Click for Deloitte's Preliminary and Unofficial Notes from the Meeting.

The exposure draft is designed to help professional accountants in profit, not-for-profit, and government organisations to address issues relating to the developing, monitoring, reinforcing, and reporting of a code of conduct. Comment deadline is 15 April 2006. Click to download:

• Exposure Draft (PDF 284k)
• Press Release (PDF 40k)

Under the option, any changes in fair value would be included in earnings. FASB's proposed 'fair value option' is similar to the one included in IAS 39 Financial Instruments: Recognition and Measurement. The intent of such an option is to reduce volatility in earnings caused by 'accounting mismatches' when different bases are used for measuring related financial instruments. The ED may be downloaded from FASB's Website. Comment deadline is 10 April 2006. Click for (PDF 12k).

We have updated our summary of the remaining differences between Singapore Financial Reporting Standards and International Financial Reporting Standards on our Singapore Page to reflect changes made by Singapore's Council on Corporate Disclosure and Governance (CCDG) in January 2006.

ASIC reviewed disclosures made in financial reports by 1,250 listed companies with balance dates between 30 June and 31 July 2005. ASIC found that "all entities reviewed had successfully provided the required disclosure of the impacts of AIFRSs by explaining the key differences in accounting practices they expected under AIFRSs".

• Only 19 of the companies reviewed concluded that there would be no material impact arising from the adoption of the new standards.
• About 700 of the companies provided disclosure of the quantitative impact for each point of key difference.
• A further 480 companies quantified some of the key differences.

AIFRSs apply to financial reporting periods from January 1, 2005. Click for (PDF 52k).

 

AIC 2 is immediately effective, with application for financial statements for periods ending on 31 December 2005 encouraged. AIC 2 covers those areas that were not addressed by the International Financial Reporting Interpretations Committee in IFRIC 6 Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment. Broadly described, the issues addressed in AIC 2 involve what constitutes the obligating event under IAS 37.17 for recognition of provisions for:

• Historical waste from private households.
• Historical waste from commercial users.
• New waste from private households.
• New waste from commercial users.

While the interpretation is written in the context of German law, some of the guidance may be relevant in other European jurisdictions as well. The interpretation is copyrighted by the Accounting Standards Committee of Germany. They have kindly given us permission to post both the (PDF 63k) and the (PDF 64k) on IASPlus.

The proposals would require most of this disclosure to be provided in plain English. The proposals also would modify the current reporting requirements of Form 8-K regarding compensation arrangements. Click for (PDF 80k).

CESR highlighted four specific situations where transparent disclosure will be particularly relevant for the 2005 annual financial statements because of first-time adoption of IFRSs:

Firstly, the endorsed IAS/IFRS themselves provide several options, in particular on first time adoption of IFRS, between two or more recognition methods and measurement bases. The standards themselves include specific disclosure requirements which have to be followed, notably on the use of options. Secondly, there are areas that are not currently specifically dealt with under IFRSs (e.g. accounting for service concession arrangements, emission rights, puts on minority interests). A transparent disclosure explaining the accounting treatment selected would provide meaningful information to the users of the financial statements (see IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, paragraph 10 and seq.). Thirdly, particular situations may arise where IAS/IFRS have not been fully endorsed for application in the EU. This is currently the case for some of the provisions of IAS 39 Financial Instruments: Recognition and Measurement that are directly related to the accounting treatment of portfolio hedging. These provisions have not been adopted for mandatory use in the EU pursuant to the Commission Regulation (EC) No 2086/2004 of 19 November 2004 (the so-called 'carve out' of IAS 39). It can therefore be expected that a number of companies will choose to apply the full version of IAS 39, while others may apply the amended standard endorsed by the EU. As it is likely that companies will use different accounting approaches in the area of hedge accounting and effectiveness, issuers should be transparent in explaining their policies and all the more so where the 'carve out' is used. Finally, there is always a time lag between the issue of IFRS by the IASB and their mandatory application in the EU as a result of the EU endorsement process. The European Commission recently informed Member States that Regulations endorsing IFRS published in the Official Journal and entering into force after the balance sheet date but before the date the financial statements are signed, can be used by companies (but they are not obliged to) where early application is permitted in the Regulation and the related IFRS.

Click for (PDF 104k).

Deloitte and Touche (Denmark) has published (IFRS Modelregnskab 2005) (PDF 537k).

Click to download Endorsement Letter (PDF 85k). EFRAG has also posted on its Website:

• A draft endorsement letter on the Adoption of an Amendment to IAS 21 - The Effects of Changes in Foreign Exchange Rates - Net Investment in a Foreign Operation (comments due 3 February 2006).
• Preliminary views regarding the IASB Discussion Paper Management Commentary (comments due 24 March 2006).