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November

11 IFRSs await EU endorsement

30 Nov 2009

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 27 November 2009 (PDF 136k). The latest update reflects several events of last week – the endorsement of the revised IFRS 1 and IFRIC 17 by the European Commission and the publication of IFRIC 19 and the amendments to IFRIC 14 by the IASB. The following 11 IASB pronouncements are awaiting European Commission endorsement for use in Europe:

Standards

Interpretations Amendments
You can always find the endorsement status report Here.

 

Michel Barnier to be new EU Internal Market Commissioner

29 Nov 2009

José Manuel Barroso, President of the European Commission, has announced that Michel Barnier of France will be the next European Commissioner for Internal Market and Services, succeeding Charlie McCreevy.

The Internal Market Commissioner has responsibility for policy and oversight of accounting and auditing matters within the European Union, including relations between the Commission and the IASB. The Commissioner is also responsible for supervising the market for financial services and regulation of banks. Mr Barnier, 58, is currently a member of the European Parliament and has served in various political positions in France, including Member of the French National Assembly, Minister of the Environment, Secretary of State for European Affairs, Foreign Minister, and Minister for Agriculture and Fisheries. From 1999 to 2004 he served as European Commissioner for Regional Policy in the Commission of Romano Prodi. The new Commission will have 27 members, including President Barroso, one from each Member State. It will take office early in 2010 (the Parliamentary confirmation vote is scheduled for 26 January) and will serve through 31 October 2014. Click for EC Press Release on the New Commission (PDF 134k).

Deloitte Canada IFRS transition newsletters

28 Nov 2009

Deloitte Canada has published the November 2009 issue of their Countdown IFRS transition newsletter, to discuss practical issues Canadian companies are facing in IFRS transition as well as to provide an update on recent IFRS events.

Articles in this issue include:
  • The 'Tax'-ing Route to IFRS
  • 'The Real Deal' – real issues and solutions on IFRS transition relating to Stock Compensation
  • Performance Measurement Under IFRS
  • Public Sector Government Business Enterprises Required to use IFRSs
  • Deferral of the Consolidation Project
  • Deloitte Publications and Events and How to Access Them
  • An Update on Current IFRS events – including various important EDs or Discussion Papers
Click below for: Related items:

IFRIC 19 on liability-equity swaps

27 Nov 2009

The International Financial Reporting Interpretations Committee has issued IFRIC Interpretation 19 'Extinguishing Liabilities with Equity Instruments' following its approval by the IASB.

The Interpretation applies when a debtor extinguishes a liability fully or partly by issuing equity instruments to the creditor. IFRIC's key conclusions in IFRIC 19:
  • If a debtor issues equity instruments to a creditor to extinguish all or part of a financial liability, those equity instruments are 'consideration paid' in accordance with IAS 39.41. Accordingly, the debtor should derecognise the financial liability fully or partly.
  • The debtor should measure the equity instruments issued to the creditor at fair value, unless fair value is not reliably determinable, in which case the equity instruments issued are measured at the fair value of the liability extinguished.
  • If only part of a liability is extinguished, the debtor must determine whether any part of the consideration paid relates to modification of the terms of the remaining liability. If it does, the debtor must allocate the fair value of the consideration paid between the liability extinguished and the liability retained.
  • The debtor recognises in profit or loss the difference between the carrying amount of the financial liability (or part) extinguished and the measurement of the equity instruments issued.
  • When only part of the liability is extinguished, the debtor must determine whether the terms of the remaining debt have been substantially modified (taking into account any portion of the consideration paid that was allocated to the remaining debt). If there has been a substantial modification, the debtor should account for an extinguishment of the old remaining liability and the recognition of a new liability (see IAS 39.40).
IFRIC 19 must be applied in annual periods beginning on or after 1 July 2010. Earlier application is permitted. It would be applied retrospectively from the beginning of the earliest comparative period presented. Click for:

 

Three Deloitte IFRS newsletters in Chinese

27 Nov 2009

Deloitte China has published the Chinese translations of three IAS Plus Update IFRS newsletters:

The Chinese newsletters are permanently available at Deloitte's CAS Plus Website.
All past English versions are on our Newsletters Page.

IFRIC 17 endorsed for use in Europe

27 Nov 2009

The European Commission has completed the process of endorsing, for use in Europe, the November 2008 restructured version of IFRIC 17 Distributions of Non-cash Assets to Owners.

Click for the Commission Regulation (EC) No 1142 (PDF 836k), the endorsement Regulation published in the Official Journal of the European Union on 26 November 2009.

IASB amends IFRIC 14

27 Nov 2009

On 26 November 2009, the IASB issued 'Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14)'.

The amendments correct an unintended consequence of IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

Without the amendments, in some circumstances entities are not permitted to recognise as an asset some voluntary prepayments for minimum funding contributions. This was not intended when IFRIC 14 was issued, and the amendments correct the problem.

The amendments are effective for annual periods beginning 1 January 2011, with earlier application permitted. The amendments must be applied retrospectively to the earliest comparative period presented. Click for IASB Press Release (PDF 101k).

 

IASB proposes disclosure relief under IFRS 1

27 Nov 2009

The IASB has issued an exposure draft (ED) proposing to amend IFRS 1 'First-time Adoption of IFRSs' to state that an entity need not provide the comparative prior-period information required by the March 2009 amendments to IFRS 7 'Improving Disclosures about Financial Instruments' for first-time adopters adopting before 1 January 2010.

As a result, IFRS 1, Appendix E, paragraph E1 will be amended as follows:

E1 A first-time adopter may apply the transitional provisions in paragraph 44G of IFRS 7 to the extent that the entity's first IFRS reporting period starts earlier than 1 January 2010.

The proposed limited exemption from comparative IFRS 7 disclosures for first-time adopters is consistent with the exemption permitted for early adopters of the March 2009 amendments to IFRS 7. Deadline for comments on the ED is 29 December 2009. Click for IASB Press Release (PDF 101k).

 

Stay Tuned Online – IFRS and UK GAAP update

27 Nov 2009

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRSs and other financial reporting issues.

Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation. The topics covered in the 26 November 2009 Stay Tuned Online IFRS and UK GAAP Update:
  • IFRS 9 Financial Instruments
  • ED/2009/12 Financial Instruments: Amortised Cost and Impairment
  • Classification of Rights Issues: amendment to IAS 32
  • IAS 24 Related Party Disclosures (revised 2009)
  • A round up of other UK reporting matters
  • Other IFRS developments and summaries for December 2009
To access the recording Click Here. There's a permanent link on our UK Country Page.

 

New Deloitte Guide to IFRS 1

27 Nov 2009

Deloitte's IFRS Global Office has published a revised Guide to IFRS 1 First-time Adoption of International Financial Reporting Standards.

The guide was first published in 2004 with the aim of providing first-time adopters with helpful insights for the application of IFRS 1. This second edition has the same objective. We have updated the content to reflect the lessons learned from the first major wave of IFRS adoption in 2005, as well as for the changes to IFRS 1 since 2004. We have structured the guide to provide users with an accessible reference manual:
  • An executive summary explains the most important features of IFRS 1;
  • Section 2 provides an overview of the requirements of the Standard;
  • Sections 3 and 4 cover the specific exceptions and exemptions from IFRS 1's general principle of retrospective application of IFRSs, focusing on key implementation issues;
  • Section 5 addresses other components of financial statements where implementation issues frequently arise in practice;
  • Section 6 sets out Q&As dealing with specific fact patterns that users may encounter in practice; and
  • Section 7 discusses some of the practical implementation decisions faced by first-time adopters.
Click for:

 

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