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Reminder – eight comment deadlines coming up

03 Sep 2004

Just in case some of us put these out of our minds during our summer holidays, we thought it would be helpful to remind IASPlus visitors of the eight IASB and IFRIC comment deadlines that loom ahead in the next month and a half: D7 Amendment to SIC 12 Consolidation of SPEs – 13 September 2004 D8 Members' Shares in Co-operative Entities – 13 September 2004 D9 Employee Benefit Plans with a Promised Return – 21 September 2004 Discussion Paper: SMEs – 24 September 2004 ED: Financial Guarantee Contracts and Credit Insurance – 8 October 2004 ED: Cash Flow Hedge Accounting of Forecast Intragroup Transactions – 8 October 2004 ED: Transition and Initial Recognition of Financial Assets and Liabilities – 8 October 2004 ED 7: Financial Instruments: Disclosures – 22 October 2004 .

Just in case some of us put these out of our minds during our summer holidays, we thought it would be helpful to remind IASPlus visitors of the eight IASB and IFRIC comment deadlines that loom ahead in the next month and a half:

Deloitte's global transfer pricing strategy matrix

03 Sep 2004

Deloitte's Strategy Matrix for Global Transfer Pricing (7th edition) is a compilation of essential information regarding the transfer pricing regimes in 39 jurisdictions around the world and the OECD.

The 2004 edition includes a new country: Norway. The information regarding the 38 countries included in last year's edition has been thoroughly reviewed and updated to reflect any changes implemented since that edition. The book represents the collective knowledge of the members of Deloitte's Global Transfer Pricing Service Line. Given the complexity of transfer pricing issues, this book should be the starting point rather than the finish line for all your transfer pricing inquiries. If you seek assistance, the book identifies transfer pricing specialist contact people in Deloitte member firms in each of the 39 jurisdictions. Click to download Deloitte's 2004 Strategy Matrix for Global Transfer Pricing (PDF 1,421k). [Note: This 2004 edition has gone out of date. You can find a later version Here.]

Deloitte guide to compliance with SOX Section 404

03 Sep 2004

Deloitte & Touche LLP has released Taking Control, a comprehensive guide to compliance with Section 404 of the Sarbanes Oxley Act.

That section requires the management of a company registered with the SEC to assess and report on the effectiveness of the company's internal control over financial reporting, and requires auditors to attest to and report on management's assessment. Section 404 applies to "accelerated filers" effective for financial years ending on or after 15 November 2004. The date is deferred until years ending on or after 15 July 2005 for foreign (non-US) registrants and non-accelerated filers. Taking Control targets non-accelerated filers and foreign private issuers that may be just getting their work under way, as well as companies currently involved in their section 404 projects. Click to download (PDF 397k).

Strong US support for uniform global accounting standards

03 Sep 2004

& Roughly three-fourths of 101 US senior financial executives surveyed support expensing stock options.

By about the same percentage, the executives believe that there should be uniform global accounting standards and that greater transparency is needed in financial reporting. The survey was conducted by DePaul University for Grant Thornton LLP. Click for Press Release (PDF 94k).

Non-US companies registered with the SEC

02 Sep 2004

We have posted to our Statistics Page the list of non-US companies registered with the SEC at 31 December 2003, based on lists recently posted on the SEC's Website.

At 31 December 2003 there were 1,232 foreign registrants (compared to 1,319 a year earlier) from 57 countries (compared to 59 a year earlier). Click to download:

New IFAC policy on translation of standards

02 Sep 2004

A new Policy Statement on Translation of Standards and Guidance Issued by the International Federation of Accountants has been issued by IFAC to encourage high-quality translations.

The policy applies to standards and guidance issued by IFAC's Education Committee, International Auditing and Assurance Standards Board, and Public Sector Committee. The policy addresses such issues as responsibilities of the translating body, design and implementation of a translation plan, translation of key words, and the translating body's translation process. English is the official language of IFAC standards and guidance, and in the event of any dispute as to the meaning of a translated word or phrase, IFAC will refer to the English meaning thereof. Click to Download IFAC's Translation Policy from IFAC's website (PDF 204k).

Deloitte comment letter on IFRIC D7

01 Sep 2004

We have submitted our letter of comment on IFRIC Draft Amendment D7 to the Scope of Interpretation SIC 12 Consolidation—Special Purpose Entities.

Click to (PDF 53k). Deloitte's overall view:

We support the removal of 'equity compensation plans' from the scope exemption in SIC 12 and encourage the IFRIC to continue its project on providing guidance to determine whether these plans should or should not be consolidated. However, we question whether the additional change – unrelated to equity compensation plans – that eliminates defined contribution plans accounted for under IAS 19 from the exemption is appropriate at this time.

PCAOB standard on audit documentation is approved

01 Sep 2004

The US Securities and Exchange Commission has approved the Public Company Accounting Oversight Board's Auditing Standard No.

3 Audit Documentation effective for audits of financial statements of companies with financial years ending on or after 15 November 2004. AS 3 establishes general requirements for documentation that an auditor should prepare and retain in connection with engagements conducted pursuant to PCAOB standards. Such engagements include an audit of financial statements, an audit of internal control over financial reporting, and a review of interim financial information. In general, the retention period is seven years. AS 3 applies to both US-based and foreign auditors of SEC registrants. AS 3 notes that section 106(b) of the Sarbanes-Oxley Act of 2002 imposes certain requirements concerning production of the work papers of a foreign public accounting firm on whose opinion or services the auditor relies. Compliance with AS 3 does not substitute for compliance with Section 106(b) or any other applicable law. You can Download Details from PCAOB's Website (PDF 174k).

Lists of German companies currently using IFRSs and US GAAP

31 Aug 2004

The German Accounting Standards Committee has updated its lists of large German companies that are currently applying IFRSs, as well as those now using US GAAP and German GAAP.

These lists sorted by the 30 DAX, 50 MDAX, 50 SDAX, and 30 TecDAX companies. They are part of a series of frequently asked questions (FAQ) about German financial reporting, in English. Here is the Link to the FAQ File on the website of the GASC.

Graded vesting of share options – FASB to differ from IFRS 2

31 Aug 2004

A decision of the US Financial Accounting Standards Board would create a significant difference between US GAAP and IFRSs on how to recognise the expense for share options with graded vesting.

Graded vesting means that portions of a single option grant will vest on two or more dates. The IFRS 2 requirement is explained in IFRS 2.IG11:

For example, suppose an employee is granted 100 share options, which will vest in instalments of 25 share options at the end of each year over the next four years. To apply the requirements of the IFRS, the entity should treat each instalment as a separate share option grant, because each instalment has a different vesting period, and hence the fair value of each instalment will differ (because the length of the vesting period affects, for example, the likely timing of cash flows arising from the exercise of the options).

That had been FASB's proposal as well. However, after considering the comments on its current exposure draft, FASB has now decided to give entities the choice of recognising the expense on a straight-line basis. Treating each instalment as a separate grant has the effect of recognising more expense up front.

Correction list for hyphenation

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