27 October 2006: IPSASB issues ED on employee benefits
The International Public Sector Accounting Standards Board (IPSASB) has published an exposure draft (ED 31 Employee Benefits) that proposes requirements by which governments and other public sector entities should account for employee benefits. ED 31 is based on IAS 19 Employee Benefits.

• IPSASB Exposure Draft 31 (PDF 377k)
• IPSASB Press Release (PDF 84k)

27 October 2006: IASB posts 'near-final' segments and IFRS 2 drafts
The IASB has posted on its Website near-final drafts of:

• IFRS 8 Operating Segments
• IFRIC X - IFRS 2: Group and Treasury Share Transactions

27 October 2006: 2006 model annual reports under A-IFRSs

Deloitte (Australia) has published Consolidated Model Annual Reports for 2006 under Australian equivalents of IFRSs. Key highlights in this edition include:

• illustrative AASB 7 disclosures (equivalent to IFRS 7) are included for early adopters of AASB 7. Like IFRS 7, AASB 7 is effective 1 January 2007. Three of the Top 50 ASX listed entities adopted AASB 7 in their first A-IFRS annual report;
• illustrative disclosures of the impacts of accounting pronouncements that must be applied for the first time. Key changes that may affect you include the revised rules on fair value through profit and loss for financial instruments, financial guarantee contracts, and business combinations involving entities under common control;
• illustrative wording of the impacts of accounting pronouncements that are not yet effective, to assist you in considering the extent of the impacts of these pronouncements on your organisation; and
• revamped income tax and tax consolidation disclosures to assist you with the preparation of your organisation's income tax disclosures.
• expanded illustrative business combination disclosures to cover such matters as where the initial accounting can be only provisionally determined and potential intangible assets not separately recognised from goodwill.
• example accounting policies appropriate for mining entities.
• an illustrative Statement of Changes in Equity.

Consolidated Model Annual Report for 2006 under Australian-IFRSs
	Section A - Introduction (329k) – New and revised accounting pronouncements, reporting deadlines and other useful information Section B - Model Annual Report (1,353k) – An illustrative model annual report Section C - Appendix to the model annual report (412k) – Illustrative AASB 7 disclosures for early adopters Section D - Model concise report (417k)

27 October 2006: Update on accounting standards in Taiwan
The Accounting Research and Development Foundation (ARDF) of Taiwan recently sponsored the 2006 International Conference on Accounting Standards in Taipei. The ARDF, established in 1984, has been designated by the Taiwan Securities and Futures Bureau to develop Taiwanese GAAP. The chairman of the Foundation, Dr Rong-Ruey Duh, made a comprehensive keynote presentation on Convergence with IFRSs: The Experience of Taiwan (PDF 111k). The presentation reviews the process for setting accounting standards in Taiwan, the current state of convergence with IFRSs, the factors affecting convergence, and the outlook in Taiwan. We are pleased to post the presentation with the kind permission of Dr Duh. The presentation is copyright 2006 by the Accounting Research and Development Foundation, Taiwan, all rights reserved, and should not be reproduced without the author's permission.

26 October 2006: Summary record of ARC 26 September 2006 meeting

The European Commission has posted the summary record of the 26 September 2006 Meeting of the Accounting Regulatory Committee (PDF 43k). Matters discussed included the following:

25 October 2006: IASB posts 'near-final' service concessions draft
The IASB has made the Near-final Draft of IFRIC 11 Service Concession Arrangements available on its website (PDF 494k, download from IASB website). It is our current understanding that the IASB will invite those constituents who commented on the draft interpretations (D12, D13, and D14) to attend a public meeting in November during the Board meeting week (week of 13 November 2006) to provide comments on the posted draft. The IASB expects to approve the final interpretation later that week. There is no public call for comments on the IASB website. Our Project Page has details of IFRIC's deliberations on service concessions over the past three years. The Deloitte Observer Notes from the Board's October 2006 meeting stated:

25 October 2006: Reminder about three upcoming comment deadlines

We remind you that the deadlines are approaching for responding to the following comment documents: Comment document Deadline IFRIC Draft Interpretation D19: IAS 19–The Asset Ceiling: Availability of Economic Benefits and Minimum Funding Requirements 31 October 2006 Discussion Paper: Preliminary Views on an improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information 3 November 2006 IFRIC Draft Interpretation D20: Customer Loyalty Programmes 6 November 2006

25 October 2006: SEC Chairman demonstrates benefits of XBRL
In a keynote speech at the 39th Annual Securities Regulation Seminar in Los Angeles, US SEC Chairman Christopher Cox demonstrated how to use three different software packages to download and analyse financial and other data reported to the SEC in XBRL format. Chairman Cox's speech is titled Giving Investors the Information They Need, In a Form They Can Use (PDF 69k). He demonstrated the XBRL software by using actual XBRL data filed with the SEC by voluntary XBRL reporting companies. The three products are (click for their websites):

• Hitachi's Xinba XBRL Reader and Analyzer
• SavaNet XBRL Reader
• I-Metrix from EDGAR Online

24 October 2006: Heads Up on PCAOB Q&A and IRS initiative

Deloitte & Touche LLP (United States) has published a Heads Up newsletter summarising the following items:

• the PCAOB's recently issued staff questions and answers on auditing the fair value of share options (there's a link to download the Q&A in our news story of 17 October 2006), and
• the new IRS initiative to resolve uncertain tax positions before entities adopt FASB Interpretation 48 Accounting for Uncertainty in Income Taxes–an interpretation of FASB Statement No. 109.

24 October 2006: Japanese plan for convergence toward IFRSs
The Accounting Standards Board of Japan (ASBJ) has released its Project Plan Concerning the Development of Japanese Accounting Standards (PDF 107k) to explain the status of its initiatives toward convergence with IFRSs. The plan has been developed, in part, in response to the June 2005 Report to the European Commission from the Committee of European Securities Regulators (CESR) (PDF 1,063k), which identified 26 matters for which 'remedies' should be required if the European Commission decides to continue to allow Japanese companies to trade on European securities markets using financial statements prepared in conformity with Japanese accounting standards. The ASBJ's plan outlines the work planned to be achieved through the end of 2007 and the anticipated convergence status as of the beginning of 2008 for each of the 26 issues identified by CESR. The ASBJ has also released a Table Summarising the Project Plan (PDF 62k) as an attachment to its overall project plan.

23 October 2006: Deloitte 2006 review emphasises our support for IFRSs

Deloitte Touche Tohmatsu's Worldwide Member Firms 2006 Review (PDF 3,445k) reports worldwide revenues for the year ended 31 May 2006 of US$20 billion, an increase of 11.5 percent in local currencies. The 84-page annual review addresses various issues currently being debated across capital markets that consider how best to meet investor demand for reliable and timely financial data. Deloitte reiterated our strong support for International Financial Reporting Standards, for national adoption of IFRSs as a whole without modifications, and for convergence of IFRSs and US GAAP:

23 October 2006: Deloitte comments on IFRIC tentative agenda decisions
At each of its meetings, the International Financial Reporting Interpretations Committee considers recommendations of its Agenda Committee about potential IFRIC agenda topics. When the IFRIC initially decides Not to Put a Topic on its Agenda, they report that tentative decision in the IFRIC Update newsletter and invite comments before making a final agenda decision. In September 2006, Deloitte adopted a policy of providing written comments to the IFRIC on all tentative agenda decisions. We will post on IAS Plus those Deloitte letters considered particularly significant, including those on which we disagree on a matter of principle. We recently submitted five letters to the IFRIC in response to their September 2006 tentative agenda decisions, and we believe that the following letter deals with a significant matter of principle: IAS 39 – Testing of hedge effectiveness on a cumulative basis (PDF 122k). An excerpt:

23 October 2006: Agenda for 1-3 November 2006 IFRIC meeting
The International Financial Reporting Interpretations Committee will meet at the IASB's offices in London on Wednesday 1 November, Thursday 2 November, and Friday 3 November 2006. The tentative agenda for the meeting is shown below. Note that the meeting begins on Wednesday afternoon 1 November, one day earlier than originally announced.

1-3 November 2006, London Wednesday 1 November 2006 (afternoon only) Draft Handbook on IFRIC Due Process – Review of responses Thursday 2 November 2006 Opening remarks and administrative matters IAS 18 Revenue Real estate sales Revenue recognition in respect of initial fees paid by a fund manager Review of tentative agenda decisions published in July and September IFRIC Update 1. IFRS 2 Share-based Payment – Fair value measurement of post-vesting transfer restrictions 2. IAS 39 Financial Instruments: Recognition and Measurement – Valuation of electricity derivatives 3. IAS 32 Financial Instruments: Presentation – Puts and forwards held by minority interests and IFRS 3 Business Combinations: Are puts or forwards received by minority interests in a business combination contingent consideration? 4. SIC-12 Consolidation of Special Purpose Entities – Relinquishment of control 5. IAS 39 Financial Instruments: Recognition and Measurement – Definition of a derivative: indexation on own EBITDA or own revenue 6. IAS 32 Financial Instruments: Presentation – Foreign currency instruments exchangeable into equity instruments of the parent entity of the issuer 7. IAS 32 Financial Instruments: Presentation – Changes in the contractual terms of an equity instrument resulting in it being reclassified to financial liability 8. IAS 1 Presentation of Financial Statements – Whether the liability component of a convertible instrument should be classified as current or non-current 9. IFRS 2 Share-based Payment – Incremental fair value to employees as a result of unexpected capital restructurings 10. IAS 16 Property, Plant and Equipment – Revaluation of investment properties under construction 11. IAS 32 Financial Instruments: Presentation – Classification of a financial instrument as liability or equity 12. IFRS 2 Share-based Payment – Employee benefit trusts in the separate financial statements of the sponsor 13. IFRS 7 Financial Instruments: Disclosures – Presentation of 'net finance costs' on the face of the income statement 14. IAS 11 Construction Contracts – Allocation of profit in a single contract 15. IAS 38 Intangible Assets – Classification and accounting for SIM cards 16. IAS 38 Intangible Assets – Adoption of IAS 38 (revised 2004) 17. IAS 39 Financial Instruments: Recognition and Measurement – Testing of hedge effectiveness on a cumulative basis Friday 3 November 2006 Proposals for new IFRIC agenda items IAS 41 Agriculture – Recognition and measurement of biological produce in accordance with IAS 41 IAS 21 The Effects of Changes in Foreign Exchange Rates – Hedging a net investment IAS 38 Intangible – Treatment of catalogues and other advertising costs Status reports IAS 19 issues Demergers and other in specie dividends Derecognition Recommendations not to take items onto the IFRIC agenda IAS 39 Financial Instruments: Recognition and Measurement – Short trading IAS 39 Financial Instruments: Recognition and Measurement/IAS 27 Consolidated and Separate Financial Statements – Financial instruments puttable at an amount other than fair value IAS 19 Employee Benefits – 'Special wage tax' Agenda Committee matters

23 October 2006: Restructuring the IVSC

At the 2006 Annual General Meeting of the International Valuation Standards Committee in Beijing on 26 September 2006, IVSC members approved a plan to restructure the IVSC based on the following principles:

• The importance of an independent and transparent standard setting process
• The development of the International Valuation Standards to embrace the valuation of all assets and liabilities in response to market needs
• The call for a wider advisory constituency
• The need to protect the public interest by assisting in the development of high quality practices by the world's valuers
• The responsibility to assist the development of the profession in developing countries
• The requirement for adequate and sustainable funding for the IVSC.

23 October 2006: Deloitte comments on ED on puttable instruments

Deloitte has submitted to the IASB our comments on the IASB's Exposure Draft ED: Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation (PDF 139k). Over overall view:

21 October 2006: Accounting Roundup – third quarter 2006 review
We have posted Accounting Roundup: Third Quarter in Review–2006 (PDF 398k), prepared by the National Office Accounting Standards and Communications Group of Deloitte & Touche LLP (USA). During the third quarter of 2006, accounting standard setters and regulators issued a number of pronouncements (including final FASB Statements, FSPs, EITF consensuses, SEC rules, PCAOB rules, and IFRSs) affecting accounting, financial reporting, and corporate governance. Accounting Roundup: 3rd Quarter in Review–2006, presents brief descriptions of those pronouncements, as well as certain other regulatory and professional developments in accounting and financial reporting. The articles included derive from issues of the Accounting Roundup newsletters published in the third quarter of 2006, with updates added where appropriate. You will find past issues Here.

21 October 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 October 2006 meeting:

• Amendments to IAS 14 Segment Reporting
• Amendments to IAS 37 Non-Financial Liabilities
• Business Combinations Phase II
• Conceptual Framework
• Extractive Industries
• Employee Benefits Including Pensions
• Financial Statement Presentation
• IFRIC: Service Concession Arrangements
• IFRIC: IFRS 2–Group and Treasury Share Transactions
• IFRS for Small and Medium-sized Entities
• Insurance Contracts - Phase 2
• Intangible Assets
• Related Party Disclosures
• Revenue Recognition

20 October 2006: Notes from fourth day of October IASB meeting
The International Accounting Standards Board held its October 2006 Board meeting at its offices, 30 Cannon Street, London, on Monday through Thursday 16-19 October 2006. Click here for the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

19 October 2006: IPSASB proposal on impairment of cash-generating assets
The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has issued an exposure draft of a proposed International Public Sector Accounting Standard (IPSAS): ED 30 Impairment of Cash-Generating Assets. The IPSASB has already addressed assets that are held and operated primarily for the purposes of service delivery when it issued IPSAS 21 Impairment of Non-Cash-Generating Assets in December 2004. ED 30 deals with cash-generating assets held and operated by public sector entities that are not Government Business Enterprises. Comment deadline is 28 February 2007. Click for:

• ED 30 Impairment of Cash-Generating Assets (PDF 271k)
• Press Release (PDF 81k)

18 October 2006: Heads Up on SEC staff views
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 Regulations Committee is composed of representatives from various public accounting firms, industry, and academia. 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. Deloitte & Touche LLP (United States) has published a nine-page Heads Up newsletter summarising the meeting. Click to Download the Heads Up Newsletter (PDF 111k). [Note: This link is to an updated version of this Heads Up newsletter issued 5 December 2006.]

18 October 2006: Notes from third day of October meeting
The International Accounting Standards Board held its October 2006 Board meeting at its offices, 30 Cannon Street, London, on Monday through Thursday 16-19 October 2006. Click here for the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

17 October 2006: Notes from second day of October 2006 IASB meeting
The International Accounting Standards Board held its October 2006 Board meeting at its offices, 30 Cannon Street, London, on Monday through Thursday 16-19 October 2006. Click here for the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

17 October 2006: PCAOB guidance on audits of share options
The US Public Company Accounting Oversight Board has published staff guidance on auditing the fair value of share options granted to employees. The guidance is in the form of Staff Questions and Answers on applying the fair value measurement provisions of FASB Statement 123R Share-Based Payment, which became effective 15 June 2006. FAS 123R is very similar to IFRS 2 Share-based Payment. Click for:

• PCAOB Staff Q&A on Audits of Stock Options (PDF 112k)
• PCAOB Press Release (PDF 57k)

17 October 2006: Notes from first day of October 2006 IASB meeting
The International Accounting Standards Board held its October 2006 Board meeting at its offices, 30 Cannon Street, London, on Monday through Thursday 16-19 October 2006. Click here for the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

15 October 2006: India is studying full adoption of IFRSs
The Institute of Chartered Accountants of India (ICAI) has set up a task force to explore the possibility of adopting all International Financial Reporting Standards in full, without modification, as Indian standards. The 11-member task force is chaired by S C Vasudeva, chairman of ICAI's accounting standard board. It will develop a concept paper on adoption of IFRSs in India. Currently, many ICAI standards reflect modifications of IFRSs. The task force was announced in the October 2006 message to members from the President of the ICAI, T N Manoharan:

14 October 2006: SEC Commissioner discusses reconciliations
In Remarks Before the Institute of European Affairs (PDF 77k) in Dublin recently, US SEC Commissioner Paul S. Atkins spoke about the adoption of IFRSs in Europe, the reconciliation to US GAAP for SEC registrants using IFRSs, and the possibility of the European Commission requiring a reconciliation to IFRSs for companies that trade in Europe and that prepare US GAAP financial statements. Here is an excerpt from Commissioner Atkins's comments:

13 October 2006: Commissioner McCreevy's remarks on globalised auditing

In a speech titled EU Audit Regulation and International Cooperation, EU Internal Markets Commissioner Charlie McCreevy focused on the implementation of the EU Directive on statutory audit and the attention is being paid to international issues within this process. An excerpt: Companies and audit firms have long since gone global. It is us – the legislators and regulators – who have to adapt to this fact. When we design the regulatory framework in our own jurisdictions we also have to think about the effects this will have on others. We live in a world of spill-overs. Rules passed in the EU affect US business and vice-versa. This insight has to be part of the regulatory process right from the start. Click for: Commissioner McCreevy's Speech (PDF 73k), Directive 2006/43/EC on Statutory Audits of Annual Accounts and Consolidated Accounts (full text, PDF 218k) IAS Plus Summary of New Audit Directive

13 October 2006: World Congress opens in one month
More than 5,000 delegates will convene at the 17th World Congress of Accountants, which opens on 13 November 2006, and continues through 17 November 2006, in Istanbul, Turkey. Workshop and plenary sessions will be organised around the theme Generating Economic Growth and Stability Worldwide. Session topics will include generating economic growth and stability through the accounting profession in the developing nations, capital markets stability worldwide and the accounting profession, and the role of professional accountants in business in contributing to value creation worldwide. For more information go to WCOA 2006 Website.

13 October 2006: A few changes to IASB October meeting agenda

We posted the agenda of the IASB's October 2006 Board meeting in our News Story of 5 October 2006. The Board has announced the following changes to that agenda. As a result of those changes, the Board will not meet on Friday 20 October 2006.

• Education session on interest margin hedging postponed
• IFRS 2 Share-based Payment has moved from Friday 20 October to Wednesday 18 October
• Annual improvements moved from Friday 20 October to Tuesday 17 October
• Accounting standards for small and medium-sized entities will begin slightly earlier on Wednesday 18 October

12 October 2006: PCAOB Chairman addresses auditor oversight
Mark W. Olson, Chairman of the US Public Company Accounting Oversight Board (PCAOB), spoke on Auditor Oversight and its Implications on the Resilience of our Capital Markets at the FEE Conference on Audit Regulation in Brussels today. Click to Download Chairman Olson's Remarks (PDF 100k). Here is an excerpt:

11 October 2006: Update on accounting standards in Pakistan
Asad Ali Shah, a partner in the Deloitte Touche Tohmatsu member firm in Pakistan, spoke on Implementation of IFRS and SME Standards–Pakistan Experience at a meeting of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) in Geneva earlier this week. ISAR is sponsored by the United Nations Conference on Trade and Development. Click to download Mr Shah's Presentation (PDF 36k).

12 October 2006: Agenda for joint IASB-FASB meeting
The International Accounting Standards Board will hold a joint meeting with the US Financial Accounting Standards Board at FASB's offices in Norwalk, Connecticut USA on Monday and Tuesday, 23 and 24 October 2006. The joint meeting agenda is below. Agenda papers for the meeting can be Downloaded from the IASB Website. If you want to listen to the webcast, please visit the FASB Website Board Meetings Page.

11 October 2006: Reminder about comment deadline on puttable instruments

We remind you that the deadline for responding to the IASB's Exposure Draft Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation is 23 October 2006. Click for: Information about the Project IASB Press Release (PDF 67k)

11 October 2006: 'An EU Integrated Globalised World'

In a speech titled Building an EU Integrated Globalised World (PDF 80k) before the World Congress of Financial Executives in Berlin, EU Internal Markets Commissioner Charlie McCreevy touched on several IFRSs-related matters. He noted that Japan is making progress in converging its accounting standards with IFRSs. And he mentioned that the European Commission will be addressing implementation of global standards including IFRSs and Basel II.

10 October 2006: IASB will form an employee benefits working group
The International Accounting Standards Board is seeking members for a new Working Group to help in its new project on Employee Benefits. The project, to be conducted in two phases, will be a comprehensive review of the accounting required by IAS 19 Employee Benefits. The first phase will consider revisions that would achieve significant improvements in the short term, with a view to an interim standard being issued in three or four years' time. As the first step in its due process the IASB intends to publish a discussion paper in 2007. The issues to be included in the first phase of the project are:

• accounting for intermediate risk plans (including cash balance plans), including definition of defined benefit and defined contribution arrangements
• smoothing and deferral mechanisms
• presentation and disclosure
• treatment of settlements and curtailments.

8 October 2006: Papers from UK conceptual framework public meeting
On 21 September 2006, the United Kingdom Accounting Standards Board (ASB) hosted a public meeting on the proposals in the IASB's and FASB's joint preliminary views discussion paper The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information. The roundtable was chaired by Ian Mackintosh, Chairman of the ASB. To provide a context for the roundtable, the ASB prepared a background paper discussing some of the issues arising from the preliminary views paper. That paper and other papers and presentations of roundtable participants have been posted to The ASB's Website.

7 October 2006: Wording of audit reports on IFRS-compliant statements
The United Kingdom Auditing Practices Board has published Bulletin 2006/6 Audit Reports on Financial Statements in the United Kingdom. Bulletin 2006/6 provides illustrative examples of both unmodified and modified auditor's reports of financial statements of companies incorporated in the United Kingdom for periods commencing on or after 1 April 2005. The updated examples of auditors' reports included in the Bulletin take account of the revised standard formulation for expressing compliance with IFRSs as adopted by the European Union. The sample audit reports include reports on:

• Group financial statements that are prepared using 'IFRSs as adopted by the European Union'
• Group financial statements that comply with both 'IFRSs as adopted by the European Union' and 'IFRSs as issued by the International Accounting Standards Board' (sometimes called 'dual reporting').

6 October 2006: PCAOB standards-setting priorities for 2007

The Standing Advisory Group of the US Public Company Accounting Oversight Board (PCAOB) met on 5 October 2006. At that meeting, PCAOB Chief Auditor Thomas Ray outlined the PCAOB's standards-setting priorities for 2007:

6 October 2006: Accounting Roundup – September 2006

We have posted the September 2006 Edition of Accounting Roundup (PDF 329k) published by Deloitte & Touche LLP (USA). Topics covered in this issue include:

6 October 2006: Heads Up on FASB's new pensions standard
In our news story of 30 September 2006 we reported on FASB Statement No. 158 Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans. Deloitte & Touche LLP (United States) has published a new edition of the Heads Up newsletter summarising FASB's new standards. Statement 158 requires most publicly-traded companies to fully recognise an asset or liability for the overfunded or underfunded status of their benefit plans in financial statements for years ending after 15 December 2006. For non-public entities, the effective date is fiscal years ending after 15 June 2007. Click to Download the Heads Up Newsletter (PDF 120k).

5 October 2006: Agenda for October 2006 IASB meeting

The International Accounting Standards Board will hold its October 2006 Board meeting at its offices, 30 Cannon Street, London, on Monday through Friday 16-20 October 2006. Presented below is the preliminary agenda for the meeting. The IASB will also hold a joint meeting with the US Financial Accounting Standards Board at FASB's offices in Norwalk, Connecticut USA on Monday and Tuesday, 23 and 24 October 2006. The joint meeting agenda has not yet been announced.

16-20 October 2006, London Monday 16 October 2006 Post-employment Benefits – Intermediate risk plans [Education session with actuarial representatives] Extractive Activities Research Project [Education session] Insurance contracts Tuesday 17 October 2006 Meeting between Representatives from the IASB and EFRAG (morning) Financial Statement Presentation Business Combinations Phase II – Redeliberations of proposed revisions to IFRS 3 Wednesday 18 October 2006 Interest Margin Hedging [Education session with representatives from the European Banking Federation]. Click here for a Description of Interest Margin Hedging discussed by the Board in March 2004. Amendments to IAS 37 Non-financial Liabilities Conceptual Framework Elements of financial statements Planning for Phase B (elements) and Phase D (reporting entity) Accounting Standards for Small and Medium-sized Entities Thursday 19 October 2006 Intangible Assets Research Project IFRIC Issues: IFRIC X Service Concession Arrangements (Drafts: IFRIC D12-D14) - Approval of an Interpretation IFRIC X IFRS 2 - Group and Treasury Share Transactions (Draft: IFRIC D17) - Approval of an Interpretation Amendments to IAS 14 Segment Reporting Financial instruments – IAS 39 Financial Instruments: Recognition and Measurement - Identification of a portion of an exposure eligible for hedge accounting Revenue Recognition Amendments to IAS 24 Related Party Disclosures Friday 20 October 2006 Annual improvements to IFRSs: Should investment property under construction be within the scope of IAS 40 Investment Property instead of IAS 16 Property, Plant and Equipment? In IAS 17 Leases, should contingent rents relating to operating leases be recognised as incurred or amortised on a straight-line basis? IFRS 2 Share-based Payment - Exposure Draft IFRS 2 Share-based Payment: Vesting Conditions and Cancellations.

5 October 2006: IASB launches redesigned website
The IASB has redesigned its Website www.iasb.org "to help stakeholders follow the development of those items that are on the IASB's work programme and make it easier for users of financial reports to participate in the development of International Financial Reporting Standards". Click for Press Release (PDF 50k), which describes the new features. Because of the IASB's changes, we have removed from the IAS Plus home page our links to pages on the old IASB website that had comprehensive lists, with download links, for IASB Update, IFRIC Update, IASB meeting observer notes, IFRIC meeting observer notes, IASB Exposure Drafts, IFRIC Draft Interpretations, IASB Discussion Papers, and IASB Invitations to Comment. The Update newsletters are no longer available without subscription. The observer notes and meeting summaries and some of the comment documents are now available on a project by project basis. Go to the Work Plan Page, click on an individual project, and on that project page you will find links to meeting summaries and observer notes. There is also a page with links to Documents Open to Comment.

5 October 2006: IASC Foundation trustees will meet 26-27 October 2006

The Trustees of the IASC Foundation, under which the IASB operates, will meet in Washington on 26 and 27 October 2006. The agenda of the public portion of the meeting (from 11:15am to 5:00pm on Thursday 26 October) is as follows:

• Opening/Approval of June Minutes
• Review of effectiveness of Trustee oversight
• IASC Foundation position on XBRL
• Report from IASB Chairman
• Report from IFRIC

4 October 2006: Study of auditors' liability in the EU

The European Commission has published an independent study on the economic impact of current EU rules on auditors' liability regimes and on insurance conditions in EU member states. The study analyses the structure of the auditing market and its possible development in the future, describes the existing limitations in the insurance market for international audits, examines the economic needs for limiting auditors' liability, and compares several possible methods for limiting liability. Key conclusions of the study (not necessarily the views of the Commission) are: The international market for statutory audits of large and very large companies is highly concentrated and dominated by the Big-4 networks. The likelihood of new entrants into this market is very limited in the coming years. Additionally, under the current circumstances, middle-tier firms are unlikely to become a major alternative if a Big-4 network fails. The level of auditor liability insurance available for higher limits has fallen sharply in recent years. The remaining source of funds to face claims may essentially be the income of partners belonging to the same international network. Constantly large claims might therefore put at risk an entire network. The failure of a network could lead to difficult consequences for the wider economy like a significant reduction in large company statutory audit capacity possibly creating serious problems for companies whose financial statements need to be audited. A limitation on auditor liability would reduce this risk. While there exist a number of variants of statutory audit liability limitation, the diversity of circumstances in terms of both audits and company size is such that it is unlikely that a one-size-fits-all EU-wide approach is the most useful. The Commission intends to issue a report based on this study before the end of 2006, and to invite comments. Click for: Complete Study Report (PDF 1,935k, 381 pages) Press Release (PDF 92k)

3 October 2006: New IFACnet knowledge base for accountants in business
The International Federation of Accountants (IFAC), in collaboration with 13 member organisations, has developed a web-based knowledge base for professional accountants in business, to be known as IFACnet – www.ifacnet.com. The objective is "to provide one-stop access to leading-edge articles, good practice guidance, and tools and techniques for accountants employed in commerce, industry, the public sector, education, and the not-for-profit sector". IFACnet will include information on strategy, budgeting and planning, corporate governance, risk management, and professional development. IFACnet includes shared electronic resources from IFAC and the 13 participating organisations. Expansion is planned for 2007. There is no fee to use IFACnet, although certain search results may identify documents or publications available for purchase. Click for Press Release (PDF 92k).

2 October 2006: Update on corporate governance and accounting in EU

Charlie McCreevy, the European Commissioner for Internal Market and Services, spoke about Corporate Governance and Accounting – Where We Stand in the EU (PDF 73k) at the EU Business Leader Forum of the Association of Chartered Certified Accountants of Ireland in Dublin on 29 September 2006. An excerpt: I believe that we are standing on the threshold of a new era. In accounting, for listed companies, the beginning of 2005 saw the introduction of the IAS Regulation and its requirement that around 8000 European listed companies have to prepare their consolidated financial statements using IFRS. Initial studies show that the implementation of IFRS has generally been successful. I am aware that accountants and auditors have done extensive work in order to achieve these results. At the same time, more work needs to be done on consistent application of the standards across Europe. Several parties have a role to play in this area. CESR, the Committee of European Securities Regulators, is playing a leading role: it has created several working groups in order to coordinate enforcement decisions in different jurisdictions. In the interest of transparency, there will also be a public database of decisions taken. Accountants and Auditors can help to improve consistent application, by improved communication among themselves. Commissioner McCreevy also addressed the IASB's project to develop an IFRS for Small and Medium-sized Entities (SMEs). An excerpt from his comments: I have repeatedly stated that accounting for SMEs must be simplified and that the level of accounting complexity should be aligned with the nature of the activities of these companies. We have to identify SME's real needs and those of their financiers and use them as the basis for deciding on their future accounting requirements. I am aware that this is a politically sensitive issue - so there will be extensive consultation with all stakeholders. We will listen very carefully to the concerns of SMEs before taking any decision. As you know, the IASB intends to publish an exposure draft on accounting standards for SMEs. There will be a period of consultation afterwards. I have made it clear already that only simple, easy-to-apply standards will be acceptable to us. Nobody should assume that the standards will be automatically transposed into European law.

2 October 2006: Public Interest Oversight Board first anniversary
The Public Interest Oversight Board (PIOB), which oversees specified standard-setting activities of the International Federation of Accountants, has completed its first year of operation. At its quarterly meeting late last month, the PIOB focused its discussions on key components of its independent oversight program:

• review of nominations for appointment in 2007 to the standard-setting boards for international standards of audit, ethics and education for accountants;
• consideration of the existing due process and working procedures applied by these boards in setting the above international standards; and
• plans to monitor development of work plans and priorities of these boards for the next two years.

• Press Release (PDF 33k)
• More Information about PIOB

1 October 2006: IASB and Japan hold further convergence discussions
On 28 and 29 September 2006 in London, the Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) held their fourth joint meeting towards the goal of achieving convergence between Japanese GAAP and International Financial Reporting Standards. Click for Press Release (PDF 52k) that includes a list of topics discussed.