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January

Notes from day one of January 2007 IASB meeting

24 Jan 2007

The International Accounting Standards Board held its January 2007 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 23-25 January 2007.

We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting on our January 2007 IASB Meeting Page.

Notes from day two of January 2007 IASB meeting

24 Jan 2007

The International Accounting Standards Board held its January 2007 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 23-25 January 2007.

We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting on our January 2007 IASB Meeting Page.

Comment deadline on fair value DP extended

24 Jan 2007

The IASB has decided to extend the comment deadline on its Discussion Paper Fair Value Measurements to Friday, 4 May 2007. The deadline had been 2 April 2007. Click for More Information about the Fair Value Measurements Project.

The deadline had been 2 April 2007. Click for More Information about the Fair Value Measurements Project. You can download the Discussion Paper without charge during the comment period from the IASB website 'Open to Comment' Page.

IFRS preparers and auditors sought for IFRIC

24 Jan 2007

The Trustees of the IASC Foundation have invited applications from suitable candidates to fill four vacancies on the International Financial Reporting Interpretations Committee (IFRIC).

The Trustees are seeking two individuals with senior experience with an international accounting firm and two individuals from the corporate community who are responsible for the preparation of financial accounts according to IFRSs. They would serve for a term expiring on 30 June 2010, with eligibility for reappointment. Replies are requested by 9 March 2007. Click for Press Release (PDF 19k).

Report recommends US recognition of IFRSs

24 Jan 2007

A study commissioned by political leaders in New York City suggests that New York is in danger of losing its status as the world financial centre within ten years without a major shift in regulation and policy.

The study warns that New York financial markets are becoming stifled by stringent regulations and high litigation risks and are in danger of losing businesses and high-skilled workers to overseas competitors. The report identifies eight high-priority goals as a 'national agenda' – including recognition of International Financial Reporting Standards. Click to Download the Full Report (PDF 1,756k):

Recommendations for a National Agenda

Critically important near-term priorities

  • 1. Provide clearer guidance for implementing the Sarbanes-Oxley Act
  • 2. Implement securities litigation reform
  • 3. Develop a shared vision for financial services and a set of supporting regulatory principles

Initiatives to level the playing field

  • 4. Ease restrictions facing skilled non-US professional workers
  • 5. Recognize IFRS without reconciliation and promote the convergence of accounting and auditing standards
  • 6. Protect US global competitiveness in implementing Basel II

Important longer-term national priorities

  • 7. Form a National Commission on Financial Market Competitiveness
  • 8. Modernize financial services charters

Recommendation 5

Recognize IFRS without reconciliation and promote the convergence of accounting and auditing standards. The SEC should consider recognizing International Financial Reporting Standards (IFRS) without requiring foreign companies listing in the US to reconcile to US Generally Accepted Accounting Principles (GAAP). Similarly, the PCAOB should work with other national and international bodies towards a single set of global audit standards. Meanwhile, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) should continue – and, if possible, accelerate – current efforts towards the convergence of global accounting standards, aiming for a 'best-of-both' approach that balances materiality with the need to inform investors and other users of publicly reported financial information.

The accelerated convergence of two high-quality accounting standards will reduce regulatory compliance costs without undermining investor protection or impairing market information. The harmonization of auditing rules, provided that better standards win out, will similarly lower auditing costs for most public companies without reducing the quality of the statements produced.

11 revised public sector accounting standards

24 Jan 2007

The International Public Sector Accounting Standards Board (IPSASB) has issued revised standards to increase the clarity and usability of International Public Sector Accounting Standards (IPSASs).

The 11 revised accrual basis IPSASs, which will be effective for periods beginning on or after 1 January 2008, are:
  • IPSAS 1 Presentation of Financial Statements
  • IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors
  • IPSAS 4 The Effects of Changes in Foreign Exchange Rates
  • IPSAS 6 Consolidated and Separate Financial Statements
  • IPSAS 7 Investments in Associates
  • IPSAS 8 Interests in Joint Ventures
  • IPSAS 12 Inventories
  • IPSAS 13 Leases
  • IPSAS 14 Events After the Reporting Date
  • IPSAS 16 Investment Property
  • IPSAS 17 Property, Plant and Equipment
The IPSASB has also issued a revised Preface to IPSASs clarifying, among other things, that all paragraphs in IPSASs have equal authority. The revised IPSASs may be downloaded without charge from IFAC's Website. They will also be included in the 2007 edition of the Handbook of International Public Sector Accounting Pronouncements. Click for IPSASB Press Release (PDF 77k).

Robert Herz reappointed as FASB Chairman

24 Jan 2007

The Trustees of the Financial Accounting Foundation have reappointed Robert H Herz as Chairman of the US Financial Accounting Standards Board for a second five-year term that begins 1 July 2007.

Before becoming FASB Chairman in 2002, Mr Herz was a member of the International Accounting Standards Board. He is both a US Certified Public Accountant and a UK Chartered Accountant. Click for Press Release (PDF 24k).

Over 1,000,000 e-learning downloads from IAS Plus

23 Jan 2007

On 22 January 2007, we achieved the milestone of one million downloads of Deloitte IFRS e-learning modules from IAS Plus.

Deloitte's IFRS e-learning was launched at the end of January 2004. Downloaders come from nearly 160 countries and include audit firms, accounting bodies, regulators, educational institutions, and many of the world's leading companies. In many cases, these organisations have chosen the Deloitte materials to be their primary source of IFRS learning. Many of the downloaded modules have multiple users because organisations are permitted to install them on their own servers for the internal use of their employees or students. In addition, millions of additional modules have been completed online and offline by Deloitte staff. You can always access IFRS e-learning without charge by clicking on the light bulb icon on the IAS Plus home page.

Accounting Roundup – 2006 Year in Review

23 Jan 2007

We have posted the 2006 Year in Review Special Edition of Accounting Roundup published by Deloitte & Touche LLP (USA).

This 53-page newsletter (PDF 434k) summarises the final accounting and auditing guidance issued by the FASB, IASB, GASB, EITF, SEC, PCAOB, and AICPA throughout the year. Links to all issues of Accounting Roundup are Here.

PCAOB report on auditors' responsibilities for fraud detection

23 Jan 2007

The US Public Company Accounting Oversight Board (PCAOB) has published a report of its Observations on Auditors' Implementation of PCAOB Standards Relating to Auditors' Responsibilities with Respect to Fraud.

Based on the findings of PCAOB inspections of audit firms, the report discusses aspects of procedures relevant to an auditor's consideration of fraud. The discussion is organised around the following topics:
  • Auditor's Overall Approach to the Detection of Financial Fraud
  • Brainstorming Sessions and Fraud-Related Inquiries
  • Auditor's Response to Fraud Risk Factors
  • Financial Statement Misstatements
  • Risk of Management Override of Controls
  • Other Areas to Improve Fraud Detection
Click for Full Report (PDF 82k).

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