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News

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Special edition of Deloitte's Audit Committee Brief

24 Mar 2005

In a news story dated 6 January 2005 we reported that Financial Executives International had published a list of the top 10 financial reporting challenges for 2005. To assist financial executives and audit committees in addressing those issues, Deloitte & Touche LLP (USA) has prepared a summary, with active hyperlinks, of (PDF 288k).

Note that while the list of challenges is written primarily in a US financial reporting context, nearly all of the challenges relate to IASB projects as well:

FEI's Top 10 Financial Reporting Challenges for 2005

  • Stock Options (SFAS 123 and IFRS 2).
  • Internal Controls.
  • Revenue recognition (a joint IASB-FASB project).
  • Uncertain tax positions (FASB and IASB are working to converge their income tax standards).
  • Unremitted foreign earnings (FASB and IASB are working to converge their income tax standards).
  • Business Combinations (a joint IASB-FASB project).
  • Inventory costs (FASB has issued Statement 151 in late 2004 to converge with IAS 2).
  • Off-balance-sheet arrangements disclosures.
  • XBRL (an IFRS Taxonomy has been developed).
  • MD&A; guidance (an IASB research project).
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EFRAG seeks comments on two drafts

23 Mar 2005

The European Financial Reporting Advisory Group (EFRAG) has finalised its preliminary views on two subjects: IFRIC D12-D14 Service Concession Arrangements - draft comment letter The Fair Value Option - draft endorsement advice The drafts may be downloaded from EFRAG's Website.

Comments on both documents should be submitted to EFRAG by no later than 29 April 2005.
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Przewodnik po MSSF 1 (Guide to IFRS 1 in Polish)

23 Mar 2005

Deloitte has published the Polish translation of our popular guide to IFRS 1 First-time Adoption of IFRSs.

As with the English language version, the guide in Polish includes:
  • A summary of IFRS 1.
  • Specific issues related to first-time adoption.
  • Questions and responses.
  • A disclosure checklist.
Click here to download the English version of (PDF 2,506k, August 2004, 104 pages). Also, 300,000 copies of the Polish translation are being inserted in CD ROM format in the 23 March 2005 issue of the biggest Polish daily newspaper Rzeczpospolita.

Poland Deloitte opublikowal polskie wydanie popularnego przewodnika po MSSF 1. Podobnie jak w wersji angielskiej, polskojezyczny przewodnik zawiera:

  • Podsumowanie postanowien MSSF 1.
  • Kwestie szczególowe zwiazane z pierwszym zastosowanie MSSF.
  • Pytania i odpowiedzi.
  • Liste kontrole prezentacji i ujawnien.
Kliknij, aby sciagnac (PDF 1,426k, marzec 2005, 118 stron). Polskie wydanie przewodnika ukazalo sie równiez w wersji CD ROM wraz z wydaniem Rzeczpospolitej w dniu 23 marca 2005 roku.
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IFRIC will meet 31 March-1 April

23 Mar 2005

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 31 March and Friday 1 April 2005. The planned agenda for the meeting is as follows:Agenda of the IFRIC Meeting 31 March-1 April 2005 Thursday 31 March 2005 IFRIC 3 Emission Rights – Possible approaches for revision of IAS 38 IFRIC D9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions – Comment letter analysis IAS 19: Effect of Minimum Funding Requirements on Asset Ceiling IFRIC D6 Multiemployer Plans IAS 11: Combining and Segmenting Contracts Friday 1 April 2005 IAS 39: Impairment of an Equity Security IAS 39: Cross Currency Convertible Bonds IFRS 2: Treasury Share Transactions and Group Transactions IFRIC D11 Changes in Contributions to Employee Share Purchase Plans (ESPPs) IFRIC D10 Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment Agenda Committee: Issues Proposed for Rejection Activities of Other Interpretive Bodies .

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 31 March and Friday 1 April 2005. The planned agenda for the meeting is as follows:

Agenda of the IFRIC Meeting 31 March-1 April 2005

Thursday 31 March 2005

Friday 1 April 2005

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Notes from 17 March Board meeting

22 Mar 2005

We have combined our notes from the IASB's 15-17 March 2005 meeting onto a Single Summary Page. .

We have combined our notes from the IASB's 15-17 March 2005 meeting onto a Single Summary Page.

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Notes from IASC Foundation trustees meeting

22 Mar 2005

The Trustees of the IASC Foundation met in London on 18 March 2005. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting.

Although the IASB and IFRIC have adopted a policy of making their agenda papers available to observers at their meetings, the IASC Foundation has not yet adopted such a policy, making the discussion sometimes a bit difficult to follow, with possible adverse effects on the notes below.

IASC Foundation Trustees' Meeting18 March 2005, London

General

At the June meeting, IASB Member James Leisenring will do a presentation about the benefits of a conceptual framework, why it is necessary, and why the current one needs to be updated for developments in accounting theory over the past 20 years.

Review of IASB due process

The IASCF Trustees' Procedures Committee commended the IASB's proposed 'procedures handbook' to the Trustees. This handbook will be exposed for public comment, hopefully by the beginning of April 2005. The Board intends to comply with the procedures set out in the handbook in the meantime.

Standards Advisory Council (SAC)

  • The SAC will be reduced to something between 35 and 40 members
  • Membership will be refocused to allow SAC to concentrate on strategic, rather then technical issues (most likely fewer technicians and more analysts and preparers).
  • Chairman (not a member of the IASB, Trustee, or staff) will be appointed by the Trustees.
  • Chairman will be a half-time salaried position.
  • The Trustees' Nominating Committee hopes to have the chair (and possibly also a vice-chair) and new SAC composition ready for consideration at the Trustees June meeting
  • Many of the changes proposed originated from the SAC's own review of operations.

International Financial Reporting Interpretations Committee (IFRIC)

  • Several Trustees expressed concerns about the interpretation process. Some of these concerns were alleviated when the Board's involvement in approval was described.
  • The results of the IFRIC review of operations, including the enhancements to its process will be documented and exposed for public comment. As IFRIC is a standing committee of the IASB, it is likely that the final operating procedures document will be included in the IASB's procedures handbook.

Constitution review

General

  • A new sub-paragraph will be added regarding the necessity to take into consideration the needs of SMEs in developing standards.
  • The proposal to increase the number of Trustees from 19 to 22 was accepted.
  • After considerable discussion, the proposed geographic distribution of Trustees into six North America, six Europe, six Asia/Oceania, and four others was accepted. However, this decision is subject to confirmation in June to allow for comment from the European Commission.
  • The Trustees are likely to form a 'contact group' of interested organisations that would be involved in the process of nominating new Trustees and considering renewals. The committee would be consultative and would make recommendations to the Trustees, who would make the decisions.
  • The Foundation chairman could serve for up to six years from date of appointment, even if that extends the chairman's term beyond six years total.

Oversight

After considerable discussion, the Trustees approved proposed Constitution paragraph that the Trustees will consider but not determine the IASB's technical agenda. Some Trustees commented that protecting the Board's independence was its most important role, but that the Trustees' involvement went a long way to providing 'independence with accountability'.

Funding

The Trustees agreed to revert to something similar to the existing wording ('assume responsibility') in Constitution.

Composition of the Board

  • The size of the IASB will remain at 14.
  • The current provision for two part-time seats will remain.
  • There should be no explicit geographical balance.
  • The proposed easing of the professional background criteria was approved.

IASB voting

The proposed change was agreed: 9 votes out of 14 will be required (instead of the current simple majority) to approve an exposure draft, final IFRS, or IFRIC Interpretation.

IFRIC

  • No Constitutional changes were proposed, but the Trustees will expose the IFRIC's suggestions arising from its own review of operations and may propose changes later on.

SAC

  • The chair should be independent of the IASB and the staff.
  • The chair should be a half-time salaried position.
  • The Trustees will likely grant formal approval to the proposed SAC Charter at its meeting in June. This will be an 'operational' document, not part of the Constitution.

This summary is based on notes taken by observers at the IASCF Trustees meeting and should not be regarded as an official or final summary.

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IFAC Board highlights need for IFRSs for SME

22 Mar 2005

At its meeting last week, the Board of the International Federation of Accountants (IFAC) agreed to launch new initiatives to meet the needs of developing nations, including reinforcement of the need for International Financial Reporting Standards that can be effectively implemented for developing nations, particularly by SMEs.

Click for Press Release (PDF 70k).
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Notes from the 15 March Board meeting

22 Mar 2005

We have combined our notes from the IASB's 15-17 March 2005 Board meeting onto a Single Summary Page. .

We have combined our notes from the IASB's 15-17 March 2005 Board meeting onto a Single Summary Page.

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Agenda project pages are updated

22 Mar 2005

We have updated the following agenda project pages to reflect discussions and decisions at the Board's March 2005 meeting. Accounting Standards for Non-Publicly Accountable Entities Business Combinations II - Purchase Method Procedures Convergence of IFRSs and US GAAP: Financial Instruments Convergence of IFRSs and US GAAP: Income Taxes Convergence of IFRSs and US GAAP: Segment Reporting Financial Instruments: Disclosures Financial Instruments: Fair Value Option Financial Instruments: Puttable Instruments Financial Guarantees Contracts and Credit Insurance IFRIC: Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies Liabilities and Equity .

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Notes from fair value option round-table

22 Mar 2005

On Wednesday 16 March 2005, the Board held a public round-table meeting on the fair value option.

You will find our notes from the round-table meeting included in our March 2005 Board Meeting Summary Page.

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