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31 January 2006: IASB Chairman meets with EU Parliamentary committee

Sir David Tweedie, Chairman of the IASB, met with the Economic and Monetary Affairs Committee of the European Parliament to discuss the work of the IASB and the adoption of IFRSs in the European Union. Sir David covered, among other things, the progress of convergence between the standards of the IASB and the FASB, the status of IAS 39, and the outcome of the IASC Foundation Constitution Review. Click for Sir David's Statement (PDF 52k).

30 January 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 as of 27 January 2006 (PDF 32k). Currently, the following IASB pronouncements have not yet been endorsed for use in Europe:

• IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
• IFRIC 8 Scope of IFRS 2
• Amendments to IAS 21

28 January 2006: Agenda project pages updated for January meeting
We have updated the following agenda project pages to reflect discussions and decisions at the January 2006 meeting of the International Accounting Standards Board:

• Accounting Standards for Small and Medium-sized Entities (SMEs)
• Business Combinations II
• Performance Reporting
• Reassessment of Embedded Derivatives - Proposed Interpretation
• Short-term Convergence - Borrowing Costs
• Short-term Convergence - Earnings per Share - Treasury Stock Method

27 January 2006: European Commission formally adopts recent IFRSs
The European Commission has published in the Official Journal of the European Union Commission Regulation (EC) No 108/2006 of 11 January 2006 amending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards IFRS 1, 4, 6 and 7, IAS 1, 14, 17, 32, 33, and 39 and IFRIC Interpretation 6. Click to Download the Official Journal (PDF 385k - includes the English language versions of the newly adopted standards).

27 January 2006: Special IAS Plus newsletter on IFRIC 8

Earlier this month, the International Financial Reporting Interpretations Committee issued Interpretation 8 Scope of IFRS 2. IFRIC 8 clarifies the application of IFRS 2 Share-based Payment to arrangements where an entity makes share-based payments for apparently nil or inadequate consideration. IFRIC 8 is effective for annual periods beginning on or after 1 May 2006, with earlier application encouraged. Deloitte has published a Special Edition of Our IAS Plus Newsletter (PDF 53k) explaining IFRIC 8. You will find links to all past IAS Plus newsletters Here.

27 January 2006: IASB SME Working Group will meet next week
The IASB's Working Group on Small and Medium-sized Entities will meet on 30 and 31 January 2006 at the Crowne Plaza London - St. James's Hotel in London. The Board will begin its review of the content of a substantially complete preliminary staff draft of an Exposure Draft of an International Financial Reporting Standard for Small and Medium-sized Entities (SMEs). The agenda is available on IASB's Website (PDF 43k). The meeting is open to public observation.

26 January 2006: IASB January meeting notes - second day
The International Accounting Standards Board held its monthly Board meeting at its offices in London on Tuesday and Wednesday, 24 and 25 January 2006 (afternoons only both days). Click for Deloitte's Preliminary and Unofficial Notes from the Meeting.

26 January 2006: Non-domestic listed companies may use IFRSs in Korea
South Korea's Financial Supervisory Commission has approved regulatory amendments proposed by the Korea Exchange to allow non-Korean listed companies to use IFRSs or US GAAP instead of Korean Accounting Standards. At 31 December 2005, the World Federation of Exchanges reports that 1,619 domestic and 0 non-domestic companies were listed on the Korea Exchange. Click for Press Release (PDF 145k).

25 January 2006: FASB issues 'fair value option' exposure draft
The US Financial Accounting Standards Board has issued an exposure draft that would provide companies with the option to report selected financial assets and liabilities at fair value. Under the option, any changes in fair value would be included in earnings. FASB's proposed 'fair value option' is similar to the one included in IAS 39 Financial Instruments: Recognition and Measurement. The intent of such an option is to reduce volatility in earnings caused by 'accounting mismatches' when different bases are used for measuring related financial instruments. The ED may be downloaded from FASB's Website. Comment deadline is 10 April 2006. Click for FASB News Release (PDF 12k).

25 January 2006: IFAC ED on corporate code of conduct
The International Federation of Accountants (IFAC) has issued for comment an exposure draft, Guidance for the Development of a Code of Corporate Conduct, proposing guidance to assist professional accountants and others in establishing and implementing codes of conduct in their organisations worldwide. The exposure draft is designed to help professional accountants in profit, not-for-profit, and government organisations to address issues relating to the developing, monitoring, reinforcing, and reporting of a code of conduct. Comment deadline is 15 April 2006. Click to download:

• Exposure Draft (PDF 284k)
• Press Release (PDF 40k)

25 January 2006: IASB January meeting notes - first day
The International Accounting Standards Board held its monthly Board meeting at its offices in London on Tuesday and Wednesday, 24 and 25 January 2006 (afternoons only both days). Click for Deloitte's Preliminary and Unofficial Notes from the Meeting.

25 January 2006: Remaining differences - Singapore FRSs and IFRSs
We have updated our summary of the remaining differences between Singapore Financial Reporting Standards and International Financial Reporting Standards on our Singapore Page to reflect changes made by Singapore's Council on Corporate Disclosure and Governance (CCDG) in January 2006.

23 January 2006: German interpretation on accounting for electronic waste
The German Accounting Standards Board has issued AIC 2 Obligation to Dispose of Electrical and Electronic Equipment. AIC 2 is immediately effective, with application for financial statements for periods ending on 31 December 2005 encouraged. AIC 2 covers those areas that were not addressed by the International Financial Reporting Interpretations Committee in IFRIC 6 Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment. Broadly described, the issues addressed in AIC 2 involve what constitutes the obligating event under IAS 37.17 for recognition of provisions for:

• Historical waste from private households.
• Historical waste from commercial users.
• New waste from private households.
• New waste from commercial users.

23 January 2006: Smooth transition to IFRSs in Australia
The Australian Securities and Investments Commission has released a summary of its latest review of the recently introduced Australian equivalents to International Financial Reporting Standards (AIFRSs). ASIC reviewed disclosures made in financial reports by 1,250 listed companies with balance dates between 30 June and 31 July 2005. ASIC found that "all entities reviewed had successfully provided the required disclosure of the impacts of AIFRSs by explaining the key differences in accounting practices they expected under AIFRSs".

• Only 19 of the companies reviewed concluded that there would be no material impact arising from the adoption of the new standards.
• About 700 of the companies provided disclosure of the quantitative impact for each point of key difference.
• A further 480 companies quantified some of the key differences.

21 January 2006: CESR statement on IFRS accounting policy disclosures
The Committee of European Securities Regulators (CESR) has issued a public statement to remind European securities issuers using IFRSs of the importance of giving clear and transparent disclosure about (a) their use of any of the accounting policy options available under IFRSs and (b) their decisions regarding the determination of accounting policies in the absence of specific IFRS guidance. CESR highlighted four specific situations where transparent disclosure will be particularly relevant for the 2005 annual financial statements because of first-time adoption of IFRSs:

21 January 2006: SEC proposes expanded disclosures

The Securities and Exchange Commission has voted to publish for comment proposed rules that would amend disclosure requirements for:

• executive and director compensation
• related party transactions
• director independence and other corporate governance matters
• security ownership of officers and directors.

20 January 2006: EFRAG recommends endorsement of IFRIC 7
The European Financial Reporting Advisory Group (EFRAG) has recommended that IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies be endorsed by the European Commission for use in Europe. Click to download Endorsement Letter (PDF 85k). EFRAG has also posted on its Website:

• A draft endorsement letter on the Adoption of an Amendment to IAS 21 - The Effects of Changes in Foreign Exchange Rates - Net Investment in a Foreign Operation (comments due 3 February 2006).
• Preliminary views regarding the IASB Discussion Paper Management Commentary (comments due 24 March 2006).

20 January 2006: Model IFRS financial statements in Danish

Deloitte and Touche (Denmark) has published Model IFRS Financial Statements for 2005 in Danish (IFRS Modelregnskab 2005) (PDF 537k).

19 January 2006: IASB issues segment reporting exposure draft

The IASB has issued an Exposure Draft of an International Financial Reporting Standard (IFRS) ED 8 Operating Segments. The proposals are part of the IASB's efforts to converge IFRSs and US GAAP. ED 8 results from the IASB's comparison of International Accounting Standard 14 Segment Reporting with the US standard SFAS 131 Disclosures about Segments of an Enterprise and Related Information. The proposed IFRS would replace IAS 14 and align segment reporting with the requirements of SFAS 131. ED 8 would require an entity to adopt the ‘management approach' to reporting on the financial performance of its operating segments. Generally, the information to be reported would be what management uses internally for evaluating segment performance and deciding how to allocate resources to operating segments. Such information may be different from what is used to prepare the income statement and balance sheet. The proposals would therefore require explanations of the basis on which the segment information is prepared and reconciliations to the amounts recognised in the income statement and balance sheet. The proposed IFRS would apply to the annual financial statements for periods beginning on or after 1 January 2007, with earlier application encouraged. Comment deadline is 19 May 2006. Click for: IASB Press Release Main Features of ED 8

17 January 2006: Report from the January 2006 IFRIC meeting
The International Financial Reporting Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday 12 and 13 January 2006. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting.

12 and 13 January 2006, London Thursday 12 January 2006 Presentation on hedging inflation risk IFRIC received a presentation on whether inflation risk qualifies as a separable component for hedging purposes under IAS 39. The presentation considered why companies want to hedge inflation as a component of interest rate risk, gave an overview of inflation markets, and considered the relationship between inflation and interest rates (including the Fisher equation). The presentation also went through a numerical example of hedging inflation risk as a component of a fixed-rate bond asset. No decisions were made during this session. D15 Reassessment of Embedded Derivatives The purpose of this session was to go through the changes made to IFRIC D15 following the decisions made at the November meeting. A summary of the redrafting is given in the observer notes. A scope section was added to IFRIC D15. This new section will be amended to reflect that contracts with embedded derivatives that have been acquired as part of a business combination accounted for in accordance with IFRS 3 are not within the scope of the interpretation. The consensus wording will be amended so that the wording on whether there has been a change in the contract that has commercial substance is consistent with the wording in IAS 39.11A (rather than being consistent with IAS 16 and IAS 38). It was generally acknowledged that the basis for conclusions was too long, and often simply repeated what was in the interpretation. As a result, it was agreed to delete several paragraphs in the basis for conclusions. The deletions were partly as a result of changing certain aspects of the interpretation, and partly to remove repetitive paragraphs. Going forward, IFRIC agreed to try to keep future bases for conclusions as succinct as possible. Subject to changes agreed in the meeting, and a few editorial changes, IFRIC agreed (with 1 exception) to put this interpretation to the IASB for approval. This would happen at either the January or February meetings. IAS 27 Consolidated and Separate Financial Statements - Separate Financial Statements issued before Consolidated Financial Statements The IFRIC discussed the practicalities affecting preparers and auditors where a jurisdiction requires separate financial statements of a parent to be issued before the consolidated financial statements as IAS 27 requires those separate financial statements to identify the consolidated financial statements to which they relate. IFRIC decided to proceed with the publication of the tentative agenda decision presented by the Staff although some IFRIC members believed additional clarity could be added to the rejection wording to assist constituents with the IAS 27 requirement. Service Concession Arrangements Approach and key milestones The IFRIC considered a paper setting out a proposed framework that the staff believes will address much of the concerns expressed by respondents to the exposure drafts. The proposed broader framework would provide guidance for operators on the accounting treatment of service concession arrangements for each of three categories: lessee, service provider (e.g. construction, funding and operation and maintenance services) and owner. Under these proposals, the interpretations would contain guidance on: Classification of arrangements: expand the interpretations by building off the guidance in D12 to include classification guidance for the each of the above three categories. Application of IFRS: expand the interpretations by building off the guidance in D13-14, to provide application guidance for each of the above three categories. Disclosure: expand the interpretations by building off existing IFRSs disclosure requirements (eg SIC-29, IASs 11, 23 and the financial instruments standards). Because determination of the appropriate accounting treatment (ie classification) is based on professional judgement, disclosure of the distinguishing factors of the arrangements will help users understanding of an entity's financial statements. IFRIC discussed the extent to which the proposed approach would result in the actual broadening of the scope of this project. There seemed to be general consensus that IFRIC should avoid 'scope creep' on this project. Regarding the proposed approach, IFRIC decided not to expand the scope of the service concessions project but to provide sufficient guidance in order to adequately set the context in which the Interpretations should be applied by considering some of the varied forms of these arrangements and how the Interpretations apply or do not apply to them. Staff indicated that the proposed approach may lead to final draft interpretations in Quarter 3 of 2006 - this being dependent on whether there is any actual broadening of the scope of the Interpretations (which is not intended) and an evaluation at that time whether re-exposure of the draft Interpretations is necessary. Intangible asset model - D14 At the September 2005 meeting, the IFRIC directed staff to prepare a paper addressing the double recognition of revenue issue as well as the recognition of profit during the construction phase. The staff presented three views for discussion: View 1 - An exchange takes place View 2 - No exchange takes place View 3 - The exchange transaction takes place at inception The IFRIC discussed the merits of each of these alternatives with some IFRIC members re-iterating their discomfort with the double recognition of revenue. IFRIC decided (7/12) to proceed with View 1 above as this is believed to best reflect the economic consequences of these arrangements. Some IFRIC members noted however that the discomfort of other IFRIC members was a result of the inappropriate application of the 'intangible asset model' to an arrangement that in essence should be accounted for under a 'financial asset model' within the context of the newly devised approach. The staff was asked to explore how the distinction could be clarified to ensure there is no inappropriate classification. Friday 13 January 2006 Information: Due to a discussion at the IFRIC Agenda Committee (Wednesday 11 January 2005), the paper on IFRS 3 Business Combinations - Puts held by minority interests, was taken off the agenda for today's meeting. IFRIC Handbook - Staff proposals for a draft Handbook IFRIC received a presentation on the draft for an IFRIC due process handbook. The handbook is based on the current preface to International Financial Reporting Interpretations Committee and is revised based on a review made last year. The staff commented that the purpose of the IFRIC due process handbook is similar to the due process handbook for the IASB. The staff presented two questions for the IFRIC to consider: Would the IFRIC add additional items or change the current agenda criteria for deciding whether an item should be added to the agenda or not? As meetings for the IFRIC Agenda Committee currently are closed for the public, would the IFRIC like to change this and for the future keep the Agenda Committee meetings in public? The IFRIC debated the agenda criteria as set out in the paper (not available to observers). The staff had amended the current version of the preface with additional criteria taken from EITF procedures. The IFRIC considered specifically the criteria on convergence, and some of the members expressed that convergence as a criterion would be useful for decision-taking. The Chair opposed this suggestion, and stated that the primary intention of the IASB is to develop high quality standards and interpretations, and not necessarily focus on convergence as the primary goal, as should this neither be one of the primary criteria for the IFRIC. Another criterion discussed was the criterion for deciding whether the IFRIC should consider issues 'expected to be completed in the near future'. After a debate the IFRIC suggested that this paragraph could be amended to clarify and reflect the fact that issues is considered whether they should be dealt with even if the IASB have an ongoing project on their agenda. Next the IFRIC considered the question whether IFRIC Agenda Committee meetings should be held in public or if they should proceed to keep these meetings closed. There was a lengthy discussion where IFRIC members considered advantages and disadvantages of keeping the Agenda Committee meetings in public. One of the concerns expressed was that public meetings would increase the pressure for all IFRIC members (also those not part of the IFRIC Agenda Committee) to participate in the meetings. A vote indicated that 7 members were pro keeping Agenda Committee meetings in public, while 4 members voted against this (some members indifferent). The draft will be amended, with the comments from members, and is expected to be presented to the Board and then further to the trustees by March. Customer Loyalty Cards/Programmes - Staff proposal for a draft interpretation The IFRIC considered a paper setting out accounting and measurement on loyalty cards/programmes. This paper is a revisited draft based on the discussion the IFRIC had at the November session. This paper raised two issues for the IFRIC to discuss: The first issue was to consider when to apply paragraph 13 or when to apply paragraph 19 of IAS 18 for recognition. The second issue was how to measure the amount of 'deferred' revenue in cases where paragraph 13 of IAS 18 would be applied. The IFRIC discussed the scope of the presented paper. The debate brought forward that the IFRIC wanted to clarify the scope to make sure that the paper did not exclude too many schemes from being included within the definition of loyalty cards/programmes. As a result of the debate on the scope, some also suggested that there should be a broadening of the scope as it was presented in its current form. On the second issue, the IFRIC considered the measurement approach in the paper. It was debated whether the paper should address measurement at all, as the main focus of this paper should be recognition. After a discussion it seemed to be general consensus among IFRIC members, that measurement should be addressed, but that the guidance provided had to be revisited. After a lengthy discussion, the chair sums up. It was decided that the staff would consider the comments made and should revise the paper before it was brought back to IFRIC at a later stage. This summary is based on notes taken by observers at the IFRIC meeting and should not be regarded as an official or final summary.

16 January 2006: Trustees seek Board member candidates
The International Accounting Standards Committee Foundation is seeking applications for four full-time IASB Board member positions for terms beginning 1 July 2006. The terms of four IASB members will end on 30 June 2006 – Hans-Georg Bruns, Warren McGregor, Geoffrey Whittington, and Tatsumi Yamada. All are eligible for reappointment, but Professor Whittington is not seeking reappointment. Board member qualifications are listed in the Annex of the IASC Foundation's Constitution. Successful new applicants will be asked to serve a five-year term and will be expected to reside in London, where the IASB is located. Interested candidates should send a cover letter and curriculum vitae by 28 February 2006 to Philip Laskawy, Chairman of the Nominating Committee, IASC Foundation, 30 Cannon Street, London EC4M 6XH or by email to Tom Seidenstein, Director of Operations, at tseidenstein@iasb.org. Click for IASCF Announcement (PDF 92k).

16 January 2006: IASB January meeting agenda - two days
The International Accounting Standards Board will hold its Board monthly meeting at its offices in London on Tuesday and Wednesday, 24 and 25 January 2006. The agenda for the meeting is noted below. The Board will meet only on the afternoons of those two days and will not meet on Thursday or Friday 26 or 27 January.

24 and 25 January 2006, London Tuesday 24 January 2006 (afternoon only) Business Combinations II – analysis of comment letters on ED Update from the Recent Financial Instruments and Insurance Working Group Meetings Wednesday 25 January 2006 (afternoon only) Short-term Convergence: Borrowing Costs – transition Performance Reporting – segment A 'sweep issues' Accounting standards for Small and Medium-sized Entities – staff will present to the Board a preliminary draft of major sections of an exposure draft Earnings per Share – treasury stock method IFRIC Update

13 January 2006: Singapore 2005 model financial statements

Deloitte & Touche (Singapore) has published model financial statements and a presentation and disclosure checklist under Singapore Financial Reporting Standards for 2005: 2005 Model Financial Statements (PDF 1,034k, 74 pages) 2005 Presentation and Disclosure Checklist (PDF 1,032k, 137 pages) 2005 Combined Model Financial Statements and Checklist (PDF 867k, 207 pages)

13 January 2006: United Kingdom page updated
We have updated our United Kingdom Page to reflect the activities of the Accounting Standards Board and Auditing Practices Board in the fourth quarter of 2005. The update notes that the European Commission has adopted Standard Wording for European companies to refer to compliance with IFRSs in audit reports and notes to the financial statements. This wording differs slightly from the one published by the APB in Bulletin 2005/04 Auditor's Reports on Financial Statements in Great Britain and Northern Ireland. Both wordings are acceptable and the electronic versions of the two Bulletins will be amended to include the EC wording as an alternative by way of a footnote.

12 January 2006: IFRIC Interpretation on scope of IFRS 2
The International Financial Reporting Interpretations Committee (IFRIC) has issued a final Interpretation – IFRIC 8 Scope of IFRS 2. IFRIC 8 clarifies that IFRS 2 Share-based Payment applies to arrangements where an entity makes share-based payments for apparently nil or inadequate consideration. IFRIC 8 explains that, if the identifiable consideration given appears to be less than the fair value of the equity instruments granted or liability incurred, this situation typically indicates that other consideration has been or will be received. IFRS 2 therefore applies. IFRIC 8 is effective for annual periods beginning on or after 1 May 2006. Earlier application is encouraged. Click for Press Release (PDF 59k).

12 January 2006: IFRIC draft on interim financial reporting and impairment
The International Financial Reporting Interpretations Committee (IFRIC) has released for public comment a draft Interpretation D18 Interim Financial Reporting and Impairment. The proposed Interpretation would clarify the interaction between IAS 34 Interim Financial Reporting and two other standards, IAS 36 Impairment of Assets and IAS 39 Financial Instruments: Recognition and Measurement, and the effect of that interaction on subsequent interim and annual financial statements. The proposed Interpretation clarifies that an entity cannot reverse an impairment loss recognised in a previous interim period in respect of goodwill, an investment in an equity instrument or a financial asset carried at cost. Click for Press Release (PDF 53k).

12 January 2006: EU bank regulators develop IFRS reporting framework
The Committee of European Banking Supervisors (CEBS) has published guidelines establishing a standardised Framework for Consolidated Financial Reporting (FINREP) for credit institutions operating in the EU. FINREP is designed for credit institutions that use International Financial Reporting Standards (IFRSs) for their published financial statements, and that have to provide similar information in the periodic 'prudential reports' they are required to submit to their supervisory authorities. "The introduction of international accounting and reporting standards provides an opportunity to converge and ultimately harmonise prudential reporting in Europe." The framework is not intended to cover all aspects of IFRSs; rather it focuses on information that is important or relevant for prudential purposes. FINREP is intended to enable credit institutions to use the same standardised data formats and data definitions for prudential reporting in all countries where the framework will be applied. CEBS advises the European Commission on banking policy issues, promotes convergence of supervisory practise across European Union, and fosters consistent application of EC banking legislation. Click to download:

• Framework (PDF 649k).
• Implementation Guidelines (PDF 352k).
• Cover Note to the Framework (PDF 123k).
• Public Consultation Summary (PDF 386k).
• CEBS Press Release (PDF 136k).

12 January 2006: Changes to financial reporting framework in Singapore
In 2002, the Singapore government created the Council on Corporate Disclosure and Governance (CCDG) as the accounting standard setter for all companies incorporated in Singapore. Since then, each year Deloitte & Touche (Singapore) has published a booklet about the recent Changes to The Financial Reporting Framework in Singapore. We have just posted the 2005 edition:

• The 2004 Edition of the Changes Booklet (PDF 267k) covered a series of improved and new Financial Reporting Standards (FRSs) introduced in 2004, majority of which are effective in 2005. For most entities in Singapore, 2005 will be the first accounting period from which they need to address the requirements of those revised and new standards, and they should have by now implemented, or are in the process of implementing those changes.
• The 2005 Edition of the Changes Booklet (PDF 207k) reflects a less hectic pace of change with respect to FRSs. However, some significant changes in regulatory reporting have arisen from the Companies (Amendment) Act 2005 that will affect all Singapore companies. The auditing and corporate governance regimes are also undergoing a wave of changes. Therefore the 2005 Edition highlights some significant changes in Singapore Standards on Auditing (SSA) and their implications on Singapore companies. It also covers changes in Code of Corporate Governance applicable for Singapore listed companies, and some important proposed changes to the listing rules. As in the past editions, a list of FRS and INT FRS is included, as is a list of the new/revised auditing pronouncements.

CCDG has now issued a set of accounting standards and interpretations that are almost identical to the current set of IFRSs, though some differences remain. You will find a list of those differences on our Singapore Page.

12 January 2006: Compliance with IFRSs in Australia and New Zealand
Both Australia and New Zealand have been adopting 'equivalents' of IFRSs as their national financial reporting framework. While audit reports will refer to Australian or New Zealand Equivalents of IFRSs, those standards are intended to result in financial statements that are fully IFRS compliant. Both countries have adopted paragraph 14 of IAS 1, which requires that:

11 January 2006: Canada approves plan for convergence with IFRSs
Canada's Accounting Standards Board (AcSB) has ratified a new Strategic Plan for the Direction of Accounting Standards (PDF 139k) that will significantly affect the way financial reporting will be carried out in Canada in the future. The AcSB will pursue separate strategies for three major categories of reporting entities: public companies, private businesses and not-for-profit organisations.

The AcSB expects to publish a final version of its strategic plan by 31 March 2006.

11 January 2006: Accounting Roundup for December 2005 posted
We have posted the December Edition of Accounting Roundup (PDF 277k) published by Deloitte & Touche LLP (USA). Topics covered in this issue include: 

10 January 2006: Item added to IFRIC 12-13 January 2006 agenda
One additional item has been added to the agenda of the 12-13 January 2006 IFRIC meeting that we had posted in our News Story of 6 January 2006: A recommendation by the Agenda Committee regarding IFRS 3 Business Combinations – Puts held by minority interests, which will be discussed on 13 January. We modified the earlier news story.

10 January 2006: FEI top 10 financial reporting issues for 2006
Financial Executives International has compiled a list of the Top 10 Financial Reporting Challenges for 2006. While the list is written primarily in a US reporting context, nearly all of the challenges on the list relate to the IASB as well, and the FEI commentary expressly refers to the IASB in its descriptions of several of them:

10 January 2006: SEC will consider disclosure amendments
At its meeting on 17 January 2006, the US Securities and Exchange Commission will consider whether to propose amendments to the disclosure requirements for executive and director compensation, related party transactions, director independence and other corporate governance matters, and securities ownership of officers and directors. The Commission will also consider whether to propose amendments to require most of the disclosure in proxy and information statements to be provided in plain English. Click for SEC Announcement (PDF 67k). The meeting will be Webcast.

10 January 2006: Insurance Working Group meets this week
The IASB's Insurance Working Group will meet in London on Thursday and Friday, 12 and 13 January 2006. The agenda is available on IASB's Website. The meeting is open to public observation.

9 January 2006: Temporary SME standards in Philippines
The Philippines has adopted IFRSs in full as its national standards starting in 2005. However, on 22 December 2005, the Philippines Securities and Exchange Commission issued PAS 101 entitled Financial Reporting Standards For Non-Publicly Accountable Entities (NPAEs), as approved by the Accounting Standards Council, to provide temporary relief to qualified small and medium-sized entities from applying the new accounting standards. Qualifying entities may choose instead to use the former Philippines Accounting Standards that were in effect in December 2004. That option will be available for 2005 through 2007 unless revoked earlier. The SEC indicated that it is taking this action in recognition of the IASB's SME Project. The SEC adopted the IASB's draft criteria for distinguishing publicly accountable entities from non-publicly accountable – publicly accountable if (a) publicly listed, (b) holds assets in a fiduciary capacity, (c) public utility, or (d) economically significant. For Philippines purposes, economic significance means total assets over Php 250 million (approximately US$ 5 million) or total liabilities over Php 150 million in 2004. Click for Philippines SEC Memorandum (PDF 151k).

8 January 2006: New Zealand will adopt International Standards on Auditing
The New Zealand Institute of CAs Professional Practices Board (PPB) has decided to adopt International Standards on Auditing (ISAs) as well as the other pronouncements of the International Auditing and Assurance Standards Board, for use in New Zealand. The Standards will be collectively referred to as New Zealand Equivalents to International Standards. The PPB notes that it may modify the International Standards "by making additions, deletions, or other amendments to the extent permitted by the IAASB's guidance for achieving international convergence with the International Standards...." All modifications will be clearly identified and subject to the PPB's due process. The PPB will issue exposure drafts inviting comment on the IAASB standards in 2006 and 2007. The final standards will be submitted to the NZICA Council for approval in 2007, with a single proposed effective date of 1 January 2008. Click for PPB Announcement (PDF 128k).

7 January 2006: New IASCF trustee list posted
A new chairman and seven new trustees of the IASC Foundation took office on 1 January 2006. We have posted an Updated List of IASCF Trustees. One vacancy remains. Click here for More Info about the IASCF.

7 January 2006: Regulatory and IFRS reporting by Australian insurers
The Australian Prudential Regulation Authority (APRA) has amended its regulatory reporting requirements for life insurance companies to reflect the adoption of IFRSs in Australia. The changes align regulatory reporting with IFRS reporting where appropriate. At the same time, the new requirements ensure that APRA continues to receive consistent and standardisd information to monitor prudential strength following the introduction of IFRSs. The new rules took effect from 31 December 2005. APRA has granted a six-week extension for filing the first reports under the new regime. Click for APRA News Release (PDF 67k). In an earlier news story Dated 1 December 2005, we outlined other APRA proposals relating to the adoption of IFRSs in Australia by deposit-taking institutions and general insurers. Those proposals address such issues as fair value measurement, employer sponsored defined benefit superannuation fund surpluses and deficits, and loan loss provisioning. Comments on that package are due by 16 January 2006. Link to APRA's Website.

6 January 2006: Agenda for IFRIC meeting 12-13 January 2006
The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 12 January and Friday 13 January 2006. The agenda for the meeting is below:

Thursday 12 January 2006 Introduction - Opening remarks; administrative matters; minutes of the December 2005 IFRIC meeting Hedging Inflation Risk - Presentation IFRIC D15 Reassessment of Embedded Derivatives – Staff proposal for a final Interpretation Review of Tentative Agenda Decision IFRS 6 Exploration for and Evaluation of Mineral Resources - Application of ‘full cost method' Recommendations by Agenda Committee regarding requests for IFRIC agenda items: Separate financial statements issued before consolidated financial statements Liability/equity classification Service Concession Arrangements - Project plan; double recognition of revenue Friday 13 January 2006 (Morning Only) IFRIC Handbook – Staff proposals for a draft Handbook Customer Loyalty Programmes – Staff proposal for a draft Interpretation Recommendations by Agenda Committee regarding requests for IFRIC agenda items (continued from Thursday): IFRS 3 Business Combinations – Puts held by minority interests

6 January 2006: Financial Instruments Working Group meets next week
The IASB's Financial Instruments Working Group will meet in London on Monday and Tuesday, 9 and 10 January 2006. Discussions on Monday 9 January are devoted to derecognition. Discussions on Tuesday 10 January will focus on fair value measurement and day-one gains. The agenda is available on the IASB's Website. The meeting is open to public observation.

5 January 2006: Proposed international audit standard on related parties
The International Auditing and Assurance Standards Board has released for comment a proposed revision to International Standard on Auditing (ISA) 550 Related Parties. The current standard requires the auditor to perform certain specified procedures. The proposed standard would extend current practice by requiring the auditor to obtain an understanding of the nature and business rationale of an entity's related party relationships and transactions sufficient to identify, assess, and respond to the risks of material misstatement resulting from them. It also places greater emphasis on the difficult task for the auditor of attempting to identify related party relationships and transactions not identified or disclosed by management. The revision also places new emphasis on evaluating the effects of related party relationships and transactions on the financial statements, even in circumstances where the financial reporting framework does not establish related party accounting or disclosure requirements. Comments on the exposure draft are due by 30 April 2006. Click for:

• IAASB Press Release (PDF 83k).
• Exposure Draft (PDF 214k).

5 January 2006: Reference to reporting framework in Europe
The European Federation of Accountants (FEE) has urged the European accounting profession to use a standard reference to the financial reporting framework in the EU in their audit reports and in the basis of preparation note to financial statements of companies using 'endorsed' IFRSs. FEE notes that the European Commission has adopted the following wording (reported in our news story of 23 December 2005): "in accordance with International Financial Reporting Standards as adopted by the EU" or "in accordance with IFRSs as adopted by the EU". FEE also urges that the following three disclosures be included:

• It should be strongly encouraged to provide an explanation in the notes to the accounts as to how companies' accounting policies depart from full IFRS to enable investors to compare the results of companies within and outside the EU.
• It should be encouraged that companies also state that they are in compliance with full IFRS (additional disclosure, not as the legal financial reporting framework).*
• It should be strongly encouraged to provide an explanation of how companies are in compliance with 'International Financial Reporting Standards as adopted by the EU' or 'IFRSs as adopted by the EU' and full IFRS as issued by the IASB in cases where the two frameworks are recognised to be different.

5 January 2006: IASCF 'convergence conference' set for April
The International Accounting Standards Committee (IASC) Foundation will host a two-day conference International Financial Reporting Standards–Implications of Convergence in Frankfurt on 6 and 7 April 2006. The conference has been designed as part of the IASC Foundation's education initiative to provide an opportunity for preparers, auditors, analysts and investors to exchange views and to discuss with standard-setters and regulators the IASB-FASB convergence programme. The conference will also provide a forum for discussion of implementation issues. Click for Press Release (PDF 65k).

3 January 2006: Accounting Roundup – 2005 in review
We have posted Accounting Roundup Year in Review – 2005 (PDF 693k), a newsletter published by Deloitte & Touche LLP (United States). This 38-page edition summarises the final guidance issued by standard setters through November of 2005, with links to guidance finalised in December. Many of the items are effective or will be effective in the near future. For each item, there is a hyperlink within the PDF file to supporting information. The following items are included with respect to International Financial Reporting Standards:

• SEC Rule, First-time Application of International Financial Reporting Standards
• IFRS 7 Financial Instruments: Disclosures and Amendments to IAS 1 Presentation of Financial Statements: Capital Disclosures
• IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
• IFRIC 6 Liabilities Arising from Participating in a Specific Market: Waste Electrical and Electronic Equipment
• Amendment to IAS 39 Financial Instruments: Recognition and Measurement – The Fair Value Option
• Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Cash Flow Hedge Accounting of Forecast Intragroup Transactions
• Amendment to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4 Insurance Contracts
• Amendments to IFRS 1 First-time Adoption of IFRSs and IFRS 6 Exploration for and Evaluation of Mineral Resources
• Withdrawal of IFRIC 3 Emission Rights

1 January 2006: Another record year for IAS Plus

In 2005 we had over 1,200,000 visitors! Thank you for making us, once again, the #1 source on the Internet for information about international financial reporting. We wish you a very happy new year.