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30 November 2002: IFAC honours Sir Bryan Carsberg, former IASC Secretary-General
 The International Federation of Accountants has presented its prestigious Sempier Award to Sir Bryan Carsberg, former Secretary-General of the IASC. The award recognises an outstanding leader who has made significant contributions to the development of the international accountancy profession over a period of years. As Secretary-General of the IASC from 1995 to 2001, Sir Bryan led the completion of a core body of Standards that has subsequently been endorsed by IOSCO and adopted by the European Union. He is widely recognised for his commitment to promoting worldwide convergence of those standards. Click for IFAC Announcement (PDF 79k).
30 November 2002: XBRL page updated
We have updated our IAS-XBRL Page to reflect the recent release, by the XBRL International Steering Committee, of the IAS Primary Financial Statements Taxonomy as an approved XBRL Recommendation. The Committee has also released, as a Public Working Draft, the IAS Explanatory Disclosures and Accounting Policies Taxonomy. Both taxonomies are available on the Internet from the XBRL Organisation Website.
29 November 2002: More on Australia moving to IAS in 2005
We have posted a new Australia Accounting Alert (PDF 154k) that explains the planned adoption of International Accounting Standards as Australian GAAP for reporting periods beginning on or after 1 January 2005. Because
of the need to present prior period comparatives, the transitional calculations will commence for reporting periods beginning on or after 1 January 2004. A few Australian accounting standards do not have an international counterpart, including concise financial reports, general and life insurance, and extractive industries. Those are expected to be retained until IASB standards are developed.
29 November 2002: IFRIC agenda information on IASPlus is reorganised
We have reorganised the information on IASPlus about IFRIC's agenda issues: Chronological List and Listing by Issue
28 November 2002: Notes from the IFRIC meeting 25-26 November 2002
We have moved our observer's unofficial notes of the discussions at the meeting of the International Financial Reporting Interpretations Committee of 25-26 November 2002 to our IFRIC Page.
27 November 2002: Australia and New Zealand Accounting Alerts posted
We have posted some new Australia and New Zealand Accounting Alerts.
27 November 2002: New edition of Accounting Roundup is available
We have posted the 25 November 2002 edition of the Accounting Roundup newsletter published by Deloitte & Touche (US). Topics covered include FASB's and IASB's exposure drafts on stock-based/share-based compensation, SPEs, SOP on accounting for financial instruments by non-profit health-care institutions, IASB's November meeting, and news about the new US Public Company Accounting Oversight Board.
26 November 2002: IAASB proposes new preface and restructuring of standards
The International Auditing and Assurance Standards Board has issued an Exposure Draft (PDF 237k) inviting comment on IAASB's Proposed Terms of Reference; the Preface to the International Standards on Quality Control, Auditing, Assurance, and Related Services; and Operations Policy No 1–Bold Type Lettering. Comments are due 28 February 2003. The IAASB is proposing to restructure the Auditing and Assurance Handbook to include four separate sections covering:
- Quality control. The documents in this section would be called International Standards
on Quality Control (ISQCs). This section would address firm-wide quality control
issues while ISAs and ISAEs will address engagement specific quality control matters.
- Audits and reviews of historic financial information. The documents in this section
would continue to be called International Standards on Auditing (ISAs) and
International Auditing Practice Statements (IAPSs).
- Assurance engagements on other subject matters. The documents in this section would
be called International Standards on Assurance Engagements (ISAEs), and in time, if
needed, International Assurance Engagement Practice Statements (IAEPSs) could be
added.
- Related services. The documents in this section would be called International Standards
on Related Services (ISRSs), and over time, if needed, International Related Services
Practice Statements (IRSPSs) could be added.
25 November 2002: EFRAG seeks comments on share-based payments
The European Financial Reporting Advisory Group is seeking comments (due by 7 February 2003) on its Draft Letter of Comment on IASB Exposure Draft 2, Share-Based Payment.
24 November 2002: SEC answers 'Frequently Asked Questions' on Sarbanes-Oxley
The SEC's Division of Corporation Finance issued 28 Q&As that address issues relating to implementing the Public Company Accounting Reform and Investor Protection Act of 2002 (the Sarbanes-Oxley Act).
23 November 2002: Broad intention to comply with Sarbanes-Oxley in Europe
A Citigate Financial Intelligence Survey (PDF 163k) of 50 of the 297 European companies listed in United States markets shows a broad intention to comply with the Sarbanes-Oxley Act. Based on the survey, threats of non-compliance across Europe appear to have been substantially overstated.
23 November 2002: Hong Kong and South Africa seek comments on ED 2
Accounting standard setting bodies in Hong Kong and South Africa (ED 160) have requested comments on adoption of IASB ED 2, Share-Based Payment. In Canada the AcSB expects to issue ED 2 for comment by 31 December 2002. Canadian standards currently require disclosure of the fair value of options granted, though the calculation differs from that proposed in ED 2.
22 November 2002: Australia, New Zealand, UK invite comments on ED 2
The accounting standard setters in Australia, New Zealand, and the United Kingdom have all issued exposure drafts inviting comments on whether adoption of IASB ED 2, Share-Based Payment, is appropriate in their respective countries: Australia ED 108, New Zealand ED 93, and United Kingdom FRED 31. Our news story of 19 November reported similar action by the FASB in the United States.
22 November 2002: IFRIC will meet in London 25-26 November
The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on 25 and 26 November 2002 to discuss the following issues:
- Decommissioning and rehabilitation funds: accounting by the contributor.
- Emission rights: does an emission rights scheme give rise to a net asset or liability or a separate asset and liability; if a separate asset and liability are recognised, what are their natures.
- Hyperinflation: IFRIC will discuss conceptual and practical issues in relation to IAS 29, Financial Reporting in Hyperinflationary Economies. IFRIC intends to submit its views to the Board for it to consider in the Improvements and Convergence Projects.
- IAS 19–money purchase plan with guaranteed minimum: application of IAS 19 to plans that would be defined contribution plans but for the existence of a minimum return guarantee.
- IAS 19–multi-employer plan exemption: possible guidance on when the exemptions in IAS 19 from defined benefit accounting for multi-employer plans are available.
- IAS 37–changes in decommissioning charges: should the effect of changes in the discount rate and estimated cash flows be capitalised or recognised in profit or loss.
- Possible amendment to SIC 12, Consolidation–Special Purpose Entities: to clarify the meaning of a "majority" of benefits and risks in SIC 12.10(c) and (d).
- Rights of use: whether to account for such contracts as leases.
21 November 2002: FASB identifies short-term convergence issues
The FASB has decided to include the following issues within the scope of FASB's Short-term International Convergence Project:
- Classification of liabilities on refinancing
- Classification of liabilities due on demand due to violation of debt covenant
- Asset exchanges – recognition of gain/loss on exchanges of similar productive assets and intangibles
- Voluntary change in accounting policies
- Financial instruments – implications of IASB amendments to IAS 32 and 39
- Discontinued operations – differences in definition and timing of remeasurement
- Accounting for costs associated with exit or disposal activities
- Inventories – idle capacity and spoilage
- Distinction between changes in accounting policies and changes in accounting estimates
- Income taxes – differences in application of the temporary difference approach to accounting for income taxes
- Financial reporting in hyperinflationary economies
- Joint ventures – differences in definition and use of proportionate consolidation
- Interim financial reporting – discrete period vs. integral approach.
- Research and development – capitalisation of development costs to be capitalized under certain circumstances.
21 November 2002: Ukraine will require IFRS in 2003 for all companies
All companies in Ukraine will be required to prepare their financial statements using International Financial Reporting Standards starting in 2003. At present, only banks in Ukraine are required to follow IFRS. Click for Analysis of National Use of IFRS.
20 November 2002: SEC proposes auditor independence rules
The US Securities and Exchange Commission has proposed Rules pursuant to the Sarbanes-Oxley Act that would:
- Require auditors to retain specific types of records.
- Require certain disclosures and reports by auditors and set conditions under which auditing firms would not be considered independent for purposes of performing audits of public company financial statements. Among other things, the proposed rules cover prohibited services, partner rotation, approval of non-audit services by the audit committee, auditor communications with audit committees, and public disclosure of audit and non-audit fees and services.
20 November 2002: Tanzania will require IFRS in 2004 for listed companies
All listed companies and non-listed international companies in Tanzania will be required to prepare their financial statements using International Financial Reporting Standards starting in 2004. Other companies will continue to use Tanzanian GAAP, which is generally modelled along IFRS lines. Click for Analysis of National Use of IFRS.
19 November 2002: FASB seeks comments on IASB ED 2 on share-based payment
The US Financial Accounting Standards Board has issued an Invitation to Comment seeking constituents' views on accounting for the fair value of employee stock options. The FASB document explains the similarities of and differences between the IASB's recently issued exposure draft on Share-Based Payment and the accounting for stock-based compensation under FASB Statement 123. FASB's Invitation to Comment is available on FASB's Website. The comment period ends on 1 February 2003. Click for FASB's News Release (PDF 13k).
18 November 2002: ED 2 on share-based payment can now be downloaded
As of today, ED 2 on Share-Based Payment may be downloaded without charge from the IASB's website. There are three separate documents. Comments are due 7 March 2003. Click for Project Information.
18 November 2002: Chinese version of comparison of IFRS and PRC GAAP
 We have published the Chinese translation of GAAP Differences in your Pocket: IAS and GAAP in the People's Republic of China. This booklet identifies and explains over 100 differences between International Financial Reporting Standards and Chinese GAAP. It also includes a comprehensive foreword that reviews the development of financial reporting standards in China. Click to Download the Chinese Version (PDF 683k). You can download the English version on our Publications Page. You will also find, on that page, our comparison of IFRS and United States GAAP. We are pleased to grant permission to accounting educators and students to make copies of those publications for educational use.
18 November 2002: Agenda project pages updated
We have updated our agenda project pages to reflect the IASB's discussion of the following topics at its November 2002 meeting:
17 November 2002: David Tweedie, Paul Volcker to address World Congress
IASB Chairman Sir David Tweedie and IASC Foundation Chairman Paul A. Volcker will address the first plenary session of the 16th World Congress of Accountants on Tuesday morning, 19 November, in Hong Kong. Click for information about the World Congress.
17 November 2002: Europe pages reorganised
Due to the growing amount of information about the adoption of IFRS in Europe and related matters, we have reorganised our Europe Pages.
17 November 2002: Progress toward a single prospectus in Europe
The Council of Finance Ministers from the 15 European member states has approved a Directive that would create a single prospectus to be used throughout Europe. Click for Details.
16 November 2002: Five country updates posted
We have posted updates about accounting standards activity in the following countries:
France, Germany, Sweden, South Africa, and United Kingdom.
15 November 2002: IASB to meet with Standards Advisory Council
The following topics are on the agenda for the meeting of the IASB with its Standards Advisory Council today and tomorrow in Hong Kong:
- Convergence
- Improvements Project
- Insurance
- Regulatory developments in EU
- Reporting performance
- Revenue recognition and liabilities
- Share-based payment
- Reports on the Board's research agenda and other project developments
More information about the Standards Advisory Council.
15 November 2002: The SEC's changing approach to enforcement
While he did not address International Accounting Standards directly, SEC Enforcement Division Director Stephen M. Cutler's recent Remarks at the University of Michigan Law School address (among other things) accounting fraud, transformation of the accounting profession, and regulatory responses. An excerpt:
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Perhaps also inhibiting the Commission's effectiveness at deterring financial fraud, particularly by gatekeepers, is its historical reluctance to sue accounting firms and attorneys. Through the exercise of its prosecutorial discretion, the Commission generally has reserved suing both groups for only the most egregious cases. In the case of accounting firms, the rationale generally has been that it is unreasonable to expect a firm to control the actions of thousands of employees conducting audits nationwide. Instead, in the typical case involving wrongdoing by a single accountant, the Commission has pursued only the individual. This practice stands in contrast to the Commission's approach to similar fact patterns at regulated entities, like broker-dealers. For instance, when the Commission charges an individual broker for a securities violation, it is not uncommon to also charge the firm with which the broker is associated. This reluctance to charge accounting firms, as well as attorneys, may have had the unintended consequence of holding both groups to a lower standard rather than to the high standard their special roles demand....
Today, of course, it's a whole new ballgame.
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15 November 2002: Report on European company law is published
The European Commission's High-Level Group of Company Law Experts has published its final report on A Modern Regulatory Framework for Company Law in Europe. The report covers the issues considered by the group under the second part of its mandate, including such corporate governance issues as the role of non-executive and supervisory directors; management remuneration; responsibility of management for financial statements; and auditing practices. The Commission is considering the presentation of an action plan for company law in early 2003. Click to Download the Report (PDF 458k). Among the recommendations:
- "The costs of all share incentive schemes should be properly reflected in the annual accounts, and this accounting principle should be recognised in a European framework rule."
- "The responsibility for supervision of the audit of the company's financial statements should lie with a committee of non-executive or supervisory directors who are at least in the majority independent."
- "The Commission should review the Seventh Company Law Directive's provisions in the light of the need for better financial disclosure, and consider whether improvements can be made consistent with International Accounting Standards."
14 November 2002: Notes from the third day of the November IASB meeting
We have combined the notes taken by Deloitte observers at the IASB's meeting on 12-14 November 2002 in Hong Kong onto a Single Page.
13 November 2002: Notes from the second day of the November IASB meeting
We have combined the notes taken by Deloitte observers at the IASB's meeting on 12-14 November 2002 in Hong Kong onto a Single Page.
13 November 2002: PCAOB Chairman resigns; acting SEC Chief Accountant named
William H. Webster has resigned as chairman of the US Public Company Accounting Oversight Board (PCAOB). The PCAOB was created by accounting reform legislation enacted in the United States in July to oversee the audits of public companies. Also, Jackson M. Day has been named Acting Chief Accountant of the SEC, replacing Robert K. Herdman, who had resigned last week. The resignations of Mr. Webster and Mr. Herdman, and that of SEC Chairman Harvey H. Pitt, relate to questions about the SEC's process for selecting members of the new five-member PCAOB.
13 November 2002: Accounting Roundup newsletter is available
We have posted the 11 November 2002 edition of Accounting Roundup published by Deloitte & Touche (US). Topics covered include SPEs, recent EITF and SEC activity, implementation of the Sarbanes-Oxley Act, a new audit standard on fraud, and convergence of IFRS and US GAAP.
13 November 2002: Europe-Africa edition of IASPlus newsletter is posted
We have posted the October 2002 Europe-Africa Edition of our quarterly newsletter IAS Plus. The Americas and Asia-Pacific Editions are also available at this link.
13 November 2002: IAASB ED on reporting on compliance with IFRS
International Auditing and Assurance Standards Board (IAASB) has proposed new guidance designed to clarify when financial statements are in full compliance with International Financial Reporting Standards (IFRSs). The exposure draft of International Auditing Practice Statement (IAPS), Reporting on Compliance with International Financial Reporting Standards, makes clear that when an entity references compliance with IFRSs, auditors should issue an audit report with an unqualified opinion only if the entity complies fully with all applicable IFRSs. Click to download:
12 November 2002: Notes from the first day of the November IASB meeting
We have combined the notes taken by Deloitte observers at the IASB's meeting on 12-14 November 2002 in Hong Kong onto a Single Page.
11 November 2002: SEC Chief Accountant resigns
SEC Chief Accountant Robert Herdman has announced that he will step down immediately. His resignation comes less than a week after that of SEC Chairman Harvey H. Pitt (see news story 5 November 2002). Mr. Herdman said he resigned "in light of recent events" – alluding to questions relating to the SEC's effort to select candidates for the five-member Public Company Accounting Oversight Board.
11 November 2002: SEC proposes rules of conduct for attorneys
The US SEC has proposed new rules to implement Sarbanes-Oxley Act provisions concerning standards of professional conduct for attorneys who appear or practice before the Commission on behalf of an SEC registrant. The rules would apply to both in-house and outside counsel, including attorneys licensed, or otherwise qualified to practice, in foreign jurisdictions who appear and practice before the Commission. Click for SEC News Release.
11 November 2002: Agendas announced for IASB, SAC meetings
The IASB will meet in Hong Kong on 12-14 November. The Board's agenda includes Insurance, the Improvements Project (results of exposure), Business Combinations (Phase II), Revenue, Debt/Equity, and Convergence – IAS 19 Employee Benefits. We will post brief summaries of each day's discussions. On 15-16 November, the Board will meet with the Standards Advisory Council. On the agenda are Convergence, Reporting Performance, Share-Based Payment (update on North American developments), Revenue and Liabilities, the Board's Research Agenda, Insurance, Regulatory Developments in the European Union, the Improvements Project (update), and Other Project Developments. Agenda Details.
11 November 2002: Wide-ranging policy address by FASB chairman
In a major policy address at the Annual Current Financial Reporting Issues Conference of Financial Executives International, FASB Chairman Robert H. Herz addressed many aspects of convergence of US GAAP and IFRS and the implications of a principles-based approach to setting accounting standards in the United States. He also outlined the FASB's current examination of whether modifications in the current structure of US accounting standard setting – including the roles, composition, and processes of the EITF and AcSEC – would improve the overall quality and effectiveness of U.S. accounting standard setting. Click for:
10 November 2002: Americas edition of IASPlus newsletter is posted
We have posted the October 2002 Edition of our quarterly newsletter  .
7 November 2002: ED 2 Share-based Payment
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The IASB has today published for comment ED 2, Share-Based Payment, a draft international standard. The exposure draft addresses how entities should account for share-based payment transactions, including grants of share options to employees. The proposals reflect the following principles:
- When goods or other services are received in exchange for a share-based payment, an expense should be recognised.
- Recognition of the expense should be over the period in which the services involved are rendered or as the goods involved are received.
- Measurement of the expense should be made by reference to fair value.
Comments on the proposals are requested by 7 March 2003. If a standard is issued by the end of 2003, it is expected to be effective for periods beginning on or after 1 January 2004. The UK Accounting Standards Board has simultaneously published the exposure draft as FRED 31, Share-Based Payment. The FASB is also expected to publish the exposure draft, together with a summary of the key differences with current US accounting standards, and an invitation to comment. The electronic version of ED 2 will be posted on the IASB's Website on 18 November (subscribers may download it now). Please note that ED 2 is published in three separate PDF documents: Requirements, Basis for Conclusions, and Implementation Guidance. Click for:
- Background Information on the project (including a summary of the main proposals).
- IASB Press Release (PDF 33k).
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5 November 2002: SEC Chairman Harvey Pitt resigns
Harvey Pitt announced his resignation as Chairman of the US Securities and Exchange Commission. An interim successor has not been selected. Mr. Pitt indicated in his letter that he would leave "as soon as I can help your staff ensure a smooth transaction of leadership".
4 November 2002: IASB meeting dates for 2003 are announced
The IASB will meet monthly, except August, in 2003. The Board will meet in April and again in September with the chairs of its partner national standard setters. The Standards Advisory Council will meet in February, June, and November:
- 20-24 January 2003, London
- 19-25 February 2003 (24-25 February: Meeting with the Standards Advisory Council), London
- 19-21 March 2003, London
- 24 April-2 May 2003 (24-25 April: Meeting with National Chairs), London
- 21-23 May 2003, London
- 16-20 June 2003 (19-20 June: Meeting with the Standards Advisory Council), Rome, Italy
- 23-25 July 2003, London
- 17-23 September (22-23 September: Meeting with National Chairs), London
- 22-24 October 2003, Toronto
- 17-21 November 2003 (20-21 November: Meeting with the Standards Advisory Council), London
- 17-19 December 2003, London
4 November 2002: IFRIC meeting dates for 2003
IFRIC has announced its meeting schedule for 2003, all in London:
- 4-5 February 2003
- 1-2 April 2003
- 1-2 July 2003
- 30-31 July 2003
- 30 September-1 October 2003
- 2-3 December 2003
2 November 2002: EFRAG comment letter on first-time application
We have posted the Comment Letter (PDF 24k) of EFRAG on IASB Exposure Draft 1. Click Here for our EFRAG page.
1 November 2002: SEC proposes rules to implement Sarbanes-Oxley Act
The US SEC has proposed rules to implement the Sarbanes-Oxley accounting reform legislation adopted in late July. Two financial reporting issues covered by the proposed rules are:
- Disclosure of non-GAAP financial information (including "pro forma" information) and
- MD&A disclosure about off-balance sheet arrangements, contractual obligations, and contingent liabilities and commitments,
Click for the SEC News Release (PDF 63k).
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