Topics covered in this issue include:

FASB developments, including final FSPs on (a) fully benefit-responsive investment contracts and (b) concentrations of credit risk in loan products; and a proposed FSP on amortisation and impairment of acquired renewable intangible assets. GASB developments, including an Implementation Guide to Statement 44 on the Statistical Section. AICPA developments, including TPAs on application of SOP 03-3 on acquired loans and debt securities; SAS 102 and SSAE 13 on defining professional requirements; SAS 103 on audit documentation; and the AICPA's 2005 Annual Conference on SEC and PCAOB Developments. SEC developments, including amendment to accelerated filer definition and filing deadlines; an update of the SEC's Current Accounting and Disclosure Issues document; a proposed rule on internet availability of proxy materials; proposed amendments to the tender offer best-price rule; a proposed rule to ease delisting by foreign private issuers; and a request for comments on PCAOB Auditing Standard 4 on Reporting on Elimination of a Material Weakness. International developments, including amendment to IAS 21 on net investments in foreign operations; updated IASB guidance on implementing IFRS 4 Insurance Contracts; and summaries of recent IASB and IFRIC meetings.

You will find past issues of Accounting Roundup Here.

The Commission will also consider whether to propose amendments to require most of the disclosure in proxy and information statements to be provided in plain English. Click for (PDF 67k). The meeting will be Webcast.

We modified the earlier news story.

While the list is written primarily in a US reporting context, nearly all of the challenges on the list relate to the IASB as well, and the FEI commentary expressly refers to the IASB in its descriptions of several of them:

Stock Options – SFAS 123 and IFRS 2. Uncertain Tax Positions – FASB has proposed that a tax position recognised on the tax return must be probable of being sustained under audit prior to recognition in the financial statements, and the company must assume that it will be reviewed by the taxing authorities. IASB-FASB Income Tax Convergence Project. Business Combinations – joint IASB-FASB Project. Fair Value Measurements (FVM) – In January 2006, the FASB will discuss certain issues raised by external reviewers on the working draft of the final FVM Statement and the timing of the final FVM Statement. IASB is expected to Invite Comment on FASB's final standard. Materiality – Expected SEC Staff Accounting Bulletin that would provide guidance to companies on quantifying misstatements and assessing materiality from both a balance sheet and income statement perspective. XBRL – an IFRS Taxonomy has been developed. Earnings Per Share – FASB international convergence project. Conceptual Framework – joint IASB-FASB Project. Complexity – "concern and growing frustration over the complexity in current standard-setting". Pension Accounting – FASB project in response to the SEC's Off Balance Sheet study.

The meeting is open to public observation.

Qualifying entities may choose instead to use the former Philippines Accounting Standards that were in effect in December 2004. That option will be available for 2005 through 2007 unless revoked earlier. The SEC indicated that it is taking this action in recognition of the IASB's SME Project. The SEC adopted the IASB's draft criteria for distinguishing publicly accountable entities from non-publicly accountable – publicly accountable if (a) publicly listed, (b) holds assets in a fiduciary capacity, (c) public utility, or (d) economically significant. For Philippines purposes, economic significance means total assets over Php 250 million (approximately US$ 5 million) or total liabilities over Php 150 million in 2004. Click for (PDF 151k).

The Standards will be collectively referred to as New Zealand Equivalents to International Standards. The PPB notes that it may modify the International Standards "by making additions, deletions, or other amendments to the extent permitted by the IAASB's guidance for achieving international convergence with the International Standards...." All modifications will be clearly identified and subject to the PPB's due process. The PPB will issue exposure drafts inviting comment on the IAASB standards in 2006 and 2007. The final standards will be submitted to the NZICA Council for approval in 2007, with a single proposed effective date of 1 January 2008. Click for (PDF 128k).

The changes align regulatory reporting with IFRS reporting where appropriate. At the same time, the new requirements ensure that APRA continues to receive consistent and standardisd information to monitor prudential strength following the introduction of IFRSs. The new rules took effect from 31 December 2005. APRA has granted a six-week extension for filing the first reports under the new regime. Click for (PDF 67k). In an earlier news story Dated 1 December 2005, we outlined other APRA proposals relating to the adoption of IFRSs in Australia by deposit-taking institutions and general insurers. Those proposals address such issues as fair value measurement, employer sponsored defined benefit superannuation fund surpluses and deficits, and loan loss provisioning. Comments on that package are due by 16 January 2006. Link to APRA's Website.

One vacancy remains. Click here for More Info about the IASCF.

Discussions on Tuesday 10 January will focus on fair value measurement and day-one gains. The agenda is available on the IASB's Website. The meeting is open to public observation.