30 June 2005: Amendments proposed to IFRS 3, IAS 27, IAS 37

The IASB and the US Financial Accounting Standards Board (FASB) have each published for public comment exposure drafts containing joint proposals to improve and align the accounting for business combinations. The proposals include a draft standard that the boards have developed in their first major joint project. The proposed standard would replace the existing requirements of the IASB's IFRS 3 Business Combinations and the FASB's Statement 141 Business Combinations. The proposals retain the fundamental requirement of IFRS 3 and SFAS 141 to account for all business combinations using the purchase method of accounting, by which one party is always identified as acquiring the other.

The IASB invites comments on all of the exposure drafts by 28 October 2005. Click to Download the IASB Press Release (PDF 56k).

30 June 2005: Amendments to IFRS 6 and IFRS 1

The IASB has issued amendments to IFRS 1 and IFRS 6 to clarify that an entity that both (a) adopts IFRSs for the first time before 1 January 2006 and (b) applies IFRS 6 before that date is exempted not only from providing comparative prior-period disclosures but also from applying the recognition and measurement requirements of IFRS 6 in the prior comparative period. Click to Download the IASB Press Release (PDF 48k).

30 June 2005: June 2005 edition of EITF Roundup
We have posted the June 2005 Edition of EITF Roundup (PDF 152k), which provides an overview of the issues discussed, consensuses reached, and administrative matters discussed at the 15-16 June 2005 meeting of FASB's Emerging Issues Task Force. You will find past issues Here.

28 June 2005: Trustees' press release on constitutional changes
As we have previously reported, at their meeting in Paris on 21 June 2005 the Trustees of the IASC Foundation approved a number of Amendments to the IASCF Constitution following their review of the structure and operations of the IASB, IFRIC, SAC, and the IASCF. Those amendments are intended:

• to enhance the organisation's accountability by increasing the Trustees' oversight and interaction with parties interested in, and affected by, accounting standards.
• to improve the transparency of the organisation's operations by introducing new procedures and practices.
• to establish a high level advisory group of leaders of official international and regional organisations to assist the Trustees in their responsibility for nominating and appointing individuals as Trustees.
• to respond to concern that the experiences of those from some large economies outside Europe and North America have not been represented among the Trustees by expanding the number of Trustees from 19 to 22, with a provision for two new appointments from Asia/Oceania.
• to emphasise the need for, and to encourage, extensive consultation through formal and informal mechanisms, including a reinvigorated and more effective Standards Advisory Council, and expanded liaison beyond existing due process requirements.
• to highlight the commitment of the Trustees to ensuring that an independent IASB is composed of individuals that bring to its work not only technical expertise but a broad range of perspectives and skills, including practical experience.
• to take explicit note of the special needs of small and medium-sized entities.

The Trustees have today issued a Press Release detailing the steps leading to the constitutional changes (PDF 84k).

27 June 2005: EFRAG seeks to be more 'proactive'
The European Financial Reporting Advisory Group (EFRAG) has released a Position Paper (PDF 21k) on Proactive Accounting Activities in Europe: EFRAG and the National Standard Setters. The objectives of the greater proactivity, as agreed by EFRAG and 17 European accounting standard setters, are:

• EFRAG and the national standard-setters (NSS) should work much more closely together to improve the input from Europe to the global standard-setting process.
• By working more closely together and pooling resources, Europe should become more involved in the IASB's work from an early stage.
• Increased co-operation will encourage the development of common views and ensure, as far as is practicable, that the messages Europe gives the IASB are consistent.

27 June 2005: Two new projects planned for IASB agenda

At today's meeting of the Standards Advisory Council, IASB research director Wayne Upton said that the IASB staff plans to propose to the Board, for consideration in July, two new projects for the Board's active agenda:

27 June 2005: Notes from the IASB meeting 23 June 2005

The IASB met at its offices in London on Wednesday and Thursday, 22-23 June 2005. We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate Web Page.

26 June 2005: Webcast covers a range of IFRS/UK GAAP issues
The Deloitte United Kingdom IFRS Centre of Excellence is running a monthly series of hour-long Internet-based IFRS technical updates, focusing on the most important international accounting standards and how they will affect UK companies. The fourteenth session was run on Thursday 23 June 2005 and focused on the new Operating and Financial Review, company law and other regulatory changes, and draft guidance on IFRSs and distributable profits. To access the recording Click Here. The recording of each session will be available on this website for a period of at least 3 to 4 weeks from the date of the presentation. Links to past sessions may be found on our United Kingdom Page. The recording is no longer available online.

25 June 2005: IASB withdraws IFRIC 3 Emission Rights
The IASB has voted to withdraw IFRIC 3 Emission Rights, which had been issued in December 2004 and was scheduled to go into effect for annual periods beginning on or after 1 March 2005. IFRIC 3 specifies that emission rights (allowances) granted by government are intangible assets that should be recognised in the financial statements in accordance with IAS 38 Intangible Assets and that as a participant produces emissions, it recognises a provision for its obligation to deliver allowances in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Some of the Board's constituents had expressed concern about a resulting 'accounting mismatch' because the intangible asset is measured at historical cost while the provision is measured at the market value of the allowances needed to settle it. IFRIC discussed the matter at its 2-3 June 2005 meeting. That discussion included a staff analysis of a proposal by EFRAG for the development of a form of cash flow hedge accounting to reduce the volatility resulting from the timing of receipt of allowances. IFRIC had recommended that the Board consider these wider issues. The Board also had before it a letter from the European Commission requesting that the effective date of IFRIC 3 be deferred. The Board concluded that while IFRIC 3 is the appropriate interpretation of the existing requirements of IAS 37 and IAS 38, the 'accounting mismatch' problem suggests the need for a more comprehensive consideration of the issue. Pending that consideration, IFRIC 3 has been withdrawn.

24 June 2005: Hong Kong Exchange Chairman urges IFRSs globally
In his Remarks at HKICPA's Recent Financial Reporting Standards Forum (PDF 14k) Charles Lee, chairman of Hong Kong Exchanges and Clearing Ltd., gave a strong endorsement to the global use of International Financial Reporting Standards. He noted that 36% of the turnover of the Hong Kong exchange is generated by international investors who are best served by a uniform global accounting language. An excerpt from Mr. Lee's comments:

24 June 2005: Comment deadline on SME questionnaire is next week

We remind IAS Plus visitors that the deadline for responding to the IASB's Staff Questionnaire on Possible Recognition and Measurement Modifications for Small and Medium-sized Entities (SMEs) is 30 June 2005. For information about the SME project click Here.

23 June 2005: Notes from the IASB meeting 22 June 2005

The IASB met at its offices in London on Wednesday and Thursday, 22-23 June 2005. We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate Web Page.

23 June 2005: Two recommendations from EFRAG
The European Financial Reporting Advisory Group has Recommended (PDF 18k) to the European Commission that the amendments to the Amendments to IAS 39 relating to cash flow hedge accounting of forecast intragroup transactions be endorsed for use in Europe. EFRAG has also written to IFRIC supporting the proposal in IFRIC D15 Reassessment of Embedded Derivatives but with some suggestions for change.

23 June 2005: Accounting convergence goal agreed at US-EU summit
On 20 June 2005, at the United States-European Union summit meeting in Washington, the US and the EU jointly announced a series of undertakings designed to implement the Declaration on Enhancing Transatlantic Economic Integration and Growth. One of the undertakings is "promoting convergence of accounting standards as soon as possible". Click to download:

• White House Press Release (PDF 34k).
• EU Presidency Press Release (PDF 40k).

23 June 2005: IFRS XBRL taxonomy information updated
We have updated our page of information about the IFRS General Purpose XBRL Taxonomy to reflect new features and download links.

22 June 2005: Notes from IASC Foundation trustees meeting
The Trustees of the IASC Foundation met in Paris on 21 June 2005. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting. Since much of the discussion was based on papers that were not made available to observers at the meeting, the information contained within should not be relied on.

22 June 2005: New Australian Accounting Alert newsletter

The latest Australian Accounting Alert Newsletter (PDF 57k) discusses the accounting recognition and measurement options (policy choices) that are in the Australian 'equivalents' of IFRSs. A-IFRS options are not the same as those in IFRSs as the AASB has eliminated some IFRS options when the standards were adopted in Australia. You will find all past Australian Accounting Alerts Here.

22 June 2005: Danish newsletter about IAS 39 fair value option
Deloitte (Denmark) has published a short newsletter IFRS: Changes to IAS 39 Fair Value Option (in Danish). The newsletter summarises the IASB's recent changes to the IAS 39 fair value option and the consequences for listed entities in Denmark, especially for the Danish mortgage institutions. Click here to Download (PDF 93k, 3 pages).

22 June 2005: Roadmap to fair valuing share-based payment awards

Deloitte & Touche USA LLP has published a 201-page book of guidance on FASB Statement No. 123(R), Share-Based Payment. The Deloitte publication, A Roadmap to Applying the Fair Value Guidance to Share-Based Payment Awards (PDF 1,405k), includes over 100 of Deloitte & Touche LLP's initial interpretations of this landmark accounting standard and focuses on three of the primary areas of the new standard: measurement and valuation recognition transition of share-based payment awards

The book also contains other resource materials, including a GAAP accounting and disclosure checklist, to assist financial statement preparers in the implementation and application of Statement 123(R). The principles in IFRS 2 Share-based Payment and FASB Statement 123(R) are similar though not completely identical. Click for List of Differences.

21 June 2005: UK audit firms' technical reviews of IFRS statements
The United Kingdom Professional Oversight Board for Accountancy – which is part of the UK Financial Reporting Council, under which the UK Accounting Standards Board also operates – has released the report of its review of the auditing function of the Big Four firms. Although the report relates to auditing issues, one of its recommendations is for greater technical review of IFRS financial statements:

• Report (PDF 73k)
• Press Release (PDF 22k)

21 June 2005: EFRAG recommends endorsement of fair value option
The European Financial Reporting Advisory Group has Recommended (PDF 18k) to the European Commission that the amendments to the IAS 39 fair value option that the IASB issued last week be endorsed for use in Europe. Click for:

• More Information about the IASB's Fair Value Option Amendment (on our IAS 39 page)
• IASB Press Release (PDF 55k)

20 June 2005: Hong Kong interview with Sir David Tweedie

We have posted "Take It from the Top", an Interview with IASB Chairman Sir David Tweedie (PDF 97k) from the June 2005 issue of A Plus, the newly revamped magazine of the Hong Kong Institute of Certified Public Accountants (copyright 2005 by HKICPA and posted with permission). Hong Kong has adopted every IFRS word for word as Hong Kong Financial Reporting Standards effective in 2005, replacing old Hong Kong GAAP. Issues that Sir David addresses in the interview include the pace of change, the need for further improvements in existing standards, bringing the US on board with IFRSs, and the need for simplified standards for small and medium-sized entities.

19 June 2005: IASC Foundation 2004 annual review is published

The IASC Foundation has published its annual review for 2004. The report may be Downloaded from IASB's Website (PDF 1,486k). The report includes a review by IASCF Chairman Paul A. Volcker of the trustees' activities during 2004, with emphasis on the constitution review and financing the operations of the IASB, IFRIC, SAC, and IASCF. Also included is a 10-page report from Sir David Tweedie, IASB Chairman, He noted that the IASB's three major objectives during 2004 were:

• To provide a stable platform of acceptable standards for companies changing to IFRSs in 2005
• To continue, and accelerate, the convergence programme with FASB and other standard-setters
• To encourage other jurisdictions to join those who either allow or require IFRSs to be used by domestic companies

18 June 2005: Trustees to consider final constitution amendments
At their meeting in Paris on 21 June 2005, the Trustees of the IASC Foundation, under which the IASB operates, will discuss a draft of the proposed final report of the Constitution Review. Below are some of the key proposed conclusions. Click here for more information about the Constitution Review.

18 June 2005: SEC Commissioner comments on GAAP reconciliation

	In a Speech (PDF 69k) earlier this week in Washington, US SEC Commissioner Cynthia A. Glassman spoke about elimination of the IFRS-US GAAP reconciliation requirement:
We are but one player in the global economy, and we do not operate in a vacuum. As many of you may be aware, beginning January 1, 2005, all listed European Union companies must prepare their consolidated financial statements in accordance with International Financial Reporting Standards ('IFRS'). As a result of this change, there has been increased focus on the desired elimination of our current reconciliation requirement and on the ultimate convergence of IFRS and U.S. GAAP. Since October 2002, the Financial Accounting Standards Board and the International Accounting Standards Board have been jointly pursuing a convergence project, and we have been very supportive of this effort. Don Nicolaisen, our Chief Accountant, has proposed a Roadmap (PDF 228k) to convergence that lays out the staff's thinking about conditions and actions that would need to take place prior to ending our reconciliation requirement. Our staff has already begun this analysis, and the Commission is intent on considering the eventual elimination of the reconciliation requirement and the ultimate convergence of IFRS and U.S. GAAP. The consistent application and interpretation of the standards and the pace towards convergence will depend on companies and accounting firms as well as standard-setters and regulators.

18 June 2005: IASB 'convergence update'
The IASB has released a brief Convergence Update (PDF 18k) of its joint efforts with the US Financial Accounting Standards Board to converge IFRSs and US GAAP. The IASB intends to post further convergence updates from time to time.

17 June 2005: Europe may establish an IFRS interpretations 'forum'

In an Address to the Federation of European Securities Exchanges (PDF 100k), European Commissioner for Internal Market and Services Charlie McCreevy indicated that the EC is considering a proposal for a 'European Forum' to identify and analyse IFRS implementation issues, to allow IFRIC to focus on key issues. While Mr McCreevy did not provide details about the forum, in several recent speeches members of EFRAG have said that EFRAG would seek to be such a forum. An excerpt from Commissioner McCreevy's comments:

Commissioner McCreevy also spoke about EU-US mutual recognition of each other's GAAP:

17 June 2005: IVSC ED on valuation of plant and equipment
The International Valuation Standards Committee (IVSC) has issued an exposure draft of a proposed revised International Valuation Guidance Note 3 Valuation of Plant and Equipment. This draft reflects significant amendments to an exposure draft that was issued during 2004. Comments are due by 30 September 2005. Click for:

• IVSC Press Release (PDF 281k).
• IVSC Exposure Draft (PDF 193k).

17 June 2005: IFAC President reiterates global importance of IFRSs
Graham Ward, President of the International Federation of Accountants (IFAC), recently made a presentation on Restoring Confidence in the Global Profession (PDF 43k) to The World Bank in Washington. Mr. Ward reviewed IFAC initiatives toward strengthening the worldwide accountancy profession by establishing and promoting adherence to high-quality professional standards and furthering the international convergence of such standards. An excerpt:

16 June 2005: SEC report on off-balance sheet arrangements and SPEs
The US Securities and Exchange Commission has released a Staff Report on Off-Balance Sheet Arrangements, Special Purpose Entities, and Related Issues. The report was prepared pursuant to Section 401(c) of the Sarbanes-Oxley Act of 2002 and, as required by that Act, has been submitted to the President and several Congressional committees. The staff report includes an analysis of the filings of issuers as well as an analysis of pertinent US generally accepted accounting principles and Commission disclosure rules. The report includes several recommendations for potentially sweeping changes in current accounting and reporting requirements for pensions, leases, financial instruments, and consolidation:

• Full Text of SEC Staff Report (PDF 1,241k)
• SEC Press Release (PDF 40k)
• FASB Press Release (PDF 14k)

16 June 2005: IASB issues final IAS 39 fair value option amendment

The IASB has amended IAS 39 Financial Instruments: Recognition and Measurement to restrict the use of the option to designate any financial asset or any financial liability to be measured at fair value through profit and loss (the 'fair value option'). The IASB developed this amendment after commentators, particularly prudential supervisors of banks, securities companies, and insurers, raised concerns that the fair value option contained in the 2003 revisions of IAS 39 might be used inappropriately. The new revisions limit the use of the option to those financial instruments that meet certain conditions. Those conditions are that:

• the fair value option designation eliminates or significantly reduces an accounting mismatch,
• a group of financial assets, financial liabilities, or both are managed and their performance is evaluated on a fair value basis in accordance with a documented risk management or investment strategy, and
• an instrument contains an embedded derivative that meets particular conditions.

16 June 2005: FASB Chairman Herz speaks about simplification of US GAAP
In a Speech (PDF 62k) at the 24th Annual SEC and Financial Reporting Institute Conference on 2 June 2005, FASB Chairman Robert H. Herz spoke about the FASB's plans to simplify US generally accepted accounting principles with the twin goals of reducing the volume and disjointedness of standards, rules, and regulations and reducing the complexity of individual pronouncements.

15 June 2005: IASC Foundation trustees will meet 21 June
The Trustees of the IASC Foundation, which oversees the IASB, will meet on 21 June 2005 at the offices of Lafarge, 61 rue des Belles Feuilles, Paris starting at 8:30am. The agenda of the public portion of the meeting (the morning) is:

Approval of March minutes and introductory remarks Joint meeting with IASB Consideration of specific topics on IASB's agenda and work programme Convergence Conceptual Framework Performance Reporting Approval of the Constitution Review Report

15 June 2005: Article on adoption of IFRSs in Europe
We have posted an article by Paul Pacter, IAS Plus webmaster, titled Adoption of IFRSs in Europe (PDF 1,012k) from the April 2005 issue of The Hong Kong Accountant. In this article Paul responds to the following questions:

14 June 2005: SAC will meet in London 27-28 June 2005
The IASB will meet with the Standards Advisory Council on Monday 27 June 2005 (10:30 to 17:30) and on Tuesday 28 June 2005 (10:00 to 15:00) at the Renaissance London Chancery Court Hotel, 252 High Holborn, London. The agenda for the meeting is set out below.

27-28 June 2005, London Monday 27 June 2005 IASB Chairman's Update – Current Work Convergence – Progress to Date and the Way Forward Bringing together IFRSs and US GAAP with the aim of eliminating the need for the 20F reconciliation by non-US SEC registrants Bringing together IFRSs and Japanese GAAP Wider implications of convergence IASB Agenda Priorities Performance Reporting Progress to date and future direction IFRIC Technical Matters Emission Rights Service Concessions Revenue Recognition Tuesday 28 June 2005 IFRIC Interpretations Worldwide IFRIC Review of Operations Constitution – report on progress and impact on SAC Open Forum Possible Recognition and Measurement Modifications for SMEs – Progress since the February 2005 SAC meeting; responses to the Staff Questionnaire on Possible Recognition and Measurement Modifications for SMEs and discussion by the SAC; project plan.

13 June 2005: Official recognition, funding for EFRAG?
In the annual report of the European Financial Reporting Advisory Group for 2004, the chairman of EFRAG's supervisory board suggests that EFRAG may seek political recognition by the European Union and, possibly, funding as well:

13 June 2005: EC paper on international regulatory dialogues
The European Commission has published a Working Paper (PDF 52k) that outlines the state of play of ongoing international regulatory dialogues between the Commission and certain non-EU country regulators on internal market issues. The paper sets out the Commission's policy priorities for the next several years. Priority will be given to "those regulators and issues where regulatory interdependence is highest and where inefficiencies or frictions are most likely to cause damage." Policy priorities relevant to accounting and auditing include these:

11 June 2005: IASB member Robert Garnett will chair IFRIC

The Trustees of the IASC Foundation have announced that Robert Garnett, an IASB member who has served as the acting chairman of the International Financial Reporting Interpretations Committee (IFRIC) following Kevin Stevenson's departure, will become the non-voting chairman of the IFRIC. The Trustees also announced the renewal of the terms of four IFRIC members for terms of three years ending 30 June 2008: Phil Ameen, Vice President and Comptroller, General Electric Company, United States Michael E Bradbury, Professor of Accounting, Unitec, New Zealand Claudio de Conto, General Manager Administration and Control, Pirelli S.p.A, Italy Jean-Louis Lebrun, Partner and Chairman of the Supervisory Board, Mazars, France Click for Press Release (PDF 56k). Full list of IFRIC Members.

10 June 2005: Model financial statements: Australian IFRSs equivalents
We have posted model financial reports designed by Deloitte (Australia) to assist clients, partners, and staff in preparing financial reports that conform to the Corporations Act 2001 for reporting periods beginning on or after 1 January 2005. Annual, half-year, and concise financial reports prepared in respect of reporting periods beginning on or after 1 January 2005 must be prepared in accordance with Australian equivalents to International Financial Reporting Standards (A-IFRSs). This model provides an illustrative example of the first annual, half-year, and concise financial reports to be prepared by Australian reporting entities on transition to A-IFRS. The model financial reports include an:

10 June 2005: Comment letters on IFRIC D15 posted
The IASB has posted on its public website the comment letters received on IFRIC Draft Interpretation D15: Reassessment of Embedded Derivatives.

10 June 2005: Australian Accounting Alert on transition to A-IFRSs
Deloitte (Australia) has published an Australian Accounting Alert covering a new Australian interpretation, Alert 2005/04 Compliance with AASB 1 – SPFRs and Small Proprietary Companies (PDF 40k). AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards should be applied when an entity prepares its first financial report using A-IFRSs. Many entities in Australia are not required to prepare a financial report (for example, small proprietary companies), and those that do prepare a financial report are often permitted to prepare a special purpose financial report (SPFR) on the basis that the entity is not a reporting entity. However, over time an entity's circumstances may change, requiring compliance with A-IFRSs. For these entities, the question arises as to when they should comply with the transitional provisions of AASB 1. This Accounting Alert addresses:

• preparation of a SPFR under the Corporations Act
• change in status from a small proprietary company to a large proprietary company

9 June 2005: Israel plans to replace national GAAP with IFRSs in 2008
An agreement has been reached among the Israel Accounting Standards Board, the Institute of Certified Public Accountants in Israel, and the Israel Securities Authority to adopt International Financial Reporting Standards in full, in place of national accounting standards, effective in 2008. In recent years (since 1999) Israeli national accounting standards have been developed on the basis of International Accounting Standards. The change to full IFRS adoption is intended to enhance the worldwide acceptability and understandability of the financial reporting of Israeli companies. In the United States, Israel has more companies registered with the SEC than any foreign country except Canada (over 100 companies). Israel has taken this step in anticipation that non-US companies registered with the SEC will be able to report solely in IFRSs without the US GAAP reconciliation. Many Israeli companies are also listed on European exchanges and, after 2007, those companies will no longer be allowed to use national GAAP for their European regulatory reporting. Additional details will be posted when a formal press release is available.

9 June 2005: 2005 bound volume of IFRSs now available
The 2005 Bound Volume of International Financial Reporting Standards is now available for purchase from the IASB On-Line Bookshop. BV 2005 includes the full text of all International Financial Reporting Standards, International Accounting Standards, Interpretations, and IASB-issued supporting documentation (Bases for Conclusions, Implementation Guidance, and Illustrative Examples) extant at 1 January 2005. This single volume also includes the IASB Framework for the Preparation and Presentation of Financial Statements, the Preface to International Financial Reporting Standards, an updated Glossary of Terms, and a comprehensive index. Price of the printed bound volume is £58. Editorial updates will be posted periodically to the IASB's website. Also available:

9 June 2005: EFRAG invites comments on three draft letters
The European Financial Reporting Advisory Group (EFRAG) has finalised its preliminary views on three proposals relating to IASB and IFRIC operations. Comments are requested by 4 July 2005:

• Memorandum of Understanding on the Role of Accounting Standard-Setters and their Relationships with the IASB (Word file 37k)
• Due Process of IASB Draft Handbook of Consultative Arrangements
• IFRIC – Review of Operations

8 June 2005: IASB project timetable updated

We have updated our IASB Project Timetable to reflect recent pronouncements and other publications by the IASB and discussions at recent Board meetings.

7 June 2005: IASB European 'roadshows' launched
The IASB has launched a series of 'roadshows' in 17 European countries over the next five months. The roadshows are intended to provide an opportunity for leading members of the business community in those countries to discuss the Board's work programme and priorities with IASB members and staff. Click for Press Release (PDF 61k).

7 June 2005: IASB will meet in London 22-23 June 2005
The IASB will meet at its offices in London on Wednesday and Thursday, 22-23 June 2005. The announced agenda for the meeting is below. On Friday 24 June the Board is sponsoring a Convergence Conference.

22-23 June 2005, London Wednesday 22 June 2005 Financial Instruments – Convertible Bonds Issued in a Foreign Currency Performance Reporting IASB Technical Corrections Policy IAS 21 – Net Investment in a Foreign Operation – Paragraph 32 of IAS 21 Conceptual Framework – Qualitative characteristics Revenue Recognition – Project strategy Thursday 23 June 2005 Management Commentary – The Board will discuss a revised draft of the Management Commentary Discussion Paper with a view toward releasing it as an IASB publication setting out the preliminary views of the project team rather than the Board. Short-term Convergence – Segment Reporting Proposed Amendments to IFRS 6 and IFRS 1 – Analysis of comment letters on the exposure draft Short-term Convergence – Income Taxes IFRIC Update

7 June 2005: Recent remarks of SEC Chief Accountant
US SEC Chief Accountant Donald T. Nicolaisen spoke last week at a conference sponsored by the SEC Financial Reporting Institute of the University of Southern California. His principal themes were:

• Section 404 of the Sarbanes-Oxley Act – internal controls
• Reducing the complexity of financial reporting
• Expected issuance before 30 June 2005 of the 'off-balance sheet report' required by the Sarbanes-Oxley Act

7 June 2005: IFRIC July meeting dates are changed
The meeting of the International Financial Reporting Interpretations Committee (IFRIC) that had been scheduled for Thursday 28 July and Friday 29 July has now been rescheduled to Monday 1 August and Tuesday 2 August 2005, at the IASB's offices in London.

7 June 2005: More comment letters posted: mineral exploration
The IASB has posted on its public website the Comment Letters on the ED of Proposed Small Amendments to IFRS 6 and IFRS 1 (comment deadline was 3 June, 16 letters received)

6 June 2005: Comment letters on service concessions, SMEs
The IASB has posted on its public website the following sets of comment letters:

• Letters on IFRIC D12, D13, and D14 Service Concessions (comment deadline was 31 May, 63 letters received)
• Responses to Questionnaire on Possible Modifications of Recognition and Measurement Principles for SMEs (comment deadline is 30 June; 14 letters received through 2 June; additional letters will be posted as received)

6 June 2005: CESR 'call for evidence' on historical financial information
The Committee of European Securities Regulators (CESR) has issued a Call for Evidence (PDF 131k) inviting comments on what additional financial information should be included in a prospectus when the issuer has not prepared its historical financial statements as a single business entity during the whole period for which historical financial information is required under the EC's Prospectus Regulation 809/2004 of 29 April 2004. Comment deadline is 20 June 2005. Examples of such circumstances include:

4 June 2005: Report from the IFRIC meeting 3 June 2005
The International Financial Reporting Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday 2-3 June 2005. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the second day of the meeting.

Notes from the IFRIC Meeting 3 June 2005

Convertible Instruments Denominated in a Foreign Currency At its April meeting, the IFRIC addressed the classification of the written option in a convertible bond denominated in a foreign currency. Such bonds allow the holders to convert the bond into a fixed number of the entity's equity instruments in exchange for a fixed amount of foreign currency. The IFRIC had agreed in April that the result of applying IAS 32 to this fact pattern would be to classify the entire instrument as a liability. At the June meeting of IFRIC, the IFRIC considered draft amendments to IAS 32 that it could recommend to the Board to enable the appropriate classification of the equity element of the instrument. Some IFRIC members believed this classification is possible under existing IAS 32. However, a clear majority believed this was not possible and that the standard should be amended to require such classification. The IFRIC members debated the draft wording and requested some amendments. The proposed amendment will be put to the IASB at its June meeting. The IFRIC were advised that IASB members are cognisant of the need for timely resolution of this issue. The IFRIC members also agreed that it was not appropriate for wording to be published in the IFRIC Update explaining the IFRIC's reasons for not taking this onto the agenda – this topic is clearly on the agenda, albeit that the expected outcome is an amendment to a standard rather than an IFRIC interpretation. The IFRIC noted that as a result of its publication in the April 2005 IFRIC Update of their view that IAS 32 currently requires classification as a liability, companies in certain jurisdictions applying IFRS had, for their March quarterly reporting, reclassified these instruments as liabilities in compliance with that view. The chairman reminded the public that non-authoritative publications such as the IFRIC Update and the IASB Update should not be read in the same way as final standards and interpretations. The Update publications reflect the progress of an issue through the due process and should not be read or interpreted as being the final views of either the IASB or the IFRIC. Reasons for Rejection IAS 39: Accounting for Securities Sold but not yet Purchased ('Short trading') The IFRIC had previously published draft reasons for not accepting this item onto the agenda in the April 2005 IFRIC Update. The IFRIC had previously agreed that as part of the process for enabling the public to comment on reasons for not taking items onto the agenda, if letters were received as a result of the IFRIC Update these would be given due consideration. A letter from a constituent on this topic was tabled at the meeting, and the IFRIC agreed to defer consideration of this item until the next meeting to allow IFRIC members to explore fully the implications of the content of that letter. The public were reminded that if comments do arise as a result of draft reasons for not taking an item onto the agenda published in the IFRIC Update, those comments should be received by the staff as soon as possible, to enable them to be taken into account when the wording is finalised at the following IFRIC meeting. A dedicated email address will be set up for this purpose. Constituents should not address their concerns to particular individuals within the IASCF organisation; rather they should use the dedicated email address. Inclusion of Value Added Tax (VAT) in Cash Flow Statements The IFRIC reconsidered revised wording on this topic, which had been prepared overnight. After a short discussion it emerged that not all IFRIC members were in agreement as to whether a separate line item for VAT-related cash flows should be permitted under the existing standard. Accordingly, while the IFRIC are in agreement that cash flows from customers and to suppliers cannot be shown net of the VAT, they are unable to finalise wording for not taking this issue onto the agenda, until the second issue has been resolved, and acknowledged in the course of the meeting that the topic may indeed be added to the agenda. This will be discussed at the next IFRIC meeting. IAS 19 - Distinction Between Defined Benefit and Defined Contribution Plans In the course of analysing the comments received on IFRIC D9 Employee Benefits with a Promised Return on Contribution or Notional Contributions, staff noted that some confusion existed amongst constituents as to the appropriate distinction between defined benefit and defined contribution plans. This confusion was brought to the attention of the IFRIC at its April meeting, where the IFRIC agreed that staff should consider the development of appropriate guidance on distinguishing between the two types of plan, for possible inclusion in the finalised version of D9. Staff prepared the following proposed guidance: The distinction between a defined contribution and defined benefit arrangement lies in whether or not the employer has an obligation in respect of future risks attached to the benefits earned as at the balance sheet date. In order to determine whether such an obligation exists, one should make reference to the following three conditions: Condition 1: the employee stays in employment; Condition 2: retains plan membership Condition 3: stops accruing future benefits in the plan If the employer has no obligation in respect of future risks in respect of the earned benefit when the three conditions apply, then the plan is a defined contribution plan. Otherwise, it is defined benefit. (Extract from paragraph 3.46 of Observer Paper, Agenda Item 10) The IFRIC noted that the third criteria should refer to accruing service related benefits. That is, in some circumstances, an employee might reach the maximum pensionable service period (such as 25 years) but might still accrue additional benefits in the form of adjustment of the pension related to adjustments to that employee's salary. In such a case the plan would be a defined benefit scheme. The IFRIC discussed briefly various types of plans such as career average salary plans and current salary plans, and whether plans which are economically the same should be accounted for differently. Staff briefly explained the economic differences in the various types of plan. The IFRIC discussed whether the existence of a compulsory benefit resulted in automatic classification as a defined benefit scheme. The IFRIC agreed that such classification would not be automatic. The IFRIC discussed some proposed wording on the impact of materiality. They agreed that it is inappropriate to describe a defined contribution scheme as having an immaterial defined benefit element, rather the analysis should be that there are two separate schemes, and the defined benefit scheme is not material. In addition the IFRIC considered whether an unfunded scheme should automatically be classified as defined benefit, and noted this would have possible implications for year-end accruals. The IFRIC agreed that guidance on the difference between defined benefit and defined contribution plans should not be included in the final interpretation resulting from D9. The IFRIC agreed to address this as a separate project and to consider a project plan for this project out of session. The IFRIC agreed that the three conditions proposed by staff were a step in the right direction, and further debate is necessary. Furthermore, consideration of the following issues would be required: Whether the existence of a compulsory benefit automatically results in classification as a defined benefit scheme; Worked examples explaining average salary plans; Appropriate discussion of the impact of materiality on classification; Whether an unfunded plan is automatically considered defined benefit; and The interaction of the defined benefit/defined contribution distinction with insured benefits. IFRIC D9 Employee Benefits with a Promised Return on Contributions or Notional Contributions At its April meeting the IFRIC had considered responses to IFRIC D9. In analysing those responses, it had been noted that the proposed measurement model in D9 was not entirely consistent with IAS 19. The fixed/variable approach contained in that document was not only inconsistent with IAS 19, but not easily applied in practice. A deconstruction approach was recommended to the April IFRIC meeting but rejected by that meeting. At this meeting the staff noted that an ideal solution to this problem would come in the form of an amendment to IAS 19 that would enable the pension expense to be recognised appropriately for such schemes. However, a compromise proposal would be to use a deconstruction approach in accounting for the defined benefit analysis, and ensure recognition of the pension expense which would be recognised under IAS 19. The IFRIC agreed to consider this approach and the approach involving a change to the standard, in detail, at its next meeting. They agreed that as well as examining the effect of the different methods, they would need to analyse the nature of the changes to IAS 19 that would be required to operationalise the use of the methodologies. The IFRIC noted that its original conclusion, that these items are defined benefit schemes, was still correct, albeit they have been unable to finalise an appropriate measurement model. This summary is based on notes taken by observers at the IFRIC meeting and should not be regarded as an official or final summary. Scroll down for Notes from 2 June 2005.

4 June 2005: Summary of 20 May 2005 ARC meeting
The Accounting Regulatory Committee, which advises the European Commission on endorsement of individual IFRSs and IFRIC Interpretations for use in Europe, has released the Summary Record of its 20 May 2005 Meeting (PDF 36k). At that meeting the ARC recommended endorsement of IFRS 6, IFRIC Interpretations 4 and 5, IFRIC's recent amendment to SIC 12, and the IASB's recent amendment to IAS 19, and related consequential amendments. The ARC's next meeting is scheduled for 8 July 2005.

3 June 2005: Congressman Cox nominated as SEC chairman

US President Bush has nominated California Congressman Christopher Cox to be the next chairman of the US Securities and Exchange Commission, replacing William H. Donaldson, who resigned effective 30 June 2005. Senate confirmation is required. Congressman Cox was a co-sponsor of H. CON. RES. 98 in 1993 opposing the US Financial Accounting Standards Board's proposal on employee stock options. He is an original co-sponsor of H.R. 913 in the current Congress that would block the implementation of FASB Statement 123R Share-Based Payment. He supported the Sarbanes-Oxley Act of 2002.

3 June 2005: Comment deadline on IFRS 6 amendment
Reminder that today is the deadline for comments on the IASB's proposed Limited Amendment to IFRS 6 and related amendment to IFRS 1.

3 June 2005: Report from the IFRIC meeting 2 June 2005
The International Financial Reporting Interpretations Committee (IFRIC) is meeting at the IASB's offices in London on Thursday and Friday 2-3 June 2005. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the first day of the meeting.

Notes from the IFRIC Meeting 2 June 2005

Administrative matters Robert Garnett, IASB member, chaired the meeting. IAS 19 – Effect of Minimum Funding Requirements on the Asset Ceiling The IFRIC considered a staff proposal as to how the existence of a minimum funding requirement (MFR) would affect the asset ceiling as determined in accordance with IAS 19. This item was added to the agenda on the recommendation of the IFRIC agenda committee at that committee's February meeting. The staff proposed that a draft interpretation be developed stating that an asset should be recognised for any excess of an IAS 19 surplus over an MFR surplus (or deficit) only to the extent that: (a) the assumptions underlying the MFR measurement are not current best estimates and it is expected that those assumptions will change to eliminate the deficit or increase the MFR surplus; or (b) it is a reasonable assumption that, in the jurisdiction of the plan in question, any surplus existing on the wind up of the plan will revert to the entity, taking into account all costs associated with a wind-up. To the extent that an asset is recognised on this assumption, that fact shall be disclosed in the financial statements; or (c) it is a reasonable assumption that in the jurisdiction of the plan in question, in a gradual settlement of the plan at the end of its life, any surplus in the plan will revert to the entity. To the extent that an asset is recognised on this assumption, that fact shall be disclosed in the financial statements. It was noted that the key questions in the mind of constituents are 'what is the interaction between the minimum funding requirements and the plan asset recognition rules' and 'what is meant by reduction in future contributions'. It was further noted that there are questions both of recognition (whether a plan asset could be recognised) and measurement (how it is measured when an MFR exists.) Members expressed some concerns that the proposal in (a) above would result in recognition of the effect of changes in rates (for example a regulatory change in the minimum funding requirement) that are neither enacted nor substantively enacted at balance sheet date. The staff clarified that the intention of this paragraph would be too allow the recognition of changes where the MFR will change as a result of past events (for example rate changes) that have already occurred at the balance sheet date. The IFRIC noted that where there is no scope for the entity to ever receive the excess created by the MFR back, this is an additional cost to the entity of providing the scheme. Where there is some scope to receive the excess back (for example on a gradual basis as the scheme winds down and the regulators are satisfied as to the adequacy of plan assets absent the MFR) then the MFR should not be incorporated into the IAS 19 calculations. In any case it was acknowledged that the existence of the MFR does result in an economic restriction as the entity may not be able to get the returns that they would if the assets were not tied up in the plan. It was agreed that the impact of MFRs would vary significantly from one jurisdiction to the next. The IFRIC agreed that the staff should further develop the principles they recommend, amplifying and clarifying the wording. The IFRIC also agreed that to the extent possible the language should be consistent with IAS 19, and particularly that the phrase 'reasonable assumption' is inappropriate. The IFRIC briefly considered whether an additional liability should be recognised when an MFR liability exists over and above the IAS 19 deficit. The IFRIC agreed that the resolution of this issue would flow from the model to be developed in respect of plan assets. The IFRIC briefly considered the impact of MFRs in a business combination (because, arguably, the amount an entity would pay for another entity with a scheme subject to an MFR, is different to what the entity would pay for another identical entity without an MFR) and agreed that this would most appropriately be dealt with in the IASB's project on Business Combinations Phase 2. At its next meeting the IFRIC will consider worked examples of the impact of MFRs on plan assets, together with a paper that further develops the principles discussed above. IFRIC 3 Emission Rights The IFRIC discussed two papers: A proposed amendment to IAS 38 Intangible Assets that would create an additional category of intangibles measured at fair value through profit and loss, and A proposal from EFRAG as to how hedge accounting could be used to resolve the mis-match issues created by IFRIC 3. At its February meeting the IFRIC had agreed to prepare a limited amendment to IAS 38, despite the preference of some members for the revaluation model contained in that standard to be completely revisited. It was noted that the effect of the proposed amendment was to move the gains and losses into the same place (profit and loss); however the timing might still have a mismatch because of the at the beginning of the period an asset exists, for which fair value gains and losses must be recognised, however the corresponding liability builds up over the period. EFRAG presented a paper proposing to include emission rights within a hedge accounting model, that would use the principles of cash flow hedging to deal with this issue. There was support from a number of IFRIC members; however, many expressed reluctance to take the project further until the IASB had been explicitly consulted as whether they considered this an appropriate project to pursue. It was noted that the amendment to IAS 38 in itself is insufficient to alleviate the concerns raised by EFRAG, but is not incompatible with the EFRAG proposals. Accordingly, the amendment to IAS 38 would solve part of the problem for entities that do not pursue hedge accounting. It was noted that if the hedging proposal was used, it would be difficult to mandate hedging (as entities could fail eligibility for hedging on a number of criteria, particularly forecast usage), and therefore this might open up more options. It was agreed that in principle hedge accounting should be required where certain facts and circumstances exist, with a default treatment being required if an entity fails to meet the hedge accounting requirements. The IFRIC agreed that the staff should continue with the proposal to amend IAS 38, subject to satisfying themselves that the amendment is necessary irrespective of whether the hedging methodology is introduced, and that the result of such an amendment is not to back IFRIC into a corner such that their options for introducing the hedging rules are limited. Staff agreed to check with the financial instrument team whether it was appropriate to use cash flow hedging during the period when the entity has only the allowances, and fair value hedging after the emissions have been made. The IFRIC noted that there are other issues, such as the appropriate initial recognition date, however did not seek to resolve these issues at this time. IAS 12 and Finance Leases – Draft reasons for rejection In the April IFRIC Update, the IFRIC published a proposed wording for the rejection of this issue from the IFRIC agenda, which included a comment as to the appropriate technical outcome. A number of constituents had expressed discomfort at this. The IFRIC agreed that the final wording for the reasons for rejection should merely say that whilst the IFRIC has noted there is diversity in practice, this will not be taken onto the agenda as it will be resolved by the Board's short term convergence project on income taxes. As the IFRIC themselves are not in agreement as to the appropriate technical conclusion under existing IAS 12, no mention should be made as to the appropriate answer. Impairment of an Equity Security – Draft reasons for rejection The IFRIC discussed a draft reason for rejection of this issue. It was noted that the matter was discussed at the April 2005 meeting and the intention to reject it from the agenda was published in the IFRIC Update, and no adverse comments from constituents had been received. The IFRIC agreed, subject to certain amendments, that the draft reasons for rejection (which was not made available to observers) should be published in the IFRIC Update. IAS 19: Prioritisation of Outstanding Issues The staff noted that there were 8 outstanding issues on the IFRIC agenda in relation to IAS 19 Employee Benefits, and suggested an order of priority in which they should be addressed. The staff had classified the issues as follows: Group 1: Issues with widespread divergence for which IFRIC has begun or is about to begin its deliberations D9 - plans with a promised return on contributions Distinction between defined benefit and defined contribution arrangements Impact of minimum funding requirement on the asset ceiling Group 2: Items with widespread relevance, but less expected impact than Group 1 Pension promises based on performance hurdles Issues related to the non-consolidation model and the definition of plan assets Group 3: Issues considered to be important which have been added to the agenda, but are less widespread and significant than groups 1 and 2 Changes to a plan caused by government Treatment of employee contributions Treatment of death-in-service and other risk benefits It was noted that the non-consolidation aspect of the issue in Group 2 does need to be worked up, but may not actually require an IAS 19 expert to staff this project. Some IFRIC members expressed surprise that the changes to a plan caused by the government was not considered a high priority, given the recent high profile examples in which local regulators had given different views in different countries. The IFRIC noted that some of these issues were added to the agenda at a time when the IFRIC agenda committee did not have a formal process for publication of the rejection of issues. The issues in groups 2 and 3 would be brought back to the agenda committee to determine whether they still meet the criteria for addition onto the agenda, and if not, whether constituent concerns could be resolved via the new process for formalising the rejection of issues. Rejection of Issues No observer papers were provided for this session, and accordingly the impact of some aspects of the discussion was difficult to record. However, the IFRIC's policy of publishing their draft and final reasons for rejection of issues in the IFRIC Update will result in this information being released into the public domain shortly after the meeting. It was noted that editorial amendments might be made to wording between the publication of the draft reasons for rejection, and the finalisation of those reasons, and that such amendments need not be explicitly drawn to the attention of readers of the IFRIC Update. Inclusion of Value Added Tax (VAT) in Cash flow statements The IFRIC agreed that the proposed wording for rejection, as published in the April 2005 IFRIC Update, did not directly answer the question posed, and accordingly should be redrafted to more clearly state that cash flows should not be reported net of VAT. Recognition of Operating Lease Incentives The IFRIC discussed the draft reasons for rejection, as published in the April 2005 IFRIC Update. After a short discussion it became apparent that a majority of IFRIC members were unconvinced as to the appropriateness of rejecting this item from the agenda, and accordingly the full IFRIC will consider the papers that were presented to the agenda committee in February at its next meeting. A process issue was noted, that in putting the draft wording on the table, and into the IFRIC Update, results in this being put into the public domain before IFRIC has had a comprehensive discussion on the matter. As the IFRIC are currently settling into this new process it was agreed to consider alternative methodologies which will enable all IFRIC members to comprehensively consider an issue (should they wish to do so) prior to the draft wording for rejection being published. Finance Leases of Finance Sub-Leases The wording for rejection of this issue, published in the April 2005 IFRIC Update was agreed. In summary that is, the requirements of IAS 17, together with the derecognition requirements of IAS 39 provide a clear answer to this issue and therefore it should not be added to the agenda. IAS 12: Carry forward of Unused Tax Losses and Tax Credits The wording for rejection of this issue, published in the April 2005 IFRIC Update was agreed. In summary that is, that this issue should not be taken onto the agenda as there is little evidence of widespread diversity in practice. IAS 12: Non-amortisable Intangible Assets After a short discussion of the draft wording for rejection of this issue, it became apparent that a majority of IFRIC members were unconvinced as to its appropriateness. The papers considered by the agenda committee will be considered by the full IFRIC at its next meeting. IAS 19: Determining the Appropriate Rate to Discount Employee Benefit Obligations The wording for rejection of this issue, published in the April 2005 IFRIC Update was agreed. In summary that is, synthetically constructed equivalents to high quality bonds are not acceptable for the purposes of determining a discount rate for use in accordance with IAS 19. However, 'in a country' might refer to a regional market to which the entity has access, provided that currency and the currency of the country were the same. This should not be taken onto the agenda because IAS 19 provides a clear resolution to this issue. IAS 39: Hedge Effectiveness Tests - Vacillations in Effectiveness/Timing of Tests The wording for rejection of this issue, published in the April 2005 IFRIC Update was agreed. In summary that is, that IAS 39 does not preclude redesignation, and there is insufficient evidence of diversity in practice for the IFRIC to take this item onto the agenda. IAS 1: Comparatives for Prospectuses The IFRIC considered draft wording for rejecting this issue, published in the April 2005 IFRIC Update, to the effect that this was a regulatory issue rather than something for IFRIC to consider. After a short discussion it emerged that IFRIC wanted this item taken off the table for this meeting so that it could be considered in more detail at a future meeting. IAS 1: Reference to Normal Operating Cycle The wording for rejection of this issue, published in the April 2005 IFRIC Update was agreed. The question raised was whether the normal operating cycle (if using other than twelve months) applied across all the entities in a group, or product group by product group. The IFRIC agreed not to take this on, as it is clear from the standard that the wording should be read in the singular and the plural, and the appropriate accounting should be determined with reference to the nature of the inventories in relation to the operating cycle. IFRIC D11 Changes in Contributions to Employee Stock Purchase Plans As a result of the IFRIC's deliberations on D11, the IASB had been asked to consider whether IFRS 2 should be amended. The IASB agreed to amend the Standard to clarify that: The cancellation or settlement provisions do not apply only when the entity has cancelled the scheme (that is cancellations by the employee are also caught by these requirements); and Vesting conditions are service or performance conditions. The IFRIC agreed that, in light of these amendments, a final interpretation arising from D11 was not considered necessary at this time; however, members would consider whether there are any related issues that will not be resolved that should be brought back to the IFRIC Agenda Committee. It was noted that the Board would consider whether re-exposure was necessary for these amendments – the IFRIC strongly recommended that the amendments should be exposed, together with a comprehensive basis for conclusions. Activities of Other Interpretive Bodies The IFRIC considered a paper in relation to the activities of other interpretive bodies, and confirmed the decision of the agenda committee not to add any of the items to the agenda. This summary is based on notes taken by observers at the IFRIC meeting and should not be regarded as an official or final summary.

3 June 2005: Over 240,000 e-learning downloads from IASPlus

As of 31 May 2005, over 240,000 Deloitte IFRS e-learning modules had been downloaded from IASPlus by people in over 150 countries. (The precise number was 241,282!) Deloitte's e-learning was launched at the end of January 2004. Many of the downloaded modules have multiple users because organisations are permitted to install them on their own servers for the internal use of their employees or students. In addition, tens of thousands of additional modules have been completed online and offline by Deloitte staff. You can always access IFRS e-learning without charge by clicking on the light bulb icon on the IASPlus home page. Thirty-three modules are now available.

2 June 2005: EFRAG staff comments on day 1 profit disclosures
EFRAG staff has submitted comments to the IASB on the drafting of "day 1 profit disclosures" to be included in the forthcoming IFRS 7 Financial Instruments: Disclosures. To meet the deadline for comments, EFRAG's Letter (PDF 16k) was not discussed by EFRAG's Technical Experts Group and was not subject to a public consultation process. It is, however, based on advice from EFRAG's Financial Instruments Working Group.

2 June 2005: New Global Offerings Services newsletter

We have posted the May 2005 Edition of the Deloitte Global Offerings Services Newsletter (PDF 140k). Global Offerings Services is a global team of Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. Past GOs Newsletters are Here.

2 June 2005: Deloitte letter on day 1 profit disclosures

Deloitte has submitted a Letter of Comment on IASB's Proposed Drafting for Day 1 Disclosures (PDF 34k). The proposed drafting would be included in IFRS 7 Financial Instruments: Disclosures, scheduled for release later this month.

2 June 2005: FASB converges treatment of accounting changes
The US Financial Accounting Standards Board has issued Statement No. 154 Accounting Changes and Error Corrections, which requires retrospective application to prior periods' financial statements of a voluntary change in accounting principle unless it is impracticable. The previous FASB standard had required that most voluntary changes in accounting principle be recognised by including in net income of the period of the change the cumulative effect of changing to the new accounting principle. Excerpt from FASB News Release (PDF 20k):

2 June 2005: SEC Chairman Donaldson will step down

US Securities and Exchange Commission Chairman William H. Donaldson, 74, has resigned effective 30 June 2005. He was appointed in 2003. "When I assumed the Chairmanship of the Securities and Exchange Commission roughly two and one-half years ago, public confidence was severely undermined, reflecting the corporate and financial scandals that had shaken the nation. Thanks to the dedicated efforts of the many professionals who serve at the SEC, this period has represented an extraordinarily active and effective time for the Agency. It may well be remembered as the most consequential and productive period in the Commission's history since its founding in 1934", Mr. Donaldson said.

2 June 2005: New Accounting Roundup newsletter posted

We have posted the 31 May 2005 Edition of Accounting Roundup (PDF 1,534k) from Deloitte & Touche (United States). This issue includes:

• FASB developments - including a proposed GAAP hierarchy and decisions at FASB meetings on 21, 22, 27 April and 11, 17 May
• AICPA developments - including an exposure draft on the meaning of 'present fairly'
• SEC developments - including guidance on internal controls and announcement on release of staff response letters
• PCAOB developments - including guidance on audits of internal controls
• International developments - including IASB's proposed amendment to IFRS 6 and IFRIC D16 and D17

2 June 2005: Statistics database updated
We have updated our Database of Statistics that, we believe, provide clear evidence of the globalisation of the world's capital markets and of the need for global financial reporting standards.

1 June 2005: EFRAG proposed views on IFRICs 16 and 17
The European Financial Reporting Advisory Group has invited comments on its preliminary views on IFRIC D16 Scope of IFRS 2 and on IFRIC D17 IFRS 2 – Group and Treasury Share Transactions. Comments are requested by 27 June 2005. You will find the draft letters on EFRAG's Website. Summaries of Draft Interpretations are Here.

1 June 2005: Challenges in adopting IFRSs
We have posted a presentation titled Learning the Language: Challenges Being Encountered in the Adoption of IFRS (PDF 32k) by Piet Hoogendoorn, Chairman of the Deloitte Touche Tohmatsu Board of Directors, at a conference in Dubai on 29 May 2005. In addition to discussing the challenges of IFRSs, such as interpretation, consistent application, enforcement, and education, Mr. Hoogendoorn reviewed the benefits of using IFRSs. An excerpt: