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9 February 2010: Trinidad and Tobago adopts the IFRS for SMEs
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The Institute of Chartered Accountants of Trinidad and Tobago (ICATT) has adopted the IFRS for Small and Medium-sized Entities, as issued by the IASB, for use in Trinidad and Tobago for financial statements for 2009 and prior periods. ICATT's announcement said that "the adoption of this Standard impacts the majority of the entities in Trinidad and Tobago and
would simplify the level of accounting and auditing requirements for qualifying entities choosing to implement the Standard." Prior to adoption of the IFRS for SMEs, SMEs in Trinidad and Tobago used full IFRSs. Now, SMEs may choose either the IFRS for SMEs or full IFRSs. Click for Adoption Notice (PDF 336k).
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9 February 2010: Agenda for February 2010 IASB meeting
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The IASB will hold its February 2010 regular monthly meeting at its offices in London on Monday to Friday 15-19 February 2010. The portion of the meeting on 16 February and afternoons of 17 and 18 February are joint meetings with FASB. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the week. The Standards Advisory Council will meet on 22-23 February. We previously posted the Agenda for the SAC Meeting.
IASB Board Meeting Agenda
15-19 February 2010, London |
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Monday 15 February 2010
Tuesday 16 February 2010
Wednesday 17 February 2010
Thursday 18 February 2010
Friday 19 February 2010
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9 February 2010: Deloitte IFRS newsletter in Chinese
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Deloitte China has published the Chinese translation of the following IAS Plus Update newsletter:
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8 February 2010: Roadmap for transition to IFRS-converged Indian standards
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The Ministry of Corporate Affairs of India has adopted a plan for phased transition to 'notified Indian standards that have been converged with IFRS' (notified standards) by listed and large Indian companies, other than banks and insurance companies. Click for Ministry of Corporate Affairs Press Release (PDF 33k). Here is an overview:
| Phase | Date | Which Companies? |
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| Phase 1 | Opening balance sheet as at 1 April 2011* |
- Companies that are part of NSE Index - Nifty 50
- Companies that are part of BSE Sensex - BSE 30
- Companies whose shares or other securities are listed on a stock exchange outside India
- Companies, whether listed or not, having net worth** of more than Rs 1,000 crore (1 crore = 10 million. Rs 1,000 crore = US$ 212,000,000)
| | Phase 2 | Opening balance sheet as at 1 April 2013* | Companies not covered in phase 1 and having net worth** exceeding Rs 500 crore |
| Phase 3 | Opening balance sheet as at 1 April 2014* | Listed companies not covered in the earlier phases (ie net worth** Rs 500 crore or less) |
* If the financial year of a company commences at a date other than 1 April, then it shall prepare its opening balance sheet at the commencement of immediately following financial year.
** Balance sheet net worth under Indian GAAP, not market capitalisation
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IFRS 1 requires at least one year of comparative IFRS financial statements when IFRSs are first adopted. It is unclear from the reference to 'opening balance sheet' in the Ministry's release whether, for instance, Phase 1 companies will be exempted from preparing comparative financial statements for year ended 31 March 2011 using the notified standards. Companies in the following categories will not be required to follow the notified standards (though they may voluntarily opt to do so) but need to follow only the 'notified accounting standards that are not converged with the IFRS':
- Non-listed companies with a net worth of Rs 500 crores or less and whose shares or other securities are not listed on Stock Exchanges outside India
- Small and Medium Companies ('SMCs').
A separate roadmap for banking and insurance companies is expected to be published by the end of February, 2010.
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8 February 2010: Guyana adopts the IFRS for SMEs
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The Institute of Chartered Accountants of Guyana has adopted the IFRS for Small and Medium-sized Entities, as issued by the IASB, for use in Guyana for financial statements for periods ending on or after 31 December 2009. SMEs may choose either the IFRS for SMEs or full IFRSs. Click for Adoption Notice (PDF 462k).
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7 February 2010: Shortcomings in IFRS transition disclosures in Canada
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Canada's Ontario Securities Commission has published the results of its study of disclosures that have been made by 106 securities issuers in anticipation of their changeover from Canadian GAAP to IFRSs as of 1 January 2011. The review suggests that issuers could do a better job in disclosing their progress toward the transition, and its potential effects, than was done in the 'Management Discussion and Analysis' sections of their 2008 annual and 2009 interim financial reports.
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In 2008 MD&A, we expected issuers to have discussed the status of the key elements and timing of their IFRS changeover plan....
Overall, we found that issuers are not adequately disclosing information related to their IFRS transition efforts. A summary of our findings is as follows:
- 40% of issuers received a letter from staff questioning whether a changeover plan was in place as it was not evident from reading their MD&A disclosure. Given the short time remaining before the changeover date this raises concerns that issuers may not be able to comply with future filing obligations.
- Of the 60% of issuers that discussed an IFRS changeover plan in their 2008 annual MD&A, approximately half simply provided a generic description of the plan without any direct application to their own circumstances. The most valuable information for investors is IFRS transition disclosure that is specific to the issuer.
- 80% of issuers that discussed an IFRS changeover plan failed to describe significant milestones and anticipated timelines associated with each of the key elements of the plan. It is important that issuers discuss the timing associated with key elements so that investors can readily assess whether the project is progressing in accordance with the changeover plan.
- 48% of issuers that discussed IFRS transition in 2008 annual MD&A failed to provide quarterly updates in 2009 interim MD&A on the progress related to their changeover plan. Investors need progress updates to assist them in assessing the likelihood that the issuer
will be able to complete its IFRS conversion on time.
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Click to download the study IFRS Transition Disclosure Review (Staff Notice 52-718) (PDF 442k).
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6 February 2010: Agenda for JIG-FIAG meeting
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The IASB/FASB Joint International Group (JIG) on Financial Statement Presentation and the Financial Institutions Advisory Group (FIAG) will meet on Friday 12 February 2010 from 8:00am to 3:00pm EST (New York time) at the offices of the Financial Accounting Standards Board in Norwalk, CT USA. The JIG consists of senior professionals with extensive experience in and responsibility for the preparation, analysis, audit, and regulation of financial statements. The FIAG advises on presentation issues from the perspective of those who analyse and prepare financial institution financial statements. Presented below is the agenda for the meeting.
Agenda for the Joint JIG-FIAG Meeting
12 February 2010, Norwalk, CT USA |
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- Welcome, Introductions
- Classification, Cohesiveness, Definitions
- Disaggregation principle (nature, function, Statement of Financial Position)
- Direct method: Statement of Cash Flows
- Analysis of changes in Statement of Financial Position line items
- Remeasurements
- Transitional provisions
- Package of decisions and illustration
- Post Exposure Draft: outreach, field test, next steps
Agenda papers are available Here.
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6 February 2010: Heads Up on climate change disclosures
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Deloitte United States has published an issue of the Heads Up newsletter SEC Issues Interpretive Guidance on Disclosures Related to Climate Change (PDF 11k) discussing the SEC's recent interpretive release outlining its views on applying existing disclosure rules to climate-change matters. In addition to summarising the disclosure rules and regulations, the release discusses considerations for registrants that are determining whether climate change and its related consequences have triggered a disclosure requirement. Here are:
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5 February 2010: Updated EFRAG 'endorsement status report'
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The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 4 February 2010 (PDF 119k). Eight IASB pronouncements await EC endorsement. You can always find the endorsement status report Here.
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5 February 2010: IFRS Insights newsletter
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We have posted the IFRS Insights Newsletter for January-February 2010 (PDF 415k) from Deloitte & Touche LLP (United States). IFRS Insights provides news on the latest developments on IFRSs, practical suggestions for companies addressing IFRSs, updates on the regulatory environment, and references to relevant tools and resources. This issue includes:
- Updates on SEC activity and FASB/IASB convergence efforts
- Share-based Payments: Accounting differences between US GAAP and IFRSs
- Technical Corner: IFRS 9 Financial Instruments
- IFRS Survey: A look at the numbers
We have Permanent Links to all IFRS Insights on our USA country page.
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4 February 2010: Two IASB Board Members are appointed
 Dr Koenig
 Mr Scott
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The Trustees of the IASC Foundation have appointed two financial executives to the IASB:
- Elke Koenig – former member of the executive board and chief financial officer (CFO) of Hannover Re Group (Germany). Dr Koenig has served as a senior financial executive in the insurance industry. From 2002 to 2009 she served as CFO of Hannover Re Group, a leading international reinsurance group. Previously she spent twelve years as a member of the senior management of Munich Re, with specific responsibility for the group's accounting and controlling activities. She is currently serving in non-executive capacities as chairperson of Hannover Finanz GmbH and as a member of the supervisory board of Deutsche Hypothekenbank Actiengesellschaft. Dr Koenig has been a member of the CFO Forum of European insurers, where she has been actively engaged in the IASB's project on insurance contracts.
- Darrel Scott – CFO of the FirstRand Banking Group (South Africa). Mr Scott is CFO of the FirstRand Banking Group, one of the largest financial institutions in South Africa. He has responsibility for both statutory and regulatory financial reporting under the Basel II Accords. He serves on various governance, risk, operations and strategic committees of the Group. Mr Scott is also a member of the IASB's International Financial Reporting Interpretations Committee (IFRIC), a position from which he will resign to become an IASB member, and was formerly a member of the IASC Foundation's Standards Advisory Council (SAC).
Dr Koenig and Mr Scott will begin their five-year terms as full-time members of the IASB in July and October 2010 respectively. The appointments fill vacancies that will be created by the retirement of Robert Garnett and Gilbert Gelard on 30 June 2010. A search is ongoing for a replacement for Jim Leisenring, who also retires at the end of June 2010.
Click for Press Release (PDF 28k).
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4 February 2010: PCAOB progress in international audit firm inspections
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The US Public Company Accounting Oversight Board has released information about the status of inspections of registered non-US accounting firms. (As of 20 Jan 2010 there were 926 non-US audit firms registered with the PCAOB.) The PCAOB said it conducted inspections of one or more registered firms in 33 jurisdictions as of December 2009. At the same time, the PCAOB noted that in 2009 it was denied access to information necessary to conduct inspections in China, Finland, France, Germany, Greece, Ireland, the Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom. Discussions are continuing with the relevant authorities in those jurisdictions in an effort to resolve their objections to PCAOB inspections. The PCAOB has announced the 28 jurisdictions in which the PCAOB plans to conduct inspections in 2010, including all of those in which access was denied in 2009. Click for PCAOB Announcement (PDF 40k) with active hyperlinks to additional information.
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4 February 2010: Research paper on definition of an asset
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The European Financial Reporting Advisory Group (EFRAG) and the Autorité des Normes Comptables (ANC, French accounting standard setter) have jointly published a staff research paper on the proposed new definition of an asset tentatively adopted by the IASB and FASB. The paper – Pro-active Paper on the Definition of an Asset (PDF 336k) – is intended to serve as input to the IASB in its deliberation on the development of the Conceptual Framework Phase B.
Current definition of an asset in the IASB Framework:
An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
Proposed new definition:
An asset of an entity is a present economic resource to which the entity has a right or other access that others do not have.
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The paper tests a dozen arrangements against the two definitions: cash on hand, an account receivable, an assembled workforce, goodwill, a lottery ticket, an offer of future discounts to potential customers, know-how/knowledge acquired as a result of research expenditures, an improved position in the market/new customer relationship resulting from marketing efforts, contracts, a licence to operate in a restricted market, a deferred tax item for an unused tax loss, and a planned transaction. While the first six arrangements were also tested by the IASB/FASB staff, the last six arrangements were solely chosen and analysed by the EFRAG/ANC project staff.
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3 February 2010: Upcoming meetings
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The IASB has scheduled a large number of meetings over the next two months, including several special joint IASB-FASB Board meetings aimed at progressing agenda projects planned for completion by mid-2011. IAS Plus visitors might find a combined list helpful (below). All are open to public observation. Board and IFRIC meetings are webcast. Details, including agenda, of the meetings may be found (in due course) on the IASB's Website (click on 'meetings diary').
IASB-FASB Special Joint Board Meeting
- Date: Wednesday 10 February 2010 (Noon to 14:00pm GMT)
- Location: IASB Boardroom, London
Meeting of the IASB/FASB Joint International Group on Financial Statement Presentation and Financial Institutions Advisory Group
- Date: Friday 12 February 2010
- Location: The Financial Accounting Standards Board, Norwalk , CT USA
IASB Regular Monthly Board Meeting - February 2010
- Date: Monday-Friday 15-19 February 2010 (16-18 February will be joint with FASB)
- Location: IASB Boardroom, London
Standards Advisory Council Meeting
- Date: Monday-Tuesday 22-23 February 2010
- Location: Renaissance Chancery Court Hotel, London
Meeting of IASB representatives with the Analyst Representative Group
- Date: Wednesday 24 February 2010
- Location: IASB Boardroom, London
Expert Advisory Panel on Impairment of Financial Assets)
- Date: Thursday-Friday 25-26 February 2010
- Location: IASB Board Room, London
IASB-FASB Special Joint Board Meeting
- Date: Wednesday-Thursday 2-3 March 2010
- Location: IASB Boardroom, London
International Financial Reporting Interpretations Committee Meeting
- Date: Thursday-Friday 4-5 March 2010
- Location: IASB Boardroom, London
IASB-FASB Special Joint Board Meeting
- Date: Thursday 11 March 2010
- Location: IASB Boardroom, London
IASB Regular Monthly Board Meeting - March 2010
- Date: Monday-Friday 15-19 March 2010 (15-17 March will be joint with FASB)
- Location: IASB Boardroom, London
IASB-FASB Joint Board Meeting
- Date: Monday-Wednesday 22-24 March 2009
- Location: IASB Boardroom, London
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3 February 2010: Deloitte's iGAAP 2010–A Guide to IFRS Reporting
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Deloitte has published iGAAP 2010–A Guide to IFRS Reporting. This 2,918-page book sets out comprehensive guidance for entities reporting under IFRSs. The Guide:
- focusses on the practical issues faced by reporting entities;
- explains clearly the requirements of IFRSs;
- adds interpretation and commentary where IFRSs are silent, ambiguous or unclear; and
- provides many illustrative examples.
The Guide deals comprehensively with those new Standards that apply for periods beginning in 2009 and also covers those further pronouncements issued by the IASB up to 30 June 2009 that will apply from 2010. This edition of the manual includes new material dealing with:
- IFRS 6 Exploration for and Evaluation of Mineral Resources;
- the revised version of IFRS 1 First-time Adoption of International Financial Reporting Standards (November 2008);
- the amendment to IFRS 2 Group Cash-settled Share-based Payment Transactions (June 2009);
- the amendment to IFRS 7 Improving Disclosures about Financial Instruments (March 2009);
- the amendment to IAS 39 Eligible Hedged Items (July 2008);
- the amendments to IAS 39 and IFRS 7 Reclassification of Financial Assets (October 2008);
- the amendments to IFRIC 9 and IAS 39 Embedded Derivatives (March 2009);
- Improvements to IFRSs issued in April 2009;
- IFRIC 17 Distributions of Non-cash Assets to Owners;
- IFRIC 18 Transfers of Assets from Customers; and
- additional examples and guidance on issues arising in practice.
Orders may be placed via www.lexisnexis.co.uk/deloitte or call +44 (0) 845 370 1234. Click for Descriptive Booklet about This and Related iGAAP Publications for 2010 (PDF 248k).
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3 February 2010: Notes from Special 2 Feb 2010 IASB meeting
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The IASB and FASB held a special Joint Board meeting at the IASB's offices in London on Tuesday 2 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
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3 February 2010: Accounting Roundup – January 2010
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We have posted the January 2010 Edition of Accounting Roundup (PDF 283k) published by Deloitte & Touche LLP (United States). The newsletter is now organised by topic rather than by standard-setter. Topics covered in this issue include:
Business Combinations
- FASB Issues ASU on Not-for-Profit Mergers and Acquisitions
Consolidation
- FASB Votes to Finalize Deferral of Statement 167 for Certain Investment Funds
- FASB Clarifies Scope of Decrease-in-Ownership Provisions in ASC 810-10
- FASB Issues ASU on Variable Interest Entities
Contingencies
- IASB Reexposes Proposals for the Measurement of Liabilities in IAS 37
Earnings per Share
- FASB Issues Guidance on Accounting for Distributions to Shareholders With Components of Stock and Cash
Fair Value Measurements and Disclosures
- FASB Issues ASU on Improving Disclosures About Fair Value Measurements
- AICPA Publishes Draft Issues Paper on Fair Value Measurements and Disclosures About Certain Issues Pertaining to Not-for-Profit Entities
Financial Instruments
- FASB Deliberates Approach to Accounting for Credit Impairment and Interest Income
Income Taxes
- French Business Tax Law Change
Stock Compensation
- FASB Issues ASU on Escrowed Share Arrangements and the Presumption of Compensation
Transfers and Servicing
- FASB Issues ASU on Accounting for Transfers of Financial Assets
Industry Accounting
- FASB Updates Oil and Gas Reserve Estimation and Disclosure Requirements
Other Accounting
- Financial Reporting Considerations Related to Venezuela's Currency Exchange Controls and Highly Inflationary Status
- FASB Proposes Amendments to Subsequent-Events Disclosure Requirements
- FASB Publishes Revised Notice to Constituents About the Codification
- FASB Issues Technical Corrections to SEC Content
- AICPA Issues Technical Practice Aids
SEC Matters
- SEC Approves Interpretive Guidance on 'Climate-Change' Disclosures
- SEC Approves PCAOB Auditing Standard 7
- SEC Issues Compliance and Disclosure Interpretations on Non-GAAP Measures
- SEC Issues Final Say-on-Pay Rules for TARP Companies
- SEC Issues Compliance and Disclosure Interpretations on Proxy Disclosure Enhancements
Other Auditing
- PCAOB Issues Staff Guidance
- ASB Proposes Various Statements on Auditing Standards
- AICPA Issues Guidance on Compilation and Review Engagements
- AICPA's GAQC Issues Statement on Compliance Audits
GASB Matters
- GASB Issues Final Statement on OPEB Measurements
- GASB Issues Final Statement on Chapter 9 Bankruptcies
Other International
- FCAG Issues Letter to G-20 on IASB and FASB Progress
- IASB Issues Limited Exemption Amendment to IFRS 1
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You will find past issues of Accounting Roundup Here.
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2 February 2010: Newsletter on amendment to IFRS 1
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Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Limited Exemption from Comparative IFRS 7 Disclosures for
First-time Adopters (PDF 75k). On 28 January 2010, the IASB amended IFRS 1 First-time Adoption of International Financial Reporting Standards to exempt first-time adopters of IFRSs from providing the additional disclosures introduced in March 2009 by Improving Disclosures about Financial Instruments (Amendments to IFRS 7). The amendment gives first-time adopters the same transition provisions that Amendments to IFRS 7 provides to current IFRS preparers. The amendment is effective on 1 July 2010, with earlier application permitted. This newsletter explains the amendment. Past issues of all of our IAS Plus newsletters are Here.
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1 February 2010: Agenda for February 2010 SAC meeting
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The Standards Advisory Council will meet with the IASB on Monday and Tuesday 22-23 February 2010 at the Renaissance Chancery Court Hotel, 252 High Holborn, London. A draft agenda has been posted on the IASB's website and is summarised below. The SAC provides a forum for the IASB to consult a wide range of interested parties affected by the IASB's work, with the objective of:
- advising the Board on agenda decisions and priorities in the Board's work,
- informing the Board of the views of the organisations and individuals on the Council on major standard-setting projects, and
- giving other advice to the Board or to the Trustees.
Standards Advisory Council Meeting Agenda
22-23 February 2010, London |
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Monday 22 February 2010 (10:00am-17:30pm)
- Welcome and Chairman's preview
- Overview of last four months
- IASB Activities
- Report of the Chair and Vice-Chairs
- Update on major projects that are the most challenging in terms of meeting the June 2011 deadline
- Other activities
- NSS update – Overview of the role that the National Standard Setters (NSS) plays, including major projects underway or proposed
- EFRAG update – Overview of the role that the EFRAG plays, including major projects underway or proposed
- SEC update – Update on recent developments at the SEC and the roadmap for IFRS adoption in the US
- SAC Member activities
- XBRL and its interaction with disclosure requirements
- The IASB work plan post June 2011
- Break-out Sessions (The IASB work plan post June 2011)
Tuesday 23 February 2010 (9:15am to 12:30pm)
- The IASB work plan post June 2011 – Report back from the break-out sessions
- Effects analysis – What is effects analysis?
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1 February 2010: Updated summary of IFRIC agenda rejections
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We have updated our Summary of Issues Not Added to IFRIC's Agenda to reflect the IFRIC's final decisions at its January 2010 meeting not to add the following topics to its agenda. Our summary now includes over 175 issues:
- IFRS 2 Share-based Payment – Transactions in which the manner of settlement is contingent on future events
- IFRS 4 Insurance Contracts and IAS 32 Financial Instruments: Presentation – Scope issue for REITs
- IAS 18 Revenue – Receipt of a dividend of equity instruments
- IAS 27 Consolidated and Separate Financial Statements – Combined financial statements and redefining the reporting entity
- IAS 27 Consolidated and Separate Financial Statements – Presentation of comparatives when applying the 'pooling of interests' method
- IAS 32 Financial Instruments: Presentation – Application of the 'fixed for fixed' condition
- IAS 38 Intangible Assets – Amortisation method
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Click for Earlier February News.
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