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News

IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

IFRIC publishes two final interpretations

02 Dec 2004

The International Financial Reporting Interpretations Committee (IFRIC) has released two final Interpretations, on emission rights and leases.

The two final Interpretations are:

  • IFRIC 3 Emission Rights
  • IFRIC 4 Determining Whether an Arrangement Contains a Lease.
Click for Press Release (PDF 38k).

 

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG invites comments on IFRIC 2

02 Dec 2004

The European Financial Reporting Advisory Group (EFRAG) has Invited Comments on its draft letter proposing to advise the European Commission to endorse IFRIC 2 Members' Shares in Co-operative Entities and Similar Instruments for use in Europe.

Comments are due by 6 January 2005.
Australia Image

Australian accounting alert on hedge documentation

02 Dec 2004

We have posted a , which is reminder to clients about the requirement to have hedge documentation in place at transition date on first time adoption of AASB 139 (PDF 41k).

Because AASB 139 is similar to IAS 39, the reminder is equally applicable to companies around the world that are adopting IAS 39 for the first time in 2005. Click for links to all Past Australian Accounting Alerts.
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November 2004 EITF Roundup posted

01 Dec 2004

We have posted the November 2004 edition of EITF Roundup, a newsletter published by the National Office Accounting Standards and Communications Group of Deloitte & Touche LLP (USA).

This edition of EITF Roundup provides an overview of the issues discussed, consensuses reached, and administrative matters at the 17-18 November 2004 meeting of FASB's Emerging Issues Task Force. Click to (PDF 476k). Links to all past issues are Here.
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

IFRIC will meet on 2 December 2004

30 Nov 2004

The International Financial Reporting Interpretations Committee will meet at the IASB's offices in London on Thursday, 2 December 2004. The agenda for the meeting is as follows: IFRIC Interpretation 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Funds Accounting for Service Concessions – The IFRIC will consider three draft Interpretations with a view to agreeing them for publication: D11 Service Concession Arrangements - Determining the Accounting Model D12 Service Concession Arrangements - The Financial Asset Model D13 Service Concession Arrangements - The Intangible Asset Model IFRS 2 - Changes in Employee Contributions to ESPPs Scope of IFRS 2 IFRS 2 - Treasury Share Transactions and Group Transactions IAS 39 Financial Instruments: Recognition and Measurement - Reassessment of Embedded Derivatives .

The International Financial Reporting Interpretations Committee will meet at the IASB's offices in London on Thursday, 2 December 2004. The agenda for the meeting is as follows:

  • IFRIC Interpretation 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Funds
  • Accounting for Service Concessions – The IFRIC will consider three draft Interpretations with a view to agreeing them for publication:
    • D11 Service Concession Arrangements - Determining the Accounting Model
    • D12 Service Concession Arrangements - The Financial Asset Model
    • D13 Service Concession Arrangements - The Intangible Asset Model
  • IFRS 2 - Changes in Employee Contributions to ESPPs
  • Scope of IFRS 2
  • IFRS 2 - Treasury Share Transactions and Group Transactions
  • IAS 39 Financial Instruments: Recognition and Measurement - Reassessment of Embedded Derivatives
News default Image

FEE guidance on pan-European prospectuses

29 Nov 2004

The European Federation of Accountants (FEE) has published a discussion paper on Auditors' Involvement with the New EU Prospectus Directive.

The Directive, which comes into force on 1 July 2005, is aimed at simplifying capital raising in Europe and is a key step in creating a single European market for financial services. The Directive requires involvement of the auditor to give assurance on historical and prospective financial information. FEE's paper provides national auditing standard setters with a framework within which standards might be developed to implement the requirements of the Directive. More information is on the FEE Website.
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

IFRIC Interpretation 2 on shares in co-ops

26 Nov 2004

The International Financial Reporting Interpretations Committee (IFRIC) has issued Interpretation IFRIC 2 'Members' Shares in Co-operative Entities and Similar Instruments' (co-ops).

Members-shares in co-ops have some characteristics of equity.   They also give the holder the right to request redemption for cash, although that right may be subject to certain limitations.

IFRIC 2 gives guidance on how those redemption terms should be evaluated in determining whether the shares should be classified as financial liabilities or as equity. Under IFRIC 2, shares for which the member has the right to request redemption are normally liabilities. However, they are equity if:

  • the entity has an unconditional right to refuse redemption, or
  • local law, regulation, or the entity's governing charter imposes prohibitions on redemption. But the mere existence of law, regulation, or charter provisions that would prohibit redemption only if conditions (such as liquidity constraints) are met, or are not met, does not result in members' shares being equity.

Click for Press Release (PDF 23k).

 

IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

IFRIC draft interpretation on waste equipment

26 Nov 2004

The International Financial Reporting Interpretations Committee (IFRIC) has invited comments on draft interpretation IFRIC D10 'Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment'.

D10 clarifies when original producers of electrical goods will need to recognise a liability for the cost of waste management relating to final disposal of waste electrical and electronic equipment by private households.

The IFRIC concluded that the event giving rise to the liability for costs of such waste is participation in the market in the period in which the original seller's market share is determined for the purposes of allocating ultimate waste management costs. It's not the original production or sale of the equipment that triggers liability recognition.

Comments are due by 11 February 2005.  Click for Press Release (PDF 24k).

 

Accounting Roundup Image

New Accounting Roundup posted

25 Nov 2004

We've posted the (PDF 196k) published by Deloitte (USA).

Topics covered in this issue include a proposed FSP on income taxes, recent FASB and AcSEC meetings, EITF developments, SEC postponement of accelerated of filing dates, PCAOB's amendments to its interim auditing standards, and international developments including amendment to the scope of SIC-12. You will find past issues of Accounting Roundup Here.
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FASB moves inventory standard toward IAS 2

25 Nov 2004

The US Financial Accounting Standards Board has amended the US accounting standard on inventories to clarify that abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) should be recognised as current-period charges and to require the allocation of fixed production overheads to inventory based on the normal capacity of the production facilities.

US GAAP still permits LIFO, which is no longer allowed under IAS 2. Click for FASB Press Release (PDF 24k). You can download FASB Statement 151 from the FASB Website.

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