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News

Reminder – comment deadline on IAS 39 fair value option amendment

16 Jul 2004

The deadline for comments on IASB's Exposure Draft on Amendments to IAS 39 - The Fair Value Option is this coming Wednesday, 21 July 2004. The ED proposes to restrict the availability of the option to classify individual financial assets and liabilities as measured at fair value through profit and loss by limiting the types of financial assets and financial liabilities to which the option may be applied, and by requiring that the option may be applied only to financial assets and financial liabilities whose fair value is verifiable. .

The deadline for comments on IASB's Exposure Draft on Amendments to IAS 39 - The Fair Value Option is this coming Wednesday, 21 July 2004. The ED proposes to restrict the availability of the option to classify individual financial assets and liabilities as measured at fair value through profit and loss by limiting the types of financial assets and financial liabilities to which the option may be applied, and by requiring that the option may be applied only to financial assets and financial liabilities whose fair value is verifiable.

Comment letters on IFRIC D6 are posted

15 Jul 2004

The IASB has posted on its Website the comment letters it has received on IFRIC Draft Interpretation D6 Multi-employer Plans. .

The IASB has posted on its Website the comment letters it has received on IFRIC Draft Interpretation D6 Multi-employer Plans.

Responses requested to joint venture survey by 28 July 2004

15 Jul 2004

The FASB website reports that the International Accounting Standards Board is conducting a research project that is the first phase of a longer-term effort to improve IAS 31 Interests in Joint Ventures.

The Australian Accounting Standards Board is leading a team of standard setters from Hong Kong, Malaysia, and New Zealand that are conducting the research project. As a first step in the research, a joint venture questionnaire was developed as a way of identifying the various structures of joint arrangements used worldwide. In some cases where two or more parties invest in an undertaking together, these arrangements have the characteristics of, and are classified under IFRSs as, joint ventures. In other cases, they are classified under IFRSs as investments in associates. Under US GAAP, these types of investments are generally classified as equity-method investments, although some may be variable interest entities. The survey is intended to elicit information on these types of investments regardless of how they are currently accounted for. The questionnaire can best be answered Online or by printing a hard copy of the Joint Ventures Survey (PDF 199k). The information provided through this questionnaire will be used for research purposes only and will be treated confidentially. Responses are requested by 28 July 2004.

Australian financial reporting update

15 Jul 2004

Deloitte (Australia) has published (PDF 80k) June 2004 Financial Reporting Update.

The Alert provides an outline of some of the significant areas that may impact financial reporting for annual reporting periods ending 30 June 2004. Major topics include new and/or revised Accounting Standards and Urgent Issues Group Abstracts.

New ISA on planning an audit of financial statements

15 Jul 2004

The International Auditing and Assurance Standards Board (IAASB) has published a revised International Standard on Auditing (ISA) 300 on Planning an Audit of Financial Statements.

The standard requires the auditor to establish the overall strategy that sets the scope, timing, and direction of the audit. ISA 300 builds on the new audit risk standards issued last year and requires the auditor to plan the audit so that the engagement will be performed in an effective manner. The standard emphasises that planning is a continual and iterative process throughout the engagement and that unexpected events, changes in conditions, or other circumstances may lead the auditor to re-evaluate the planned audit procedures. IAS 300 is effective for audits of financial statements for periods beginning on or after 15 December 2004. It may be downloaded from IFAC's Website.

IFAC Public Sector Review Panel issues final report

14 Jul 2004

The IFAC Public Sector Committee (PSC) External Review Panel has considered the PSC's role, governance, and organisation as well as its approach to the translation of PSC pronouncements.

The panel's conclusions and recommendations are outlined in its Final Report (PDF 187k). It is the policy of the PSC to base International Public Sector Accounting Standards on IFRSs "to the extent appropriate". The report also recommends convergence of public and private sector standards as a long-term goal:

In the Panel's view the long-term aspiration of the PSC should be for a convergence of financial reporting standards between the private and public sectors where appropriate. This aspiration should recognise that there are a number of issues specific to the public sector or of particular significance to the public sector. Separate standards or adaptations of private sector standards are likely to be needed for such issues. However, the objective of "convergence when appropriate" will not be achieved in the short-term or even medium-term. In order to ensure that the PSC is positioned to fulfil this aspiration it is important that the component of the work programme addressing harmonisation with IAS/IFRS is maintained and adequately resourced.

Two new Australian Accounting Alerts

14 Jul 2004

Deloitte (Australia) has published two Australian Accounting Alerts: (PDF 64k) Pending AASB 124 'Related Party Disclosures' (PDF 73k) The AASB issues Pending Framework for the Preparation and Presentation of Financial Statements .

Deloitte (Australia) has published two Australian Accounting Alerts:

One of the main differences between the Pending Framework and existing Australian accounting pronouncements is that the Pending Framework contains a different notion of income and revenue from that contained in SAC 4.... SAC 4 defines revenue as 'inflows or other enhancements, or savings in outflows, of future economic benefits in the form of increases in assets or reductions in liabilities of the entity'. The equivalent concept in the Pending Framework is income. This is defined as 'both revenue and gains'.

'Revenue' is defined as arising in the course of the ordinary activities of an entity, and 'gains' are determined on a net basis and represent other items that meet the definition of income and 'may, or may not, arise in the course of the ordinary activities of an entity'.

As a result of this change, the current requirement to report proceeds on the sale of assets will no longer form part of revenue, rather the net gain or loss will be appropriately classified. The broad impact of the definition of income as 'revenue and gains' means that some items will be reported on a net basis and others will be reported on a gross basis.

A similar issue arises in respect of expenses, which are defined to encompass both 'losses as well as those expenses that arise in the course of the ordinary activities of the entity'.

New Accounting Roundup second quarter review posted

13 Jul 2004

We have posted (PDF 865k), a quarterly edition of the US Accounting Roundup newsletter that summarises selected recent accounting and financial reporting developments and provides Internet links to related content.

The articles included in this edition were drawn primarily from issues of Accounting Roundup published in the second quarter of 2004, and have been updated where appropriate. Accounting Roundup is published periodically as developments warrant by Deloitte (USA). Past issues are Here.

Deloitte comment letter on IFRIC D6

12 Jul 2004

Deloitte has submitted to the IASB our Multi-employer Plans PDF 56k).

Click here for a Summary of IFRIC D6.

We believe that the current requirements in IAS 19.29-35 are appropriate in accounting for multi-employer plans. Whilst implementation of these requirements often involves judgement, such requirements are sufficiently clear. As a result, we question the need for the draft Interpretation and suggest that IFRIC reconsider the status of any final document that may be issued. In addition, we have concerns about certain aspects of the guidance provided in D6. In particular, we believe that whilst some of the guidance provided may be useful, other guidance proposed may bring more confusion than clarity.

New EITF Roundup posted

12 Jul 2004

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

EITF Roundup provides an overview of the issues discussed, consensuses reached, and administrative matters at the 30 June /1 July 2004 meeting of FASB's Emerging Issues Task Force. Click to (PDF 111k).

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