This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

News

EFRAG to consider EC's IAS 39 'carve out'

2004-09-15

The Technical Expert Group of the European Financial Reporting Advisory Group (EFRAG) will hold an open meeting on 22 September 2004 in Brussels to evaluate the proposal of the European Commission to adopt IAS 39 for use in Europe minus two sections, as discussed in our news stories of 9 and 10 September 2004.

The two sections relate to (a) the prohibition on hedge accounting for core deposits and (b) the fair value option. The purpose of EFRAG's meeting is to consider whether IAS 39 with these two sections 'carved out' would "lead to a technically robust, sound, and consistent solution. The aim is not to evaluate whether the carve-out solution in principle is the preferred option." EFRAG invites interested parties to provide comments on the carve-out proposal by 21 September 2004.

EFRAG will meet with European standard setters

2004-09-14

The European Financial Reporting Advisory Group (EFRAG) will meet with representatives of all European national standard setters in Brussels on 6 October 2004. The main agenda items will be the IASB projects on measurement, concession arrangements, and the IASB's exposure drafts proposing amendments to IAS 39. The meeting will take place at FEE, Rue de la Loi 83, 1040 Brussels. .

The European Financial Reporting Advisory Group (EFRAG) will meet with representatives of all European national standard setters in Brussels on 6 October 2004. The main agenda items will be the IASB projects on measurement, concession arrangements, and the IASB's exposure drafts proposing amendments to IAS 39. The meeting will take place at FEE, Rue de la Loi 83, 1040 Brussels.

Deloitte comment letter on IFRIC D8

2004-09-11

We have submitted our letter of comment on IFRIC Draft Amendment D8 Members' Shares in Co-operative Entities.

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

We believe the draft Interpretation is an appropriate and practical interpretation of IAS 32 Financial Instruments: Disclosure and Presentation and support its issuance. We note the draft Interpretation addresses two significant matters of principle – adopting a portfolio approach (BC14-BC16) and reclassification (BC17). While we are cautious about the ramification such an interpretation may have when applied by analogy, we note that these issues are currently being addressed in the IASB's project on the distinction between debt and equity. Pending further consideration by the IASB, we believe the IFRIC's approach is appropriate under current IFRS.

You will find all past Deloitte comment letters to IASB/IASC Here.

Discussion paper on accounting for business combinations

2004-09-11

Deloitte (Australia) has published the second in their new series of Discussion Papers on Australian equivalents to International Financial Reporting Standards ('A-IFRSs'): (PDF 1,088k, 52 pages).

The objective of this Discussion Paper is to provide an Australian perspective on the significant convergence areas of business combinations, intangibles, and impairment. The new and modified concepts and procedures for Australian entities are highlighted and crossed referenced to the Deloitte global publications (PDF 1,894) and (PDF 2,506k).

September 2004 Accounting Roundup newsletter

2004-09-11

We have posted the of Accounting Roundup (PDF 265k), a newsletter published by Deloitte & Touche (USA).

Accounting Roundup summarises recent accounting and financial reporting developments and provides Internet links to related content. This issue has information about developments at FASB (including FSP 142 on oil and gas companies, AICPA guide on real estate time sharing, and summaries of recent FASB meetings), SEC (including postponement of accelerated filing dates and approval of several PCAOB documents). You will find all Past Issues Here.

Deloitte comments on IASB SME preliminary views

2004-09-11

The Deloitte letter of comment on the IASB's Discussion Paper Preliminary Views on Accounting Standards for Small and Medium-sized Entities (SMEs) recommends creation of a separate committee to develop international accounting standards for SMEs.

Its standards would be subject to approval by the IASB. Click to (PDF 111k). Deloitte's overall view:

We believe that this consultation is timely as it will allow the IASB to consider the comments and to amend, as appropriate, its preliminary views before proceeding to an exposure draft stage. We have serious reservations about certain aspects of this project, which we detail in the appendix to this letter. In our view, if the IASB were to continue the project based on its preliminary views, then the resulting standards for small and medium-sized entities (SMEs) would be of limited practical use, would not address the needs of SMEs and would not reduce significantly the number of separate accounting regimes for SMEs around the world. We believe that this SME project is very important politically for the IASB's standing around the world. The Board's consultations with national standard-setters and its own Standards Advisory Council have demonstrated the need for this project and the priority attached to it.

We acknowledge the current time and work pressures on the Board. We suggest that the IASB or the International Accounting Standards Committee Foundation (IASCF) considers establishing a committee focused on SME accounting. Responsibility for developing the Standards for SMEs would be deputed to this committee, with final approval by the IASB, in the same way as responsibility for developing Interpretations rests with IFRIC subject to final Board approval. This project needs adequate attention to ensure the correct foundations are in place.

You will find all past Deloitte comment letters to IASB/IASC Here.

Hong Kong GAAP now virtually aligned with IFRSs

2004-09-10

Hong Kong Financial Reporting Standards are developed by the Financial Accounting Standards Committee of the Hong Kong Institute of CPAs.

They take effect following approval of the Institute's Council. The Council has mandated that the FASC develop standards to achieve 100% convergence with IFRSs. Except for effective date and transition, the standards are now word-for-word identical.

ARC concurs with IAS 39 "carve out" for Europe

2004-09-10

Several newspapers have reported that the European Commission's Accounting Regulatory Committee (ARC) has agreed in principle to support the Commission's proposal that IAS 39 be adopted for use in Europe minus two sections – the prohibition on hedge accounting for core deposits and the fair value option (see our news report of 9 September 2004).

The ARC is expected to take a final vote around 1 October. Information can be found on the EC Accounting Website. In July, Deloitte urged that IAS 39 be adopted in its entirety, citing a number of "far reaching and damaging" consequences for the transition to IFRSs in Europe in 2005 if there is not a "fully endorsed and wholly supported standard on the recognition and measurement of financial instruments".

IASB chairman testifies before US Senate committee

2004-09-10

In testimony yesterday in Washington before the US Senate Committee on Banking, Housing and Urban Affairs, IASB Chairman Sir David Tweedie provided the committee with an update on the work of the IASB and on efforts toward convergence of IFRSs with FASB standards since his last testimony before the committee in February 2002. An excerpt: The effective functioning of capital markets is essential to our economic well-being.

In my view, a sound financial reporting infrastructure must be built on four pillars: (1) accounting standards that are consistent, comprehensive, and based on clear principles to enable financial reports to reflect underlying economic reality; (2) effective corporate governance practices, including a requirement for strong internal controls, that implement the accounting standards; (3) auditing practices that give confidence to the outside world that an entity is faithfully reflecting its economic performance and financial position; and (4) an enforcement or oversight mechanism that ensures that the principles as laid out by the accounting and auditing standards are followed. The Sarbanes-Oxley Act refocused attention on these pillars and provided many useful approaches to improve the financial reporting environment. Click to Download the Text of Sir David's testimony (PDF 38k).

Listed companies in Sri Lanka may use IFRSs

2004-09-09

As a result of a policy decision recently adopted by the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAAMB), listed companies in Sri Lanka may choose to prepare their financial statements in accordance with International Financial Reporting Standards, rather than Sri Lankan GAAP.

We have modified our Table of Use of IFRSs by Country accordingly.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.