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Japan Image

Outcome of IASB-ASBJ convergence meeting

12 Apr 2005

The Accounting Standards Board of Japan has released a Summary of the March 2005 Convergence Meeting (PDF 57k) between the ASBJ and the IASB in Tokyo.

The summary indicates that the two boards agreed to pursue convergence issues in the following five standards in the first phase of the project:
  • Measurement of inventories (IAS 2)
  • Segment reporting (IAS 14)
  • Related party disclosures (IAS 24)
  • Unification of accounting policies applied to foreign subsidiaries (IAS 27)
  • Investment property (IAS 40)
The ASBJ announcement states that while the two boards have agreed on these five topics, "how to proceed further will be announced when it becomes clearer." The next convergence meeting between the two Boards will take place in London in September 2005. Click to go to our Japan Page.
FEE (Federation of European Accountants - Fédération des Experts-comptables Européens) (lt green) Image

FEE study on audit report implications of IFRSs

12 Apr 2005

The European Federation of Accountants (FEE) has released a discussion paper on Reporting Issues in Relation to Endorsed IFRS and Possible Implications for the Audit Report.

The European Union IAS Regulation requires European listed companies to prepare consolidated financial statements from 2005 on the basis of those IFRS that have been endorsed by the European Commission. Because endorsed IFRSs may not necessarily be the same as full IFRSs because of time lags or 'carve-outs' such as was done with IAS 39, the appropriate wording to describe the accounting framework in the auditor's report and in the accounting policies note must be carefully considered. The FEE discussion paper examines the following questions:
  • How should the financial reporting framework be referred to in the accounting policies in the notes to the financial statements?
  • When the company also complies with full IFRSs, should it refer to that fact?
  • How should the framework be described in the audit report? Can there be a difference in description compared to the reference to the financial reporting framework in the accounting policies?
  • Would the reference to the European financial reporting framework have a clear meaning outside the EU?
FEE invites comments on the issues raised in the discussion paper, with a 31 May 2005 deadline. Click to (PDF 129k).
IASB (International Accounting Standards Board) (blue) Image

Questionnaire on SME recognition and measurement

11 Apr 2005

The IASB has published a staff questionnaire on possible modifications of the recognition and measurement principles in IFRSs for use in IASB standards for small and medium-sized entities (SMEs).

The IASB plans to hold public round-table meetings with preparers and users of the financial statements of SMEs, most likely in September 2005, to discuss possible recognition and measurement modifications.

The questionnaire has been prepared by the staff of the IASB as a tool to identify issues that should be discussed at those round-table meetings. Response deadline is 31 May 2005. The questionnaire contains two questions:

Question 1: What are the areas for possible simplification of recognition and measurement principles for SMEs? In responding, please indicate:

  • the specific accounting recognition or measurement problem for an SME under IFRSs;
  • the specific transactions or events that create the recognition or measurement problem for an SME under IFRSs;
  • why is it a problem; and
  • how that problem might be solved.
Question 2: From your experience, please indicate which topics addressed in IFRSs might be omitted from SME standards because they are unlikely to occur in an SME context. If they occur, the standards would require the SME to determine its appropriate accounting policy by looking to the applicable IFRSs.
Click for:


IVSC (International Valuation Standards Council) (lt green) Image

IVSC 2005 standards now available on line

11 Apr 2005

The International Valuation Standards Committee (IVSC) has posted to its website the various sections of International Valuation Standards 2005, including International Valuation Standards (IVSs), International Valuation Applications (IVAs), and International Valuation Guidance Notes.

A printed volume and subscription service are also available.
Deloitte Comment Letter Image

We comment on the staff paper on IAS 39 FV option

11 Apr 2005

Deloitte Touche Tohmatsu has submitted comments on the IASB staff paper of 23 March 2005 on the Proposed Amendment to IAS 39: The Fair Value Option–Effective Date and Transition Provisions. The staff paper sets out an overview of certain alternatives on the basis of the Board's tentative decisions.

Our comments are based on this brief paper without full consideration of a detailed analysis of the alternatives. Click to (PDF 51k). Our overall view:

While we remain of the view that the unrestricted fair value option as set out in IAS 39 Financial Instruments: Recognition and Measurement (Revised in March 2004) is preferable to a restricted version, we support the Board's current proposal compared to the previous restricted fair value option detailed in the Exposure Draft (June 2004). We encourage the Board to issue the amendment as soon as practicable.

All past Deloitte comment letters to IASB and IASC are Here.
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Information about 2006 World Congress of Accountants

11 Apr 2005

The 17th World Congress of Accountants will be held 13-17 November 2006 in Istanbul, Turkey.

Workshop and plenary sessions will be organised around the theme Generating Economic Growth and Stability Worldwide. Session topics will include generating economic growth and stability through the accounting profession in the developing nations, capital markets stability worldwide and the accounting profession, and the role of professional accountants in business in contributing to value creation worldwide. For more information, go to the WCOA-2006 Website at
News default Image

More details on the April Board meeting agenda

11 Apr 2005

Our news story of 8 April 2005 reported the agenda for the IASB's April Board meeting on Tuesday 19 April 2005 and the agenda for its joint meeting with the US FASB on Thursday 21 April 2005. On Wednesday 20 April 2005, the Board will meet with its liaison national standard-setters.

Here is the agenda for that meeting.


19-21 April 2005, London

Tuesday 19 April 2005

IASB Board Meeting Location: IASB Offices, 30 Cannon Street, London

Agenda: See news story of 8 April 2005

Wednesday 20 April 2005

Meeting of the IASB and the Liaison National Standard Setters Location: The Council Room, One Great George Street, Westminster, London SW1P 3AA

  • Matters Arising from Liaison Standard-Setters Meeting
    • Role of National Standard Setters
    • Proposed MoU
    • Technical Matters
    • Other Matters
  • Interpretations
  • IFRIC Review of Operations and Implications for National Standard Setters
  • Interpretation and Guidance
  • Future Work Programme and Priorities of IASB
  • Planning for the Conceptual Framework Project
  • Participation by National Standard Setters in Project Teams and Processes

Thursday 21 April 2005

Meeting of the IASB and the US FASB Location: The Council Room, One Great George Street, Westminster, London SW1P 3AA

Agenda: See news story of 8 April 2005

The combined agenda is Here.

Heads Up Image

Deloitte Heads Up newsletter on share-based payment

11 Apr 2005

In our news story of 30 March 2005, we reported on SEC Staff Accounting Bulletin No.

107 Share-Based Payment, dealing with valuations and other accounting issues for share-based payment arrangements by public companies under FASB Statement 123R Share-Based Payment. For public companies, valuations under Statement 123R are similar to those under IFRS 2 Share-based Payment. Deloitte & Touche (United States) has published a special edition of the Heads Up newsletter discussing SAB 107. Click to download the (PDF 144k).
IOSCO (International Organization of Securities Commissions) (dark gray) Image

Final communique from 30th annual IOSCO conference

11 Apr 2005

The International Organization of Securities Commissions (IOSCO) held its 30th annual conference in Colombo, Sri Lanka, from 4 to 7 April 2005. IOSCO is the global association of the world's securities and futures regulators.

The Final Communique (PDF 293k) from the meeting reiterated IOSCO's long-standing support for IFRSs and reported on a study on regulation of the auditing profession:

8.1 International Financial Reporting Standards (IFRS). At this Annual Conference IOSCO has taken the opportunity to reiterate its support for the work of the International Accounting Standards Board (IASB), and encourages its members to accept financial statements in fillings for cross-border offerings prepared under the International Financial Reporting Standards (IFRS), with additional reconciliation or disclosure as necessary to meet national standards. In addition, IOSCO has encouraged those members still using supplemental treatments to continue to evaluate their need with the hope that within the foreseeable future, such reconciliation treatments will no longer be necessary.

IOSCO is also developing procedures to encourage cooperation and consultation among members in the regulatory interpretation and enforcement of IFRS. A consultation paper outlining the options with this approach as well as the principles to be adopted and their implementation has been distributed to the IOSCO membership. IOSCO envisages that it will be in a position to confirm a final model during the second half of 2005, in time to be used in conjunction with reviews of 2005 annual financial statements.

8.2 Regulation and Oversight of Auditors. In response to the widespread interest in the conduct and quality of audits and in oversight of auditors, IOSCO recently conducted a survey on the regulation and oversight of auditors in a number of different jurisdictions. The survey revealed that IOSCO principles for auditor oversight and auditor independence were broadly implemented in most of the developed markets and some of the emerging markets even though there remained wide variations in the approaches and structures that are applied. IOSCO is currently in the process of analyzing the survey results and considering possible revisions to the related IOSCO regulatory principles.

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

EFRAG's final comments on IFRIC D11

08 Apr 2005

The European Financial Reporting Advisory Group (EFRAG) has released its letter of comment on IFRIC Draft Interpretation D11 Changes in Contributions to Employee Share Purchase Plans (ESPPs).

The letter expresses agreement with one aspect of the proposed consensus but disagrees with another. EFRAG agrees that if an existing ESPP is replaced by a new ESPP, the entity should account for this replacement as a modification of the original plan in accordance with IFRS 2. However, EFRAG disagrees with the proposed consensus on how to account if an employee stops contributing to an ESPP while remaining in the entity's employment. D11 proposes that the entity account for this event as a cancellation and, therefore, should recognise immediately as expense the amount that otherwise would have been recognised for services received over the remainder of the vesting period. EFRAG's letter raises questions about the basis for IFRIC's proposed consensus. Click to download EFRAG's Letter on D11 (PDF 17k).

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