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30 December 2006: IFAC ethics proposals on auditor independence
The International Ethics Standards Board for Accountants (IESBA) has issued an exposure draft proposing to update and strengthen the auditor independence requirements contained in the IFAC Code of Ethics for Professional Accountants. Significant proposed modifications to the Code include:

• extending the partner rotation requirements to all key audit partners on an audit of an entity of significant public interest;
• updating requirements related to the provision of non-assurance services, including setting out additional guidance on the provision of tax services to audit clients;
• providing guidance on key audit firm personnel accepting employment with audit clients that are entities of significant public interest; and
• extending the independence requirements to the audits of a wider range of entities of significant public interest.

• Exposure Draft (PDF 416k)
• Press Release (PDF 75k)

29 December 2006: IAS Plus availability and speed are still not normal
The Hong Kong government reports it will take at least five to seven days to repair the six undersea fibre-optic cables off the coast of Taiwan damaged by a series of earthquakes on 26 December 2006 (see our Earlier Story). The cables account for about 90% of the total capacity and mainly affect connections to Japan, Taiwan, Korea, the US and Canada. Operators have implemented contingency plans and rerouted traffic via all other cables still in service. At present, voice call services including IDD calls and roaming calls to most of the countries/territories except for Taiwan have nearly resumed to normal. However, Internet access to overseas web sites is still congested. IAS Plus has had less than one-third of the expected number of visitors for the week between Christmas and New Year's Day. Click for HK Government Press Release (PDF 27k).

29 December 2006: Updated EFRAG endorsement status report
The European Financial Reporting Advisory Group has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 20 December 2006 (PDF 35k). You can always find a link on our EFRAG Page. Currently, the following IASB pronouncements have not yet been endorsed for use in Europe:

• IFRS 8 Operating Segments
• IFRIC 12 Service Concession Arrangements
• IFRIC 11 IFRS 2: Group and Treasury Share Transactions
• IFRIC 10 Interim Financial Reporting and Impairment

29 December 2006: SEC amends executive compensation disclosures
The US Securities and Exchange Commission has amended its executive and director compensation disclosure rules to more closely conform the reporting of stock and option awards to FASB Statement No. 123 (revised 2004) Share-Based Payment. FAS 123R is similar to IFRS 2 Share-based Payment. The amendment modifies rules that were adopted in July 2006. The July rule had required a company to include the entire fair value of stock option grants in the SEC's Summary Compensation Table and the Director Compensation Table in the period in which the options are granted. The revised rule spreads the fair value in those Compensation Tables over the same periods as the company recognises options expense in its financial statements under FAS 123R. Click for SEC Press Release (PDF 66k).

28 December 2006: Earthquakes disrupt IAS Plus availability, speed
Strong earthquakes off the coast of Taiwan have disrupted the availability and access speed of IAS Plus. The quakes occurred starting at 12:26 GMT on Tuesday 26 December 2006. The server for IAS Plus is located in Hong Kong. The earthquakes and related aftershocks damaged undersea data cables in the Luzon Strait between Hong Kong and Taiwan, disrupting internet links between Hong Kong and much of the world yesterday and continuing today. IAS Plus normally has up time of 99.9% and connect time (time it takes for us to start sending data to you after you access the site) of under 0.8 seconds. The main headline in today's South China Morning Post says:

Cyberspace chaos leaves region reeling. Net users struggle to cope without their lifeline as providers warn it could take weeks to fix cables damaged by quake.

26 December 2006: Six exposure drafts from IAASB
The International Auditing and Assurance Standards Board (IAASB) approved a proposed revised International Standard on Auditing (ISA) 580 (Revised and Redrafted) Written Representations, as well as five exposure drafts of revised standards written in accordance with the IAASB's new clarity drafting conventions. Written representations are affirmations that auditors request from management, those charged with governance, and others, as part of the audit process. The affirmations relate to the financial statements, including internal control, and the completeness of information made available to the auditor, and specific assertions in the financial statements. The five 'clarity' exposure drafts are:

• ISA 230 (Redrafted), Audit Documentation;
• ISA 540 (Revised and Redrafted), Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures;
• ISA 560 (Redrafted), Subsequent Events;
• ISA 610 (Redrafted), The Auditor's Consideration of the Internal Audit Function; and
• ISA 720 (Redrafted), Reading Other Information in Documents Containing Audited Financial Statements.

23 December 2006: Special Newsletter–Closing Out 2006

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter titled Closing Out 2006 (PDF 142k). The newsletter summarises all of the new and revised Standards and Interpretations in effect for December 2006 year ends and beyond. Here is list of those pronouncements:

You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

22 December 2006: Heads Up newsletter on AICPA SEC/PCAOB conference
Annually, the American Institute of Certified Public Accountants hosts a conference featuring speeches by, and question-and-answer sessions with, representatives of the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and other standard setters. In our news story of 12 December 2006 we posted links to various speeches made at the conference. We have now posted a Special Issue of Deloitte's Heads Up Newsletter (PDF 573k, 79 pages) that extracts key insights from this three-day conference attended by more than 2,000 CPAs. Heads Up is published by the National Office Accounting Standards and Communications Group of Deloitte & Touche LLP (United States).

22 December 2006: Special edition IAS Plus Newsletter on IFRS 8

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter titled IFRS 8 Operating Segments (PDF 113k). On 30 November 2006, the IASB issued IFRS 8, which replaces IAS 14 Segment Reporting. This newsletter explains the requirements of IFRS 8 and how it differs from IAS 14. IFRS 8 is mandatory for annual financial statements for periods beginning on or after 1 January 2009, although earlier application is permitted. Once IFRS 8 is effective, segment reporting under IFRSs and US Generally Accepted Accounting Principles (SFAS 131) will be converged except for some minor differences. IFRS 8 will expand significantly the requirements for segment information at interim reporting dates. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

21 December 2006: Enhanced edition of IFRS textbook
Paul Pacter, a director in Deloitte's IFRS Global Office and webmaster of IASPlus, is co-author of the Second (Enhanced) Edition of the leading university textbook on IFRSs, Applying International Financial Reporting Standards, published this month by John Wiley and Sons (Australia). The focus of this 1,236-page text is on the analysis, illustration, and application of IFRSs. The textbook has been written for intermediate and advanced financial reporting courses, at both undergraduate and postgraduate level, and aligns with the knowledge expectations of the accounting profession. Paul's co-authors are Keith Alfredson, former chairman of the Australian Accounting Standards Board (AASB); Ruth Picker, IFRIC member and a technical partner of Ernst & Young; Ken Leo and Jeannie Radford, both of Curtin University of Technology; and Victoria Wise of Victoria University. Here is the Book's Home Page, for more information and on-line purchasing. Or, for international orders, email custservice@johnwiley.com.au (cite ISBN: 9780470808238). Outline of the book:

21 December 2006: European Central Bank report on IFRSs
The European Central Bank (ECB) has published a report titled Assessment of Accounting Standards from a Financial Stability Perspective that was prepared by the ESCB Banking Supervision Committee. The Committee comprises representatives of the national central banks and banking supervisory authorities of the European Union and the ECB.

• ECB Report (PDF 852k)
• ECB Press Release (PDF 63k)

20 December 2006: Proposed revisions to internal control audit standard
The US Public Company Accounting Oversight Board has proposed to revise its Auditing Standard No. 2 An Audit of Internal Control Over Financial Reporting Performed in Conjunction With an Audit of Financial Statements. The revision reflects the PCAOB's experience with the first two years of auditors' implementation of the internal control provisions of the Sarbanes-Oxley Act, The revised standard is designed to focus the auditor on the most important matters, increasing the likelihood that material weaknesses will be found before they cause material misstatement of the financial statements. At the same time, the proposed standard would eliminate audit requirements that the PCAOB has concluded are unnecessary to achieve the intended benefits. It would also provide direction on how to scale the audit for a smaller and less complex company. Comment deadline is 26 February 2007, Any final standard adopted must be submitted to the Securities and Exchange Commission for approval. Click for:

• Proposed Revised Auditing Standard 2 (PDF 385k)
• Press Release (PDF 76k).

19 December 2006: New Global Offerings Services newsletter

We have posted the October-November 2006 Edition of the Deloitte Global Offerings Services Newsletter (PDF 115k). 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. The GOs Newsletter is an update on relevant GAAP, regulatory, and other matters, webcasts, and publications. Past GOs Newsletters are Here.

19 December 2006: SEC postpones SOX 404 for small companies
The US Securities and Exchange Commission has further postponed the date by which smaller public companies must comply with the internal control reporting requirements mandated by Section 404 of the Sarbanes-Oxley Act of 2002. Previously, non-accelerated filers (companies that do not meet the Exchange Act definition of either an accelerated filer or a large accelerated filer) were scheduled to begin including both management's assessment and an auditor's attestation to management's assessment on the effectiveness of the filers' internal control over financial reporting in their annual reports for fiscal years ending on or after 15 July 2007.

• The extended date for providing management's assessment of internal controls is annual reports for fiscal years ending on or after 15 December 2007.
• The new date for compliance with the auditor attestation requirement is fiscal years ending on or after 15 December 2008.

17 December 2006: Board agenda project pages updated

We have updated the following agenda project pages to reflect the discussions and decisions at the International Accounting Standards Board's December 2006 meeting:

• Amendments to IAS 23 Borrowing Costs
• Amendments to IAS 39
• Annual Improvements Project – 2006
• Business Combinations Phase 2
• Conceptual Framework
• Consolidation
• Employee Benefits Including Pensions
• Financial Instruments – Comprehensive Project
• Financial Statement Presentation
• Intangible Assets
• IFRS for Small and Medium-sized Entities

16 December 2006: New financial institution loan loss policies
Five United States agencies that regulate banking institutions have revised their 1993 policy statement on the allowance for loan and lease losses (ALLL) to ensure consistency with generally accepted accounting principles (GAAP) and more recent supervisory guidance. The statement outlines expectations for directors and management of banks and savings associations as well as bank examiners related to the development and assessment of the ALLL estimate. This revision expands the scope of the policy statement to include credit unions. In addition, the agencies have also issued a set of frequently asked questions (FAQs) to assist institutions in complying with GAAP and ALLL supervisory guidance. Click to download:

• Policy Statement (PDF 1,539k)
• Questions and Answers (PDF 847k)

16 December 2006: Notes from third day of December 2006 IASB meeting

The International Accounting Standards Board held its December 2006 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 12-14 December 2006. We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the meeting on our December 2006 Meeting Notes Page.

15 December 2006: CEBS guidelines on financial reporting
The Committee of European Banking Supervisors (CEBS) has published a new release of the Guidelines for the Implementation of the Framework for Consolidated financial Reporting (FINREP) (PDF 344k). These guidelines are intended to be used by credit institutions when preparing prudential reports to be sent to any European Union Supervisory Authority according to the IASs/IFRSs endorsed by the European Commission.

15 December 2006: Public sector board issues two new standards
The International Public Sector Accounting Standards Board (IPSASB) has issued two new International Public Sector Accounting Standards (IPSASs):

• IPSAS 22 Disclosure of Financial Information about the General Government Sector (PDF 137k). IPSAS 22 establishes requirements for governments that choose to disclose information about the general government sector and that prepare their financial statements under the accrual basis of accounting. IPSAS 23 is effective for annual periods beginning on or after 1 January 2008, earlier application encouraged. Press Release (PDF 60k).
• IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers) (PDF 240k). IPSAS 23 addresses:
  • Recognition and measurement of revenue from taxes
  • Recognition of revenue from transfers, which include grants from other governments and international organisations, gifts. and donations
  • How conditions and restrictions on the use of transferred resources are to be reflected in the financial statements
  IPSAS 23 is effective for annual periods beginning on or after 30 June 2008, earlier application encouraged. Press Release (PDF 60k).

14 December 2006: Notes from second day of December 2006 IASB meeting

The International Accounting Standards Board held its December 2006 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 12-14 December 2006. We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the meeting on our December 2006 Meeting Notes Page.

14 December 2006: IFRS do kapsy – Czech language IFRS in your Pocket

Deloitte Czech Republic has published IFRS do kapsy, the Czech Language Version of IFRSs in your Pocket 2006 (PDF 617k). This edition includes a special introduction by Michal Petrman, Office Managing Partner of Deloitte Czech Republic, plus all of the information in the English language edition. Copies of this and all other Deloitte IFRS publications can always be found on our IFRS Publications Page.

14 December 2006: SEC eases SOX 404 and deregistration requirements
The US Securities and Exchange Commission has proposed rules intended to simplify compliance with US securities laws by public companies without reducing investor protection. The rules relate to (a) Section 404 of the Sarbanes-Oxley Act of 2002 on assessment of internal controls and (b) deregistration by foreign issuers.

14 December 2006: SEC will allow proxy distribution via the Internet
The US Securities and Exchange Commission has amended its proxy rules to allow companies to furnish proxy materials to shareholders through a 'notice and access' model using the Internet. A company choosing to follow the model must post its proxy materials on an Internet Web site and send a Notice of Internet Availability of Proxy Materials to shareholders at least 40 days before the meeting date. A proxy card may not accompany the Notice. However, a company may send a paper proxy card accompanied by another copy of the Notice 10 days or more after sending the initial the Notice. Click for SEC Press Release (PDF 37k).

13 December 2006: Notes from first day of December 2006 IASB meeting

The International Accounting Standards Board held its December 2006 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 12-14 December 2006. We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the meeting on our December 2006 Meeting Notes Page.

13 December 2006: IFAC information paper on micro-entity standards
The International Federation of Accountants (IFAC) has published an information paper exploring the needs of users and preparers of the financial reports of micro-entities. The paper, Micro-Entity Financial Reporting: Perspectives of Preparers and Users, was authored by two accounting educators from the United Kingdom. It defines micro-entities as those with less than ten employees. The paper includes a review of the existing research on the topic, a survey of the legal status of micro-entities in different countries, and the various definitions that exist in different jurisdictions. "The research was prompted by a concern that the International Accounting Standards Board's IFRS for SMEs may not be suited to micro-entities." The IASB expects to issue an Exposure Draft of the IFRS for SMEs in January 2007. The Basis for Conclusions of that ED will explain the IASB's view that the IFRS for SMEs is suitable for all SMEs, including micros, that prepare general purpose financial statements for external users. Click for:

• IFAC Information Paper (PDF 262k)
• Press Release (PDF 83k)

12 December 2006: Speeches at AICPA's annual SEC and PCAOB conference
The American Institute of CPAs is holding its 2006 National Conference on Current SEC and PCAOB Developments in Washington on 11-13 December 2006, simulcast in four other cities. Various US SEC and PCAOB representatives, including SEC Chairman Christopher Cox and PCAOB Chairman Mark W. Olson, are speaking at the conference. The conference is quite popular among SEC registrants and their auditors because the SEC and PCAOB representatives provide insights on important issues for calendar year-end reporting. Here are links to some of the presentations on the first day of the conference. We will add to this list as additional presentations are made publicly available.

Posted 12 December

• PCAOB Chairman Mark W. Olson (PDF 92k). Spoke about the PCAOB's priorities, auditor oversight, the international outlook (including international coordination and global capital markets).
• Cathy J. Cole, Associate Chief Accountant (PDF 47k). Spoke about the two-class method of computing earnings per share.
• Joseph B. Ucuzoglu, Professional Accounting Fellow (PDF 75k). Spoke about purchase price allocations, option grants with administrative delays, special classes of stock granted to employees, and postretirement benefit plan amendments.
• Zoe-Vonna Palmrose, Deputy Chief Accountant (PDF 51k). Spoke about improving audit effectiveness.
  Added 13 December
  
• Timothy S. Kviz, Professional Accounting Fellow (PDF 72k). Spoke about hedge effectiveness assessment under FAS 133. "Despite the fact that Statement 133 has been in place for over five years, hedge accounting continues to be a significant source of formal and no-name inquiries, is a contributing factor for a significant number of restatements, and it generates a large number of articles in the press."
• Scott Taub, Deputy Chief Accountant (PDF 53k). Spoke about difficulties in applying professional judgment in financial reporting.
• Joseph D. McGrath, Professional Accounting Fellow (PDF 66k). Spoke about (i) the application of fair value when accounting for certain items; (ii) the interplay of revenue recognition and sales of receivables and; (iii) the documentation requirements of Statement No. 133.
• John W. Albert, Senior Associate Chief Accountant (PDF 49k). Spoke about the interaction between the Office of Chief Accountant and the SEC's Enforcement Division in identifying and consulting on financial reporting problems that may warrant enforcement actions, including options back-dating.
• Mark Mahar, Associate Chief Accountant (PDF 60k). Spoke about materiality and SAB 108 (quantification of errors); application of FIN 46R; and professional judgment in accounting decisions.
  Added 14 December
  
• Michael W. Husich, Associate Chief Accountant (PDF 62k). Spoke about auditor independence.
  Added 15 December
  
• Michael Gaynor, Professional Accounting Fellow (PDF 62k). Spoke about risk-based evaluations of internal controls over financial reporting.
• Jenifer Minke-Girard, Senior Associate Chief Accountant (PDF 48k). Spoke about presentation and disclosure requirements, and evidence and documentation.
  Added 20 December
  
• Julie A. Erhardt, Deputy Chief Accountant (PDF 48k). Spoke about the roadmap toward convergence of IFRSs and US GAAP.
• Julie A. Erhardt, Deputy Chief Accountant (PDF 47k). Spoke about application of IFRSs by foreign SEC registrants.
• Todd E. Hardiman, Associate Chief Accountant Division of Corporation Finance (PDF 61k). Spoke about errors and materiality.

11 December 2006: IFRS model financial statements for 2006
We have posted Deloitte's IFRS Model Financial Statements for 2006 (Preliminary Version) (PDF 463k). Some changes (which we expect to be relatively minor) may be made before the final version is published in January 2007. We have released this preliminary version as an aid to those companies that are working on their 2006 financial statements before the final version is published. There is a link on our Model Financial Statements Page. There, you will also find links to our IFRS Presentation and Disclosure Checklist and IFRS Compliance Questionnaire for the year ended 31 December 2006, as well as to model financial statements, checklists, and compliance questionnaires for previous years.

11 December 2006: XBRL can allow IFRS-US GAAP conversion
US SEC Chairman Christopher Cox spoke about The Promise of Interactive Data (PDF 57k) at the 14th International XBRL Conference in Philadelphia on 5 December 2006. IASB Chairman Sir David Tweedie also spoke at the conference. Chairman Cox noted that one of the benefits of XBRL could be to allow easy conversion between IFRSs and US GAAP:

11 December 2006: SEC will re-propose foreign deregistration rules
At its meeting on 13 December 2006, the US Securities and Exchange Commission will consider a staff recommendation to re-propose new rules governing when a foreign private issuer may deregister its securities under the Securities Exchange Act of 1934 and cease making filings with the Commission. The staff intends to recommend deregistration thresholds based solely on trading volume. The original proposal (December 2005) had used thresholds based primarily on the percentage of US holders, as well as trading volume. Based on comments received, the Commission believes that thresholds based on trading volume are easier to implement. Staff will recommend a 30-day comment period for the re-proposed rules and expects to recommend final rules in the first quarter of 2007. Click for SEC Press Release (PDF 32k).

10 December 2006: Our comments on IFRIC agenda decision on derecognition
We have submitted a letter to the IFRIC in response to their November 2006 tentative rejection wording on derecognition of financial assets. Click to Download Our Letter (PDF 120k). An excerpt:

10 December 2006: Special edition IAS Plus Newsletter on IFRIC 12

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter titled IFRIC 12 Service Concession Arrangements (PDF 128k). IFRIC 12 addresses the accounting by private-sector entities that, by contract with a government, participate in developing, financing, operating, and maintaining infrastructure assets relating to public services traditionally provided by governments. Examples of those assets include roads, bridges, tunnels, prisons, hospitals, airports, water distribution facilities, energy supply and telecommunication networks. IFRIC 12 does not address the accounting for the government (grantor) side of such arrangements. IFRIC 12 is effective for annual periods beginning on or after 1 January 2008, with early adoption permitted. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

9 December 2006: New IASB-FASB joint working group on leases
The International Accounting Standards Board and the United States Financial Accounting Standards Board have announced the membership of a new international working group that will help the boards in their Joint Project on Lease Accounting. The joint project involves comprehensive reconsideration of all aspects of lease accounting and is expected to lead to fundamental changes in how lessees and lessors account for leases. The boards expect to publish a joint discussion paper in 2008 expressing their preliminary views. Click for Press Release (PDF 51k).

8 December 2006: Regulation of financial reporting in the EU
Charlie McCreevy, the European Commissioner for Internal Market and Services, spoke on Financial Reporting in the EU: Striking the Right Regulatory Balance (PDF 81k) at a conference organised by the European Accounting Federation (FEE) in Brussels. Here are excerpts on several matters:

8 December 2006: Accounting Roundup – November 2006

We have posted the November 2006 Edition of Accounting Roundup (PDF 249k) published by Deloitte & Touche LLP (USA). Topics covered in this issue include:

7 December 2006: Non-EU issuers may use national GAAP two more years
After receiving positive votes of agreement from the European Securities Committee and the European Parliament, the European Commission has adopted measures extending by two years the transitional exemption granted to foreign companies presenting financial statements prepared in accordance with national accounting standards for the issuing of securities on EU stock markets. Under these measures, 'third-country' (non-EU) issuers are not subject to restatement obligations until 31 December 2008 if:

• the financial information contains an explicit and unreserved statement that it complies with IFRSs; or
• the financial information is prepared in accordance with Canadian GAAP, Japanese GAAP, or US GAAP; or
• the financial information is prepared using a third-country GAAP in relation to which the following conditions are met:
  • the third-country authority responsible for that GAAP has made a public commitment to converge it with IFRS; and
  • that authority has established a work programme that demonstrates progress towards convergence before 31 December 2008; and
  • the issuer provides satisfactory evidence to the relevant competent authority demonstrating that the conditions in the above two points have been met.

• Commission Regulation (PDF 32k)
• Commission Press Release (PDF 89k)

7 December 2006: Special edition IAS Plus Newsletter on IFRIC 11

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter titled IFRIC 11 Clarifies Accounting under IFRS 2 (PDF 85k). IFRIC 11 IFRS 2: Group and Treasury Share Transactions addresses the application of IFRS 2 Share-based Payment to certain share-based payment arrangements involving an entity's own equity instruments and to arrangements involving equity instruments of the entity's parent. It is effective for annual periods beginning on or after 1 March 2007. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

7 December 2006: Significant audit issues in recent IASB proposals
Deloitte Touche Tohmatsu has submitted a response to a request from the International Auditing and Assurance Standards Board (IAASB) for identification of significant audit issues in recent proposals by the International Accounting Standards Board (IASB). Here is an excerpt:

• Download Our Letter on Significant Audit Issues (PDF 31k).
• Go to Page with Links to Our Past Letters to IAASB.

7 December 2006: Changes to the Financial Reporting Framework in Singapore

Deloitte & Touche (Singapore) has published the 2006 Edition of Changes to the Financial Reporting Framework in Singapore. This booklet summarises the status of adoption by the Council on Corporate Disclosure and Governance (CCDG) – Singapore's accounting standard setter – of International Financial Reporting Standards (including Interpretations) up to November 2006. It also includes a detailed comparison of Singapore GAAP and IFRSs. Click to Download the Booklet (PDF 205k). You will find more information about accounting standards in Singapore on our Singapore Page, including links to download prior-year editions of the Changes Booklet.

7 December 2006: New IFRIC project pages created

	We have created pages on IAS Plus for the following projects recently begun or activated by the International Financial Reporting Interpretations Committee:
IAS 18 Revenue: Initial Fees Received by a Fund Manager IAS 21 Foreign Exchange Rates: Hedge of a Net Investment IAS 38 Intangible Assets: Catalogues and Other Advertising Costs IAS 41 Agriculture: Fair Value

You will find Links to All IFRIC Project Pages here. We also modified several pages on IAS Plus as a result of IFRIC's decision not to finalise Draft Interpretation 9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions.

6 December 2006: PCAOB to consider revised internal control audit standard
The US Public Company Accounting Oversight Board will meet on 19 December 2006 to consider proposing for public comment a new auditing standard to supersede the Board's Existing Auditing Standard No. 2 on internal control over financial reporting, and other related proposals. The revisions would "provide for a much more efficient, risk-based, scalable implementation" of the internal control audit requirements. The PCAOB's Announcement (PDF 73k) states:

6 December 2006: Heads Up on SEC staff views updated
On 26 September 2006, the SEC Regulations Committee of the American Institute of CPAs held its third meeting of the year with the SEC staff. The Committee meets periodically with the SEC staff to discuss emerging technical accounting and reporting issues relating to SEC rules and regulations, as well as ongoing SEC staff projects and final rule releases. In October 2006, we posted on IAS Plus an edition of the Heads Up newsletter published by Deloitte & Touche LLP (United States) containing a preliminary summary the meeting. Since the original issuance of that Heads Up, some of the final discussion documents related to the 26 September 2006 meeting were posted to the AICPA's website. Those documents contain the final views of the SEC staff on some issues discussed at the meeting. In a few cases, the final discussion documents differ substantively from the original issuance of the Heads Up. Accordingly, Heads Up has been updated. The revised issues are denoted (revised), and there is a brief summary of the reason for the revision after the SEC view. Click to Download the Updated Heads Up Newsletter (PDF 111k).

6 December 2006: Deloitte comment letters to the IAASB
The Deloitte Touche Tohmatsu global network has, for years, submitted comment letters on all IASB, IFRIC, IASCF, IASC, and SIC comment documents including Discussion Papers, Exposure Drafts, and Draft Interpretations, We have a page on IAS Plus that has Links to All Letters to IASB, IFRIC, IASCF, IASC, and SIC since 1995, Also, we announce each new letter in a brief news story on this Home Page. The Deloitte Touche Tohmatsu global network also submits global comment letters to the International Auditing and Assurance Standards Board (IAASB). We have created a new Page with Links to Our Letters to the IAASB, and we plan to announce each new letter on our Home Page. The permanent link to 'Deloitte Comment Letters' on the left side of this Home Page (under 'Deloitte Publications') will take you to our letters to IASB/IFRIC and also our letters to the IAASB. There's also a link on our IAASB Page.

6 December 2006: Update on the IASB's SME project
The Association of Chartered Certified Accountants (ACCA) published a special edition of its magazine Accounting & Business for the World Congress of Accountants, November 2006. That issue included an article titled Standards and SMEs: Who, What, When and Why? (PDF 70k) written by Paul Pacter, the IASB's director of standards for SMEs, who is also webmaster of www.iasplus.com. We have posted the article, which is copyright ACCA 2006, with their kind permission.

5 December 2006: RFP on approaches to measuring CPD for accountants
The International Accounting Education Standards Board (IAESB) is seeking proposals for research into approaches adopted by a range of professions for measuring continuing professional development (CPD). The research is expected to lead to an International Education Paper (IEP) in 2008 that will make recommendations as to 'good practice' for possible adoption by IFAC member bodies. The deadline for submission of proposals is 12 January 2007. Click for:

• Request for Proposal: Approaches to CPD Measurement (PDF 135k).
• Press Release (PDF 81k).

4 December 2006: Report on implementation of IFRSs in the United Kingdom
The United Kingdom Financial Reporting Review Panel has published a report on its preliminary findings in respect of IFRS implementation by UK listed companies in their annual accounts. The Panel found 'a good level of compliance with IFRSs' but also identified a number of recurring issues that are highlighted in the report, including the following:

• There is "a tendency to use 'boiler-plate' descriptions for disclosure of accounting policies, irrespective of whether those policies had been applied in the accounts. IFRS accounts have been said to be too long and too complicated. More focused and thoughtful approaches to these areas might reduce their length and increase understanding of the complexities which are inevitable in sophisticated commercial operations."
• IAS 1 disclosures relating to subjective or complex judgements made by management were sometimes bland and uninformative.
• Not all companies complied with the requirement to disclose the possible impact on their financial statements of published Standards and Interpretations not yet effective at their reporting date.
• Disclosures relating to intangible assets and goodwill acquired in business combinations needed improvement in some cases.
• Similarly, disclosures relating to impairment testing of goodwill and indefinite-life intangible assets were inadequate in some cases.
• The report reminds companies that all key management personnel are related parties under IAS 24 (even if they are not directors) and IAS 24 requires disclosure of remuneration.

• Report on IFRS Implementation (PDF 114k)
• Related Press Release (PDF 12k)

4 December 2006: CESR report on auditor oversight in the EU
The Committee of European Securities Regulators (CESR) has published a Report on the Role of Securities Regulators in Auditor Oversight in the European Union (PDF 117k). The report examines the relationship between the securities regulators, the auditors, and their oversight system. The report generally reflects the auditor oversight structure in the EU/EEA member states as of 1 October 2005, with two exceptions. In the Netherlands, on 1 October 2006, the Dutch securities regulator took over the oversight of auditors and increased its powers in this area. Also, in Italy, in December 2005, a new law was passed that strengthened the powers of CONSOB (Italian securities regulator) in respect of auditor oversight. The report notes that "with the enactment of the 8th Directive on Statutory Audit which will be implemented in member states by mid-2008, each member state has to establish an auditor oversight body. Some member states are still in the process of establishing these auditor oversight bodies, so the situation as set out in this report is likely to change over the next two years."

4 December 2006: Updated EFRAG endorsement status report
The European Financial Reporting Advisory Group has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 30 November 2006 (PDF 28k). You can always find it on our EFRAG Page. Currently, the following IASB pronouncements have not yet been endorsed for use in Europe:

• IFRS 8 Operating Segments
• IFRIC 12 Service Concession Arrangements
• IFRIC 11 Group and Treasury Share Transactions
• IFRIC 10 Interim Financial Reporting and Impairment

2 December 2006: Agenda for December 2006 IASB meeting

The International Accounting Standards Board will hold its December 2006 Board meeting at its offices, 30 Cannon Street, London, on Tuesday through Thursday 12-14 December 2006. Presented below is the preliminary agenda for the meeting.

12-14 December 2006, London Tuesday 12 December 2006 IFRIC: Draft IFRIC Due Process Handbook Post-employment Benefits – Discussion Paper 1. Scope 2. Options for distinguishing defined benefit and defined contribution plans. Consolidations – Application of the control model to fund managers and investment companies Short-term Convergence: Borrowing Costs – Comment letter analysis Conceptual Framework – Reporting entity phase Wednesday 13 December 2006 Financial Instruments – Interest margin hedging [Education Session] Representatives from the European Banking Federation will hold an education session for the Board, at which they will present a proposed alternative hedge accounting model. Annual Improvements - 2006 [Please note this session may be moved to Tuesday 12 December if other sessions on that day take less time than anticipated] 1. Should IAS 1 Presentation of Financial Statements be amended to provide guidance on situations where the financial statements of an entity are based on, but not in full compliance with, IFRSs? 2. Should the term ‘point-of-sale costs' in IAS 41 Agriculture be replaced with ‘costs to sell' to improve consistency with other IFRSs? 3. Should IAS 38 Intangible Assets permit the use of the unit of production method of amortisation when it results in a lower amount of accumulated amortisation than the straight-line method? Financial Instruments – Hedging of portions of cash flow or fair value exposure Financial Instruments – Due Process Document: Recognition and Measurement Thursday 14 December 2006 Technical plan Financial Statement Presentation phase A – Exposure Draft of Proposed Amendments to IAS 1 Presentation of Financial Statements: Comment letter analysis. Financial Statement Presentation phase B: Other comprehensive income The statement of cash flows Application of the working format to financial institutions Tentative decisions to date and comprehensive illustration Business Combinations Phase II – Redeliberations of the proposed revised IFRS 3: Non-controlling interests and goodwill: Questions and answers Combinations between mutual entities Accounting for business combinations achieved by contract alone or in the absence of a transaction involving the acquirer

2 December: Australia proposes to undo changes it made to IFRSs
On 30 November 2006, the Australian Accounting Standards Board (AASB) issued Exposure Draft ED 151 Australian Additions to, and Deletions from, IFRSs for comment. ED 151 can be downloaded from the AASB Website (PDF 100kb). ED 151 reflects the AASB's recent decision to make Australian accounting requirements the same as IFRSs in respect of for-profit entities. To this end, the exposure draft proposes reinstating various accounting policy options that were previously deleted in making the existing suite of A-IFRS, and removing certain Australian-specific disclosures.

2 December: IAESB seeks comments on draft strategic plan
The International Accounting Education Standards Board (IAESB) is seeking comments on an exposure draft of its Strategic and Operational Plan for the Period 2007-2009 (PDF 98k). The IAESB proposes to undertake three high priority activities, beginning in 2007. These are:

• Conducting a fundamental review of the Framework for International Education Statements (IESs), considering developments in accounting education and the accountancy profession as a whole since this was first written;
• Developing a benchmarking methodology to help IFAC members and others achieve the measurable implementation of IESs; and
• Reviewing existing IESs to determine areas where the clarity of standards could be improved and/or additional guidance most usefully developed.

2 December: November 2006 edition of EITF Roundup
We have posted the November 2006 Edition of EITF Roundup (PDF 134k), which provides an overview of the issues discussed, consensuses reached, and administrative matters discussed at the 16 November 2006 meeting of FASB's Emerging Issues Task Force. You will find past issues Here. Issues covered in the September 2006 edition include:

• Issue No. 06-6, Debtor's Accounting for a Modification (or Exchange) of Convertible Debt Instruments
• Issue No. 06-7, Issuer's Accounting for a Previously Bifurcated Conversion Option in a Convertible Debt Instrument When the Conversion Option No Longer Meets the Bifurcation Criteria in FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities
• Issue No. 06-8, Application of the Assessment of a Buyer's Continuing Investment Under FASB Statement No. 66, Sales of Real Estate, for Sales of Condominiums
• Issue No. 06-9, Reporting a Change in (or Elimination of) a Previously Existing Difference Between the Fiscal Year-End of a Parent Company and That of a Consolidated Entity or Between the Reporting Period of an Investor and That of an Equity Method Investee
• Issue No. 06-10, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Collateral Assignment Split-Dollar Life Insurance Arrangements Issue No. 06-11, Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards
• Issue No. 06-12, Application of AICPA Audit and Accounting Guide, Brokers and Dealers in Securities, to Entities That Engage in Commodity Trading Activities and Related Issues

1 December 2006: Nearly 900,000 e-learning downloads from IAS Plus
As of 30 November 2006, 878,254 Deloitte IFRS e-learning modules have been downloaded from IAS Plus by 228,600 visitors from 156 jurisdictions. Deloitte's IFRS 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, hundreds 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 IAS Plus home page. Thirty-five modules are now available covering virtually all IFRSs. Because of the complexity of accounting for financial instruments, there are three modules on IAS 32 and IAS 39 (a general introduction and special modules on hedge accounting and derecognition). Deloitte is committed to maintaining the quality of our learning materials, and the IFRS e-learning modules are regularly updated to reflect changes and updates to the underlying standards. To check that you have the most up-to-date versions of the e-learning visit the version history page on the IFRS e-learning site.

1 December 2006: US PCAOB proposes $136 million 2007 budget
The US Public Company Accounting Oversight Board has approved a budget of US$136.4 million for calendar year 2007, compared to $130.9 for 2006. The majority of the Board's outlays will be for personnel and related expenses to conduct inspections of registered public accounting firms. To date, more than 1,700 public accounting firms have been registered by the Board, including approximately 750 firms based outside the United States. Firms with more than 100 public company audit clients must be inspected annually; firms with one to 100 public company audit clients must be inspected at least once every three years. The PCAOB expects to grow to a total headcount of 519 employees by year-end 2007, including approximately 250 inspections staff. This compares to an estimated 480 total and 230 inspections staff by the end of 2006. The budget is subject to US SEC approval. Click for:

• PCAOB Budget Summary (PDF 32k)
• PCAOB Press Release (PDF 57k)

1 December 2006: IFRIC 12 on service concession arrangements
The International Financial Reporting Interpretations Committee (IFRIC) has issued Interpretation IFRIC 12 Service Concession Arrangements. Service concessions are arrangements whereby a government or other public sector entity grants contracts for the supply of public services – such as roads, airports, prisons and energy and water supply and distribution facilities – to private sector operators. Control of the assets remains in public hands, but the private sector operator is responsible for construction activities, as well as for operating and maintaining the public sector infrastructure. IFRIC 12 addresses how service concession operators should apply existing IFRSs to account for the obligations they undertake and rights they receive in service concession arrangements. Click for Press Release (PDF 52k). IFRIC 12 is effective for annual periods beginning on or after 1 January 2008. A brief summary of IFRIC 12: