'market value' or 'market-related value' (the latter reflecting a smoothing of the value of assets over a period up to five years).
  • Average asset allocation.
  • Funded status based on projected benefits and also accumulated benefits.
The report may be purchased from www.watsonwyatt.com then click 'Research' then 'Research Reports'.

Search begins for new IAASB chairperson

28 Dec 2005

The International Federation of Accountants has begun a search for a new full-time chairperson of the International Auditing and Assurance Standards Board effective 1 January 2007. The current chairman, John Kellas, has decided not to seek reappointment when his term ends on 31 December 2006. Click for IFAC Announcement (PDF 82k).

Nominations are sought by 15 February 2006.

New Accounting Roundup newsletter

26 Dec 2005

Deloitte (USA) has published the newsletter (PDF 244k).

This issue covers the following accounting and financial reporting developments:
  • FASB Statements 123(R) Share-Based Payment; 153 Exchanges of Nonmonetary Assets; 152 Accounting for Real Estate Time-Sharing Transactions; and 151 Inventory Costs.
  • FASB proposed FSPs: FIN 46(R)-b and EITF 85-24-a.
  • Developments at the GASB, AICPA, SEC, PCAOB, IASB, and IFRIC.
Past issues of Accounting Roundup can be found Here.

Upcoming IASB working group meetings

26 Dec 2005

The following meetings are scheduled for January: 9-10 January 2006 Financial Instruments Working Group 12-13 January 2006 Insurance Working Group 30-31 January 2006 Working Group on Small and Medium-sized Entities All of the meetings are in London.

Agendas are or will be posted on the IASB Website Meetings Diary.

IAS 39 amendment fully adopted in Europe

24 Dec 2005

The European Commission has published the amendment of IAS 39 for Cash Flow Hedge Accounting of Forecast Intragroup Transactions in the Official Journal of the European Union, making it fully endorsed for use in Europe.

Click for (PDF 44k).

Agenda project pages updated

24 Dec 2005

We have updated the following agenda project pages to reflect the discussions and decisions at the December 2005 meeting of the International Accounting Standards Board: Accounting Standards for Small and Medium-sized Entities Conceptual Framework Fair Value Measurement Financial Instruments Puttable at Fair Value Insurance Contracts Joint Ventures Short-term Convergence – Income Taxes .

We have updated the following agenda project pages to reflect the discussions and decisions at the December 2005 meeting of the International Accounting Standards Board:

China moves toward adoption of ISAs

23 Dec 2005

The Chinese Auditing Standards Board (CASB) and the International Auditing and Assurance Standards Board (IAASB) have released a joint statement in which the CASB states its intention to converge Chinese auditing standards with the IAASB's International Standards on Auditing (ISAs).

To date the CASB has adopted 26 Chinese auditing standards. Seventeen exposure drafts are currently outstanding, and five more will be issued soon. The CASB has made amendments to some of the ISAs and also has issued Chinese standards to deal with matters not covered in the ISAs. In the joint statement, the Ministry of Finance states its intention to "eliminate, over time, as the environment in China changes, those differences between Chinese auditing standards and the ISAs that still exist". Click to (PDF 987k).

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