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

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

EFRAG 'major concerns' re IFRS 3 proposals

06 Aug 2005

The European Financial Reporting Advisory Group (EFRAG) has invited comments on its draft letter to the IASB on the exposure draft of Business Combinations Phase II, which involves proposed amendments to IFRS 3, IAS 27, IAS 37, and IAS 19. .

The European Financial Reporting Advisory Group (EFRAG) has invited comments on its draft letter to the IASB on the exposure draft of Business Combinations Phase II, which involves proposed amendments to IFRS 3, IAS 27, IAS 37, and IAS 19.

We would at the outset like to make clear our support for the objective of this project to achieve convergence if it is convergence to the better accounting solution and can be achieved with reasonable efforts. We have nevertheless some major concerns...

EFRAG's concerns relate to:

  • Structure and Process of the Project, including non-issuance of a discussion paper, shortness of the comment period (especially for Europe), failure to achieve IFRS-US GAAP convergence, increased use of fair values before a debate on measurement has taken place, and changes to concepts in the Framework:

    We have a major concern with the fact that the Board proposes changes to concepts that are contained in the Framework without either first discussing those potential changes in the context of the Framework itself or actually proposing to change the Framework.

  • Technical issues, including whether a single method of accounting is appropriate for all business combinations (particularly for combinations involving mutual entities and by contract alone), subjective fair value measurements by unlisted companies or in illiquid markets, and definition of a business.
  • Proposed changes to IAS 27. EFRAG is "not convinced that the entity view is superior to the current 'parent-only' approach".
  • Proposed changes to IAS 37. EFRAG has concerns (a) about building probability into the measurement of non-financial liabilities rather than (as IAS 37 currently does) into the recognition criteria and (b) about measuring non-financial liabilities at the amount that an entity would rationally pay to settle the present obligation or to transfer it to a third party.
Click to Download EFRAG's Letter (DOC 232k). Comment deadline is 21 October 2005. The United Kingdom Accounting Standards Board has Invited Comment on the IASB's Proposals while expressing concerns similar to EFRAG's:

The ASB is issuing the proposed standards in accordance with its policy of aligning UK accounting standards with IFRS. It notes, however, that the proposals raise a number of issues, and, arguably, some of these would not represent an improvement in UK financial reporting. Amongst the more controversial issues are:

  • the proposal that goodwill is to be recognised in full; that is, 100% of goodwill is recognised even if less than 100% is acquired;
  • the requirement in IFRS 3 that, after initial recognition, goodwill should be measured at cost less impairment losses, and amortisation is not be permitted;
  • unlike present requirements, liabilities will be recognised even where it is probable that no outflow will be required to settle the obligation. The probability of an outflow is reflected in the measurement of the liability.
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

IFRIC meeting dates for 2006

06 Aug 2005

The meeting schedule of the International Financial Reporting Interpretations Committee for 2006 is as follows, all in London: Thursday 12 January and Friday 13 January 2006 Thursday 2 March and Friday 3 March 2006 Thursday 11 May and Friday 12 May 2006 Thursday 6 July and Friday 7 July 2006 Thursday 7 September and Friday 8 September 2006 Thursday 2 November and Friday 3 November 2006 You can always find meeting dates for IASB, SAC, IFRIC, and IASCF by clicking the Future Meeting Dates link on our home page. .

The meeting schedule of the International Financial Reporting Interpretations Committee for 2006 is as follows, all in London:

  • Thursday 12 January and Friday 13 January 2006
  • Thursday 2 March and Friday 3 March 2006
  • Thursday 11 May and Friday 12 May 2006
  • Thursday 6 July and Friday 7 July 2006
  • Thursday 7 September and Friday 8 September 2006
  • Thursday 2 November and Friday 3 November 2006
You can always find meeting dates for IASB, SAC, IFRIC, and IASCF by clicking the Future Meeting Dates link on our home page.
Pakistan Image

SEC Chairman urges full adoption of IFRSs

05 Aug 2005

The Chairman of the Securities and Exchange Commission of Pakistan (SEC), Dr. Tariq Hassan, has urged "across-the-board adoption of the International Financial Reporting Standards (IFRSs) in order to bring transparency in the corporate sector in Pakistan".

Here is an excerpt from his remarks at a seminar on IFRSs organised by the Institute of Cost and Management Accountants of Pakistan:

What we seek in transparency is the ability of an investor to 'see through' a company's financial statements the true results of its operations. Transparency requires that companies follow Generally Accepted Accounting Principles (GAAP) in a manner that assures consistency and comparability. The best way of achieving this is to observe and adopt IFRSs in its true spirit.

Click for Press Release (PDF 6k).

0508ckdk.jpg Image

Transition from Danish GAAP to IFRSs

05 Aug 2005

Deloitte in Denmark has developed a (PDF 685k).

It describes in English the areas of IFRSs that differ from Danish GAAP. This checklist is likely to be a useful tool for non-Danish speakers needing to know about the impact of IFRSs for entities listed on the Copenhagen Stock Exchange. We have added this publication to our page that has Comparisons of National GAAPs and IFRSs. You will also find a link on our IFRS Publications Page.
iasplcs.gif Image

IAS Plus Newsletters for July 2005 are posted

04 Aug 2005

The July 2005 IAS Plus newsletter has been published.

The newsletter reports on the 2nd quarter 2005 activities of the IASB, the IFRIC, and the IASC Foundation, and also on worldwide issues and events relating to international financial reporting. The Asia-Pacific edition has the same 32-page news content as the Global Edition plus seven pages of accounting standards updates for Asia-Pacific countries. You will find all Past IAS Plus Issues Here.
News default Image

SEC seeks input on issues relating to smaller companies

04 Aug 2005

The SEC Advisory Committee on Smaller Public Companies is soliciting public input on issues related to the current securities regulatory system for smaller companies, including the impact of the Sarbanes-Oxley Act of 2002 on the system.

The Advisory Committee is doing this by publishing a series of questions and asking interested parties to respond to the questions. Responses are requested by 31 August 2005. Several of the questions are similar to those recently asked by the IASB in its Staff Questionnaire on Possible Recognition and Measurement Modifications for Small and Medium-sized Entities (SMEs). For example, the SEC Advisory Committee asks:

  • Are the current accounting standards applied to all U.S. companies appropriate for smaller companies? If not, please explain what revisions to existing standards might be appropriate.
  • Should accounting standards provide smaller companies with different alternatives for measuring accounting events that would reduce the amount of time that would otherwise be spent by smaller companies to comply with those accounting standards? If these alternatives were available to smaller companies, would smaller companies take advantage of them even if the results of the measurements obtained from the alternatives were less favorable to them in the short term? Why or why not?
News default Image

New SEC Chairman takes office

04 Aug 2005

Christopher Cox has been sworn in as Chairman of the US Securities and Exchange Commission.

Click for (PDF 32k).
EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG comment letters to IASB/IFRIC

03 Aug 2005

EFRAG has submitted its letters of comment to the IASB and IFRIC on the following draft documents IASB Draft Memorandum of Understanding on the Role of Accounting Standard-setters and the IFRIC Review of Operations.

In relation to the IASB Draft Memorandum of Understanding on the Role of Accounting Standard-setters, EFRAG comments as follows:

 

"Preparing the draft Memorandum of Understanding (MoU) has been a useful exercise.

We are not sure though that there are any significant benefits to be gained by developing the draft into a final document that is then signed by all the parties."

 

Click for:

  • EFRAG letter: IASB Due Process Handbook (PDF 22k) "Although the IASB is, in our opinion, one of the most transparent accounting standard-setters in the world, there is always room for improvement. In general, we support the proposals in the draft Handbook."
  • EFRAG letter: IFRIC Review of Operations (PDF 21k) "A number of European commentators are very concerned about the IFRIC's ability to cope with the demands that they believe will be placed on it in the coming months with large numbers of European companies applying IFRS for the first time." "We have had a number of concerns about the IFRIC agenda process."

 

United Kingdom Image

iGAAP newsletter on business combinations phase II

03 Aug 2005

The IASB has proposed major changes to accounting for business combinations, including grossing up of goodwill and new rules on contingent consideration, acquisition costs, transactions with noncontrolling interests, stepped acquisitions, contingent assets and liabilities, and restructuring costs.

Deloitte (United Kingdom) have published a special edition of their iGAAP Newsletter with details of the proposals and their implications. Click to download the (PDF 68k). We have created a Section on our UK Page where we will maintain links to all iGAAP Newsletters and Alerts.
Accounting Roundup Image

New Accounting Roundup is available

03 Aug 2005

We have posted (PDF 220k).

This newsletter, published by Deloitte & Touche LLP (United States), summarises recent accounting and financial reporting developments and provides Internet links to related content. This edition includes:
  • FASB developments, including ED on uncertain tax positions; final FSPs on equity method when significant influence is lost and on control of limited partnerships; proposed FSPs on leveraged leases, capitalisation of rental costs during a construction period, and qualified SPEs; and a 'Milestone Draft' of decisions to date in the Liabilities and Equity project.
  • EITF developments, including draft abstracts on controlling interests and purchases and sales of inventory with the same counterparty.
  • SEC developments, including amendments of 'penny stock' rules and delisting rules and changes to EDGAR requirements for investment companies.
  • PCAOB developments, including an auditing standard elimination of a material weakness and new ethics and independence rules. International developments, including withdrawal of IFRIC 3 on emission rights.
You will find links to all past issues Here.

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.