31 August 2007: RFP for development of small practice management guide
The International Federation of Accountants is requesting proposals for the development of a practice management guide for use by small and medium accounting practices (SMPs). The purpose of the guide is to assist SMPs in managing their practices in an efficient, profitable, and professional manner. It will cover a range of topics, such as strategic planning, management structure, client relationships, managing finances and risk, partnership issues, networking, and succession planning. The deadline for submitting proposals is 19 October 2007. Click to download the Request for Proposal (PDF 204k).

30 August 2007: Accounting consequences of subprime loan modifications
We have posted the 29 August 2007 Edition of the Heads Up Newsletter (PDF 119k) published by Deloitte & Touche LLP (United States). This issue of Heads Up, titled Accounting Consequences of Subprime Loan Modifications, summarises a letter written by US Senator Charles Schumer wrote to the CEOs of the Big Four accounting firms, urging them to "assist this country's mortgage crisis by ensuring that your clients are aware of the recent SEC and FASB guidance on FAS 140, and by otherwise encouraging them to modify subprime loans at risk of default." Senator Schumer's letter refers to a June educational forum hosted by the FASB and a follow-up letter from SEC Chairman Christopher Cox to House Financial Services Committee Chairman Barney Frank. These are discussed in the newsletter.

30 August 2007: Financial statement presentation working group to meet
The Joint International Group on Financial Statement Presentation will meet at the offices of the US Financial Accounting Standards Board (FASB), Norwalk, Connecticut, USA on Friday, 14 September 2007. The group was set up in November 2004 to advise the IASB and FASB in their joint project to establish standards for the presentation information about the financial performance of a business enterprise. Click for Project Information.

29 August 2007: New Global Offerings Services newsletter

We have posted the July 2007 Edition of the Deloitte Global Offerings Services Newsletter (PDF 150k). 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, with hyperlinks to source material. Past GOs Newsletters are Here.

28 August 2007: Agenda for 6-7 September 2007 IFRIC meeting

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 6-7 September 2007. The meeting is open to the public and will be webcast. The tentative agenda is shown below.

6-7 September 2007, London Thursday 6 September 2007 IAS 27 – Accounting for non-cash distributions IAS 18 Revenue – Guidance on identifying agency arrangements IAS 18 Revenue – Customer contributions IFRS 2 Share-based Payment – Group cash-settled share-based payment transactions Staff Recommendations for Tentative Agenda Decisions IAS 19 Employee Benefits – Treatment of employee contributions IAS 19 Employee Benefits Changes to a plan caused by government IAS 19 Employee Benefits Death in service benefits – Attribution of death in service benefits in accordance with IAS 19. Friday 7 September 2007 Review of Tentative Agenda Decisions published in July IFRIC Update IAS 18 Revenue – Guidance on identifying agency relationships IAS 19 Employee Benefits – Post-employment benefits – Benefit allocation for defined benefit plans IAS 39 Financial Instruments: Recognition and Measurement – Hedging future cash flows with purchased options IFRS 5 Non-current Assets held for Sale and Discontinued Operations – Disclosure Update on Tentative Agenda Decisions postponed in July IAS 39 Financial Instruments: Recognition and Measurement – Scope of IAS 39 paragraph 11A IAS 39 Financial Instruments: Recognition and Measurement – AG 33(d)(iii) of IAS 39 Administrative Session – IFRIC Work in progress

27 August 2007: Sri Lanka will move to full IFRS compliance by 2011
The board of the Institute of Chartered Accountants of Sri Lanka (ICASL) has approved a policy that Sri Lankan Financial Reporting Standards will be fully compliant with International Financial Reporting Standards by 2011, meaning that a company that asserts compliance with Sri Lankan standards could also assert compliance with IFRSs. The policy was announced by Yohan Perera, President of the ICASL, at an international conference on 'Fair Value – A Paragigm Shift' sponsored by the South Asian Federation of Accountants in Colombo, Sri Lanka, on 25 August 2007. Currently, Sri Lanka has adopted many, but not all, of the latest IFRSs. Mr Perera also announced that Sri Lanka expects to adopt IAS 32 and IAS 39 in September 2007, to be effective in 2009.

27 August 2007: IASC Foundation conference 29-30 August in Singapore

The IASC Foundation's annual IFRS Conference will take place later this week on Wednesday 29 August 2007 and Thursday 30 August 2007 at the Grand Hyatt Hotel in Singapore. IASB Chairman Sir David Tweedie will chair the conference. On Wednesday afternoon, speakers will discuss IFRS financial statements from the perspectives of financial analysts, preparers, and regulators. Thursday's session will include a comprehensive technical update on IASB and IFRIC activities from three members of the IASB, plus technical breakout sessions. Considerable time is allowed on both days for audience comments and questions. Also,on Wednesday morning 29 August there will be five intensive half-day special-interest workshops for which conference participants can sign up. These will cover:

• IFRIC Update
• Insurance Contracts
• IFRS for SMEs
• IFRSs Teaching and Research
• US Market Update

26 August 2007: ACCA detailed summary of proposed IFRS for SMEs

The Association of Chartered Certified Accountants (ACCA) has published a 32-page booklet summarising the proposals for an International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). It covers each of the 38 sections in the proposed IFRS for SMEs. The ACCA booklet includes a foreword by Paul Pacter, Director of Standards for SMEs at the IASB. The booklet was published in cooperation with the Eastern, Central and Southern African Federation of Accountants. To encourage consideration of the IASB's proposed standard in Africa, the ACCA is distributing 10,000 printed copies of the booklet throughout Africa. Click here to download the ACCA Summary of the Proposed IFRS for SMEs (PDF 356k). Posted with kind permission of the ACCA, a global professional accountancy body with 296,000 students and 115,000 members in 170 countries.

25 August 2007: Musterkonzernabschluss 2006 (German IFRS statements)

Deloitte (Germany) has published Musterkonzernabschluss 2006, the German Language Model IFRS Financial Statements for 2006 (PDF 2,036k, 133 pages). Each item in the financial statements is cross-referenced to the relevant source. On our Model Financial Statements Page you will find permanent links to the English, German, and Danish model IFRS financial statements as well as disclosure and compliance checklists.

24 August 2007: Update on XBRL-enablement of IFRSs
The IASC Foundation (IASCF), under which the IASB operates, has published an electronic newsletter with an update on developments in the XBRL-enablement of IFRSs. XBRL (eXtensible Business Reporting Language) is a royalty-free computer software language that labels companies' financial and other data with codes from standard lists (taxonomies) so that investors and analysts can more easily locate and analyze desired information. Click to Download the XBRL Update (PDF 105k). The newsletter includes hyperlinks to various XBRL resources. We have some information on our XBRL Page.

24 August 2007: IFAC report on risk-based internal controls
IFAC's Professional Accountants in Business (PAIB) Committee has released a new publication on Internal Control from a Risk-Based Perspective. This information paper features interviews with 10 senior-level professional accountants in business on their experiences and views on establishing effective internal control systems. The interviews help to demonstrate the importance of a risk-based approach to internal control in helping an organisation manage its overall risk. This IFAC Media Release has more information and a Link to download the paper.

23 August 2007: IFRIC statement clarifying IFRIC 14
On 5 July 2007 the International Financial Reporting Interpretations Committee (IFRIC) issued IFRIC 14 IAS 19–The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. Since the release of the Interpretation the IFRIC has observed several press articles and statements by market commentators providing an inaccurate assessment of the effect of IFRIC 14. Consequently, IFRIC has released a Statement Addressing the Key Issues that Have Been Raised (PDF 60k).

22 August 2007: FEI conference on global GAAP convergence
Financial Executives International is sponsoring a Global Financial Reporting Convergence Conference to be held in New York City on 28 September 2007. The conference is intended to provide a foundation for understanding the primary differences between US GAAP and IFRSs, and examine what is required to reconcile those differences. Panels will focus on:

• Roadmap to Convergence Part I: Standards Setters' Objectives and Perspectives
• Roadmap to Convergence Part II: Regulatory Perspectives of the US and the European Commission
• The Potential Impact of IFRS Adoption
• Applying IFRSs – 'The Good, the Bad and the Ugly'

22 August 2007: FASB publishes 2007-2008 volumes of standards

The US Financial Accounting Standards Board has published the 2007-2008 annual bound volumes of its standards, including standards issued by its predecessor bodies. They include standards issued up to 1 June 2007. The books may be purchased in sets:

• Original Pronouncements As Amended (three volumes, standards organised chronologically): US$140
• Current Text (two volumes, organised by topic): US125
• Both (five volumes): US$240

22 August 2007: FEE's comments on simplification of financial reporting rules
The European Federation of Accountants (FEE) has published a Background Note on The European Commission's Communication on Simplification of EU rules on Company Law, Accounting and Auditing. The Background Note provides a history of the Commission's current simplification efforts. The Background Note, in turn, references a March 2007 position paper on the simplification project prepared by FEE and submitted to the Commission. Click to download:

• FEE's Position on EC Simplification Project (March 2007) (PDF 112k)
• FEE's Background Note on the EC Simplification Project (July 2007) (PDF 82k)

Excerpts relating to financial reporting by SMEs are presented below:

21 August 2007: SEC official comments on IFRS reconciliation
In a Presentation at an American Bar Association Meeting (PDF 242k), John W. White, Director of the Division of Corporation Finance of the US Securities and Exchange Commission, covered a range of issues including International Financial Reporting Standards (see section 6 of Mr White's remarks). Here is an excerpt:

21 August 2007: We comment on a proposed auditing standard
Deloitte has recently submitted a Letter of Comment (PDF 42k) to the International Auditing and Assurance Standards Board (IAASB) on proposed International Standard on Auditing 250 The Auditor's Responsibilities Relating to Laws and Regulations in an Audit of Financial Statements. We are supportive of the development of this guidance and believe that the overall redrafting of the proposed standard was completed in accordance with the clarity conventions and criteria adopted by IAASB.

21 August 2007: Update on financial reporting in Bangladesh

We have updated our Country Page for Bangladesh to include a table setting out our understanding of the status of adoption, by The Institute of Chartered Accountants of Bangladesh, of each IAS and IFRS as a Bangladeshi Accounting Standard as of July 2007.

20 August 2007: CFA Institute's new comprehensive business reporting model

The CFA Institute Centre for Financial Market Integrity has published a new financial reporting model that is intended to enhance the ability of financial analysts and investors to evaluate companies in making investment decisions. The model proposes 12 principles to ensure that financial statements are relevant, clear, accurate, understandable, and comprehensive. The publication – A Comprehensive Business Reporting Model: Financial Reporting for Investors – may be Downloaded from the CFA Institute Website (PDF 590k). It is organised as follows:

• Chapter 1. Why Does Financial Reporting Matter to Investors and Investment Professionals?
• Chapter 2. A Conceptual Framework for the Comprehensive Business Reporting Model
• Chapter 3. The Comprehensive Business Reporting Model – Our Proposals for Revision
• Chapter 4. Financial Statement Disclosures

20 August 2007: 2007 volume of International Valuation Standards

The International Valuation Standards Committee (IVSC) has published the 8th edition of International Valuation Standards – IVS 2007. This edition includes several new components and has also undergone extensive revision and updating:

• International Valuation Standard 2, Bases Other Than Market Value, and International Valuation Application 2, Valuation for Secured Lending Purposes, have been rewritten.
• The revision of Guidance Note 3, Valuation of Plant and Equipment, which was approved in 2005 after publication of the previous edition, has been reincorporated into the text.
• New: International Valuation Application, Valuation of Public Sector Assets for Financial Reporting.
• New: Guidance Note, Valuation of Historic Property.
• Other new features include a chart diagramming the hierarchy of property rights and a useful addendum to GN 8 (Profitability Test When Reporting DRC).

20 August 2007: IAASB invites comments on nine exposure drafts
The International Auditing and Assurance Standards Board (IAASB) has published for comment exposure drafts of nine proposed standards, including each of its international quality control and auditor reporting standards. These have all been redrafted in accordance with the IAASB's new drafting conventions designed to improve the clarity of its pronouncements. Click for Press Release (PDF 41k). The exposure drafts may be viewed (until comment deadline) by going to www.ifac.org/EDs. The exposure drafts are:

18 August 2007: Heads Up newsletter on SEC IFRS concept release
We have posted the 17 August 2007 Edition of the Heads Up Newsletter (PDF 127k) published by Deloitte & Touche LLP (United States). This issue of Heads Up, titled The Shift Toward IFRSs and Its Impact on US Companies, summarises the SEC's new concept release soliciting input on whether US issuers should be permitted to prepare their financial statements using International Financial Reporting Standards (IFRSs). It also discusses some items companies should consider in determining whether they should use IFRSs. An excerpt from the newsletter:

17 August 2007: Statistics database on cross-border securities updated
We have updated our Database of Statistics that, we believe, provide clear evidence of the globalisation of the world's capital markets and of the need for global financial reporting standards. The latest updates reflect July 2007 data on the number of non-US companies listed on member exchange of the World Federation of Exchanges and details of cross-border listings on the New York Stock Exchange, NASDAQ, and the London Stock Exchange. There is also some data on cross-border lending and on accounting standards used by companies listed on the Deutsche Börse, as well as foreign companies registered with the US SEC.

15 August 2007: SME guidance and basis now available in German

The IASB has posted On Its Website the German language translation of the Implementation Guidance (model financial statements and disclosure checklist) and basis for conclusions for the Exposure Draft of an International Financial Reporting Standard for Small and Medium-sized Entities. The German translation of the ED itself was previously posted in June.

12 August 2007: SEC concept release on use of IFRSs by US companies
The US Securities and Exchange Commission has published a Concept Release to obtain information about the extent and nature of the public's interest in allowing US issuers, including investment companies subject to the Investment Company Act of 1940, to prepare financial statements in accordance with International Financial Reporting Standards as published by the International Accounting Standards Board for purposes of complying with the rules and regulations of the Commission. US issuers presently prepare their financial statements in accordance with generally accepted accounting principles as used in the United States, referred to as US GAAP. The release includes 35 specific questions to which the SEC seeks responses. The SEC requests comments by 13 November 2007. Click for Concept Release (PDF 571k).

11 August 2007: IAASB seeks comments on two revised auditing standards

The International Auditing and Assurance Standards Board (IAASB) has invited comments by 31 October 2007 on exposure drafts of two proposed International Standards on Auditing (ISA) issued as part of its project to enhance the clarity of its standards:

• Proposed ISA 510 (Redrafted) Initial Audit Engagements – Opening Balances
• Proposed ISA 530 (Redrafted) Audit Sampling

8 August 2007: IASB convergence agreement with Japan
The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have jointly announced an agreement to accelerate convergence between Japanese GAAP and International Financial Reporting Standards (IFRSs), a process that was started in March 2005. As part of the agreement the two boards will seek to eliminate by 2008 major differences between Japanese GAAP and IFRSs (as defined by the July 2005 CESR Assessment of Equivalence), with the remaining differences being removed on or before 30 June 2011. Although the target date of 2011 does not apply to any major new IFRSs now being developed that will become effective after 2011, both boards will work closely to ensure the acceptance of the international approach in Japan when new standards become effective. Click to Download the Press Release and Agreement (PDF 54k).

8 August 2007: IVSC discussion paper on valuing intangibles under IFRSs
The International Valuation Standards Committee (IVSC) has released for comment a 58-page discussion paper on the Determination of Fair Value of Intangible Assets for IFRS Reporting Purposes. In 2006, IVSC established an expert group to consider the guidance that was required for the valuation of intangible assets, specifically for IFRS reporting purposes. The expert group included Ben Moore, Director, Corporate Finance, Deloitte & Touche LLP, London. The IVSC will consider responses to this Discussion Paper in developing an Exposure Draft of a Guidance Note on the Determination of Fair Value of Intangible Assets for IFRS Reporting Purposes for publication as an integral part of the International Valuation Standards. The IVSC requests comments by 31 October 2007. Click to Download the Discussion Paper (PDF 916k).

7 August 2007: Deloitte will co-sponsor an IFRS conference in London

Deloitte is one of the sponsors of a conference titled IFRS 2007/8: Current Practical Interpretation and Future Direction, to be held in London on 4 October 2007. The opening event is a dialog with IASB Chairman Sir David Tweedie. Subsequent sessions will focus on IFRSs from an analyst's point of view, a preparer's view, audit and regulatory issues, legal issues, and implementation issues. A concluding forum will consider 'where do we go from here'. Deloitte speakers at the conference are Ken Wild, Deloitte's Global IFRS Leader, and Isobel Sharp, Deloitte UK Partner who currently is President of the Institute of Chartered Accountants of Scotland. Click for Conference Brochure (PDF 145k).

6 August 2007: SEC financial reporting advisory committee holds first meeting
The US Securities and Exchange Commission's Advisory Committee on Improvements to Financial Reporting held its first meeting on 2 August 2007 in Washington DC. The committee was formed to study the US financial reporting system with the goals of reducing unnecessary complexity and making information more useful and understandable for investors. The advisory committee will focus on the following areas:

• the current approach to setting financial accounting and reporting standards;
• the current process of regulating compliance by registrants and financial professionals with accounting and reporting standards;
• the current systems for delivering financial information to investors and accessing that information;
• other environmental factors that drive unnecessary complexity and reduce transparency to investors;
• whether there are current accounting and reporting standards that impose costs that outweigh the resulting benefits, and
• whether this cost-benefit analysis is likely to be impacted by the growing use of international accounting standards.

6 August 2007: We comment on three proposed auditing standards
Deloitte has recently submitted letters of comment to the International Auditing and Assurance Standards Board (IAASB) on the following three proposed International Standards on Auditing (ISA). In each case, while offering some suggestions for improvement, we concluded that we are supportive of the proposed auditing standard. You can find Past Deloitte letters to the IAASB Here.

• ISA 550 (Revised and Redrafted) Related Parties (43k)
• ISA 570 (Redrafted) Going Concern (21k)
• ISA 580 (Revised and Redrafted) Written Representations (39k)

4 August 2007: Heads Up on SEC staff views
On 10 July 2007, the SEC Regulations Committee of the American Institute of CPAs held its second meeting of the year with the Securities and Exchange Commission 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 Heads Up Newsletter (PDF 82k) summarising the meeting. Among the issues discussed were:

3 August 2007: FASB invitation to comment on insurance accounting
The US Financial Accounting Standards Board has issued an Invitation to Comment on Accounting for Insurance Contracts by Insurers and Policyholders. The IASB is currently working on a project that addresses those issues. In May 2007, it issued a Discussion Paper (DP) Preliminary Views on Insurance Contracts, describing the main components of a proposed accounting model for insurance contracts. Although the scope of the IASB's project includes accounting by the policyholder, the IASB's DP does not include preliminary views on policyholder accounting and reporting issues. FASB invites comment on a range of issues, including:

• Whether it should undertake a project on accounting for insurance contracts.
• Whether it should do the project jointly with the IASB.
• Whether the IASB's preliminary views would be suitable starting point for a joint project.
• Whether the scope of the project should include accounting by policyholders.
• How the project should interact with other major FASB-IASB joint projects that address similar issues, for example, the conceptual framework and revenue recognition projects.

3 August 2007: Core portions of IFAC website translated into five languages
The International Federation of Accountants (IFAC) has begun translating core portions of its website (www.ifac.org) into Arabic, Chinese, French, Russian, and Spanish. These languages, in addition to English, which is IFAC's official language, are the official languages of the United Nations. Translated sections of the IFAC website include the home page, information about the organization, its structure, governance and membership, as well as key information about IFAC's independent auditing, ethics, education, and public sector accounting standard-setting boards. In addition, the home pages for IFAC's resource centers for professional accountants in business and small and medium practices have been translated.

3 August 2007: Accounting Roundup – July 2007

We have posted the July 2007 Edition of Accounting Roundup (PDF 239k) published by Deloitte & Touche LLP (USA). Topics covered in this issue include:

2 August 2007: IAS Plus quarterly newsletter for July 2007

The July 2007 IAS Plus Quarterly Newsletter has been published. The newsletter reports on the 2nd quarter 2007 activities of the IASB, the IFRIC, and the IASC Foundation, and also on worldwide issues and events relating to international financial reporting: Download the July 2007 Global Edition (PDF 250k) Links to Past IAS Plus Issues Here. Sign up for Free Subscription by Email.

1 August 2007: Update on financial reporting in Cuba
We have added a Country Page for Cuba describing the background and current status of the accounting framework in Cuba. In January 2006, the Cuban government issued, through the Cuban Accounting Standards Committee (Comité de Normas Cubanas de Contabilidad), a set of Cuban Financial Information Standards (Normas Cubanas de Informacion Financiera, or NCIF).

1 August 2007: US SEC appoints financial reporting advisory committee
The US Securities and Exchange Commission has announced the appointment of the members of the SEC Advisory Committee on Improvements to Financial Reporting. The advisory committee, established last month, will hold its first meeting on 2 August 2007 at the SEC's Washington DC headquarters. Click for Press Release (PDF 51k). The committee will study the US financial reporting system with the goals of reducing unnecessary complexity and making information more useful and understandable for investors. The advisory committee will focus on the following areas:

• the current approach to setting financial accounting and reporting standards;
• the current process of regulating compliance by registrants and financial professionals with accounting and reporting standards;
• the current systems for delivering financial information to investors and accessing that information;
• other environmental factors that drive unnecessary complexity and reduce transparency to investors;
• whether there are current accounting and reporting standards that impose costs that outweigh the resulting benefits, and
• whether this cost-benefit analysis is likely to be impacted by the growing use of international accounting standards.