March

EFRAG letter recommending IFRIC 12 in Europe

25 Mar 2007

The European Financial Reporting Advisory Group, whose members hold sharply divided views on IFRIC 12 Service Concession Arrangements (see our news story of 13 February 2007), has submitted to the EC's Accounting Regulatory Committee its recommendation that IFRIC 12 be endorsed for use in Europe.

Click for EFRAG Letter (PDF 85k).

IASCF Trustees will meet 2-3 April 2007 in London

25 Mar 2007

The Trustees of the IASC Foundation, under which the IASB operates, will meet in London on 2 and 3 April 2007. The meeting will be held at the Crowne Plaza London - The City, 19 New Bridge Street, London.

The public portion of the meeting will be on 2 April 2007, with the following agenda:

Agenda, Public Portion of IASCF Trustees Meeting, London, 2 April 2007

  • 14.15 – 15.30 Discussion of Procedures Committee Issues
  • 15.30 – 16.30 Report from the IASB
  • 16.45 – 17.30 Report from the SAC Chairman

Auditor oversight discussions in Asia

25 Mar 2007

The International Forum of Independent Audit Regulators (IFIAR) met in Tokyo on 22 March 2007 to discuss topics relevant to cooperation in the oversight of public company auditors.

At the IFIAR meeting, Chairman Mark W Olson of the US Public Company Accounting Oversight Board announced that the PCAOB would accept the newly created organisation's invitation to become a full member. Click for PCAOB Press Release (PDF 84k). IFIAR was established in September 2006 by 18 independent audit regulatory organisations from around the world (see our news story of 18 September 2006).

Priorities in the EU Internal Market

25 Mar 2007

In a seech on priorities in the internal market, European Commissioner for Internal Market and Services Charlie McCreevy discussed progress on the SEC's 'roadmap' to eliminating the IFRS-US GAAP reconciliation and suggested a similar roadmap on auditing might be appropriate.

An excerpt (click for Full Text):

Accounting Accounting is a prime example of how close cooperation with our US partner is bearing fruit. The EU and the US are advancing on a roadmap for removal of reconciliation requirements based on the principle of equivalence. The Commission is working together with the US SEC towards removing the costly and unnecessary reconciliation requirements for IFRS and US GAAP. Earlier this month I met SEC Commissioner Christopher Cox and we took stock on the progress of the roadmap. I am pleased to confirm that we are well on track. We are both committed to further improving our regulatory cooperation.

Auditing Building the framework of a more open transatlantic market also calls for the EU and the US to work on cooperation in the audit field. Both sides have their own set of rules: the 2006 Statutory Audit Directive in the EU and the 2002 Sarbanes-Oxley Act in the US. Both sides want to ensure sound investor protection, balanced with giving our markets freedom to act. One key measure to achieve this objective is the role of independent watchdogs for the audit profession, what we call the public oversight systems. What we need now is to find ways to rely on each other in accomplishing our shared objective, so as to avoid costly and inefficient duplication of work. A system based on mutual trust would therefore exempt both sides from the burden of sending inspectors abroad.

Earlier this month PCAOB chairman Mark Olson and I agreed in Washington to launch roadmap discussions on equivalence of our respective auditing systems, in the same spirit as in accounting.

This does not require systems and standards to be identical but robust enough to ensure investor confidence. Robust enough for each of us to have confidence in each other.

iGAAP 2007 Financial Instruments is published

24 Mar 2007

Deloitte & Touche LLP (United Kingdom) has developed iGAAP 2007 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained (Third Edition), which has been published by CCH.

This publication is the authoritative guide for financial instruments accounting under IFRSs. The 2007 edition expands last year's edition with further interpretations, examples, discussions from the IASB and the IFRIC, updates on comparisons of IFRSs with US GAAP for financial instruments, as well as a new chapter on IFRS 7 Financial Instruments Disclosures including illustrative disclosures. iGAAP 2007 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained (628 pages, March 2007) can be purchased through CCH Online or by phone at +44 (0) 870 777 2906 or by email: customer.services@cch.co.uk.

Notes from day 3 of the March 2007 IASB meeting

23 Mar 2007

The International Accounting Standards Board held its March 2007 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 20-22 March 2007.

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the the meeting.

Notes from day 2 of the March 2007 IASB meeting

22 Mar 2007

The International Accounting Standards Board held its March 2007 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 20-22 March 2007.

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the the meeting.

EC accounting strategy for 2008 will focus on SMEs

21 Mar 2007

In a speech yesterday to the European Parliament's Legal Affairs Committee, Charlie McCreevy, the European Commissioner for Internal Market and Services, outlined the Commission's internal market policy strategy for 2008. He noted that the strategy focuses on three areas – patents, company law, and accounting and auditing – and that the accounting strategy focuses on SMEs.

Click for Commissioner McCreevy's Remarks  (PDF 83k). An excerpt:

It should not come as a surprise that we need to reduce the administrative burdens in the areas of company law, accounting and auditing. The basic features of the market have changed: new technologies, the introduction of the euro, enlargement, globalisation and demographic developments have dramatically affected the overall context of European integration and brought about considerable pressure to adapt. The legal environment has also evolved with the adoption of international standards in the field of accounting and auditing and the development of the jurisprudence of the Court of Justice....

In the field of accounting and auditing, we are focusing on the possibilities of reducing costs for SMEs. Of course, we need to keep improving the quality of accounting and auditing in the EU. However, the existing rules demand administrative work which companies, and particularly small and medium-sized ones, find sometimes unnecessarily burdensome. Our job is to reconcile these different interests in the best possible way.

IASB Chairman's thoughts on principle-based standards

21 Mar 2007

IASB Chairman Sir David Tweedie recently delivered the Ken Spencer Memorial Lecture at the University of Melbourne, Australia.

The title: 'Keep it simple, stupid!' Can global standards be principle-based? Here are a few of Sir David's observations:

The attributes of a good principle-based standard:

  • Is written in plain English
  • Is easily explained
  • Makes intuitive sense
  • Fairly presents the facts.

The changes that are necessary for principle-based standards to succeed:

  • Training changes
  • Greater user sophistication
  • No second-guessing by regulators
  • Don't ask for rules/interpretations
  • Support for careful judgement

Here are links to:

Notes from day 1 of the March 2007 IASB meeting

21 Mar 2007

The International Accounting Standards Board held its March 2007 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 20-22 March 2007.

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the the meeting.

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