The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have published an updated Progress report on their convergence efforts.

The report provides an update on progress under the Memorandum of Understanding between the IASB and FASB on the convergence of IFRSs and US generally accepted accounting principles (US GAAP) and confirms many of the decisions made at recent meetings of the boards.

The report confirms a target completion date of June 2011 or earlier for the following priority projects:

• joint projects on financial instruments, revenue recognition, leases, the presentation of other comprehensive income, and fair value measurement
• IASB projects on consolidation and insurance contracts.

In order to meet the June 2011 deadline, consideration of a number of other projects has been deferred until after June 2011, or timetables extended. This includes four joint projects, the investment company aspects of the consolidation project, and a number of independent projects of both boards.

The IASB has updated its Work Plan to reflect the above changes and provide more detail of the expected timing of pronouncements. A summary of the expected timing under the revised work plan is provided below (all pronouncements are finalised standards, unless otherwise noted):

Pronouncements expected by the end of calendar 2010 hedge accounting (exposure draft) amendments to IAS 12 Income Taxes - deferred tax on certain revalued assets amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards - hyperinflation and removal of 'fixed dates' management commentary (IFRS Practice Statement) Pronouncements expected in the first quarter of 2011 financial instruments - impairment and asset/liability offsetting (exposure drafts) consolidation, including joint arrangements and disclosure about unconsolidated entities financial statement presentation - other comprehensive income fair value measurement post-employment benefits Pronouncements expected in the second quarter of 2011 financial instruments - impairment, hedge accounting, asset/liability offsetting leases revenue recognition insurance contracts consolidation of investment companies (exposure draft, standard expected by end of 2011) annual improvements (including discontinued operations) (exposure draft) Projects deferred to after June 2011 Joint projects deferred as noted in the progress report - financial statement presentation (comprehensive project), financial statements with characteristics of equity, emissions trading schemes, conceptual framework (reporting entity) Other projects - liabilities (replacement for IAS 37), income taxes, rate-regulated activities, extractive activities, common control, earnings per share, government grants and intangible assets.

Click for:

• 'Progress Report on Commitment to Convergence of Accounting Standards and a Single Set of High Quality Global Accounting Standards' (link to IASB website)
• Updated IASB work plan (link to IASB website)
• Our IASB agenda page, updated for the above changes.

 

Click for:

• L'IASB publie des ajouts à l'IFRS 9 concernant la comptabilisation des passifs financiers (PDF 70k).
• English editions of IFRS in Focus.

 

We support the efforts to enhance the process for making improvements to IFRSs, including amendments to IFRSs to clarify guidance and wording or to correct unintended consequences, conflicts or oversights. We think that the criteria proposed in the Consultation Document are appropriate when identifying discrete issues in IFRSs that need to be resolved. However, we recommend that the remit of the IFRS Interpretations Committee be broadened so it can prepare draft amendments to IFRSs (including Implementation Guidance) to help ensure that urgent or emerging accounting issues are identified and addressed in a timely and efficient manner. Click to Download our Comment Letter (PDF 57k). All of our past comment letters are here.

The IFRS Interpretations Committee has reached the conclusion that costs associated with a stripping campaign' should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign.

We do not support the finalisation of this draft Interpretation. Much of the current apparent diversity in practice tends to be due to the underlying physical differences in mines and we are not convinced that the current practice produces results that are sufficiently inappropriate to warrant the publication of a final interpretation. We are also concerned about the Committee attempting to address specific issues on extractive activities on a piecemeal basis rather than through the IASB project. Click to Download our Comment Letter (PDF 90k). All of our past comment letters are here.

This edition focuses on:

• Lease accounting: IASB's Exposure Draft may significantly change the financial reporting of leases
• IFRS 1 review prior to transition to IFRSs
• An update on Canadian and international standard setting activities

Click here to download the November 2010 edition of Countdown (PDF 729k). A French translation is also available (PDF 1,307k). Click here to visit our Canada country page.

 

• Armenian and Simplified Chinese translations of the IFRS for SMEs. The translations can be accessed via the IASB's IFRS for SMEs webpage. You will need to be a registered user to access the translation. Registration is free of charge.
• Japanese translation of the Request for Views on Effective Dates and Transition Methods that was published in English by the IASB in October 2010. The Request for Views in English, French and Japanese can be accessed here.
• Japanese translation of the Staff Draft of Exposure Draft IFRS X: Financial Statement Presentation that was published in English by the IASB on 1 July 2010. The Staff Draft can be accessed via the IASB's Staff Draft webpage.
• Japanese translation of A Briefing for Chief Executives, Audit Committees & Boards of Directors 2010 that was published in English by the IASB in August 2010. Available for free for eIFRS subscribers, available to purchase from the IASB's web shop.
• Spanish translations of DisclosuresTransfers of Financial Assets (Amendments to IFRS 7) and the Conceptual Framework for Financial Reporting 2010, on the IASB's New and revised standards webpage (eIFRS subscribers only).

 

With Canada transitioning to IFRS from 2011, the guide is designed as a series of pointers for Canadian public companies to consider in preparing for the transition. Many of the ideas are generic and may be useful to first-time adopters in other jurisdictions as well.

This 329-page questionnaire summarises the recognition and measurement requirements in IFRSs issued on or before 30 September 2010. It may be used to assist in considering compliance with those pronouncements. It is not a substitute for your understanding of such pronouncements and the exercise of your judgment. Users of the questionnaire are presumed to have a thorough understanding of the pronouncements and should refer to the text of the pronouncements, as necessary, in considering particular items in this questionnaire. The items in this questionnaire are referenced to the applicable sections of the IFRSs. Click to download:

• 2010 IFRS Compliance Questionnaire – Word version (ZIP of a Microsoft Word file 784k).

A PDF version of this questionnaire will be available in a few weeks. There is a permanent link on our Model Financial Statements Page.

This questionnaire does not address the requirements of IFRSs as regards presentation and disclosure – please refer to Deloitte's separate IFRS Presentation and Disclosure Checklist for 2010. This questionnaire is suitable for use in assessing recognition and measurement in financial statements prepared in accordance with IFRSs for periods beginning on 1 January 2010. It is not generally appropriate for use for earlier accounting periods – please refer to previous versions of this questionnaire on our Model Financial Statements Page.