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News

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UK iGAAP in your Pocket 2005

29 Jul 2005

Deloitte (United Kingdom) has published (PDF 309k) – a summary of international financial reporting from a UK perspective.

This 72-page booklet includes:

  • Summaries of all International Financial Reporting Standards, each with:
    • Objective
    • Key features
    • Effective date
    • Related SIC and IFRIC interpretations
    • Indication of main differences between that standard and UK GAAP
  • Cross-reference table of IFRSs and UK GAAP
  • List of effective dates of recent pronouncements
  • List of outstanding IFRIC draft interpretations
  • IASB agenda projects
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IASB technical corrections policy

29 Jul 2005

The IASB has invited comment on its Proposed IASB Policy on Technical Corrections (PDF 39k).

Comment deadline is 30 September 2005. Technical corrections are minor changes to the wording of a standard or interpretation made after initial publication when it is clear that the words in a standard do not properly convey the IASB's intention, even when considered with the basis for conclusions and any related guidance. The technical corrections policy is designed to be a 'fast track' process to deal with those changes.
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EFRAG enquiry on implementation of IFRSs

28 Jul 2005

The Supervisory Board of the European Financial Reporting Advisory Group (EFRAG) has invited comments on a discussion paper Achieving Consistent Application of IFRS in the EU (Word .DOC 75k).

The Supervisory Board's goal is "to stimulate debate in Europe on this very important subject". The paper seeks information about the nature and quantity of IFRS implementation issues that are arising in Europe and discusses various options available to Europe if problems are identified. Broad issues addressed in the paper are:
  • Is there a problem and, if there is, what is it?
  • What additional mechanisms might Europe need?
    • IFRIC: standing ready to meet the demand
    • European interpretations/interpretive guidance: not needed if the IFRIC delivers
    • European implementation guidance: also not needed if the IFRIC delivers
    • A European urgent issues mechanism: not feasible without shortcutting due process, which is not acceptable
    • A European mechanism that supports the work of IFRIC: a possibility if needed
Comments are invited on the paper by 6 October 2005.
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SEC nominee will support stock option expensing

28 Jul 2005

The US Senate Committee on Banking, Housing and Urban Affairs held a confirmation hearing on 26 July 2005 on President Bush's nomination of Congressman Christopher Cox as Chairman of the US Securities and Exchange Commission.

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Summary record of ARC July 2005 meeting

28 Jul 2005

The European Commission has released the of the Accounting Regulatory Committee (PDF 39k).

At that meeting:

  • The ARC members voted unanimously to endorse, for use in Europe, the IASB's June 2005 Fair Value Option Amendment to IAS 39 and consequential amendments to IFRS 1 and IAS 32.
  • The ARC discussed how European companies should account for emission rights in light of the IASB's withdrawal of IFRIC 3. It was noted that IAS 8 provides guidance on what companies should do if a transaction or event is not specifically addressed in IFRSs. "The CESR representative stated that it was unlikely that they would be looking at companies' accounting treatment of emission rights."
  • Sir David Tweedie, Chairman of the IASB, addressed the ARC on the IASB's work on the convergence of international and national accounting standards. Max Kley, Trustee of the IASC Foundation, gave an update on the completion of the constitutional review. Questions asked by ARC Member States related to:
    • How the decision is made as to which standard (IFRSs or US GAAP) is better.
    • The timetable for convergence and how much change is appropriate in the next few years.
    • Would IASB support a single technical accounting body speaking for Europe rather than the current situation where there are several European bodies.
  • Regarding the joint IASB/FASB performance reporting project, the ARC meeting summary indicates that "some Member States found the proposals for a single statement of comprehensive income unacceptable". In that regard, the IASB chairman said that a final decision on whether to have one or two performance statements has not yet been made.
  • The ARC discussed the issues of consistent application and enforcement of IFRSs in the EU. They considered whether to form a 'roundtable' involving a broad range of stakeholders, including the Commission, IASB/IFRIC, CESR, EFRAG, FEE, the Big Four, national standard setters, and preparers, that could:
    • allow rapid discussion of important accounting issues, thereby minimising the risk of different interpretations of IFRSs across Europe;
    • act as an early warning mechanism for contentious accounting issues; and
    • facilitate cross-border consensus-building, thus minimising subsequent enforcement risks for EU issuers.
    After discussion, the ARC decided to prepare a more detailed paper for the next ARC meeting that would include details on the role and composition of the roundtable, how it would relate to the existing structure of national organisations, and draft terms of reference.
The ARC will meet next on 7 October 2005.
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Agenda for IFRIC meeting 1-2 August 2005

27 Jul 2005

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Monday and Tuesday, 1-2 August 2005.

The agenda for the meeting is set out below.

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1-2 August 2005, London

Monday 1 August 2005

 

  • Administrative matters
  • Minutes of the June 2005 IFRIC meeting
  • IFRIC D12 - D14 Concessions, including IAS 17 – Sale and leasebacks with repurchase options
  • IAS 34 – Interaction with IAS 36 and IAS 39
  • IAS 19 Employee Benefits – Measurement
  • Consideration of recommendations of Agenda Committee as tabled at June meeting of IFRIC from March/April Agenda Committee meeting

    Deferred at June meeting

    • IAS 7 Value-added tax
    • IAS 12 Non-amortisable intangible assets
    • IAS 17 Recognition of operating lease incentives under SIC-15
    • IAS 39 Accounting for securities sold but not yet purchased (short trading)
    Newly tabled at June meeting
    • IAS 11 Classification of contract assets
    • IAS 37 Obligations to repair/maintain another entity's property, plant, and equipment
    • IAS 38 Regulatory asset
    • IAS 39 Meaning of delivery – Gold hedging

     

 

Tuesday 2 August 2005

 

  • IAS 19 Employee Benefits – Defined contribution/defined benefit distinction and allocation of future salary increases
  • IAS 19 Employee Benefits – Effect of minimum funding requirement on the asset ceiling
  • Tabling from June Agenda Committee of wording for issues proposed for rejection
    • Employee long-service leave
    • Employee share loan plans
    • Discretionary participation features
    • Single asset entities
  • Activities of other interpretive bodies

 

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New PCAOB ethics and independence rules, audit standard

27 Jul 2005

The US Public Company Accounting Oversight Board has adopted certain ethics and independence rules addressing tax services, contingent fees, and certain related general ethics and independence standards.

The Board also adopted an auditing standard on reporting on whether a previously reported material weakness in internal control over financial reporting continues to exist. Click for (PDF 19k).
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IFRS 7 release date is 18 August

27 Jul 2005

The IASB has announced that it expects to publish IFRS 7 Financial Instruments: Disclosures and the related Amendment to IAS 1 – Capital Disclosures on 18 August 2005. Revised near-final drafts are now available to IASB subscribers on the IASB's Website.

IFRS 7 will be effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged. Early appliers will be given some relief with respect to comparative prior period disclosures. IFRS 7 will:
  • add certain new disclosures about financial instruments to those currently required by IAS 32;
  • replace the disclosures now required by IAS 30; and
  • put all of those financial instruments disclosures together in a new standard on Financial Instruments: Disclosures. IAS 32 would then deal only with financial instruments presentation matters.
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IFRSs are permitted for listed companies in Morocco

26 Jul 2005

Under a revision to the Stock Exchange Law (Law 52-01), which took effect in May 2004, all companies listed on the Casablanca Stock Exchange with the exception of banks and other financial institutions have a choice of preparing their financial statements using International Financial Reporting Standards or Moroccan GAAP.

Banks and other financial institutions must use Moroccan GAAP.

We have updated our Table Summarising the Use of IFRSs for Reporting by Domestic Listed Companies to reflect the status of IFRSs in Morocco.

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Three Deloitte comment letters to IASB/IFRIC

26 Jul 2005

We have posted the Deloitte letters of comment to the IASB and IFRIC on the following draft documents: (PDF 30k)"We are generally supportive of the Draft Memorandum and commend the International Accounting Standards Board for taking the initiative to forge closer links with the various accounting standard-setters around the world, documenting that process, and placing it on the public record." (PDF 47k)"We support the approach outlined in the Draft Handbook and think that it will be a useful document in explaining the approach to standard-setting adopted by the IASB.

However, we are puzzled about what the IASC Foundation Trustees expect to receive from this exposure.... The Draft Handbook should distinguish clearly the components of its due process (i.e., the principles identified in the IASC Foundation Constitution and the steps adopted voluntarily by the IASB and the IASC Foundation Trustees) from operational practices. We think this distinction is vital because much of the document is explanatory, describing the Board's day-to-day operations and how it puts its due process requirements into effect. We think that the Board should have greater freedom to change operational aspects of its due process without extensive consultation – for example to improve efficiency in light of experience."
  • (PDF 72k)

    "We are supportive of the IFRIC seeking external comment on its review of operations, and generally believe that the proposals in the Consultative Document are a significant step in the right direction. However, we do have some concerns about the rigour of the IFRIC's review of its operations, and whether or not the commonly expressed concerns of constituents have genuinely been addressed."

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