31 March 2005: New IFRIC member appointed
The IASC Foundation Trustees have appointed Shunichi Toyoda of NEC Corporation, Japan, to the International Financial Reporting Interpretations Committee (IFRIC). He will complete the remainder of the term of Junichi Akiyama, Tama University, Japan, who recently retired from the IFRIC. Mr Toyoda's term expires on 30 June 2006. Press Release (PDF 47k). List of IFRIC Members.

31 March 2005: EITF mining decision affects US IFRS filers
On 30 March 2005, FASB's Emerging Issues Task Force reached a consensus on the treatment of stripping costs incurred in open pit mines once production commences. Those costs are to be considered a variable production cost. Deferral of such costs on the balance sheet via a 'life of mine stripping ratio' is no longer permitted under US GAAP. Foreign companies that file with the SEC and use IFRS or other national GAAP, and that decide to retain the practice of deferring post-production stripping costs, will have to include an adjustment in their US GAAP reconciliation going forward. Pre-production stripping was not addressed by the EITF, so the general practice of capitalising such costs as part of mine development costs is not affected. For more information see EITF Issue No. 04-6 Accounting for Stripping Costs in the Mining Industry on FASB's Website.

31 March 2005: IFRIC D15 Reassessment of Embedded Derivatives

The International Financial Reporting Interpretations Committee (IFRIC) has released for public comment Draft Interpretation D15 Reassessment of Embedded Derivatives. IAS 39 Financial Instruments: Recognition and Measurement requires an entity, when it first becomes a party to a contract, to assess whether any Embedded Derivatives contained in the contract are required to be separated from the host contract and accounted for separately as derivatives under the standard. (An example of an embedded derivative is the conversion option that is part of an investment in convertible debt.) The two questions addressed in D15, and the proposed responses, are: Question: Does IAS 39 require assessment of whether an embedded derivative must be separated from the host contract only when the entity first becomes a party to the derivative contract or throughout the life of the contract? D15 Proposal: Make the assessment only when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract, in which case it is required. Question: Should a first-time adopter of IFRSs make its assessment on the basis of the conditions that existed when the entity first became a party to the derivatives contract, or those prevailing when the entity adopts IFRSs for the first time? D15 Proposal: Make the assessment based on the conditions that existed when the entity first became a party to the contract. To allow entities affected by the final interpretation enough time to change current practices, the proposed effective date for the interpretation is annual periods beginning on or after a date to be set at three months after the interpretation is finalised. Earlier application would be encouraged. Comment deadline on D15 is 31 May 2005. Click for Press Release (PDF 66k). The draft interpretation may be downloaded from IASB's Website (subscribers only until tomorrow).

31 March 2005: Financial reporting by insurance companies

Because of concerns that some insurance companies may have entered into reinsurance transactions for the purpose of manipulating capital and income, the New York State Insurance Department is requiring the chief executive officers of insurance companies it regulates to attest, under penalty of perjury, that with respect to cessions under any reinsurance contract: there are no separate written or oral agreements that would, under any circumstances, reduce, limit, mitigate, or otherwise affect any actual or potential loss to the parties under the reinsurance contract; and for each such reinsurance contract, the reporting entity has an underwriting file documenting the economic intent of the transaction and the risk transfer analysis evidencing the proper accounting treatment, which is available for review. Click for Press Release (PDF 13k) and Regulation (PDF 29k).

30 March 2005: SEC Staff Accounting Bulletin on Stock Options

The staff of the US Securities and Exchange Commission has issued Staff Accounting Bulletin 107 dealing with valuations and other accounting issues for share-based payment arrangements by public companies under FASB Statement 123R Share-Based Payment. For public companies, valuations under Statement 123R are similar to those under IFRS 2 Share-based Payment. SAB 107 provides guidance related to share-based payment transactions with nonemployees, the transition from nonpublic to public entity status, valuation methods (including assumptions such as expected volatility and expected term), the accounting for certain redeemable financial instruments issued under share-based payment arrangements, the classification of compensation expense, non-GAAP financial measures, first-time adoption of Statement 123R in an interim period, capitalisation of compensation cost related to share-based payment arrangements, accounting for the income tax effects of share-based payment arrangements on adoption of Statement 123R, the modification of employee share options prior to adoption of Statement 123R, and disclosures in Management's Discussion and Analysis (MD&A) subsequent to adoption of Statement 123R. One of the interpretations in SAB 107 is whether there are differences between Statement 123R and IFRS 2 that would result in a reconciling item: Question: Does the staff believe there are differences in the measurement provisions for share-based payment arrangements with employees under International Accounting Standards Board International Financial Reporting Standard 2, Share-based Payment ('IFRS 2') and Statement 123R that would result in a reconciling item under Item 17 or 18 of Form 20-F? Interpretive Response: The staff believes that application of the guidance provided by IFRS 2 regarding the measurement of employee share options would generally result in a fair value measurement that is consistent with the fair value objective stated in Statement 123R. Accordingly, the staff believes that application of Statement 123R's measurement guidance would not generally result in a reconciling item required to be reported under Item 17 or 18 of Form 20-F for a foreign private issuer that has complied with the provisions of IFRS 2 for share-based payment transactions with employees. However, the staff reminds foreign private issuers that there are certain differences between the guidance in IFRS 2 and Statement 123R that may result in reconciling items. [Footnotes omitted] Click to download: SEC Press Release (PDF 30k) Staff Accounting Bulletin 107 (PDF 362k) List of Differences Between Statement 123R and IFRS 2

29 March 2005: March 2005 edition of EITF Roundup
We have posted the March 2005 Edition of EITF Roundup (PDF 148k), which provides an overview of the issues discussed, consensuses reached, and administrative matters discussed at the 17 March 2005 meeting of FASB's Emerging Issues Task Force. You will find past issues Here.

29 March 2005: Survey on extended use of IFRSs in the EU

The European Commission has updated its survey of the 25 EU member states and the 3 EEA member countries concerning their plans for the following four options on use of IFRSs that are permitted under the EU Accounting Regulation: Require or permit IFRSs for unlisted companies Require or permit IFRSs in parent company (unconsolidated) financial statements Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007 Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007. Here is an overview of the latest findings: EC Survey on Extended Use of IFRSs Use of IFRSs in the separate company financial statements of listed companies: 13 countries will permit: DK*, FI, DE**, IE, LU, NL, PT***, UK, NO, IS, LI, HU**, PL *required after 2009; **statutory accounts that conform to national GAAP are also required; ***except banks 9 countries will require: GR, IT*, CZ, CY, EE, LT, MT, SQ, SI *except insurance 5 countries will prohibit: AT, FR, ES, SE, LV 1 country undecided: BE Use of IFRSs in the consolidated statements of unlisted companies: 24 countries will permit: AT, BE, DK, FI, FR, DE, GR, IT*, IE, LU, NL, PT, ES, SE, UK, NO, IS, LI, CZ, CY, EE, HU, PL, SI *except small 6 countries will require: LV*, LT*, MT, PL*, SQ, SI* *for banks only 2 countries will prohibit: LV*, LT* *for other than banks Defer IFRSs to 2007 for companies with only listed debt securities: 13 countries will defer: AT, BE, DK*, FI, FR, DE, LU, ES*, SE, NO, IS, HU, PL *no deferral for banks 15 countries will not defer: all others Defer IFRSs to 2007 for companies listed overseas using a non-EU GAAP: 6 countries will defer: AT, BE, DE, LU, NO, IS 22 countries will not defer: all others In some cases, the positions noted above are leanings that are not yet finalised. For details, click to download Table on Use of IFRS Options 28 EU Member and EEA States at 17 January 2005 (PDF 40k)

29 March 2005: CFA Institute supports FASB and SEC on stock options
In a letter to the chairs of the US SEC and FASB, the president of the CFA Institute urged those organisations "to proceed with the planned implementation of the new stock option expensing rules as embodied in FAS 123(R).... Any argument that stopping or delaying the expensing requirement is somehow good for investors is pure nonsense. It simply extends the practice of improperly understating compensation expense." With regard to measurement issues, the letter cites the successful implementation of IFRS 2:

28 March 2005: Eleventh UK webcast update on transition to IFRSs
The Deloitte London 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 eleventh webcast was run on Thursday 24 March 2005 and focused on issues affecting whether to adopt IFRSs for entity financial statements (as permitted by UK law) and the impact of the UK Accounting Standards Board's convergence programme for subsidiaries and other companies that continue with UK GAAP. 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.

24 March 2005: IAASB issues four exposure drafts
The International Auditing and Assurance Standards Board (IAASB) has invited comments on exposure drafts of four proposed International Auditing Standards (ISAs). The EDs propose new guidance designed to enhance the quality of group financial statement audits, independent auditors' reports, and communications between auditors and those charged with governance. Titles of the documents, which may be downloaded from IAASB's Website, are:

• Proposed ISA 600 (Revised), The Audit of Group Financial Statements.
• Proposed ISA 260 (Revised), The Auditor's Communication with Those Charged with Governance.
• Proposed ISA 705, Modifications to the Opinion in the Independent Auditor's Report.
• Proposed ISA 706, Emphasis of Matter Paragraphs and Other Matters Paragraphs in the Independent Auditor's Report (derived from ISA 701, Modifications to the Independent Auditor's Report).

24 March 2005: Special edition of Deloitte's Audit Committee Brief
In a news story dated 6 January 2005 we reported that Financial Executives International had published a list of the top 10 financial reporting challenges for 2005. To assist financial executives and audit committees in addressing those issues, Deloitte & Touche LLP (USA) has prepared a summary, with active hyperlinks, of Deloitte & Touche and Other Resources for Addressing Those Issues (PDF 288k). Note that while the list of challenges is written primarily in a US financial reporting context, nearly all of the challenges relate to IASB projects as well:

23 March 2005: Przewodnik po MSSF 1 (Guide to IFRS 1 in Polish)

Deloitte has published the Polish translation of our popular guide to IFRS 1 First-time Adoption of IFRSs. As with the English language version, the guide in Polish includes: A summary of IFRS 1. Specific issues related to first-time adoption. Questions and responses. A disclosure checklist. Click here to download the English version of First-time Adoption: A Guide to IFRS 1 (PDF 2,506k, August 2004, 104 pages). Also, 300,000 copies of the Polish translation are being inserted in CD ROM format in the 23 March 2005 issue of the biggest Polish daily newspaper Rzeczpospolita.

Deloitte opublikowal polskie wydanie popularnego przewodnika po MSSF 1. Podobnie jak w wersji angielskiej, polskojezyczny przewodnik zawiera: Podsumowanie postanowien MSSF 1. Kwestie szczególowe zwiazane z pierwszym zastosowanie MSSF. Pytania i odpowiedzi. Liste kontrole prezentacji i ujawnien. Kliknij, aby sciagnac Przewodnik po MSSF 1. Zastosowanie MSSF po praz pierwszy (PDF 1,426k, marzec 2005, 118 stron). Polskie wydanie przewodnika ukazalo sie równiez w wersji CD ROM wraz z wydaniem Rzeczpospolitej w dniu 23 marca 2005 roku.

23 March 2005: EFRAG seeks comments on two drafts

The European Financial Reporting Advisory Group (EFRAG) has finalised its preliminary views on two subjects: IFRIC D12-D14 Service Concession Arrangements - draft comment letter The Fair Value Option - draft endorsement advice

The drafts may be downloaded from EFRAG's Website. Comments on both documents should be submitted to EFRAG by no later than 29 April 2005.

23 March 2005: IFRIC will meet 31 March-1 April

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 31 March and Friday 1 April 2005. The planned agenda for the meeting is as follows: Agenda of the IFRIC Meeting 31 March-1 April 2005 Thursday 31 March 2005 IFRIC 3 Emission Rights – Possible approaches for revision of IAS 38 IFRIC D9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions – Comment letter analysis IAS 19: Effect of Minimum Funding Requirements on Asset Ceiling IFRIC D6 Multiemployer Plans IAS 11: Combining and Segmenting Contracts Friday 1 April 2005 IAS 39: Impairment of an Equity Security IAS 39: Cross Currency Convertible Bonds IFRS 2: Treasury Share Transactions and Group Transactions IFRIC D11 Changes in Contributions to Employee Share Purchase Plans (ESPPs) IFRIC D10 Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment Agenda Committee: Issues Proposed for Rejection Activities of Other Interpretive Bodies

22 March 2005: Agenda project pages are updated

We have updated the following agenda project pages to reflect discussions and decisions at the Board's March 2005 meeting. Accounting Standards for Non-Publicly Accountable Entities Business Combinations II - Purchase Method Procedures Convergence of IFRSs and US GAAP: Financial Instruments Convergence of IFRSs and US GAAP: Income Taxes Convergence of IFRSs and US GAAP: Segment Reporting Financial Instruments: Disclosures Financial Instruments: Fair Value Option Financial Instruments: Puttable Instruments Financial Guarantees Contracts and Credit Insurance IFRIC: Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies Liabilities and Equity

22 March 2005: IFAC Board highlights need for IFRSs for SME
At its meeting last week, the Board of the International Federation of Accountants (IFAC) agreed to launch new initiatives to meet the needs of developing nations, including reinforcement of the need for International Financial Reporting Standards that can be effectively implemented for developing nations, particularly by SMEs. Click for Press Release (PDF 70k).

22 March 2005: Notes from IASC Foundation trustees meeting

The Trustees of the IASC Foundation met in London on 18 March 2005. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting. Although the IASB and IFRIC have adopted a policy of making their agenda papers available to observers at their meetings, the IASC Foundation has not yet adopted such a policy, making the discussion sometimes a bit difficult to follow, with possible adverse effects on the notes below. IASC Foundation Trustees' Meeting 18 March 2005, London General At the June meeting, IASB Member James Leisenring will do a presentation about the benefits of a conceptual framework, why it is necessary, and why the current one needs to be updated for developments in accounting theory over the past 20 years. Review of IASB due process The IASCF Trustees' Procedures Committee commended the IASB's proposed 'procedures handbook' to the Trustees. This handbook will be exposed for public comment, hopefully by the beginning of April 2005. The Board intends to comply with the procedures set out in the handbook in the meantime. Standards Advisory Council (SAC) The SAC will be reduced to something between 35 and 40 members Membership will be refocused to allow SAC to concentrate on strategic, rather then technical issues (most likely fewer technicians and more analysts and preparers). Chairman (not a member of the IASB, Trustee, or staff) will be appointed by the Trustees. Chairman will be a half-time salaried position. The Trustees' Nominating Committee hopes to have the chair (and possibly also a vice-chair) and new SAC composition ready for consideration at the Trustees June meeting Many of the changes proposed originated from the SAC's own review of operations. International Financial Reporting Interpretations Committee (IFRIC) Several Trustees expressed concerns about the interpretation process. Some of these concerns were alleviated when the Board's involvement in approval was described. The results of the IFRIC review of operations, including the enhancements to its process will be documented and exposed for public comment. As IFRIC is a standing committee of the IASB, it is likely that the final operating procedures document will be included in the IASB's procedures handbook. Constitution review General A new sub-paragraph will be added regarding the necessity to take into consideration the needs of SMEs in developing standards. The proposal to increase the number of Trustees from 19 to 22 was accepted. After considerable discussion, the proposed geographic distribution of Trustees into six North America, six Europe, six Asia/Oceania, and four others was accepted. However, this decision is subject to confirmation in June to allow for comment from the European Commission. The Trustees are likely to form a 'contact group' of interested organisations that would be involved in the process of nominating new Trustees and considering renewals. The committee would be consultative and would make recommendations to the Trustees, who would make the decisions. The Foundation chairman could serve for up to six years from date of appointment, even if that extends the chairman's term beyond six years total. Oversight After considerable discussion, the Trustees approved proposed Constitution paragraph that the Trustees will consider but not determine the IASB's technical agenda. Some Trustees commented that protecting the Board's independence was its most important role, but that the Trustees' involvement went a long way to providing 'independence with accountability'. Funding The Trustees agreed to revert to something similar to the existing wording ('assume responsibility') in Constitution. Composition of the Board The size of the IASB will remain at 14. The current provision for two part-time seats will remain. There should be no explicit geographical balance. The proposed easing of the professional background criteria was approved. IASB voting The proposed change was agreed: 9 votes out of 14 will be required (instead of the current simple majority) to approve an exposure draft, final IFRS, or IFRIC Interpretation. IFRIC No Constitutional changes were proposed, but the Trustees will expose the IFRIC's suggestions arising from its own review of operations and may propose changes later on. SAC The chair should be independent of the IASB and the staff. The chair should be a half-time salaried position. The Trustees will likely grant formal approval to the proposed SAC Charter at its meeting in June. This will be an 'operational' document, not part of the Constitution. This summary is based on notes taken by observers at the IASCF Trustees meeting and should not be regarded as an official or final summary.

22 March 2005: Notes from 17 March Board meeting

We have combined our notes from the IASB's 15-17 March 2005 meeting onto a Single Summary Page.

22 March 2005: Notes from fair value option round-table

On Wednesday 16 March 2005, the Board held a public round-table meeting on the fair value option. You will find our notes from the round-table meeting included in our March 2005 Board Meeting Summary Page.

22 March 2005: Notes from the 15 March Board meeting

We have combined our notes from the IASB's 15-17 March 2005 Board meeting onto a Single Summary Page.

15 March 2005: EFRAG letter on IASCF constitution review

The European Financial Reporting Advisory Group (EFRAG) has submitted its final letter to the Trustees of the IASC Foundation, under which the IASB operates, in response to the Trustees' proposals for changes to the IASCF Constitution. Click to Download the EFRAG Letter (PDF 96k). An excerpt: We have to express disappointment with the proposals for change put forward in the consultation paper. It appears that the Trustees have ignored many European concerns even though numerous proposals for change were put forward by many different European organisations. Many organisations proposed finding means to have European constituents more involved in one way or another, but the proposals seem to us to be more in the direction of diluting the European involvement. It is all the more disappointing, therefore, that the proposals contained within the Constitutional Review document are so marginal in their response to the ideas put forward during the preceding consultative round, including the open meetings held during the course of 2004. The key issues we see as needing improvement are: Accountability and public oversight of the Trustees and the Board. The governance structure. The composition of the Trustees and the Board.

15 March 2005: Ireland extends IFRSs to all companies

The Irish government has passed legislation that permits all companies in Ireland to use IFRSs in both their consolidated financial statements and their separate company financial statements. Click to download Statutory Instrument No. 116 (PDF 997k), which is the enabling legislation.

15 March 2005: Fair value option round-tables are tomorrow
The IASB has released a preliminary draft of a possible new approach to the Fair Value Option in IAS 39 for discussion at public roundtable meetings that the Board will conduct on Wednesday 16 March 2005 (tomorrow) at the Crowne Plaza City Hotel, 19 New Bridge Street, London, 8:30am-5:15pm. Although observer seats at the meeting are fully reserved, you can listen to the meeting via live audio (call + 44 (0)20 8322 2188, access code 531524 and #). Call charges will be UK standard rate. International callers will be charged at your international call rate to United Kingdom. This meeting is not available over the internet.

14 March 2005: Disclosing the impacts of A-IFRSs

Deloitte (Australia) has published a new 35-page guide to assist clients, partners, and staff in preparing the disclosures required by AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards for reporting periods ending on or after 30 June 2005. The guide provides illustrative examples of some of the possible approaches to disclosing the impacts of adopting A-IFRSs in financial reports. Entities should, of course, adopt an approach that is most appropriate to their circumstances and that provides sufficient detail to allow users to understand the significant impacts on the financial statements. Click to download Disclosing the Impacts of Adopting Australian Equivalents of IFRSs (PDF 657k).

13 March 2005: Chinese version of IFRS in your Pocket 2005

Deloitte has published the Chinese translation of our popular quick reference guide to international financial reporting – IFRS in your Pocket 2005 (PDF 836k). As with the English language version, the 67-page guide in Chinese includes information about: IASB structure and contact details. Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada. Summaries of each IASB Standard (through IFRS 6) and Interpretation (through IFRIC 5), as well as the Framework and the Preface to IFRSs. Background and tentative decisions on all current IASB projects. An IASC and IASB chronology. The English version can be found on our IFRS Publications Page.

9 March 2005: Convergence talks with Japan

Representatives of the IASB, including Board Chairman Sir David Tweedie, are meeting in Tokyo this week with representatives of the Accounting Standards Board of Japan (ASBJ) as part of an agreement between the two boards to identify ways to eliminate differences between IFRSs and Japanese standards. The current scope of topics under consideration for convergence is limited in that it will not include: standards issued after 31 March 2004 – IFRSs 5 and 6; standards issued on or before 31 March 2004 that are "recently developed" – which would include the 14 Improved IASs issued by the IASB in December 2003 as well as IFRSs 2, 3, and 4; standards under review or intended to be reviewed in the joint projects between the IASB and the US Financial Accounting Standards Board (FASB) – which currently include IAS 12, IAS 14, IAS 19, IAS 20, IAS 37, and IAS 39; standards that are divergent owing to differences in the respective conceptual frameworks or basic philosophies – the ASBJ includes their new standard retaining pooling of interests accounting for business combinations in this category; standards whose requirements are subject to legal restrictions or those currently considered inapplicable in Japan. Nor will differences in the two boards' conceptual frameworks be considered for convergence. See our news story of 21 January 2005 for more information.

5 March 2005: IOSCO report on strengthening financial markets

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a Report on Strengthening Capital Markets Against Financial Fraud. The report is based on a study of recent financial scandals involving large, global companies. IOSCO's goal is to identify possible weaknesses to the international financial system and decide how those weaknesses can be addressed. The report identifies seven separate areas that have figured prominently in many recent high-profile financial scandals: Corporate governance, including the role of independent directors, protection of minority shareholders, auditor oversight, and conflicts of interest presented by related-party transactions; Auditors and audit standards, including auditor independence and auditor rotation; Issuer disclosure requirements, including management's discussion and analysis of material events and factors likely to have an impact on the issuer; Bond market regulation and transparency, including issuer disclosures and the transparency of bond market price-setting mechanisms; The role and obligations of market intermediaries; The use of complex corporate structures and special purpose entities; and, The analytical integrity and independence of private-sector information analysts. For each of the seven areas, the report discusses what issues recent financial scandals have raised, and whether any international standards or principles currently exist to remedy or address the issues identified. IOSCO's stated priorities include promoting implementation of the international standards and principles already developed and facilitating cross-border enforcement cooperation so that existing securities laws and regulations can be fully enforced. Click to download: IOSCO Report (PDF 343k) IOSCO Press Release (PDF 237k)

4 March 2005: March Board meeting dates and agenda are set

The IASB has announced that it will hold its monthly Board meeting at its offices in London on Tuesday 15 March and Thursday 17 March 2005. On Wednesday 16 March 2005, the Board will hold a public round-table meeting on the fair value option. 15-17 March 2005, London Tuesday 15 March 2005 Accounting Standards for Non-Publicly Accountable Entities ED 7 Financial Instruments: Disclosures Transition Provisions for Fair Value Option Financial Instruments - Convergence with US GAAP (Educational Session) Short-term Convergence - Taxes Segment Reporting Wednesday 16 March 2005 Financial Instruments: Fair Value Option: The IASB has released a preliminary draft of a possible new approach to the fair value option in IAS 39 for discussion at public roundtable meetings that the Board will conduct on Wednesday 16 March 2005 at the Crowne Plaza City Hotel, Bridewell Suite, 19 New Bridge Street, London, 8:30am-5:15pm. Thursday 17 March 2005 Puttable Instruments Financial Guarantees Contracts and Credit Insurance IFRIC Update: Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies Business Combinations II - Purchase Method Procedures Liabilities and Equity Also, on Friday 18 March 2005 the Trustees of the IASC Foundation will meet at the Crowne Plaza St James Hotel, Buckingham Gate, London SW1. Public session is 8:00-13:00. See our news story dated 2 March 2005 for more information. Note that this is not the same Crowne Plaza Hotel as the 16 March fair value option meeting.

4 March 2005: Three 'service concessions' proposals from IFRIC
The International Financial Reporting Interpretations Committee (IFRIC) has released for public comment Three Related Draft Interpretations:

• D12 Service Concession Arrangements - Determining the Accounting Model
• D13 Service Concession Arrangements - the Financial Asset Model
• D14 Service Concession Arrangements - the Intangible Asset Model

3 March 2005: Statistical database has been updated
We have updated our Database of Statistics about the globalisation of the world's capital markets. That globalisation is an important reason why global financial reporting standards are needed.

3 March 2005: Draft MoU on national standard setters and IASB
The IASB and accounting standard-setting bodies around the world are seeking comments on a draft Memorandum of Understanding on the Role of National and Regional Accounting Standard-Setting Bodies and their Future Relationships with the IASB. The draft is intended to set out a shared vision of the respective roles of national and regional standard-setters and of the IASB in working towards a single set of high quality, understandable, and enforceable global accounting standards. An earlier draft of the MoU was discussed at a meeting of world standard setters in September 2004. The IASB requests comments by 29 July 2005. The IASB intends to present a collation of the comments and a revised draft MoU at a meeting of world standard-setters in September 2005. Click to download:

• Draft Memorandum of Understanding (PDF 44k).
• IASB Transmittal Letter (PDF 8k).

3 March 2005: SEC grants one year SOX 404 deferral for foreign issuers
The US SEC has further extended the compliance dates for foreign private issuers and non-accelerated filers regarding Section 404 of the Sarbanes-Oxley Act. Section 404 requires a company to include in its annual reports a report by management on the company's internal control over financial reporting and an accompanying auditor's report. Under the latest extension, foreign private issuers filing annual reports on Form 20-F or 40-F, as well as non-accelerated filers, must begin to comply with the internal control requirements in their first financial year ending on or after 15 July 2006. This is a one-year extension from the previously established 15 July 2005 date. The SEC noted that one reason for the deferral for foreign issuers is that "many foreign companies are facing regulatory and reporting challenges in addition to internal control reporting as companies incorporated in a European Union member country are required to prepare their financial statements for 2005 in accordance with new International Financial Reporting Standards." Click for:

• Press Release (PDF 31k)
• Revised SEC Rule (PDF 45k)

2 March 2005: Sustaining compliance with Sarbanes-Oxley

In response to a compelling need to bring more order, predictability, and value to section 404 compliance, Deloitte & Touche LLP (United States) has released a new publication, Under Control: Sustaining Compliance with Sarbanes-Oxley in Year Two and Beyond. Under Control provides a straightforward discussion of the essential characteristics of sustainability, as well as plain-English guidance for deriving long-term value from internal control programs. The document clearly and simply explains key concepts, provides practical advice, and analyses critical shortcomings that many companies experienced in their first-year efforts. Click to Download Under Control (PDF 409k).

2 March 2005: Deloitte comment letter on IFRIC D11
We have posted the Deloitte Letter of Comment (PDF 114k) to the International Financial Reporting Interpretations Committee on IFRIC D11 Changes in Contributions to Employee Share Purchase Plans (ESPPs).

2 March 2005: IASCF Trustees will meet 18 March 2005
The Trustees of the IASC Foundation, which oversees the IASB, will meet in London on Friday, 18 March 2005. The meeting will include a public session with members of the IASB to discuss their work programme and priorities and a review of the proposed 'due process handbook'. Also on the agenda are the composition and mandate of a reconstituted Standards Advisory Council (SAC) and reappointment of the three IASB members whose terms are due to end on 30 June 2005 (Robert Garnett, Gilbert Gelard, and James Leisenring). The meeting agenda indicates that the Trustees intend to make a decision on reappointments at the March meeting.

1 March 2005: IASB plans 2005 'roadshows' in Europe
The IASB has announced that in 2005 it will be organising a series of 'roadshows' jointly with national standard setters in Europe. Each roadshow will typically consist of a series of 3-hour meetings with 20 or so CFOs and CAOs at a time, as well as a press briefing. The purpose of the roadshows will be "to engage in a high-level, interactive, and convivial discussion about the Board's current and future projects". Roadshows are currently being planned for Belgium, France, Germany, Ireland, Italy, Spain, Sweden, Switzerland, The Netherlands, and the United Kingdom. A second group of roadshows will take place later in 2005 in Austria, Denmark, Finland, Greece, Hungary, Norway, Poland, Portugal, and Romania.

1 March 2005: New global investment performance reporting standards
The CFA Institute Board of Governors has approved revised Global Investment Performance Standards, or GIPS®. The revised GIPS standards, developed jointly by financial analysts' groups in over 20 countries, represent the most comprehensive and significant upgrade to the standards since their introduction in 1999. You can Download the Standards from the CFA Institute website. Also available are an FAQ document and a comparison of the revised standards with the 1999 version.

1 March 2005: New Public Interest Oversight Board to Monitor IFAC
The International Federation of Accountants (IFAC) and the international financial regulatory community (including IOSCO), have established a Public Interest Oversight Board (PIOB) to oversee the work of IFAC's auditing, ethics, and education standard-setting committees and its Member Body Compliance Program. The eight PIOB members include seven individuals nominated by the International Organization of Securities Commissions, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, and the World Bank, and one selected by those organisations from individuals nominated by IFAC. Click for press releases from:

• IOSCO (PDF 70k).
• Press Release (PDF 69k).

1 March 2005: New Accounting Roundup newsletter posted
We have posted the 28 Feb 2005 Edition of Accounting Roundup (PDF 349k) from Deloitte & Touche (United States). This issue covers FASB developments (including FSP FAS 19-a on suspended well costs); AICPA developments (including a Technical Practice Aid on property and casualty insurance arrangements and a proposed Practice Aid on disclosures of derivative loan commitments); SEC developments (including clarifications on statements of cash flows and lease accounting); and IASB developments. All past issues of Accounting Roundup are Here.