August

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).

 

Summary of IFRS for SMEs in German

25 Aug 2009

Deloitte Germany has published a Praxis-Forum Alert! newsletter on the new IFRS for SMEs from a German perspective.

The newsletter not only explains the new standard (chapters include background, issues deemed irrelevant for SMEs, simplifications, and transition) but also focuses on Germany-specific questions. The newsletter notes that the IFRS for SMEs is not legally effective in Germany and also that German Act to Modernise the Accounting Law (BilMoG) has just been published which might mean that taking over the IFRS for SMEs is less probable. It draws the conclusion that taking over the new standard might be desirable especially from the viewpoint of German SMEs with foreign subsidiaries. Click to Download the Newsletter (PDF 98k, German language).

 

ED on employee benefits discount rate

21 Aug 2009

The International Accounting Standards Board has published for public comment proposals to amend the discount rate for measuring employee benefits.

IAS 19 Employee Benefits requires an entity to determine the rate used to discount employee benefits with reference to market yields on high quality corporate bonds. However, when there is no deep market in corporate bonds, an entity is required to use market yields on government bonds instead.

The global financial crisis has led to a widening of the spread between yields on corporate bonds and yields on government bonds. As a result, entities with similar employee benefit obligations may report them at very different amounts.

To address the issue expeditiously, the IASB proposes to eliminate the requirement to use yields on government bonds. Instead, entities would estimate the yield on high quality corporate bonds. If adopted, the amendments would ensure that the comparability of financial statements is maintained across jurisdictions, regardless of whether there is a deep market for high quality corporate bonds.

In view of the urgency of the issue and the limited scope of the proposals the IASB has set a shortened period for comments on the exposure draft -- comments are due by 30 September 2009. The IASB intends to permit entities to adopt the amendments that arise from this exposure draft in their December 2009 financial statements.

Click for Press Release (PDF 99k).

 

Heads Up newsletter on financial instruments

20 Aug 2009

Deloitte United States has published an issue of Heads Up discussing the FASB's progress on its financial instruments standards.

Deloitte IFRS for SMEs newsletter in Spanish

18 Aug 2009

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

We have now posted No 6:
  • Bulletin No. 6 (18 August 2009) addresses the requirements for financial instruments in the IFRS for SMEs. Click to Download Bulletin 6 (PDF 176k).
We have many resources in Spanish Here.

 

We comment on four IFRIC tentative agenda decisions

17 Aug 2009

Deloitte has submitted comments on four IFRIC tentative decisions not to add an item to its agenda.

In all cases, we agree with IFRIC's proposed decision. In the following case we make additional recommendations to the IFRIC staff about how best to explain the reasons for the decision:
  • Measurement of non-controlling interest in a business combination.
Click to download a ZIP File of Our Letters (ZIP 76k).

 

New country page for Malawi

15 Aug 2009

We have created a new country page for Malawi.

In Malawi, all the companies that have public accountability are required to apply full IFRSs. A company has public accountability if:
  • it is a listed company or is in the process of listing with the Malawi Stock Exchange or any other recognised stock exchange. The listing can either be for the company's equity or debt.
  • its articles provide for unrestricted transfer of shares or it is a Public Company in terms of the Malawi Companies Act 1984
  • it is permitted by its articles to offer shares to the public
  • it holds assets in a fiduciary capacity for a broad group of outsiders, such as a bank, an insurance entity, securities dealer/broker, pension fund, or mutual fund
  • it is a corporation or company that is owned by the public through the Government for example statutory corporations, also known as 'parastatals'
  • it is has a legal requirement to publish general purpose financial statements in any public media
  • it is a material subsidiary of an entity with public accountability
Links to all of our jurisdiction pages are Here.

 

Interview with Tom Jones

15 Aug 2009

The cover story of the July 2009 CPA Journal – published by the New York State Society of CPAs – is titled: Is the US Ready to Seal the Deal on IFRS? The story includes comprehensive interviews with FASB Chairman Robert H Herz, former IASB Vice Chairman Tom Jones, and IASC Foundation Trustee Samuel A DiPiazza Jr.

We are grateful to The CPA Journal for giving IAS Plus permission to post the interview with Tom Jones. Click to:

 

SEC approves PCAOB rules on audit firm reporting

15 Aug 2009

The US SEC has given final approval to new rules adopted by the Public Company Accounting Oversight Board that require reporting by registered public accounting firms starting 12 October 2009. The rules implement a provision of the Sarbanes-Oxley Act of 2002 and constitute the first reporting obligations imposed on registered firms by the PCAOB.

Under the new rules:
  • Certain events that occur on or after the 12 October 2009 effective date must be reported within 30 days by a registered firm in a special report on PCAOB Form 3.
  • Registered firms must file annual reports on Form 2, with the first annual reports being due June 30, 2010. Going forward, all firms that are registered with the Board as of 31 March of a particular year must, by 30 June of that year, file an annual report covering the 12-month period ending 31 March.
Click for Announcement of New PCAOB Rules (PDF 38k).

 

Bankers concerned about pace, direction of standard-setting

14 Aug 2009

The American Bankers Association has released a white paper expressing concern about The Current Pace and Direction of Accounting Standard Setting.

The paper notes that while the IASB and the FASB are working on many similar projects, including financial instruments, they are moving toward 'different solutions and at different speeds, which may make international convergence impossible'.

The rapid paces at which both organizations are working, as well as the directions in which they are heading, are causing some to question whether there is due process in evaluating these important issues. Some bankers also question whether such efforts are driven by a search for simplicity, transparency, and accuracy or by an appetite to expand fair value accounting, no matter the implications.

Click to view The Current Pace and Direction of Accounting Standard Setting (PDF 266k).

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