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2006

New IASCF trustee list posted

07 Jan 2006

A new chairman and seven new trustees of the IASC Foundation took office on 1 January 2006. We have posted an Updated List of IASCF Trustees.

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

Financial Instruments Working Group meets next week

06 Jan 2006

The IASB's Financial Instruments Working Group will meet in London on Monday and Tuesday, 9 and 10 January 2006. Discussions on Monday 9 January are devoted to derecognition.

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.

Agenda for IFRIC meeting 12-13 January 2006

06 Jan 2006

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 12 January and Friday 13 January 2006. The agenda for the meeting is below: Thursday 12 January 2006 Introduction - Opening remarks; administrative matters; minutes of the December 2005 IFRIC meeting Hedging Inflation Risk - Presentation IFRIC D15 Reassessment of Embedded Derivatives – Staff proposal for a final Interpretation Review of Tentative Agenda Decision IFRS 6 Exploration for and Evaluation of Mineral Resources - Application of 'full cost method' Recommendations by Agenda Committee regarding requests for IFRIC agenda items: Separate financial statements issued before consolidated financial statements Liability/equity classification Service Concession Arrangements - Project plan; double recognition of revenue Friday 13 January 2006 (Morning Only) IFRIC Handbook – Staff proposals for a draft Handbook Customer Loyalty Programmes – Staff proposal for a draft Interpretation Recommendations by Agenda Committee regarding requests for IFRIC agenda items (continued from Thursday): IFRS 3 Business Combinations – Puts held by minority interests .

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 12 January and Friday 13 January 2006. The agenda for the meeting is below:

Thursday 12 January 2006

  • Introduction - Opening remarks; administrative matters; minutes of the December 2005 IFRIC meeting
  • Hedging Inflation Risk - Presentation
  • IFRIC D15 Reassessment of Embedded Derivatives – Staff proposal for a final Interpretation
  • Review of Tentative Agenda Decision
    • IFRS 6 Exploration for and Evaluation of Mineral Resources - Application of 'full cost method'
  • Recommendations by Agenda Committee regarding requests for IFRIC agenda items:
    • Separate financial statements issued before consolidated financial statements
    • Liability/equity classification
  • Service Concession Arrangements - Project plan; double recognition of revenue

Friday 13 January 2006 (Morning Only)

  • IFRIC Handbook – Staff proposals for a draft Handbook
  • Customer Loyalty Programmes – Staff proposal for a draft Interpretation
  • Recommendations by Agenda Committee regarding requests for IFRIC agenda items (continued from Thursday):
    • IFRS 3 Business Combinations – Puts held by minority interests

Proposed international audit standard on related parties

05 Jan 2006

The International Auditing and Assurance Standards Board has released for comment a proposed revision to International Standard on Auditing (ISA) 550 Related Parties.

The current standard requires the auditor to perform certain specified procedures. The proposed standard would extend current practice by requiring the auditor to obtain an understanding of the nature and business rationale of an entity's related party relationships and transactions sufficient to identify, assess, and respond to the risks of material misstatement resulting from them. It also places greater emphasis on the difficult task for the auditor of attempting to identify related party relationships and transactions not identified or disclosed by management. The revision also places new emphasis on evaluating the effects of related party relationships and transactions on the financial statements, even in circumstances where the financial reporting framework does not establish related party accounting or disclosure requirements. Comments on the exposure draft are due by 30 April 2006. Click for:

IASCF 'convergence conference' set for April

05 Jan 2006

The International Accounting Standards Committee (IASC) Foundation will host a two-day conference International Financial Reporting Standards–Implications of Convergence in Frankfurt on 6 and 7 April 2006. The conference has been designed as part of the IASC Foundation's education initiative to provide an opportunity for preparers, auditors, analysts and investors to exchange views and to discuss with standard-setters and regulators the IASB-FASB convergence programme.

The conference will also provide a forum for discussion of implementation issues. Click for Press Release (PDF 65k).

Reference to reporting framework in Europe

05 Jan 2006

The European Federation of Accountants (FEE) has urged the European accounting profession to use a standard reference to the financial reporting framework in the EU in their audit reports and in the basis of preparation note to financial statements of companies using 'endorsed' IFRSs.

FEE notes that the European Commission has adopted the following wording (reported in our news story of 23 December 2005): "in accordance with International Financial Reporting Standards as adopted by the EU" or "in accordance with IFRSs as adopted by the EU". FEE also urges that the following three disclosures be included:
  • It should be strongly encouraged to provide an explanation in the notes to the accounts as to how companies' accounting policies depart from full IFRS to enable investors to compare the results of companies within and outside the EU.
  • It should be encouraged that companies also state that they are in compliance with full IFRS (additional disclosure, not as the legal financial reporting framework).*
  • It should be strongly encouraged to provide an explanation of how companies are in compliance with 'International Financial Reporting Standards as adopted by the EU' or 'IFRSs as adopted by the EU' and full IFRS as issued by the IASB in cases where the two frameworks are recognised to be different.
*In this regard, paragraph 14 of IAS 1 Presentation of Financial Statements as endorsed for use in Europe states: "An entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes." Click for (PDF 157k).

Accounting Roundup – 2005 in review

03 Jan 2006

We have posted (PDF 693k), a newsletter published by Deloitte & Touche LLP (United States).

This 38-page edition summarises the final guidance issued by standard setters through November of 2005, with links to guidance finalised in December. Many of the items are effective or will be effective in the near future. For each item, there is a hyperlink within the PDF file to supporting information. The following items are included with respect to International Financial Reporting Standards:
  • SEC Rule, First-time Application of International Financial Reporting Standards
  • IFRS 7 Financial Instruments: Disclosures and Amendments to IAS 1 Presentation of Financial Statements: Capital Disclosures
  • IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
  • IFRIC 6 Liabilities Arising from Participating in a Specific Market: Waste Electrical and Electronic Equipment
  • Amendment to IAS 39 Financial Instruments: Recognition and Measurement – The Fair Value Option
  • Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Cash Flow Hedge Accounting of Forecast Intragroup Transactions
  • Amendment to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4 Insurance Contracts
  • Amendments to IFRS 1 First-time Adoption of IFRSs and IFRS 6 Exploration for and Evaluation of Mineral Resources
  • Withdrawal of IFRIC 3 Emission Rights
Here is the link to All Past Issues of Accounting Roundup.

Another record year for IAS Plus

01 Jan 2006

In 2005 we had over 1,200,000 visitors! Thank you for making us, once again, the #1 source on the Internet for information about international financial reporting.

We wish you a very happy new year.

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