Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The IASB held its own meeting during the morning, followed by a joint meeting with the FASB in the afternoon.

 

To help boards and audit committees stay current on this important and evolving topic, Deloitte (United States) has published IFRS: What Should Boards and Audit Committees be Considering Now? It addresses key questions and includes some practical guidance and updates. Sections include:

• Foreword by Jim Quigley, Chief Executive Officer, Deloitte Touche Tohmatsu
• Where are we now?
• What are US companies doing today?
• What should boards and audit committees be considering?
• A practical 'Issues Guide' outlining some potential accounting differences between IFRS and US GAAP, as well as presenting questions the board and audit committee can raise with management

Click to download IFRS: What Should Boards and Audit Committees be Considering Now? (PDF 623k). Many other Deloitte IFRS publications are Here.

 

In other words, the amounts in those financial statements must be restated for changes in the general purchasing power of the reporting currency. For a number of years, the International Practices Task Force of the American Institute of CPAs has published unofficial guidance on the inflation status of countries that appear to be at or near the hyperinflation level. The AICPA (through its Center for Audit Quality) has just released CAQ Alert #2010-11 Monitoring Inflation Status of Certain Countries The Alert states the following view of the Task Force:

The following countries should continue to be considered highly inflationary as of 30 September 2009:

• Myanmar
• Zimbabwe

The following country should be considered highly inflationary for periods beginning on or after 1 December 2009:

• Venezuela

The following countries are on the Task Force's inflation 'watch list':

• Democratic Republic of Congo
• Ethiopia
• Guinea
• Iran
• Iraq
• Sao Tome and Principe
• Seychelles

Click to Download CAQ Alert #2010-11 (PDF 65k), which is copyright by Center for Audit Quality and posted on IAS Plus with their kind permission.

 

Concern for the potential implications of climate change is leading governments to consider policies and programs designed to reduce greenhouse gas emissions. Cap and trade programs are one option that is considered to be effective in creating a financial incentive for emissions reductions for large emitters in industrial sectors. The purpose of the paper is to present the key characteristics of greenhouse gas emissions cap and trade programs. A knowledge of cap and trade mechanisms is essential to understanding the impact on business, including carbon management, accounting, and tax implications.

The IASB's Emissions Trading Schemes Project

The IASB has on its agenda a project on Emissions Trading Schemes. The goal of that project, being conducted jointly with the US FASB, is to develop comprehensive guidance on the accounting for emissions trading schemes. The Board has decided tentatively that if an entity receives emission allowances free of charge from the government: The entity should recognise the allowances as assets and measure them initially at fair value. Because the entity incurs an obligation to reduce its emissions below the level represented by those allowances (ie its cap), the entity should recognise a liability that represents its promise to pay allowances throughout the commitment period. The liability exists irrespective of whether the entity has already emitted.

Click to download Cap and Trade Programs for Greenhouse Gas (PDF 1,123k).

Mr Barnier's presentation was titled Acting Without Delay to Clean Up Financial Markets. Here is an excerpt:

One of the strongest conclusions of the G20 was the shared commitment to reform together and to ensure convergence of accounting standards at an international level. To this end, we need to find the right balance between a faithful representation of a company's financial situation and wider financial stability. This issue will be at the centre of our discussions in the coming months.

Click to Download Mr Barnier's Remarks (PDF 28k).

The need for guidance when estimating the market value of investment property under construction was highlighted when the IASB amended IAS 40 Investment Property to require entities to disclose the fair value of investment property under construction.

Click for IVSC Press Release (PDF 23k). Guidance Note 17 itself may be downloaded from IVSC's Website.

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

Acknowledging that a comprehensive standard on rate-regulated activities may be delayed, the IASB agreed to amend IFRS 1 quickly so that a first-time adopter with rate-regulated operations will be permitted to elect to use the carrying amount of items of property, plant, and equipment held, or previously held, for use in such operations as their deemed cost at the date of transition to IFRSs. This proposal has already been exposed and will be added to the batch of Annual Improvements to IFRSs expected to be finalised in April 2010.

 

This is the traditional Bound Volume that contains the latest versions of IFRSs and the supporting documents (illustrative examples, implementation guidance, bases for conclusions and dissenting opinions) as issued by the IASB at 1 January 2010, including those standards that become mandatory after 1 January 2010. In January, the Board published a version of the Bound Volume (the 'Blue Book') that contains only those pronouncements whose application is mandatory as of 1 January 2010. The main changes in the Red Book are the inclusion of:

• one new standard: IFRS 9
• one revised standard: IAS 24 (the 2003 version of IAS 24 that was superseded has been omitted – the superseded version can still be used for 2009 and 2010)
• amendments to IFRSs that were issued as separate documents
• amendments to IFRSs issued in the second annual improvements project
• amendments to other IFRSs resulting from those revised or amended standards ('consequential amendments')
• two new Interpretations: IFRICs 18 and 19

Because of the growing size of the contents, the 2010 Red Book is published in two parts:

• Part A presents the unaccompanied IFRSs and their introductions and explanatory rubrics.
• Part B contains the accompanying (non-mandatory) documents, such as bases for conclusions, implementation guidance, and illustrative examples.

 

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.