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 | 31 December 2002: Thank you for visiting  during 2002
Our goal is to be the most comprehensive source of news about International Accounting Standards on the Internet. Over 250,000 people visited us in 2002. The comparable number for 2001 was 90,000. Please continue to join us in 2003. |
29 December 2002: EU ambassador urges global accounting standards
In a Speech (PDF 28k) at the European Institute in Washington, Guenter Burghardt, European Union Ambassador to the United States, spoke about Creating a Transatlantic Securities Market: EU/US Regulatory Convergence. He supported a market in which investors on both sides of the Atlantic have access to adequate and timely information based on one set of principles-based global accounting rules. "The EU will adopt International Accounting Standards from 2005, greatly reducing the burdens and costs on companies looking to do business cross-border on the basis of accounts prepared in accordance with high quality international standards. However, those looking to do business in the US will still be faced with the costs of reconciling those accounts to US GAAP standards."
24 December 2002: Views from the SEC on convergence
In a presentation titled International Developments: Convergence and You at the annual AICPA SEC conference, Jackson M. Day, Acting Chief Accountant of the US Securities and Exchange Commission, said: [Full Text (PDF 52k)]
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Convergence of accounting standards is the centerpiece of the efforts to build a global financial reporting infrastructure. And, the desire for convergence of accounting standards is greater than ever. Achieving this would greatly aid cross-border investing and decision-making....
IAS will soon be applied in at least fifteen different countries in Europe and in other regions of the world. We recognize that achieving the right balance of sufficiently detailed principles and base implementation guidance is extremely important. Appropriate use of national and international interpretive bodies, such as the Emerging Issues Task Force in the U.S. and the International Financial Reporting Interpretations Committee, or IFRIC, is a critical element to the success of this effort. While not every question can be answered, there cannot be fifteen answers to a pervasive question as well. That would undermine the credibility of the system.
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24 December 2002: Notes from the first day of the December IASB meeting
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We have combined all of our notes from the 18-20 December 2002 IASB meeting into a Single Page. |
24 December 2002: Comment letters on IAS 32-39 amendments can be downloaded
The IASB has posted on its website 142 comment letters it has received on its proposed amendments to IAS 32 and IAS 39, plus another 24 letters that were sent to the UK Accounting Standards Board.
23 December 2002: New Publication: Quality of Financial Position
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We have published Quality of Financial Position: The Balance Sheet and Beyond, the third in our series of booklets on Integrity and Quality intended to help members of management, audit committees, boards of directors, and others better understand and assess key accounting, business, and other issues that companies currently face. This booklet reviews many of the qualitative and quantitative factors that influence a company's financial position, including factors that may not necessarily be evident from the financial statements themselves. Click to Download, PDF 104k. You can download the others in this series and other DTT Publications here. |
22 December 2002: Two IASC Foundation trustees appointed
Max Kley, Deputy Chairman, BASF AG, and Dennis Weatherstone, former Chairman, J.P. Morgan & Co., have been appointed to the Board of Trustees of the IASC Foundation effective 1 January 2003. They fill the vacancies left by the departures of Hilmar Kopper and William Steere, respectively. Press Release (PDF 26k).
22 December 2002: New Deloitte & Touche (US) Accounting Roundup
We have posted the 23 December 2002 edition of Accounting Roundup, a newsletter published by Deloitte & Touche (US). This issue covers SPEs, investment companies, recent AcSEC activity, IASB's ED on business combinations, and the second meeting of the new US Public Company Accounting Oversight Board.
21 December 2002: Notes from the third day of the December IASB meeting
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We have combined all of our notes from the 18-20 December 2002 IASB meeting into a Single Page. |
20 December 2002: Notes from the second day of the December IASB meeting
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We have combined all of our notes from the 18-20 December 2002 IASB meeting into a Single Page. |
19 December 2002: The Year 2002 in Review – by Deloitte & Touche (US)
The articles included in Accounting Roundup: The Year 2002 in Review were drawn from issues of Accounting Roundup dated 11 January through 9 December 2002, and have been updated where appropriate. These articles also provide links to locations where additional information can be found on each topic. You can download this and earlier editions of Accounting Roundup here.
19 December 2002: IASB will hold public forums on changes to IAS 32 and 39
The IASB has announced that the comments received on its Proposed Amendments to IAS 32 and IAS 39 (Financial Instruments) "have represented a wide range of opinion and raised numerous questions". Consequently, the IASB will hold a series of public roundtable forums to discuss the proposed amendments with those who provided comments on the proposals. The forums will begin with the IASB's Standards Advisory Council on 24-25 February 2003 and continue, during the week of 10 March 2003, with other respondents. The IASB decided to host roundtable discussions following their review of more than 150 comment letters regarding the proposals. Click for IASB Press Release (PDF 17k).
18 December 2002: New Journal of International Accounting Research
The International Section of the American Accounting Association has published the inaugural edition of its new annual journal, The Journal of International Accounting Research. The journal aims to publish articles that increase understanding of the development and use of international accounting and reporting practices or attempt to improve extant practices. International accounting is broadly interpreted to include the reporting of international economic transactions; the study of differences among practices across countries; the study of interesting institutional and cultural factors that shape practices in a single country but have international implications; and the effect of international accounting practices on users. Click for More Information (PDF 19k). Click here to go to American Accounting Association Website.
18 December 2002: Proposal to require IFRS for listed companies in New Zealand
New Zealand's Accounting Standards Review Board (ASRB) – the government appointed body that approves accounting standards – has announced that it is recommending to government that listed issuers be required to comply with International Financial Reporting Standards by 2007. They would have the option to adopt IFRS earlier, say by 2005. The ASRB also reaffirmed its policy of aiming for a single set of standards to apply to both the private and public sectors. The ASRB is currently consulting with government, the stock exchange, the Securities Commission, the Office of the Auditor General, and others on their decision. Australia has also announced a plan to move to IFRS (by 2005), and ASRB is working with Australia regarding the transitional issues. Click for ICANZ Press Release (PDF 49k).
18 December 2002: Impact of IASB's business combinations proposals in Australia
The Australian Accounting Standards Board has published exposure drafts on business combinations identical to those issued by the IASB earlier this month. We have posted a new Australian Accounting Alert, developed by Deloitte & Touche (Australia), which examines the major Australian impacts resulting from the proposals. You can find Earlier Alerts here.
17 December 2002: New Singapore GAAP update booklet is published
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Deloitte & Touche (Singapore) has published the 2002 edition of Changes to Singapore Accounting Standards (SAS). This 40-page booklet includes:
- Summaries of the new accounting standards issued in Singapore during 2002.
- Summaries of the new exposure drafts.
- Summaries of current IASB projects (expected to become new SAS).
- List of differences between Singapore Accounting Standards and IAS.
- Lists of all SAS and Interpretations.
You are welcome to Download the booklet without charge (PDF 270k).
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17 December 2002: SEC staff presentations at AICPA annual SEC conference
Among the presentations by senior SEC staff people at the AICPA's annual Current SEC Issues conference that are relevant to the international accounting community are these:
- Remarks of Stephen M. Cutler (PDF 90k), Director of the SEC Division of Enforcement. Mr. Cutler noted that the SEC has the authority to bring enforcement actions, both in federal court and administratively, against accounting firms based on the conduct of individual partners, on matters other than independence violations. He suggested that while the Commission has been reluctant to do so in the past, it is likely to be more aggressive in this area in the future.
- Remarks of Jackson M. Day (PDF 82k), Acting Chief Accountant. Mr. Day addressed the Sarbanes-Oxley Act; the new Public Company Accounting Oversight Board; standard setting; the SEC's willingness and interest in working with registrants to resolve issues on a timely basis; and what accountants can do to change the future and better serve the interests of investors. On the subject of standard-setting, Mr. Day said: "While I am on the issue of international accounting, I am going to say just one thing: If you are a single product domestic manufacturer whose customers only reside in the U.S. - and you do not believe that international accounting matters to you - you should come to the session tomorrow on international accounting." The conference to which he refers is the SEC Roundtable mentioned in our news story of 7 December below (click for SEC Press Release).
17 December 2002: Euronext requires disclosure of effect of IFRS by mid-2004
Euronext (the pan-Europe stock exchange combining the exchanges in Amsterdam, Brussels, Lisbon, and Paris) has published rules for transition to IFRS/IAS by its Next Prime and Next Economy listed companies. No financial information that complies with IFRS will be required for 2003. However, a company that has not yet adopted IFRS as of the start of 2004 or earlier will be required to disclose, in its second quarter financial statements for 2004 at the latest, information on the effects of applying IFRS on its opening balance sheet of the year 2004 and on its performance. The requirement to publish quarterly reports starting in 2004 is maintained. Click for Euronext Press Release (PDF 28k).
16 December 2002: Business combinations ED files are available for downloading
The PDF files for the IASB's Business Combinations Exposure Drafts can now be Downloaded from IASB's website without charge. The are four documents in all: an ED of a new IFRS that would replace IAS 22; the basis for conclusions; implementation guidance; and a separate ED proposing amendments to IAS 36 and IAS 38. Comments are due by 4 April 2003. Click for our Project Information and Summary of the ED.
13 December 2002: Special IASPlus newsletter on business combinations
We have posted a special edition of our newsletter summarising the IASB's recent Exposure draft ED 3, Business Combinations, and related ED proposing significant amendments to IAS 36 and IAS 38. You can Download (PDF 63k) the newsletter without charge.
Key proposals in the EDs:
- Method of accounting for business combinations. All business combinations covered by the revised standard must use the purchase method. Uniting (pooling) of interests would no longer be permitted. Therefore, an acquirer must be identified for every business combination within the scope of ED 3. The acquirer is the entity that obtains control of the other combining entities or operations.
- Indefinite-lived intangible assets. Goodwill and other intangible assets with indefinite useful lives would not be amortised, but tested for impairment annually (or more frequently if there is an indication of impairment). Reversals of impairment losses with respect to goodwill are prohibited.
- Finite-lived intangible assets. Amortisation continues, plus an impairment test. However, IAS 38's rebuttable presumption of a maximum 20-year life is dropped.
- Negative goodwill. Any negative goodwill remaining after a reassessment of the identification and measurement of the identifiable net assets acquired should be recognised immediately in the income statement as a gain. This includes negative goodwill implicit in the carrying amount of an equity method investment.
- Liabilities for terminating or reducing the activities of an acquiree. Costs expected to be incurred as a result of a business combination to restructure the acquired entity's (or acquirer's) activities would be treated as post-combination expenses, unless at the acquisition date, the acquired entity has an existing liability in accordance with IAS 37.
- Date for measuring the cost of the acquisition. The consideration paid for an entity is measured at the date control passes to the acquirer (or, if control is acquired in stages, at the various earlier dates of exchange).
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12 December 2002: IASB will meet in London next week
The IASB will meet at its offices in London on 18-20 December 2002.
On its agenda are the following:
- Amendments to IAS 32 and IAS 39 - analysis of comments received on the exposure draft
- Financial Activities
- Reporting Performance
- Business Combinations - Phase II
- IFRIC's proposed amendments to SIC 12, Consolidation of SPEs, and other matters arising from the November 2002 IFRIC meeting
- Convergence - pension issues
- First-Time Application of IFRSs - analysis of comments received on the exposure draft
- Convergence - other issues
- Concepts: Revenue Recognition
- Improvements Project - continued discussion of comments received on the ED, particularly with respect to:
– IAS 1 Presentation of Financial Statements
– IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
– IAS 27 Consolidates and Separate Financial Statements
– IAS 28 Accounting for Investments in Associates
11 December 2002: William Donaldson will head the US SEC
William Donaldson has been nominated to be the new chairman of the US Securities and Exchange Commission, replacing Harvey Pitt, who resigned amid questions relating to the SEC's effort to select candidates for the five-member Public Company Accounting Oversight Board. Mr. Donaldson co-founded the investment banking firm Donaldson Lufkin & Jenrette. He was also chairman and CEO of the New York Stock Exchange and of Aetna Inc.
10 December 2002: New edition of Accounting Roundup is available
We have posted the 9 December 2002 edition of the Accounting Roundup newsletter published by Deloitte & Touche (US). Topics covered include disclosure of guarantees, current EITF projects, the SEC's auditor independence and workpaper retention proposals, guidance on combating fraud, the World Congress of Accountants, and IASB's meeting with national standard setters.
9 December 2002: New Practical Guide to IFRS is published
Deloitte Touche Tohmatsu has published the third edition of International Financial Reporting Standards: A Practical Guide. This 236-page book provides practical guidance for applying IFRS in preparing financial statements. It enables readers to see at a glance what their financial statements would look like, provides a quick summary of the standards and interpretations, and details the numerous disclosure requirements in an easy-to-check tabular format. Click to Download (PDF 2,586k). The guide is also available in an abbreviated version without the summaries of standards and interpretations (just model statements and checklist). Click to download the Abbreviated Version (PDF 2,155k, 160 pages). You can find other DTT publications on our Publications Page.
9 December 2002: Updated model financial statements and disclosure checklist
We have posted updated versions of our Model Financial Statements and Presentation and Disclosure Checklist reflecting International Financial Reporting Standards and Interpretations effective for 2002.
9 December 2002: Update on accounting standards in Turkey
We have added a new page for Turkey with an update on the development of accounting standards by the Banking Regulation and Supervision Agency for banks and by the Capital Market Board for publicly traded companies.
7 December 2002: SEC roundtable on international impact of independence rules
The US Securities and Exchange Commission will hold two interactive roundtable meetings on Tuesday, 17 December 2002, to discuss the international impact of its proposed rules on auditor independence and attorney conduct to be promulgated under the Sarbanes-Oxley Act of 2002. The roundtable on auditor independence rules will begin at 9:00 a.m. and the discussion of attorney conduct rules will start at 2:00 p.m. Both meetings will be open to the public and will be webcast. Real time and archived audio webcasts of the roundtables will be accessible at The SEC Website. Click for SEC Press Release.
5 December 2002: IASB proposes to stop pooling and goodwill amortisation
The International Accounting Standards Board has proposed major revisions to its standards on accounting for business combinations and intangible assets. The proposals are set out in exposure draft ED 3, Business Combinations, and an Exposure Draft of Proposed Amendments to IAS 36, Impairment of Assets, and IAS 38, Intangible Assets. The IASB invites comments on the Exposure Drafts by 4 April 2003. The most significant proposals are to prohibit the use of the pooling (uniting) of interests method of accounting for business combinations and to require that goodwill and other intangible assets with indefinite lives be tested for impairment but not amortised. Pooling has already been banned in Australia, Canada, Hong Kong, New Zealand, and the United States. Click for IASB Press Release (PDF 42k). ED 3 will be available for download from IASB's website starting 16 December.
4 December 2002: Ken Wild of Deloitte & Touche appointed to IFRIC
Ken Wild, Global IAS Leader for Deloitte Touche Tohmatsu and a partner in Deloitte & Touche (United Kingdom), has been appointed to the International Financial Reporting Interpretations Committee (IFRIC). Ken joined Deloitte & Touche in 1980 and was made a Partner in 1984. He is a member of the UK Accounting Standards Board and a member of its Public Sector and Not-for-Profit Committees. He is also a member of the Financial Reporting Advisory Board to the UK Treasury. On IFRIC, Ken replaces John Smith of Deloitte & Touche (USA), who recently became a member of the International Accounting Standards Board. Click for IASB Press Release (PDF 26k).
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