Whilst many of the views expressed in the compilation are the personal views of the authors of each section, the report provides a summary of the overall 'key messages', including many regarding corporate governance in financial institutions and more generally, and shareholder rights. The International Accounting Standards Board (IASB), its governance and international convergence are also mentioned, including the need for global standards of financial reporting requirements.

The messages directly relevant to financial reporting are reproduced below:

There has been a recent international convergence in thinking about corporate governance problems and remedies, which to a large extent has been driven by multilateral financial reform efforts, such as those of the G20. International standard setting bodies can promote convergence by designing principles-based guidance that is globally applicable but can be implemented in particular national and regional contexts.

Several national corporate governance reform efforts are, for the first time, using the language of 'sustainability' and 'stakeholder governance'. There is a need to transform the concept of 'sustainability' into more concrete measures of corporate performance and embed sustainability into a new model of 'stakeholder governance'.

The report can accessed on the UNCTAD website (publication ID UNCTAD/DIAE/ED/2010/2).

The speech was given on 17 March 2011 to the first International Conference of the Chartered Institute of Public Finance and Accountancy (CIPFA), which examined the developments and challenges of delivering good public financial management and how transparency in reporting restores the confidence of stakeholders.

In his speech, Mr Ball indicated that a crucial element of transparency in the public sector is accrual accounting, including a possible role for International Public Sector Accounting Standards (IPSASs).

An extract from the speech is reproduced below:

The full speech can accessed on the IFAC website.

It shows that the IASB expects to ballot on its four big projects (financial instruments, leases, revenue recognition and insurance contracts) before the end of June this year. This means that the standards likely will be published early in the second half of the year. No effective date is indicated in the work plan, but it is unlikely to be before 1 January 2013, with 1 January 2015 thought more likely.

Finalised standards in a number of other projects are now due to be issued in April: financial statement presentation (other comprehensive income), consolidation, joint ventures and post-employment benefits. In addition, new exposure drafts are expected before the end of June on investment companies and annual improvements, together with consultation on the IASB's agenda going forward.

Click for IASB work plan as of 28 March (link to IASB website).

In September 2010, a new accounting framework was approved by the Canadian Accounting Standards Board (AcSB) and Canadian Public Sector Accounting Standards Board:

• NPOs in the private sector – current accounting standards for not-for-profit organisations (the "4400 series of standards", based on Accounting Standards for Private Enterprises) OR International Financial Reporting Standards (IFRSs)
• Government NPOs – must adopt Public Sector Accounting (PSA) Standards, but have a choice to continue to apply eight CICA Handbook sections which incorporate current accounting standards for not-for-profit organisations (the "4400 series of standards").

The new requirements apply for fiscal periods beginning on or after 1 January 2012. The Basis of Conclusions on the framework notes future changes are expected to be made on annual or biennial basis, considering changes accounting standards for private enterprises and IFRSs (as relevant).

To assist Canadian NPOs in the transition to the new framework, Deloitte (Canada) has produced two publications, which can be downloaded below.

Click for:

• Managing the transition — A new accounting framework for Not-for-Profit Organizations in the private sector (PDF 328k)
• Managing the transition — A new accounting framework for government Not-for-Profit Organizations (PDF 352k)
• Frequently Asked Questions — Accounting Standards for Private Sector Not-for-Profit Organizations (link to the AcSB website)
• Accounting Standards for Not-for-Profit Organizations — Background Information and Basis for Conclusions (published March 2011, link to the CICA website)
• Our Canada country page.

 

This publication provides a closer look at the IASB's projects to amend the accounting for financial instruments and other projects likely to have significant implications for financial instrument accounting.

Click for Putting the pieces together: An update on the IASB's projects to improve the accounting for financial instruments and other related projects (PDF 182k).

The comment letter expresses Deloitte's views about the issues that are fundamental to the review of the IFRS Foundation's governance. The following is an excerpt from the letter:

The governance structure of the IFRS Foundation must facilitate achieving the ultimate goal of a single set of high-quality global financial reporting standards. The governance structure should provide for the independence of the standard-setter while ensuring the accountability of the IFRS Foundation to capital market authorities and ultimately governments.

The primary focus of setting financial reporting standards is the needs of participants in the capital markets and it is appropriate for the Monitoring Board to comprise capital market authorities responsible for the enforcement or endorsement of financial reporting standards for capital markets. So that it is able to meet this objective in a better manner, we support expanding the Monitoring Board to represent a more diverse population of capital market authorities from jurisdictions using or committed to using IFRSs. We think that IOSCO, which represents capital market authorities worldwide and is recognised as the G20's capital markets representative agency, is the appropriate agency to advise on membership of the Monitoring Board.

Click to Download our Comment Letter (PDF 106k). All of our past comment letters are here.

The 2011 taxonomy is consistent with IFRSs as issued by the IASB at 1 January 2011, and it contains XBRL tags for all IFRS disclosure requirements.

Click Here to access the IFRS Taxonomy files and accompanying materials on the IFRS Foundation's website.

The speech was delivered at an APEC Regional Symposium held in Melbourne on 8-9 March 2011 to focus on regulation in its regional and global context, promoting regulatory reforms across financial market sectors and international borders.

In the speech, Ms Diplock discusses the lessons of the global financial crisis, including the need to recognise systematic risk in an environment where "global markets are vitally interconnected" and "governance and sustainability matter". Ms Diplock goes on to explore the concept of a 'network model' of global financial markets and how this model might be used as the basis for regulation going forward, requiring the global application of regulation, including accounting, auditing and sustainability.

An extract of the speech follows:

Applying the network model to finance refocuses our attention from static institutions to constantly interacting market dynamics; to the links between commodities markets, energy markets, carbon markets and the broader financial markets.

The network model highlights the basic fact that good systemic health is vital to us all, and that we cannot afford to let it take second place to individual, short-term desires. This is why that sustainability is now as crucial an aspect of good governance in the financial field as it is in the environmental.

Narrowly focused, individual profit-seeking must not allowed to threaten the system itself. This is not mere virtue; it is necessity. Without the system that supports them, individuals cannot survive.

The new network model suggests that anything and everything related to markets and their governance, regulation, financial reporting, accounting and auditing must be globally oriented.

Click for the full text of the speech (link to IOSCO website). A background paper presented at the Symposium, Regulatory Reform Post the Global Financial Crisis: An Overview, is available on The Australian APEC Study Centre website.

The step, which requires ratification from the institutes' respective governing bodies, would combine the resources of the AICPA in North America with CIMA's presence in Europe, Middle East, Africa, Asia and elsewhere.

CIMA and AICPA would create a new not-for-profit joint venture to be called the Association of International Certified Professional Accountants. The joint venture would promote a new professional accounting designation which would recognise professionals around the world in management accounting, enterprise and performance strategy. The joint venture would also promote the US Certified Public Accountant (CPA) qualification as a worldwide standard of professional excellence in public accounting.

Click for CIMA press release (link to CIMA website).