These model financial statements were developed to illustrate the typical financial statement presentation and disclosures that are required of a company with subsidiaries and associates, presenting its consolidated financial statements under IFRSs for 2005 (not a first-time adopter, for which special requirements apply under IFRS 1). You will find the English language version Here.

In general, we favour having a 'fast-track' process to deal with issues for which the words in a standard do not properly convey the Board's intentions. We recommend that additional guidance be provided so that issues that require considerable time and thought are not treated as 'technical corrections', and we express concern about the likely time it will take for processing the corrections and what the appropriate accounting should be in the meantime. Here is IASB's Proposed Technical Corrections Policy (PDF 39k).

The new regulations result from the introduction of IFRSs in the United Kingdom and relate, among other things, to summary financial statements, the operating and financial review, adjustments of corresponding amounts, and distribution provisions for investment companies. You will find all Past UK iGAAP Newsletters and Alerts in a special section of our United Kingdom page.

The IASB has a similar body – its Analyst Representative Group (ARG). The ARG meets three times a year with five members of the IASB to provide the views of professional investors on financial reporting issues. The 'Chairman's Page' in the July 2005 issue of Insight, the IASB's quarterly newsletter (available to subscribers on the IASB's Website), contains a comprehensive description of the ARG and a list of its 15 members.

You will find past issues Here. Issues covered in the September 2005 edition include:

• Issue No. 04-13 Accounting for Purchases and Sales of Inventory With the Same Counterparty*
• Issue No. 05-1 Accounting for the Conversion of an Instrument That Becomes Convertible Only Upon the Issuer's Exercise of a Call Option
• Issue No. 05-7 Accounting for Modifications to Conversion Options Embedded in Debt Securities*
• Issue No. 05-8 Income Tax Consequences of Issuing Convertible Debt With a Beneficial Conversion Feature*
• Sale of Held-to-Maturity Securities and Other Hurricane Katrina Related Accounting Guidance

* Final Consensus Reached

The newsletter covers special issues relating to application of IFRSs in the United Kingdom, as well as a more general quarterly IASB update. You will find all Past UK iGAAP Newsletters and Alerts in a special section of our United Kingdom page.

IFRIC 6 considers the appropriate trigger for recognition of an obligation to contribute to the costs of disposing of waste equipment based on the entity's share of the market in a measurement period. The Interpretation is effective for annual periods beginning on or after 1 December 2005. You will find past issues of all IAS Plus Newsletters Here.

As a result of these changes, the choices available and some of the implementation considerations encountered by Australian entities will differ somewhat compared to their international counterparts, despite the fact that Australian companies applying A-IFRS will generally be able to make an unreserved statement of compliance with IFRS.

The amendments will:

• Establish a system for public oversight of the auditing profession and for cooperation between Member States' authorities.
• Require application of International Standards on Auditing (ISAs) in European auditing. ISAs are issued by the International Auditing and Assurance Standards Board of IFAC. The EC press release announcing the Parliamentary vote said "adoption of these standards will be subject to strict conditions such as their quality and whether they are conducive to the European public good" – conditions similar to those required for IFRSs under the EU Accounting Regulation.
• Create an Audit Regulatory Committee to complement the revised legislation and allow the speedy adoption of necessary implementing measures.
• Require rotation, every seven years, of the key audit partner/statutory auditor. However, compulsory rotation of audit firms was rejected.
• Provide a basis for effective and balanced co-operation between regulators in the EU and with regulators in third countries, such as the US Public Company Accounting Oversight Board (PCAOB).
• Improve the independence of auditors by requiring listed companies to set up an audit committee (or a similar body) with clear functions to perform.

Parliament also asked the Commission to present an impact study on current national auditor liability rules and an analysis on the possible limitations of the financial liability in the auditing profession. Approval by ECOFIN is required before the revisions come into force, after which Member States will have two years to implement the provisions. Click for EC Press Release (PDF 22k). You will find all of our European Accounting News Here.

 

McDonough, the first Chairman of the US Public Company Accounting Oversight Board, has announced that he will step down not later than 30 November 2005. Click for (PDF 16k).