Deloitte partners Stephen Ferris and Debbie Hankey discuss the amendments, some of the issues arising, and what executives need to do to prepare for the changes.

 

You can click here to Access the Corrections on IASB's website.

 

Our summary now includes over 130 issues:

• IAS 19 – Death in service benefits
• IAS 19 – Definition of plan assets
• IAS 19 – Pension promises based on performance hurdles
• IAS 23 – Foreign exchange and capitalisable borrowing costs
• IAS 39 – Scope of IAS 39 paragraph 2(g) (contracts between an acquirer and a vendor in a business combination to buy or sell an acquiree at a future date)

That story included a Link to On-Line Codification (free registration is required). Deloitte & Touche LLP (United States) has published the 18 January 2008 edition of the Heads Up Newsletter (PDF 94k) that has more information about the codification project.

 

In the interview, Sir David comments on some of the key events relating to IFRSs in 2007, including:

• eliminating the IFRS reconciliation in the United States
• US consideration of allowing domestic companies to use IFRSs
• the recent ICAEW study that found widespread benefits of adoption of IFRSs in Europe
• progress on convergence with FASB
• success in engaging stakeholders in IASB's due process
• efforts to maintain the IASB 'brand' and ensure that assertions of compliance with IFRSs are made only when there is compliance with full uo-to-date IFRSs

Click to download Accountancy's Interview with Sir David (PDF 202k). The article is copyrighted by Wolters Kluwer (UK) Ltd. We are grateful to Accountancy Magazine for giving us permission to post it on IAS Plus. Here's an excerpt:

An excerpt from the Accountancy interview with Sir David Tweedie: [Removing the SEC's reconciliation requirement for IFRS filers in the USA] is not the only feather in the cap for the Scot who is helping to make the vision of a global set of reporting standards a reality. Something of a watershed year, 2007 also saw the 108th country sign up to International Financial Reporting Standards. And more are queuing up behind – Canada, Israel, Chile, Japan are waiting in the wings. "We reckon by about 2011 there'll be 150 – all the major economies", he announces triumphantly. Not only that, but the world's largest capital market, the US, is on the verge of coming on board – also by 2011, hopes Tweedie. "Six years ago, when we started, if someone said, 'Describe where you'll be in 2007', I wouldn't have described this. This is much, much better than we thought, and it's happened much, much faster – and that's indicative of the markets and globalisation in general."

 

The new requirements are effective for reporting periods beginning on or after 1 January 2009. Click for Press Release (PDF 99k).

 

• IAS 18 – Real Estate Sales
• IAS 21 – Hedges of a Net Investment in a Foreign Operation

 

IFRIC D23 would apply to all types of distributions of non-cash assets with one exception. It would not apply to a distribution of an asset to another entity within the same consolidated group. IFRIC D23 proposes that all types of distributions of non-cash assets would be measured at the fair value of the assets distributed. Therefore:

IFRIC D23 proposes: When an entity incurs an obligation to distribute non-cash assets to its owners (a dividend payable), it should measure the obligation at the fair value of the non-cash assets. When an entity settles the dividend payable, it should recognise any difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable in profit or loss.

The Interpretation, if finalised, would apply prospectively, that is, to future distributions. The deadline for comments is 25 April 2008.

Click for:

• Press Release (PDF 44k).
• More Information about IFRIC D23

 

Customer contributions are transactions in which an entity – the 'access provider' – receives an asset it uses to provide access to an ongoing supply of goods or services to a customer or customers. In some cases, the access provider receives cash that it must use to acquire or construct the asset that will provide access.

 

IFRIC D24 proposes: All access providers (recipients of customer contributions) will be required to recognise contributed assets and revenue from providing access to a supply of goods or services over the period access is provided Those access providers that have previously not recognised contributed assets will now recognise increased property, plant, and equipment and revenue Those access providers that have previously recognised revenue immediately on the receipt of a contributed asset may now be required to recognise it over a longer period.

IFRIC D24 would be applied prospectively. The deadline for comments is 25 April 2008.

Click for:

• Press Release (49k)
• More Information about IFRIC D24