Go to Chronology for:

• 2008 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2007 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2006 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2005 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2004 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2003 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2002 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2001 – Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• 2000 – Dec (IASPlus website launched December 2000)

31 July 2007: IASCF seeks members for two XBRL committees
The Trustees of the IASC Foundation have invited applications for membership of two committees relating to the Foundation's work on XBRL – an XBRL Advisory Council (XAC) and an XBRL Quality Review Team (XQRT):

• The XAC will provide strategic advice to the Trustees and the Foundation's London-based XBRL team on the future development and adoption of the XBRL Taxonomy for International Financial Reporting Standards (IFRSs). It will comprise ten members who should broadly reflect the diverse areas and professional interests affected by XBRL adoption and the implementation of IFRS taxonomies.
• The XQRT will review the developed taxonomies and offer strategic advice and practical recommendations on the quality of the IFRS taxonomy.

31 July 2007: Updated background page on financial reporting in Hong Kong
We have updated our comprehensive page of Background Information on Financial Reporting in Hong Kong. On this page you can find information about mandatory and other sources of GAAP in Hong Kong, the Companies Ordinance, the Securities and Futures Commission, stock exchange requirements, requirements for banks and insurance companies, income tax requirements, and the Hong Kong Institute of CPAs.

30 July 2007: IFRIC agenda project pages updated

We have updated the following IFRIC agenda project pages to reflect discussions and decisions at IFRIC's meeting in July 2007:

• IAS 18 – Guidance on Identifying Agency Relationships
• IAS 18 – Customer Contributions (new project page)
• IAS 27 – Non-cash Distributions (new project page)
• IFRS 2 – Group Cash-settled share-based Payment Transactions (new project page)

30 July 2007: New AICPA standard on valuation
The Consulting Services Executive Committee of the American Institute of Certified Public Accountants (AICPA) announced today the release of a new professional standard on valuation services, Statement on Standards for Valuation Services No. 1 (SSVS No. 1) Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset. The 76-page standard provides guidelines to CPAs for developing estimates of value and reporting on the results. It applies to AICPA members who perform an engagement that estimates the value of a business, business interest, security, or intangible asset for a wide range of purposes, including financial reporting. SSVS No. 1 is effective for engagements accepted on or after 1 January 2008.

28 July 2007: We support enlarging IFRIC to 14 members
Deloitte has submitted a Letter of Comment to the Trustees of the IASC Foundation (PDF 108k) supporting their Proposal (PDF 238k) to increase the size of the International Financial Reporting Interpretations Committee from 12 to 14 voting members. In doing so, we agree with the Trustees that the IFRIC would benefit from a greater diversity of members with practical experience in the application of IFRSs and analysis of financial reports using IFRSs. Our letter notes our concern that enlarging the IFRIC may have some adverse effects on its work. However we are aware that the IFRIC has more staff resources than it had historically and note that the IASCF's 2008 budget reiterates the Trustees' commitment to ensuring that the IFRIC 'has the capacity to respond to interpretation issues in an efficient manner'. Consequently, we are willing to accept the Trustees' assessment that, within reason, any effect on the IFRIC's efficiency should be outweighed by the benefit of greater participation by preparers and users of IFRS financial reports. Click here for links to all Past Deloitte Comment Letters to IASC, IASB, SIC, IFRIC, and the IASCF.

27 July 2007: Three new jurisdiction pages added

We have added pages for Albania, Botswana, and Jordan describing each jurisdiction's financial reporting framework and explaining the extent to which IFRSs are used. The information has been extracted from Reports on Standards and Compliance (ROSC) – Accounting and Auditing prepared by the World Bank. You will find links to all of our pages of information by jurisdiction Here.

26 July 2007: SEC seeks views on use of IFRSs by US listed companies
Yesterday, the US Securities and Exchange Commission voted unanimously to publish a Concept Release for public comment on whether to allow US issuers, including investment companies, to prepare their financial statements using International Financial Reporting Standards (IFRSs) as published in English by the International Accounting Standards Board. Under the SEC's current rules, US issuers are required to follow US GAAP). The Concept Release is an information-seeking document that describes the policy issues and, in the form of questions, seeks public input regarding the possibility of allowing US issuers to report under IFRSs. The comment period will be for 90 days after the Concept Release is published in the Federal Register. The Concept Release has not yet been posted on the SEC's website. In introducing the proposal to the Commission, SEC Chairman Christopher Cox said:

• SEC Press Release (PDF 36k).
• Chairman Cox's Comments (see item 2) (PDF 84k).
• Remarks of Katrina Kimpel, Professional Accounting Fellow (PDF 35k).

26 July 2007: SEC approves PCAOB's new internal control audit standard
The US Securities and Exchange Commission has approved Auditing Standard No. 5 An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements. AS 5 was adopted by the Public Company Accounting Oversight Board in May 2007. AS 5 replaces the PCAOB's previous internal control auditing standard, Auditing Standard No. 2. With SEC approval in place, audit firms registered with the PCAOB are required to use the new standard for all audits of internal control no later than for fiscal years ending on or after 15 November 2007. The PCAOB has announced that it intends to undertake several initiatives to support the successful implementation of the new standard. Click for:

• PCAOB Auditing Standard No. 5 (PDF 179k)
• SEC Press Release on Approval of AS 5 (PDF 47k)
• PCAOB Press Release on SEC Approval (PDF 43k)
• PCAOB Press Release on Adoption of AS 5 (May 2007) (PDF 62k)
• Link to Page on PCAOB Website with More Info on AS 5

26 July 2007: Summary of issues not added to IFRIC agenda is updated
We have updated our Summary of Issues Not Added to IFRIC's Agenda to reflect the IFRIC's final decisions at its July 2007 meeting not to add the following four topics to its agenda. Our summary now includes over 120 issues:

• IFRS 5 – Plan to sell the controlling interest in a subsidiary
• IAS 12 – Unremitted foreign income
• IAS 39 – Wagers received by a gaming institution
• IAS 39 – Hedging multiple risks with a single derivative hedging instrument

26 July 2007: Views sought on format of International Valuation Standards
The International Valuation Standards Committee (IVSC) has issued for comment the report of a group brought together to undertake a critical review of the structure and format of International Valuation Standards (IVS). Concurrently the IVSC is engaged in a project to modernise its own organisational structure (see our News Story of 19 April 2007). The report on IVSs, titled Review of the International Valuation Standards (PDF 128k), sets out the review group's views on the format of an 'ideal' set of international valuation standards. The report raises a number of specific questions on which views are sought (see below). The comment deadline is 31 October 2007.

26 July 2007: Deloitte Practice Fellows at the IASB
Michelle Fisher, a Manager in the Hong Kong Technical Department, has joined the staff of the IASB as a Practice Fellow for an 18-month term starting 1 July 2007. In this role, she will be assisting Paul Pacter with the Small and Medium-sized Entities Project. She will be involved in organising and monitoring the field testing of the exposure draft, dealing with comment letters, and ultimately the drafting of the final standard. Another Manager from the Hong Kong Technical Department, Candy Fong, is in her second year as a Practice Fellow at the IASB. Candy has been working on IFRIC agenda projects and also on the Board's financial instruments project. Her term at the IASB ends later this year.

25 July 2007: SEC will consider IFRS proposal for US domestic companies
At its meeting today (25 July 2007) the US Securities and Exchange Commission will consider whether to publish a proposed Concept Release on Allowing US Issuers to Prepare Financial Statements in Accordance with International Financial Reporting Standards as published in English by the International Accounting Standards Board for purposes of complying with the Commission's rules and regulations.

25 July 2007: Update on financial reporting in Paraguay
We have added a Country Page for Paraguay describing the statutory framework for accounting and auditing in Paraguay and the current status of accounting and auditing standards and their implementation. Our summary is based on information contained in the World Bank's Report on the Observance of Standards and Codes (ROSC) – Accounting and Auditing for Paraguay as of 1 June 2006. Click here for Links to Other Jurisdiction Pages on IAS Plus. We have updated our Table Summarising Use of IFRSs.

25 July 2007: New CEBS guidelines on financial reporting
The Committee of European Banking Supervisors (CEBS) has published final amendments to its Guidelines for the Implementation of the Framework for Consolidated Financial Reporting (FINREP). The guidelines had been released for public consultation on 20 April 2007 (see our News Story of 22 April 2007).The Guidelines are intended to be used by banking groups when preparing their financial reports based on IASs/IFRSs as required by the Supervisory Authorities within the European Union. The Guidelines were originally approved in December 2005 and revised in December 2006. In announcing the revised Guidelines, CEBS noted:

• Guidelines for Financial Reporting (FINREP) (PDF 390k)
• Press Release (PDF 35k)

25 July 2007: Four IASCF Trustees reappointed
The Trustees of the International Accounting Standards Committee (IASC) Foundation, under which the IASB operates, have reappointed four Trustees for a second three-year term ending 31 December 2010. The Trustees are:

• Oscar Fanjul, Vice Chairman, Omega Capital, and former Chairman Founder and CEO, Repsol, SA, Spain
• Tsuguoki (Aki) Fujinuma, Former Chairman and President, Japanese Institute of Certified Public Accountants (JICPA), Japan
• Alicja Kornasiewicz, Member of the Board of CA IB Corporate Finance Gmbh, Vienna, and CEO and Chairman of CA IB Group in Poland, Poland
• Antonio Vegezzi, Retired Vice-Chairman, Capital International, Switzerland

• Press Release (PDF 66k)
• List of All Trustees

25 July 2007: PCAOB proposes ethics and independence rule
The United States Public Company Accounting Oversight Board has proposed for comment a new ethics and independence rule titled Communication with Audit Committees Concerning Independence. The proposed rule would require a registered public accounting firm to communicate to an issuer's audit committee about any relationships between the firm and the issuer that may reasonably be thought to bear on the firm's independence. The communications would be required both before the firm accepts a new engagement pursuant to the standards of the PCAOB and annually for continuing engagements. In addition, the PCAOB proposed to amend its rule on Tax Services for Persons in Financial Reporting Oversight Roles that would exclude from the scope of the rule the portion of the audit period that precedes the beginning of the professional engagement period. Click for Press Release (PDF 308k).

25 July 2007: India plans to converge its GAAP with IFRSs
The Council of the Institute of Chartered Accountants of India has announced a plan to converge Indian Accounting Standards with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board. However, the ICAI noted that it may make modifications to IFRSs to reflect "the Indian conditions". The new standards will be effective for accounting periods beginning on or after 1 April 2011. They would be required for all listed companies as well as banks, insurance companies, and large-sized entities. Government approval of the plan is required. Click for IASB Press Release (PDF 268k).

24 July 2007: EFRAG will form a working group on joint ventures
The European Financial Reporting Advisory Group (EFRAG) is forming a working group to explore the impacts of the possible elimination of proportionate consolidation on financial reporting. The working group will assist EFRAG in developing a response to the expected IASB exposure draft on accounting for investments in joint ventures. Click for Terms of Reference (PDF 20k).

24 July 2007: 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 July 2007 meeting:

• Annual Improvements 2006-2007
• Conceptual Framework
• Earnings per Share – Amendments to IAS 33
  
• Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation
• IAS 27 – Formation of a New Parent Entity (new project page)
• Income Taxes – Amendments to IAS 12
• Joint Ventures – Replacement of IAS 31
  
• Liabilities – Amendments to IAS 37
• Post-employment Benefits
• Share-based payment – Vesting Conditions and Cancellations

24 July 2007: Reminder about upcoming comment deadline
We remind you that the deadline is Tuesday, 31 July 2007, for responding to the proposal of the International Accounting Standards Committee Foundation (IASCF) to increase the size of the International Financial Reporting Interpretations Committee (IFRIC) from 12 to 14 voting members. The proposal reflects the IASCF Trustees' view that the IFRIC would benefit from a greater diversity of members with practical experience in the application of IFRSs and analysis of financial statements using IFRSs. In April 2007, the IASCF issued a consultative document Proposal for Enlarging the IFRIC (PDF 238k). Written comments are due by 31 July 2007. Click for Press Release (PDF 297k).

23 July 2007: EFRAG discussion paper on revenue recognition
The European Financial Reporting Advisory Group (EFRAG) and the German accounting standard setter have jointly prepared a discussion paper Revenue Recognition – A European Contribution (PDF 694k) as part of EFRAG's Pro-active Accounting in Europe (PAAinE) Initiative. The paper was prepared in recognition that the IASB and the FASB are working on a joint project on revenue recognition. The paper notes that the IASB and FASB have tentatively decided to develop a comprehensive set of principles for revenue recognition that are in line with an asset/liability approach. The PAAinE paper first discusses what revenue is and when it arises. It then develops and compares various approaches to revenue recognition. EFRAG invites comments on the issues in the discussion paper by 10 December 2007 (send to commentletter@efrag.org).

20 July 2007: Notes from IASB July 2007 meeting days 3 and 4

The International Accounting Standards Board held its July 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 17-20 July 2007. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

19 July 2007: IAS Plus Newsletter on IFRIC 14

Deloitte's IFRS Global Office has published a special edition IAS Plus Newsletter on IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (PDF 221k). IFRIC 14 provides general guidance on how to assess the limit in IAS 19 Employee Benefits on the amount of a pension fund surplus that can be recognised as an asset. It also explains how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement. IFRIC 14 is likely to have the most impact in countries that have a minimum funding requirement and where there are restrictions on a company's ability to get refunds or reduce contributions. IFRIC 14 is effective for annual periods beginning on or after 1 January 2008. Earlier application is permitted. This newsletter explains the requirements of IFRIC 14. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

19 July 2007: Notes from IASB July 2007 Board meeting day 2

The International Accounting Standards Board held its July 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 17-20 July 2007. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

19 July 2007: Draft Interpretation on hedge of net investment
The International Financial Reporting Interpretations Committee (IFRIC) has released for public comment a draft Interpretation, IFRIC D22 Hedges of a Net Investment in a Foreign Operation. IFRIC D22 clarifies two issues that have arisen on two accounting standards – IAS 21 The Effects of Changes in Foreign Exchange Rates and IAS 39 Financial Instruments: Recognition and Measurement – about the accounting for hedging foreign currency risk within a company and its foreign operations. The IFRIC proposal clarifies what qualifies as a risk in the hedge of a net investment in a foreign operation and where within a group the instrument that offsets that risk may be held.

19 July 2007: Stephen Cooper appointed to the IASB
The Trustees of the International Accounting Standards Committee Foundation have appointed Stephen Cooper, Managing Director and head of valuation and accounting research at UBS Investment Bank, as a part-time member of the IASB. Mr Cooper will take up his position in August 2007 and has been appointed for the five years ending on 30 June 2012. Mr Cooper brings practical experience as an active analyst on accounting and valuation matters. He has been recognised as a leader in his field and voted top European Valuation and Accounting analyst by Extel and Institutional Investor magazine in each of the last 10 surveys. In his capacity at UBS, where he will continue to work part-time, Mr Cooper advises UBS's equity research analysts and institutional clients on valuation and accounting issues. As a member of the Corporate Reporting User Forum and a member of the IASB's Analyst Representative Group and Financial Statement Presentation working group, Mr Cooper has been actively involved in the IASB's work. Click for Press Release (PDF 49k).

18 July 2007: Listed companies in Brazil will use IFRSs starting 2010
On 13 July 2007, the Securities and Exchange Commission of Brazil – Comissão de Valores Mobiliários, or CVM (www.cvm.gov.br) – issued Rule No. 457 requiring listed companies to publish their consolidated financial statements according to IFRSs, starting with reporting periods ending in 2010. Use of IFRSs will be optional for listed companies from 2007 through 2009. Previously (in 2006), the Central Bank of Brazil decided that any bank required by law or regulation to publish financial statements in Brazil (including domestic owned and foreign owned, listed and unlisted) will have to prepare and publish consolidated financial statements in full compliance with IFRSs starting with years ending 31 December 2010.

18 July 2007: Notes from IASB July 2007 Board meeting day 1

The International Accounting Standards Board held its July 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 17-20 July 2007. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

18 July 2007: Recent SEC proposals for small public companies

We have posted the 17 July 2007 Edition of the Heads Up Newsletter (PDF 77k) published by Deloitte & Touche LLP (United States). The newsletter summarises the newest proposals issued by the SEC to make reporting easier for smaller public companies.

18 July 2007: Educational guide added to IASB's eIFRS
eIFRS, the online subscription service from the IASB, now includes the 2007 Guide through International Financial Report Standards. The Guide is extensively annotated with thousands of cross-references to guide readers through the text of each IFRS and all the other IASB material that accompanies but does not form part of the IFRSs. Click to go to eIFRS Web Page.

17 July 2007: IFRSs a benefit of globalisation

Charlie McCreevy, the European Commissioner for Internal Market and Services, spoke recently in Dublin before the Public Affairs Ireland conference on National Regulation and the Single Market – a perspective from Brussels (PDF 77k). Commissioner McCreevy suggested that international standards such as IFRSs and Basel II are "a powerful tool to extract the best from globalisation".

17 July 2007: New Global Offerings Services newsletter

We have posted the June 2007 Edition of the Deloitte Global Offerings Services Newsletter (PDF 157k). 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.

15 July 2007: Videocasts on interim reporting in Denmark (in Danish)
A current issue in Denmark is the application of new accounting requirements for half-yearly reports for listed companies and financial institutions (both banks and insurance companies) due to file their half-yearly reports at the end of August 2007. Listed financial institutions that prepare consolidated financial statements will be applying IAS 34 Interim Financial Reporting for the first time. This will most likely result in significant changes compared to previous interim reporting. Deloitte Denmark offers insight into the topic via three videocasts. Click here to View the Webcasts (in Danish).

14 July 2007: China expands the use of its new IFRS-based standards
On 16 February 2006, the Ministry of Finance (MOF) of the People's Republic of China announced that it had adopted a new basic standard and 38 new Chinese Accounting Standards (CASs) that are substantially in line with International Financial Reporting Standards, with a few exceptions. The MOF required all listed companies to start using the new CASs in their 2007 annual financial statements. The MOF has now announced that use of the new CASs will be expanded to all state-owned enterprises controlled by the Chinese central government starting in 2008, and then to all large and medium-sized companies in China starting in 2009.

14 July 2007: IESBA ethics proposal on independence
IFAC's International Ethics Standards Board for Accountants (IESBA) has issued an exposure draft proposing to strengthen three components of the independence requirements contained in the IFAC Code of Ethics for Professional Accountants. Those requirements relate to:

• Provision of internal audit services to an audit client;
• Independence implications related to the relative size of fees received from one assurance client; and
• Contingent fees for services provided to assurance clients.

14 July 2007: Comments invited on Ethics Board strategic plan
The International Ethics Standards Board for Accountants (IESBA) has invited comment from IFAC member bodies, regulators, national ethical standard setters, accountants in professional practice, accountants in business, and other interested parties on an exposure draft of its Strategic and Operational Plan for the Period 2008-2009 (PDF 229k). Comments are due 31 August 2007. The IESBA expects to consider comments received at its meeting in October 2007. Click for Press Release (PDF 33k).

14 July 2007: Report to ECOFIN on IASB governance and funding

The staff of the European Commission has released its second report on governance and funding developments in the IASB and the International Accounting Standards Committee Foundation. Click to Download the EC Report (PDF 122k). Presented below are the report's conclusions.

13 July 2007: Notes from the July 2007 IFRIC meeting

The International Financial Reporting Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday 12 July 2007. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting. The IFRIC completed its work on 12 July and will not meet on 13 July.

12 July 2007 IAS 18 Revenue - Customer Contributions At the May 2007 meeting the IFRIC considered whether it should develop guidance as to how a utility company should account for customer contributions received. The IFRIC noted that this issue could potentially apply to a diverse set of arrangements and raised the concern that considering all such arrangements could make the scope too broad for interpretation purposes. Therefore, the IFRIC decided to approach to the issue in a number of stages. At this meeting the IFRIC discussed situations in which a customer contributes an item of property, plant and equipment to a service provider. The Chairman noted that after having reached a conclusion on the treatment of property, plant and equipment the IFRIC would debate whether the scope can be widened to other assets. The staff analysis considered the following: Has an asset transfer occurred (including considering the effect of IFRIC 4 Determining whether an Arrangement contains a Lease)? Is IAS 20 Accounting for Government Grants and Disclosure of Government Assistance an appropriate accounting standard to use to account for a contributed asset? Should the asset received be measured at cost or fair value on initial recognition? How should any resulting credit should be accounted for Has an asset transfer occurred? The IFRIC tentatively decided that only contributed items of property, plant and equipment that meet the criteria for recognition as assets of the service provider should be in the scope of any Interpretation. Therefore, the entity receiving the assets should first consider whether it is required to recognise the asset in its financial statements. In particular, it should consider whether it can obtain the future economic benefits flowing from the asset and can restrict the access of others to those benefits, and whether it has control over those assets. In a second step the entity should assess whether the provision of the ongoing service to the customer contains a lease in accordance with IFRIC 4. If so, the entity should account for the lease of the asset to the customer in accordance with IAS 17 Leases. The staff was directed to prepare a revised paper for discussion at the next meeting. Is IAS 20 an appropriate accounting standard to use to account for a contributed asset? The IFRIC unanimously concluded that it is not appropriate to consider customer contribution as being similar to government grants. Should the asset received be measured at cost or fair value on initial recognition? The IFRIC tentatively agreed that the contributed asset should be recognised initially at fair value since the contribution is part of an exchange of assets, that is, that it is not a unilateral transaction. In the IFRIC's view, in return for the contributed asset the customer may receive an access right to receive an ongoing service and/or an executory contract to receive a supply of goods and/or an ongoing service. There seemed to be a consensus that recognition at fair value should be applied irrespective of how the entity accounts for the credit record. In addition it was noted that the fair value should be determined from the view of the utility company/service provider. How should any resulting credit should be accounted for? The IFRIC discussed two views: View 1: The credit does not represent a liability or an equity contribution but instead gives rise to income. View 2: The credit represents a liability which should be recorded as a liability and recognised over the life of the ongoing service. The IFRIC had a thorough debate and mixed views were expressed. There seemed to be a consensus that the credit does not represent an equity contribution but that this issue exclusively relates to the allocation of income. The IFRIC acknowledged that the accounting for the credit depends on the contractual arrangements; in particular: If there is a contract between the contributor and the service provider it is most likely that the service provider has a liability and that the revenue arising from the receipt of a customer contribution should be deferred and recognised over the life of the ongoing service. If there is no contract between the contributor and the service provider the service provider may not have a liability. This might, for example, be the case if a house builder contributes an item to a utility company and in the absence of any contractual arrangements the utility company may neither have an obligation to provide services nor to grant access to their services. One IFRIC member suggested that in this case the revenue recognition should follow the guidance in IAS 18. One IFRIC member pointed out that in both cases the accounting principle should be to 'spread the income' over the service period but that this period might be 'zero' in some circumstances. No decisions were made but the staff was asked to bring back a paper considering the views expressed at this meeting. In particular, the paper should include indicators for upfront recognition and deferral of income. IAS 18 Revenue – Guidance on Identifying Agency Arrangements At the May 2007 meeting the IFRIC asked the staff to analyse existing guidance on this issue to determine whether such guidance was consistent and could be used to help to assess the level of diversity in practice. The IFRIC was nearly equally split between two views. View A: The project should be removed from the IFRIC agenda on the basis that: Existing guidance, including that issued by some international audit firms, is consistent with this guidance being mainly based on EITF 99-19 (US GAAP) and FRS 5 (UK GAAP). Determining whether a seller is an agent or principal requires judgement and will depend on the particular facts and circumstances of each arrangement and that this would not change as a result of any guidance. Under IAS 8 GAAP hierarchy, an IFRS preparer may wish (although it is not obliged to do so) to consider other guidance. Any guidance in this area is more in the nature of implementation guidance and should not be issued by the IFRIC. View B: The IFRIC should proceed with its work on this project on the basis that: The issue is widespread and has practical relevance. Whereas the guidance in US GAAP and UK GAAP is useful outside of their respective jurisdiction, it is likely that some preparers around the world may not be aware of it. An Interpretation should be issued based on this existing guidance and it should not be difficult for the IFRIC to reach a consensus on this issue on a timely basis. Finally the IFRIC came to the conclusion that 'there should be something in the IFRS book' in order to avoid being required to look at the guidance of other standard setter. The IFRIC reached a tentative decision that this matter should be addressed by the IASB by adding an example to the appendix of IAS 18 and should not be added to the IFRIC agenda. The staff was asked to prepare a proposal for such an example whereby the example should be based on indicators. The IFRIC will return to this issue at a subsequent meeting. IFRS 2 Share-based Payment – Group Cash-settled share-based Payment Transactions The IFRIC discussed whether it should provide guidance on how to account for the following cash-settled share-based schemes in the financial statements of a subsidiary that receives services from its employees. Scheme 1: The employees of the subsidiary will be reimbursed by cash payments that are based on the price of the equity instruments of the subsidiary. Scheme 2: The employees of the subsidiary will be reimbursed by cash payments that are based on the price of the equity instruments of the parent of the subsidiary. Under both schemes, the parent (not the subsidiary) has the obligation to provide the employees of the subsidiary with the cash payments required. The IFRIC concluded that scheme 1 is in the scope of IFRS 2 in accordance with paragraph 6 of IFRIC 8 Scope of IFRS 2. With regard to scheme 2 the IFRIC believed that under the existing guidance this scheme would not be in the scope of IFRS 2. The IFRIC stated that the scheme is essentially cash-settled and share-based and that the subsidiary should measure the services received from its employees based on the requirements applicable to cash-settled share-based payment transactions. Some IFRIC members raised the concern that application of other standards (for instance, IAS 19 Employee Benefits) may result in not recognising expenses in the subsidiary's books; for instance, if the parent does not charge its expenses to the subsidiary. Such an accounting treatment was considered to be misleading. The IFRIC began an assessment of this potential agenda item against its Agenda Criteria. In doing so, it agreed that this issue would best be addressed by amending the definition of cash-settled share-based payment transactions in IFRS 2. The IFRIC reached a tentative decision that this matter should be addressed by the IASB and should not be added to the IFRIC agenda. The staff was asked to draft a proposed amendment to IFRS 2 and consequential amendments to IFRIC 8 for discussion at a subsequent meeting. IAS 27 Consolidated and Separate Financial Statements – Non-cash Distributions Possible scope of the project The IFRIC made the following tentative decisions: Non-cash distributions are defined as unconditional non-reciprocal transfers of assets by an entity to its equity holders acting in their capacity as equity holders. All equity holders of an entity within the same class are treated equally. After the distribution, the entity that distributes the assets is no longer entitled to any future economic benefits derived from the assets distributed. Assets distributed can be any non-cash assets (including ownership interests in subsidiaries, associates and joint ventures). The guidance would consider the treatment in the financial statements of the entity that distributes the assets only and the effect of non-cash distributions should be considered from the perspective of this entity. The staff noted that situations in which equity holders of an entity within the same class are not treated equally are not addressed as such transactions might be more in the nature of exchange transactions or might imply that there are additional transactions between the equity holders. Such issues should be considered in a second step if deemed necessary. The IFRIC discussed briefly whether cash options of the equity holders should be considered. There seemed to be a consensus not to address cash options but that the existence of such options should not scope out the underlying non-cash distribution in general. Possible alternative treatments of the distributed assets Based on the tentatively defined scope the IFRIC discussed the following issues: Whether the assets distributed should be remeasured at the time of distribution, particularly what triggers remeasurement. If so, at what amounts the assets should be remeasured. How any difference between the carrying amounts and the remeasured amounts should be accounted for. The staff presented the following alternatives: Alternative 1: An entity should not remeasure the assets distributed at the time of distribution, that is: Distributions are recorded at the carrying amounts of the assets distributed immediately prior to the distribution. No gain or loss is recognised in profit or loss. Instead, the fair values of the assets distributed are disclosed in the notes to the financial statements. Alternative 2: An entity should remeasure the assets distributed at the time of distribution, that is: Assets are remeasured to their fair values at the time of distribution. No exception to the fair value measurement requirement is given. Any difference between the carrying amounts and fair values is recognised in profit or loss immediately. The IFRIC had a thorough debate and was nearly equally split between the two alternatives. IFRIC members in favour of alternative 1 noted that IFRSs (as they exist today) do not trigger remeasurement for distributions and that a distribution does not represent a disposal of assets. Accordingly, any differences between the carrying amounts and fair values of the assets distributed would not be realised. In addition, two IFRIC members were concerned that non-cash distributions do not meet the definition of income in paragraph 92 of the Framework as they do not result in an increase of assets or a decrease in liabilities. IFRIC members in favour of alternative 2 argued that the assets concerned are realised at the time of distribution and that such a change triggers remeasurement. It was suggested that the accounting treatment for non-cash distributions should not differ from instances where the assets concerned are first sold and the cash is distributed to the equity holders afterwards. One IFRIC member offered a different analysis: the distribution should be measured at fair value (since the shareholders were receiving something of value from the entity). The distribution was recognised and measured only once. It was the discharge of the distribution obligation that triggered remeasurement of the assets used to satisfy that obligation. A straw poll of members suggested that there was sufficient support for Alternative 2 for the staff to explore this alternative further. To address the concerns of IFRIC members in favour of alternative 1 senior staff suggested to also elaborate the following approach when drafting the paper for the next meeting: Assess whether an obligation is created by the declaration of a dividend to be satisfied through a distribution in-specie. If such an obligation is created, how this liability should be measured. Whether the realisation or notional realisation of the distributed assets used to extinguish this liability may give rise to a gain/loss, and where any gain or loss is presented in the financial statements. Staff Recommendations for Tentative Agenda Decisions IFRS 5 Non-current Assets Held for Sale and Discontinued Operations–Disclosures The IFRIC continued discussing whether it should provide guidance to clarify whether the disclosure requirements of IFRS 7 Financial Instruments: Disclosures and IAS 19 Employee Benefits apply to non-current assets (or disposal groups) classified as held for sale or discontinued operations under IFRS 5. At the May 2007 meeting staff was requested to confer with the FASB/EITF staff to determine the US experience on the application of FAS 144. Subsequently, the staff had determined that when issuing SFAS 144, the FASB did not address specifically the issue of whether disclosure requirements of other standards would apply to long-lived assets (or disposal groups) to be disposed of or to discontinued operations. At this meeting, the IFRIC discussed the following alternative views: View A: IFRS 5 specifies all the disclosures required in respect of non-current assets classified as held for sale or discontinued operations, together with the requirement of IAS 33 Earnings per Share paragraph 68 to disclose the amount per share for discontinued operations. View B: Disclosures required by IFRSs, whose scope does not exclude non-current assets classified as held for sale or discontinued operations, continue to apply to non-current assets classified as held for sale or discontinued operations. Several IFRIC members agreed that, given the current wording of the Standards, View B was hard to refute although it did appear to be onerous. There was widespread support for the IASB to address this apparent conflict in the Standards via the Annual Improvements process. The IFRIC reached a tentative decision that this matter should be referred to the IASB for consideration as part of the Annual Improvements process. In doing so, the IFRIC would express a preference for the view that IFRS 5 specifies all the disclosures required in respect of non-current assets classified as held for sale or discontinued operations unless additional note disclosure would be required through application of IAS 1 paragraph 30, together with the requirement of IAS 33 Earnings per Share paragraph 68 to disclose the amount per share for discontinued operations (a modified View A). The IFRIC Coordinator noted that IFRS 5 and FAS 144 were converged standards. The staff would notify the FASB staff so that any amendment of IFRS 5 could be done in conjunction with a FASB Staff Position on FAS 144. IAS 19 Employee Benefits-Post employment benefits: Benefit allocation for defined benefit plans – salary increases The IFRIC discussed whether it should remove D9 Employee Benefits with a Promised Return on Contributions or Notional Contributions from its agenda. In phase 1 of its project on post-employment benefits the Board considers the allocation of benefits in relation to a new category of promises called defined return promises and the Board tentatively decided that an entity should always allocate the contribution component of a defined return promise to periods of service in line with the benefit formula. The IFRIC reached a tentative decision to remove this issue from its agenda. In doing so, it noted that, although the IASB would not address the issue for all defined benefit plans in Phase I of its project on post-employment benefits, it would be difficult to address this issue while the Board had an on-going project that addressed the issue for some defined benefit plans. Review of Tentative Agenda Decisions Published in the May 2007 IFRIC Update The IFRIC confirmed its decisions not to take the following items to the Agenda: IAS 12 Income Taxes - Deferred taxes arising from unremitted foreign earnings IAS 39 Financial Instruments: Recognition and Measurement - Gaming transactions IAS 39 Financial Instruments: Recognition and Measurement - Hedging multiple risks with a single derivative hedging instrument IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Plan to sell the controlling interest in a subsidiary In doing so, the IFRIC had suggestions on the wording of the Agenda Decision notices. In particular, when the IFRIC was referring something to the IASB, the staff was asked, wherever possible, to indicate the action that the IFRIC was suggesting (for example, an Annual Improvements Project item, incorporation into a current project, or other). The Agenda Decisions will be published in the July 2007 issue of IFRIC Update. The IFRIC had more substantive redeliberations on the following items. IAS 39 Financial Instruments: Recognition and Measurement - Hedging future cash flows with purchased options The IASB staff noted that this issue would be addressed in an IASB Exposure Draft on what risks and cash flows can be designated as hedged risks and hedged portions of risks, expected in the third quarter of 2007. The view in the ED is consistent with the IFRIC's tentative Agenda Decision published in the May 2007 IFRIC Update. Consequently, the IFRIC revised the reasons for its tentative decision not to take the issue to its agenda. The rationale would now be that the issue is being addressed specifically by an IASB project. IAS 39 Financial Instruments: Recognition and Measurement - Scope of IAS 39.11A The IFRIC noted the issues raised by commentators critical of the Tentative Agenda Decision. The staff had not yet been able fully to investigate those matters and was therefore not in a position to recommend a particular action. The IFRIC agreed to defer confirming their Tentative Agenda Decision pending further investigation by the staff. One IFRIC member was concerned that, in the absence of a confirmed agenda decision, there might be the suggestion that any non-financial item with an embedded derivative could be designated at fair value through profit and loss, whereas the Board clearly intended the fair value option to be limited (see IAS 39 BC78). The July IFRIC Update will contain a 'status report' on this matter. IAS 39 Financial Instruments: Recognition and Measurement – AG33(d)(iii) The IFRIC noted that the comments received on this Tentative Agenda Decision demonstrated that there was difficulty in this area, which might suggest that guidance should be developed. However, IFRIC members noted that any guidance would be in the nature of Application Guidance, which is beyond IFRIC's terms of reference. The staff suggested that additional analysis was necessary before it could make an informed recommendation to the IFRIC. In particular, it would revert to the standard-setters who had commented (plus at least one other known to face the issue in its jurisdiction) and the international accounting networks to gain more information and understanding of current guidance and practice. The IFRIC agreed to defer confirming their Tentative Agenda Decision. The July IFRIC Update will contain a 'status report' on this matter. This summary is based on notes taken by observers at the IFRIC meeting and should not be regarded as an official or final summary.

12 July 2007: IFRIC will not meet on Friday 13 July
The International Financial Reporting Interpretations Committee (IFRIC) completed its July 2007 meeting in one day, Thursday 12 July 2007. The session scheduled for Friday 13 July has been cancelled. We expect to post the notes taken by Deloitte observers at the meeting tomorrow (13 July). Click for Meeting Agenda.

12 July 2007: Updated EFRAG endorsement status report
The European Financial Reporting Advisory Group has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 9 July 2007 (PDF 30k). Currently, the following IASB pronouncements have not yet been endorsed for use in Europe:

• IFRS 8 Operating Segments
• IAS 23 Borrowing Costs (revised March 2007)
• IFRIC 12 Service Concession Arrangements
• IFRIC 13 Customer Loyalty Programmes
• IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements, and their Interaction

12 July 2007: IASCF publishes 2007 annotated bound volume of IFRSs

The International Accounting Standards Committee Foundation has published A Guide through International Financial Reporting Standards (2007). The Guide contains the full text of all current IFRSs at 1 January 2007, extensively annotated with thousands of cross-references to guide readers through the text of each IFRS and all the other IASB material that accompanies but does not form part of the IFRSs (including illustrative examples and implementation guidance). Available in hard copy, CD-ROM and online. In the electronic versions, the cross-references are hyperlinked. The book price is £90 plus shipping. Click Here to go to IASCF web page with ordering details.

11 July 2007: Report of ECOFIN discussion of IASB governance and funding

At its meeting on 10 July 2007 in Brussels, the Economic and Financial Affairs Council of the European Union discussed IASB governance and financing. The Council adopted the conclusions noted below. They are set out in the Preliminary Press Release Following the Meeting (PDF 236k).

11 July 2007: IASB will conduct post-implementation reviews of standards
Bertrand Collomb, Vice Chairman of the International Accounting Standards Committee Foundation, appeared before the Open Coordinators Meeting of the Economic and Monetary Affairs Committee of the European Parliament in Brussels on 10 July 2007. Mr Collomb reported that the IASB will undertake post-implementation reviews of all entirely new IFRSs, major interpretations, and major amendments to existing standards after two full years of implementation. Such reviews would focus on important issues identified as contentious as part of the development of standards and any significant unexpected costs or problems encountered by preparers in implementing the provisions of the standard or by users in analysing the information. This requirement will be in place for any new IFRSs or major amendments to existing standards and major interpretations adopted by the IASB with an effective date beginning on or after 1 January 2009. As part of this process, the IASB will undertake reviews on IFRS 8 Operating Segments, IFRIC 12 Service Concession Arrangements, and any standard to emerge on the business combinations phase two project. Click to Download Mr Collomb's Presentation (PDF 39k).

10 July 2007: Heads Up newsletter on SEC proposal to drop reconciliation
We have posted the 9 July 2007 Edition of the Heads Up Newsletter (PDF 69k) published by Deloitte & Touche LLP (United States). The newsletter, titled SEC Proposes Easing Requirements for Foreign Filings, summarises the SEC's proposed rule to drop its US GAAP reconciliation requirement for foreign private issuers that prepare financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the IASB.

10 July 2007: Standards Advisory Council meetings for 2008

The IASB's Standards Advisory Council (SAC) has scheduled three meetings in London during 2008, in conjunction with the IASB's February, June, and November 2008 Board meetings:

• Thursday 14 and Friday 15 February 2008 (IASB meets the following week)
• Monday 23 and Tuesday 24 June 2008 (IASB meets the preceding week)
• Thursday 13 and November 14 2008 (IASB meets the following week)

9 July 2007: Commissioner McCreevy – benefits of global standards
In a presentation titled Regulators: Help or Hindrance? (PDF 79k) before the International Corporate Governance Network, Charlie McCreevy, the European Commissioner for Internal Market and Services, spoke about the benefits that high quality international standards can bring to the world's capital markets. An except:

9 July 2007: ECOFIN will discuss IASB governance and funding
The European Union Council of Economy and Finance Ministers (ECOFIN) will meet on Tuesday 10 July 2007 in Brussels. On the Agenda of the ECOFIN Meeting (PDF 123k), among other matters, is the "governance and funding of the International Accounting Standards Board (IASB) and International Accounting Standards Committee Foundation (IASCF)". The Ministers are expected to adopt a broad range of conclusions on governance, addressing such matters as

• IASB consideration of comments from the Roundtable on Consistent Application of IFRSs in the EU
• ex-ante impact analyses for new standards and ex-post analyses of the impact and functioning of issued standards and interpretations
• geographical balance in all key committees of the IASB/IASCF structure

8 July 2007: Accounting Roundup – second quarter 2007 review
We have posted Accounting Roundup: Second Quarter in Review–2007 (PDF 420k), prepared by the National Office Accounting Standards and Communications Group of Deloitte & Touche LLP (USA). This newsletter provides brief descriptions of pronouncements affecting accounting, financial reporting, and corporate governance issued during 2Q-2007 by standard setters and regulators including FASB, EITF, AICPA, SEC, FASAB, PCAOB, GASB, IASB, and IFRIC. It also outlines other second-quarter regulatory and professional developments. This quarterly review consists of articles, adapted as necessary, from issues of Accounting Roundup published in April and May 2007, as well as new articles for the month of June. You will find past issues Here.

7 July 2007: IASB July 2007 Board meeting agenda

The International Accounting Standards Board will hold its July 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 17-20 July 2007. Presented below is the agenda for the meeting. The meeting will be webcast live.

17-20 July 2007, London Tuesday 17 July 2007 (afternoon only) Conceptual Framework – Elements and Recognition Earnings per Share The Board will consider some detailed issues that have been identified with the application of the fair value model in certain circumstances, to maintain convergence with FAS 128. Share-based payment – Vesting Conditions and Cancellations IFRIC Update Wednesday 18 July 2007 (afternoon only) Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation – Re-deliberations of Exposure Draft: sweep issues Annual Improvements Process 1. Should IFRS 5 be amended to clarify the accounting in consolidated financial statements of a subsidiary classified as held for sale? 2. Should IAS 36 be amended to conform the disclosures provided for value in use and fair value less costs to sell when discounted cash flow models are used? 3. Should the guidance in IAS 17 relating to the classification of leases of land and buildings be amended? 4. Should IAS 10 be amended to clarify why dividends declared after the balance sheet date are not liabilities? 5. Should IAS 19 be amended to address an inconsistency relating to accounting for plan administration costs? 6. Should the components of borrowing costs in IAS 23 be aligned with the definition in IAS 39? 7. Should IAS 34 be amended to clarify that EPS disclosures need only be given when required by IAS 33? The Board will also be asked to consider some alternative accounting models to address the issues it discussed at the June meeting relating to replanting obligations for biological assets. Transitional provisions and whether early adoption should be encouraged for any or all of the proposed amendments. Thursday 19 July 2007 IAS 27 Consolidated and Separate Financial Statements – Formation of a new parent entity Post-employment Benefits – Discussion paper issues Definitions Classification of benefits in payment Benefit promises that include a “higher of” option Issues relating to the measurement of defined return promises Update from the working group meeting Income Taxes The use of an undistributed or distributed rate to measure deferred tax assets and liabilities Definitions of tax credits and investment tax credits The definition and treatment of special deductions Conceptual Framework – Measurement and Reporting Entity Friday 20 July 2007 (morning only) Liabilities – Amendments to IAS 37 Distinguishing a liability from a business risk (including stand ready obligations) Uncertainty about the existence of a present obligation Constructive obligations

6 July 2007: New CESR database on all European listed shares
The Committee of European Securities Regulators has launched a new database of information about all shares admitted to trading on EU Regulated Markets, over 7,000 companies in all. Available information includes average daily turnover, number of daily transactions, free float, regulatory oversight authority, and country code. Open CESR Database in a new window.

6 July 2007: Agenda for 12-13 July 2007 IFRIC meeting

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 12-13 July 2007. The meeting is open to the public and will be webcast. The tentative agenda is shown below.

12-13 July 2007, London Thursday 12 July IAS 18 Revenue – Customer contributions– Accounting for the receipt of customer contributions such as an asset (or cash towards the construction or acquisition of an asset) that is then used to provide an ongoing service or an ongoing supply of goods to the customer. IAS 18 Revenue – Should interpretive guidance on identifying agency arrangements be provided. IAS 27 Consolidated and Separate Financial Statements – De-mergers and other non-cash distributions IFRS 2 Share-based Payment – Group cash-settled share-based payment transactions Scheme 1 – The employees of the entity will receive cash payments that are based on the price of the equity instruments of the entity; and Scheme 2 – The employees of the entity will receive cash payments that are based on the price of the equity instruments of the parent of the entity. Under both schemes, the parent of the entity (not the entity) has the obligation to make the cash payments to the employees. Staff Recommendations for Tentative Agenda Decisions IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – Do the disclosure requirements of IFRS 7 Financial Instruments: Disclosures and IAS 19 Employee Benefits apply to non-current assets (or disposal groups) classified as held for sale and discontinued operations under IFRS 5. IAS 19 Employee Benefits – Allocation of the effects of salary increases Friday 13 July 2007 (morning only) Review of Tentative Agenda Decisions Published in May 2007 IFRIC Update IAS 12 Income Taxes – Deferred tax arising from un-remitted overseas earnings IAS 39 Financial Instruments: Recognition and Measurement – Gaming transactions IAS 39 Financial Instruments: Recognition and Measurement – Hedging future cash flows with purchased options IAS 39 Financial Instruments: Recognition and Measurement – Hedging multiple risks with a single derivative hedging instrument 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 IFRS 5 Non-current Assets held for Sale and Discontinued Operations – Plan to sell the controlling interest in a subsidiary

5 July 2007: IFRIC draft Interpretation on real estate sales

The International Financial Reporting Interpretations Committee has released for public comment a Draft Interpretation D21 Real Estate Sales.

5 July 2007: SEC staff review of IFRS financial statements
The US Securities and Exchange Commission has published on its website observations of the SEC staff arising from their review of the annual reports for 2006 of more than 100 foreign private issuers containing financial statements prepared on the basis of International Financial Reporting Standards. Staff comments relate to the following matters, among others:

• Assertion of compliance with IFRSs. "In the vast majority of the companies we reviewed, the company's auditor opined on the company's compliance with the jurisdictional version of IFRS that the company used, but did not opine on the company's compliance with IFRS as published by the IASB."
• Manner of presentation - income statement. Issues included descriptions of subtotals in the income statement, accounting policies for excluding items from operating income, and calculation of voluntary per-share measures.
• Manner of presentation - cash flow statement. Issues included definition of cash equivalents and presentation of expenses outside of cash flow from operations.
• Intercorporate investments. Accounting treatments for common control mergers, recapitalisations, reorganisations, acquisitions of minority interests, and similar transactions.
• Consolidation. Exclusion of a subsidiary from consolidation.
• Accounting policy decisions. Basis for choosing accounting policies that are not explicitly covered in IFRSs.
• Specialised industries. 'Substantial variation' in accounting for insurance contracts and in the reporting of extractive industry exploration and evaluation activities.
• Accounting policies regarding revenue recognition, intangible assets and goodwill, identifying and evaluating impairment, leases, contingent liabilities, and financial instruments.
• Banks. Recognition of loan impairments by banks.

5 July 2007: IFRIC issues Interpretation on pension asset ceiling
The International Financial Reporting Interpretations Committee has issued an Interpretation, IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. IFRIC 14 provides general guidance on how to assess the limit in IAS 19 Employee Benefits on the amount of a pension fund surplus that can be recognised as an asset. It also explains how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement. The Interpretation will standardise practice and ensure that entities recognise an asset in relation to a surplus on a consistent basis. No additional liability need be recognised by the employer under IFRIC 14 unless the contributions that are payable under the minimum funding requirement cannot be returned to the company. IFRIC 14 is likely to have the most impact in countries that have a minimum funding requirement and where there are restrictions on a company's ability to get refunds or reduce contributions. IFRIC 14 is effective for annual periods beginning on or after 1 January 2008. Earlier application is permitted. Click for the Press Release (PDF 63k).

4 July 2007: Heads Up newsletter on recent SEC developments
We have posted the 3 July 2007 Edition of the Heads Up Newsletter (PDF 76k) published by Deloitte & Touche LLP (United States). The newsletter, titled SEC Tackles a Wide Range of Topics, discusses the following recent SEC developments:

1. the issuance of interpretive guidance for management's internal control evaluations,
2. rule amendments for management's report on internal controls,
3. proposed changes for smaller public companies,
4. the establishment of an advisory committee to improve financial reporting, and
5. proposals for requiring electronic filing and simplifications of Form D.

3 July 2007: SEC releases its proposal to drop the reconciliation for IFRS filers
The US Securities and Exchange Commission has published the text of its proposal to accept from foreign private issuers their financial statements prepared in accordance with International Financial Reporting Standards ('IFRS') as published by the International Accounting Standards Board ('IASB') without reconciliation to generally accepted accounting principles ('GAAP') as used in the United States. The proposal would amend Form 20-F and make conforming changes to Regulation S-X to accept financial statements prepared in accordance with the English language version of IFRS as published by the IASB without reconciliation to US GAAP when contained in the filings of foreign private issuers with the Commission. The proposal notes that "current requirements regarding the reconciliation to U.S. GAAP will not change for a foreign private issuer that uses a basis of accounting other than the English language version of IFRS as published by the IASB". Click to Download the SEC Proposal (PDF 296k). There is a 75-day comment period. The proposal includes a link for submitting comments electronically.

2 July 2007: Deloitte UK views on use of IFRS for SMEs in UK
Deloitte & Touche (United Kingdom) has submitted a letter of comment to the UK Accounting Standards Board's invitation to comment on the way forward in the United Kingdom regarding accounting standards for unlisted companies. Deloitte UK welcomes the IASB's SME Exposure Draft and supports the approach the IASB has taken in developing a simplified, self-contained set of accounting principles.

2 July 2007: IAS Plus Newsletter on IFRIC 13

Deloitte's IFRS Global Office has published a special edition IAS Plus Newsletter on IFRIC 13 Customer Loyalty Programmes (PDF 106k). IFRIC 13 addresses the accounting by entities that provide their customers with incentives to buy goods or services by providing awards (called 'award credits' in the Interpretation) as part of a sales transaction. Common examples are airline and hotel loyalty schemes and credit card reward schemes. IFRIC 13 requires the entity that grants the awards to account for the sales transaction that gives rise to the award credits as a 'multiple element revenue transaction' and allocate the fair value of the consideration received or receivable between the award credits granted and the other components of the revenue transaction. This newsletter explains the requirements of IFRIC 13. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.