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October

New publications from Deloitte (Brazil)

31 Oct 2011

We have posted copies of the following recent publications from Deloitte (Brazil).

Deloitte (Brazil) has published IFRS ao seu alcance 2011 (PDF 582k), the Portuguese translation of IFRSs in your Pocket 2011. The content is the same as the English 2011 version.

Deloitte (Brazil) has published a Portuguese edition of IFRS for SMES in your pocket 2011 (PDF 420k). This publication provides a section-by-section guide on the IFRS for SMEs, providing key comparisons with the full IFRS standards and highlighting particular conversion issues.

Israel and US regulators enter into a cooperative agreement

31 Oct 2011

The Israel Securities Authority (ISA) and the Public Company Accounting Oversight Board of the United States (PCAOB) have entered into a cooperative agreement.

The cooperative agreement for the exchange of confidential information will enhance the supervisory oversight of auditors and accounting firms performing in both jurisdictions. PCAOB Chairman James R. Doty commented that, "With the significant presence of Israeli companies on U.S. exchanges, this agreement with the Israel Securities Authority will better protect U.S. investors. It is an important achievement in expanding our cooperative agreements into the Middle East, and I hope that other regulators elsewhere will soon follow."

Click for:

Sustainable development platform established in Singapore

28 Oct 2011

The World Business Council for Sustainable Development (WBCSD) and Singapore Business Federation (SBF) have jointly established a CEO-led 'Sustainable Development Platform' in Singapore.

The WBCSD and SBF signed a Letter of Intent at the recent Asia Pacific Sustainability Leadership Forum to jointly create the independent organisation, which would consist of a group of local Singapore companies and foreign subsidiaries. The objective of the organisation is to provide businesses in Singapore with access to international best practices and collaboration opportunities on sustainability issues.

Click for press release (link to WBCSD website).

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

28 Oct 2011

On 18 October 2011, a Deloitte Dbriefs webcast on global financial reporting was held, entitled IFRS: Important Developments.

A 'Q&A Report' has been published containing a summary of audience questions submitted during the live webcast, together with suggested responses. Topics covered in the report include the IASB's projects on hedge accounting, revenue recognition, offsetting and investment entities, and the IASB's agenda consultation.

Click for:

 

Investor webcast by the IASB and the CFA Institute

28 Oct 2011

An investor webcast by the IASB and the CFA Institute will be held on 9 November 2011.

The IASB and the CFA Institute will discuss the IASB's first public agenda consultation, how the Board will decide what should be on its agenda and why investor input is crucial in that process.

Full details of the webcast are provided below:

Topic: Setting the IASB's Agenda for the Next Decade: Investor Update and Input Opportunity
Date and time: Wednesday, 9 November 2011
3:00pm GMT, which is 10:00am ET
More information and registration: Click Here

IFRS compliance, presentation and disclosure checklist for 2011

28 Oct 2011

Deloitte's IFRS Global Office has published the IFRS Compliance, Presentation and Disclosure Checklist for 2011. The checklist summarises the recognition, measurement, presentation and disclosure requirements set out in IFRSs in issue as of 30 June 2011.

Click for:

 

New Zealand to consider ways to reduce excessive disclosures under IFRSs

27 Oct 2011

The New Zealand Accounting Standards Board (NZASB) is to consider a short-term action plan to encourage the reduction of excessive disclosures at its upcoming meeting on 2 November 2011.

A staff paper to be considered at the meeting discusses the NZASB's response to the report Losing the excess baggage: reducing disclosures in financial statements to what's important issued by The Institute of Chartered Accountants of Scotland (ICAS) and the New Zealand Institute of Chartered Accountants (NZICA) in July 2011. The paper notes that "although the project was commissioned by the IASB, with the expectation that it would be exposed for comment, it appears that the IASB is unlikely to take any action before it considers comments on its Agenda Consultation 2011."

The staff paper explores the options available to ensure any advice or guidance issued by the NZASB is of sufficient standing that not only preparers but also auditors and regulators will consider that it is persuasive, whilst at the same time ensuring New Zealand's ongoing compliance with IFRSs in relation to for-profit entities. The paper discusses the options of a domestic New Zealand standard or Interpretation, an explanatory guide or an informal communication such as a communiqué.

The staff paper recommends the NZASB issue an explanatory guide, which would not have any legal status but which would provide guidance on applying the materiality concept in relation to disclosures. The guidance would be based on the recommendations in the ICAS-NZICA report that users of IFRSs should consider separately (i) whether an item is material and (ii) whether individual pieces of information are material such that they warrant disclosure in the additional notes. Consideration would be given to individual pieces of information relating to material items, as well as information that does not relate to specific items but is required for the financial statements to meet the objective of financial reporting. It would not extend to the removal of various IFRS disclosures identified for possible removal in the report.

This New Zealand development gives additional impetus to global calls for disclosure relief in financial reporting.

Click for:

 

French ANC proposes simplification of accounting obligations for small listed companies in Europe

27 Oct 2011

In accordance with the European Regulation No 1606/2002 the application of IFRSs is mandatory in the consolidated financial statements of all listed companies irrespective of their size.

The French national standard setter Autorité des Normes Comptables (ANC) has now published a proposal for the simplification of the accounting requirements for small listed companies.

The ANC claims that the application of full IFRSs is often burdensome for small listed companies. Therefore, it would be preferable to adapt their accounting obligations to their size, without either diminishing the quality of the reporting or introducing a new set of accounting principles. Thus, the ANC is not suggesting to introduce a set of accounting standards such as the IFRS for SMEs which is, moreover, designed for unlisted entities. This would, according to the ANC, deprive small listed companies of the benefit of a single set of internationally recognised accounting standards, namely full IFRS.

The ANC sees a viable alternative in the simplification of the existing accounting framework. Two ways of simplifying IFRSs for small listed companies are suggested:

  1. Reduce the volume of the notes by simplifying the current disclosure requirements under IFRSs.
  2. Facilitate the preparation and improve the readability and relevance of the notes to the financial statements by offering an illustrative set of simplified financial statements.

The ANC makes detailed suggestions as to where disclosure requirements can be simplified and has compiled an illustrative set of financial statements.

Please click for (all links to ANC website):

  • ANC press release:
  • ANC proposal with details simplification suggestions and illustrative financial statements:

 

Remarks by IASB Chairman Hans Hoogervorst at the IFRS Conference: Latin America and the Caribbean

27 Oct 2011

On 27 October 2011, IASB Chairman Hans Hoogervorst addressed the IFRS Conference: Latin America and the Caribbean, in Sao Paulo, Brazil.

In his speech, he discussed the prospects for global accounting standards, Latin American adoption of IFRS, and the agenda and priorities of the IASB.

In regards to the prospects for global accounting standards, Chairman Hoogervorst commented that global accounting standards are needed to protect investors in a global financial market. He said that while IFRSs is now required or permitted to be used in many countries, there are a few important jurisdictions that have not adopted IFRSs, such as the United States, Japan, India and China. However, he believes its not a matter of "if" these jurisdictions will move to IFRSs, but of "when" and "how" it will occur.

Next on Latin American adoption of IFRS, Hoogervorst commented that full adoption of IFRSs is the right step to take and noted Brazil as "a textbook example of how to adopt". By accepting IFRSs fully "Brazilian companies are able to raise capital on markets across Asia, Europe and the Americas—including the United States. . . . The risk premium associated with unfamiliar financial reporting requirements is eliminated, thus reducing the cost of capital and attracting greater inward investment."

In conclusion, Hoogervorst discussed the future agenda and the four immediate priorities of the IASB in the coming year. First, the remaining convergence projects with the FASB need to be completed. He mentions that there will be revised proposals for both leasing and revenue recognition in the months ahead with the goal of completing these projects in 2012. He also mentions that the boards are working on a joint approach to financial instruments and insurance contracts. Second, the chairman gave a brief remark on the development of the IASB's post-convergence agenda, specifically the agenda consultation process aimed to solicit feedback to the IASB. The third priority of the IASB is to get the remaining jurisdictions to adopt IFRSs. Lastly, he says the IASB will work with those impacted by the IASB's work and "ensure that they have a sense of ownership and respect for the product that we are developing for investors globally."

Click for the speech transcript (PDF 361k, link to IASB website).

Initial organisations participating in integrated reporting pilot announced

26 Oct 2011

The International Integrated Reporting Committee (IIRC) has announced that over 40 companies from around the world have been chosen as the initial participants in the IIRC Pilot Programme Programme, with further participants expected.

The Pilot Programme is designed to run over a two year period and will involve a group of organisations who will work as a peer group network, exchanging knowledge and sharing experiences and participating in the development of the International Integrated Reporting Framework envisaged in the IIRC's Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century (see our earlier story).

The initial participants in the programme include a variety of organisations from many geographical regions (including Deloitte):

Pilot companyCountrySector
AB Volvo – Volvo Group Sweden Automobiles
Association of Chartered Certified Accountants United Kingdom Accounting
Aegon Group The Netherlands Financial Services
Akzo Nobel N.V. The Netherlands Chemicals
ARM Holdings plc United Kingdom Technology Hardware & Equipment
Atlantia S.p.A. Italy Industrial Goods & Services
BBVA Spain Banks
BWise b.v. The Netherlands Industrial Goods & Services
Chartered Institute of Building, The United Kingdom Professional Organization
Cliffs Natural Resources United States of America Basic Resources
CLP Holdings Limited China Utilities
CNDCEC Italy Accounting
DANONE France Food & Beverage
Deloitte LLP United Kingdom Accounting
Deloitte Netherlands The Netherlands Accounting
Diesel & Motor Engineering PLC Sri Lanka Industrial Goods & Services
Edelman United States of America Media
EnBW Energie Baden-Württemberg AG Germany Utilities
Enel Italy Electricity
eni S.p.A. Italy Oil & Gas
Eskom Holdings SOC Limited South Africa Utilities
Flughafen München GmbH Germany Industrial Goods & Services
Gold Fields South Africa Basic Resources
HSBC Holdings plc United Kingdom Banks
KPMG International Switzerland Accounting
LeasePlan Corporation N.V. The Netherlands Financial Services
Marks and Spencer Group plc United Kingdom Retail
mecu Limited Australia Banks
Microsoft Corporation United States of America Technology
N.V. Luchthaven Schiphol The Netherlands Industrial Goods & Services
National Australia Bank Limited Australia Banks
Natura Cosméticos Brazil Personal & Household Goods
Novo Nordisk Denmark Health care
PriceWaterhouseCoopers N.V. The Netherlands Accounting
Prudential Financial, Inc. United States of America Financial Services
Randstad Holding N.V. The Netherlands Industrial Goods & Services
State Nuclear Energy Corporation ROSATOM Russian Federation Utilities
Stockland Australia Real Estate
Takeda Pharmaceutical Company Limited Japan Health care
The Coca-Cola Company United States of America Food & Beverage
Vancity Canada Banks
Vestas Wind Systems Denmark Oil & Gas
Via Gutenberg Consultoria  em Entretenimento e Cultura Ltda Brazil Industrial Goods & Services
Click for IIRC press release (link to IIRC website).

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