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Heads Up newsletter on rate regulation ED


Deloitte United States has published an issue of the Heads Up newsletter discussing the IASB Exposure Draft Rate-regulated Activities that was issued on 22 July 2009. The objective of the proposals is to establish whether and how assets and liabilities resulting from rate-regulated activities should be recognised and measured under IFRSs.

Comments are due 20 November 2009. Click to download Heads Up: IASB Proposes Guidance on Rate-Regulated Activities (PDF 106k).


IFRS insurance accounting newsletter


Deloitte (United Kingdom) has published the first edition of an Insurance Accounting Insight newsletter.

This issue sets out the issues and challenges to be considered by insurers' tax and accounting managers in light of recent developments in the formulation of the new accounting standard for insurance liabilities (IFRS 4 Phase II) and the Exposure Draft that proposes to change income tax accounting (IAS 12 Income Taxes). Click to download Issue 1 of the Insurance Accounting Insight Newsletter (PDF 88k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.


Updated EU IFRS endorsement report


The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments.

Click to download the Endorsement Status Report as of 29 July 2009 (PDF 130k). Currently, ten IASB pronouncements await endorsement for use in the European Union.


New Deloitte IFRS publication in Spanish


Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín de Actualización IAS Plus, Julio 2009: IASB emite propuestas relacionadas con el comentario de la administraciòn

Click for: You will find our resources in Spanish Here.

Audit firms from 86 countries are registered with PCAOB


The 2008 Annual Report of the US Public Company Accounting Oversight Board reports that nearly 900 non-US auditing firms in 86 countries were registered with the PCAOB by year-end 2008. Also, during 2008, the PCAOB conducted 50 non-US inspections of firms located in 19 countries.

Click to download 2008 Annual Report (PDF 794k).

We comment on proposed IFRIC 14 amendments


Deloitte has submitted comments on the IASB Exposure Draft ED/2009/4 Prepayments of a Minimum Funding Requirement (Proposed Amendments to IFRIC 14).

We recognise that the application of the requirements of IFRIC 14 to prepayments of a minimum funding requirement results in some cases in an accounting treatment that does not reflect the substance of the transaction. We agree that this unintended result needs to be addressed, and we believe that the solution proposed would address appropriately the issue that was brought to the attention of the Board (the so-called 'Swiss plans' issue). However, we are concerned that the IASB is adopting a piecemeal approach to addressing this problem and that the amendments proposed will result in additional ambiguities in the application of IFRIC 14 and inconsistent accounting treatments. As a result, we do not support the proposed modifications to IFRIC 14. We offer alternatives for the Board's consideration. Click to download Our Letter of Comment (PDF 50k). All past letters comment are Here.


We comment on IASB's derecognition exposure draft


Deloitte has submitted comments on the IASB Exposure Draft Derecognition - Proposed Amendments to IAS 39 and IFRS 7.

We support the objective of the ED to change the existing derecognition requirements in IAS 39 to a more robust model based on a single principle for derecognising financial assets. Overall, however, we do not support the model proposed in the ED; rather our preference is for a modified alternative approach that in some respects is a combination of the proposed approach and the alternative approach described in the appendix to the ED. Below is an excerpt from our letter. Click to download Our Letter of Comment (PDF 198k). All past letters comment are Here.

Our preferred approach is closer to the alternative approach with the significant difference that if a transferor retains control over certain rights to cash flows under the transferred asset that those cash flows are not included in the derecognition assessment, i.e. they continue to be recognised. A detailed description of our preferred model is contained in our response to Question 7, however, in summary:

  • We support a derecognition model based on control. However, our preference is that the assessment of whether the transferor has given up control of the asset should be performed from the perspective of the transferor, i.e. based on their ability to control the rights to cash flows under the asset, rather than as proposed in the ED that control by the transferor is assessed by determining what the transferee potentially may or may not do with the transferred asset.
  • If the transferor retains control over certain rights to cash flows but surrenders control over other rights to the cash flows of the transferred financial asset, the rights surrendered should be derecognised and the rights retained should continue to be recognised by the transferor. This compares to the ED where in many instances the ED would result in the transferor failing derecognition, thereby continuing to recognise the transferred asset when its involvement in the asset may be different to its original involvement, and may not meet the definition of an asset in the Framework or the definition of a financial asset in IAS 39. We struggle to see why the transferor should continue to recognise an asset as if it controls all the same rights to cash flows in the original asset when its rights have changed and some of its original rights are controlled by the transferee.
  • Where the entity transfers an asset and as part of the transfer arrangement retains an interest in the cash flows of the asset, the transferred asset that shall be assessed for derecognition should be the net interest in the cash flows that are transferred to the transferee. We believe this approach can apply to instances where the transferor retains a proportionate or disproportionate share in the interest in the cash flows of the transferred asset. We do not believe it is appropriate that the ED will have the effect of failed derecognition for all arrangements whereby the transferor retains a disproportionate share of cash flows in the asset.


US audit standard on quality review


The US Public Company Accounting Oversight Board has published a new auditing standard on engagement quality review.

Auditing Standard No 7 Engagement Quality Review provides a framework for the engagement quality reviewer to objectively evaluate the significant judgments made and related conclusions reached by the engagement team in forming an overall conclusion about the engagement. Click for:


US may require audit partners to sign report personally


The US Public Company Accounting Oversight Board has published a Concept Release inviting comment on whether to require the auditor with final responsibility for the audit personally to sign the audit report.

A similar requirement already exists in the European Union.
Click for PCAOB Release No. 2009-005, July 28, 2009


New Deloitte IFRS publication in Spanish


Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín de Actualización IAS Plus, Julio 2009: Borrador para discusión pública propone nueva orientación sobre la clasificación y medición de los instrumentos financieros.

Click to download:

You will find our resources in Spanish Here.


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