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August

Deloitte insurance accounting newsletter in Spanish

31 Aug 2009

Deloitte (Colombia) has published Insurance Accounting Insight No. 1 (Español) – ¿Qué deben estar pensando ahora las funciones de impuestos y de finanzas?.

This is a translation of the English-language Deloitte newsletter Insurance Accounting Insight No. 1 – What should tax and finance functions be thinking about now? (PDF 88k). These newsletters address the IASB's project to develop a comprehensive IFRS for insurance contracts.
Click to view Insurance Accounting Insight No. 1 (Español) – ¿Qué deben estar pensando ahora las funciones de impuestos y de finanzas? (PDF 214k).
We have many resources in Spanish Here.

 

IVSC proposal on valuing investment property

30 Aug 2009

The International Valuation Standards Council (IVSC) has invited comment on an exposure draft (ED) of a Proposed Guidance Note The Valuation of Investment Property under Construction.

Comments are requested by 31 October 2009. The guidance comes in response to a change in the scope of IAS 40 Investment Property that was made by the IASB in May 2008 as part of its Annual Improvements Project. The scope of IAS 40 was broadened, effective January 2009, to include property under construction or development for future use as an investment property. Such property previously fell within the scope of IAS 16. As a result, entities reporting under IFRSs now have to account for investment property under construction in the same way as other investment property. The IVSC ED is available on IVSC's website: www.ivsc.org. Click for IVSC Press Release (PDF 15k).

Heads Up on fair value of liabilities

30 Aug 2009

Deloitte United States has published an issue of Heads Up discussing new FASB guidance on measuring the fair value of liabilities.

The guidance was issued in the form of an Accounting Standards Update to Section 820 of the FASB Codification, which was formerly FAS 157 Fair Value Measurements. ASC 820 requires that the fair value of liabilities be measured under the assumption that the liability is transferred to a market participant (that is, the liability to the counterparty is not settled, but continues). In practice, however, many liabilities contain restrictions preventing their transfer and few liabilities are transferred to another party. FASB's new guidance amends ASC 820 to permit an entity to determine the fair value of a liability by using the perspective of an investor that holds the related obligation as an asset. Therefore, the ASU clarifies that the quoted price for the identical liability, when traded as an asset in an active market, is a 'Level 1' fair value measurement for that liability when no adjustment to the quoted price is required. In the absence of a Level 1 measurement, an entity must use one or more of the following valuation techniques to estimate fair value:
  • A valuation technique that uses a quoted price:
    • Quoted price of an identical liability when traded as an asset.
    • Quoted price of a similar liability or of a similar liability when traded as an asset.
  • Another valuation technique (for instance, a market approach or an income approach), including one of the following:
    • A technique based on the amount an entity would pay to transfer the identical liability.
    • A technique based on the amount an entity would receive to enter into an identical liability.
The new guidance is effective for the first reporting period (including interim periods) beginning after issuance. Click to download FASB Issues Guidance on Measuring Fair Value of Liabilities (PDF 114k)

 

CESR publishes summaries of IFRS enforcement decisions

29 Aug 2009

The Committee of European Securities Regulators (CESR) has published its sixth batch of extracts from its confidential database of enforcement decisions taken by EU national enforcers of financial information.

From time to time, CESR publishes extracts of selected decisions as a source of information to foster appropriate and consistent application of IFRSs in the EU. Topics covered in batch #6 of CESR's extracts:
  • Impairment of Available-for-Sale Equity Instruments
  • Accounting Policies for Impairment of Available-for-Sale Financial Assets
  • Impairment of Available-for-Sale Financial Assets
  • Cash Flow Statements
  • Classification and Valuation of Written Puts on Minority Interests
  • Disclosure of Key Management Personnel Compensation and Related Party Transactions with Key Management
  • Contingent Liabilities
  • Disclosures Regarding Share Capital
Click to download this and earlier decision summaries:

 

James L Kroeker named Chief Accountant at US SEC

29 Aug 2009

James L Kroeker has been appointed as Chief Accountant of the US Securities and Exchange Commission.

In that capacity, Mr Kroeker will oversee accounting interpretations, professional practice issues, and international accounting matters. He joined the SEC as Deputy Chief Accountant in February 2007 from Deloitte and Touche LLP, where he had been a partner in the firm's National Office Accounting Services Group. He also served as a Practice Fellow at the Financial Accounting Standards Board. Click for SEC Press Release (PDF 29k).

 

Comparison of IFRSs and Netherlands GAAP

29 Aug 2009

The Deloitte IFRS Centre of Excellence in The Netherlands has published the second edition of IFRSs and NL GAAP: A Pocket Comparison.

This 18-page booklet sets out some of the key differences between IFRSs and Dutch GAAP for annual periods beginning on or after 1 January 2009. It also includes new and revised IFRSs issued before 31 May 2009 that are not yet effective for annual periods beginning on or after 1 January 2009. Click to download IFRSs and NL GAAP: A Pocket Comparison (PDF 183k).

 

Basel Committee principles for revising IAS 39

28 Aug 2009

The Basel Committee on Banking Supervision has published a set of high level guiding principles to assist the IASB in addressing issues related to provisioning, fair value measurement, and related disclosures.

In releasing the principles the Basel Committee said that "the principles will help it produce standards that improve the decision usefulness and relevance of financial reporting for key stakeholders, including prudential regulators. Moreover, the principles would ensure that accounting reforms address broader concerns about procyclicality and systemic risk." Click to Download the Basel Committee's Principles (PDF 20k). Here is an excerpt:

The new standard should:

  • (a) reflect the need for earlier recognition of loan losses to ensure robust provisions;
  • (b) recognise that fair value is not effective when markets became dislocated or are illiquid;
  • (c) permit reclassifications from the fair value to the amortised cost category; this should be allowed in rare circumstances following the occurrence of events having clearly led to a change in the business model;
  • (d) promote a level playing field across jurisdictions.

 

IFRS insurance accounting newsletter

28 Aug 2009

Deloitte (United Kingdom) has published the August 2009 issue of Insurance Accounting Newsletter.

This issue focuses on the differences in the views of the IASB and the FASB on the direction of a new comprehensive standard on accounting for insurance contracts. The title of the newsletter – Filing for divorce? – highlights the possibility that However, "two significant differences of opinion have emerged and there is a risk now that convergence between IFRS and US GAAP could be more difficult". Click to download Issue 7 of the Insurance Accounting Newsletter (PDF 173k).

 

Deloitte IFRS for SMEs newsletter in Spanish

27 Aug 2009

Deloitte (Colombia) is publishing a series of Spanish language bulletins about the new IFRS for SMEs.

We have now posted No 7:
  • Bulletin No. 7 (25 August 2009) addresses the principles for recognition and measurement of financial instruments in the IFRS for SMEs. Click to Download Bulletin 7 (PDF 215k).
We have many resources in Spanish Here.

 

ED on improvements to IFRSs

26 Aug 2009

As part of its annual improvements process, the IASB has invited comment on an exposure draft proposing improvements to eleven IFRSs.

The eleven pronouncements subject to proposed amendments are:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards
  • IFRS 3 Business Combinations
  • IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
  • IFRS 7 Financial Instruments: Disclosures
  • IAS 1 Presentation of Financial Statements
  • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
  • IAS 27 Consolidated and Separate Financial Statements
  • IAS 28 Investments in Associates
  • IAS 34 Interim Financial Reporting
  • IAS 40 Investment Property
  • IFRIC 13 Customer Loyalty Programmes

The proposed effective date for most of the amendments is for annual periods beginning on or after 1 January 2011, although entities would be permitted to adopt them earlier.

The proposed effective date for the amendments arising from IFRS 3 Business Combinations and the consequential amendments to the transition requirements of IAS 27 Consolidated and Separate Financial Statements (as amended in 2008) is 1 July 2010.

Comments on the exposure draft are due by 24 November 2009. Click for Press Release (PDF 100k).

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.