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News

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Public Sector Accounting Standards Board update

31 Aug 2005

In November 2004 IFAC's Public Sector Committee (PSC) was reorganised into the International Public Sector Accounting Standards Board (IPSASB).

The IPSASB develops standards for accounting and financial reporting by national, regional and local governments and related governmental agencies. Those standards are generally based on IFRSs, and profit-oriented government business enterprises are required to comply directly with IFRSs. We have posted the August 2005 issue of IPSASB Update. The newsletter reports the decisions made at the IPSASB's July 2005 meeting and includes a review of the IPSASB's current work programme. Click:
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SME standard adopted in Hong Kong

30 Aug 2005

The Hong Kong Institute of Certified Public Accountants has issued its Financial Reporting Framework and Standard for Small and Medium-sized Entities (SMEs).

The standard applies to the following entities for financial statements covering a period beginning on or after 1 January 2005, with earlier application is permitted:
  • Hong Kong companies that prepare financial statements under section 141D of the Companies Ordinance. These are private companies where all owners agree to apply that section, and
  • Overseas incorporated entities that do not have public accountability and qualify on the basis of size thresholds given in the Standard.
The new standard is effective for qualifying entities with financial statements covering a period beginning on or after 1 January 2005. Earlier application is permitted. The IASB is working toward developing separate Accounting Standards for SMEs.
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World standard setters will meet 26-27 September 2005

24 Aug 2005

In conjunction with its September 2005 Board meeting, the IASB has organised a meeting of representatives of approximately 40 national accounting standards-setting bodies on 26-27 September 2005 at the Renaissance London Chancery Court Hotel, 252 High Holborn, London.

The meeting is open to public observation (see IASB Website). The agenda for that meeting is noted below.

IASB Meeting with World Standard Setters26-27 September 2005, London

Monday 26 September 2005

Morning

  • IASB timetable
  • IFRIC (including role of IFRIC and review of operations)
  • Conceptual Framework
    • Introduction
    • Break-out Discussions
    • Feedback
    Afternoon
  • Keynote speaker
  • Accounting Standards for Small and Medium-sized Entities
    • Introduction
    • Break-out Discussions
    • Feedback

Tuesday 27 September 2005

Morning

  • Memorandum of Understanding - National standard setters and the IASB
  • Non-financial Liabilities
    • Introduction
    • Break-out Discussions
    • Feedback

Afternoon

  • General round-table discussion of challenges and opportunities facing jurisdictions as they adopt/converge with IFRSs
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IASB project timetable updated

23 Aug 2005

We have updated our IASB Project Timetable to reflect recent pronouncements and other publications by the IASB and discussions at recent Board meetings. .

We have updated our IASB Project Timetable to reflect recent pronouncements and other publications by the IASB and discussions at recent Board meetings.

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Agenda for IFRIC meeting 1-2 September

20 Aug 2005

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday, 1-2 September 2005. The agenda for the meeting is set out below. 1-2 September 2005, London Thursday 1 September 2005 (14:00-17:30pm) Administrative matters Minutes of the August 2005 IFRIC meeting August IFRIC Update Service Concessions IFRIC D12, D13, D14 Scope Double recognition of revenue Revisit of issues from August meeting Friday 2 September 2005 (09:00-10:45am) IAS 19 Employee Benefits – Minimum Funding Requirements and the Asset Ceiling Tabling from July Agenda Committee of wording for issues proposed for rejection .

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday, 1-2 September 2005. The agenda for the meeting is set out below.

1-2 September 2005, London

Thursday 1 September 2005 (14:00-17:30pm)

  • Administrative matters
  • Minutes of the August 2005 IFRIC meeting August IFRIC Update
  • Service Concessions IFRIC D12, D13, D14
    • Scope
    • Double recognition of revenue
    • Revisit of issues from August meeting

Friday 2 September 2005 (09:00-10:45am)

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Webcast on business combinations and IFRIC

19 Aug 2005

The Deloitte United Kingdom IFRS Centre of Excellence is running a monthly series of hour-long Internet-based IFRS technical updates, focusing on the most important international accounting standards and how they will affect UK companies.

The sixteenth session was run on Thursday 18 August 2005 and focused on the IASB's Business Combinations Phase II proposals and on recent IFRIC activity. To access the recording Click Here. The recording is no longer available online.
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'Extreme Accounting'

19 Aug 2005

If you find the discussions of embedded derivatives, the modified-grant-date method, and service concession arrangements on IAS Plus somewhat lacking in humour, you may want to seek a respite at Extreme Accounting. .

If you find the discussions of embedded derivatives, the modified-grant-date method, and service concession arrangements on IAS Plus somewhat lacking in humour, you may want to seek a respite at Extreme Accounting.

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IASB issues IFRS 7 on financial instruments disclosures

18 Aug 2005

The IASB has issued IFRS 7 'Financial Instruments: Disclosures'.

The standard:
  • Adds certain new disclosures about financial instruments to those currently required by IAS 32
  • Replaces the disclosures now required by IAS 30;
  • Puts all of those financial instruments disclosures together in a new combined standard. The remaining parts of IAS 32, which will be renamed Financial Instruments: Presentation, deal only with presentation matters, including classifying instruments as debt or equity, compound financial instruments, offsetting, and treasury shares.
Under IFRS 7, an entity must group its financial instruments into classes of similar instruments and, when disclosures are required, make the disclosures by class. The two main categories of disclosures required by IFRS 7 are:
  • Information about the significance of financial instruments
  • Information about the nature and extent of risks arising from financial instruments.
An appendix of mandatory application guidance is part of the standard. There is also an appendix of non-mandatory implementation guidance that describes how an entity might provide the disclosures required by IFRS 7.
IFRS 7 applies to all entities and is effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged. Early appliers are given some relief with respect to comparative prior period disclosures. Both IAS 30 and the disclosure requirements of IAS 32 are withdrawn. We have prepared a Summary of IFRS 7. Click for IASB Press Release (PDF 57k).

 

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IAS 39 and IFRS 4 amended for guarantee contracts

18 Aug 2005

The IASB has amended the scope of IAS 39 'Financial Instruments: Recognition and Measurement' to include financial guarantee contracts issued.

However, if an issuer of financial guarantee contracts has previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting applicable to insurance contracts, the issuer may elect to apply either IAS 39 or IFRS 4 Insurance Contracts to such financial guarantee contracts.

Some details:

  • A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due
  • Under IAS 39, financial guarantee contracts are initially recognised at fair value and are subsequently measured at the greater of (a) the amount determined in accordance with IAS 37 and (b) the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18
  • The issuer may make the IAS 39 or IFRS 4 election contract by contract, but the election for each contract is irrevocable
  • The amendments to IAS 39 and IFRS 4 are effective for annual periods beginning on or after 1 January 2006, with earlier application encouraged.
Click for IASB Press Release (PDF 57k).

 

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IASB amends IAS 1 to add capital disclosures

18 Aug 2005

As part of its project to develop IFRS 7 Financial Instruments: Disclosures (see story above), the IASB decided also to amend IAS 1 Presentation of Financial Statements to add requirements for disclosures of: The entity's objectives, policies and processes for managing capital. Quantitative data about what the entity regards as capital. Whether the entity has complied with any capital requirements. If it has not complied, the consequences of such non-compliance. These disclosure requirements apply to all entities, effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged.

Illustrative examples are added to IAS 1 as guidance.

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