29 December 2008: Heads Up on new SEC XBRL requirements

On 17 December 2008, the US Securities and Exchange Commission voted to issue two final rules that will require registrants (other than investment companies) and mutual funds to provide financial information and risk/return summary information, respectively, in an interactive data format in certain filings with the SEC. Such information will be made interactive through use of eXtensible Business Reporting Language (XBRL). The National Office Accounting Standards and Communications Group of Deloitte (United States) has published a Heads Up Explaining the New XBRL Requirements (PDF 114k). The table below summarises the phase-in of requirements for XBRL data. Phase-In Group Periods* Ending on or After Domestic and foreign registrants using US GAAP that have a worldwide public float of more than $5 billion 15 June 2009 All other domestic and foreign large accelerated filers using US GAAP 15 June 2010 All remaining registrants using US GAAP and foreign private issuers using IFRSs as issued by the IASB 15 June 2011 *Generally, an entity's first interactive data submission will be included as an exhibit to a quarterly report on Form 10-Q, or an annual report on Form 20-F or Form 40-F, as applicable.

27 December 2008: Deloitte Canada IFRS transition newsletter

Deloitte Canada has published the December 2008 issue of their Countdown IFRS transition newsletter, to provide a snapshot of where we are now as far as Canada's transition to IFRSs is concerned – both in Canada and in Deloitte. This edition of Countdown focuses on: A recap of 2008 IFRS transition news and events Deloitte IFRS publications and activities Countdown and IFRS Transition Survey An Update on Current IFRS events – including various important Exposure Drafts or Discussion Papers Click below for: December 2008 Edition Countdown Newsletter – English (PDF 820k) December 2008 Edition Countdown Newsletter – French (Compte à Rebours) (PDF 529k) Background on Transition to IFRSs in Canada including past issues of Countdown.

26 December 2008: Accounting Roundup – 2008 Year in Review

We have posted the 2008 Year in Review Special Edition of Accounting Roundup (PDF 911k) published by Deloitte & Touche LLP (USA). This 87-page newsletter summarises the final accounting, auditing, and regulatory guidance issued by the FASB, IASB, FASAB, GASB, EITF, SEC, PCAOB, AICPA, and CAQ throughout the year. The newsletter points out that we expect the FASB to issue two proposed FSPs in December that would address accounting for other-than-temporary impairments and disclosures for certain financial instruments that must be analysed for impairment. [Note: Both have now been issued for comment, with a deadline of 30 December 2008 on the former and of 15 January 2009 on the latter.] These proposals are being fast-tracked and FASB expects to finalise and make them effective for this year's reporting season. The FASB is also expected to issue an FSP shortly that will discuss whether an embedded credit derivative must be separated from its host contract. The contents of the 2008 Year in Review Accounting Roundup are organised topically as follows: Fair Value Impact of Current Market Environment on Financial Reporting Business Combinations Employee and Director Compensation and Benefits Financial Instruments and Derivatives Income Taxes Insurance Investment Companies Not-for-Profit Accounting Matters Other Accounting Other SEC Matters Other Auditing GASB/FASAB Convergence of US GAAP and IFRSs International Appendix A: SEC Disclosure Guidance - Recently Issued Standards Appendix B: Abbreviations Appendix C: Glossary of Standards Appendix D: Significant Adoption Dates Links to all issues of Accounting Roundup are Here.

25 December 2008: CAQ guidance on mortgage loan modifications

The AICPA's Center for Audit Quality (CAQ) issued a 20-page white paper titled Application of SFAS 114 to Modifications of Residential Mortgage Loans that Qualify as Troubled Debt Restructurings (PDF 98k). The white paper discusses the application of SFAS 114 Accounting by Creditors for Impairment of a Loan–an Amendment of FASB Statements No 5 and 15 to modifications of residential mortgage loans that qualify as troubled debt restructurings. The paper is nonauthoritative and does not establish new GAAP. Rather, articulates certain existing requirements of GAAP literature as well as common accounting practices related to the specific issues discussed, with the objective of helping preparers and auditors understand the application of existing GAAP to residential mortgage loans.

25 December 2008: 12 IASB pronouncements await EU endorsement

The European Financial Reporting Advisory Group (EFRAG) 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 23 December 2008 (PDF 89k). Currently, there are 12 IASB pronouncements are awaiting European Commission endorsement for use in Europe (including 3 awaiting EFRAG advice and 8 awaiting an ARC recommendation), as follows: Standards IFRS 1 First-time Adoption of IFRS – Restructured standard (2008) IFRS 3 Business Combinations (2008) Interpretations IFRIC 12 Service Concession Arrangements IFRIC 15 Agreements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in a Foreign Operation IFRIC 17 Distributions of Non-cash Assets to Owners Amendments IAS 27 Consolidated and Separate Financial Statements (2008) IAS 32 and IAS 1 Amendments for Puttable Instruments and Obligations Arising on Liquidation Improvements to IFRSs – 2007 (affects various standards) IFRS 1 and IAS 27 Cost of an Investment in a Subsidiary, Jointly-Controlled Entity, or Associate IAS 39 Amendments for Eligible Hedged Items IAS 39 Amendments for Reclassification of Financial Assets

24 December 2008: IASB proposes new debt investment disclosures

The IASB has proposed to amend IFRS 7 Financial Instruments: Disclosures to provide additional disclosures on all investments in debt instruments, other than those classified in the fair value through profit or loss category. The proposals would require an entity to state in tabular form the fair value, amortised cost, and amount at which the investments are actually carried in the financial statements. The amendments would also require an entity to also disclose the effect on profit or loss and equity if all debt instruments had been accounted for at fair value or at amortised cost. The IASB believes that the proposed disclosures will 'allow greater comparability between investments in debt instruments held with and by different entities, and so enhance investors' confidence in the financial markets'. The FASB is making similar disclosure proposals. The proposals are set out in an exposure draft Investments in Debt Instruments, on which comments are due by 15 January 2009. The exposure draft can be downloaded from the IASB's Website www.iasb.org. Click for Press Release (PDF 50k).

24 December 2008: IASB exposure draft on embedded derivatives

The IASB has proposed to amend IAS 39 Financial Instruments: Recognition and Measurement to clarify the accounting treatment for embedded derivatives. The proposals are set out in an exposure draft Embedded Derivatives, on which the IASB invites comments by 21 January 2009. The exposure draft can be downloaded from the IASB's Website www.iasb.org. The IASB is issuing this ED to prevent any diversity in practice developing as a result of the amendments made to IAS 39 in October 2008 to permit the reclassification of particular financial assets. The proposals published today would require all embedded derivatives to be assessed, including those embedded in reclassified instruments, and, if necessary, separately accounted for in financial statements. Click for Press Release (PDF 44k).

24 December 2008: IFRS e-Learning in Spanish

The many visitors to IAS Plus for whom Spanish is their first language may be interested to know that Deloitte is in process of translating our IFRS e-Learning into Spanish. Approximately 20 of the current 37 modules have been translated. These are under review and we are hopeful that they can be released in the first quarter of 2009. Translation of the remaining 17 modules has begun, but it's a bit premature for us to suggest a likely release date. Like the English language version, Deloitte's Spanish IFRS e-Learning will be made available to the public without charge.

22 December 2008: Mary Schapiro nominated to chair the US SEC

US President-elect Barack Obama will nominate Mary L Schapiro as the new chair of the US Securities and Exchange Commission. Ms Schapiro is currently the CEO of the Financial Industry Regulatory Authority (FINRA), the largest non-governmental regulator for all securities firms doing business with the US public. She previously served as an SEC Commissioner from 1988 to 1993. Mr Obama's announcement said the following about Mary Schapiro: Mary is known as a regulator who's both smart and tough – so much so that she's been criticized by the same industry insiders who we need to get tough on. For years, she's used her position to educate investors about market risks, warn seniors and employers about retirement scams, and call for increased regulation of mortgage brokers long before this housing crisis hit. I know that Mary will provide the new ideas, new reforms, and new spirit of accountability that the SEC desperately needs so that fraud like the Madoff scandal doesn't happen again. Click for: Mr Obama's Announcement (PDF 111k) Biography of Ms Schapiro from the FINRA Website (PDF 30k)

21 December 2008: IASB outlines recent responses to credit crisis

The IASB has issued a Press Release (PDF 57k) detailing the steps it has taken recently to address financial reporting issues arising from the global credit crisis, in response to Recommendations Made by the G20 Leaders last month. Those steps include: Improved accounting for off balance sheet items: Issued an ED on consolidation. Also, further proposals on off balance sheet items, covering the derecognition of assets and liabilities, are due to be published towards the end of the first quarter of 2009. New disclosure requirements related to impairment: The IASB and the US Financial Accounting Standards Board are both proposing changes to converge their disclosure requirements for impairments. FASB has already released its ED, and the IASB will do so next week Acceleration of efforts to address broader issues of impairment on a globally consistent basis: Joint study by the two boards' staff is under way, with a report due in January. Ensuring consistent treatment of accounting for particular credit-linked investments between US GAAP and IFRSs: FASB will issue mandatory guidance. Ensuring embedded derivatives are assessed and separated if financial assets are reclassified: IASB will publish a fast-track ED next week. Considering fully other issues related to financial instruments, including the fair value option, raised at the recent series of roundtables in London, New York, and Tokyo.

21 December 2008: Agenda project pages updated

We have updated the following agenda project pages to reflect the discussions and decisions at the December 2008 meeting of the International Accounting Standards Board: Annual Improvements 2009 Conceptual Framework Phase A – Objective and Qualitative Characteristics Consolidation Derecognition of Financial Instruments Fair Value Measurements Financial Instruments – Comprehensive Project Financial Instruments: Disclosures – Amendments to IFRS 7 Group Cash-settled Share-based Payment Arrangements – Amendment to IFRS 2 Liabilities – Amendments to IAS 37 IFRS for Private Entities (formerly IFRS for SMEs) Regulatory Assets and Liabilities Revenue Recognition

20 December 2008: Notes from day 5 of the IASB December meeting

The International Accounting Standards Board held its December 2008 meeting at its offices in London on Monday to Friday, 15-19 December 2008. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board added to its agenda a project on Rate-regulated Activities.

20 December 2008: Year-end Newsletter – Closing Out 2008

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Closing Out 2008 (PDF 163k). The newsletter provides a high level overview of new and revised Standards and Interpretations that are effective for December 2008 and later accounting periods. Where applicable, the newsletter includes hyperlinks to past Deloitte newsletters dealing with the specific Standard or Interpretation in more detail. Those past newsletters are all available on Here on IAS Plus. As always, entities should refer to the Standards and Interpretations themselves to identify all of the changes that may affect their particular circumstances. Mandatory for 2008 Of the long list of pronouncements recently issued, only three Interpretations are required to be adopted for December 2008 year ends: IFRIC 11 IFRS 2 – Group and Treasury Share Transactions IFRIC 12 Service Concession Arrangements IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Optional for 2008 Entities are generally permitted to adopt new and revised Standards and Interpretations in advance of their effective dates. Therefore, the following are available for early adoption in 2008 (refer to the newsletter for details): New Standard: IFRS 8 Operating Segments Amendments to Standards IAS 23 Borrowing Costs IAS 1 Presentation of Financial Statements IFRS 3 Business Combinations IAS 27 Consolidated and Separate Financial Statements IFRS 2 Vesting Conditions and Cancellations IAS 32 and IAS 1 Puttable Financial Instruments and Obligations Arising on Liquidation IFRS 1 and IAS 27 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate Improvements to IFRSs (various standards) IAS 39 Eligible Hedged Items 1 July 2009 July 2008 IAS 39 and IFRS 7 Reclassification of Financial Assets IFRS 1 First-time Adoption of Financial Reporting Standards (restructured) New interpretations IFRIC 13 Customer Loyalty Programmes IFRIC 15 Agreements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in a Foreign Operation IFRIC 17 Distributions of Non-cash Assets to Owners

20 December 2008: Joint IASB-FASB discussion paper on revenue recognition

The International Accounting Standards Board and the US Financial Accounting Standards Board have published for public comment a discussion paper (DP) on recognition of revenue. The DP proposes a single, contract-based revenue recognition model. The model would apply broadly to contracts with customers, although contracts in the areas of financial instruments, insurance, and leasing may be excluded. Under the proposed model, revenue would be recognised on the basis of increases in an entity's net position in a contract with a customer. With regard to recognition of revenue, the DP states: In the proposed model, revenue is recognised when a contract asset increases or a contract liability decreases (or some combination of the two). That occurs when an entity performs by satisfying an obligation in the contract. With regard to measurement of revenue, the DP states: The boards propose that performance obligations initially should be measured at the transaction price – the customer's promised consideration. If a contract comprises more than one performance obligation, an entity would allocate the transaction price to the performance obligations on the basis of the relative stand-alone selling prices of the goods and services underlying those performance obligations. Subsequent measurement of the performance obligations should depict the decrease in the entity's obligation to transfer goods and services to the customer. When a performance obligation is satisfied, the amount of revenue recognised is the amount of the transaction price that was allocated to the satisfied performance obligation at contract inception. Consequently, the total amount of revenue that an entity recognises over the life of the contract is equal to the transaction price. The DP may be downloaded from either the IASB's Website or FASB's Website. Respondents should submit one comment letter to either the IASB or the FASB. The boards will share and consider jointly all comment letters that are received by 19 June 2009. Click for Joint IASB-FASB Press Release (PDF 56k).

19 December 2008: Top challenges for financial executives in 2009

FEI CEO and President James J Abel has compiled a list of the Top Challenges for 2009 (PDF 54k). They are published in an article the January-February 2009 issue of Financial Executive magazine. We have posted the article, which is copyright by Financial Executives International, with FEI's kind permission. A summary is presented below. Five of the challenges relate to financial reporting (six if you count XBRL). FEI CEO's Top Challenges for Financial Executives for 2009 Implications of the economic crisis Fair value measurements Business taxation XBRL and other technology considerations Global convergence of US GAAP and IFRS New joint IASB-FASB standard on business combinations Financial statement presentation Complexity in financial reporting Controls and risk management Employee benefits issues Climate change legislation and regulation

19 December 2008: We comment on earnings per share proposals

Deloitte has submitted a Letter of Comment (PDF 168k) on the IASB's exposure draft (ED) of Proposed Amendments to IAS 33 Earnings per share. Below is an excerpt from our letter. All of our comment letters are Here. We believe the proposals in the ED are an improvement to existing standards, and we support the issuance of the proposed Statement as a final standard. However, we do have concerns related to some of the proposed changes to EPS which we believe need to be addressed. In particular: Although we support the proposal to make the EPS treatment consistent with the statement of financial position with respect to forward purchases and written puts over own equity we believe the EPS result highlights a wider flaw in the underlying treatment of these arrangements which we commented on in our responses to Reducing Complexity in Reporting Financial Instruments and Financial Instruments with the Characteristics of Equity. We support the proposed simplification in which EPS for instruments that are measured at FVTPL is not adjusted. However, we believe due consideration should be given to the disclosure needs of users as to whether the lack of disclosure of these instruments will prove problematic. We note that IFRS does not currently require separate disclosure of the fair value of these instruments, nor the fair value changes of such instruments. We recommend the inclusion of an explicit statement in the final standard that arrangements that result in the issue or acquisition of shares at fair value should not result in any dilutive effect. The current drafting of the ED infers that such arrangements, for example, issuing shares to the value of a fixed amount, are potentially dilutive.

19 December 2008: SEC mandates XBRL for all registrants and mutual funds

The Securities and Exchange Commission has voted to require public companies and mutual funds to use interactive data for financial information in XBRL format. The interactive data will be provided in a new exhibit containing their financial statements and any applicable financial statement schedules in interactive data format: Public Companies: Interactive data financial reporting will be required on a phased-in schedule beginning next year so that all US public companies will be filing XBRL data by December 2011. Companies will be able to adopt interactive data earlier than their required start date: The largest companies who file using US GAAP with a public float above $5 billion (approximately 500 companies): First quarterly report for fiscal periods ending on or after 15 June 2009 Remaining companies who file using US GAAP: Phased-in schedule over 2010 to 2011 Companies reporting in IFRS issued by the International Accounting Standards Board: Fiscal years ending on or after 15 June 2011 Mutual Funds: Interactive data financial reporting will be required starting in 2011. Click for SEC Press Release (PDF 37k).

19 December 2008: Notes from day 4 of the IASB December meeting

The International Accounting Standards Board is holding its December 2008 meeting at its offices in London on Monday to Friday, 15-19 December 2008. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board added to its agenda a project on Rate-regulated Activities.

19 December 2008: Heads Up on recent AICPA SEC-PCAOB conference

In our News Story of 11 Dec 2008 we reported on some of the speeches at the 2008 AICPA National Conference on Current SEC and PCAOB Developments. The National Office Accounting Standards and Communications Group of Deloitte (United States) has published a 53-page newsletter Heads Up on AICPA SEC-PCAOB Conference (PDF 345k). This issue of Heads Up extracts key insights from nearly 26 hours of material at the 2008 Conference. It focuses on experts' views on topics including accounting and disclosure issues related to the troubled credit markets, use of fair value, goodwill impairments, and the release of the Division of Corporation Finance Financial Reporting Manual on the SEC's website (see also our News Story of 14 Dec 2008).

19 December 2008: IASB ED on consolidation

The IASB has issued an exposure draft (ED) of proposed amendments to IAS 27 Consolidated and Separate Financial Statements. The objective is to strengthen and improve the requirements for identifying which entities a company controls and, therefore, must include in its consolidated financial statements. The proposals form part of the IASB's comprehensive review of off balance sheet activities and address an area cited in a Declaration of the G20 Leaders at their 15 November meeting. The proposals also respond to the recommendations contained in a Report by the Financial Stability Forum published in April 2008. Further proposals on off balance sheet items, covering the derecognition of assets and liabilities, are due to be published in the first quarter of 2009, consistent with the G20 target date of 31 March 2009. The new standard would replace IAS 27 Consolidated and Separate Financial Statements and Interpretation SIC-12 Consolidation - Special Purpose Entities. The proposal ED 10 Consolidated Financial Statements, may be downloaded without charge from the IASB's Website. The comment letter deadline is 20 March 2009. The proposed effective date is 1 July 2009. Click for Press Release (PDF 48k). Proposed Definition of Control of an Entity The consolidation ED proposes a new, principle-based, definition of control of an entity that would apply to a wide range of situations and be more difficult to evade by special structuring. The proposals also include enhanced disclosure requirements that would enable an investor to assess the extent to which a reporting entity has been involved in setting up special structures and the risks to which these special structures expose the entity. The proposed definition: A reporting entity controls another entity when the reporting entity has the power to direct the activities of that other entity to generate returns for the reporting entity. Under IAS 27, the definition is 'power to govern the financial and operating policies'. 'Power to direct the activities' is broader than 'power to govern the financial and operating policies' and, therefore, would broaden the scope of consolidation. The ED also clarifies that a reporting entity can have power even if it has not exercised its voting rights or options to acquire voting rights, or is not actively directing the activities of another entity. The ED proposes guidance on how to assess power and returns when: a reporting entity has less than a majority of the voting rights assessing control of a structured entity (called special purpose entity in SIC 12)

19 December 2008: Newsletter on proposed related party amendments

Deloitte's IFRS Global Office has published an IAS Plus Update newsletter – Revised Exposure Draft (ED) on Disclosure of Relationships with the State (PDF 124k). The newsletter explains the Changes to IAS 24 Related Party Disclosures that the IASB proposed in its ED of 11 December 2008. The objective of the ED is to simplify the disclosure requirements that apply to state-controlled entities under the existing IAS 24. The ED is a re-exposure of a proposal that the Board had published in 2007. Many respondents said that the exemptions proposed in 2007 were insufficient and that the revised Standard would have been too complex to apply in practice. As a result, the IASB has revised its proposals. Here are Links to All Past IAS Plus Newsletters.

18 December 2008: IAS 1 (2007) endorsed for use in Europe

The European Commission has endorsed, for use in Europe, IAS 1 Presentation of Financial Statements as revised in 2007. The revised standard was published in the Official Journal of 17 December 2008 (PDF 203k).

18 December 2008: Notes from day 3 of the IASB December meeting

The International Accounting Standards Board is holding its December 2008 meeting at its offices in London on Monday to Friday, 15-19 December 2008. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

17 December 2008: Four standards endorsed for use in Europe

The European Commission has endorsed four standards for use in Europe. The standards were published in the Official Journal on 17 December 2008, as follows: Revised IAS 23 Borrowing Costs – Official Journal: IAS 23 (PDF 63k) Amendments for Vesting Conditions and Cancellations to IFRS 2 Share-based Payment – Official Journal: IFRS 2 (PDF 47k) IFRIC 13 Customer Loyalty Programmes – Official Journal: IFRIC 13 (PDF 51k) IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction – Official Journal: IFRIC 14 (PDF 60k)

17 December 2008: Updated Newsletter on recent revisions to IFRS 1

On 8 December 2008 we posted a special edition of our IAS Plus Update Newsletter explaining the revised version of IFRS 1 on First-time Adoption of IFRSs that the IASB had published on 25 November 2008. At its meeting yesterday (see notes directly below), the Board decided to change the effective date of the revised version of IFRS 1 from 1 January 2009 to 1 July 2009, effective immediately. Therefore, we have posted an updated version of the IAS Plus Update Newsletter – Revisions to IFRS 1 on First-time Adoption of IFRSs to reflect the change in effective date of restructured IFRS 1 (PDF 113k).

17 December 2008: Notes from day 2 of the IASB December meeting

The International Accounting Standards Board is holding its December 2008 meeting at its offices in London on Monday to Friday, 15-19 December 2008. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board decided to change the effective date of the recent revisions of IFRS 1 from 1 January 2009 to 1 July 2009, effective immediately.

17 December 2008: We support enhanced IFRS 7 disclosures

Deloitte has submitted a Letter of Comment (PDF 93k) on the IASB's exposure draft (ED) of Proposed Amendments to IFRS 7. The ED, Improving Disclosures about Financial Instruments, would introduce a three level hierarchy when disclosing fair values (comparable to the US SFAS 157 hierarchy) and would expand disclosures about fair value measurements. The ED would also enhance disclosures about liquidity risks. Deloitte is supportive of these proposals. Here is an excerpt from our letter: We support the Board's efforts to enhance the disclosures about financial instruments and to converge the disclosure requirements with Statement of Financial Accounting Standards No. 157, Fair Value Measurements (Statement 157), issued by the U.S. Financial Accounting Standards Board (FASB). We believe the proposal to converge with the fair value hierarchy disclosures in Statement 157 is appropriate because it provides useful information to users of the financial statements. Specifically, we believe that the proposed amendment will result in more consistent fair value hierarchy disclosures among IFRS preparers and improve comparability with entities using Statement 157. We also support the Board's efforts to clarify the liquidity risk disclosure requirements.

17 December 2008: Unlisted companies in Lithuania may use IFRSs

The Law on Financial Statements of Entities of the Republic of Lithuania was amended on 26 June 2008 to permit unlisted companies to choose to prepare their financial statements using IFRSs. Alternatively, unlisted entities may use Business Accounting Standards (Lithuanian national standards). Once an entity has made its choice, it may not change for five years (unless the entity joins a group of entities). Our comprehensive table on use of IFRSs is Here.

17 December 2008: IFRS en Turismo, hospitalidad y ocio

Deloitte (Colombia) has published IFRS en Turismo, Hospitalidad y Ocio: Más que Sólo Contabilidad. This is the Spanish translation of IFRS in Tourism, Hospitality and Leisure: More Than Just Accounting published by Deloitte (United States). This report provides practical industry insights on IFRSs including implications of IFRSs, approaches to IFRS conversion, and planning for IFRS adoption. Click to download: IFRS en Turismo, Hospitalidad y Ocio: Más que Sólo Contabilidad (PDF 300k, Español) IFRS in Tourism, Hospitality and Leisure (PDF 535k, English)

17 December 2008: New FASB disclosures are effective immediately

Deloitte (United States) has published a Heads Up newsletter discussing the FASB's recently released FSP FAS 140-4 and FIN 46(R)-8, which accelerates the requirement for public companies to provide disclosures that are similar to those proposed in pending amendments to Statement 140 and Interpretation 46(R). This disclosure-only FSP improves the transparency of transfers of financial assets and an enterprise's involvement with variable interest entities, including qualifying special-purpose entities. Public companies are required to provide the new disclosures in their first reporting period (interim or annual) that ends after 15 December 2008. Click to Download the Heads Up Newsletter (PDF 166k).

16 December 2008: Notes from the financial crisis roundtable in Tokyo

In response to the challenges caused by the current market conditions the IASB and the FASB decided to hold a series of roundtables to gather views from constituents on the most urgent accounting issues and how to approach them. The first roundtable was held in London on 14 November 2008 (click for Deloitte Notes). The second was held at the FASB's office in Norwalk, CT USA, on 25 November 2008 (click for Deloitte Notes). Presented below are the preliminary and unofficial notes taken by Deloitte observers at the 3 December 2008 roundtable held in Tokyo. Our comprehensive credit crunch information is Here. Notes from the IASB-FASB Global Financial Crisis Roundtable ASBJ Offices, Tokyo – 3 December 2008 The IASB and FASB concluded their joint roundtables on financial reporting issues arising from the global financial crisis with two roundtables held in the offices of the Accounting Standards Board of Japan (ASBJ) on the afternoon of 3 December 2008. The objective of the roundtables was for the Boards to hear input from a wide range of stakeholders on accounting issues that may require urgent attention to help enhance investor confidence in financial markets. The Tokyo roundtable was divided into two 2-hour sessions. IASB Board Member John Smith chaired both sessions. As in other sessions it was noted that all next steps, in response to calls from constituents, will be considered jointly by IASB and FASB and following their due process. Therefore, no decisions were taken at these roundtable meetings. The chairman of the ASBJ, Mr Ikuo Nishikawa, welcomed participants and observers to both sessions, while at the second session Dr Takafumi Sato, Commissioner of the Japanese Financial Services Agency, made some introductory comments that included strong support for global high quality accounting standards and the harmonisation between the IASB/FASB. He did not support the recent calls to reduce standards, indicating an expectation that accounting standards would result in fair and accurate reporting of financial position by issuers and a prompt recognition of losses. He expressed a strong view that due process must be followed, and he concluded that standard setters were best placed to create solutions. These sentiments were echoed by many of the participants. Mr Smith indicted the objective of the roundtable was hear from participants about those issues that had arisen from the global financial crisis, to identify whether the issues were convergence issues, whether any 'fixes' were urgent or whether they could be dealt with as part of a longer term project. He noted that issues raised by participants in their written submissions were very similar to those raised at the roundtables in the US and UK, that he had received a clear message that due process must be followed and, accordingly, it was most unlikely any changes to IFRS would occur prior to 31 December 2008. Topic 1 – Impairment Issues Key discussion points around the triggers (what and when) and measurement of impairment included: The difficulty in identifying when 'significant or prolonged' had occurred, with some suggesting the test should be 'and' rather than 'or', that the temporary test in FASB should be introduced, and that entities should disclose their accounting policy for assessing significant and prolonged. Suggestions that the trigger for AFS debt instruments should be credit related, not just market, with credit related loss taken to P&L and remaining loss left in OCI. The difficulty in identifying trigger point for reversal of impairment losses generally , with suggestions that AFS equity reversal of impairments loss in P&L should be permitted with, perhaps, a trigger test similar to that required for impairment with some noting that the inability to reverse impairment losses caused reluctance to, or delay in, the recognition of impairment. IASB Chairman Sir David Tweedie floated the idea of removing the recycling option (treat all AFS securities as trading) as this would overcome many of the impairment difficulties with all movements being recorded in P&L. This proposal did not receive much support although an IOSCO .member noted that IOSCO members were divided on the issue There was no apparent appetite by participants for a quick fix in this area before 31 December 2008, with general agreement that any review should be comprehensive and longer term, although there was some support for a review of the impairment and measurement of AFS securities in the short term, with a shorter than normal due process. Topic 2 – FV Measurement Most participants felt the guidance issued by the expert advisory panel measuring fair value in an illiquid market was useful, with some suggesting a need for greater guidance around the use of discount rates. Others noted the difficulties auditors face in obtaining sufficient appropriate evidence to support valuations in illiquid or inactive markets. Some participants commented on user misunderstanding about what was meant by fair value, and suggested the IASB develop ways to educate users about FV and why FV is used for financial reporting. In terms of disclosure, some suggested a need for more guidance on what and when to disclose information, with mixed views on whether the IASB or industry groups were the best suited to produce illustrative disclosures. Some participants expressed concern with the ever increasing disclosure requirements which tends to reduce understandability of financial statements. Topic 3 – Other Issues CDOs. Not a great deal of support for anything to be done in relation to CDOs. Hedging. Strong support for a total review and rethink on hedging accounting requirements, with a desire for simplification of the rules. Agreed any review would need to be comprehensive, it needed to have high priority, and probably could not be done in the short term and may need to be incorporated into any review of classification (see below). Simplification of Classification. There was a fair degree of support for permitting redesignation out of the FV option, for example when there is a change in conditions for original designation. However, there was no agreement about the criteria to be applied to permit such reclassification. General agreement that this area need to be reviewed and was a long term project. Pro-cyclicality. Mr Smith noted that accounting standards should show information to the market, good or bad. The was general agreement with that view, however the IASB was encouraged to review their approach in relation to provisioning which is based on an as incurred model, while many regulators require the application of an expected loss model for prudential purposes. The IASB indicated that it would appreciate gaining a better understanding of the expected loss model, referred to by some as dynamic provisioning. Future Issues. Participants encouraged the IASB to give appropriate consideration to the following topics: hyper-inflation, foreign exchange translation, and definition of an active market. This summary is based on notes taken by observers at the Roundtable and should not be regarded as an official or final summary.

16 December 2008: EC deems some local GAAPs equivalent to IFRSs

The European Commission has adopted certain measures designating the GAAPs of the United States, Japan, China, Canada, South Korea, and India to be equivalent to International Financial Reporting Standards (IFRSs) as adopted by the EU. Because the decision on equivalence presumes that certain steps currently in process in some of these countries will be completed, the Commission intends to review the situation in China, Canada, South Korea, and India by 2011 at the latest. The Commission will also regularly monitor the ongoing status of equivalence and report to Member States and Parliament where necessary. As a result of the action taken by the Commission, non-EU companies listed on EU markets will continue to be able to file their financial statements prepared in accordance with their national GAAPs (the current provisions allowing the use of these GAAPs in the EU would otherwise have expired at the end of 2008). Click for EC Press Release (PDF 86k). We have extensive information about IFRSs in Europe Here.

16 December 2008: Notes from day 1 of the IASB December meeting

The International Accounting Standards Board is holding its December 2008 meeting at its offices in London on Monday to Friday, 15-19 December 2008. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Board agreed to propose a fast-track amendment to IFRIC 9 Reassessment of Embedded Derivatives to make clear that, on reclassification, an entity is required to assess whether an embedded derivative must be separately accounted for under IAS 39. The amendment will be effective for periods ending on or after 15 December 2008.

16 December 2008: IAASB approves eight redrafted auditing standards

The International Auditing and Assurance Standards Board (IAASB) has published seven clarified International Standards on Auditing (ISAs) and one clarified International Standard on Quality Control (ISQC), as follows: International Standard on Quality Control (ISQC) 1 (Redrafted) Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements ISA 220 (Redrafted) Quality Control for an Audit of Financial Statements ISA 500 (Redrafted) Audit Evidence ISA 501 (Redrafted) Audit Evidence-Specific Considerations for Selected Items ISA 505 (Revised and Redrafted) External Confirmations ISA 520 (Redrafted) Analytical Procedures ISA 620 (Redrafted) Using the Work of an Auditor's Expert ISA 710 (Redrafted) Comparative Information-Corresponding Figures and Comparative Financial Statements Click for Press Release (PDF 30k).

16 December 2008: Newsletter on IFRIC 17 in Spanish

Deloitte (Colombia) has published a translation of the following IAS Plus Update newsletter: Boletín IAS Plus – Diciembre 2008: IFRIC 17: Nueva Interpretación sobre distribuciones que no son en efectivo (PDF 514k). This is the Spanish translation of the IAS Plus Update Newsletter: New Interpretation on Non-cash Distributions (PDF 104k). This and other Spanish resources are on our Pagina de Recursos en Español.

15 December 2008: Two IAS Plus newsletters in Chinese

Deloitte (China) has published two special edition IAS Plus Newsletters in Chinese . Download links are below and on our China Page. The newsletters are translations of the English language versions, which can be found Here. IAS Plus Newsletter on IFRIC 17 (PDF 137k) IAS Plus Newsletter on IFRS 1 (PDF 144k) Our CAS Plus Website has more information in Chinese.

15 December 2008: IASC Foundation appoints a new Trustee

The IASC Foundation (IASCF) has appointed Scott Evans as a Trustee of the IASCF beginning 1 January 2009. Mr Evans is Executive Vice President, Asset Management and Chief Executive Officer of TIAA-CREF Investment Management LLC in the United States. He replaces David Shedlarz who is to retire as a Trustee at the end of his term. Click for: Press Release (PDF 61k) List of IASCF Trustees

15 December 2008: IFRS presentation and disclosure checklist 2008

We have posted the PDF version of Deloitte's IFRS Presentation and Disclosure Checklist for the Year Ended 31 December 2008 (PDF 1,176k). We had previously posted the Microsoft Word Version of the Checklist (ZIP of an MS Word file 502k). The checklist is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item. Permanent links to these publications are on our Model Financial Statements Page.

14 December 2008: SEC Financial Reporting Manual

The Division of Corporation Finance of the US Securities and Exchange Commission has released a new version of its Financial Reporting Manual. This 267-page manual is an informal reference document for SEC staff and provides general guidance only. The SEC has made it available on its public website. Topics covered in the Division of Corporation Finance Financial Reporting Manual include: Registrant's financial statements Other financial statements required Pro forma financial information Smaller reporting companies Foreign private issuers & foreign businesses Related party matters Non-GAAP measures of financial performance, liquidity and net worth Management's discussion and analysis of financial position and results of operations (MD&A) Reverse acquisitions and reverse recapitalizations Effects of subsequent events on financial statements required in filings Tender offers Employee stock benefit plans Multijurisdictional disclosure system On 2 April 2009 the SEC updated the manual. The links below have been changed to the new versions of Heads Up and the Manual. Click for: On-line Financial Reporting Manual on SEC Website PDF Version of Financial Reporting Manual (PDF 2.26mb)

13 December 2008: Proposal to change IFRS 1 effective date

The IASB has added to its December 2008 meeting agenda a project to change the effective date of the restructured version of IFRS 1 First-time Adoption of International Financial Reporting Standards that the Board released on 25 November 2008. This new version of IFRS 1 supersedes the previous version effective for annual periods beginning on or after 1 January 2009. Unfortunately, paragraphs 36, 37, and 39 of the new IFRS 1 make reference to IFRS 3 Business Combinations (revised 2008) and IAS 27 Consolidated and Separate Financial Statements (revised 2008), both of which are not effective until 1 July 2009. Therefore, technically the guidance on the topics covered in the three cited paragraphs is not valid from 1 January to 1 July 2009. To fix that problem, the IASB staff has proposed that the Board amend IFRS 1's effective date to 1 July 2009.

13 December 2008: Newsletter on revisions to IFRS 1 in Spanish

Deloitte (Colombia) has published a translation of the following IAS Plus Update newsletter: Boletín IAS Plus – Diciembre 2008: ASB actualiza estándar sobre la adopción por primera vez (PDF 367k). This is the Spanish translation of the IAS Plus Update Newsletter: Revisions to IFRS 1 on First-time Adoption of IFRSs (PDF 94k). This and other Spanish resources are on our Pagina de Recursos en Español.

12 December 2008: We encourage IASB to address regulatory assets

At its meeting in November 2008, the IFRIC considered a request to address whether regulated entities should recognise an asset or liability as a result of rate regulation by regulatory bodies or governments. The IFRIC tentatively Decided not to add the issue to its agenda, mainly because divergence in practice does not seem to be significant. That tentative decision was published for comment in the November 2008 IFRIC Update newsletter. Deloitte has submitted a Letter of Comment (PDF 122k) noting some instances where regulatory assets and liabilities have been recognised under IFRSs. The Deloitte letter also notes that in several jurisdictions that will soon be applying IFRSs (including US, Canada, and Brazil) their national GAAP has required (or permitted) the recognition of regulatory assets and liabilities. Our letter notes that some within these jurisdictions believe that recognising such assets and liabilities is supportable under the current IFRS Framework. Therefore, we ask the IFRIC to encourage the IASB to add this project to its agenda and publish guidance to ensure that IFRS are properly interpreted in a consistent manner across all jurisdictions. In preparing the guidance, we would suggest that the IASB perform a thorough analysis of the various regulatory regimes in across jurisdictions to ensure that the guidance appropriately captures the economic results of those regimes. The issue on the Agenda of the December 2008 IASB Meeting for a possible Board agenda decision.

12 December 2008: Recent changes in financial reporting in Singapore

Changes in Financial Reporting in Singapore, published by Deloitte & Touche (Singapore), is an annual update of the recent changes to Singapore's financial reporting framework. This 2008 edition includes a summary of the new and revised Singaporean FRSs (standards) and INT FRSs (interpretations) issued since the previous edition in November 2007 and up to end of October 2008. There is also an updated comparison against IFRSs and a summary of outstanding exposure drafts. Also this edition discusses several other matters including amendments to SGX listing manual, launch of Catalist rules, and an update on auditing standards. Click to Download the Booklet (PDF 300k, November 2008, 60 pages). Links to this and earlier editions may be found on our Singapore Page. Comparisons of national GAAP with IFRSs for other jurisdictions may be found Here.

11 December 2008: Reminder about upcoming comment deadline

We remind you that comments are due on 15 December 2008 on an exposure draft of proposed amendments to IFRS 7: Improving Disclosures about Financial Instruments, which was issued on 15 October 2008. The exposure draft proposes the following changes to IFRS 7: Fair value disclosures Introduction of a three level hierarchy when disclosing fair values (comparable to the US SFAS 157 hierarchy) Quoted prices in active markets for the same instrument (without modification or repackaging) Quoted prices in active markets for similar assets or liabilities or other valuation techniques for which all significant inputs* are based on observable market data Valuation techniques for which any significant input is not based on observable market data Reconciliations of balances for fair values measured without using observable market inputs Reconciliations of movements between the levels (including reasons) Liquidity risk disclosures Clarification of the scope of which instruments are to be included Disclosure of liquidity risk for derivative financial liabilities based on risk management of the entity Disclosure of expected remaining maturities of non-derivative financial liabilities if the entity manages risk in that way Enhanced relationship between quantitative and qualitative disclosures of liquidity risk

11 December 2008: IASB re-exposes proposed related party standard

The IASB has published a revised exposure draft (2008 ED) proposing to amend IAS 24 Related Party Disclosures with respect to 'relationships with the state'. The purpose of the revised ED is to simplify the disclosure requirements that apply to state-controlled entities under the existing IAS 24. Prior to a revision of IAS 24 in 2003, state-controlled entities were exempted from the related party disclosures. That exemption was removed in the 2003 revision, which took effect in 2005 and continues in force today. Therefore, currently, profit-oriented state-controlled entities that use IFRSs must disclose transactions with other state-controlled entities. In those jurisdictions, such as China, where state-controlled entities are a major segment of the economy, the volume of disclosures under the requirements of the current IAS 24 has become burdensome and unwieldy, impairing understandability and usefulness of the financial statements. In February 2007 the IASB published an exposure draft (2007 ED) of proposals to simplify the 2003 requirements by providing exemptions for transactions that met specified conditions. However, many respondents to the 2007 ED said that the proposed exemptions are insufficient and the revised standard would still be too complex. Under the 2008 ED issued today, the revised exemption would not require state-controlled entities to assess the extent of state influence. It would exempt such entities from providing full details about transactions with other state-controlled entities and the state. Instead, (unlike the 2007 ED) the 2008 ED would require general disclosures about the types and extent of significant transactions. The 2007 ED also proposed to amend the definition of a related party to clarify the intended meaning and remove inconsistencies. Respondents were largely in agreement with the revised definition of a related party. The IASB intends to finalise the definitions of a related party and of a related party transaction without further exposure (apart from one minor matter raised in the 2008 ED) and will issue them when it issues the amendments resulting from the 2008 ED. Comments are requested by 13 March 2009. Click for Press Release (PDF 47k). The ED is available on the IASB's Website.

11 December 2008: Final proposal to restructure EFRAG

Following public consultation, the European Financial Reporting Advisory Group (EFRAG) has published a plan to restructure itself with the goal of 'more influence for EFRAG in international standard-setting process'. The final plan is based on proposals published in July 2008 (see our News Story of 23 July). The proposals envision a new EFRAG structure as shown in the diagram below. The report states that, to increase its influence on the IASB, 'EFRAG needs to place more emphasis on developing its own research and discussion papers at an early stage of the IASB's consideration of the topics concerned or even before they figure on the IASB agenda'. Among the changes to the current structure being proposed are: A new nine-member Planning and Resource Committee (PRC) including four National Standard Setters (NSS), the EFRAG Technical Expert Group (TEG) Chair, and at least two Supervisory Board (SB) members. The PRC will set the agenda for proactive work, provide guidance on the allocation of resources to proactive projects, and monitor progress. The PRC will negotiate a Memorandum of Understanding with each of the NSS as a condition for membership. An informal Coordination Group, consisting of a wider range of NSS, will also be set up (not shown in the diagram below). The SB will have 17 members, including four with public policy experience (see next bullet) plus observers from the EC and CESR. Four members of the SB must be experienced in public policy, either at a national or European level. They will not represent particular organisations. New Governance and Nominating Committee (GNC) of the General Assembly (GA) in which some National Funding Mechanisms (NFM) have a seat. The GNC will have seven members – four appointed from among GA members and three from among the National Funding Mechanisms (NFM). The GA will continue to consist of representatives of the European organisations that are members of EFRAG. An informal Consultative Forum for NFM as a process to coordinate the NFM in the various countries (not shown in the diagram below). A new Consultation Group, replacing the current Advisory Forum. It will meet at least annually. A three-tier funding model: European organisations, NFMs and the European Commission. The report states that EFRAG has not been able to be proactive 'due to limited resources'. The current Technical Expert Group of nine to twelve voting members, plus three non-voting NSS chairs, will continue. TEG responsibilities will be: Provide input to the IASB and IFRIC Develop proactive discussion papers Monitor ongoing IASB activities and provide feedback to the IASB Issue endorsement advice to the EC on final pronouncements issued by the IASB Issue effect study reports The plan is described as a 'proposal'. It does not include a plan for or timing of transition. Click for: Enhancement Proposal (PDF 263k) Press Release (PDF 62k) Feedback Statement on July 2008 Proposals (PDF 53k)

11 December 2008: Speeches at AICPA's SEC/PCAOB conference

The American Institute of CPAs held its 36th Annual National Conference on Current SEC and PCAOB Developments in Washington on 8-10 December 2008, simulcast in five other cities. Speakers included a range of representatives from the SEC (including Chairman Christopher Cox, Chief Accountant Conrad Hewitt, and staff from the Office of Chief Accountant and Division of Corporation Finance), FASB (including Chairman Robert Herz), IASB (including Chairman Sir David Tweedie and Board Member James Leisenring), PCAOB, AICPA, and other groups. The conference is quite popular among SEC registrants and their auditors because the SEC and PCAOB representatives provide insights on important issues for calendar year-end reporting. Click here for Chairman Cox's Remarks (PDF 51k). Excerpts relating to IFRSs and the SEC's mark-to-market study are in the box below. The Remarks of FASB Chairman Herz (PDF 70k) focussed on Lessons Learned, Relearned, and Relearned Again from the Global Financial Crisis – Accounting and Beyond. Speeches by SEC staff can be viewed on the SEC's Website. These tend to give staff views on accounting topics of current interest at the Commission. Excerpts from Chairman Cox's Remarks at the AICPA SEC-PCAOB Conference Comments on IFRSs: In order for IFRS to fulfill the promise it holds to be a uniter of the world's capital markets and a powerful tool for investors everywhere, there are a handful of principles that are critical to its success. Every one of us here today needs to see to it that these principles are applied. First, the standards must be crafted in the interest of investors. That has to be their overarching purpose. The second principle for the success of IFRS is that the standard setting process must be transparent. That is essential not only to maintain investor confidence, but to ensure the integrity and quality of the standards. Third, the standard setter must be independent. It cannot be said often enough that effective standards require a dispassionate arbiter, both in this country and around the world. That means the standard-setter must be independent from special pleaders, from the political process, from favored industries or industry players, and from national or regional biases. The standard setter must also be accountable. Just as the FASB's process must make U.S. GAAP accountable to the needs of investors, issuers and the markets, so too must the IASB ensure that IFRS actually meet the needs of investors and other stakeholders, and that they are updated in a timely way. And finally, just as with U.S. GAAP, it is vitally important that all of the stakeholders themselves participate in the standard setting process in order to ensure the continued success of IFRS. Comments on the SEC's mark-to-market study: The work we have already done suggests that the accounting standard setters could improve upon the existing security impairment models. Investors have also clearly indicated a view that the current concept of mark-to-market accounting increases the transparency of financial information provided to investors — but that in inactive or illiquid markets, additional guidance would be useful to promote reasonable application of the standards. We expect to release the final results of the SEC study as mandated by Congress by January 2.

10 December 2008: IFRS compliance questionnaire for 2008

Deloitte's IFRS Global Office has published our IFRS Compliance Questionnaire for 2008. This questionnaire summarises the recognition and measurement requirements in IFRSs issued on or before 31 October 2008. It may be used to assist in considering compliance with those pronouncements. It is not a substitute for your understanding of such pronouncements and the exercise of your judgment. Users of the questionnaire are presumed to have a thorough understanding of the pronouncements and should refer to the text of the pronouncements, as necessary, in considering particular items in this questionnaire. The items in this questionnaire are referenced to the applicable sections of the IFRSs. The questionnaire is 329 pages long. Click to download 2008 IFRS Compliance Questionnaire (Word version) (ZIP of a Microsoft Word file 706k). There is a permanent link on our Model Financial Statements Page. This questionnaire includes all new and revised Standards and Interpretations issued through 31 October 2008. Some of those become mandatory only in 2009, but early adoption is permitted in annual periods beginning 1 January 2008. Entities that have not elected to early-adopt any of these Standards or Interpretations, and that choose to defer moving to the new terminology introduced by IAS 1(2007), may prefer to complete the 2007 Compliance Questionnaire, which includes all of the Standards and Interpretations mandatory for annual periods beginning on or after 1 January 2008. IFRICs 11, 12, and 14 that were not effective for annual periods beginning on or after 1 January 2007 were shown in shaded text in the 2007 questionnaire. However, these Interpretations are effective for annual periods beginning 1 January 2008 and the relevant sections in the questionnaire should be completed. We remind you, also, that IAS 8.30 requires disclosures regarding Standards and Interpretations issued but not yet effective at the date of issue of the financial statements.

10 December 2008: Survey of UK IFRS financial reports

Deloitte (United Kingdom) has published Right to the end – Surveying financial statements in annual reports. The publication looks at what UK listed companies are reporting in the financial sections of their annual reports published between 1 August 2007 and 31 July 2008. The publication is based on a survey of the financial statements of 130 listed companies, split into two categories – 30 investment trusts and 100 other companies. It includes a review of: how compliance with disclosure requirements and the accounting policy choices made under IFRSs varied; the level of variety in the presentation of primary statements; and which critical judgements and key estimations directors consider to be the most significant. The report includes detail of some current disclosure requirements and latest developments, as well as various 'good practice' examples. Click to download Right to the End - Surveying Financial Statements in Annual Reports (PDF 3.640mb). Here are a few findings of the study: 5% of the companies had a modified audit opinion 51% of the companies presented additional non-GAAP performance measures on the face of the income statement 14% of the companies did not identify any key sources of estimation uncertainty or areas of critical judgements in their financial statements 88% of the companies had share option schemes, and 61% had continuing exposure to defined benefit obligations

10 December 2008: McCreevy says IFRSs are 'commercially flawed'

In an address before the Association of European Journalists, Charlie McCreevy, the EU Commissioner for Internal Market and Services, identified ten critical lessons from the current global economic crisis. One of them, Mr McCreevy says, is that IFRSs are 'commercially and prudentially flawed'. Click for Commissioner McCreevy's Speech (PDF 69k). An excerpt: The relatively new International Accounting Standards – especially in terms of the rules on provisioning for bad debts and the valuation of assets – are commercially and prudentially flawed. They have had unintended and damaging consequences for banks operating in illiquid markets and for the markets themselves.

9 December 2008: iGAAP Financial Reporting Standards in India

Deloitte Touche Tohmatsu India Private Limited has compiled iGAAP Financial Reporting Standards in India including a Comparison with IFRS – a practical and comprehensive guide for companies based in India. It includes a comparison of each Indian Standard with the relevant standard under IFRS. This book is the ideal one-stop reference guide financial reporting in India in view of the planned convergence of Indian GAAP with IFRSs by 2011. The book includes illustrative examples to demonstrate how the standards work in practice and provides commentary for further support in areas where Indian GAAP is ambiguous, unclear, or does not provide any guidance. iGAAP Financial Reporting Standards in India (ISBN: 9788184731347) has been published by Wolters Kluwer (India) Private Ltd, New Delhi and may be ordered from the CCH India Website.

8 December 2008: IASCF seeks comments on Constitution review

The Trustees of the International Accounting Standards Committee Foundation (IASCF) have issued for comment a discussion document on the second part of the five-yearly review of the IASCF Constitution. The document addresses constitutional issues that were not covered in the first part of the review. Some of the issues on which the IASCF seeks comment are: whether the section of the constitution dealing with governance of the Foundation, which now mentions only the IASCF, should also refer to the new monitoring group proposed under part 1 of the Constitution Review geographical mix of Trustees effectiveness of Trustee oversight activities funding arrangements the IASB's agenda-setting procedures the IASB's existing due process procedures the possible need for 'fast track' due process procedures principles-based approach to standards whether the IASB should set standards for not-for-profit entities and the public sector procedures and composition of the Standards Advisory Council Comments are due by 31 March 2009. The Trustees expect then to continue their consultations in a series of round-table meetings to encourage further debate and comment from stakeholders around the world. The Trustees plan to conclude the second part of the review at their meeting in October 2009. The amendments to the Constitution would take effect on or after 1 January 2010. Click for: Press Release (PDF 47k). Download the Consultation Document (PDF 895k) from the IASB website.

8 December 2008: PCAOB report on audit firm inspections 2004-07

The Public Company Accounting Oversight Board today released a report summarising the inspection findings of the eight domestic accounting firms that were subject to annual inspections over the past four years. The PCAOB focuses its inspections on those areas of an audit likely to pose the most significant challenges for an auditor or to pose the most significant risk to investors of misstated financial statements. These include areas that are fundamental to any audit, such as testing of revenue, as well as areas that pose increasingly challenging issues in current market conditions, such as testing of fair value measurements. Click to download Report on the PCAOB's 2004, 2005, 2006, and 2007 Inspections of Domestic Annually Inspected Firms (PDF 107k). Here is an overview of the findings: Inspectors continue to find deficiencies in important audit areas, both established and emerging. These areas include critical and high-risk parts of audits, such as revenue, fair value, management's estimates, and the determination of materiality and audit scope. These deficiencies occurred in audits of issuers of all sizes, including in some of the larger audits they reviewed. In some cases, the deficiencies appeared to have been caused, at least in part, by the failure to apply an appropriate level of professional skepticism when conducting audit procedures and evaluating audit results. In addition, even in areas where inspectors have observed general improvement, deficiencies continue to arise. The inspectors will continue to focus on the significant areas where they have encountered deficiencies. In certain well-established audit areas, such as the confirmation of accounts receivable and the auditing of income tax accounts, the incidence of deficiencies encountered has declined. In certain other areas, such as the performance of analytical procedures, the nature of the deficiencies identified by inspectors has generally narrowed during the four-year period, with fewer of them relating to the overall failure to apply the governing standard and more relating to only one or a few aspects of the standard. In addition, inspectors have, in recent years, reviewed some audits of issuers whose audits had been reviewed in prior years in order to evaluate whether performance in the areas commented upon in prior years had improved. In the majority of these specific audits, inspectors observed improvement in the auditing of those areas. In response to the identification, during the inspection process, of quality control deficiencies, firms have changed their audit methodologies, processes, or related quality control systems

8 December 2008: Newsletter on recent revisions to IFRS 1

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Update Newsletter Revisions to IFRS 1 on First-time Adoption of IFRSs (PDF 91k). Frequent amendments to IFRS 1 since its original release in 2003 had made the standard more complex and less clear. The new version of IFRS 1 just issued retains the substance of the previous version, but within a changed structure. It replaces the previous version and is effective for entities applying IFRSs for the first time for annual periods beginning on or after 1 January 2009. Earlier application is permitted. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

8 December 2008: IFRS presentation and disclosure checklist for 2008
We have posted Deloitte's IFRS Presentation and Disclosure Checklist for 2008 (Word version) (ZIP of a Microsoft Word file 502k). The checklist is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item. This is a Microsoft Word File Zipped.

8 December 2008: UK Parliament Q&A with IASB chairman

IASB Chairman Sir David Tweedie and others gave evidence at a hearing on the banking crisis conducted by the Treasury Committee of the United Kingdom Parliament on Tuesday 11 November 2008. The Committee has released the Uncorrected Testimony (PDF 229k) of that portion of the hearing. Evidence presented by Sir David begins at Question 185. Presented below is Sir David's response to a question about whether the IASB inappropriately caved in to political pressure to amend IAS 39 for Reclassifications of Financial Assets to allow companies to stop measuring some financial assets at fair value. Q186 Chairman: Sir David, 'spineless' and 'caved in'. Answer? Sir David Tweedie: I think we experienced something that, I hope, firstly, we never see again in standards setting, but I think there was just a blunt threat to blow the organisation away. That came very, very rapidly. We heard a speech by the Commissioner saying that he had legislation prepared to have a 'carve out' from part of our standards. They cannot put words in at the moment (though I suspect that might be thought about); they can only remove words, and what that would mean was they would be able to transfer out of things like the trading account into some other account – held for maturity, or whatever else – without any controls whatsoever. So companies could have taken items out of that, not at fair value, as we require, but they could have taken them out at original transaction price, for example. There were no disclosures; you would never know what had happened, and suddenly we would see all these losses flowing back in, if they did not think they had been impaired on a permanent basis. I think accounting in Europe would have been totally out of control if they had used the option to take the 'carve out'. Our problem was we originally intended to have at least a week to find out whether, in fact, we had managed to get our standards equivalent, as far as reclassification is concerned, with the United States. We did not have a week; we had only a matter of days. What we did is we contacted the American standards sector, the Securities and Exchange Commission in America, and the major accounting firms, and say: 'We think we have done it here. Is that right?' However, when we put it through – we put it through on the Monday and, if I remember rightly, the European Commission voted on the Tuesday or Wednesday – we had no time whatsoever for consultation. We explained at that meeting: 'If we find we have made a mistake, we are going to come back again'. In a way, we have got a mistake on the transition. That is what happens when you do not consult.

8 December 2008: US Financial Reporting Alert in Spanish

Deloitte (Colombia) has published: Alerta de Información Financiera (Octubre 2008) – Consideraciones de contabilidad relacionadas con las restricciones a la redención en los fondos del mercado del dinero (PDF 26k). This is the Spanish version of the Deloitte USA Financial Reporting Alert 08-17 (October 2008) – Accounting Considerations Related to Redemption Restrictions on Money Market Funds (PDF 47k). Our Spanish resources are on our Pagina de Recursos en Español.

7 December 2008: IFRIC meeting for January 2009 is cancelled

The IASB has announced that the meeting of the International Financial Reporting Interpretations Committee (IFRIC) scheduled for 8 and 9 January 2009 has been cancelled. Because of IFRIC's recent progress, there were not sufficient agenda items for the IFRIC to consider to warrant a meeting. Regarding items discussed at IFRIC's November 2008 meeting, the announcement said: A near-final draft based on Interpretation D24 Transfers of Assets from Customers (formerly 'Customer Contributions') will be posted for comment on the IASB's website by the end of the week commencing 8 December. Regarding IFRIC's project on the treatment of voluntary prepaid contributions under a minimum finding requirement in accordance with IFRIC 14, the staff will present the proposed amendment to the Board at its January meeting. The proposed amendment approved by the Board will also be discussed with the Pensions Working Group at its meeting in January.

6 December 2008: IFRSs gaining acceptance among US CPAs

The US accounting profession increasingly believes that international accounting standards will be implemented in the United States and is beginning to prepare for the change, according to a survey conducted by the American Institute of Certified Public Accountants. The survey shows a significant and positive shift in the number of firms and companies that are starting to prepare for eventual adoption of IFRSs. 55% of CPAs at firms and companies nationwide now say they are preparing in a variety of ways for adoption of IFRS, an increase of 14 percentage points from 41 percent who were preparing for change according to an AICPA survey in April 2008. 65% of CPAs say they have some knowledge of IFRS but need to learn more. The survey results are based on 1,495 AICPA-member respondents, who took an online survey between 22 September and 2 October 2008. The margin of error was less than plus-or-minus 3 percentage points. Click for: / Detailed Results (PDF 109k) AICPA Press Release (PDF 104k)

5 December 2008: FASB Codification will be US GAAP 1 July 2009

The US Financial Accounting Standards Board (FASB) is alerting constituents that, on 1 July 2009, the FASB Accounting Standards Codification is expected to officially become the single source of authoritative nongovernmental US GAAP, superseding existing FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force, and related literature. After that date, only one level of authoritative GAAP will exist. All other literature will be considered non-authoritative. Click for: FASB News Release (PDF 24k) FASB Codification Website (http://asc.fasb.org)

5 December 2008: Alert on credit crunch and pension measurements

Deloitte (United States) has published a Financial Reporting Alert (PDF 62k) that addresses the impact that the volatile financial markets and the broadening market decline may have had, and could have, on an entity's pension and other postretirement benefit calculations and disclosures. Considerations for this financial reporting season include: Balance sheet impact – asset valuation and funding status Discount rate, including: Issues relating to bond yield and bond selection when a company uses a hypothetical bond portfolio rather than a yield curve to support the discount rate to measure their postretirement benefit obligations Use of index rates in selecting a discount rate Expected long-term rate of return Measurement of 2009 pension cost – the effect that decreases in plan assets and changes in postretirement benefit obligations could have on the computation of the gain or loss amortisation component of fiscal 2009 pension cost Measurement date for plan assets and benefit obligations Disclosures The Alert also discusses future considerations after this financial reporting season.

5 December 2008: PCAOB defers some audits of non-US audit firms

The US Public Company Accounting Oversight Board (PCAOB) has adopted an amendment to an existing rule and has issued for public comment a separate proposed amendment to that rule. Both amendments relate to the timing of certain inspections of registered non-US audit firms. The PCAOB also invited public comment on possible courses of action to address circumstances in which the PCAOB might be unable to complete an inspection because of a firm's concern that doing so may violate the firm's local law. Click for PCAOB News Release (PDF 24k).

5 December 2008: AICPA IFRS webcast offered free 12 December 2008

The American Institute of CPAs has launched a new IFRS Quarterly Webcast series called Migrating to IFRS: A Conversion Review. The first program in the series is designed to be step one in a multi-step educational process to help practitioners and financial managers get up to speed in all aspects of IFRS implementation. This webcast will be provided free to participants who do not seek CPE credit. Details: When: Friday, 12 December 2008, 2 pm to 4:30 pm EST Registration: Click Here to Register Webcast title: IFRS 101: The Essentials Webcast content: background and history on the IFRS convergence efforts, the recent SEC Roadmap, summary of critical differences between IFRS and US GAAP, and how all of these changes will affect audit firms and companies Price: Free, but free registration of a CPA2Biz account is required

5 December 2008: Notes from the financial crisis roundtable in US

In response to the challenges caused by the current market conditions the IASB and the FASB have decided to hold a series of roundtables to gather views from constituents on the most urgent accounting issues and how to approach them. The first roundtable was held in London on 14 November 2008 (click for Deloitte Notes). The second was held at the FASB's office in Norwalk, CT USA, on 25 November 2008. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the 25 November roundtable. Our comprehensive credit crunch information is Here. Notes from the IASB-FASB Global Financial Crisis Roundtable FASB Offices, Norwalk, CT 25 November 2008 On 25 November 2008, the IASB and the FASB held a public roundtable at the FASB offices in Norwalk, CT on the subject of reporting issues arising from the global financial crisis. The objective of the roundtable was for the Boards to hear input from a wide range of stakeholders on accounting issues that may require urgent attention to help enhance investor confidence in financial markets. The main topics discussed were (1) impairment of financial assets, (2) fair value option, (3) fair value measurements, and (4) disclosures. The following are some of the highlights from the roundtable. Impairment of Financial Assets Much of the roundtable discussion focused on issues with the current impairment models related to debt securities. Several issues identified include: The purpose of 'impairment' in financial reporting is not well understood. There is no unified definition and there are multiple models depending on the type of financial asset. Triggering events are not well understood. Some believe that management intent should play a significant role in whether a triggering event has occurred. Others indicate that management intent changes and is subjective; as such, management intent should not be a factor when determining whether an asset is impaired. Once impairment is deemed appropriate, the use of multiple impairment models for recognition in the financial statements creates complexity and makes it difficult for users to understand the financial statements. For example, loans receivable are carried at amortised cost less impairment for credit loss, but securitised loans, which may have the same economic characteristics as loans receivable, are written down to fair value. Roundtable participants shared several views on how some of these issues could be address. Some Users of the financial statements were proponents of full fair value with changes in fair value reflected in the income statement. They indicated that this would take away issues related to triggering events and multiple impairment models. Others (some preparers and auditors) suggested a model that was proposed by the AICPA Center for Audit Quality (CAQ) in their Comment Letter to the SEC on Fair Value (PDF 119k). Under that model the debt security would be carried at fair value on the balance sheet with credit losses recognised currently in income and other changes in the fair value recognised in other comprehensive income. The credit loss would be calculated on the basis of changes in expected cash flows in a manner similar to the Statement 114 model. Under that proposal other comprehensive income would be displayed on the income statement so the components of change in fair value are in the same statement. These proponents indicated that it would give users of the financial statement information regarding expected cash flows of the debt security as well as other changes in fair value. These two suggestions sparked debate about what is appropriate to be recorded in earnings. While the debate was interesting, it did not solve the issue of what is causing the lack of confidence in financial institutions. Some indicated that the lack of confidence was of result of investors not trusting what companies have reported in their balance sheet. They indicated the real issue is lack of transparency necessary for investors to make investment decisions. Several analysts suggested that additional disclosure of what the entity is holding and how management estimated the fair value are necessary. One suggestion was a table, by class of investment, which would include: cost, current fair value, implied value or other measure that the company feels is appropriate, a description of how fair value is calculated including significant inputs, a description of how implied value was calculated, and why the company believes the other measurement is appropriate. Members of the both Boards indicated that it would probably be easier to get a short term project completed that deals with disclosure than one that tries to address the multiple issues related to impairment. Fair Value Option Participants were asked whether they believed that the fair value option should continue to be irrevocable. Most agreed that the option should be irrevocable. They indicated that they liken it to an anti-abuse provision which keeps people from applying it to an instrument when it is beneficial and reversing the application when fair value is detrimental. Some indicated that the reason the option was initially elected may no longer be valid as a result of changes in the business. For example, if the option was selected to alleviate an accounting mismatch that no longer exists, then some believe the election should be revocable. Fair Value Measurements Several participants indicated that the measurement guidance in the whitepaper issued by IASB's Expert Panel was very useful and that it would be good for the Boards to codify the information into authoritative guidance. One participant asked for guidance on measuring alternative investments, such as investments in closed end hedge funds. The participant indicated that the FASB staff and FASB's Valuation Resource Group had previously discussed the difficulties in measuring these investments and whether net asset value was the appropriate measurement under Statement 157. Others indicated any short term guidance should solely focus on helping the capital markets recover and transparency. Disclosures Several participants commented on the disclosure suggestion noted above. They indicated that disclosure would be a good start but they would also like to see forward looking information, sensitivity to changes in inputs, and uncertainties in the estimate. Others stated that the level 3 rollforward provides a significant amount of good information, and they would like to see that information for all levels within the hierarchy. This summary is based on notes taken by observers at the Roundtable and should not be regarded as an official or final summary.

5 December 2008: Two IAS Plus Newsletters in Spanish

Deloitte (Colombia) has published: IAS Plus Octubre 2008 – Enmiendas a IAS 39 & IFRS 7 – reclasificación de activos financieros (actualizada) (PDF 25k). This is the Spanish version of the October 2008 IAS Plus Newsletter Amendments to IAS 39 & IFRS 7 – reclassification of financial assets (updated) (PDF 193k). IAS Plus Octubre 2008 – Propuestas para mejorar las revelaciones sobre instrumentos financieros (PDF 30k). This is the Spanish version of the October 2008 IAS Plus Newsletter Proposals to improve disclosures about financial instruments (PDF 202k).

5 December 2008: Agenda for December 2008 IASB meeting

The International Accounting Standards Board will hold its December 2008 meeting at the IASB's offices, 30 Cannon Street, London on Monday to Friday 15-19 December 2008. The meeting is open to public observation and will be webcast. The tentative agenda is shown below. 15-19 December 2008, London Monday 15 December 2008 (afternoon only) IFRS for Private Entities (formerly IFRS for SMEs) – Recognition, Measurement, and Presentation Financial Instruments: Comprehensive Project – Discussion of views expressed at roundtables Tuesday 16 December 2008 Liabilities: Amendments to IAS 37 Conceptual Framework Phase A – Objective and Qualitative Characteristics Derecognition of Financial Assets Wednesday 17 December 2008 (afternoon only) Fair Value Measurement Derecognition of Financial Assets (continuation from Tuesday) Thursday 18 December 2008 Annual Improvements 2009 Issues for potential inclusion in the August 2009 Exposure Draft: IAS 18 Revenue – Clarification of inconsistent guidance IAS 40 Investment Property – Change from revaluation method to cost method Carryover issues and proposed amendments to 2007 Exposure Draft: IAS 39 Financial Instruments: Recognition and Measurement – Treating loan prepayment penalties as closely related embedded derivatives IAS 1 Presentation of Financial Statements – Current/non-current classification of convertible instruments IAS 17 Leases – Classification of leases of land and buildings Amendment item: IFRS 3 – Whether to remove the distinction between how 'contractual' and 'non-contractual' customer-related intangible assets are recognised in a business combination Proposed Agenda Item: Rate-regulated Activities IFRS 2 Share-based Payment – Group Cash-settled Share-based Payment Transactions Fair Value Measurement (continuation from Wednesday) Financial Instruments – Comprehensive Project (continuation from Monday) IFRS 7 Issues Friday 19 December 2008 (morning only) Fair Value Measurement – Measurement of Liabilities Sweep issues from this meeting, if any

4 December 2008: Consolidated text of EU-IFRSs is now available

In our 6 November 2008, we reported that the European Commission adopted the consolidated text of all IFRSs in force in the European Union (EU), bringing together all IFRS endorsed from 29 September 2003 to 15 October 2008. Our story had said that the EC's new consolidated text 'will be available in all official EU languages'. The various language consolidated texts have now been published in the EU Official Journal and posted: EC Web Page with Links to Consolidated Text in 23 Languages Consolidated Text in English (PDF 1,966k) Note that the consolidated text as adopted by the EC does not include the implementation guidance and bases for conclusions that the IASB issues with its Standards.

4 December 2008: Newsletter and Alert in Spanish

Deloitte (Colombia) has published translations of the following two English language publications: Financial Reporting Alert 08-16: La SEC emite carta que aclara la orientación sobre los deterioros que son otros-que-temporales para las acciones preferenciales perpetuas (SEC Issues Letter Clarifying Other-Than-Temporary Impairment Guidance for Perpetual Preferred Securities) (PDF 35k) IAS Plus Newsletter – Special Edition, November 2008: Presentación de estados financieros (Presentation of Financial Statements) (PDF 36k) This and other Spanish resources are on our Pagina de Recursos en Español.

3 December 2008: Paul Cherry is named as new SAC chair

The Trustees of the International Accounting Standards Committee Foundation (IASCF) have appointed Paul Cherry as Chairman of the Standards Advisory Council (SAC) for three years beginning on 1 January 2009. Mr Cherry is the Chairman of the Canadian Accounting Standards Board, from which he will step down at the end of March 2009. Previously, he chaired the Standing Interpretations Committee – the predecessor of IFRIC under the former IASC. He succeeds Professor Nelson Carvalho, whose term as SAC chair expires at the end of this year. The IASCF Trustees are in the final stages of selecting two vice-chairs and the full membership of the SAC, and expect to announce their appointments in the coming weeks. Click for Press Release (PDF 45k).

3 December 2008: Broad support among CFOs for global standards

The International Standards Project (a joint research project of Duke University, USA, and Oxford University, UK) has published Research Report Assessing the IASB, a survey of the views of 749 financial executives about IFRSs and the IASB. Principal researchers are Professors Tim Buthe (Duke) and Walter Mattli (Oxford). The survey participants were mostly CFOs and chief accounting officers of companies listed on the major stock exchanges of the United States (NYSE), Germany (Frankfurt), France (Paris-Euronext), and the United Kingdom (London). Among the topics studied are: costs-benefit assessment of IFRS general desirability of the shift from domestic to international financial reporting standards current strengths and weaknesses of IASB standard-setting emerging issues, including the desirability of 'fair value' or 'mark-to-market' accounting rules. Click to Download the Report from the Project Website (PDF 963k). The report is copyright by Buthe and Mattli. You can also Download It from IAS Plus, where it is posted with their kind permission. Assessing the IASB: Key Survey Findings Financial executives overwhelmingly expect financial reporting standards to be increasingly set at the international level, and a clear majority of participants approves of this trend. More than 1 in 3 nonetheless questions whether truly global accounting rules and practices are achievable given the differences in legal environments and business cultures across countries. Large majorities of both US and European corporate finance executives see the IASB as moving toward full fair value accounting, but only few approve of this trend. Americans assess key aspects of IASB standard-setting much more favourably than Europeans, including IASB due process, transparency, accessibility, inclusiveness, and accountability. Clear majorities of both US and European financial executives believe that the quality and effectiveness of the IASB's International Financial Reporting Standards (IFRS) is high. At the same time, many also consider the complexity and cost of implementation of IFRS to be high or very high, and almost 60 percent respondents believe that the costs of switching to IFRS so far outweigh the benefits. Listed companies that expect to be affected by a forthcoming IASB standard but nonetheless fail to communicate their views to the IASB often explain their inaction by saying they do not believe their comments would lead to any changes in the provisions of the draft standard. US firms that do get involved in IASB standard-setting assess important methods or channels of involvement quite differently from their European counterparts. For example, 93 percent of American financial executives consider submitting comment letters effective; only 51 percent of Europeans consider them effective. Similarly diverging assessments apply to field tests and oral testimony at public hearings. Overwhelming majorities say early involvement in the standard-setting process is key.

2 December 2008: Accounting Roundup – November 2008

We have posted the November 2008 Edition of Accounting Roundup (PDF 264k, 27 pages) published by Deloitte & Touche LLP (USA). Topics covered in this issue include: FASB Developments FASB Proposes FSP to Delay Effective Date for Interpretation 48 (Uncertain Tax Positions) for Private Entities EITF Developments EITF Issue No. 08-1 Revenue Arrangements With Multiple Deliverables EITF Issue No. 08-9 Milestone Method of Revenue Recognition EITF Issue No. 08-6 Equity Method Investment Accounting Considerations EITF Issue No. 08-7 Accounting for Defensive Intangible Assets EITF Issue No. 08-8 Accounting for an Instrument (or an Embedded Feature) With a Settlement Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary EITF Issue No. 08-10 Selected Statement 160 Implementation Questions AICPA Developments AICPA Issues Revised Interpretation on the Confirmation Process AICPA Issues Exposure Draft on Revision of SSARS Applicability to Reviews AICPA Issues Two Proposed Statements Related to an Entity's Use of Service Organizations SEC Developments SEC Issues Final Rule on Mandatory Electronic Submission of Certain Investment Company Applications and Filings SEC Issues Proposed IFRS Roadmap FASAB Developments FASAB Proposes Amendments to Guidance on Property, Plant, and Equipment FASAB Issues Exposure Draft on Social Insurance Programs FASAB Issues Draft Implementation Guidance on Accounting for Fiduciary Activities International Developments IASB Issues Fair Value Guidance Other Developments GAO Issues Interim Guidance on Communicating Internal-Control-Related Matters You will find past issues of Accounting Roundup Here.

2 December 2008: Newsletter and Alert in Spanish

Deloitte (Colombia) has published: IAS Plus Octubre 2008 – Exenciones adicionales propuestas para quienes adoptan por primera vez (PDF 24k). This is the Spanish version of the October 2008 IAS Plus Newsletter Additional Exemptions Proposed for First-time Adopters (IFRS 1) (PDF 93k). Alerta de Información Financiera – El impacto de la ley de estabilización económica de emergencia sobre la valoración de deterioros que son otros-que-temporales (PDF 1,756k). This is the Spanish translation of US Financial Reporting Alert 08-15 The Impact of the Emergency Economic Stabilization Act on the Assessment of Other-Than-Temporary Impairments (PDF 27k).

2 December 2008: iGAAP 2009 – A guide to IFRS reporting

Deloitte's new iGAAP 2009 – A guide to IFRS reporting is the definitive guide for the global application of IFRS. This 2,700-page book provides essential and relevant guidance on a wide range of issues with analysis of key considerations for reporting entities, coupled with clear and unambiguous explanation of IFRS requirements. For further support, there is expert commentary, particularly where IFRSs are silent, ambiguous, or unclear. And the guide includes a wealth of illustrative examples to demonstrate how the standards work in practice. iGAAP 2009 – A guide to IFRS Reporting (2,529 pages plus index) can be purchased through Lexis-Nexis online at www.lexisnexis.co.uk/deloitte or call +44 (0) 845 370 1234. The price is £85, ISBN 9780754535836, Product Code DIGGI. There is more information in this Brochure (PDF 246k), which also has information about other Deloitte IFRS and UK GAAP publications available from Lexis-Nexis, including: iGAAP 2009 – IFRS reporting in the UK iGAAP 2009 – Financial statements for UK listed groups iGAAP 2008 – Financial instruments: IAS 32, IAS 39 and IFRS 7 explained ukGAAP 2009 – Financial reporting for UK unlisted entities ukGAAP 2009 – Financial statements for UK unlisted groups

2 December 2008: Newsletter on IFRIC 17 – non-cash distributions

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter IFRIC 17: New Interpretation on Non-cash Distributions (PDF 104k). The Interpretation was published on 27 November 2008 and is effective for annual periods beginning on or after 1 July 2009, with earlier application permitted. IFRIC 17 applies to pro rata distributions of non-cash assets except for common control transactions. You will find all Past IAS Plus Newsletters Here. You can sign up for Free Subscription by Email.

2 December 2008: Los IFRS en el sector inmobiliario

Deloitte (Colombia) has published: Los IFRS en el sector inmobiliario: Más que solo contabilidad y presentación de reportes (PDF 457k). This is the Spanish translation of: IFRS in Real Estate: More Than Just Accounting & Reporting (PDF 483k) previously posted on IAS Plus. Tabla de Contenidos Desafíos y oportunidades en el sector inmobiliario La hoja de ruta Dos enfoques para la conversión Más que contabilidad e información financiera Problemas técnicos de contabilidad para las compañías del sector inmobiliario Suavizando la transición Es tiempo para el liderazgo Recursos & Contactos Table of Contents Challenges and Opportunities in Real Estate The Roadmap Two Conversion Approaches More Than Accounting and Financial Reporting Technical Accounting Issues for Real Estate Companies Smoothing the Transition Time for Leadership Resources & Contacts

2 December 2008: Basel Committee proposes fair value guidance

The Basel Committee on Banking Supervision has invited comment on proposed Supervisory Guidance for Assessing Banks' Financial Instrument Fair Value Practices. The comment deadline is 6 February 2009. The guidance is intended to help supervisors assess the rigour of banks' valuation processes and to promote improvements in risk management and control practices. The guidance supports one of the key recommendations for enhancing transparency and valuation set out in the April 2008 Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience. The main principles in the proposed Basel Committee guidance are: strong valuation governance processes; use of reliable inputs and diverse information sources; independent verification and validation processes; communication of valuation uncertainty to internal and external stakeholders; consistency in valuation practices for risk management and reporting; and strong supervisory oversight around bank valuation practices. Click for: Proposed Financial Instrument Fair Value Guidance (PDF 63k) Press Release (PDF 155k) April 2008 FSF Report on Enhancing Market and Institutional Resilience (PDF 409k)

1 December 2008: Stay Tuned Online – IFRS and UK GAAP updates

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRS and other financial reporting issues. Each update lasts no more than an hour, and sessions are held three times a year, approximately at the end of March, July and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation. The topics covered in the November 2008 Stay Tuned Online IFRS and UK GAAP Update: Amendments to IAS 39 and IFRS 7: Reclassification of financial assets Improving disclosure of financial instruments IASB educational guidance Companies Act 2006 implementation update Current trends in annual reports Financial Reporting Review Panel update Latest developments in IFRSs To access the recording Click Here. (Please note that a small amount of audio is missing at the start of the penultimate session.) There's a permanent link on our UK Country Page.

1 December 2008: 17 IASB pronouncements await EU endorsement

The European Financial Reporting Advisory Group (EFRAG) 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 28 November 2008 (PDF 91k). Currently, there are 17 IASB pronouncements are awaiting European Commission endorsement for use in Europe (including 3 awaiting EFRAG advice and 8 awaiting an ARC recommendation), as follows: Standards IFRS 1 First-time Adoption of IFRS – Restructured standard (2008) IFRS 3 Business Combinations (2008) Interpretations 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 IFRIC 15 Agreements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in a Foreign Operation IFRIC 17 Distributions of Non-cash Assets to Owners Amendments IFRS 1 and IAS 27 Cost of an Investment in a Subsidiary, Jointly-Controlled Entity, or Associate IFRS 2 Share-based Payment: Vesting Conditions and Cancellations IAS 1 Presentation of Financial Statements (revised September 2007) IAS 23 Borrowing Costs (revised March 2007) IAS 27 Consolidated and Separate Financial Statements (2008) IAS 32 and IAS 1 Amendments for Puttable Instruments and Obligations Arising on Liquidation IAS 39 Amendments for Eligible Hedged Items IAS 39 Amendments for Reclassification of Financial Assets Improvements to IFRSs – 2007 (affects various standards)