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April

Reminder about upcoming comment deadline

30 Apr 2007

We remind you that the deadline is Friday, 4 May 2007, for responding to the IASB Discussion Paper: Fair Value Measurements.

The Discussion Paper sets out the IASB's preliminary views on how to measure fair values when fair value measurement is already prescribed under existing IFRSs. It does not propose any extensions of the use of fair values. The DP is built around FASB's recently issued SFAS 157 Fair Value Measurements. SFAS 157 establishes a single definition of fair value together with a framework for measuring fair value for financial reports prepared in accordance with US GAAP.

CESR-SEC discuss IFRS-US GAAP and information sharing

30 Apr 2007

The heads of the US Securities and Exchange Commission and the Committee of European Securities Regulators (CESR) met on 27 April 2007 in Brussels to take stock of progress on the SEC and CESR Joint Financial Reporting Work Plan that was published in August 2006, and to discuss future collaboration.

The discussion focused on developments in the United States and the European Union with respect to IFRSs and US GAAP issues. The chairs of the SEC and CESR also agreed in principle, subject to final approval by their respective bodies, to a template for bilateral protocols between the SEC and each of CESR's member jurisdictions covering the confidential exchange of information regarding dual-listed issuers. Click for SEC Press Release (PDF 37k).

EU President Barroso speaks on EU/US convergence

28 Apr 2007

In a speech at the New York Stock Exchange yesterday, Jose Manuel Barroso, President of the European Commission, discussed transatlantic relations and next week's EU-US Summit in Washington.

Mr Barroso spoke of the need to address existing, unnecessary barriers posed by divergent regulations and to avoid the emergence of new ones. He referred specifically to Transatlantic accounting and auditing issues:

It is my hope that by 2009, we will jointly be in a position to recognise the equivalence of accounting standards between the EU and US. This will reduce costs and make it easier for companies to list themselves wherever they see fit.

It is my hope the EU and the US will quickly reach a point where we can rely on each other's auditing oversights' systems and avoid burdensome and costly duplicative work and even conflicts of law.

It is my hope that we will be able to look closely at how we regulate securities' markets in the EU and the US. We share the same goals: adequate investor protection and market integrity. If we find that these goals are effectively met on both sides of the Atlantic, we should reflect on the conditions that could allow the mutual recognition of our rules.

Click for Full Text (PDF 51k).

European Commission report on IASB/IASCF governance

28 Apr 2007

The European Commission has posted on its website a report on Governance Developments in the IASB and IASCF.

The report was submitted to the EU's Economic and Financial Affairs Council (ECOFIN). The report acknowledges that "significant improvements have been made in the IASC/IASB governance structures", but also highlights the following "main areas where further improvement is desirable":
  • Firstly, concerning the governance structure of the IASCF/IASB, the Commission believes that further amendments would improve the accountability of the Board and of the Trustees to their constituents, in particular those jurisdictions which apply IFRS.
  • Secondly, as regards the IASB's due process with stakeholders, strengthened consultation procedures are necessary, in particular for IFRIC. In particular, the IASB should explain, preferably in writing, the reasons for not taking into account comments made by stakeholders. In addition, the credibility of standards would be further enhanced by impact assessment and field testing procedures.... [Also] the IASB could usefully intensify its informal liaison relationships with national standards setters and preparers....
  • Thirdly, on the issue of adequate representation of stakeholders in governing bodies of the IASCF/IASB, the composition of these bodies should ensure adequate representation and experience from countries and regions committed to use of IFRS.
Click for Full Report (PDF 49k).

Propuesta para un Proyecto de NIIF para las PyME

27 Apr 2007

The IASB has published the Spanish translation of the Exposure Draft of a Proposed International Financial Reporting Standard for Small and Medium-sized Entities – Propuesta para un Proyecto de NIIF para Pequeñas y Medianas Entidades.

Electronic copies of the Exposure Draft may be downloaded from IASB's Website (until the comment period closes). The ED, Implementation Guidance, and Basis for Conclusions have all been translated. Hard copies are available soon to purchase from the IASCF for £23 each. Comments are due by 1 October 2007. French and German translations are forthcoming.

European Parliament resolution opposing IFRS 8

27 Apr 2007

The Economic and Monetary Affairs Committee of the European Parliament has proposed a Parliamentary resolution that expresses significant concerns about the adoption of IFRS 8 Operating Segments in Europe.

The resolution also:
  • calls on the European Commission to urgently carry out an in-depth impact assessment before endorsing the standard; and
  • states that, should the Commission fail to carry out the assessment, Parliament will carry out its own impact assessment.

Among the Committee's concerns about IFRS 8 are the following:

  • Changing from IAS 14 to IFRS 8 is a move "from a regime which clearly defines how listed EU companies should define and report on segments to an approach that permits management itself to define operating segments as management finds suitable and which furthermore requires a lower level of disclosure".
  • IFRS 8 should, but does not, include a defined measure of segment profit or loss, as IAS 14 does.
  • IFRS 8 does not require companies to use IFRS measures in their disclosures about operating segments, which may have a negative impact on the comparability of financial information and thus may pose difficulties for users (for example, investors).
  • Adopting IFRS 8 would "import into EU law an alien standard [SFAS 131] without having conducted any impact assessment".
Click to download the Draft Resolution (PDF 89k) proposed by the Economic and Monetary Affairs Committee of the European Parliament. Voting on the resolution by was postponed until the Parliament's September meeting.

UK-US will share information on application of IFRSs

26 Apr 2007

The United Kingdom Financial Reporting Council (FRC), the US Securities and Exchange Commission (SEC), and the UK Financial Services Authority (FSA) have signed a protocol for implementing the Work Plan that was agreed in August 2006 between the SEC and the Committee of European Securities Regulators (CESR) for sharing information on the application of International Financial Reporting Standards by issuers listed in the UK and the US.

The staff of the FRC and the SEC will share, on a confidential basis, information on the application of IFRSs in the financial statements of issuers listed in the UK and registered with the SEC. The FRC is charged with reviewing issuers' published financial statements in the UK. Click for:

IFRSs in your Pocket 2007

25 Apr 2007

We have published the sixth edition of our popular guide to IFRSs – IFRSs In Your Pocket 2007.

This 100-page guide  includes information about:
  • IASB structure and contact details.
  • Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada.
  • Summaries of each IASB Standard (through IFRS 8 and the amendment to IAS 23) and Interpretation (through IFRIC 12), as well as the Framework and the Preface to IFRSs.
  • Background and tentative decisions on all current IASB projects.
  • IASC and IASB chronology.
  • Update on IFRS-US GAAP convergence.
  • Other useful IASB-related information.
We are pleased to grant permission for accounting educators and students to print copies of the PDF file for educational purposes. Please contact your local Deloitte practice office to request a printed copy. You will find Links to our Many Other IFRS Publications here.

US SEC announces next steps re IFRSs

25 Apr 2007

The United States Securities and Exchange Commission has announced two steps it intends to take relating to the acceptance of International Financial Reporting Standards (IFRSs).

  • The Commission plans to issue a Proposing Release this summer requesting comments on proposed changes to the Commission's rules to allow the use of IFRSs in financial reports filed by foreign private issuers registered with the Commission. Foreign private issuers would be given a choice between IFRSs and US GAAP. The proposal would address eliminating the current requirement that IFRS filers include a reconciliation to US GAAP amounts beginning in 2009.
  • In addition, the Commission plans a Concept Release relating to issues surrounding the possibility of treating US and foreign issuers similarly in this respect by also providing US issuers the alternative to use IFRSs.
Comments on both would be due in the autumn. Click for SEC Press Release (PDF 34k).

Notes from the joint IASB-FASB meeting April 2007

25 Apr 2007

The International Accounting Standards Board and the US Financial Accounting Standards Board held a joint meeting on Monday and Tuesday 23-24 April 2007 in London.

Click here for the Preliminary and Unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Boards reached agreement on a revised standard on business combinations.

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