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News

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PCAOB staff Q&As on internal controls

24 Nov 2004

The US Public Company Accounting Oversight Board has published a third set of staff questions and answers related to PCAOB Auditing Standard No.

2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements. AS 2 applies to audits of foreign, as well as domestic, SEC registrants. The new Q&As; (nos. 30-36) address, among other things, audits of multinational companies that involve more than one auditor; audits of federally insured financial institutions; the timing of auditors' communications about weaknesses or deficiencies in internal control; audits of IT; and use of internal auditors.
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New working group on performance reporting (financial statement presentation)

23 Nov 2004

The IASB and FASB have jointly appointed a new working group on performance reporting to assist the boards in their joint project to establish standards for presenting, in the financial statements, information that is useful in assessing the financial performance of a business enterprise.

Working group members include Stephen Taylor, a partner in Deloitte Touche Tohmatsu, Hong Kong:

 

Members of the Joint International Group on Performance Reporting

Name Title Organisation Country
Peter R Bible Chief Accounting Officer General Motors Corporation United States
Kathryn Cearns Consultant Accountant Herbert Smith United Kingdom
Malcolm Cheetham Chief Accounting Officer Novartis Switzerland
Stephen Cooper Managing Director, Valuation & Accounting Research UBS Investment Bank United Kingdom
W Peter Day Executive General Manager - Finance Amcor Limited Australia
Jacques De Greling Equity Analyst IXIS Securities (Caisse d'Epargne Group) France
Bo Eriksson Senior Vice President/Corporate Controller Stora Enso Oyj Finland
Bridget Gandy Managing Director, International Accounting and Research Fitch Ratings Ltd United Kingdom
Gregory Jonas Managing Director Moody's Investors Service United States
Ken Kelly Vice President & Controller McCormick & Co United States
Sara York Kenny Principal Accounting Policy Advisor International Finance Corporation (World Bank Group) United States/Global
Guido Kerkhoff Senior Executive Vice President-Group Accounting and Reporting Deutsche Telekom AG Germany
Michael P Krzus Director Grant Thornton LLP United States
Chris Legge Managing Director, Industrial Ratings Standard & Poor's United Kingdom
Patricia McConnell Senior Managing Director Bear Stearns United States
Stuart MacDonald Head of Group Financial Reporting Scottish Power plc United Kingdom
Elizabeth Mooney Analyst Capital Strategy Research United States
Hans-Joachim Pilz Managing Director SBFA Investment Research Germany
Wolfgang H Reichenberger Executive Vice President & Chief Financial Officer Nestle SA Switzerland
Walter Schuster Professor Stockholm School of Economics Sweden
Stephen Taylor Partner Deloitte Touche Tohmatsu Hong Kong
Takashi Yaekura Professor Hosei University, Faculty of Business Administration Japan
Hiroshi Yamada Councillor-Corporate Accounting Group Matsushita Electric Industrial Co., Ltd. Japan
Gilles Zancannaro Corporate Director - Information Systems and Finance Bouygues France

 

Click for Press Release (PDF 42k).

 

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Three new IFRS e-learning modules are released

23 Nov 2004

Deloitte is pleased to make available without charge three additional IFRS e-learning modules: .

Deloitte is pleased to make available without charge three additional IFRS e-learning modules:

  • IAS 24 Related Party Disclosures
  • IAS 36 Impairment of Assets
  • IFRS 2 Share-based Payment
These modules bring the total number of available modules to 28. Each module involves a 4mb to 6mb download of a zip file, then installation via unzipping on your computer. Remaining modules planned for release by year-end are IAS 23, IAS 29, IAS 32/39 Parts 2 and 3, IAS 38, IFRS 3, and IFRS 5. To access Deloitte's IFRS e-learning, just click on the light bulb icon on the IASPlus home page.
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Comments invited on proposed constitution revisions

23 Nov 2004

The Trustees of the International Accounting Standards Committee Foundation (IASCF) have published and invited comment on a consultation document containing their proposals to amend the IASCF Constitution.

The Constitution sets out the organisational framework of the IASCF and the International Accounting Standards Board. Comments are requested by 23 February 2005. Click to download the IASCF Press Release (PDF 28k). The consultation document can be viewed on the Foundation's website www.iascfoundation.org, and printed copies are available on request without charge. Among the principal recommendations are these:

Proposals for the IASCF Constitution

IASB:

  • Retain the current two part-time members of the IASB.
  • Broaden the criteria for selecting IASB members – 'professional competence and practical experience' would replace 'technical expertise'.
  • Ease the required mix of backgrounds on the IASB. Currently a minimum of five practising auditors, three preparers, three users, and one academician are required. That would be changed to "an appropriate mix of practical experience among auditors, preparers, users, and academics", including at least one IASB member who has recent experience in each of those fields.
  • Require nine votes (64%) by IASB members to approve an Exposure Draft, Standard, or Interpretation, rather than the current eight (57%).
  • Enhance the IASB's due process by expanding its consultative arrangements and scope of liaison activities.
  • Remove the restrictive wording in the constitution regarding the number of full-time Board members that will have liaison responsibilities without narrowly specifying with whom they will liaison.
  • Require that the Board explain its reasons when the optional steps in its due process, such as field tests and public hearings, are not followed.

Trustees:

  • Expand the number of Trustees from 19 to 22 to broaden geographical representation and diversity of professional experience. Composition would be as follows:
    • 6 Trustees appointed from North America;
    • 6 Trustees appointed from Europe;
    • 6 Trustees appointed from the Asia/Oceania region; and
    • 4 Trustees appointed from any area, subject to establishing overall geographical balance.
  • Allow the Chair of the IASC Foundation Trustees to serve as Chair for six years, even if that period is beyond the limit of two three-year terms for Trustees.
  • The Trustees' annual review of the strategy and effectiveness of the Foundation and the IASB and its effectiveness should include consideration of the IASB's agenda. Trustees would be free to comment on and make suggestions regarding the Board's agenda but the IASB would have autonomy to determine its own technical agenda.
  • Rather than necessarily developing educational programmes itself, the Foundation should foster and review the development of educational programmes and materials by others.

Standards Advisory Council:

  • The Chair of the Standards Advisory Council would be appointed by the Trustees (three-year term, one renewal permitted) and would not be a member of the IASB or its staff (currently the IASB Chair also chairs the SAC).
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Decision summary for IFAC Council meeting

22 Nov 2004

The Board and Council of the International Federation of Accountants (IFAC) met in Paris last week and took action on a range of issues, including these: Established a working group to identify initiatives that IFAC could undertake to enhance corporate governance and increase public confidence in capital markets.

The group was asked to report to the Board in March 2005.
  • Approved a Memorandum of Understanding with the United Nations Conference on Trade and Development to work more closely together in the areas of good governance, reliable accounting, and clear accountability to economic growth and social development. Early projects will focus on education and training programs and corporate governance.
  • Approved a Memorandum of Understanding with the Institute of Internal Auditors to cooperate in such areas as corporate governance and the accountability of public sector organisations.
  • Agreed to move ahead on recommendations in the recently issued report, Challenges and Successes in Implementing International Standards: Achieving Convergence to IFRSs and ISAs, giving particular attention to the needs of small and medium enterprises and practices.
  • Accepted six new organizations as members of IFAC:
    • Association of Accountants and Auditors of Republic of Srpska (associate member)
    • Chamber of Financial Auditors of Romania (associate member)
    • Certified Public Accountants Association of Morocco (full member)
    • Estonian Auditing Board (full member)
    • Iranian Association of Certified Public Accountants (associate member)
    • National Institute of Accountants in Australia (full member)
  • Elevated the Association of Professional Accountants and Auditors of the Republic of Moldova from associate member to full member of IFAC.
  • Click for IFAC Press Release on IFAC's website.
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    European Commission endorses IAS 39

    20 Nov 2004

    The European Commission has adopted a Regulation endorsing IAS 39 Financial Instruments: Recognition and Measurement, with the exception of certain provisions on the use of the full fair value option for liabilities and on hedge accounting.

    The Commission's announcement states that:

    This text was supported both by a qualified majority of Member States at the Accounting Regulatory Committee (ARC) on 1 October and by the European Parliament. The Commission has also adopted a political declaration stating that it expects the International Accounting Standards Board (IASB) to bring forward the necessary amendments to the current full fair value option by December 2004 and to the provisions on hedge accounting by September 2005. Use of IAS 39, apart from the 'carved-out' sections, will be legally binding for all listed companies in the EU from 1st January 2005.

    Click for:
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    Web-based technical update on IAS 12

    19 Nov 2004

    The Deloitte London 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 seventh Webcast was run on 18 November 2004 and covered IAS 12 Income Taxes. To access the recording Click Here. The recording of each session will be available on this website for a period of at least 3 to 4 weeks from the date of the presentation. Links to past sessions may be found on our United Kingdom Page. The recording is no longer available online.
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    Notes from day 2 of the November 2004 IASB meeting

    18 Nov 2004

    To let our home page load faster, we have combined our notes of the IASB meeting on 16 and 17 November 2004 on a Separate Page. .

    To let our home page load faster, we have combined our notes of the IASB meeting on 16 and 17 November 2004 on a Separate Page.

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    Notes from day 1 of the November 2004 IASB meeting

    17 Nov 2004

    To let our home page load faster, we have combined our notes of the IASB meeting on 16 and 17 November 2004 on a Separate Page. .

    To let our home page load faster, we have combined our notes of the IASB meeting on 16 and 17 November 2004 on a Separate Page.

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    Two new IVSC valuation standards

    16 Nov 2004

    The International Valuation Standards Committee (IVSC) has 'preliminary final drafts' of two standards relating to valuation of fixed assets: International Valuation Application 1, Valuation for Financial Reporting; and International Valuation Guidance Note 8, The Cost Approach for Financial Reporting - (DRC) Click for IVSC News Alert describing the two proposals, which can be downloaded from IVSC's Website. .

    The International Valuation Standards Committee (IVSC) has 'preliminary final drafts' of two standards relating to valuation of fixed assets:

    • International Valuation Application 1, Valuation for Financial Reporting; and
    • International Valuation Guidance Note 8, The Cost Approach for Financial Reporting - (DRC)
    Click for IVSC News Alert describing the two proposals, which can be downloaded from IVSC's Website.

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