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EC Commissioner McCreevy speaks about IASB

03 Feb 2005

In a speech before the Economic and Monetary Affairs Committee of the European Parliament in Brussels on 1 February 2005, Charlie McCreevy, the new European Commissioner for Internal Market and Services, spoke about "democratic governance and political accountability of international standard setters".

He specifically addressed the International Accounting Standards Board (IASB) and the International Auditing and Assurance Standards Board (IAASB). An excerpt:

The Commission is working hard to influence the reform process underway within the IASB and is looking very carefully at the arrangements proposed for the IAASB which will elaborate International Standards on Auditing. In considering this issue we must not lose sight of our overall goal, namely the adoption of international standards which will make it easier for companies to list in the EU and elsewhere across the globe. There are 3 key points:

  • First, that representation within the international standard setter and within a public oversight body should correspond more appropriately to jurisdictions that directly apply the standards.
  • Second, that effective oversight bodies which approve the work programme of an international standard setter should be in place....
  • Third, the funding system; the standard setters are currently sponsored by voluntary contributions from contributors ranging from central banks to listed companies, which raises potential issues of conflict of interest. I therefore welcome the Board of Trustees of the IASB's intention to change this.
Click to (PDF 85k).

ARC will consider endorsement of IFRIC 2

03 Feb 2005

The Accounting Regulatory Committee, which advises the European Commission on endorsement of IFRSs for use in Europe, will meet in Brussels in 25 February 2005 to consider, among other matters, a formal vote on whether to recommend IFRIC 2 Members' Shares in Co-operative Entities and Similar Instruments for use in Europe.

Additional agenda items include discussion of IFRIC 3 Emission Rights; date of application of new standards and interpretations; the full fair value option and interest rate margin hedging under IAS 39; the IASCF constitution review; IASs/IFRSs translation arrangements for 2005; and the distribution of profits under a 'fair value regime'. Click to download:

Agenda for next week's SAC meeting

03 Feb 2005

The IASB will meet with its Standards Advisory Council at the Renaissance London Chancery Court Hotel, 252 High Holborn, London on 10 and 11 February 2005 starting at 10:30am Thursday and 9:30am Friday.

The agenda for the meeting, which is open to public observation, is shown below.

10-11 February 2005, London

Thursday 10 February 2005


  • Introduction and Chairman's Update
  • Development of Regional Interest Groups
  • Accounting for Small and Medium-sized Entities
  • Conceptual Framework
  • Service Concession Arrangements

Friday 11 February 2005


  • Segment Reporting - Consideration of Convergence Proposals
  • Management Discussion and Analysis (MD&A;)
  • Research Group Findings
  • Revision of IAS 37 - Overview of Proposals
  • Business Combinations II - Overview of Proposals
  • Open Forum

CFA Institute surveys quality of financial reporting

02 Feb 2005

The quality of corporate information disclosed by listed companies in the Asia-Pacific region is improving, according to a survey of portfolio managers, investment analysts, credit analysts, and investment advisors conduct by the CFA Institute.

Most respondents rated the overall quality of disclosure as either 'average' (49%) or 'good' (35%). 84% of the respondents thought that the quality of disclosed information in the region had improved either 'a lot' or 'some' during the past three years. 75% felt that regulators should mandate quarterly reporting throughout the region.

The 10 areas of disclosure ranked as most important to the responding analysts are:

  • Off-balance sheet assets or liabilities
  • Unusual, non-recurring charges
  • Forward-looking projections, forecasts
  • Risk factors, sensitivity of assumptions
  • Capitalised vs. expensed costs
  • Accounting principles applied,
  • Including effects of changes
  • Revenue recognition criteria
  • Related party transactions or special purpose entities
  • Contingencies, including litigation
  • Fair values of assets, liabilities

Click to download (posted with permission of CFA Institute):

PCAOB staff Q&A on internal controls

02 Feb 2005

The US Public Company Accounting Oversight Board has published a fourth set of staff questions and answers related to PCAOB Auditing Standard No.

2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements. AS 2 applies to audits of foreign, as well as domestic, SEC registrants. The new Q&A; #37 addresses release of the auditor's reports on (a) management's assessment of internal control and (b) the financial statements on different dates.
  • Q&A; 37 (PDF 85k) published 21 January 2005
  • Q&A; 30-36 (PDF 85k) published 22 November 2004
  • Q&A; 27-29 (PDF 58k) published 6 October 2004
  • Q&A; 1-26 (PDF 96k) published 23 June 2004

EFRAG appoints insurance working group

02 Feb 2005

The European Financial Reporting Advisory Group (EFRAG) has restructured its insurance subcommittee into an insurance accounting working group (IAWG).

Objectives of the group are to provide pro-active contribution to the work of the IASB in Phase II of its insurance project and to identify interpretation and implementation issues on insurance-specific matters. Members of the working group are:
  • Benoit Jaspar, GENERALI (Chairman)
  • Bernard Bolle-Reddat, BNP-Paribas
  • Ruurd Van den Berg, AEGON
  • Jacques Le Douit, AXA
  • Hugh Francis, AVIVA
  • Catherine Guttmann, Deloitte (EFRAG TEG)
  • Joachim Kolschbach, KPMG
  • Nigel Masters, PwC
  • Carsten Zielke, WestLB
  • Observer organisations: European Commission, CESR, CEIOPS, and CEA
  • Associate member organisations: ICISA and ACME
Click to Download IAWG Terms of Reference (PDF 20k).

Convergence of IPSASs and statistical reporting

01 Feb 2005

As part of its program to support convergence of International Public Sector Accounting Standards (IPSASs) and statistical bases of financial reporting, the International Public Sector Accounting Standards Board (IPSASB) has released a research report that identifies differences in the requirements of IPSASs and statistical reporting models.

The report, International Public Sector Accounting Standards (IPSASs) and Statistical Bases of Financial Reporting: An Analysis of Differences and Recommendations for Convergence, aims to reduce confusion for users of public sector financial reports caused by the differences between accounting and statistical models of financial reporting. The report may be downloaded from IFAC's Website.

Special IAS Plus newsletter explains IFRS 6

01 Feb 2005

Deloitte's IFRS Global Office has published a Special Global Edition of our IAS Plus newsletter explaining (PDF 54k).

  • permits entities to continue to use their existing accounting policies for exploration and evaluation assets, provided that such policies result in information that is relevant and reliable; and
  • requires entities to assess any exploration and evaluation assets for impairment when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount. The recognition of impairment in respect of such assets is varied from that in IAS 36 Impairment of Assets but, once an impairment has been identified, it is measured in accordance with IAS 36.

January 2005 edition of Accounting Roundup

01 Feb 2005

We have posted the (PDF 158k).

Accounting Roundup is prepared by the National Office Accounting Standards and Communications Group of Deloitte & Touche LLP (USA) to briefly describe key regulatory and professional developments that have recently occurred in the field of accounting and to provide links to locations where additional information can be found on each topic. You will find past issues Here.

UK extends IFRSs to all companies

31 Jan 2005

The United Kingdom has adopted a statutory instrument (legislation) that permits publicly traded companies and building societies to use IFRSs in their individual accounts and permits non-publicly traded companies to use IFRSs in both their individual and consolidated accounts. Statutory Instrument (PDF 338k) Related Draft DTI Guidance (PDF 124k) .

The United Kingdom has adopted a statutory instrument (legislation) that permits publicly traded companies and building societies to use IFRSs in their individual accounts and permits non-publicly traded companies to use IFRSs in both their individual and consolidated accounts.

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