News

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Exposure Draft on measurement of financial liabilities

11 May 2010

The IASB has published for public comment an exposure draft (ED) proposing to amend the way the fair value option in IAS 39 Financial Instruments: Recognition and Measurement is applied with respect to financial liabilities.

Many investors and others have said that volatility in profit or loss resulting from changes in an entity's own credit risk is counter-intuitive and does not provide useful information – except for value changes relating to derivatives and liabilities held for trading (such as short sales). The IASB is proposing, therefore, that all gains and losses resulting from changes in 'own credit' for those financial liabilities that an entity chooses to measure at fair value should be recognised as a component of 'other comprehensive income' (OCI), not in profit or loss. Such gains or losses would be presented using a 'two-step approach':
  • As a first step, an entity would present the full change in fair value in profit or loss.
  • In the second step, the portion relating to changes in an entity's own credit risk would be presented as an offsetting entry in profit or loss and presented in OCI.

The ED does not propose any other changes for financial liabilities. Consequently, the proposals will affect only those entities that elect to apply the fair value option to their financial liabilities. Importantly, those who prefer to bifurcate financial liabilities when relevant may continue to do so. That is consistent with the widespread view that the existing requirements for financial liabilities work well, other than the 'own credit' issue that these proposals cover.

The proposals in the ED are presented as a self-contained issue for public comment. However, any finalised requirements would be included in IFRS 9 Financial Instruments in the chapter on classification and measurement of financial liabilities. Also, any guidance in IAS 39 or IFRS 7 Financial Instruments: Disclosures that is still relevant to the finalised requirements would be moved to IFRS 9 as well.

Comment deadline on ED/2010/4 Fair Value Option for Financial Liabilities is 16 July 2010. Click for IASB Press Release (PDF 100k). Link to IAS Plus Project Page.

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Agenda for May 2010 IASB meeting

09 May 2010

The IASB will hold its monthly meeting for May 2010 at its offices in London on Monday to Thursday 17-20 May 2010 (no meeting on Friday 21 May).

Portions of the meeting are joint meetings with FASB. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting.

IASB Board Meeting Agenda17-20 May 2010, London

Monday 17 May 2010

IASB-FASB Joint Meeting (13:00-18:45pm London Time)

Tuesday 18 May 2010

IASB-FASB Joint Meeting (08:30-18:15pm London Time)

Wednesday 19 May 2010

IASB-FASB Joint Meeting (08:00-13:30pm London Time)

IASB Meeting (14:00-17:30pm London Time)

Thursday 20 May 2010

IASB Meeting (09:30-14:45pm London Time)

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Notes from the May 2010 IFRIC meeting

08 May 2010

The IFRS Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday, 6 and 7 May 2010. We have published preliminary and unofficial notes taken by Deloitte observers at the meeting.

Click through for direct access to the notes:

Thursday 6 May 2010 (10:15-18:15)

Introduction

Active Committee projects

Review of Tentative Agenda Decisions published in March IFRIC Update

Items for continuing consideration

New items for initial consideration

Friday 7 May 2010 (09:00-12:30)

New items for initial consideration (continued from previous day)

Administrative session

You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

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Impact of Brazil's move to IFRSs on US companies

08 May 2010

Starting in 2010, the securities and banking regulators in Brazil are requiring all listed companies and all banks (listed and unlisted) to adopt IFRSs for their consolidated financial statements.

That change to the existing statutory reporting environment will affect Brazilian subsidiaries of US companies. In most cases, comparative data are required for 2009. To help our clients understand and plan for the challenges, costs, tax impacts, and long-term benefits of the change, Deloitte has published a briefing document titled IFRS: Changes in the Brazil Statutory Reporting Environment (PDF 352k). This briefing document summarises key issues related to the move to IFRSs in Brazil, including:
  • Overview of the changes to the existing Brazilian statutory environment
  • Impact on Brazilian subsidiaries of US companies
  • Timeline considerations for this change
  • Steps that US companies should take in light of these developments
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Insurance accounting newsletter in German

07 May 2010

Deloitte (United Kingdom) is publishing a series of Insurance Accounting Newsletters.

We post these regularly on our IAS Plus Insurance Project Page.
Deloitte (Germany) is translating selected insurance newsletters into German. The latest is:
All of the earlier insurance newsletters available in German are on our Germany Country Page.

 

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Model IFRS financial statements for 2009 in Russian

07 May 2010

Deloitte (Russia) has published International Financial Reporting Standard – Model financial statements for 2009 in the Russian language.

These financial statements are a translation of the English language version.
Click to download the Russian translation.
We have more information on financial reporting in Russia Here. Our model financial statements page is Here.

 

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New IPSASB public sector handbook

07 May 2010

The International Public Sector Accounting Standards Board (IPSASB) has published its 2010 Handbook of International Public Sector Accounting Pronouncements.

In two volumes, the handbook contains all current IPSASB pronouncements, including 31 accrual-based standards and the IPSASB's cash basis standard. Five of those standards were approved by the IPSASB in 2009, including requirements and guidance for all aspects of accounting for financial instruments, as well as intangible assets and agriculture. Click for Press Release (PDF 40k). It includes a link to download the handbook from the IPSASB website.
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IASB amends seven IFRSs

06 May 2010

The IASB has issued Improvements to IFRSs – a collection of amendments to seven IFRSs – as part of its program of annual improvements to its standards.

The IASB uses the annual improvements project to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project. These amendments had been proposed in exposure drafts issued in August 2008 and August 2009. Most of the amendments are effective for annual periods beginning on or after 1 January 2011, although entities are generally permitted to adopt them earlier.

Click for IASB Press Release (PDF 104k).

 

IFRS Subject of amendment

IFRS 1 First-time Adoption of IFRSs

Accounting policy changes in the year of adoption

Revaluation basis as deemed cost

Use of deemed cost for operations subject to rate regulation

IFRS 3 Business Combinations

Transition requirements for contingent consideration from a business combination that occurred before the effective date of the revised IFRS

Measurement of non-controlling interests

Un-replaced and voluntarily replaced share-based payment awards

IFRS 7 Financial Instruments: Disclosures

Clarification of disclosures

IAS 1 Presentation of Financial Statements

Clarification of statement of changes in equity

IAS 27 Consolidated and Separate Financial Statements

Transition requirements for amendments arising as a result of IAS 27

IAS 34 Interim Financial Reporting

Significant events and transactions

IFRIC 13 Customer Loyalty Programmes

Fair value of award credits

 

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Accounting Roundup – April 2010

05 May 2010

We have posted the April 2010 Edition of Accounting Roundup published by Deloitte & Touche LLP (United States). The newsletter is now organised by topic rather than by standard-setter.

Topics covered in this issue include:

Cash Flows

  • Effect of ASUs 2009-16 and 2009-17 on Presentation of Trade Receivable Financing Arrangements in the Statement of Cash Flows
Consolidations
  • CAQ Publishes Alert on ICFR Requirements for Entities Newly Consolidated Under Statement 167 (Codified in ASC 810)
  • CAQ Publishes Alert on Statement 167 (Codified in ASC 810) Practice Issues
Distinguishing Liabilities From Equity
  • An Update on the FASB's and IASB's Joint Project on Financial Instruments With Characteristics of Equity Fair Value Measurements and Disclosures
  • Valuation Resource Group Discusses Four Topics at April 12 Meeting
  • Financial Reporting Considerations Related to Implementation of Fair Value Measurement Disclosures Required by ASU 2010-06
Income Taxes
  • SEC Staff Announcement on Accounting for the Different Enactment Dates of the Health Care Reform Bill and Reconciliation Measure
  • Significant Changes to Statute of Limitations Under the HIRE Act
Receivables
  • FASB Issues ASU on the Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single
Asset Retirement Benefits
  • IASB Issues Exposure Draft on Improvements to Defined Benefit Accounting
  • Health Care Legislation - Impact on Employee Benefits Accounting
Revenue Recognition
  • FASB Issues ASU on Milestone Method of Revenue Recognition
Stock Compensation
  • FASB Issues ASU on the Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Primarily Trades
Transfers and Servicing
  • FASB Chairman Sends Letter to House Financial Services Committee Explaining Accounting Guidance Relevant to Lehman Accounting Practices
Industry Accounting
  • FASB Issues ASU on Accruals for Casino Base Jackpot Liabilities
  • FASB Issues ASU on How Investments Held Through Separate Accounts Affect an Insurer's Consolidation Analysis of Those Investments
  • FASB Issues ASU to Amend SEC Content Within Oil and Gas Guidance
  • FASB Issues Exposure Draft on Measuring Charity Care for Disclosure
  • FASB Issues Exposure Draft on Presentation of Insurance Claims and Related Insurance Recoveries
  • IASB Publishes Discussion Paper on Extractive Activities
Other Accounting
  • A Summary of the Financial Reporting and Disclosure Implications of the Health Care Reform Legislation
  • FAF/FASB and XBRL US Labs Announce Research Initiative
  • FAF Names Louis Matherne as FASB Chief of Taxonomy Development
Other SEC Matters
  • SEC Issues Proposed Rule on Large Trader Reporting System SEC Issues Proposed Rule on Access to Listed Options Exchanges
  • SEC Issues Proposed Rule on Asset-Backed Securities
  • SEC Publishes Final Rule on Adoption of Updated Edgar Filer Manual
  • SEC Regulations Committee Releases Highlights of September 2009 Meeting
Other Auditing
  • A Summary of the April 7-8 Meeting of the PCAOB's Standing Advisory Group
  • PCAOB Issues Staff Audit Practice Alert on Significant Unusual Transactions
  • PCAOB Issues Proposed Auditing Standard on Communications With Audit Committees
  • AICPA Issues Standard for Reporting on Controls at a Service Organization
FASAB Matters
  • FASAB Issues Standard on Financial Reporting for Social Insurance Programs
  • FASAB Issues Standard on Accounting for Federal Oil and Gas Resources
Other International
  • IASC Foundation Releases IFRS Taxonomy 2010
  • Paul Pacter Appointed to the IASB
  • IASB and FASB Issue Quarterly Progress Report on Commitment to the Memorandum of Understanding

 
You will find past issues of Accounting Roundup Here.

 

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Notes from special 4 May 2010 IASB-FASB meeting

05 May 2010

The IASB and FASB held a special joint meeting on Tuesday 4 May 2010 at the IASB's offices in London.

Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

 

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