Require that EFRAG analyse the economic, legal, and practical implications when expressing views on major issues
Create an Advisory Forum
Change EFRAG's voting procedures
Cooperate more closely with EU national accounting standard setters
Enhance EFRAG's working relationship with IASB
Increase EFRAG's overall visibility and transparency
Seek formal recognition under the EU accounting regulation from the European Commission
Increase EFRAG's funding
30 April 2004: Special edition of IASPlus on IFRS 5
We have published a Special Global Edition of our IAS Plus newsletter (PDF 56k) devoted to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The news alert summarises the main requirements of IFRS 5 and discusses convergence with US SFAS 144 Accounting for the Impairment or Disposal of Long-Lived Assets. All past issues of the IAS Plus newsletter can be found Here.
29 April 2004: IASB proposes to amend IFRS 3 Business Combinations
The IASB has issued an exposure draft: Proposed Amendments to IFRS 3 Business Combinations: Combinations by Contract Alone or Involving Mutual Entities. The amendments would add to the scope IFRS 3:
Combinations in which separate entities are brought together to form a reporting entity by contract alone without the obtaining of an ownership interest; and
Business combinations involving mutual entities.
Both were excluded from IFRS 3 when it was issued last month. Including these transactions in IFRS 3 would mean that an acquirer must be identified and the acquirer must account for the combination using the purchase method. The exposure draft would not change the IFRS 3 scope exclusion for combinations involving entities under common control. If finalised, the proposal would be applied to business combinations agreed to on or after 31 March 2004 (same as IFRS 3). The IASB has asked for comments by 31 July 2004. Click for IASB Press Release (PDF 33k).
29 April 2004: IASB proposes to amend IAS 19 Employee Benefits
The IASB has issued an exposure draft: Proposed Amendments to IAS 19 Employee Benefits: Actuarial Gains and Losses, Group Plans and Disclosures. The amendments would introduce an option for an entity to recognise actuarial gains and losses in full as they arise, outside profit or loss, in a statement of changes in equity that shows total recognised gains and losses (sometimes called comprehensive income). This proposal is similar to the requirements of the UK standard, FRS 17 Retirement Benefits. The IASB concluded that, pending further work on post-employment benefits and on reporting comprehensive income, the Board believes that the approach in FRS 17 should be available as an option to IFRS preparers. IAS 19 would also continue to permit recognition of actuarial gains and losses in profit or loss, either in the period in which they occur or spread over the service lives of the employees. Almost all entities currently using IAS 19 choose to spread actuarial gains and losses. The exposure draft also would:
Extend the application of multi-employer plan accounting to entities within a consolidated group that meet certain criteria.
Add disclosures to (a) provide information about trends in the assets and liabilities in a defined benefit plan and the assumptions underlying the components of the defined benefit cost and (b) bring the disclosures in IAS 19 closer to those required by the US standard SFAS 132 Employers' Disclosures about Pensions and Other Postretirement
Benefits, which was revised in December 2003.
The IASB seeks comments by 31 July 2004. Click for IASB Press Release (PDF 26k).
29 April 2004: EFRAG seeks comments on two endorsement proposals
The European Financial Reporting Advisory Group (EFRAG) has invited comments by 24 May 2004 on two draft letters to the European Commission recommending the adoption of IFRS 3 Business Combinations, as well as the recently revised IAS 36 Impairment of Assets and IAS 38 Intangible Assets, for use in Europe. Despite the favourable recommendation, the letters express EFRAG's "serious concern" about recognising in-process R&D as an asset and about recognising contingent liabilities. Click to download the draft IFRS 3 Letter (PDF 48k) and IAS 36 and 38 Letter (PDF 37k).
28 April 2004: New Accounting Roundup newsletter
We have posted the 26 April 2004 edition of Accounting Roundup (PDF 245k) from Deloitte (United States). This newsletter briefly describes key regulatory and professional developments that have recently occurred and provides links to locations where additional information can be found on each topic. This issue includes updates on activities of FASB, SEC, PCAOB, and IASB. You will find past issues Here.
28 April 2004: Report from IASB meeting with partner standard setters
We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.
28 April 2004: New Australian accounting alert
Deloitte (Australia) has published a new Accounting Alert on Disclosing the Impacts
of Adopting Australian Equivalents to IFRS (PDF 64k). Past issues can be found Here.
27 April 2004: Report from IASB meeting with partner standard setters
We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.
27 April 2004: EFRAG recommends adoption of IFRS 2 for use in Europe
The European Financial Reporting Advisory Group (EFRAG) has written to the European Commission recommending the adoption of IFRS 2 Share-based Payment for use in Europe. "EFRAG supports the IASB conclusion that an expense should be recognised even though the share-based payment transaction does not require the entity to sacrifice any
cash or other assets." Click to Download EFRAG's Letter (PDF 40k).
27 April 2004: Singapore adopts improved IASs and revised IASs 32 and 39
The Singapore accounting standard-setter – the Council on Corporate Disclosure and Governance (CCDG) – has approved revised standards comparable to those issued under the IASB's Improvements Project, except for IAS 40 Investment Property. The CCDG has also approved revised standards comparable to the revised IAS 32 and IAS 39. The new standards issued by the CCDG contain a few departures from the equivalent revised IASs:
FRS 16 Property, Plant and Equipment allows for one-off revaluations prior to 1996 to be carried as cost.
FRS 17 Leases allows leasehold land to be classified as a finance lease if it meets the criteria in the standard.
FRS 27 Consolidated and Separate Financial Statements, FRS 28 Investments in Associates, and FRS 31 Interests in Joint Ventures do not require that the parent must produce consolidated financial statements that comply with IFRSs in order to be exempt from consolidation or applying the equity method.
These improved FRSs will be effective for financial periods beginning on or after 1 January 2005. There's more information at the CCDG Website.
24 April 2004: EFRAG draft endorsement and comment letters
The European Financial Reporting Advisory Group (EFRAG) has released the following documents:
Final Comments on ED 6 Exploration for and Evaluation of Mineral Resources as submitted to the IASB (PDF 48k).
24 April 2004: Report from IASB-FASB joint meeting 23 April 2004
We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.
24 April 2004: Agenda announced for IFRIC meeting 4-5 May 2004
The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Tuesday and Wednesday, 4-5 May 2004. The agenda for the meeting is set out below.
IFRS 2 - Accounting for Employee Share Ownership Plans
24 April 2004: New Australian standard on disclosing the impacts of IFRSs
The Australian Accounting Standards Board has published a new accounting standard AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards. The purpose of the standard is to provide users of financial reports with relevant and reliable information about the impacts of changes in accounting policies in the period leading up to full adoption of Australian equivalents of IFRSs. The disclosures must be made by all entities, including not for profit entities, for interim and annual reporting periods ending on or after 30 June 2004. Click for Media Release (PDF 25k). You can download a PDF Version of AASB 1047 from the AASB's Website.
24 April 2004: Information about Japanese accounting standards
The European IFRS regulation requires that companies based in Europe and trading in European public capital markets must prepare IFRS financial statements starting in 2005. One of the issues left to national securities exchanges and regulators is whether to impose the IFRS requirement on companies from outside Europe that are listed on European exchanges. The British securities regulator has proposed to allow non-UK companies to submit only IFRS or US GAAP financial statements (see our news stories of 26 and 27 January 2004). Three Japanese groups (securities regulator, accounting standard setter, and professional accountancy body) have issued a nine-page electronic document Evolving Japanese GAAP: High Quality Accounting Standards to make the case that "Japanese GAAP is equivalent to IFRS" and, therefore, should be allowed. Click to Download (PDF 590k).
23 April 2004: Two new IFRS e-learning modules are now available
Two new modules have been added to the Deloitte IFRS e-Learning programme:
IAS 7 Cash Flow Statements
IAS 10 Events after the Balance Sheet Date
Global demand has been enthusiastic, to say the least. Around 23,000 modules have been downloaded by nearly 3,000 unique visitors from over 130 different countries. The modules for IAS 12, IAS 19, IAS 32/39, IAS 33, and IFRS 1 are in the late stages of development. You can access all available modules by clicking the IFRS e-Learning button on the IASPlus home page or by clicking Here. Deloitte is making our IFRS e-Learning programme available in the public interest without charge.
23 April 2004: European Commission endorses IFRS 1
The European Commission has published Commission Regulation No. 707/2004 of 06 April 2004 endorsing IFRS 1 for use under the European Accounting Regulation. Click for Endorsement Regulation (PDF 181k).
23 April 2004: FASB will hold public round-tables on share-based payment
The US Financial Accounting Standards Board has announced plans to hold public roundtable meetings on its Exposure Draft Share-Based Payment on 24 June 2004 in Palo Alto, California, and on 29 June 2004, in Norwalk, Connecticut. FASB has proposed to require recognition of compensation expense for the fair value of stock options given to employees. The IASB recently adopted a similar requirement in IFRS 2. Click for More Info about the FASB round-tables.
23 April 2004: Report from IASB-FASB joint meeting 22 April 2004
We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.
22 April 2004: Report from IASB meeting 21 April 2004
We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.
21 April 2004: Jan Engstrom is appointed to the IASB
The Trustees of the IASB's parent Foundation have appointed Jan Engstrom to membership on the IASB, effective 1 May 2004. Mr Engstrom, formerly the CFO of Volvo Group and a native of Sweden, will fill the vacancy for a full-time preparer position created by the retirement of Harry Schmid. Mr Engstrom's term will expire on 30 June 2009. Click for Press Release (PDF 16k).
21 April 2004: Paul Volcker and Robert Herz testify at US Senate hearing
IASC Foundation chairman Paul A. Volcker and FASB Chairman Robert H. Herz both testified on the importance of independent, non-politicised accounting standard setting before a US Senate committee. The committee is considering possible legislation that would restrict the adoption of a proposed FASB standard that would require recognition of compensation expense for the fair value of stock options given to employees.
Mr. Herz's testimony can be found on FASB's Website. An excerpt: "Like investors and creditors, Congress and other policy makers need an independent FASB to maintain and improve the integrity of accounting standards in order to obtain the financial information necessary to properly assess and implement the public policies that you favor. While current efforts by certain parties to block improvements to the accounting for equity-based compensation may seem attractive to some in the short run, in the long run biased accounting standards are harmful to investors, creditors, the capital markets, and the US economy." In making his case, Mr. Herz cited IFRS 2 and the "benefit of achieving greater international comparability in the area of accounting for equity-based compensation".
21 April 2004: IASB proposes further amendments to IAS 39
The IASB has issued an exposure draft proposing to limit the option in IAS 39 Financial Instruments Recognition and Measurement to measure individual financial assets and financial assets at fair value, with value changes through profit and loss. The option was added to IAS 39 when it was amended in December 2003. Following dialogue with banking supervisory authorities, who expressed concern that the fair value option might be used inappropriately, the IASB's latest exposure draft, Amendments to IAS 39 Financial Instruments: Recognition and Measurement - The Fair Value Option, proposes to limit the option's availability by:
Limiting the types of financial assets and financial liabilities to which the option may be applied to the following five specified categories:
Financial assets and financial liabilities that contain embedded derivatives.
Financial liabilities whose cash flows are contractually linked to the performance
of assets that are measured at fair value.
Cases when the exposure to changes in the fair value of the financial asset or
financial liability is substantially offset by the exposure to the changes in the fair
value of another financial asset or financial liability, including a derivative.
Financial assets other than loans and receivables.
Items that other Standards allow or require to be designated as at fair value
through profit or loss.
Requiring that the option may be applied only to financial assets and financial liabilities whose fair value is verifiable.
21 April 2004: Venezuela adopts International Financial Reporting Standards
The Board of the Venezuelan Federation of Certified Public Accountants has announced that it has decided to adopt International Financial Reporting Standards (including IASs, IFRSs, and related interpretations) without any modification whatsoever. A special commission has been created to define the implementation process. It is considering the following proposed steps for implementation:
2005 – Listed companies
2006 – Large companies
2007 – Small and medium sized companies; state companies, and companies under specific rules or regulations (banks and insurance companies)
20 April 2004: European and Japanese business groups concerned about FV trend
A joint Public Statement (PDF 58k) issued by an unusual alliance of groups representing European small business and Japanese big business states that those groups "strongly oppose the IASB's further consideration of the 'full fair value concept' without further research on the needs of users and preparers, and the economic consequences of this fundamental change in concepts because of its inherent theoretical and practical problems." They note that the full fair value concept manifests itself in the current IASB projects on Performance Reporting (Comprehensive Income Reporting), Financial Instruments, and revisions to Accounting for Employee Benefits including Pensions. The two groups are Nippon Keidanren (whose membership includes 1,600 companies and industry organisations in Japan) and UNICE (a federation of 36 industry groups in 29 European countries).
19 April 2004: Ten new IAS-equivalent standards adopted in Hong Kong
The Council of the Hong Kong Society of Accountants has adopted 10 new accounting standards and one interpretation that are identical in content to their IAS and SIC counterparts. These were previously approved by the Financial Accounting Standards Committee (FASC). Moreover, Hong Kong standards are being renamed and renumbered to conform to IASB numbering. The new Hong Kong pronouncements are: HKAS 1 Presentation of Financial Statements; HKAS 2 Inventories; HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; HKAS 10 Events after the Balance Sheet Date; HKAS 16 Property, Plant and Equipment; HKAS 21 The Effects of Changes in Foreign Exchange Rates; HKAS 27 Consolidated and Separate Financial Statements; HKAS 28 Investments in Associates; HKAS 29 Financial Reporting in Hyperinflationary Economies; HKAS 33 Earnings per Share; and HKAS-Int 12 Consolidation - Special Purpose Entities. Remaining convergence issues are currently being dealt with by the FASC.
17 April 2004: Agenda for IASB meeting with partner standard setters
The IASB will meet with the chairs of its eight liaison national standard setters on Monday and Tuesday 26-27 April at Painters Hall, 9 Little Trinity Lane, London. The agenda for the meeting is noted below.
AGENDA – IASB MEETING WITH LIAISON STANDARD SETTERS 26-27 APRIL 2004
Meeting with Trustees Re Constitutional Review
Board Priorities
Research Project - Measurement
Research Project - Leases
Role of National Standard Setters After Adopting or Converging with IASB GAAP
Research Project - Extractive Industries
Research Project - Intangibles
Research Project - Joint Ventures
Management Commentary
17 April 2004: Agenda for joint IASB-FASB meeting is announced
The IASB will meet jointly with the US Financial Accounting Standards Board on Thursday and Friday 22-23 April at the Radisson SAS Portman Hotel, 22 Portman Square, London. The agenda for the meeting is noted below.
AGENDA – JOINT IASB-FASB MEETING 22-23 APRIL 2004
Short-term Convergence Topics
Income Taxes
Proposed Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Research and Development Costs
Business Combinations Phase II
Reporting Comprehensive Income
Revenue Recognition
Board Priorities
16 April 2004: PCAOB forms a Standing Advisory Group
The US Public Company Accounting Oversight Board has formed a Standing Advisory Group to assist the Board in carrying out its standards-setting responsibilities. From 170 nominees, the PCAOB selected 30 individuals with expertise in a variety of fields, including accounting, auditing, corporate finance, corporate governance, and investing in public companies. Advisory Group members include Robert J. Kueppers, National Managing Partner – Risk, Professional, Regulatory Matters, Deloitte & Touche (USA). The International Auditing and Assurance Standards Board is one of four groups invited to participate as observers. Click for More Information.
16 April 2004: Agenda for April IASB meeting is announced
The April 2004 monthly meeting of the International Accounting Standards Board will be held in London in three parts:
Wednesday 21 April: Meeting of the IASB itself (at the IASB offices, 30 Cannon Street, London)
Thursday and Friday 22-23 April: Joint meeting of the IASB and the US FASB (at the Radisson SAS Portman Hotel, 22 Portman Square, London)
Monday and Tuesday 26-27 April: Meeting of the IASB with chairs of its partner national standard setters (at Painters Hall, 9 Little Trinity Lane, London)
The agenda for the 21 April Board meeting is set out below.
AGENDA – IASB MEETING 21 APRIL 2004
Standards for Small and Medium-Sized Entities
IFRIC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
IAS 39 – Transitional Provisions and 'Day One' Profit Recognition
Business Combinations Phase II
Revenue Recognition
Short-term Convergence
Reporting Comprehensive Income
16 April 2004: Deloitte comments on ED 6 on mineral exploration
We have posted the Deloitte Letter of Comment on ED 6Exploration for and Evaluation of Mineral Resources (PDF 240k). Excerpt:
While we applaud the IASB for its efforts to address accounting for the exploration for and
evaluation of mineral resources, we question the approach taken in ED 6. That is, to develop
an "interim standard" that exempts entities within the scope of the draft standard from
complying with certain parts of the Framework and defers addressing recognition and
measurement principles until a later date. We do not believe this approach should be
precedent for future projects. In contrast, we would prefer that the IASB address these issues
as part of a comprehensive project involving the development of proper recognition and
measurement principles for the extractive industries.
We understand the IASB's desire to finalise as many of its projects prior to the
implementation of International Financial Reporting Standards (IFRS) in Europe.
Consequently, we accept the need to provide some interim guidance on the accounting for
exploration for and evaluation of mineral resources before a final standard on recognition and
measurement principles is completed. Accordingly, we support the development of ED 6 into
an International Financial Reporting Standard until such time as the IASB's comprehensive
project can be completed.
Deloitte comment letters back to 1995 can be found Here.
15 April 2004: Deloitte Australian accounting alert on IFRS 5
A new Accounting Alert from Deloitte Australia Non-current Assets Held for Sale and Discontinued Operations provides an overview of the requirements of IFRS 5 and some analysis of the issues arising. The Australian Accounting Standards Board is expected to issue an Australian equivalent to this Standard in due course. Click to Download (PDF 57k). Other Australian Alerts.
15 April 2004: New Deloitte newsletter explains FASB's stock option proposals
Narrowing Your Options! Fair Value Accounting for Share-Based Payments is the latest edition of the Heads Up newsletter from Deloitte (United States). The 18-page newsletter provides Deloitte's initial insights into FASB's proposed standard that would require public companies to record share-based payments at fair value and to recognise this amount as compensation expense, typically as the awards vest. The newsletter includes 28 Q&As. The FASB proposal is similar to IFRS 2 issued in February by the IASB. Click to Download the Heads Up Newsletter (PDF 183k).
15 April 2004: SEC proposes to adopt PCAOB standard on internal control
The US Securities and Exchange Commission has Proposed to adopt Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements, issued by the Public Company Accounting Oversight Board. The proposed effective date for "accelerated filers" (generally domestic companies with public float over $75 million) is financial years ending on or after 15 November 2004. Other companies have until financial years ending on or after 15 July 2005.
14 April 2004: Special edition of IASPlus on IFRS 3 Business Combinations
We have published a Special Global Edition of our IAS Plus newsletter (PDF 56k) devoted to IFRS 3 Business Combinations and the related amendments to IAS 36 Impairment of Assets and IAS 38 Intangible Assets issued by the IASB on 31 March 2004. The newsletter outlines the main features of IFRS 3 and discusses the impairment testing requirements of the revised IAS 36 as they relate to goodwill acquired in a business combination. All past issues of the IAS Plus newsletter can be found Here.
14 April 2004: New Zealand accounting alert on financial instruments
We have posted the latest New Zealand Accounting Alert (PDF 317k), which provides an overview of proposals to adopt equivalents of IAS 32 and IAS 39 (financial instruments) in New Zealand. These EDs would will fill a major gap in New Zealand's current reporting framework, given that the recognition and measurement of financial instruments has not previously been the subject of a financial reporting standard in New Zealand. Past NZ Alerts can be found Here.
13 April 2004: IFAC defines member bodies' obligations on IFRS
The Board of the International Federation of Accountants (IFAC) has approved seven Statements of Membership Obligations (SMOs) designed to assist and direct IFAC's 158 member organisations and potential members in ensuring high quality performance by professional accountants. The SMOs will be presented to IFAC's Council for ratification in November. Proposed effective date is 31 December 2004. SMO No. 7 International Financial Reporting Standards requires IFAC's member organisations to (among other things):
Support the work of the IASB by notifying their members of every IFRS.
Encourage their members to comment on IASB proposals.
Use their best endeavours to incorporate the requirements of IFRSs in their national accounting requirements, or where the responsibility for the development of national accounting standards lies with third parties, to persuade those responsible for developing those requirements that general purpose financial statements should comply with IFRSs, or with local accounting standards that are converged with IFRS, and disclose the fact of such compliance
To assist with the implementation of IFRSs, or national accounting standards that incorporate IFRSs.
13 April 2004: New Australian accounting alert on IFRS 3
We have posted a new Accounting Alert from Deloitte Australia: IASB Issues Standards on Business Combinations, Intangibles and Impairment. The Alert highlights differences from current Australian practice. Click to Download (PDF 121k). Links to Past Alerts.
13 April 2004: IASB will meet 21-23 April and 26-27 April 2004 in London
The April 2004 monthly meeting of the IASB will be held in London in three "components". The IASB has not yet announced the agendas for the meetings:
Wednesday 21 April: Meeting of the IASB itself (at the IASB offices, 30 Cannon Street, London)
Thursday and Friday 22-23 April: Joint meeting of the IASB and the US FASB (at the Radisson SAS Portman Hotel, 22 Portman Square, London)
Monday and Tuesday 26-27 April: Meeting of the IASB with chairs of its partner national standard setters (at Painters Hall, 9 Little Trinity Lane, London)
13 April 2004: IASPlus newsletters for April 2004
We have published the April 2004 edition of our quarterly IAS Plus newsletter in two versions:
Both editions have the same news about international financial reporting, including updates on IASB projects and Board activities and news about IFRS in Europe, the United States, and elsewhere in the World. Additionally, the Asia-Pacific edition has updates on accounting standard setting activity in a number of countries in that region.
12 April 2004: Accounting Roundup newsletter for first quarter 2004
We have posted the first quarter 2004 summary edition of our Accounting Roundup Newsletter (PDF 629k) from Deloitte (United States). The newsletter includes articles drawn primarily from the Accounting Roundup newsletters published in the first quarter of 2004 and have been updated where appropriate. Past issues of Accounting Roundup can be downloaded Here.
IFRIC D3 Determining Whether an Arrangement Contains a Lease (PDF 45k)
IFRIC D4 Decommissioning, Restoration and Environmental Rehabilitation Funds (PDF 38k)
9 April 2004: Reminder – comment deadline on IASB ED 6 is 16 April 2004
The deadline for comments on the IASB's Exposure Draft 6 Exploration for and Evaluation of Mineral Resources is one week from today.
8 April 2004: UK adopts share-based payment standard
The United Kingdom Accounting Standards Board has adopted the equivalent of IFRS 2, Share-based Payment. Click for Press Notice.
8 April 2004: Only 11 of 31 SIC interpretations will remain in force
Of the 31 Interpretations published by the Standing Interpretations Committee – which was replaced by the International Financial Reporting Interpretations Committee in April 2001 – only the following 11 remain in effect as part of the body of standards that companies in Europe and elsewhere will adopt in 2005. The others have been superseded by either new IFRSs or revised IASs issued by the IASB. The IFRIC has not yet issued any final interpretations:
SIC 7 Introduction of the Euro
SIC 10 Government Assistance – No Specific Relation to Operating Activities
SIC 12 Consolidation – Special Purpose Entities
SIC 13 Jointly Controlled Entities – Non-Monetary Contributions by Venturers
SIC 15 Operating Leases – Incentives
SIC 21 Income Taxes – Recovery of Revalued Non-Depreciable Assets
SIC 25 Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
SIC 27 Evaluating the Substance of Transactions in the Legal Form of a Lease
SIC 29 Disclosure – Service Concession Arrangements
SIC 31 Revenue – Barter Transactions Involving Advertising Services
SIC 32 Intangible Assets – Website Costs
8 April 2004: Deloitte (Denmark) newsletters on IFRS 3 and IFRS 5 Deloitte (Denmark) has published a newsletter in Danish about IFRS 3 Business Combinations (PDF 281k) and IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (PDF 185k).
8 April 2004: Reference to PCAOB standards in reports on SEC registrants
The US Securities and Exchange Commission has Proposed to adopt Auditing Standard No. 1 of the Public Company Accounting Oversight Board that would require that auditors' reports on SEC registrants state that the audit was performed in accordance with "the standards of the Public Company Accounting Oversight Board (United States)". The current reference to generally accepted auditing standards would no longer be appropriate.
7 April 2004: IASC Foundation welcomes Australia's move to IFRSs in 2005
The IASC Foundation trustees have issued a Press Release (PDF 14k) welcoming the decision by the Australian Financial Reporting Council regarding adoption of IFRSs in Australia starting in 2005 (see 5 April news story).
5 April 2004: Deloitte supports Australian decision for IFRSs in 2005
The Australian Financial Reporting Council (FRC) – the government agency that oversees the Australian Accounting Standards Board (AASB) – has unanimously agreed "in principle" to stick with its announced timetable for adopting Australian equivalents of IFRSs as Australian GAAP effective from 1 January 2005. However the FRC said that "this is subject to receiving assurance from the AASB that the set of international accounting standards issued by the IASB is complete and meets the requirements of the Australian market place and that the AASB will be able to make available on its website the corresponding versions of Australian standards by 30 June 2004." Deloitte Australia has Expressed Strong Support (PDF 45k) for the FRC's decision. Deloitte partner Bruce Porter said that keeping the 2005 start date "will ensure that Australia remains at the forefront of global accounting trends".
3 April 2004: Summary of IAS 39 is updated for macro hedging
We have updated our summary of IAS 39 Financial Instruments: Recognition and Measurement to reflect the Macro Hedging Amendments (PDF 43k) released earlier this week.
2 April 2004: Summaries of standards are posted
We have posted summaries of the three new IFRSs issued by the IASB earlier this week, and we have updated our summaries of two other standards, as follows:
2 April 2004: EFRAG seeks views on whether to endorse IFRIC D5
The European Financial Reporting Advisory Group has Invited Comments on its draft letter to the International Financial Reporting Interpretations Committee commenting on Draft Interpretation D5 Applying IAS 29 Financial Reporting in Hyperinflationary Economies for the First Time. EFRAG requests comments by 27 April 2004.
1 April 2004: European Parliament adopts a transparency directive
The European Parliament has approved a new Transparency Directive that will improve the information that investors receive, though not quite as far as had been proposed. The Directive now goes to the Council of Ministers for final approval. Among the provisions:
All securities issuers will have to provide annual financial reports within four months after the end of their
financial year.
More detailed half-yearly financial reports by share issuers will be required, based on IAS 34.
The Parliament did not adopt the Commission's proposal for quarterly financial reports. Instead, the compromise Directive requires that share issuers publish interim management statements in between the annual financial report and the half-yearly financial report. These statements should include a narrative description of the financial position and of the impact of material events on that financial position. This would not apply to those share issuers who publish full quarterly financial reports.
The Parliament considered but did not adopt management remuneration disclosure requirements.
More information is required on related party transactions.
More information will be provided by bond issuers.
A mechanism will be established for assessing at EU level the equivalence between international accounting standards and non-EU country accounting standards for the purpose of allowing companies from non-EU countries to submit their national GAAP financial statements rather than IFRS statements.
1 April 2004: IASB plans to form an international insurance working party
With IFRS 4 Insurance Contracts now published, the IASB is turning its attention to the second phase of its insurance project. IFRS 4 was issued because the Board saw an urgent need for improved disclosures for insurance contracts, and modest improvements to recognition and measurement practices, in time for the adoption of IFRS by listed companies throughout Europe and elsewhere in 2005. In the second phase, the IASB will address broader conceptual and practical issues related to insurance accounting. The IASB will form an international insurance accounting working party of about 15 members – experts active in the insurance industry and the accounting profession, representatives of the appropriate regulatory and supervisory authorities, and investment analysts. Although the completion of any long-term solution for insurance contracts may take several years, the IASB has said it is willing to revise IFRS 4 in the short term in the light of any immediate solutions arising from the working party's discussions. The Board will announce further details of the insurance working party shortly.
1 April 2004: FASB proposes to charge share-based payments to expense
The US Financial Accounting Standards Board has issued an exposure draft, Share-Based Payment, proposing that all share-based payment transactions – including share options – be recognised in the financial statements and measured at fair value. An expense is recognised when the goods or services received are consumed. The FASB's proposals are generally similar to the accounting requirements in IFRS 2, though FASB would permit nonpublic (unlisted) entities to elect to use either (a) the fair-value-based method or (b) the intrinsic value method with final measurement of compensation cost at settlement date. Under the intrinsic value method, compensation cost is recognised at grant date only if the exercise price of an option is below the market price at that date.
Current US GAAP (FASB Statement 123) allows companies to choose either to recognise the fair value of stock options and other share-based payment as expense or to disclose those fair values in the notes. Nonpublic entities may measure at "minimum value", which excludes a volatility factor, rather than fair value. Click for FASB News Release (PDF 18k). You can download the exposure draft from FASB's Website. Comment deadline is 30 June 2004.
EFRAG has finalised its position paper on 
We have posted the 26 April 2004 edition of 
We have combined onto a 
Deloitte (Australia) has published a new 
The Singapore accounting standard-setter – the Council on Corporate Disclosure and Governance (CCDG) – has approved revised standards comparable to those issued under the IASB's Improvements Project, except for IAS 40 Investment Property. The CCDG has also approved revised standards comparable to the revised IAS 32 and IAS 39. The new standards issued by the CCDG contain a few departures from the equivalent revised IASs:
The International Financial Reporting Interpretations Committee (
The European IFRS regulation requires that companies based in Europe and trading in European public capital markets must prepare IFRS financial statements starting in 2005. One of the issues left to national securities exchanges and regulators is whether to impose the IFRS requirement on companies from outside Europe that are listed on European exchanges. The British securities regulator has proposed to allow non-UK companies to submit only IFRS or US GAAP financial statements (see our news stories of 
The European Commission has published Commission Regulation No. 707/2004 of 06 April 2004 endorsing IFRS 1 for use under the European Accounting Regulation. Click for 
The US Financial Accounting Standards Board has announced plans to hold public roundtable meetings on its Exposure Draft Share-Based Payment on 24 June 2004 in Palo Alto, California, and on 29 June 2004, in Norwalk, Connecticut. FASB has proposed to require recognition of compensation expense for the fair value of stock options given to employees. The IASB recently adopted a similar requirement in 
The Board of the Venezuelan Federation of Certified Public Accountants has announced that it has decided to adopt International Financial Reporting Standards (including IASs, IFRSs, and related interpretations) without any modification whatsoever. A special commission has been created to define the implementation process. It is considering the following proposed steps for implementation:
The Council of the Hong Kong Society of Accountants has adopted 10 new accounting standards and one interpretation that are identical in content to their IAS and SIC counterparts. These were previously approved by the Financial Accounting Standards Committee (FASC). Moreover, Hong Kong standards are being renamed and renumbered to conform to IASB numbering. The new Hong Kong pronouncements are: HKAS 1 Presentation of Financial Statements; HKAS 2 Inventories; HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; HKAS 10 Events after the Balance Sheet Date; HKAS 16 Property, Plant and Equipment; HKAS 21 The Effects of Changes in Foreign Exchange Rates; HKAS 27 Consolidated and Separate Financial Statements; HKAS 28 Investments in Associates; HKAS 29 Financial Reporting in Hyperinflationary Economies; HKAS 33 Earnings per Share; and HKAS-Int 12 Consolidation - Special Purpose Entities. Remaining convergence issues are currently being dealt with by the FASC.
The US Public Company Accounting Oversight Board has formed a Standing Advisory Group to assist the Board in carrying out its standards-setting responsibilities. From 170 nominees, the PCAOB selected 30 individuals with expertise in a variety of fields, including accounting, auditing, corporate finance, corporate governance, and investing in public companies. Advisory Group members include Robert J. Kueppers, National Managing Partner – Risk, Professional, Regulatory Matters, Deloitte & Touche (USA). The International Auditing and Assurance Standards Board is one of four groups invited to participate as observers. Click for 
We have posted the 
We have posted the latest 
The Board of the 
The deadline for comments on the IASB's 
Deloitte (Denmark) has published a newsletter in Danish about 
The IASC Foundation trustees have issued a 
