News

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SEC unveils 'IDEA' replacement of EDGAR system

22 Aug 2008

The US Securities and Exchange Commission Chairman Christopher Cox has unveiled the successor to the agency's 1980s-era EDGAR database, which will give investors far faster and easier access to key financial information about public companies and mutual funds.

Based on a completely new architecture being built from the ground up, it will at first supplement and then eventually replace the EDGAR system. The decision to replace EDGAR marks the SEC's transition from collecting forms and documents to making the information itself freely available to investors to give them better and more up-to-date financial disclosure in a form they can readily use. The new system is called IDEA, short for Interactive Data Electronic Applications. IDEA will enable investors will be able to instantly collate information from thousands of companies and forms, and create reports and analysis on the fly, in any way they choose.

On 14 May 2008, the US Securities and Exchange Commission proposed that all registrants be required to file their data with the SEC in XBRL (interactive data) format. XBRL reporting would be required for registrants using either US GAAP or IFRSs. The transition would take three years starting in 2008. There's more information in our News Story of 16 May 2008. A few days later, the Commission proposed that more than 8,000 mutual funds trading in the US would also be required to file XBRL date (see our News Story of 26 May 2008).
The SEC's On-Line News Release includes links to a video demonstration of IDEA.

 

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'Fair Value Update' from Deloitte United States

22 Aug 2008

Since the Financial Accounting Standards Board issued SFAS 157 Fair Value Measurements and SFAS 159 The Fair Value Option for Financial Assets and Financial Liabilities, fair value measurements have gained notoriety and been the topic of many headlines in the United States due to the current credit markets turmoil.

Deloitte (United States) has published a Fair Value Update Newsletter (PDF 397k) covering issues from the widespread adoption of SFAS 157 and SFAS 159. Specifically, the newsletter examines the Form 10-Q filings from 50 SEC registrants for the first quarter of 2008 and analyses their respective disclosures related to SFAS 157 and SFAS 159. The analysis includes entities from the banking, insurance, investment management, and energy industries, as well as other corporate filers. There are related resources on our Credit Crunch Page.
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IAS Plus newsletter on earnings per share exposure draft

20 Aug 2008

Deloitte's IFRS Global Office has published a Special Edition IAS Plus Newsletter – IASB and FASB issue proposed amendments to Earnings per Share.

The ED was issued 7 August 2008. It proposes to amend IAS 33 Earnings per Share (EPS) to simplify the calculation of EPS and to converge the international standard and US GAAP. Comments are requested by 5 December 2008. Concurrently, the US Financial Accounting Standards Board has proposed to amend its EPS standard, SFAS 128 Earnings per Share.
Click to view Special Edition IAS Plus Newsletter – IASB and FASB issue proposed amendments to Earnings per Share (PDF 146k). You will find all Past IAS Plus Newsletters Here.

 

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Asset valuation standards in China

16 Aug 2008

The Summer 2008 issue of Valuation Notes, published by American Appraisal, includes an article on the valuation standards system in China.

The article explains the roles of three key committees recently established in China by the government and the appraisal profession – the Asset Appraisal Standards Committee, the Asset Appraisal Standards Technical Committee, and the Asset Appraisal Standards Advisory Committee. Currently, there are 15 appraisal standards in China, of which 8 have been adopted since November 2007. In addition, the article identifies over 20 topics that will be addressed in new standards that are currently under development. Click to download American Appraisal Valuation Notes Summer 2008 (PDF 857k). This publication is copyright American Appraisal and is posted here with their kind permission.

 

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IAS Plus newsletter on Annual Improvements 2008

16 Aug 2008

Deloitte's IFRS Global Office has published a Special Edition IAS Plus Newsletter — IASB Releases Omnibus Exposure Draft of Annual Improvements for 2008.

The ED was issued 7 August 2008 and includes 12 separate proposed amendments that would impact 8 different Standards. Most of the proposals would be effective for annual periods beginning on or after 1 January 2010, with earlier adoption permitted. However, those arising from the revised IFRS 3 Business Combinations would take effect 1 July 2009 (in line with the effective date of that standard).
Click to view Special Edition IAS Plus Newsletter — IASB Releases Omnibus Exposure Draft of Annual Improvements for 2008 (PDF 146k). You will find all Past IAS Plus Newsletters Here. 

 

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Update on the US SEC and IFRSs

15 Aug 2008

In a recent address to the American Bar Association's Committee on Federal Regulation of Securities, John W White, Director of the Division of Corporation Finance of the US Securities and Exchange Commission presented an update on the activities of his Division and the Commission.

A portion of his comments focused on IFRSs. Click to Download Mr White's Remarks (PDF 143k). Here is an excerpt:

We put out a concept release on this last August, and held two roundtables in December, at which we received a great deal of very thoughtful input. Back in February, Chairman Cox asked that Corp Fin and the Office of the Chief Accountant formally propose to the Commission a 'roadmap' laying out a schedule, with appropriate milestones on which the schedule will be conditioned, for continuing the US's progress in moving to accept IFRS in this country. We have a large team actively working on this project, and even held another roundtable on the topic last Monday, August 4, at which we received yet more helpful information from members of the public. So hopefully we will be prepared to make a recommendation soon. But as always, remember my disclaimer.

In anticipating all of this, I would suggest that you keep the following in mind:

  • We are headed toward a single set of high quality, globally accepted accounting standards – there is general agreement that having a single set of high quality, globally accepted accounting standards will benefit the capital markets generally including investors, as financial statements of global issuers become more comparable on a cross-border basis.
  • The choices are US GAAP and IFRS.
  • Over 100 countries require or accept IFRS.
  • So, IFRS is where the future is (not US GAAP).
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Update of our IASC-IASB chronology

15 Aug 2008

We have updated our Chronology of the IASC and the IASB to reflect recent events, exposure drafts, and final standards and interpretations.

The chronology goes back to 1966.
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IFRS and the mining industry

14 Aug 2008

Publicly accountable entities in Canada are required to switch to IFRSs starting in 2011 (with an option to adopt IFRSs earlier, even in 2008, with approval of the Provincial securities regulator).

The transition from Canadian GAAP will be different for every company. However, particular industries will experience common themes and issues. Deloitte (Canada) has published IFRS and the Mining Industry: Top Ten Accounting Issues for Canadian Issuers in both English and French: This publication provides Deloitte's viewpoints on the following IFRS changeover issues in the mining industry:
  1. Impairment
  2. Mineral resources and property, plant and equipment
  3. Provisions and asset retirement obligations (including decommissioning and restoration costs)
  4. Business combinations, consolidation, and special purpose entities
  5. Joint ventures
  6. Borrowing costs
  7. Foreign currency
  8. Financial instruments
  9. Income taxes
  10. First-time adoption of IFRSs

 

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Heads Up discusses IASB/FASB earnings per share proposals

14 Aug 2008

The latest issue of Heads Up titled 'A Common Denominator: FASB and IASB Issue Exposure Documents on EPS' is now available.

It discusses the exposure documents issued Last Week by the FASB and IASB reflecting efforts by the boards to converge the guidance on earnings per share in US GAAP and International Financial Reporting Standards and to clarify and simplify this guidance.
Click to view A Common Denominator: FASB and IASB Issue Exposure Documents on EPS (PDF 155k).

 

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Discussing an IFRS changeover plan in the MD&A

14 Aug 2008

As part of their programme to provide guidance to clients and others on Canada's transition to IFRSs, Deloitte (Canada) has published How to Monitor a Sea Change: Discussing Your IFRS Changeover Plan in the MD&A.

This booklet discusses the contents of a changeover plan and how to explain the plan in a company's 'Management Discussion and Analysis'. A sample changeover plan is included. Click to download English and French versions: There is much more information about Canada's transition to IFRSs on our Canada Page and on Deloitte Canada's IFRS Transition Page.

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