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31 October 2001: Singapore GAAP moves closer to IAS
During the past two years the Institute of Certified Public Accountants of Singapore (ICPAS) has issued over a dozen new and revised accounting standards in their effort to harmonise the Singapore Statements of Accounting Standards (SAS) with IAS. While SAS is largely equivalent to IAS, some major differences remain. Deloitte Touche Tohmatsu has published a Comprehensive Review of Recent Changes to Singapore Standards (PDF 270k). The book includes a table of remaining differences with IAS. Click here to go to our Singapore Page.
30 October 2001: Securities regulation in the global internet economy
The SEC Historical Society in cooperation with the SEC is sponsoring a major issues conference on securities regulation in the global internet economy. The conference will be held in Washington on 14-15 November. Among the featured speakers are SEC Chairman Harvey Pitt, IASB Chairman Sir David Tweedie, FASB Chairman Edmund Jenkins, French COB Chairman Michel Prada, London Stock Exchange Chairman Donald Cruikshank, NY Stock Exchange Chairman Richard Grasso, and US Senate Banking Committee Chairman Paul Sarbanes. Click for:
27 October 2001: FEE website now includes expanded EFRAG information
The website of the European Federation of Accountants (FEE) has expanded its information about the European Financial Reporting Advisory Group (EFRAG), including meeting agendas, summaries of decisions reached, and press releases. EFRAG's roles are to provide input to IASB from the perspective of the European accounting profession and to advise the European Commission on the technical assessment of IASB Standards and Interpretations for application in Europe. The European Commission has proposed that listed companies in Europe be required to use IAS by 2005.
26 October 2001: Americas edition of IASPlus newsletter posted
The October 2001 Americas edition of our IASPlus newsletter has been posted. Click: Download (PDF 132k) or More Information and Prior Issues.
25 October 2001: FEE study on how European companies are applying IAS 19
The Federation of European Accountants (FEE) has published a study of the experience of 47 European companies (the majority of which are listed) in applying IAS 19 (revised 1998), Employee Benefits, in their consolidated financial statements. It also includes a survey of national legislation and standards regarding pension accounting in the countries concerned. Click for: FEE Press Release (PDF 41k) or Download the IAS 19 Study (PDF 143k).
25 October 2001: FEE study on how European companies are applying IAS 19
The Federation of European Accountants (FEE) has published a study of the experience of 47 European companies (the majority of which are listed) in applying IAS 19 (revised 1998), Employee Benefits, in their consolidated financial statements. It also includes a survey of national legislation and standards regarding pension accounting in the countries concerned. Click for: FEE Press Release (PDF 41k) or Download the IAS 19 Study (PDF 143k).
24 October 2001: IASB remands SIC D27 for further work
At its meeting last week, the IASB Board considered the latest draft of a proposed SIC Interpretation, Transactions in the Legal Form of a Lease and Leaseback and concluded that the SIC should do further work on the document, including addressing the issue of derecognition of the leased asset. This is the second time that the Board has remanded D27 to the SIC without approval.
24 October 2001: Europe-Africa edition of IASPlus newsletter posted
The October 2001 Europe-Africa edition of our IASPlus newsletter has been posted. Click: Download (PDF 625k) or More Information and Prior Issues.
24 October 2001: Paul Rutteman named EFRAG secretary general
Paul Rutteman, retired partner of Ernst & Young, has been named the first secretary general of the European Financial Reporting Advisory Group (EFRAG). EFRAG is an accounting technical committee that has been set up as a private-sector initiative by the principal European organisations interested in financial reporting. EFRAG will serve as the "IAS endorsement mechanism" for Europe by making recommendations to the European Commission regarding acceptance of IASB Standards. Click for EFRAG Press Release (PDF 73k).
23 October 2001: Report on IASB meeting 16-20 October 2001
We have posted a Summary of IASB's Meeting in Washington 16-20 October 2001. The Board met with its Advisory Council on 16-17 October and then deliberated four agenda projects on 18-20 October. We have also updated our individual project files for the four projects to reflect discussions at the meeting:
21 October 2001: Debate over IASB's project on stock options in US Congress
Excerpt from a story, Time to Look at Stock Options' Real Cost, in The New York Times of 21 October 2001:
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"Last week, word came that Representative Michael G. Oxley, the Ohio Republican who is chairman of the House Committee on Financial Services, had taken a stand against true evil: the International Accounting Standards Board. His act of bravery was voicing his determination to keep America safe from the proper accounting of companies' stock options...."
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19 October 2001: Netherlands proposes to allow reporting under IAS or US GAAP
The Netherlands Council of Ministers has agreed to a bill that would permit Dutch companies to prepare their financial statements using IAS or US GAAP instead of Dutch accounting rules. The action was taken for two reasons. First, since all European listed companies will be required to use IAS in 2005, Dutch companies will be able to make the switch sooner if they choose. Second, allowing IAS or US GAAP will ease the burden on the many Dutch companies that now have to prepare two sets of financial statements because they seek capital in overseas markets. The bill has been sent to the Council of State for advice, after which the House of Commons must approve.
18 October 2001: Insurers, DTT conduct a forum on insurance accounting
A group of insurers (Allianz, AXA, CGNU, Munich Re, Swiss Re, and Zurich Financial Services) with the assistance of Deloitte Touche Tohmatsu, sponsored a forum in Paris on 9 and 10 October to discuss The Insurance Industry and IAS: Challenges and Opportunities. The forum brought together CEOs and CFOs of major insurance companies, investors, analysts, standard-setters including representatives from the IASB, regulators, actuaries, and auditors to debate the issues surrounding financial reporting by insurance groups, particularly on the accounting for insurance contracts and performance reporting. Click for IASB Project Information. You can download these key conference documents:
16 October 2001: IOSCO creates a 'terrorism' project team
IOSCO has created a special Project Team, chaired by Michel Prada of the French COB, to explore actions that securities regulators should take in view of the events of 11 September and their aftermath. Click for IOSCO News Release (PDF 88k).
16 October 2001: DTT comments on JWG financial instruments proposal
We have posted the Deloitte Touche Tohmatsu Response to the Joint Working Group Proposal on Financial Instruments (PDF 114k). Click here for Project Information. Our basic position:
- We support the increased use of fair values for financial instruments in financial statements as part of the evolutionary process that may ultimately result in a full fair value accounting model for financial instruments. However, we will not support the recognition in the income statement of changes in the fair values of financial instruments that are not being held for trading until issues relating to performance reporting and fair value measurement are resolved.
- We believe that a movement to fair value accounting should be an evolutionary process that is accomplished in stages. IAS 32 started the movement by requiring disclosures of fair values of financial instruments. IAS 39 continued that movement by requiring that all derivatives and most financial instruments be reported at fair value. We believe the next step in the evolution could be a partial increase in the use of fair value accounting.
- We recommend that the next step in the process of moving to fair value accounting for
financial instruments be accomplished by amending IAS 39 to eliminate the use of amortized cost for originated loans, held-to-maturity financial assets and financial liabilities. Enterprises would have a choice of recognizing changes in fair value in equity or in the income statement, except that there should be no choice for financial instruments held for trading. Enterprises would continue to be permitted to use hedge accounting.
12 October 2001: IASB begins six days of meetings on Monday
The schedule for the Washington meetings:
- Monday 15 October 2001: Trustees meeting
- Tuesday and Wednesday 16-17 October 2001: IASB meets with Advisory Council
- Thursday-Saturday 18-20 October 2001: IASB Board meeting
Click for Agenda Information.
11 October 2001: IAS In Your Pocket guide is updated
We have updated the PDF file of our IAS In Your Pocket guide to reflect IASB's initial technical agenda and partnership projects. The 64-page guide has summaries of the IASs and SICs as well as background information about IASB. You can download a copy from This Page.
10 October 2001: Updated model financial statements, disclosure checklist
We have posted updated versions of Deloitte Touche Tohmatsu's Model IAS Financial Statements and Presentation/Disclosure Checklist reflecting Standards and Interpretations that are in effect for financial reporting in 2001. Click:
9 October 2001: Deloitte Touche Tohmatsu comments on extractive industries
We have posted the DTT Response to the Extractive Industries Issues Paper (PDF 136k). Click here for Project Information. Our basic position:
- We strongly support the development of an international accounting standard for mining and oil and gas companies.
- At the current time, an historical cost concept is more appropriate for accounting for the extractive industries than a model of accounting based on an estimate of the fair values of mineral properties and reserves.
- Within the context of an historical cost model, there is an urgent need to achieve consistency in recognition, measurement, and subsequent depreciation of extractive industry related assets, particularly pre-production expenditure. We favour the following treatment of pre-production costs:
- Preacquisition prospecting and exploration: Charge to expense
- Property acquisition (direct and incidental): Capitalise
- Post-acquisition exploration: Capitalise
- Evaluation or appraisal costs: Capitalise
- Development cost: Capitalise
- Construction cost: Capitalise
- All capitalised costs are subject to depreciation and an impairment test based on disposal value of the acquired rights
8 October 2001: October 2001 IASPlus newsletter is published
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The October 2001 edition of our IASPlus newsletter has 32 pages of news about IASB and International Accounting Standards, including country developments in Asia-Pacific. Europe-Africa and Americas October editions will be out shortly. Click:
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8 October 2001: Eleven Asia-Pacific country updates posted
We have updated the country information pages for
- Australia,
- China,
- Hong Kong,
- India,
- Indonesia,
- Malaysia,
- Philippines,
- Pakistan,
- Singapore,
- Taiwan, and
- Thailand.
7 October 2001: EU to consider requiring International Standards on Auditing
The Committee on Auditing of the European Commission will meet in November to consider a proposal to require that audits of listed companies comply with International Standards on Auditing (IASs). ISAs are developed by the International Auditing Practices Committee of the International Federation of Accountants.
4 October 2001: Philippe Richard is the new IOSCO Secretary General
IOSCO has named Philippe Richard as its new Secretary General for a three-year term starting tomorrow. He replaces Peter B. Clark. Mr. Richard was until recently Deputy Director at the Secretariat of the French Credit Institutions and Investment Firms Committee. Prior to that, he has worked for the European Bank for Reconstruction and Development and the French Banking Commission. Click for:
4 October 2001: Implementation of a 'management approach' to segment definition
Both IAS 14 and FASB 131 take a 'management approach' to defining business and geographical segments, and the segment definitions in both standards are quite similar. For that reason, the following comments in a recent speech by Robert Bayless, Chief Accountant of the US SEC Division of Corporation Finance, are of interest:
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The staff also has focused on the Statement 131 disclosures because, frankly, we are concerned that too many companies have not responded adequately to Statement 131's mandate to present separately financial information for those business components that are regularly reviewed by the chief operating decision maker. It's difficult to believe that chief operating decision makers review as little disaggregated information as some companies' segment disclosure would have us believe.
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Click for Mr. Bayless's Speech (PDF 71k).
3 October 2001: Agenda is set for IASB's October meeting
IASB will meet in Washington 16-17 October with its Advisory Council. On 18-20 October, IASB will hold its own meeting at which the agenda will include:
Click for Detailed Agenda.
3 October 2001: No extraordinary item treatment for terrorist attack costs
Reversing an earlier decision, FASB's EITF concluded that losses relating to the 11 September terrorist attack in the USA should not be reported as extraordinary items.
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