This project was added to the agenda at the June IASB-FASB meeting in response to stakeholder concerns (including those of the Basel Committee on Banking Supervision and the Financial Stability Board) about differences between IFRS and US-GAAP standards on balance sheet netting of derivative contracts and other financial instruments that can result in material differences in financial reporting by financial institutions.

The questionnaire is targeted at users of financial statements, requesting feedback in areas such as:

• Which of gross or net values of financial asset and liability positions, and in particular derivatives, is useful for financial statement analysis
• Whether gross or net values should be presented on the face of the statement of financial position (balance sheet)
• When offsetting (netting) should be permitted (conditional or unconditional rights, different types of risk).

The deadline to complete the questionnaire is 20 August 2010. The questionnaire can be accessed through the IASB website. More information on the project is available in our Financial Instruments - Balance Sheet Offsetting project page.

In Kosovo, the Law requires all corporations (except "small corporations"), publicly-owned enterprises, and socially-owned enterprises to prepare their financial statements in conformity with Kosovo Accounting Standards (KAS) or IFRS. Banks and insurance companies are required to prepare financial statements in compliance with IFRS and the accounting requirements set forth by the Banking and Payments Authority of Kosovo (BPK). However, since no mechanism currently exists for enforcing compliance with accounting and financial reporting requirements there is widespread non-compliance with both IFRS and KAS.

The IFRS for SMEs is particularly relevant in Brazil mainly after the signature of the Memorandum of Understanding among the IASB, Brazilian Federal Council of Accounting (CFC) and the Brazilian Accounting Pronouncements Committee (CPC) in January 2010, during a visit of Sir. David Tweedie (IASB Chairman) to Brazil.

In December 2009, the Brazilian Accounting Pronouncements Committee (CPC) adopted a Portuguese version of the IFRS for SMEs as an option for SMEs in Brazil. By Resolution 1255 of 2009, the CPC's SME standard was endorsed by the Brazilian Federal Accounting Council (CFC), the national professional body.

Click for:

• IFRS para PMEs ao seu alcance 2010 (IFRS for SMEs in Your Pocket in Portuguese, 84 pages, PDF 360k)
• Normas Internacionais de Relatório Financeiro - Modelo de demonstrações financeiras para 2009 (2009 Model financial statements in Portuguese, 124 pages, PDF 1,270k)
• IFRS for SMEs in Your Pocket (Global Edition, English, PDF 406k)
• Model financial statements and checklists
• Our Brazil country page
• Our IFRS for SMEs page.

At the meeting, a Memorandum of Understanding was signed which primarily focuses on:

• An exchange of views on legal and regulatory and other issues arising out of application of or convergence with IFRSs and exploring the possibilities of mutual cooperation
• Addressing critical issues relating to application of, or convergence with, IFRSs and reaching consensus through a process of consultation mutually agreed to
• Fostering a strong and cohesive profession by providing leadership on emerging issues, coordinating with global, other regional, intra-regional organisations, member bodies and associates to achieve appropriate strategic objectives.

• Accounting Standards Board of Japan (ASBJ) press release Inauguration of India-Japan Dialogue (PDF 41k)
• Our India country page
• Our Japan country page.

Excerpts from the press release:

Click for:

• Press release Deloitte on the publication of the IASB Exposure Draft of the new International Reporting Standard for Insurance Contracts
• Our Insurance contracts project summary.