News

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New Deloitte Guide to IFRS 5

26 Mar 2008

The Deloitte IFRS Global Office has published an IAS Plus Guide to IFRS 5 Assets Held for Sale and Discontinued Operations.

Since issuance of IFRS 5 in 2004, various practical application issues have arisen – principally because the guidance in the Standard is not always clear as to how certain transactions should be accounted for and how the requirements of IFRS 5 interact with those of other Standards. This guide, in addition to providing detailed summaries and explanations of the requirements of IFRS 5, includes supplementary guidance and examples based on Deloitte's experience with the Standard. It summarises the latest IFRS thinking and the evolving literature – including on issues such as partial disposals of subsidiaries, and the impact of the disclosure requirements of other Standards. Appendices provide a comparison with US GAAP and a checklist of IFRS 5's presentation and disclosure requirements.
Click to view IAS Plus Guide to IFRS 5 Assets Held for Sale and Discontinued Operations (PDF 813k). Our IFRS Publications Page has permanent links to this and many other Deloitte IFRS publications.

 

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IFAC's 2008 auditing, assurance, and ethics handbook

25 Mar 2008

The International Federation of Accountants (IFAC) has released its 2008 Handbook of International Auditing, Assurance, and Ethics Pronouncements.

The handbook can be downloaded free of charge in PDF format from the IFAC Website. Print copies can be purchased for US$150 plus shipping. The handbook includes all pronouncements on auditing, review, other assurance, and related services issued by the IAASB as of 1 January 2008. It also includes the IFAC Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants, along with new definitions for 'firm', 'network', and 'network firm'. Click for Press Release (PDF 35k).

 

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Agenda project pages updated

25 Mar 2008

We have updated the following IASB agenda project pages to reflect the discussions and decisions at the IASB's meeting on 11-14 March 2008.

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US SEC – next steps toward mutual recognition

25 Mar 2008

The US Securities and Exchange Commission has announced a series of actions it intends to take to further the implementation of the concept of mutual recognition for high-quality regulatory regimes in other countries.

Click for SEC Announcement (PDF 38k). Here is an overview:

The Commission contemplates taking the following actions:

  • Exploring initial agreements with one or more foreign regulatory counterparts, which would be based upon a comparability assessment by the SEC and by the foreign authority of one another's regulatory regimes.
  • Considering adoption of a formal process for engaging other national regulators on the subject of mutual recognition. This process could be accomplished through rulemaking or other appropriate mechanisms, possibly informed by one or more initial agreements with other regulators.
  • Developing a framework for mutual recognition discussions with jurisdictions comprising multiple securities regulators tied together by a common legal framework, including Canada (which has no national securities regulator, but rather provincial regulators) and the European Union (whose national securities regulators are subject to supranational legislation and directives).
  • Proposing reforms to Rule 15a-6 in order to improve the process by which US investors have access to foreign broker-dealers.

 

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IASB Webcast on employee benefits Discussion Paper

23 Mar 2008

On 27 March 2008 the IASB will release its Discussion Paper (DP) on post employment benefits titled Preliminary Views on Amendments to IAS 19 Employee Benefits.

On that day, Stephen Cooper, Member of the IASB, will introduce the DP in a live Web presentation from 12:00pm to approximately 12:30pm GMT. Click here for More Information and Registration Details on the IASB website.

 

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Deloitte Canada Countdown IFRS transition newsletter

21 Mar 2008

Deloitte Canada has released the second issue of a new Countdown IFRS transition newsletter, to provide a snapshot of where we are now as far as IFRS is concerned – both in Canada and in Deloitte.

This issue of Countdown focuses on the initial stages of IFRS implementation to help Canadian companies determine their priorities. Articles cover the transition journey: where are we now?; IFRS implementation planning; conversion activities; conference activities (including a 14 April 2008 webcast on IFRSs in Canada); and IFRS impacts beyond financial reporting. Click to download: You also can find information about financial reporting in Canada on our Canada Page.

 

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Two publications from Deloitte Czech Republic

21 Mar 2008

Deloitte Czech Republic has published IFRS model financial statements and an IFRS presentation and disclosure checklist, both for 2007 and in the Czech language.

You can download them using the links below and also from our Model Financial Statements Page and also from our Czech Republic Page:

 

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Discussion Paper on financial instruments

20 Mar 2008

The IASB has published for comment a Discussion Paper (DP) on Reducing Complexity in Reporting Financial Instruments.

The DP examines the main causes of complexity under IFRSs today – such as "many alternatives, bright lines, and exceptions that often obscure the underlying principles". The DP concludes that the long-term solution is a single measurement principle for all financial instruments within the scope of a standard, and explains why "fair value seems to be the only measurement attribute that provides relevant information for all types of financial instruments". However, many issues and concerns must be addressed before a general fair value measurement requirement could be introduced. Consequently, the paper suggests possible intermediate approaches that would improve and simplify measurement and hedge accounting requirements relatively quickly – including any or a combination of:
  • Amending the existing measurement requirements in IAS 39, for instance, by reducing the number of categories of financial instruments
  • Replacing the existing IAS 39 measurement requirements with a fair value measurement principle and some optional exceptions to fair value measurement
  • Simplifying hedge accounting

The DP is organised as follows:

  • Section 1 Problems related to measurement
  • Section 2 Intermediate approaches to measurement and related problems
  • Section 3 A long-term solution – a single measurement method for all types of financial instruments
  • Appendices
    • A Scope issues to be resolved
    • B Measurement issues to be resolved
    • C Overview of relevant IASB and joint IASB-FASB projects
    • D Overview of FASB project on hedge accounting
    • E Questions for respondents
The DP is the first step in an IASB project that would replace IAS 39. The DP is being published by the IASB. However, it will also be considered for publication by the US Financial Accounting Standards Board for comment by its constituents. The IASB requests responses to the DP by 19 September 2008. Click for Press Release (PDF 79k).

 

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Group cash-settled share-based payment transactions

19 Mar 2008

Deloitte has submitted a Letter of Comment on the IASB's Exposure Draft IFRS 2: Group and Treasury Share Transactions – Group Cash-settled Share-based Payment Transactions.

The Exposure Draft responds to requests for guidance on how a group entity that receives goods or services from its suppliers (including employees) should account for the following arrangements (referred to by the IASB as group cash-settled share-based payment transactions):
  • Arrangement 1: The entity's suppliers will receive cash payments that are linked to the price of the equity instruments of the entity
  • Arrangement 2: The entity's suppliers will receive cash payments that are linked to the price of the equity instruments of the entity's parent
We support the proposal but believe that the IASB is missing an opportunity to develop a principle that has broader application. An excerpt from our letter:

Whilst we support the proposed amendments, we believe that the amendments provide the IASB with an opportunity to develop a principle for the accounting for all types of share-based payment arrangements involving group entities and owners of the entity as a whole. Such an approach would help to avoid issuing interpretations and amendments on the accounting for share-based payment transactions on a piecemeal basis by the Board.

To establish such a principle, we believe that the definition of a 'share-based payment transaction' in Appendix A of IFRS 2 should be amended to clarify that share-based payments involving group entities meet that definition.

We also encourage the Board to consider addressing situations where linkage of separate transactions may be appropriate in share-based payment transactions involving group entities.

All of our Past Letters of Comment to the IASB are here.

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Summary of issues not added to IFRIC agenda is updated

18 Mar 2008

We have updated our Summary of Issues Not Added to IFRIC's Agenda to reflect the IFRIC's final decision at its March 2008 meeting not to add the following topic to its agenda.

Our summary now includes over 130 issues:
  • IAS 7 – Classification of Expenditures as Investing or Operating

 

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