May

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Testimony of PCAOB Chairman Goelzer

24 May 2010

On 21 May 2010, Daniel L Goelzer, Acting Chairman of the US Public Company Accounting Oversight Board, presented Testimony at a Hearing on Accounting and Auditing Issues conducted by the US House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.

Among other things, Chairman Goelzer's statement covered:
  • The Responsibilities of the PCAOB
  • The PCAOB's Recent Work in Connection with the Financial Crisis
  • Challenges Facing the PCAOB
In the 'Challenges' section, Chairman Goelzer discusses the inability of the PCAOB to conduct inspections of non-US audit firms in the European Union, Switzerland, and China even though those firms audit companies registered with the US SEC because the Sarbanes-Oxley Act, under which the PCAOB was created, prohibits the PCAOB from sharing inspections and investigation information with foreign auditor oversight authorities. Chairman Goelzer noted that amendment to the Act to allow PCAOB to share information with foreign counterparts is currently being considered by the Congress. Chairman Goelzer also noted that the US Supreme Court is expected to decide by 30 June 2010 on a case challenging the constitutionality of the Board's structure. Click here for Background Information on that Case.
Click for: Testimony at a Hearing on Accounting and Auditing Issues (PDF 134k)

 

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FEI letter to FASB and IASB

23 May 2010

The Committee on Corporate Reporting (CCR) of Financial Executives International (FEI) has written to both the IASB and the US FASB "to express our significant concern that springs from the unprecedented volume as well as the complexity of proposed standards expected to be issued in the coming months.

We urge the Boards to consider the adverse effect that is likely to have on the effectiveness of the Boards' due process procedures." The letter said:

Our member companies are extremely concerned with the 10+ Exposure Drafts (EDs) that are in final stages and will be released for public comment through the third quarter of 2010. During any single period in time in its 38-year history, the FASB has had no more than 3 or 4 significant EDs out for public comment. Moreover, it would be reasonable to characterize a majority of the historical exposure documents as evolutionary proposals rather than the more fundamental changes in accounting and reporting paradigms as are proposed in the forthcoming EDs. In addition, there are numerous interdependencies among the standards that further complicate the analysis.
Click for FEI CCR Letter to FASB and IASB (PDF 239k).

 

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Impairment advisory group to meet 24-25 May 2010

23 May 2010

The joint IASB-FASB Expert Advisory Panel (EAP) on the impairment of financial assets will meet at the offices of the FASB in Norwalk, Connecticut USA on 24 and 25 May 2010 as follows: Monday 24 May: 14:00 - 18:00 (US EDT); Tuesday 25 May: 08:00 - 14:45 (US EDT) The Board established the EAP to advise them about the significant practical challenges in moving to an expected loss model as proposed in the IASB's November 2009 Exposure Draft.

Under the proposals in the Exposure Draft, expected losses on loans (or other financial assets measured at amortised cost) are recognised throughout the life of the loan (or other asset), and not just after a loss event has been identified. Click for:

 

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Newsletter on fair value option for liabilities

22 May 2010

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IASB Issues Proposals on the Fair Value Option for Financial Liabilities.

On 11 May 2010, the IASB issued an exposure draft (ED) proposing to amend the way the fair value option in IAS 39 Financial Instruments: Recognition and Measurement is applied with respect to financial liabilities. The ED proposes that all gains and losses resulting from changes in 'own credit' for those financial liabilities that an entity chooses to measure at fair value should be recognised as a component of 'other comprehensive income' (OCI), not in profit or loss. Such gains or losses would be presented using a 'two-step approach':
  1. As a first step, an entity would present the full change in fair value in profit or loss.
  2. In the second step, the portion relating to changes in an entity's own credit risk would be presented as an offsetting entry in profit or loss and presented in OCI.
The ED does not propose any other changes for financial liabilities. Comment deadline on ED/2010/4 Fair Value Option for Financial Liabilities is 16 July 2010.
Click for IAS Plus Newsletter, May 2010: IASB Issues Proposals on the Fair Value Option for Financial Liabilities

 

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Accounting Roundup – special edition

22 May 2010

Deloitte (United States) has published a special edition of Accounting Roundup titled The Tidal Wave of Accounting and Financial Reporting Changes.

While much of the recent debate in the US financial reporting community has focused on when and if US-based public entities should be permitted or required to adopt IFRSs, this special edition focuses on a number of projects that are currently under way at the FASB that will change US GAAP.

The US Securities and Exchange Commission (SEC) is expected to decide on the use of IFRSs for US public entities sometime next year. In the meantime, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have been working both individually and jointly on a number of projects that, if finalized, would bring about a seismic shift in the accounting and financial reporting landscape, the likes of which US entities have never before experienced.
So, regardless of whether the SEC sets a date for US-based public entities to convert to IFRSs, all US-based entities will be affected by the changes to US GAAP as a result of the FASB's efforts. The remainder of the calendar year is likely to feature the issuance of a number of proposals and final standards.
Click to download  Accounting Roundup Special Edition May 2010 (PDF 184k).
You will find past issues Here.

 

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IFRSs in your Pocket 2010

22 May 2010

We have published the ninth edition of our popular guide to IFRSs – IFRSs In Your Pocket 2010.

This 132-page guide includes information about:
  • IASB structure and contact details
  • IASB due process
  • Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada
  • Summaries of each IASB Standard and Interpretation, as well as the Framework and the Preface to IFRSs
  • Background and current status of all current IASB projects
  • IASC and IASB chronology
  • Update on IFRS-US GAAP convergence
  • Other useful IASB-related information
We are pleased to grant permission for accounting educators and students to print copies of the PDF file for educational purposes. Please contact your local Deloitte practice office to request a printed copy. You will find Links to our Many Other IFRS Publications here.

 

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IFRS insurance accounting newsletter

21 May 2010

Deloitte (United Kingdom) has published the May 2010 issue of Insurance Accounting Newsletter. This issue is titled Steady, if Slow Progress. It focuses on the meetings in April 2010 between the IASB and the FASB to discuss the insurance contracts project.

The newsletter summarises the matters discussed, decisions reached, and disagreements between the two boards, and notes:

After another long week of joint meetings during the month of April, the Insurance Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have prepared the ground for a last attempt to resolve the major disagreements between them. Officially moving the date of the exposure draft (ED) publication to June was the price to pay for the divergence in opinions between the Boards. The Boards did manage to make some progress and many important decisions have been reached. However, in our opinion, the complexity of the remaining issues still makes the June deadline look optimistic.
Click to download Issue 14 of the Insurance Accounting Newsletter (PDF 113k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.

 

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Notes from May 2010 IASB meeting day 4

21 May 2010

The IASB held its May 2010 monthly Board meeting at its offices in London on Monday to Thursday, 17-20 May 2010. Portions of the meeting are joint meetings with FASB.

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

 

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Notes from May 2010 IASB meeting day 3

20 May 2010

The IASB is holding its May 2010 monthly Board meeting at its offices in London on Monday to Thursday, 17-20 May 2010. Portions of the meeting are joint meetings with FASB.

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

 

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Q&A report from recent Deloitte global financial reporting Dbriefs webcast

20 May 2010

On 11 May 2011, we hosted a Deloitte Dbriefs webcast on global financial reporting, entitled IFRS Public Policy Update: What Does the Future Hold?.

A 'Q&A Report' has been published containing a summary of audience questions submitted during the live webcast and our suggested responses. Topics covered include the impact of IFRSs in developing countries, the US SEC's decision on adopting IFRSs, and the likelihood of re-exposure of the proposals in the IASB's major projects.

 

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