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30 June 2007: Deloitte view on endorsement of IFRS 8 in Europe
We reported in our News Story of 5 June 2007 that the European Commission is conducting a public consultation regarding the endorsement of IFRS 8 Operating Segments before finalising a report on the potential impact of endorsement for submission to the European Parliament in September 2007. The Commission's public consultation involved a questionnaire to which responses were due 29 June 2007. The issue is whether it is appropriate to endorse IFRS 8 for use in the EU, thereby superseding IAS 14 Segment Reporting, which is currently in use in the EU. The Deloitte IFRS specialists centres in a number of the Deloitte European firms have jointly replied to the Commission's consultation supporting the endorsement of IFRS 8. The letter notes that IFRS 8 has currently received a positive advice from the EFRAG (the 'technical level' of the EU endorsement process for accounting standards) and the ARC (the 'political' level of the endorsement process). Deloitte advocates immediate endorsement of IFRS 8 in the EU. Click for:

• Deloitte Cover Letter (PDF 114k)
• Deloitte Response to the EC Questionnaire (PDF 23k)

30 June 2007: SME field test questionnaire in French and Spanish
In News Story of 20 June 2007 we reported that the IASB has launched a comprehensive programme for field testing the proposals in the Exposure Draft (ED) of an IFRS for Small and Medium-sized Entities (IFRS for SMEs). The testing will help to identify aspects of the (ED) that may need reconsideration. Companies taking part in the field test are asked to provide background information about the company, submit their most recent annual financial statements under their existing accounting framework, prepare financial statements in accordance with the proposed IFRS for SMEs for the same financial year, and respond to a series of questions designed to identify any specific problems the company encountered in applying the exposure draft. Initially, the IASB published the field test questionnaire in English. The IASB has now posted the French and Spanish translations of the field test questionnaire:

• French Field Test Questionnaire - MS Word (ZIP 37k)
• Spanish Field Test Questionnaire - MS Word (ZIP 46k)

29 June 2007: New Deloitte Australia 'what's new' checklist

Deloitte (Australia) has published What's New for June 2007 (PDF 306k). This guide provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 June 2007. Entities can use this listing to perform a quick check that all new financial reporting requirements have been fully considered as part of their June reporting close process. Other Australia news is Here.

29 June 2007: Updated Deloitte Guide to IFRS 2 Share-based Payment

The Deloitte IFRS Global Office has published a new 128-page IAS Plus Guide to IFRS 2 Share-based Payment 2007 (PDF 748k). The guide not only explains the detailed provisions of IFRS 2 but also deals with its application in many practical situations. Because of the complexity and variety of share-based payment awards in practice, it is not always possible to be definitive as to what is the 'right' answer. However, in this guide Deloitte shares with you our approach to finding solutions that we believe are in accordance with the objective of the Standard. Click for links to other Deloitte IFRS Publications.

29 June 2007: New Global Offerings Services newsletter

We have posted the May 2007 Edition of the Deloitte Global Offerings Services Newsletter (PDF 148k). 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.

29 June 2007: EFRAG 2006 annual review

The European Financial Reporting Advisory Group (EFRAG) has published its Annual Review for 2006 (PDF 1,826k). The Chairman's report identifies a range of key events and activities in 2006, including:

• IFRS implementation in Europe
• A new formal working arrangement with the European Commission, Accounting Regulatory Committee, Roundtable for Consistent Application of IFRSs, and Standards Advice Review Group
• New endorsement process under the IAS Regulation giving the European Parliament more influence in the endorsement process.
• Pro-Active Activities in Europe (PAAinE)
• IFRS convergence prospects with US GAAP
• Meetings with the European national standard setters
• Establishment of an EFRAG User Panel
• Technical work responding to IASB Exposure Drafts and Discussion Papers and IFRIC Draft Interpretations and giving endorsement advice on issued standards and interpretations.

28 June 2007: IFRIC issues Interpretation on customer loyalty programmes
The International Financial Reporting Interpretations Committee has issued an Interpretation, IFRIC 13 Customer Loyalty Programmes. IFRIC 13 addresses accounting by entities that grant loyalty award credits (such as 'points' or travel miles) to customers who buy other goods or services. Specifically, it explains how such entities should account for their obligations to provide free or discounted goods or services ('awards') to customers who redeem award credits. Click for the Press Release (PDF 63k). The IFRIC also published some information questions and answers as a simple introduction to IFRIC 13 (available from the IASB's website).

28 June 2007: PCAOB 2006 report highlights international efforts
The US Public Company Accounting Oversight Board has published its Annual Report for 2006 (PDF 1,340k). The report emphasises the PCAOB's efforts to coordinate its work with auditor oversight bodies in other countries. See especially page 8 for details of the PCAOB's international activities. Two excerpts from the report:

28 June 2007: SEC panel on streamlining financial reporting
The US Securities and Exchange Commission is forming an advisory committee to study the US financial reporting system. The SEC Advisory Committee on Improvements to Financial Reporting will study the causes of complexity and recommend to the Commission how to make financial reports clearer and more beneficial to investors, reduce costs and unnecessary burdens for preparers, and better utilize advances in technology to enhance all aspects of financial reporting. 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.

• SEC Press Release (PDF 49k)
• FASB Press Release (PDF 57k)

27 June 2007: Deloitte CEO applauds SEC's IFRS proposal

Deloitte global CEO James H Quigley, speaking at the firm's annual World Meeting in Berlin, said that governments and regulators must continue with genuine efforts to achieve consistency in the development and application of global financial reporting standards and a global reporting infrastructure in order to enhance protection for investors. Mr Quigley pointed out that the increasing cooperation between the US Securities and Exchange Commission and the European Commission to facilitate mutual recognition of financial reporting standards in the US and Europe is a significant step toward the advancement of a truly global reporting framework. He called the SEC's recent proposal to eliminate the reconciliation requirement for IFRS registrants "testament to the success of the convergence process and a significant milestone in the journey". Click for Press Release (PDF 21k).

26 June 2007: IASB meeting dates for 2008

The IASB has published its meeting schedule for 2008. Board meetings are in London other than the October joint meeting with FASB. You can always find future meeting dates Here:

25 June 2007: European paper on stewardship as a financial reporting objective
The European Financial Reporting Advisory Group (EFRAG) and a number of other European accounting standard-setters – under the lead of the UK Accounting Standards Board (ASB) – have today published a brief paper discussing the rationale for including stewardship, or directors' accountability to shareholders, as a separate objective of financial reporting. The paper notes that the IASB and FASB proposed in their July 2006 Discussion Paper (DP) Preliminary Views on an Improved Conceptual Framework for Financial Reporting that the converged framework should specify only one objective of financial reporting, that of 'decision-usefulness' for resource allocation. They argued that this objective 'encompasses providing information useful in assessing management's stewardship'. The European paper seeks to demonstrate that:

• there is a broad consensus amongst the majority of the respondents that the stewardship/accountability objective should be a separate objective of financial reporting;
• stewardship/accountability is linked to agency theory and is a broader notion than resource allocation as it focuses on both past performance and how the entity is positioned for the future. It should therefore be retained as a separate objective of financial reporting to ensure that there is appropriate emphasis on company performance as a whole and not just on potential future cash flows; and
• stewardship/accountability has implications for financial reporting that can be demonstrated by way of examples.

25 June 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 21 June 2007 (PDF 36k). 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

25 June 2007: Stock exchanges voice strong support of IFRSs
In a recent letter in response to a consultation paper of the IOSCO Technical Committee, the World Federation of Exchanges (WFE) explained the importance of sound financial reporting to public capital markets and reaffirmed the WFE's strong support of IFRSs. The WFE is the global organisation of 54 regulated exchanges from all regions of the world that, together, account for over 97% of world stock market capitalisation, Click to Download the WFE Letter (PDF 240k). An excerpt:

25 June 2007: Proposed alternative market in Spain would require IFRSs

The Spanish Stock Exchange (Bolsas y Mercados Españoles or BME) is in process of forming a new 'alternative market' for growth companies known as Mercado Alternativo Bursatil (MAB). The MAB would be a market for 'low-capitalisation companies in search of growth opportunities'. To list on the MAB, candidate companies would be required to publish audited IFRS financial statements. Similar markets exist elsewhere in Europe, including France, Germany, Austria, and United Kingdom.

24 June 2007: Some concern about the SEC's reconciliation proposal

In a joint press release, two leaders of the committee within the European Parliament that has responsibility for oversight of accounting matters have expressed some concern about the way the SEC has proposed to eliminate the required reconciliation to US GAAP for foreign registrants that use IFRSs. They want to "ensure that the role legislators play in international accounting standard setting is not undermined.". Click to Download the Press Release (PDF 72k).

24 June 2007: Agenda project pages updated

We have updated the following agenda project pages to reflect discussions and decisions at the June 2007 meeting of the International Accounting Standards Board:

• Annual Improvements Process 2006-2007
• Business Combinations II
• Conceptual Framework
• Extractive Activities Research Project
• Financial Statement Presentation
• IAS 39 – Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation
• IAS 39 – Identification of exposures qualifying for hedge accounting
• IFRIC: Customer Loyalty Programmes
• IFRIC: IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.
• IFRS 1 First-time Adoption of International Financial Reporting Standards Cost of an Investment in a Subsidiary
• Joint Ventures
• Leases
• Post-employment Benefits

24 June 2007: IFRSs will enhance shareholder value

Paul Pacter, a Director in Deloitte's IFRS Global Office and webmaster of www.iasplus.com made a presentation on IFRS Convergence Will Enhance Shareholder Value at the Annual Conference of the ACCA in Hong Kong on 23 June 2007. He discussed:

• Why global accounting standards are needed.
• How they enhance shareholder value.
• Use of IFRSs around the world.
• IASB's Current Agenda and Work Plan, including convergence of IFRSs and US GAAP.
• Convergence of Chinese GAAP and IFRSs.

23 June 2007: Notes from days 3 and 4 of the IASB June 2007 meeting

The International Accounting Standards Board held its June 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 19-22 June 2007. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board approved Interpretations on Customer Loyalty Programmes and on the Limit on a Defined Benefit Asset.

22 June 2007: Near-final draft of IAS 1 Presentation of Financial Statements
The near-final draft of a forthcoming revisions to International Accounting Standard IAS 1 Presentation of Financial Statements has been posted to the secure eIFRS Online Subscriber Area of the IASB's website. These revisions to IAS 1 are the result of Phase A of the IASB's financial statement presentation project, for which an exposure draft was issued on 16 March 2006. Click here for our Project Page.

21 June 2007: SEC proposes to drop reconciliation for IFRS registrants
On 20 June 2007, the US Securities and Exchange Commission agreed to issue a 'proposing release' that would eliminate the requirement to reconcile financial statements to US GAAP if the financial statements are in full compliance with the English language version International Financial Reporting Standards (IFRSs) as published by the International Accounting Standards Board. This proposed approach would give foreign private issuers a choice of using IFRSs without reconciliation, US GAAP, or their local GAAP reconciled to US GAAP in preparing financial statements that are filed with the SEC either in a registration statement or an annual report. The changes would apply starting with their 2008 annual reports, which would be filed in 2009. The release is expected to be posted within the next week or so and will have a 75-day comment period. Michael D Coco, Special Counsel in the SEC's Office of International Corporate Finance, outlined the proposal to the Commission. Click to Download Mr Coco's Remarks (PDF 37k). Also, the SEC is expected to issue during the next several months a 'concept release' targeted at US domestic issuers. That release will invite comments on whether US issuers should be permitted to use IFRSs in preparing their financial statements. On the basis of the feedback it receives, the Commission will consider whether to issue a proposing release changing the requirements for domestic companies. That release could come in 2008 or 2009.

21 June 2007: Notes from day 2 of the IASB June 2007 meeting

The International Accounting Standards Board held its June 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 19-22 June 2007. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board approved Interpretations on: IFRIC: Customer Loyalty Programmes IFRIC: IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

21 June 2007: SEC Chairman's remarks on globalisation and IFRSs

US SEC Chairman Christopher Cox recently addressed a meeting of the New York Society of Security Analysts. His remarks focused on globalisation of the world's securities markets, the need for IFRSs, and how XBRL can contribute to development of global accounting standards. Click to Download Chairman Cox's Remarks (PDF 22k). Here is an excerpt:

20 June 2007: Notes from day 1 of the IASB June 2007 meeting

The International Accounting Standards Board held its June 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 19-22 June 2007. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board approved Interpretations on Customer Loyalty Programmes and on the Limit on a Defined Benefit Asset.

20 June 2007: CEBS plans for maintaining guidelines based on IFRSs
In our News Story of 22 April 2007, we reported that the Committee of European Banking Supervisors (CEBS) invited comments on proposed amendments to its Financial Reporting Guidelines (FINREP) (PDF 381k). Those Guidelines are used by European banks in preparing their supervisory reports based on IFRSs. The CEBS has recently published an Updated Report to the EU Financial Services Committee (FSC) (PDF 1,107k) indicating that CEBS does not plan to add any major new reporting guides "in the next several years". However CEBS plans to update the guidelines annually, as necessary, to reflect changes to IFRSs.

20 June 2007: Global convergence with International Standards on Auditing

At the recent Mexico City Conference on Accounting and Auditing in Latin America, John Kellas, Chairman of the International Auditing and Assurance Standards Board spoke about Convergence with International Standards on Auditing. While his remarks focused on auditing standards, they have equal relevance in the context of global accounting standards. Regarding adoption versus convergence, Mr Kellas argued strongly for the direct adoption by a national standard setter of ISAs, or working towards adopting these standards. "For the vast majority of countries, adoption is the most sensible strategy: Adoption has all the advantages of convergence; all countries may contribute to the standard setting process and IAASB has no domination by any one jurisdiction; and it is the fastest way to eliminate or minimise differences." Mr Kellas presented a list of attributes of high quality auditing standards that apply equally to accounting standards:

20 June 2007: IASB begins field testing of SME Exposure Draft
The IASB has launched a comprehensive programme for field testing the proposals in the Exposure Draft of an IFRS for Small and Medium-sized Entities (IFRS for SMEs) during the comment period. The testing will help to identify aspects of the exposure draft that may need reconsideration. Companies taking part in the field test are asked to provide background information about the company, submit their most recent annual financial statements under their existing accounting framework, prepare financial statements in accordance with the proposed IFRS for SMEs for the same financial year, and respond to a series of questions designed to identify any specific problems the company encountered in applying the exposure draft.

• Press Release (PDF 46k).
• Field Test Questionnaire and Compliance Checklist (ZIP of Word DOCs 200k)
• More Information about the SME Field Tests on IASB's website.

20 June 2007: Special newsletter on insurance Discussion Paper

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter titled Phase II of IFRS for Insurance Contracts – IASB Discussion Paper (PDF 1,282k). On 3 May 2007, the IASB released for comment a Discussion Paper on accounting for insurance and reinsurance contracts (the DP). This is the second phase of the insurance contracts project which in 2005 introduced IFRS 4 Insurance Contracts. The proposals set out in the DP would introduce fundamental changes to insurance accounting and focus on market-consistent measurement of insurance liabilities. This will affect the way investors, regulators, and other stakeholders assess the insurance industry. This special edition of our IAS Plus newsletter, prepared by insurance specialists, summarises and comments on the measurement issues raised in the DP. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

19 June 2007: IASC Foundation conference 29-30 August in Singapore

The IASC Foundation, under which the IASB operates, has organised its annual IFRS Conference 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:

1. IFRIC Update
2. Insurance Contracts
3. IFRS for SMEs
4. IFRSs Teaching and Research
5. US Market Update

18 June 2007: IFRSs help improve bank regulation in Europe
In its 2006 annual report, the Committee of European Banking Supervisors acknowledges that "the adoption of the Capital Requirements Directive (CRD) in June 2006, together with the introduction of International Financial Reporting Standards (IFRS), provides CEBS with a unique window of opportunity to promote greater consistency in supervisory approaches across the EU and the European Economic Area (EEA)." The CRD implements the Basel II capital adequacy framework in the European Union (EU). The new framework harmonises capital requirements for credit institutions and investment firms and encourages them to improve their risk management processes. Click to download 2006 CEBS Annual Report (PDF 1,903k).

18 June 2007: IOSCO roundtable examines quality of audits
At a 1 June 2007 Roundtable on the Quality of Public Company Audits sponsored by the International Organization of Securities Commissions (IOSCO) in Paris, securities regulators for the world's capital markets considered the current quality of audit services and how to make audits more effective. Participants in the Roundtable included representatives from the financial analyst and investor community, regulators, public companies, and audit firms. Click for Media Release (PDF 38k).

18 June 2007: Interim reporting compliance checklist for 2007
Our Model IFRS Financial Statements and Compliance Checklists Page has links to a wide range of Deloitte illustrative financial statements and related presentation, disclosure, and compliance checklists for IFRSs. We have added to that page an IAS 34 compliance checklist as of 31 May 2007. The checklist is formatted to allow the recording of a review of interim financial statements, with a place to indicate yes/no/not-applicable for each item.

• 2007 Interim Reporting Compliance Checklist (PDF 91k)
• 2007 Interim Reporting Compliance Checklist (Word version) (ZIP of Word file 42k)

18 June 2007: IFAC PIOB's second annual report
IFAC's Public Interest Oversight Board (PIOB) has issued its second public report. The PIOB was established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as its Member Body Compliance Program. The Compliance Program is designed to encourage member bodies to adopt international standards, including IFRSs, and to implement quality assurance and investigation and discipline programs. The report gives detailed information about the actions and decisions taken during this past year and the PIOB's increasing focus on visibility and two-way communication with other key stakeholders in its mission. Finally, the PIOB has set out its further views on the nature of the international public interest. A Monitoring Group comprised of international financial regulators oversees the work of the PIOB. Click to download the Second Public PIOB Report (PDF 6,040k).

16 June 2007: EITF Snapshot for June 2007
We have posted the latest edition of EITF Snapshot (PDF 86k) summarising the 14 June 2007 meeting of FASB's Emerging Issues Task Force. EITF Snapshot, published by Deloitte & Touche LLP (USA), enables readers to identify relevant topics and to understand quickly the meeting's outcome. Past issues can be downloaded Here.

16 June 2007: Conference on accounting and auditing in Latin America – day 3
The World Bank, the International Federation of Accountants, and the Interamerican Development Bank are jointly sponsoring a conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean. The conference is being held in Mexico City on 13-15 June 2007. About 500 people are participating. Presented below are notes taken by Deloitte observers at the third and final day of the conference.

15 June 2007: Near-final draft of pension asset ceiling Interpretation
The near-final draft of a forthcoming IFRIC Interpretation IAS 19–The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction has been posted to the secure eIFRS Online Subscriber Area of the IASB's website. The draft Interpretation is on the IASB's June 2007 meeting agenda for ratification. Click here for our Project Page.

15 June 2007: Conference on accounting and auditing in Latin America – day 2
The World Bank, the International Federation of Accountants, and the Interamerican Development Bank are jointly sponsoring a conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean. The conference is being held in Mexico City on 13-15 June 2007. About 500 people are participating. Presented below are notes taken by Deloitte observers at the second day of the conference.

14 June 2007: US SEC will discuss eliminating reconciliation next week
At its regular open meeting on Wednesday, 20 June 2007, the US Securities and Exchange Commission will consider whether to propose amendments to Form 20-F, Rules 3-10 and 4-01 of Regulation S-X, Forms F-4 and S-4, and Rule 701 under the Securities Act, to accept financial statements prepared in accordance with International Financial Reporting Standards as published by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States when contained in the filings of foreign private issuers with the Commission. Click for SEC Meeting Notice (PDF 29k).

14 June 2007: Symposium on convergence in Korea
The Korea Accounting Standards Board (KASB) held a symposium on Present and Future of Convergence between US GAAP and IFRSs on Thursday 7 June 2007 in Seoul. Robert H Herz, Chairman of the US Financial Accounting Standards Board, was the keynote speaker. He presented a background on the US financial reporting system, offered a US perspective on FASB international convergence, and commented on the 'principles versus rules' debate. Click to download:

• Mr Herz's Presentation (PDF 31k)
• Brief Summary of the Symposium prepared by the KASB staff (PDF 11k)

14 June 2007: Conference on accounting and auditing in Latin America – day 1
The World Bank, the International Federation of Accountants, and the Interamerican Development Bank are jointly sponsoring a conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean. The conference is being held in Mexico City on 13-15 June 2007. About 500 people are participating. The main purpose of the event is to create greater awareness of the importance of sound financial reporting and auditing to the development of a well-functioning market economy and of an efficient public sector. Presented below are notes taken by Deloitte observers at the first day of the conference.

13 June 2007: IFAC standards for accountants in business

The Professional Accountants in Business Committee of the International Federation of Accountants has released the following documents:

• An exposure draft of the Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, which sets out the objective, scope, and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types. Comment deadline is 12 September 2007.
• The first International Good Practice Guidance Defining and Developing an Effective Code of Conduct for Organizations. This guidance will assist professional accountants and their organizations in developing and implementing a code of conduct within a values-based culture.
• An exposure draft of a proposed International Management Accounting Statement titled Project Appraisal Using Discounted Cash Flow. The Statement aims to support professional accountants in business in applying and promoting the use of discounted cash flow and net present value to evaluate investments. Comment deadline is 12 September 2007.

13 June 2007: New Deloitte Guide to IAS 34

The Deloitte IFRS Global Office has published the 2007 edition of Interim Financial Reporting: A Guide to IAS 34. IAS 34 prescribes the minimum content for an interim financial report, and the principles for recognition and measurement in financial statements for a financial reporting period shorter than a full financial year. This guide provides an overview of the Standard, application guidance and examples, a model interim financial report, and an IAS 34 compliance checklist. Click to Download the Deloitte Guide to IAS 34 (PDF 531k, June 2007, 60 pages).

12 June 2007: SEC staff presentation on accounting complexity, IFRS initiatives
At a recent conference, James L Kroeker, Deputy Chief Accountant of the US Securities and Exchange Commission, spoke about complexity in financial reporting, the need to use judgement in identifying and applying the principles in accounting standards, and the importance of clear disclosure of the judgements made and the basis for those judgements. He also spoke about the SEC's current initiatives regarding IFRSs. Click to Download Mr Kroeker's Remarks (PDF 59k). Here is an excerpt:

11 June 2007: Agenda for IASCF Trustees meeting 2-3 July

The Trustees of the International Accounting Standards Committee Foundation (IASCF), under which the IASB operates, will meet on Monday and Tuesday 2 and 3 July 2007 at the Hotel Intercontinental, Paseo De la Castellana 49, Madrid, Spain. The agenda for the meeting is noted below.

10 June 2007: Specialised industry standards – IASB and FASB contrasted

In his address at the 26th Annual SEC and Financial Reporting Institute Conference at the University of Southern California, FASB Chairman Robert H Herz spoke about Specialised Industry Accounting and Reporting: Too Much of a Good Thing? (PDF 66k). Mr Herz's remarks include an update on many of the joint FASB-IASB projects. Also, he discussed the different approaches to specialised industry standards taken by the FASB and its predecessors in contrast to the IASB. Here is an excerpt:

10 June 2007: IASB will meet with Analyst Representative Group
Members of the International Accounting Standards Board will meet in public session with the Analyst Representative Group (ARG) on Wednesday 27 June 2007, 09:00h-16:00h at the Board's offices, 30 Cannon Street, London. The ARG meets three times a year with five members of the IASB to provide the views of professional investors on financial reporting issues. Click for Information about the ARG. The agenda for the upcoming meeting includes the following topics:

• Business Combinations
• Leases
• Insurance: Introduction to the Discussion Paper
• Post-employment Benefits
• XBRL
• Financial Instruments: the Due Process Document

9 June 2007: Near-final draft of customer loyalty program Interpretation
The near-final draft of a forthcoming IFRIC Interpretation Customer Loyalty Programmes has been posted to the secure eIFRS Online Subscriber Area of the IASB's website. The draft Interpretation is on the IASB's June 2007 meeting agenda for ratification. Click here for our Project Page.

9 June 2007: Agenda for SAC meeting 25-26 June 2007

The International Accounting Standards Board will meet with the Standards Advisory Council on Monday and Tuesday, 25 and 26 June 2007, at the Renaissance Chancery Court Hotel, 252 High Holborn, London. Presented below is the agenda for the meeting, which is open to public observation.

25-26 June 2007, London Monday 25 June 09:30-15:30 Opening remarks Trustees remarks Conceptual Framework - stewardship Discussion of IASB work programme and convergence Report from IASB Chairman Questions from SAC Tuesday, 26 June 2007 08:30-15:30 Financial instruments Agenda proposals Post-employment benefits Business combinations

8 June 2007: IASB June 2007 meeting agenda

The International Accounting Standards Board will hold its June 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 19-22 June 2007. Presented below is the agenda for the meeting. The Board will also meet with the Standards Advisory Council on Monday and Tuesday 25 and 26 June 2007 at the Renaissance Chancery Court Hotel, 252 High Holborn, London.

19-22 June 2007, London Tuesday 19 June 2007 (afternoon only) Financial Statement Presentation Leases Business Combinations II Wednesday 20 June 2007 Technical plan Post-employment Benefits IFRIC – Approval of Interpretations: IFRIC X Customer Loyalty Programmes The Board will be asked to ratify an Interpretation of IAS 18 Revenue addressing accounting by entities that grant customer loyalty awards to their customers. The Interpretation was approved by the IFRIC at its May meeting. IFRIC X IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction The Board will also be asked to ratify an Interpretation of IAS 19 Employee Benefits addressing the limit on the recognition of an asset for a surplus in a defined benefit plan, minimum funding requirements and their interaction. Proposed amendments to IAS 39 Financial Instruments: Recognition and Measurement - Identification of exposures qualifying for hedge accounting Conceptual Framework – Objectives and Qualitative Characteristics Thursday 21 June 2007 (afternoon only) IFRS 1 First-time Adoption of International Financial Reporting Standards Cost of an Investment in a Subsidiary Joint Ventures Annual Improvements Process – Discussion of the following issues: 1. Should IAS 1 Presentation of Financial Statements be amended to clarify whether derivatives that are not used for hedging be classified as current or non-current in the balance sheet? 2. Should IAS 16 Property, Plant and Equipment be amended to require that the sale of assets that were previously held for rental be presented on a gross basis in the income statement in certain circumstances? 3. Should the apparent inconsistency between IAS 20 Accounting for Government Grants and Disclosure of Government Assistance and IAS 39 Financial Instruments: Recognition and Measurement be amended to clarify whether interest should be imputed to nil or low interest loans received from a government? 4. Should IAS 39 Financial Instruments: Recognition and Measurement be amended to make clear under what circumstances it is appropriate to classify financial instruments into or out of the category of financial asset or financial liability at fair value through profit or loss? 5. Should IAS 39 Financial Instruments: Recognition and Measurement be clarified to explain whether the revised or the original effective interest rate of a debt instrument should be applied in the remeasurement of the instrument's carrying amount on the cessation of fair value hedge accounting? 6. Should IAS 41 Agriculture be amended to require a post-tax discount rate to be used for calculating the fair value of biological assets? 7. Should the additional impairment test required by IAS 28 Associates be preformed in accordance with IAS 36 Impairment of Assets or IAS 39 Financial Instruments: Recognition and Measurement? 8. Should IAS 39 Financial Instruments: Recognition and Measurement be amended to classify prepayment penalties that are charged to a borrower as closely related to the underlying loan where the penalty only compensates the lender for the changes in the interest rate? 9. Should IAS 41 Agriculture be amended to address an issue identified with the accounting for replanting obligations? 10. Should IAS 41 Agriculture be amended to identify 'felled trees' as an example of agricultural produce rather than 'logs'? The Board will also be asked to consider proposed wording to reflect the decisions it took at the May Board meeting in respect of advertising and promotions costs. Friday 22 June 2007 (morning only) Extractive Activities Research Project Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation – Re-deliberations of Exposure Draft: sweep issues.

7 June 2007: Accounting Roundup – May 2007

We have posted the May 2007 Edition of Accounting Roundup (PDF 274k) published by Deloitte & Touche LLP (USA). Topics covered in this issue include:

7 June 2007: FASB-ASBJ convergence meeting

Board and staff members of the Financial Accounting Standards Board (FASB) recently traveled to Tokyo to meet with representatives of the Accounting Standards Board of Japan (ASBJ). Led by Robert H. Herz, Chairman of the FASB, and Ikuo Nishikawa, Chairman of the ASBJ, the meeting was the third in a series of discussions between FASB and ASBJ designed to enhance dialogue between the two Boards in their shared pursuit of global convergence of accounting standards. Click for FASB News Release (PDF 22k) and similar ASBJ Press Release (PDF 52k).

6 June 2007: CESR proposal for assessing IFRS 'equivalence'

The Committee of European Securities Regulators (CESR) has submitted to the European Commission recommendations for a mechanism for determining the equivalence of the generally accepted accounting principles of third countries (non-EU countries) to IFRSs as adopted in the EU. The key elements in CESR's proposal are:

• CESR's Recommendations for Equivalence Assessment (PDF 141k)
• Press Release (PDF 68k)

6 June 2007: SEC Chief Accountant speaks about IFRSs
Conrad Hewitt, the Chief Accountant of the US Securities and Exchange Commission, spoke about International Accounting Convergence (PDF 66k) at the recent IASC Foundation IFRS Conference in Zurich. Major themes in his remarks included reducing complexity in financial reporting, how strong internal controls improve the application of accounting standards, interactive data including XBRL, and the challenge to regulators of national and regional variations of International Financial Reporting Standards. An excerpt:

5 June 2007: European Commission seeks input on IFRS 8 Operating Segments
The European Commission is conducting a public consultation regarding the endorsement of IFRS 8 Operating Segments before finalising a report on the potential impact of endorsement for submission to the European Parliament in September 2007. The Commission seeks input from a broad range of constituents, including preparers, users, auditors, standard setters, and academics, via a questionnaire that it has posted. Responses to the questionnaire are due by 29 June 2007. Click to Download the Questionnaire (PDF 33k). The eight questions to which the Commission is seeking responses are set out below:

5 June 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 4 June 2007 (PDF 36k). The report reflects the recent publication of IFRIC 10 and IFRIC 11 in the Official Journal of the EU (see our news story of 4 June 2007. 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

5 June 2007: Entwurf eines vorgeschlagenen IFRS für KMU (SME ED in German)
The IASB has published the German translation of the Exposure Draft of a Proposed International Financial Reporting Standard for Small and Medium-sized Entities – Entwurf eines vorgeschlagenen IFRS für kleine und mittelgrosse Unternehmen (KMU). The German translation is now freely available to all from the 'Open to Comment' Pages of the IASB's Website. The comment period closes on 1 October 2007. Currently only the ED itself is available in German. Translations of the Implementation Guidance and Basis for Conclusions will be posted before the end of June. Spanish and French translations were previously published and can be downloaded from the 'Open to Comment' link.

5 June 2007: Understanding FEI's top 10 financial reporting issues for 2007
Financial Executives International (FEI) recently released a list of 10 prominent financial reporting issues that require special attention in 2007. To help financial executives and audit committees understand these issues, Deloitte & Touche LLP (United States) has prepared a special edition of Audit Committee Brief on FEI's Top 10 Financial Reporting Issues for 2007 (PDF 264k). The summary also sets forth additional resources relevant to each topic.

5 June 2007: IFAC survey on the financial reporting 'supply chain'
The International Federation of Accountants (IFAC) has invited all participants in the financial reporting supply chain, including investors and other users of financial reports, standard setters, preparers, auditors, academics, and regulators to complete a global survey designed to obtain information that could strengthen the financial reporting process. The survey, which may be completed through 6 July 2007, is part of an IFAC project designed to analyse the financial reporting supply chain and to develop recommendations to further improve the quality of financial reporting. Specifically, the survey seeks the views of those in the financial reporting supply chain on corporate governance, financial reporting, and financial auditing and asks what actions they think will further improve the quality of the financial reporting process. The survey will be complemented with a number of in-depth one-on-one interviews. It can be accessed online at www.ifac.org/financialreportingsurvey/. Click for Press Release (PDF 81k).

4 June 2007: EU adopts IFRIC 10 and IFRIC 11 for use in Europe

The European Union has published two Commission Regulations in the Official Journal of the EU, thereby adopting IFRIC 10 and IFRIC 11 for use in Europe:

• Regulation (EC) No 610/2007 (PDF 45k) amending Regulation (EC) No 1725/2003 of 01 June 2007 adopting IFRIC 10 Interim Financial Reporting and Impairment.
• Regulation (EC) No 611/2007 (PDF 53k) amending Regulation (EC) No 1725/2003 of 01 June 2007 adopting IFRIC 11 IFRS 2 – Group and Treasury Share Transactions.

4 June 2007: Implications of the IASB Insurance Discussion Paper

Deloitte (United Kingdom) has published a Special Edition of the Insurance Market Update Newsletter (PDF 357k) on Phase II of the IASB's project to develop an IFRS for Insurance Contracts. The newsletter discusses the recent IASB Discussion Paper (DP) on Insurance Contracts. The newsletter expresses Deloitte's general support of the overall approach of valuing insurance liabilities on a market consistent basis. It notes, however, that the current exit value ('CEV') approach proposed in the DP raises many questions the industry will need to consider. It is important that market participants continue to provide input in the development of the principles into a standard across the life and non-life insurance industry. The newsletter identifies the key implications of the proposals in the DP. These are outlined below.

3 June 2007: Heads Up newsletter on SEC and PCAOB SOx 404 decisions
At its 23 May 2007 open meeting, the SEC approved guidance (proposed in December) for management of registrants to use in evaluating internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002. The next day, the PCAOB approved Auditing Standard No. 5 An Audit of Internal Control Over Financial Reporting That is Integrated with an Audit of Financial Statements. AS 5 is subject to SEC approval. We have posted the 31 May 2007 Edition of the Heads Up Newsletter (PDF 81k). It summarises the SEC's and PCAOB's decisions related to Section 404, as well as other recent SEC and PCAOB developments of interest.