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January

IASB January meeting agenda - two days

16 Jan 2006

The International Accounting Standards Board will hold its Board monthly meeting at its offices in London on Tuesday and Wednesday, 24 and 25 January 2006. The agenda for the meeting is noted below.

The Board will meet only on the afternoons of those two days and will not meet on Thursday or Friday 26 or 27 January.

agenda.gif

24 and 25 January 2006, London

Tuesday 24 January 2006 (afternoon only)

  • Business Combinations II – analysis of comment letters on ED
  • Update from the Recent Financial Instruments and Insurance Working Group Meetings

Wednesday 25 January 2006 (afternoon only)

  • Short-term Convergence: Borrowing Costs – transition
  • Performance Reporting – segment A 'sweep issues'
  • Accounting standards for Small and Medium-sized Entities – staff will present to the Board a preliminary draft of major sections of an exposure draft
  • Earnings per Share – treasury stock method
  • IFRIC Update

Trustees seek Board member candidates

16 Jan 2006

The International Accounting Standards Committee Foundation is seeking applications for four full-time IASB Board member positions for terms beginning 1 July 2006. The terms of four IASB members will end on 30 June 2006 – Hans-Georg Bruns, Warren McGregor, Geoffrey Whittington, and Tatsumi Yamada.

All are eligible for reappointment, but Professor Whittington is not seeking reappointment. Board member qualifications are listed in the Annex of the IASC Foundation's Constitution. Successful new applicants will be asked to serve a five-year term and will be expected to reside in London, where the IASB is located. Interested candidates should send a cover letter and curriculum vitae by 28 February 2006 to Philip Laskawy, Chairman of the Nominating Committee, IASC Foundation, 30 Cannon Street, London EC4M 6XH or by email to Tom Seidenstein, Director of Operations, at tseidenstein@iasb.org. Click for IASCF Announcement (PDF 92k).

Singapore 2005 model financial statements

13 Jan 2006

Deloitte & Touche (Singapore) has published model financial statements and a presentation and disclosure checklist under Singapore Financial Reporting Standards for 2005: (PDF 1,034k, 74 pages) (PDF 1,032k, 137 pages) (PDF 867k, 207 pages) .

Deloitte & Touche (Singapore) has published model financial statements and a presentation and disclosure checklist under Singapore Financial Reporting Standards for 2005:

United Kingdom page updated

13 Jan 2006

We have updated our United Kingdom Page to reflect the activities of the Accounting Standards Board and Auditing Practices Board in the fourth quarter of 2005. The update notes that the European Commission has adopted Standard Wording for European companies to refer to compliance with IFRSs in audit reports and notes to the financial statements.

This wording differs slightly from the one published by the APB in Bulletin 2005/04 Auditor's Reports on Financial Statements in Great Britain and Northern Ireland. Both wordings are acceptable and the electronic versions of the two Bulletins will be amended to include the EC wording as an alternative by way of a footnote.

IFRIC Interpretation on scope of IFRS 2

12 Jan 2006

The International Financial Reporting Interpretations Committee (IFRIC) has issued a final Interpretation – IFRIC 8 'Scope of IFRS 2'.

IFRIC 8 clarifies that IFRS 2 Share-based Payment applies to arrangements where an entity makes share-based payments for apparently nil or inadequate consideration.

IFRIC 8 explains that, if the identifiable consideration given appears to be less than the fair value of the equity instruments granted or liability incurred, this situation typically indicates that other consideration has been or will be received. IFRS 2 therefore applies.

IFRIC 8 is effective for annual periods beginning on or after 1 May 2006. Earlier application is encouraged. Click for Press Release (PDF 59k).

 

IFRIC draft on interim financial reporting and impairment

12 Jan 2006

The International Financial Reporting Interpretations Committee (IFRIC) has released for public comment a draft Interpretation D18 'Interim Financial Reporting and Impairment'.

The proposed Interpretation would clarify the interaction between IAS 34 Interim Financial Reporting and two other standards, IAS 36 Impairment of Assets and IAS 39 Financial Instruments: Recognition and Measurement, and the effect of that interaction on subsequent interim and annual financial statements.

The proposed Interpretation clarifies that an entity cannot reverse an impairment loss recognised in a previous interim period in respect of goodwill, an investment in an equity instrument or a financial asset carried at cost.

Click for Press Release (PDF 53k).

 

EU bank regulators develop IFRS reporting framework

12 Jan 2006

The Committee of European Banking Supervisors (CEBS) has published guidelines establishing a standardised Framework for Consolidated Financial Reporting (FINREP) for credit institutions operating in the EU.

FINREP is designed for credit institutions that use International Financial Reporting Standards (IFRSs) for their published financial statements, and that have to provide similar information in the periodic 'prudential reports' they are required to submit to their supervisory authorities. "The introduction of international accounting and reporting standards provides an opportunity to converge and ultimately harmonise prudential reporting in Europe." The framework is not intended to cover all aspects of IFRSs; rather it focuses on information that is important or relevant for prudential purposes. FINREP is intended to enable credit institutions to use the same standardised data formats and data definitions for prudential reporting in all countries where the framework will be applied. CEBS advises the European Commission on banking policy issues, promotes convergence of supervisory practise across European Union, and fosters consistent application of EC banking legislation. Click to download:

Compliance with IFRSs in Australia and New Zealand

12 Jan 2006

Both Australia and New Zealand have been adopting 'equivalents' of IFRSs as their national financial reporting framework.

While audit reports will refer to Australian or New Zealand Equivalents of IFRSs, those standards are intended to result in financial statements that are fully IFRS compliant. Both countries have adopted paragraph 14 of IAS 1, which requires that:

An entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with IFRSs unless they comply with all the requirements of IFRSs.

The consolidated accounts of Australian and New Zealand entities that use their IFRS equivalents will include such an explicit and unreserved statement of IFRS compliance in the notes. Therefore, in our Table Summarising Global Use of IFRSs Australia and New Zealand are identified as 'IFRSs Required for All Domestic Listed Companies'.

Changes to financial reporting framework in Singapore

12 Jan 2006

In 2002, the Singapore government created the Council on Corporate Disclosure and Governance (CCDG) as the accounting standard setter for all companies incorporated in Singapore.

Since then, each year Deloitte & Touche (Singapore) has published a booklet about the recent Changes to The Financial Reporting Framework in Singapore. We have just posted the 2005 edition:

CCDG has now issued a set of accounting standards and interpretations that are almost identical to the current set of IFRSs, though some differences remain. You will find a list of those differences on our Singapore Page.

Canada approves plan for convergence with IFRSs

11 Jan 2006

Canada's Accounting Standards Board (AcSB) has ratified a new Strategic Plan for the Direction of Accounting Standards that will significantly affect the way financial reporting will be carried out in Canada in the future.

The AcSB will pursue separate strategies for three major categories of reporting entities: public companies, private businesses and not-for-profit organisations.

  • For public companies, the AcSB's objective is to move to a single set of globally accepted high-quality standards. The AcSB has concluded that this objective is best accomplished by converging Canadian GAAP with International Financial Reporting Standards (IFRSs) over a transitional period. Australia and the European Union have already adopted IFRS and other countries have convergence programs underway. The AcSB will develop and publish a detailed implementation plan for achieving convergence later this year. The AcSB expects that the transition period will take approximately five years, but the precise timing will depend on many factors, and will be continuously monitored throughout the process. At the end of that period, Canadian GAAP will cease to exist as a separate, distinct basis of financial reporting for public companies.
  • For private businesses, the AcSB has begun, as a matter of urgency, a comprehensive examination of their financial reporting needs and will determine the most appropriate model for meeting those needs.
  • For not-for-profit organisations, the AcSB will continue to apply those elements of GAAP for profit-oriented enterprises that are applicable to their circumstances, and develop other standards dealing with the special circumstances of the not-for-profit sector.

The AcSB recognizes that some Canadian public companies that have significant market followings in the United States might prefer to use US GAAP. The Canadian Securities Administrators already permit those Canadian public companies that are SEC registrants to use US GAAP instead of Canadian GAAP.

The AcSB expects to publish a final version of its strategic plan by 31 March 2006.

Click to view the Strategic Plan for the Direction of Accounting Standards (PDF 139k).

Correction list for hyphenation

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