November

IFRS Illustrative Financial Statements for 2011

08 Nov 2011

Deloitte's Global IFRS Office has released International Financial Reporting Standards — Model financial statements with no early application.

These model financial statements illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) for the year ended 31 December 2011 by an entity that is not a first-time adopter of IFRSs. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard.

The model financial statements illustrate the impact of a number of new and revised Standards and Interpretations that are mandatorily effective on 1 January 2011. However, they do not illustrate the impact of early adoption of new and revised Standards and Interpretations that are not yet mandatorily effective on 1 January 2011 (e.g. IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities).

Click for IFRS Model Financial Statements for 2011 (without early application) (PDF file, 1,506k)

Conclusions of the Trustees' Due Process Oversight Committee meeting

08 Nov 2011

The IFRS Foundation Trustees' Due Process Oversight Committee (DPOC) has posted to their website a summary of the conclusions of their meeting on 11 October 2011.

The committee discussed:

  • Development of a protocol for due process oversight
  • Post-implementation review planning
  • Agenda consultation
  • Review of the IFRS Interpretations Committee
  • Correspondence with third parties
  • Due process oversight of standards
  • Oversight of XBRL activities
  • Interaction with national and regional accounting standard-setters

Please click here to read the notes on the IFRS Foundation's website.

Reappointment of three Trustees of the IFRS Foundation

08 Nov 2011

The Monitoring Board of the IFRS Foundation has approved the reappointment of three IFRS Foundation Trustees.

  • Clemens Börsig (Europe),
  • Robert Glauber (Vice-Chairman and acting Co-Chairman of the Trustees, North America) and
  • Noriaki Shimazaki (Asia-Oceania).

Their respective terms will now expire in December 2014. Please click for an updated list of all Trustees of the IFRS Foundation. The IFRS Foundation has published a short press release (link to IASB website).

IIRC to hold webcast on integrated reporting

08 Nov 2011

The International Integrated Reporting Committee (IIRC) is holding a webcast on integrated reporting on 15 November 2011.

The webcast will start at at 08:00am GMT and will last for one hour.

Topics will include an overview of the rationale behind the move towards integrated reporting, initial proposals for the development of an International Integrated Reporting Framework, and the next steps towards its creation and adoption.

Click for more information and registration (link to webcast registration).

Notes from the November IFRS Interpretations Committee meeting

07 Nov 2011

The IFRS Interpretations Committee met in London on 3-4 November 2011.

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

Agenda for the regular November IASB meeting

07 Nov 2011

The IASB's regular monthly meeting is scheduled for 15-16 November 2011 in London, part of it a joint meeting with the FASB.

You can access the agenda on our November 2011 IASB meeting page.  We will also post Deloitte observer notes on this page as they are available.

G20 reiterates commitment to global standards, focuses on financial instruments

05 Nov 2011

The Group of 20 (G20) has released a Communiqué and supporting documents from the G20 Leaders Summit held in Cannes, France on 3-4 November 2011, which includes reference to global accounting standards, convergence and the governance of the IASB.

Many of the agreed outcomes are focused on global economic and other issues, and include agreed actions on implementing and deepening financial sector reforms. These include reference to global accounting standards, convergence and the governance of the IASB. Achieving convergence on financial instruments is singled out for particular attention and a report on the overall IASB-FASB convergence project is called for by April 2012.

The Cannes Summit Final Declaration includes the following observations in relation to accounting standards:

"We reaffirm our objective to achieve a single set of high quality global accounting standards and meet the objectives set at the London summit in April 2009, notably as regards the improvement of standards for the valuation of financial instruments. We call on the IASB and the FASB to complete their convergence project and look forward to a progress report at the Finance Ministers and Central Bank governors meeting in April 2012. We look forward to the completion of proposals to reform the IASB governance framework."

Other financial sector reforms cited include supervision of global systemically important financial institutions (G-SIFIs), regulation of banks (including 'shadow banking'), over-the-counter (OTC) markets and compensation practices, and reform of the Financial Stability Board (FSB).

Click for:

Discussions at the joint IASB-ASBJ meeting

04 Nov 2011

Representatives of the International Accounting Standards Board (IASB) and the Accounting Standards Board of Japan (ASBJ) held their fourteenth biannual meeting in London on 31 October and 1 November 2011.

IASB and ASBJ discussed the following topics:

The IASB has posted to its website a press release with a summary of the discussions.

Challenges in applying conventional international accounting standards for Islamic finance

04 Nov 2011

On 23 and 24 October 2011, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was hosting the World Bank Annual Conference on Islamic Banking and Finance. One of the sessions of the meeting was dedicated to 'Challenges in applying conventional international accounting standards for Islamic finance'.

A speech given by Sutan Emir Hidayat, Senior Lecturer at the Islamic Finance University College of Bahrain, outlined the benefits of applying IASs / IFRSs but also showed that full application of international accounting standards by Islamic Financial Institutions (IFIs) can run counter to the objectives of Shariah-compliant banking.

The conclusions from his very detailed analysis are:

  • Despite the benefits that International accounting standards offer, applying their standards to IFIs towards some extent will eliminate the essence of shariah principle. In other words, shariah compliance cannot be adequately reflected by financial statements and notes. While, in fact, compliancy to Shariah is the main reason for IFIs' existence.
  • The full application of IAS also will hold back / hinder our steps in developing accounting standards that adequately cater for shariah compliant transactions thus ignoring the significant contributions made by AAOIFI.
  • IAS / IFRS were written with conventional products and operations in mind. When they are applied to Islamic products, typically they will treat the products, in economic substance, as equivalent to their conventional counterparts.
  • Therefore, obviously, there are huge impediments on fully applying IAS for IFIs. But, a broad harmonization can be reached by the application of the relevant aspects of IAS.

The full deck of slides for this speech is available on the AAOIFI website (PDF 692k). This AAOIFI page offers an overview of the whole programme of the conference with many links to speeches given.

Updated IASB work plan released

04 Nov 2011

The IASB has released an updated work plan, dated 31 October 2011, outlining revised 'current best estimates' for its various projects. The timing for a number of projects has been deferred slightly, and the timing of post-implementation reviews formally announced.

The following is a summary of the revised work plan:

    Click for IASB work plan as of 31 October (link to IASB website). We have updated our project pages to reflect the updated work plan and other known developments.

    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.