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Deadline extended for survey on joint ventures

18 Aug 2004

In our News Story of 15 July, we had reported an announcement on the US FASB website that the IASB is conducting a research project that is the first phase of a longer-term effort to improve IAS 31 Interests in Joint Ventures.

Our story noted that the Australian Accounting Standards Board (AASB) is leading a team of standard setters from Hong Kong, Malaysia, and New Zealand in conducting the research project and that responses to the survey were requested by 28 July 2004. The purpose of this survey is to identify and analyse the characteristics of these investments to assist in revising IAS 31. The IASB's own website has now posted an announcement of the survey:

As part of an IASB research project, the Australian Accounting Standards Board is conducting a survey of the accounting for interests in joint venture arrangements. Participation in the survey by entities involved in joint arrangements will provide valuable input, helping the research team and the IASB to understand better the ways in which joint arrangements are structured.

The response request deadline has been extended to 30 September 2004. The survey may be completed on-line or may be downloaded from the AASB Website.

FASAC survey includes international convergence

18 Aug 2004

The Financial Accounting Standards Advisory Council (FASAC), advisory body to the US FASB, annually conducts a survey of the views of FASAC members and other FASB constituents on what FASB's priorities should be.

The 2004 FASAC survey addresses views on international convergence questions, including:

  • Whether the FASB should, without compelling domestic reasons to do so, necessarily add a project to its agenda because the IASB does.
  • Whether FASB should give higher priority to agenda projects that would lead to international convergence.
  • How FASB should weigh the costs versus the benefits in deciding to add a convergence project to its agenda.
Another group of questions relates to differential accounting standards for certain entities, such as privately held entities or SMEs. Responses are sought by 27 August 2004. Click to Download the Survey (PDF 71k).

New approaches to three major IASB agenda projects

16 Aug 2004

In "The Chairman's Page–A Personal View" in the July 2004 issue of the IASB's Insight newsletter, IASB Chairman Sir David Tweedie discusses the Board's revised approach to three major agenda projects: Insurance Contracts, Financial Instruments, and Performance Reporting.

In the next several weeks, the IASB will announce the membership of new advisory groups on those projects. Sir David indicated that the Board's next steps on each of the projects will be to issue discussion papers. "In due course exposure drafts will follow, but that may well be several years into the future."

I want to emphasise that we have not reached any decisions on these three projects. The advisory groups will therefore start with a clean slate. The IASB has made no commitment to a full fair value approach on insurance and financial instruments.... The field tests on the IASB's original proposals on performance reporting showed that we needed to develop alternative approaches.

Latest newsletter from Deloitte's Global Offerings Services

16 Aug 2004

We have posted the July-August 2004 edition of Deloitte's (PDF 411k).

This newsletter is published by Deloitte's Global Offerings Services group, which is a global team of practitioners assisting non-US companies and non-US practice office engagement teams in applying US and international accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. You can find past issues Here.

ICAEW letter to Commissioner Bolkestein re IAS 39

15 Aug 2004

The Institute of Chartered Accountants in England and Wales has written to EC Internal Market Commissioner Frits Bolkestein urging the European Commission to adopt IAS 39 in its entirety as part of the full suite of International Financial Reporting Standards for use in Europe.

An excerpt from the letter is below. Click for full text of (PDF 354k).

We understand that the Commission is considering deleting certain sections of lAS 39 and proposing the amended standard for endorsement. We are greatly concerned by this development. Introducing differences between IFRS in Europe and IFRS, as set by the International Accounting Standards Board (IASB), is likely to lead to long-term damage to the credibility and quality of financial reporting in Europe. We note that the idea of European financial reporting standards is rejected in the IAS Regulation (No. 1606/2002) itself: Recital 2 states that '... it is important that the financial reporting standards applied by Community companies participating in financial markets are accepted internationally and are truly global standards.'

IAS Plus newsletters for 3Q 2004 are published

14 Aug 2004

We have posted the July 2004 edition of our quarterly -->IAS Plus --> newsletter in two versions: (PDF 22 pages 316k) (PDF 31 pages 432k) Both editions have the same news about international financial reporting, including updates on IASB projects and Board activities and news about IFRS in Europe, the United States, and elsewhere in the world.

Additionally, the Asia-Pacific edition has updates on accounting standard setting activity in a number of countries in that region. You will find all past issues Here.

Argentina moves toward International Standards on Auditing

13 Aug 2004

The Board of the Argentina Federation of Professional Councils of Economic Sciences (Federacion Argentina de Consejos Profesionales de Ciencias Economicas - FACPCE) has agreed to consider adopting International Standards on Auditing issued by IFAC's International Auditing and Assurance Standards Board (IAASB) as Argentine auditing standards for periods beginning 1 July 2005. "FACPCE reserves the right to adopt the ISAs in total, or partially, with or without differences." Click for FACPCE Website. .

The Board of the Argentina Federation of Professional Councils of Economic Sciences (Federacion Argentina de Consejos Profesionales de Ciencias Economicas - FACPCE) has agreed to consider adopting International Standards on Auditing issued by IFAC's International Auditing and Assurance Standards Board (IAASB) as Argentine auditing standards for periods beginning 1 July 2005. "FACPCE reserves the right to adopt the ISAs in total, or partially, with or without differences." Click for FACPCE Website.

McCreevy will be new EC Commissioner for Internal Market

13 Aug 2004

José Manuel Barroso, President-designate of the European Commission (top photo), has announced the policy portfolios he has allocated to each of the 25 new EC Commissioners.

Charlie McCreevy (bottom photo), who is an Irish Chartered Accountant, will be Commissioner for Internal Market and Services, replacing Frits Bolkestein. Among Mr. McCreevy's responsibilities will be accounting and financial reporting, including the implementation of IFRSs in Europe. The new Commission will take office on 1 November, subject to approval by the European Parliament. The Parliament can vote only on the whole body and not on individual Commissioners. The EC decision on endorsing IAS 39 is expected to be made by the current Commissioners before 1 November. Click for:

Model IFRS financial statements for 2005

11 Aug 2004

We have posted Deloitte's for the year ended 31 December 2005 (PDF 609k).

These model financial statements were developed to illustrate the typical disclosures that will be required of a United Kingdom listed company with subsidiaries and associates, reporting under IFRSs for both the company and consolidated financial statements, for 2005. Material that is included to meet specific UK requirements and specific references to UK GAAP have been highlighted on a yellow background. Otherwise, these model financial statements would be appropriate for entities following IFRSs in any country. The model financial statements are based on standards issued at 31 May 2004 that are expected to be effective for years beginning on or after 1 January 2005. They also reflect the proposed amendments to IAS 19 issued by the IASB in April 2004 on the assumption that they will be approved and become effective in 2005. Model IFRS financial statements and a disclosure checklist for 2003 are available Here.

SEC Chief Accountant speaks about IASB-FASB convergence

11 Aug 2004

In a presentation at the annual meeting of the American Accounting Association, SEC Chief Accountant Donald T.

Nicolaisen addressed a range of issues, including FASB and IASB cooperation:

The FASB and IASB support moving toward a single conceptual framework that would be used by both Boards. The work of these two Boards, and other national standards setters involved in the IASB process, is an important part of building and maintaining an effective global financial reporting infrastructure. I support global convergence. It's in the best interest of investors.

In response to a question, Mr. Nicolaisen said that the Commission will undertake a study of the IFRS reconciliations to US GAAP that are submitted for 2005 and, based on the findings, will determine whether to eliminate the reconciliation. He indicated his hope that the reconciliation could be eliminated by the end of the current decade. Click for Full Text of Mr. Nicolaisen's Remarks (link to SEC website).

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