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

News default Image

FEI top 10 financial reporting issues for 2006

10 Jan 2006

Financial Executives International has compiled a list of the Top 10 Financial Reporting Challenges for 2006.

While the list is written primarily in a US reporting context, nearly all of the challenges on the list relate to the IASB as well, and the FEI commentary expressly refers to the IASB in its descriptions of several of them:

  • Stock Options – SFAS 123 and IFRS 2.
  • Uncertain Tax Positions – FASB has proposed that a tax position recognised on the tax return must be probable of being sustained under audit prior to recognition in the financial statements, and the company must assume that it will be reviewed by the taxing authorities. IASB-FASB Income Tax Convergence Project.
  • Business Combinations – joint IASB-FASB Project.
  • Fair Value Measurements (FVM) – In January 2006, the FASB will discuss certain issues raised by external reviewers on the working draft of the final FVM Statement and the timing of the final FVM Statement. IASB is expected to Invite Comment on FASB's final standard.
  • Materiality – Expected SEC Staff Accounting Bulletin that would provide guidance to companies on quantifying misstatements and assessing materiality from both a balance sheet and income statement perspective.
  • XBRL – an IFRS Taxonomy has been developed.
  • Earnings Per Share – FASB international convergence project.
  • Conceptual Framework – joint IASB-FASB Project.
  • Complexity – "concern and growing frustration over the complexity in current standard-setting".
  • Pension Accounting – FASB project in response to the SEC's Off Balance Sheet study.
News default Image

Insurance Working Group meets this week

10 Jan 2006

The IASB's Insurance Working Group will meet in London on Thursday and Friday, 12 and 13 January 2006. The agenda is available on IASB's Website.

The meeting is open to public observation.
Philippines Image

Temporary SME standards in Philippines

09 Jan 2006

The Philippines has adopted IFRSs in full as its national standards starting in 2005. However, on 22 December 2005, the Philippines Securities and Exchange Commission issued PAS 101 entitled Financial Reporting Standards For Non-Publicly Accountable Entities (NPAEs), as approved by the Accounting Standards Council, to provide temporary relief to qualified small and medium-sized entities from applying the new accounting standards.

Qualifying entities may choose instead to use the former Philippines Accounting Standards that were in effect in December 2004. That option will be available for 2005 through 2007 unless revoked earlier. The SEC indicated that it is taking this action in recognition of the IASB's SME Project. The SEC adopted the IASB's draft criteria for distinguishing publicly accountable entities from non-publicly accountable – publicly accountable if (a) publicly listed, (b) holds assets in a fiduciary capacity, (c) public utility, or (d) economically significant. For Philippines purposes, economic significance means total assets over Php 250 million (approximately US$ 5 million) or total liabilities over Php 150 million in 2004. Click for (PDF 151k).
New Zealand Image

New Zealand will adopt International Standards on Auditing

08 Jan 2006

The New Zealand Institute of CAs Professional Practices Board (PPB) has decided to adopt International Standards on Auditing (ISAs) as well as the other pronouncements of the International Auditing and Assurance Standards Board, for use in New Zealand.

The Standards will be collectively referred to as New Zealand Equivalents to International Standards. The PPB notes that it may modify the International Standards "by making additions, deletions, or other amendments to the extent permitted by the IAASB's guidance for achieving international convergence with the International Standards...." All modifications will be clearly identified and subject to the PPB's due process. The PPB will issue exposure drafts inviting comment on the IAASB standards in 2006 and 2007. The final standards will be submitted to the NZICA Council for approval in 2007, with a single proposed effective date of 1 January 2008. Click for (PDF 128k).
Australia Image

Regulatory and IFRS reporting by Australian insurers

07 Jan 2006

The Australian Prudential Regulation Authority (APRA) has amended its regulatory reporting requirements for life insurance companies to reflect the adoption of IFRSs in Australia.

The changes align regulatory reporting with IFRS reporting where appropriate. At the same time, the new requirements ensure that APRA continues to receive consistent and standardisd information to monitor prudential strength following the introduction of IFRSs. The new rules took effect from 31 December 2005. APRA has granted a six-week extension for filing the first reports under the new regime. Click for (PDF 67k). In an earlier news story Dated 1 December 2005, we outlined other APRA proposals relating to the adoption of IFRSs in Australia by deposit-taking institutions and general insurers. Those proposals address such issues as fair value measurement, employer sponsored defined benefit superannuation fund surpluses and deficits, and loan loss provisioning. Comments on that package are due by 16 January 2006. Link to APRA's Website.
IASC Foundation (blue) Image

New IASCF trustee list posted

07 Jan 2006

A new chairman and seven new trustees of the IASC Foundation took office on 1 January 2006. We have posted an Updated List of IASCF Trustees.

One vacancy remains. Click here for More Info about the IASCF.
News default Image

Financial Instruments Working Group meets next week

06 Jan 2006

The IASB's Financial Instruments Working Group will meet in London on Monday and Tuesday, 9 and 10 January 2006. Discussions on Monday 9 January are devoted to derecognition.

Discussions on Tuesday 10 January will focus on fair value measurement and day-one gains. The agenda is available on the IASB's Website. The meeting is open to public observation.
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

Agenda for IFRIC meeting 12-13 January 2006

06 Jan 2006

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 12 January and Friday 13 January 2006. The agenda for the meeting is below: Thursday 12 January 2006 Introduction - Opening remarks; administrative matters; minutes of the December 2005 IFRIC meeting Hedging Inflation Risk - Presentation IFRIC D15 Reassessment of Embedded Derivatives – Staff proposal for a final Interpretation Review of Tentative Agenda Decision IFRS 6 Exploration for and Evaluation of Mineral Resources - Application of 'full cost method' Recommendations by Agenda Committee regarding requests for IFRIC agenda items: Separate financial statements issued before consolidated financial statements Liability/equity classification Service Concession Arrangements - Project plan; double recognition of revenue Friday 13 January 2006 (Morning Only) IFRIC Handbook – Staff proposals for a draft Handbook Customer Loyalty Programmes – Staff proposal for a draft Interpretation Recommendations by Agenda Committee regarding requests for IFRIC agenda items (continued from Thursday): IFRS 3 Business Combinations – Puts held by minority interests .

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 12 January and Friday 13 January 2006. The agenda for the meeting is below:

Thursday 12 January 2006

  • Introduction - Opening remarks; administrative matters; minutes of the December 2005 IFRIC meeting
  • Hedging Inflation Risk - Presentation
  • IFRIC D15 Reassessment of Embedded Derivatives – Staff proposal for a final Interpretation
  • Review of Tentative Agenda Decision
    • IFRS 6 Exploration for and Evaluation of Mineral Resources - Application of 'full cost method'
  • Recommendations by Agenda Committee regarding requests for IFRIC agenda items:
    • Separate financial statements issued before consolidated financial statements
    • Liability/equity classification
  • Service Concession Arrangements - Project plan; double recognition of revenue

Friday 13 January 2006 (Morning Only)

  • IFRIC Handbook – Staff proposals for a draft Handbook
  • Customer Loyalty Programmes – Staff proposal for a draft Interpretation
  • Recommendations by Agenda Committee regarding requests for IFRIC agenda items (continued from Thursday):
    • IFRS 3 Business Combinations – Puts held by minority interests
IFAC (International Federation of Accountants) (lt gray) Image

Proposed international audit standard on related parties

05 Jan 2006

The International Auditing and Assurance Standards Board has released for comment a proposed revision to International Standard on Auditing (ISA) 550 Related Parties.

The current standard requires the auditor to perform certain specified procedures. The proposed standard would extend current practice by requiring the auditor to obtain an understanding of the nature and business rationale of an entity's related party relationships and transactions sufficient to identify, assess, and respond to the risks of material misstatement resulting from them. It also places greater emphasis on the difficult task for the auditor of attempting to identify related party relationships and transactions not identified or disclosed by management. The revision also places new emphasis on evaluating the effects of related party relationships and transactions on the financial statements, even in circumstances where the financial reporting framework does not establish related party accounting or disclosure requirements. Comments on the exposure draft are due by 30 April 2006. Click for:
News default Image

IASCF 'convergence conference' set for April

05 Jan 2006

The International Accounting Standards Committee (IASC) Foundation will host a two-day conference International Financial Reporting Standards–Implications of Convergence in Frankfurt on 6 and 7 April 2006. The conference has been designed as part of the IASC Foundation's education initiative to provide an opportunity for preparers, auditors, analysts and investors to exchange views and to discuss with standard-setters and regulators the IASB-FASB convergence programme.

The conference will also provide a forum for discussion of implementation issues. Click for Press Release (PDF 65k).

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.