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Four revised International Standards on Auditing

15 Jan 2007

The International Auditing and Assurance Standards Board (IAASB) has issued the first four final International Standards on Auditing (ISAs) redrafted as part of its comprehensive program to enhance the clarity of its standards.

It has also approved amendments to the Preface to International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services. The Preface identifies the conventions to be used by the IAASB in drafting future ISAs and the obligations of auditors who follow those standards. The IAASB has issued the following four redrafted standards:
  • ISA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
  • ISA 300 Planning an Audit of Financial Statements
  • ISA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment
  • ISA 330 The Auditor's Responses to Assessed Risks
The four redrafted ISAs and the amended Preface were exposed for public comment in October 2005. The IAASB intends to have a common effective date for all redrafted ISAs, which will be determined as the IAASB's agenda progresses. It will not be earlier than 15 December 2008. The four ISAs and the Preface may be downloaded without charge from the IFAC Website. Click for IAASB Press Release (PDF 84k).

Philip Laskawy reappointed as IASCF chairman

15 Jan 2007

Philip Laskawy, who has been serving as interim Chairman of the Trustees of the IASC Foundation (IASCF) since May 2006, has agreed to remain as Chairman for a further twelve months until the end of 2007. In addition, Bertrand Collomb, Chairman of Lafarge, has accepted the newly-created position of Vice-Chairman of the Trustees for 2007. The IASCF oversees the operations of the IASB.

As Mr Laskawy will be retiring from the Trustees at the end of 2007, the Trustees have initiated a process to select a new Chairman during the year. The Trustees have indicated a preference for a European candidate with the relevant professional experience and commitment to the organisation's objectives. In addition, the IASC Foundation announced the following appointments as Trustees to fill vacancies resulting from Trustee retirements, with immediate effect:
  • David Sidwell, Chief Financial Officer, Morgan Stanley; former member of the IASB's Standards Advisory Council
  • Kees Storm, former Chairman, AEGON; Chairman of the Supervisory Board, KLM; member of the Supervisory Board, AEGON and PON Holdings; member of the Boards, Baxter International, InBev and Unilever; member of the IASB Standards Advisory Council
  • Paul Tellier, former President and CEO of Bombardier; former Clerk of the Privy Council and Secretary of the Cabinet, Canada
  • Jeff van Rooyen, Chief Executive, Uranus Investment Holdings, a broad-based Black Economic Empowerment company; former Vice Chairman, Executive Committee, International Organization of Securities Commissions (IOSCO); former CEO, South African Financial Services Board
Click for IASCF Press Release (PDF 86k). Complete List of IASCF Trustees.

Agenda for January 2007 IASB meeting

13 Jan 2007

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

Presented below is the agenda for the meeting.

23-25 January 2007, London

Tuesday 23 January 2007

Wednesday 24 January 2007

Thursday 25 January 2007

IASCF trustees to meet in Tokyo 18-19 January 2007

12 Jan 2007

The trustees of the International Accounting Standards Committee Foundation will meet on Thursday and Friday, 18 and 19 January 2007 in Tokyo at the offices of Keidanren Kaikan, Room 1002, 10th floor, 1-9-4 Otemachi, Chiyoda-ku.

A portion of the meeting on Thursday 18 January from 10:30am to 15:15pm is open to public observation:

Agenda, Public Portion of IASCF Meeting, 18 January 2007

  • Approval of Minutes
  • Briefing on IASB Projects
    • Financial Statement Presentation
    • Conceptual Framework
    • Insurance
    • Other work
  • Report of the SAC Chairman
  • IFRIC Due Process Handbook
  • Review of IASC Foundation Educational Activities
  • Update on Review of IASC Foundation's XBRL Activities

SEC updates Current Accounting and Disclosure Issues

11 Jan 2007

The Division of Corporation Finance of the US Securities and Exchange Commission has updated its publication on Current Accounting and Disclosure Issues.

The first section of the document is a review of recent and proposed rules and interpretations from the Commission. The second section is staff guidance and comments on current accounting and disclosure matters based on the Division's reviews of the filings of the 15,000 SEC registrants. Recent and proposed rules since December 2005 include:
  • Final Rules Regarding Executive Compensation
  • Employee Stock Options – Accounting and Valuation Issues
  • Quantifying Misstatements
  • Final Rules Regarding Use of Form S-8, Form 8-K, and Form 20-F by Public Shell Companies
  • Rules and Concept Release Regarding the Use of Tagged Data and Incentives to Voluntarily Submit XBRL Information
  • Accelerated Filer Definitions and Deadlines for Filing Periodic Reports
  • Management's Report on Internal Control over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports
  • Final Rule Regarding Tender Offer Best-Price Rule
  • Rule Proposal Related to Foreign Private Issuer Deregistration
  • Final Rule regarding IFRS First-time Adopters
  • Rule Proposals Regarding Internet Availability of Proxy Materials
  • Electronic Access to Comment and Response Letters and Notifications of Effectiveness
  • Recent Enforcement Actions Involving GAAP
  • Recent Enforcement Actions Involving MD&A
Click for the detailed table of contents, where there is also a permanent link to download the guidance document.


IPSASB issues standards on budget reporting

11 Jan 2007

The International Public Sector Accounting Standards Board (IPSASB) has released International Public Sector Accounting Standards (IPSASs) that identify disclosures to be made by governments and other public sector entities that make their approved budgets publicly available.

IPSAS 24 Presentation of Budget Information in Financial Statements applies to entities that adopt the accrual basis of financial reporting. In addition, the cash basis IPSAS Financial Reporting under the Cash Basis of Accounting has been updated to include both required and encouraged disclosures that apply to entities that adopt the cash basis of financial reporting. Both standards require that a comparison of budget and actual amounts for the reporting period be included in the financial statements. They also require explanations for material differences between the budget and actual amounts in the notes to the financial statements or in a separate report issued in conjunction with those statements. The two standards can be downloaded without charge from IFAC's Website. Click for Press Release (PDF 53k).

CESR - CEBS - CEIOPS joint work programme for 2007

11 Jan 2007

'Enforcement of IFRSs' is one of the strategic objectives of the three 'level three' regulatory committees of the European Union for 2007. The 3L3 groups are the Committee of European Securities Regulators (CESR), Committee of European Banking Supervisors (CEBS), and Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).

Click for 3L3 Work Programme for 2007 (PDF 49k).

Accounting Roundup – December 2006

10 Jan 2007

We have posted the December 2006 Edition of Accounting Roundup published by Deloitte & Touche LLP (USA).

Topics covered in this issue include:

FASB Developments

  • FSP on Accounting for Registration Payment Arrangements
  • Exposure Draft on Improving Disclosures for Derivatives and Hedging Activities
  • Proposed FSP on Statement 158
  • FASB Proposes Amendment to Interpretation 39
  • Tentative Guidance on Implementation Issue H17

GASB Developments

  • GASB Statement on Pollution Remediation Obligations
  • Exposure Draft on Accounting for Intangible Assets
  • Exposure Draft on Pension Plan Disclosures

AICPA Developments

  • TPAs on Investment Companies
  • TPA on Liquidated Damages
  • TPA on Income Taxes
  • TPAs on Effective Dates of a New Statement on Auditing Standards
  • Working Draft of TPA on Certain Equity-Related Financial Instruments
  • AICPA Issues Audit Risk Alerts
  • Proposed Statement on Standards for Accounting and Review Services
  • AICPA Hosts Annual Conference on SEC and PCAOB Developments

SEC Developments

  • Extension of Section 404 Compliance for Non-Accelerated Filers and Newly Public Companies
  • Amendment to Executive Compensation Disclosure Rules
  • Proposed Interpretive Guidance for Management to Improve Sarbanes-Oxley 404
  • Deregistration of Foreign Private Issuers
  • E-Proxy Rule Amendments
  • Proposed Rules for Investment Advisers and Accredited Investors
  • Proposed Rules for Implementation of Bank Broker Provisions
  • SEC Seeks Comments on Investment Company Guidance
  • SEC Updates Current Accounting and Disclosure Issues Document

PCAOB Developments

  • PCAOB Proposes New Auditing Standard and Other Related Proposals
  • PCAOB Amends Rule Relating to Inspection Frequency

International Developments

  • IASB and FASB Announce International Working Group on Lease Accounting

Other Developments

  • Revised Guidance Issued on the Allowance for Loan and Lease Losses

Click for December Issue (PDF 479k). You will find past issues of Accounting Roundup Here.

Heads Up newsletter - SEC and PCAOB update

09 Jan 2007

We have now posted a Special Issue of Deloitte's Heads Up Newsletter summarising new and proposed guidance issued in December 2006 by US Securities and Exchange Commission and the US Public Company Accounting Oversight Board.

Heads Upis  published by the National Office Accounting Standards and Communications Group of Deloitte & Touche LLP (United States):

In December, the SEC:

  • Proposed guidance for management to consider in the evaluation of internal control over financial reporting.
  • Postponed the dates by which non-accelerated filers and newly public companies must comply with the internal control reporting requirements of Section 404 of the Sarbanes-Oxley Act of 2002.
  • Amended the executive and director compensation disclosures to more closely align them with the requirements of FASB Statement No. 123(R), Share-Based Payment.

The PCAOB issued the following proposed guidance:

  • A proposed auditing standard on auditing internal control over financial reporting, which would replace PCAOB Auditing Standard No. 2.
  • A proposed auditing standard on auditors' considerations regarding using the work of others in an audit.
  • Proposed Rule 3525, Audit Committee Pre-approval of Services Related to Internal Control.
  • Proposed amendments to its interim auditing standards

Click for Special Edition (PDF 338k) and Past Issues.


CEBS work programme includes IFRS matters

06 Jan 2007

The Committee of European Banking Supervisors (CEBS) has adopted a work programme for 2007 that includes two initiatives directly related to IFRSs.

These are identified in the box below. The main orientation of the CEBS will continue to be promoting cooperation and convergence of supervisory practices in the operational implementation of the new framework for capital adequacy introduced by the Capital Requirements Directive (CRD). Click to download CEBS Work Programme 2007 (PDF 195k).

Monitoring of developments in accounting and auditing standards: CEBS will continue to monitor the developments in the area of international accounting and auditing standards and, if deemed necessary, provide input to the standard setting process.

Common reporting frameworks: CEBS will update on an ongoing basis its reporting frameworks and the related XBRL taxonomies, in order to accommodate any developments in international accounting standards changes required by the implementation of the CRD. A web-based facility, accessible to both supervisors and market participants, will be established to collect and address questions emerging in the implementation of the reporting frameworks.

Correction list for hyphenation

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