June

IVSC proposes major revisions to valuation standards

03 Jun 2010

The International Valuation Standards Council (IVSC) has published an exposure draft (ED) of proposed new International Valuation Standards (IVS).

The ED would be the ninth edition of the comprehensive bound volume of IFRSs, with substantial changes from previous editions (see chart below). These standards cover valuations for most types of assets, including for the first time a proposed standard for financial instruments. The standards also reflect current developments in IFRSs. Here is an overview of some of the most significant changes to IVS proposed in the ED:

Existing IVS

Proposed new edition

Concepts Fundamental to Generally Accepted Valuation Principles (GAVP)

The generic valuation principles have been carried forward into the proposed IVS 101. Other material discussing market value and land and property has been merged into IVS 103 and IVS 303.01.

Code of Conduct

Removed.

Property Types

Not directly replicated. Some elements included in individual asset standards.

Introduction to IVS 1,2,3

Not directly replicated. Elements included in IVS 101,103 and 105.

IVS 1 Market Value and IVS 2 Other Bases of Value

Merged into new IVS 103.

IVS 3 Valuation Reporting

Principles carried forward into IVS 105.

IVA 1 Valuations for Financial Reporting

Now included in IVS 201.01 to 201.04. Material updated and extended to reflect developments in IFRS.

IVA 2 Valuations for Secured Lending

Made specific to property and most material carried forward to IVS 202.01.

IVA 3 Valuation of Public Sector Assets for Financial Reporting

Title changed to reflect content and carried forward to IVS 201.05.

GN1 Real Property Valuation and GN2 Lease Interests

Elements carried forward and merged into IVS 303.01.

GN3 Valuation of Plant and Equipment

Updated and carried forward to IVS 302.01.

GN4 Valuation of Intangible Assets

This was replaced by a revised and extended GN4 published in February 2010. This contained comprehensive guidance on intangible assets. The proposed new standard IVS 301.02 is based on the revised GN4, but the more detailed guidance has been omitted. This will be incorporated into a future Technical Information Paper.

GN5 Valuation of Personal Property

It is not proposed to carry this forward into the new edition. The definition of personal property in the existing standards is very broad and covers many asset classes that are now the subject of more specific standards.

GN6 Business Valuation

Updated standards for business valuation are in IVS 301.01

GN7 Consideration of Hazardous and Toxic Materials

This is not a valuation standard and the topic is one of many topics that influence value. No others are highlighted in the current IVS. Not carried forward

GN8 Cost Approach and GN9 Discounted Cash Flow

These are discussions on valuation methods and do not meet the criteria for inclusion in the standards. IVSC have working groups addressing these topics with a few to issuing updated Technical Information Papers

GN10 Valuation of Agricultural Property

Not being carried forward as it contains no valuation procedures that differ from other property types. A new project on biological assets is proposed which may result in a new standard.

GN11 Reviewing Valuations

The scope and limitations on any valuation assignment are now covered generically in IVS 104. Not carried forward

GN12 Valuation of Trade Related Property

Updated and carried forward as IVS 303.04

GN13 Mass Appraisal for Property Taxation

Not being carried forward as it contains no valuation procedures that differ from the General Standards

GN14 Valuations of Properties in Extractive Industries

Not carried forward. A comprehensive project on valuations in the Extractive Industries is about to commence and will probably lead to a new standard.

GN15 Valuation of Historic Property

Carried forward as IVS 303.02

Click for:

Comment deadline is 3 September 2010.

 

PCAOB guidance on registration of non-US audit firms

02 Jun 2010

The US Public Company Accounting Oversight Board has published a staff guidance update related to the registration process for applicants from non-US jurisdictions where the PCAOB is prevented from inspecting PCAOB-registered firms.

The affected jurisdictions currently are the 30 European countries, China, Hong Kong, and Switzerland. The guidance alerts applicants from the affected jurisdictions that the PCAOB staff intends to request certain additional information before acting on those applications, and it explains how an applicant can seek to avoid delay by including the information when it first submits the application. The guidance has been published in the form of an updated Frequently Asked Questions Regarding Issues Relating to Non-US Accounting Firms (PDF 42k).

 

Deloitte webcast on global financial reporting

02 Jun 2010

The pace of standard-setting developments at the IASB is unprecedented and translates into challenging times for financial professionals.

What important new developments should you watch closely? In this webcast from Deloitte's IFRS Global Office, we will discuss:
  • The IASB's agenda and the state of convergence
  • Recent developments with the IASB's projects on defined benefit plans, financial statement presentation, and financial liabilities
  • Other recent IFRS news
Stay informed about the latest developments from the IASB and learn how those developments may impact you and your company.
  • Topic: IFRSs: How might developments at the IASB impact you?
  • Date and time: 17 June 2010, 9:00-10:00am London time (GMT +1) which is 16:00-17:00pm HKT (GMT +8)
  • Host: Joel Osnoss
  • Presenters: Veronica Poole, Linda Riedel, and Randall Sogoloff
  • More Info and Registration: Click Here

 

Report on EC consultation on IFRS for SMEs

02 Jun 2010

In November 2009, the European Commission launched a Consultation to gain an understanding of EU stakeholders' view on the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).

The consultation period ended 12 March 2010. The Commission has now published a summary report of the 210 responses received. In addition, on 25 May 2010 the Commission held a stakeholders meeting on the review of the Accounting Directives and the IFRS for SMEs. The Commission has released the minutes of this meeting.

A key question and responses:

  • Question: Do you think adoption of the IFRS for SMEs should be provided for within the EU accounting legal framework?
  • Response:
    • Supported by majority of Respondents from 19 Member States: BG, CY, CZ, DK, EE, EL, ES, HU, IE, LT, LU, MT, NL, PL, PT, RO, SE, SL, UK, EU Org and Registered Lobbyists
    • Opposed by majority of Respondents from 6 Member States: AT, BE, DE, FR, IT, SK
Click to download:

Deloitte Canada IFRS transition newsletters

01 Jun 2010

Deloitte Canada has published the May 2010 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 Rules of the Game – Making your opinion count in the development of IFRSs
  • The Real Deal – the focus this month is on Related Party Disclosures
  • An update on International standard setting activities
Click below for: Related items:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.