"At the beginning of the crisis, in 2007 and 2008, a lack of transparency regarding exposures to subprime mortgages created a situation of uncertainty about the financial positions of banks," Maijoor says in his speech and continues "in the more recent months of the financial crisis a lack of transparency from banks on their exposures to sovereign debt and related instruments are generating new suspicions about the conditions of individual banks."

Transparency on financial performance and positions will restore trust into markets and banks, Maijoor claims, and IFRSs have contributed to both the quality and quantity of the information provided as part of the financial statements presented by listed companies. However, IFRSs need to be applied correctly to serve the end of transparency, and national supervisory authorities and ESMA have to and will ensure consistent enforcement across the EU.

As you will understand, we are currently looking at how banks are applying IFRS for the valuation of sovereign debt. It is very important for ESMA that financial institutions apply IFRS correctly, and are consistent in their valuations of sovereign debt exposures. This especially holds for the upcoming annual financial statements.

In July 2011, ESMA published a public statement on disclosures related to sovereign debt to be included in IFRS financial statements.

Click for:

• full text of Steven Maijoor's speech (link to ESMA website)
• IAS Plus overview of accounting developments in Europe

 

A Brussels event will be organised by EFRAG and the European Commission. The purpose of the events is stimulating debate in Europe and collecting European views. Please click for more information in the EFRAG press release (link to EFRAG website).

In August 2011 the IASB issued the Exposure Draft Investment Entities. The ED provided criteria and guidance to determine whether an entity is an investment entity. The draft proposed that an investment entity measure its investments in controlled entities at fair value through profit or loss in accordance with IFRS 9 Financial Instruments.

EFRAG believes that the parent of an investment entity should be permitted to retain the fair value accounting that is applied by its investment entity subsidiary to controlled entities. EFRAG also encourages IASB to carry out an impact assessment to better understand better the practical implications of any amendments to IAS 28 Investments in Associates and Joint Ventures.

Please click for EFRAG's press release containing a link to the draft comment letter (link to EFRAG website).

The agenda for the meeting is set out below.

IFRS Advisory Council Meeting Agenda 10-11 October 2011, London

Monday, 10 October 2011 Welcome and Chairman’s preview Overview of last four months IASB activities (financial instruments, insurance contracts, leases and revenue recognition) Trustees review of the IFRS Interpretation Committee Trustees due process oversight committee Trustee strategy review and Monitoring Board review Raising the profile of the Council / working with the Trustees The IASB’s agenda consultation How to deal with the conceptual issues at stake at the present juncture Tuesday, 11 October 2011 Insurance contracts Revenue recognition XBRL update World Bank review of standards IFRS 'branding' IFRS Foundation education activities

Click for access to the full agenda and agenda papers (link to IASB website).

The webcast will discuss accounting, standard setting, and reporting developments for the quarter, recent positions on accounting and reporting of the FASB, IASB, SEC, and PCAOB, and other hot topics.

Full details of the webcast are provided below:

Topic:	Quarterly Accounting Roundup: An Update of Important Developments
Date and time:	Thursday, 29 September 2011 at 2:00pm-3:30pm United States Eastern Daylight Time (GMT-04:00)
Host:	Bob Uhl, Partner – Deloitte & Touche LLP
More information:	Click Here
Registration:	Click Here