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New Zealand moving away from the IFRS for SMEs

27 Oct 2010

The New Zealand Accounting Standard Review Board (ASRB) has released an updated summary of its 'Reporting by For-Profit Entities' project, which seeks to implement an updated differential reporting framework for New Zealand entities.

The New Zealand Accounting Standard Review Board (ASRB) has released an updated summary of its 'Reporting by For-Profit Entities' project, which seeks to implement an updated differential reporting framework for New Zealand entities.

At its July 2010 meeting, the ASRB agreed to establish an Working Group involving the ASRB, New Zealand Financial Reporting Standards Board (FRSB) and New Zealand Securities Commission to consider key issues.

The October 2010 ASRB meeting considered and agreed with the Working Group's recommendations, which include the need to operationalise the IASB "public accountability" definition in the New Zealand context, and the benefit of having a consistent set of recognition and measurement requirements across the 'tier' structure. Accordingly, this means New Zealand is unlikely to adopt the IFRS for SMEs but will instead require IFRS recognition and measurement requirements for all entities, with disclosure relief for particularly classes of entities.

New Zealand and Australia are working together on cross-Tasman harmonisation and this development may be a key plank in achieving consistent reporting requirements between the two countries, as the 'tiered' approach has recently been adopted in Australia. Proposals for the revised regime are expected to be issued in 2011 after further NZ-Australia discussions.

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FASB webcast on effective dates and transition consultation

27 Oct 2010

The FASB has released a podcast on the IASB and FASB's recent documents seeking views on when new financial reporting standards resulting primarily from their work to improve and achieve convergence of International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP) should become effective.

The questions in the FASB and IASB documents are largely consistent, although there are some differences.

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New issue of the IASB's Investor Perspectives

27 Oct 2010

In April 2010, the Trustees of the IFRS Foundation and the IASB launched a programme to enhance investors' participation in the development of International Financial Reporting Standards (IFRSs).

One of the enhancements is a newsletter for investors. Board members Stephen Cooper, Patrick Finnegan and Patricia McConnell publish timely updates on financial reporting matters. A new issue of the Investor Perspectives is now available:

All Investor Perspectives are archived on the IASB's website.

Notes from special October IASB meeting

27 Oct 2010

The IASB met in London on 27 October 2010 for a special meeting.

The topics discussed were as follows:

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting. The next IASB meeting will be a three day special meeting on Financial Instruments: Impairment scheduled for 10-12 November 2010.

United States publication focuses on global benefits from IFRS implementation

27 Oct 2010

Deloitte (United States) has published The IFRS Center of Excellence.

The United States Securities and Exchange Commission (SEC) is expected to decide on the adoption of IFRS in the United States in 2011, meaning U.S. companies could be required to report under IFRS in approximately 2015 or 2016. The publication discusses how a shared environment for IFRS reporting can help drive financial reporting standardisation and cost savings.

An extract:

Like any significant business change, the shift from local GAAP to IFRS reporting will involve an implementation cost. But unlike most other regulatory mandates, the move to IFRS also offers companies the chance to realize ongoing savings. Why? Because the adoption of IFRS across countries with formerly different local Generally Accepted Accounting Principles (GAAP) can ultimately eliminate the need for global companies to maintain local-country GAAP reporting capabilities in those countries — and, over time, allow them to consolidate IFRS reporting processes into a "Center of Excellence."

Click for The IFRS Center of Excellence - A shared environment for IFRS reporting can help drive financial reporting standardization and savings, too (PDF 1,486k).

IASB webcast on leases exposure draft

27 Oct 2010

On Monday 1 November, the IASB staff will be hosting a live webcast on common questions the staff are asked about the lease accounting proposals.

There is no charge to attend the web presentation, but you need to register to participate. You can do this now or any time before the presentation. Details of the webcast are as follows:
Topic: Common questions about the lease accounting proposals
Date and time: Monday, 1 November 2010, 10:00am and repeated again 3:00pm (UK time)
More information on the webcast and registration: click here (link to IASB website)
More information on IAS Plus: For our agenda project page click here


Public consultation on country-by-country reporting

27 Oct 2010

The European Commission is conducting a public consultation in order to gather stakeholders' views on country-by-country reporting by multinational companies. Country-by-country reporting is a concept that would require multinational companies to disclose financial information on their operations in third countries in their annual financial statements.

At present, issuers of securities in regulated markets in the EU are required to make public an annual financial report comprising, inter alia, a management report and the audited financial statements. When the issuer is required to prepare consolidated accounts, the audited financial statements must comprise consolidated accounts drawn up accordance with international accounting standards (IFRS). Currently, the applicable accounting standards do not require issuers to disclose financial information on a country-by-country basis in their consolidated accounts, although the Accounting Directives do require issuers to identify subsidiaries, jointly controlled entities and associates.

The IASB is currently working on a possible country-by-country reporting requirement which could be incorporated within a replacement Standard for IFRS 6 Exploration for and Evaluation of Mineral Assets. Once finalized, this standard is likely to become mandatory in the EU through the usual endorsement process under the IFRS Regulation.

The questionnaire for the consultation includes the following questions:

  • Would it be useful to have common EU rules on the disclosure of financial information on a country-by-country basis?
  • Would the disclosure of financial information on a country-by-country basis by multinational companies be meaningful to investors of the company concerned?
  • [...]
  • Would the disclosure of financial information on a country-by-country basis by multinational companies active in the extractive sector (e.g. minerals, oil, natural gas, etc.) be useful in order to improve domestic accountability and governance in natural resource-rich third countries?
  • [...]
  • If country-by-country reporting were to be considered useful, what kind of multinational companies would usefully be targeted?
  • Please provide information on the cost that you estimate that the introduction of country-by-country disclosure requirements could entail.

The questionnaire of the European Commission can be accessed here (link to EC website). Responses must be received by 22 December 2010.

Trustee review of the IFRS Interpretations Committee

26 Oct 2010

The IFRS Foundation Trustees' Due Process Oversight Committee is carrying out a review of the Interpretations Committee (formerly known as IFRIC) in order to assess its effectiveness.

The Trustees are seeking input into their review by means of a questionnaire, which covers the following matters:

  • Objectives and scope of activities of the Interpretations Committee
  • Membership
  • Operating procedures
  • Agenda criteria
  • Outputs from the Committee
  • Communications
  • Leadership
  • Interaction with the IASB.

The closing date for completion of the questionnaire is 31 January 2010. The Trustees are expected to publish a report from their review of the Interpretations Committee in the first half of 2011.

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Japanese translation of our IFRS in Focus newsletter on financial asset transfer disclosures

26 Oct 2010

Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation of the following IFRS in Focus newsletter:

Here is the English Version (PDF 139k). Our summary of the overall Derecognition project can be found Here.

The Japan Center of Excellence IFRS web pages are Here (in Japanese).

Spanish Heads Up on insurance contracts

26 Oct 2010

We have posted the following Spanish language Heads Up publication from Deloitte (Colombia).

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.