30 December 2009: New and revised Standards for 2009

The following is a comprehensive list of new and revised IASB Standards and Interpretations that are effective for 31 December 2009 year ends and later periods. All of the newsletters referred to may be downloaded without charge on our Newsletter Page. See also the news story immediately below for our comprehensive year-end IAS Plus Update Newsletter – Closing Out 2009. New pronouncements effective for 31 December 2009 year ends New Standards Effective for annual periods beginning on or after IAS Plus newsletter issued IFRS 8 Operating segments 1 January 2009 December 2006 IFRS for SMEs IFRS for Small and Medium-sized Entities Available immediately July 2009 Amendments to Standards IFRS 1 and IAS 27 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate 1 January 2009 May 2008 IFRS 2 Vesting Conditions and Cancellations 1 January 2009 January 2008 IFRS 7 Enhancing disclosures about fair value and liquidity risk 1 January 2009 March 2009 IAS 1 Presentation of Financial Statements 1 January 2009 September 2007 IAS 23 Borrowing cost 1 January 2009 April 2007 IAS 32 and IAS 1 Puttable Financial Instruments and Obligations Arising on Liquidation 1 January 2009 February 2008 IAS 39 Clarification regarding assessment of embedded derivatives Annual periods ending on or after 30 June 2009 March 2009 IAS 39 and IFRS 7 Reclassification of financial assets 1 July 2008 October 2008 Various Improvements to IFRSs Various May 2008 New Interpretations IFRIC 13 Customer Loyalty Programmes 1 July 2008 June 2007 IFRIC 15 Agreements for the Construction of Real Estate 1 January 2009 July 2008 IFRIC 16 Hedges of a Net Investment in a Foreign Operation 1 October 2008 July 2008 IFRIC 18 Transfers of Assets from Customers Transfers made after 1 July 2009 February 2009

30 December 2008: Year-end Newsletter – Closing Out 2009

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Closing Out 2009 (PDF 159k). The newsletter provides a high level overview of new and revised Standards and Interpretations that are effective for December 2009 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.

28 December 2009: IAS 32 amendment endorsed for use in Europe

The European Commission has completed the process of endorsing, for use in Europe, the October 2009 amendment to IAS 32 Financial Instruments: Presentation – Classification of Rights Issues. The amendment provides that when an entity issues rights denominated in a currency other than the entity's functional currency, and those rights are issued pro rata to the entity's existing shareholders for a fixed amount of cash, they should be classified as equity even if their exercise price is denominated in a currency other than the issuer's functional currency. Click for the Commission Regulation (EC) No 1293/2009 (PDF 819k), the endorsement Regulation published in the Official Journal of the European Union on 24 December 2009.

27 December 2009: IASB posts editorial corrections

The IASB has posted Editorial Corrections to the following pronouncements: Bound Volume 2009 Embedded Derivatives (issued March 2009) Improvements to IFRSs (issued April 2009) Additional Exemptions for First-time Adopters (issued July 2009) Classification of Rights Issues (issued October 2009) IFRS 9 Financial Instruments (issued November 2009) IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (issued November 2009)

26 December 2009: Deadline reminder – ED on IFRS 1

We remind you that comments are due on 29 December 2009 on Exposure Draft (ED): Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (proposed amendment to IFRS 1). The ED was issued on 26 November 2009. The ED proposes to amend IFRS 1 First-time Adoption of IFRSs to state that an entity need not provide the comparative prior-period information required by the March 2009 amendments to IFRS 7 Improving Disclosures about Financial Instruments for first-time adopters adopting before 1 January 2010.

24 December 2009: Global IFRS and Offerings Services newsletter

We have posted Deloitte's US Reporting Newsletter for Non-US Based Companies August-November 2009 Edition – includes news through 15 November 2009 (PDF 317k). The newsletter is developed by Deloitte's Global IFRS and Offerings Services (GIOS) team – Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US GAAP and IFRSs and in complying with the SEC's financial reporting rules. The GIOS Newsletter is an update on relevant GAAP, regulatory, and other matters, webcasts, and publications, with hyperlinks to source material. Past GIOS Newsletters are Here. In this issue of the GIOS newsletter: IFRS Matters IASB Issues IFRS on Classification and Measurement of Financial Assets IASB Amends IAS 32 to Clarify Rights Issues IASB Proposes Changes as Part of Its Annual Improvements Project Trustees of IASC Foundation Publish Proposals on Enhanced Accountability and Stakeholder Outreach IASC Foundation Exposes IFRS for SMEs Taxonomy for Public Comment An Update on the FASB's and IASB's Joint Project on Accounting for Income Taxes IASB issues Amendments to IAS 24 IASB Proposes New Approach to Accounting for Credit Losses IFRS Tools US GAAP Matters FASB Issues ASUs on Revenue Arrangements FASB Issues ASU on Accounting for Own-Share Lending Arrangements FASB Issues Proposed ASU on Embedded Credit Derivative Scope Exception FASB Provides Guidance on Accounting for Uncertainty in Income Taxes FASB Issues Proposed ASU on Research and Development Assets Acquired in an Asset Acquisition FASB Issues Proposal Regarding Ownership Provisions in the Consolidation Subtopic FASB Issues Guidance on Measuring Fair Value of Certain Alternative Investments FASB Issues ASU Regarding Measuring Liabilities at Fair Value FASB issues a proposed ASU on the EITF consensus-for-exposure on Issue 09-B FASB Proposes ASU on Oil and Gas Reserve Estimation and Disclosures FASB Issues Technical Corrections and Other Changes to the Codification AICPA Oil and Gas Guide Working Draft FASB Votes to Defer Statement 167 for Interests in Certain Entities Proposed ASU, Improving Disclosures About Fair Value Measurements: FASB Decides to Defer Sensitivity Analysis and to Issue Other Proposed Disclosures Financial Reporting Considerations for Pension and Other Postretirement Benefits First Steps Revisited: Additional Tax Relief for Business and Homebuyers FASB Proposes to Amend Subsequent Events Date Disclosure Requirement SEC Releases Staff Accounting Bulletin No. 113 Guidance on Material Modifications to Revenue Arrangements With Multiple Deliverables EITF Reaches Consensus on Accounting for Stock Dividends EITF Reaches Consensus-for-Exposure Regarding Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset EITF Reaches Consensus-for-Exposure Regarding Impact of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Primarily Trades EITF Reaches Consensus-for-Exposure on Casino Base Jackpot Liabilities EITF Reaches Consensus-for-Exposure on the Definition of Deferred Acquisition Costs of Insurance Entities Other Matters AICPA's ASB Proposes Various Statements on Auditing Standards SEC Proposes Rule to Provide Temporary Filing Accommodation for Static Pool Information GAO Issues Report on Troubled Asset Relief Program SEC Chairman Issues Letter to Broker-Dealer CEOs on Compensation Arrangements SEC Sends Sample Letter to Public Companies About MD&A Disclosure Regarding Provisions and Allowances for Loan Losses PCAOB Issues Staff Guidance SEC's Division of Corporation Finance Issues Compliance and Disclosure Interpretations SEC Announces New Division of Risk, Strategy, and Financial Innovation SEC Investor Advisory Committee Forms Subcommittees SEC Further Defers Section 404(b) Requirement for Non-accelerated Filers SEC Staff Releases Observations From Review of Interactive Data Financial Statements SEC Issues Draft Strategic Plan for 2010-2015 SEC Proposes Amendments to Rules Requiring Internet Availability of Proxy Materials COSO Releases Paper on the Role of the Board of Directors in Enterprise Risk Management SEC Observations and Expectations About Executive Compensation Disclosures SEC's Division of Corporation Finance Issues Compliance and Disclosure Interpretations on Oil and Gas Rules SEC Staff Issues Bulletin on Shareholder Proposals SEC Issues Final Rule Adopting Updated EDGAR Filer Manual SEC Releases PCAOB Proposal on Auditing Standard 7 Reports Released by the Institute of Internal Auditors Audit Executive Center Sample Forms Published by the PCAOB

24 December 2009: Downloadable podcast summaries of IASB meetings

The IASB has launched a three-month trial of downloadable podcast summaries of monthly IASB board meetings. The idea is to provide those who want to keep up to date on the IASB's work with a high level summary of discussions during board week, and to signpost where major projects are in their development cycles. Whilst IASB Update remains the official summary of board meetings, these short podcasts permit the IASB to provide additional context on individual decisions taken by the board. These 30-minute podcasts can be downloaded in MP3 format (approximately 35mb) via the IASB Website or through iTunes (subscribe to the IASB financial reporting channel). The IASB plans to trial this service for three months and then decide whether to make it permanent.

23 December 2009: МСФО в кармане 2009 – IFRSs in your Pocket in Russian

Deloitte & Touche CIS (Russia) has published МСФО в кармане 2009 (PDF 1,037k, 152 pages) – a Russian translation of IFRSs in your Pocket 2009. This pocket guide includes summaries of all IFRSs issued through March 2009. Please click here for Information about Deloitte Russia. Also available on our Russia Page is Deloitte's June 2009 English language guide Doing Business in Russia 2009, which includes a discussion of the financial reporting framework in Russia.

23 December 2009: Top challenges for financial executives in 2010

FEI CEO and President Marie N Hollein has compiled a list of the Top Challenges for Financial Executives for 2010 (PDF 54k). They are published in the January-February 2010 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. Challenges 5 through 8 relate to financial reporting: FEI CEO's Top Challenges for Financial Executives in 2010 Economic Recovery and the US Health-Care Reform Employee Benefits Financial Regulatory Reform Global Convergence of US GAAP and IFRS Financial Instruments Financial Statement Presentation Revenue Recognition Business Taxation

23 December 2009: Accounting Roundup – 2009 Year in Review

We have posted the 2009 Year in Review Special Edition of Accounting Roundup (PDF 615k) published by Deloitte & Touche LLP (USA). This 53-page newsletter summarises the final accounting, auditing, and regulatory guidance issued by the FASB, IASB, IFRIC, GASB, COSO, PCAOB, and CAQ throughout the year. The contents of the 2009 Year in Review Accounting Roundup are organised topically as follows: Fair Value Consolidations Investments in Debt and Equity Securities Revenue Business Combinations Income Taxes Pensions and Other Postretirement Benefits Debt (Issuer Accounting) Derivatives and Hedging Activities Financial Instruments Share-Based Payments Receivables Related Parties Other Accounting SEC Matters Other Auditing GASB Matters Other International Appendix A: Significant Adoption Dates and Deadlines Appendix B: Glossary of Standards Appendix C: Abbreviations Links to all issues of Accounting Roundup are Here.

22 December 2009: Issue 2 of Deloitte Southeast Asia newsletter

The Deloitte Southeast Asia (SEA) Assurance & Advisory Services Group has published the second issue of its Point of View newsletter. The newsletter is a collaborative effort among the Deloitte member firms operating in Brunei, Guam, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. It brings together recent updates on financial reporting developments both internationally and within the region. This issue covers: Implementation of FRS 139 in Malaysia News in brief on IFRS activities August to November 2009 Country updates on accounting standards in Guam, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam Click to download Point of View Newsletter Issue No 2 (PDF 278k). We have links to all issues of the newsletter on our Point of View Page.

22 December 2009: SEC comment letters on foreign IFRS issuers

Deloitte (United States) has published SEC Comment Letters on Foreign Private Issuers Using IFRS: A Closer Look (Second Edition) (PDF 1,818k). This report is organised by comment letter topic: Financial Instruments Presentation of Financial Statements Share-Based Payment Revenue Provisions Business Combinations Earnings per Share Income Taxes Intangible Assets Segment Reporting Appendices cover: SEC Staff Review Process Best Practices for Managing Unresolved SEC Comment Letters Tips for Searching the SEC's Database for Comment Letters Deloitte IFRS and SEC Resources In our news story of 3 December 2009, we posted the companion study of SEC Comment Letters on Domestic Registrants (Third Edition).

22 December 2009: Mastering the new financial lingua franca

Deloitte's Global Center for Corporate Governance has published the second annual edition of its year-end Directors' Alert. Entitled Survival or Success: 10 Issues for 2010, the report represents a collaboration among the governance teams from 11 Deloitte member firms. It describes 10 key issues for boardrooms to consider in the New Year. Click to download Directors' Alert: 10 Issues for 2010 (PDF 244k). One of those key issues is mastering the new financial lingua franca – the linga franca being, of course, Internatonal Financial Reporting Standards. The question for many boards is: how well do they 'speak' the new financial lingua franca? Mastering IFRS, just like learning a new language, poses a number of challenges: Does the board understand all of IFRS' subtleties? Board members may understand the individual 'words' and concepts but still not interpret them as intended. Is the board practicing the new language? Directors may study the new standards but if they continue applying the old financial reporting standards while believing that all accounting frameworks are similar, their transition to IFRS will not become a reality. Are we making IFRS easier to apply by making greater use of them? When everybody – the board, management and other stakeholders – all 'talk' in terms of the new standards, their application will be quicker and more effective. Do we think directly in terms of IFRS or just how they differ from the old standards? Shifting conversations to focus solely on IFRS forces people to leave their comfort zones, but it may also make for a much more efficient transition. Directors who oversee financial reporting must familiarise themselves with the new accounting framework as soon as possible. Audit committee members have an additional concern: many jurisdictions require them to be 'financially literate', which will mean being literate in an IFRS world. It is likely that many directors will need to upgrade their skills under an IFRS regime. This Alert suggests some steps directors can take take to help master the language of IFRS.

22 December 2009: Deloitte Canada IFRS transition newsletters

Deloitte Canada has published the December 2009 issue of their Countdown IFRS transition newsletter, to discuss practical issues Canadian companies are facing in IFRS transition as well as to provide an update on recent IFRS events. Articles in this issue include: IFRS in Canada – 2009 the year in review 'The Real Deal' – a recap and review of the real issues and solutions on IFRS transition progress made throughout the year Interim financial statements in the year of adoption of IFRS Final accounting standards for private enterprises released Deloitte publications and events and how to access them An update on current IFRS events – including various important EDs and discussion papers Click below for: December 2009 Edition Countdown Newsletter – English (PDF 1,483k) December 2009 Edition Countdown Newsletter – French (Compte à Rebours) (PDF 1,467k) Related items: You will find more information about financial reporting in Canada on our Canada Page. We have a special page on First-time Adoption of IFRSs We've recently published a new Guide to IFRS 1 (PDF 370k)

21 December 2009: IASB special meeting 5 Jan 2010

The IASB and FASB will hold a joint meeting Tuesday 5 January 2010, from 12:00 to 16:00pm London time, to discuss the Insurance Contracts and Leases projects. The meeting will cover papers distributed for the December 2009 IASB/FASB meeting which were not discussed at that meeting (Leases paper 4D and Insurance Contracts Papers 7 to 7F). The meeting is open to public observation and will be webcast.

21 December 2009: Agenda project pages updated

We have updated the following pages on IAS Plus to reflect the discussions and decisions at the IASB's December 2009 Board meeting: Conceptual Framework: Phase C – Measurement Consolidation Derecognition Discontinued Operations Emissions Trading Fair Value Measurement Financial Instruments with the Characteristics of Equity Financial Instruments: Hedge Accounting Financial Instruments: Classification and Measurement Financial Statement Presentation IAS 37 Measurement Insurance Contracts Joint Ventures Leases Post-employment Benefits Revenue Recognition

20 December 2009: IASB seeks views on FV from emerging economies

Some of the comment letters received on the IASB's May 2009 Exposure Draft (ED) Fair Value Measurement indicated that entities in emerging and transition economies might find it difficult to apply the principles in the ED in practice. The IASB has decided it needs more information about this. Therefore, on its website, the IASB has invited its constituents to submit: "examples or case studies of transactions or situations specific to your jurisdiction that would make the fair value measurement guidance as proposed in the exposure draft unpractical. After reviewing the input we receive, the Board will consider either (a) amending the proposals in the exposure draft for the final IFRS if they are found to be inadequate in some situations or (b) publishing educational material to address the practical application of the fair value measurement principles (or a combination of both). This educational material would seek to address the concerns that we have identified through our outreach activities and how they relate to the fair value measurement guidance in the forthcoming IFRS." The examples should be sent by email to fvm@iasb.org by 31 January 2010. Click for more information on IASB's Website.

20 December 2009: We disagree with IFRIC's draft decision on contingent settlements

In a letter to IFRIC, Deloitte Touche Tohmatsu disagree with the IFRIC's tentative decision not to take onto the IFRIC's agenda a request for an interpretation on the application of IFRS 2 Share-based Payment to transactions in which the manner of settlement is contingent of future events. We believe that the IFRIC should use its mandate enlarged by the IASB and propose guidance on treatment of IFRS 2 transactions in which the manner of settlement is contingent on future events as part of the annual improvements process. We believe that the issue is sufficiently narrow in scope to be addressed within the remits of the annual improvements process rather than as part of a post-implementation review of IFRS 2: that might delay addressing the issue by several years. Click for our Letter to IFRIC (PDF 26k).

20 December 2009: We comment on proposed IFRS 7 exemption

Deloitte has submitted a comment letter on Exposure Draft ED/2009/13 Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters. The ED proposes to amend IFRS 1 First-time Adoption of IFRSs to state that an entity need not provide the comparative prior-period information required by the March 2009 amendments to IFRS 7 Improving Disclosures about Financial Instruments for first-time adopters adopting before 1 January 2010. We support the amendments proposed in the Exposure Draft. However, the need for this amendment raises a concern about the Board's haste in its due process (see box below). Click to Download our Comment Letter (PDF 17k). All of our past comment letters are Here. We would also like to highlight the fact that in our view the Exposure Draft suggests a lack of rigor taken by the Board in preparing the original consequential amendments to IFRSs made necessary by the amendment to IFRS 7 issued in March 2009. We continue to be concerned that the combined effect of ambitious deadlines, shortened periods for comments and deliberations, as well as the heavy workload on the Board's agenda means that this and potentially other consequential amendments fail to be identified at the appropriate time, resulting in precious Board time being spent fixing problems that could have been identified had greater attention to such matters been paid originally.

20 December 2009: Guide to accounting for business combinations

Deloitte United States has published an updated edition of A Roadmap to Accounting for Business Combinations and Related Topics (PDF 2,197k). This 285-page book reflects the FASB Accounting Standards Codification and includes a 12-page appendix that examines differences between US GAAP and IFRSs (IFRS 3 and IASs 27, 36, and 38) on this topic. Contents of the book: Section 1 - Scope of ASC 805 Section 2 - Identifying the Acquirer Section 3 - Recognizing and Measuring Assets Acquired and Liabilities Assumed - General Section 4 - Recognizing and Measuring Assets Acquired and Liabilities Assumed (Other Than Intangible Assets and Goodwill) Section 5 - Recognizing and Measuring Acquired Intangible Assets and Goodwill Section 6 - Recognizing and Measuring the Consideration Transferred in a Business Combination Section 7 - Noncontrolling Interests Section 8 - Income Tax Considerations Section 9 - Push-Down Basis of Accounting Section 10 - Subsequent Accounting for Intangible Assets (Other Than Goodwill) Section 11 - Subsequent Accounting for Goodwill Section 12 - Financial Statement Presentation Requirements Section 13 - Financial Statement Disclosure Requirements Section 14 - Transition Requirements and Other Adoption Considerations

19 December 2009: Notes from December 2009 IASB meeting day 4

The IASB held its December 2009 monthly Board meeting at its offices in London on Tuesday to Friday, 15-18 December 2009. The portion of the meeting on 16-17 December will be a joint meeting with the US Financial Accounting Standards Board. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

19 December 2009: Heads Up on AICPA SEC-PCAOB conference

Annually, the AICPA hosts a conference featuring speeches by, and question-and-answer sessions with, members of the SEC, PCAOB, FASB, IASB, and professionals from various industries. Deloitte United States has published a 47-page Heads Up Newsletter (PDF 466k) that extracts key insights from nearly 26 hours of material presented during this year's AICPA National Conference on Current SEC and PCAOB Developments held on 7 to 9 December. In our IAS Plus News Story of 14 Dec 2009 we posted hyperlinks to each of the presentations. Here is an excerpt from the opening paragraph of Heads Up: If you are like many of us observing the actions of the SEC, you are wondering what date the Commission will set (and whether it will set a date at all) for public companies in the United States to make the switch from US GAAP to International Financial Reporting Standards (IFRSs). Well, if you are reading this publication for clues about that magical date, you will be disappointed. At this year's conference, the SEC did not provide much information on a new IFRS roadmap. However, the SEC and other presenters had a lot to say on a host of other topics. In the Executive Summary below, we cover the major themes discussed at the conference; later sections outline speeches in more detail by subject matter.

18 December 2009: 8 IFRSs 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 17 December 2009 (PDF 120k). The following eight IASB pronouncements are awaiting European Commission endorsement for use in Europe: Standards IFRS 9 Financial Instruments Interpretations Amendment to IFRIC 14 Prepayments of a Minimum Funding Requirement IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments Amendments Improvements to IFRSs (Issued 16 April 2009) Amendments to IFRS 2 Group Cash-settled Share-based Payment Transactions Amendments to IFRS 1 Additional Exemptions for First-time Adopters IAS 32 Classification of Rights Issues IAS 24 Revised Related Party Disclosures You can always find the endorsement status report Here.

18 December 2009: Notes from December 2009 IASB meeting day 3

The IASB is holding its December 2009 monthly Board meeting at its offices in London on Tuesday to Friday, 15-18 December 2009. The portion of the meeting on 16-17 December will be a joint meeting with the US Financial Accounting Standards Board. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

18 December 2009: IFRSs and IFRS for SMEs in Mauritius

The Finance Bill 2009, published December 2009, would amend the accounting requirements in Mauritius to permit the IFRS for SMEs as an option for small state-owned enterprises. The Bill awaits enactment by Parliament. After enactment, the accounting standards structure in Mauritius will be as follows: Listed companies use full IFRSs. State owned enterprises with revenue over 50 million rupees (about US$1.7 million) use full IFRSs. Some state owned enterprises with a turnover 50 million rupees or less will have the choice between full IFRS and IFRS for SMEs. The remaining state owned enterprises with revenue 50 million rupees or less can choose IFRS for SMEs or the Financial Reporting Framework and Standards issued under section 72 of the Financial Reporting Act. Such standards are being developed by the Financial Reporting Council of Mauritius (a proposal was published in September 2009). Companies in Mauritius that are not state owned enterprises and that have turnover greater than 50 million rupees must use full IFRSs. Companies in Mauritius that are not state owned enterprises and that have turnover 50 million rupees or less are exempted from preparing financial statements but must prepare a schedule of financial information (a summarised balance sheet and profit or loss account without notes).

18 December 2009: New IFRS e-Learning modules in Chinese

Six additional IFRS e-Learning modules have now been translated into Chinese and posted on Deloitte's CAS Plus website – bringing the total available modules to 25: IAS 12 Income Taxes IAS 18 Revenue IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IFRS 2 Share-based Payment A complete list of Deloitte's IFRS e-Learning modules in Chinese is Here. To download the modules (there is no charge, but registration is required) click on the lightbulb icon on the CAS Plus home page or Click Here.

17 December 2009: New SEC disclosures about risk and governance

The US Securities and Exchange Commission has approved new rules that improve corporate disclosure regarding risk, compensation and corporate governance matters when voting decisions are made. In particular, the new rules require disclosures in proxy and information statements about: The relationship of a company's compensation policies and practices to risk management. The background and qualifications of directors and nominees. Legal actions involving a company's executive officers, directors and nominees. The consideration of diversity in the process by which candidates for director are considered for nomination. Board leadership structure and the board's role in risk oversight. Stock and option awards to company executives and directors. Potential conflicts of interests of compensation consultants. The new rules, which will be effective 28 February 2010, also require quicker reporting of shareholder voting results. Click for SEC Press Release (PDF 37k).

17 December 2009: Notes from December 2009 IASB meeting day 2

The IASB is holding its December 2009 monthly Board meeting at its offices in London on Tuesday to Friday, 15-18 December 2009. The portion of the meeting on 16-17 December will be a joint meeting with the US Financial Accounting Standards Board. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

17 December 2009: New Zealand model IFRS financial statements

Deloitte New Zealand has published a Model Annual Report illustrating the application of New Zealand Equivalents to IFRSs by an entity that is not a first-time adopter of NZ IFRS. The model annual report is divided into four sections: Section A: Reporting obligations (PDF 320k) – This section provides background information regarding the reporting requirements and legislative framework in New Zealand. Section B: Model annual report (PDF 267k) – This section contains model annual report disclosures and commentaries, including subjects such as corporate governance, the Companies Act 1993 disclosures and stock exchange disclosures. Section C: Model financial statements (PDF 1,993k) – This section contains the model financial statements of Green Dot Holdings Limited, for the year ended 31 December 2009. Section D: Other information (PDF 77k) – This section contains additional tools for users, including a listing of each NZ IFRS which is applicable for the year ended 31 December 2009, what is required in an NZX preliminary announcement, and a timeline of critical reporting dates for entities with a 31 December 2009 reporting date.

17 December 2009: CESR summaries of IFRS enforcement decisions

The Committee of European Securities Regulators (CESR) has published its seventh batch of extracts from its confidential database of enforcement decisions taken by EU national enforcers of financial information. From time to time, CESR publishes extracts of selected decisions as a source of information to foster appropriate and consistent application of IFRSs in the EU. Topics covered in batch #7 of CESR's extracts: Restructuring of financial obligations Classification of a loan Presentation of financial instruments Classification of cash and cash equivalents Revenue recognition Customer loyalty programme Segmental reporting Provisions and contingent liabilities Correction of an error Half-yearly consolidated cash flow statement Related party disclosures Provisional purchase price allocation of a business combination Purchase price allocation of a business acquisition Business combination under common control Identification of the acquirer in a business combination Collective assessment for impairment of loans Click to download this and earlier decision summaries: Batch #7 of IFRS Decisions (PDF 278k) December 2009 Batch #6 of IFRS Decisions (PDF 247k) August 2009 Batch #5 of IFRS Decisions (PDF 221k) March 2009 Batch #4 of IFRS Decisions (PDF 216k) December 2008 Batch #3 of IFRS Decisions (PDF 173k) May 2008 Batch #2 of IFRS Decisions (PDF 175k) December 2007 Batch #1 of IFRS Decisions (PDF 49k) April 2007

16 December 2009: Meeting of Financial Crisis Advisory Group

The Financial Crisis Advisory Group (FCAG) was established by the IASB and US FASB in response to the recent global financial crisis. Its purpose is to advise both Boards about the role of accounting during the crisis and potential changes. In July 2009, the FCAG published a Comprehensive Report (PDF 377k) with its recommendations related to accounting standard-setting activities and other changes to the international regulatory environment. The FCAG held its sixth meeting in London on 15 December 2009 to review progress made on its recommendations. Presented below are the preliminary and unofficial notes taken by a Deloitte observer at the meeting. For related information please see our Credit Crunch Page. IASB-FASB Financial Crisis Advisory Group Meeting 15 December 2009 The Financial Crisis Advisory Group was established by the IASB and FASB in response to the recent global financial crisis. Its purpose is to advise both Boards about the role of accounting during the crisis and potential changes. Both co-chairs of FCAG reminded participants in their introductory remarks about the recent developments that gained so much attention, particularly the publication of IFRS 9, failure to endorse IFRS 9 by the European Union through the fast-track procedure, as well as the Joint statement of the IASB and the FASB reaffirming their commitment to convergence. Both co-chairs were highly appreciative of the IASB and the FASB as well as the opportunity for convergence that was created. Nonetheless, both noted that they saw 'dark clouds' both in the U.S. as well as in Europe regarding external pressure on the Boards and their independence. The IASB Chairman summarised the developments in the IASB crisis-related agenda in 2009, including the publication of IFRS 9, an exposure draft on the expected cash flow model, various outreach activities, and the creation of the Expert Advisory Panel on Impairment. He explained that as soon as the FASB publishes its complete financial instruments proposal (expected in Q1 2010) the IASB would expose the document for comments. Based on the comments, the Boards will strive for a converged solution. Sir David also noted that the Boards would, to the extent possible, try to remove differences in the Fair Value Measurement, Consolidation, and Derecognition Standards. He also noted the decision of the EU to 'delay' endorsement of IFRS 9 and expressed his belief that IFRS 9 would be endorsed in Europe in 2010 as part of the normal endorsement process. The FASB Chairman reinforced the message that convergence is a priority, explaining that the Boards have introduced monthly joint meetings (they plan to have six face to face meetings in 2010, five of them in London and the remaining by videoconference). In his words, the Boards try to avoid leapfrogging and to align their timelines for projects. To reinforce this message the Boards will issue public quarterly progress reports. Nonetheless, the FASB Chairman also reiterated that the feedback they received from the U.S. constituents was more positive about a comprehensive project (rather than a phase approach) and about a fair value model. Therefore, the FASB will try to have a converged solution, or a solution that would ensure broad comparability of the financial statements if full convergence on the specific issue of fair value and amortised cost proved impossible (as many think that a fully converged solution would have to lead to identical equity). He stressed that the Boards were very close in the dividing line between what goes into earnings and 'the other category' but some differences remain. He underlined that the main aim of Boards was at least to have a fully converged income statement but that the Boards appreciated that both amortised cost and fair value was important information. On impairment, he cited reluctance amongst U.S. regulators about the viability of through-the-cycle-provisioning. He noted that both Boards aimed at a forward-looking model. While the FASB is concerned about the rigour and auditability of the expected-loss model, FASB has pledged full participation in the Expert Advisory Panel. On independence of the standard setter, the FASB Chairman noted that an amendment authorising a Systemic Risk Council to override a Standard without a due process was defeated in the U.S. House of Representatives. The FCAG Co-chair noted that the Council was one of the 'dark clouds' he mentioned earlier. Many members noted that the timing of the comprehensive financial instruments review was crucial as there was a 'window of opportunity for convergence' created by the delay of endorsement of IFRS 9 in the EU. The FASB chairman noted that the comprehensive project should be published for comments in February or March 2010 to allow the Boards time for discussions on convergence. Many members discussed the EU decision not to endorse IFRS 9 speedily. One FCAG member was particularly concerned about the impact of that decision on the rest of the world and whether IFRS 9 was implemented as written. Some members saw the EU failure to endorse IFRS 9 in the fast track procedure as a positive development as it took pressure from the IASB that should not be there in the first place and re-instated a due process in the EU endorsement mechanism. Other members were more sceptical and saw a hidden agenda of interference that may endanger the independence of the Board. In response, the IASB Chairman noted that the actions of Europe raised concerns in other countries. He mentioned that a newly formed group of Asian standard setters might help to counteract the pressure from the U.S. and Europe. He noted that the IASB is a global standard setter that is not bound by agenda solely in Europe. The FASB chairman noted in response to a question that the biggest risk to convergence was 'that the Boards come to different answers' and reiterated that the IFRS solution on financial instruments was not popular in the U.S. He also stated that the amortised cost model omitted very important information from the balance sheet. On the issue of an extended role for banking regulators, most members agreed that a common solution should be found in a way that facilitates common inputs but that differences would still exist as the purpose of financial reporting and prudential regulation is different. The Basel Committee representative clarified that the EU did not delay the endorsement of IFRS 9 but that it just decided not to accelerate it – which, in her opinion, was a fundamental difference. She also noted that the European Commission had not asked for IFRS 9 and the decision not to invoke fast-track needed to be read in that context. IASB Chairman responded that the complete overhaul of IAS 39 was required to ensure a level playing field, short of adopting the U.S. Standards. The Basel Committee representative acknowledged progress of IFRS 9 but cited some arguments raising concerns (for example, the treatment of uncertainty, no recycling for equity instruments at fair value through other comprehensive income, increased usage of fair value in particular as fair value for loans has no economic substance in continental Europe as there is no active secondary market). She also pledged the willingness of the Basel Committee to participate on the EAP discussion but raised concerns about how operational the proposed expected-loss model would be for the banking industry. The CESR representative praised the IASB for IFRS 9 and noted that in CESR's opinion IFRS 9 was an improvement to IAS 39. On endorsement, he noted that the endorsement process was a normal part of the 'politics of the EU' and should be not taken as 'the end of the world'. Concluding remarks On balance, FCAG members reached a consensus that the Boards were responsive to FCAG's recommendations and appreciated the work done by the Boards. As the next step, the FCAG members would like to discuss and address the progress of convergence. Consequently, the FCAG decided to have an additional meeting in October 2010 in New York to assess the progress on convergence and the financial instruments project. At that meeting the FCAG will prepare a letter to G20 (meeting scheduled for November 2010) on the progress to achieve a global set of high-quality accounting standards. This summary is based on notes taken by observers at the FCAG meeting and should not be regarded as an official or final summary.

16 December 2009: Two Deloitte IFRS newsletters in Chinese

Deloitte China has published the Chinese translations of the following IAS Plus Update IFRS newsletters: IFRIC 19 - Accounting for Debt for Equity Swaps Chinese Translation (PDF 157k) Here is the English Version (PDF 79k) Amendment to IFRIC 14 - Prepayments of a Minimum Funding Requirement Chinese Translation (PDF 154k) Here is the English Version (PDF 60k) The Chinese newsletters are permanently available at Deloitte's CAS Plus Website and on our China Page. All past English versions are on our Newsletters Page.

16 December 2009: Notes from December 2009 IASB meeting day 1

The IASB is holding its December 2009 monthly Board meeting at its offices in London on Tuesday to Friday, 15-18 December 2009. The portion of the meeting on 16-17 December will be a joint meeting with the US Financial Accounting Standards Board. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

15 December 2009: Revised financial reporting guidelines from CEBS

The Committee of European Banking Supervisors has published revised guidelines on financial reporting (FINREPrev2). The revision of the guidelines is part of CEBS's effort to enhance and streamline reporting requirements for supervised institutions. CEBS recommends that EU Member States make the guidelines mandatory effective 1 January 2012 (CEBS's current authority is limited to making recommendations). In releasing the guidelines CEBS states: IAS/IFRS amendments. In order to avoid redundant and costly IT system changes CEBS will take into account agreed changes to IAS/IFRSs before starting implementing the revised FINREP framework (in particular, the recent IASB project on IAS 39 replacement and the proposal on IAS 1). A dedicated team consisting of accounting and reporting experts will monitor IASB proposals in order to assess the impacts on the FINREP framework. The revised guidelines on financial reporting will be reviewed in due course to take account of changes that are agreed in the future. Click for: CEBS Revised Guidelines on Financial Reporting (FINREPrev2) (PDF 311k) FINREP Templates Developed by CEBS (XLS 305k) Press Release (PDF 157k) Feedback Statement from CEBS Consultation (PDF 133k)

15 December 2009: New edition of IASCF XBRL Update

The December 2009 edition of XBRL Update from the IASC Foundation is now available on the IASB's Website.

14 December 2009: Summary of IPSASs in Czech

Deloitte Czech Republic has published Vydání na rok 2009: Přehled standardů IPSAS (Summary of International Public Sector Accounting Standards or IPSASs) in the Czech language. It provides key information on IPSAS, including a summary of IPSASs as of 1 January 2009. It describes the major differences between IPSASs and the current Czech legislation relating to financial reporting by the public sector (entities that are territorial self-governing units, institutions receiving contributions from the state budget, state funds, and governmental organisational units. Click to download Vydání na rok 2009: Přehled standardů IPSAS (link to Deloitte Czech Republic website; please register and then download).

14 December 2009: SEC staff comments at AICPA conference

The American Institute of CPAs held its 37th Annual National Conference on Current SEC and PCAOB Developments in Washington on 7-9 December 2009. We previously posted stories about the presentations of: Securities and Exchange Commission Chief Accountant James L Kroeker FASB Chairman Robert H Herz Commissioner Elisse B Walter The following additional presentations are available on the SEC's website: SEC Staff Speaker With Hyperlink to Presentation Topic Slide Presentation (PDF 242k), Joel K Levine, Assistant Director, Office of Interactive Disclosure XBRL filings Remarks of Jason S Flemmons, Associate Chief Accountant, Division of Enforcement Investor protection and fraud prevention Slide Presentation (PDF 127k), Wayne Carnall, Chief Accountant, Division of Corporation Finance, and others on the Division staff Current developments in the Division of Corporation Finance Remarks of Robert S Khuzami, Director, Division of Enforcement Changes in the SEC's Enforcement Division and financial statement and accounting fraud Remarks of Paul A Beswick, Deputy Chief Accountant, Office of the Chief Accountant Loan loss provisioning and use of assumptions and accounting judgments Remarks of Doug Besch, Professional Accounting Fellow, Office of the Chief Accountant Disclosure of material weaknesses in internal controls Remarks of Brian W Fields, Professional Accounting Fellow, Office of the Chief Accountant Transfers of financial assets, redeemable equity shares and contracts on own stock, and derivatives and hedging issues Remarks of Joshua S Forgione, Associate Chief Accountant, Office of the Chief Accountant Revenue recognition and joint venture formation Remarks of Douglas T Parker, Professional Accounting Fellow, Office of the Chief Accountant Whether and under what circumstances a newly-formed entity should be considered the accounting acquirer in a business combination (new basis accounting) Remarks of Allison M Patti, Professional Accounting Fellow, Office of the Chief Accountant International auditing standards Remarks of Evan Sussholz, Professional Accounting Fellow, Office of the Chief Accountant Goodwill impairments and the development of market participant assumptions for fair value measurements Remarks of Arie S Wilgenburg, Professional Accounting Fellow, Office of the Chief Accountant Consolidation of variable interest entities and separating revenue arrangements with multiple deliverables Slide Presentation (PDF 403k), Angela Crane, Associate Chief Accountant, and Michael Stehlik, Staff Accountant, Division of Corporation Finance Best practices for working with SEC staff

14 December 2009: SEC Commissioner's comments on IFRS Roadmap

In her remarks at the AICPA National Conference on Current SEC and PCAOB Developments in Washington on 9 December 2009, SEC Commissioner Elisse B Walter spoke about 'convergence of US accounting standards with international accounting standards' and the next steps for the proposed Roadmap for the use of IFRSs by domestic US SEC registrants. Click to download Commissioner Walter's Remarks (PDF 43k). Here is an excerpt: Proposed IFRS Roadmap The Commission's staff, in particular the folks in the Office of the Chief Accountant and the Division of Corporation Finance, have been working to help me and my fellow Commissioners evaluate the comments we received on the proposed IFRS Roadmap. In terms of where we are in the process of moving forward, the comment period ended in April with over 200 thoughtful letters received. We are, as always, carefully reading all of these responses – most of them, more than once. The comment letters raise a number of complex issues, including issues related to the workability of various aspects of the proposed approach. We are very thankful to all who took the time to share their knowledge and experience with us. Our next steps will, of course, be determined in part by the feedback we received. Commenters appear to generally agree on the benefits of a single set of high quality global accounting standards. Commenters differ, however, and differ strongly, on the best plan for getting there. Reading through many of the comments, I have been struck not only by the diversity, but also by the intensity of opinions on the issues. As with any important policy question, we are proceeding deliberately and thoughtfully. We are working diligently to make sure we understand all of the advantages and disadvantages. Chairman Schapiro has said that we would soon turn to the proposed IFRS Roadmap, and we are doing just that. At this stage in our review process, I expect we will likely consider further action sometime in early 2010.

14 December 2009: 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 2009 edition includes a summary of the new and revised Singaporean FRSs (standards) and INT FRSs (interpretations) issued since the previous edition in October 2008 and up to 12 November 2009. Overview of the publication: Section I: Financial Reporting Standards New/Revised FRS issued in 2007 Revised/amended FRS and INT FRS issued in 2008 Revised/amended FRS and INT FRS issued in 2009 Exposure Drafts in issue Summary of differences between FRS and IAS/IFRS Section II: Other Financial Reporting Matters Update on auditing standards Amendments to SGX Listing manual Click to Download the Booklet (PDF 1,492k, November 2009, 82 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.

13 December 2009: Call for sustainability disclosure standards

More than a dozen accountancy institutes around the world have jointly written an open letter to the political leaders attending the Copenhagen Convention on Climate Change calling for a single set of universally accepted standards for climate change related disclosures. The signatories believe that an 80% reduction in greenhouse gas emissions by 2050, supported by the G8 summit in July 2009, requires clear measurement and disclosure standards. They call on the political leaders in Copenhagen to endorse the establishment of an independent standard setting body to develop universal standards for those disclosures. And they urge development of an assurance standard for sustainability disclosures. Click to Download the Open Letter (PDF 159k). Here is an excerpt: We call for a set of universally accepted standards for the disclosure to shareholders of climate change-related information1 connected to financial performance and to mainstream financial reporting.2 We propose that policy makers endorse collaboration between all relevant stakeholders to form an independent standard setter charged with achieving these goals. We call on policy-makers to endorse the establishment of an independent, stakeholder-led standard setting body with appropriate accountability to public authorities, tasked with the development of a single set of universal standards for businesses to make climate change-related disclosures, linked to financial performance and mainstream financial reports. We believe that this will promote provision of more trusted, accurate and reliable information to investors and other stakeholders, thus enabling them to make better-informed decisions and drive the scale of behavioral change necessary to achieve a low-carbon economy.

12 December 2009: Plans for improving IFRS XBRL in 2010

The International Accounting Standards Committee Foundation has published The IFRS Taxonomy 2010 Architecture Draft for public comment. It also published a project summary and feedback statement on Architectural Improvements to the IFRS Taxonomy. The feedback statement summarises the architectural improvements that will be implemented in the next release of the IFRS Taxonomy in 2010 as a result of consultations in July 2009. Both documents may be found Here on the IASB's website.

12 December 2009: Insurance accounting newsletter in German

Deloitte (United Kingdom) is publishing a series of Insurance Accounting Newsletters. We post these regularly on our IAS Plus Insurance Project Page. Deloitte (Germany) is translating selected insurance newsletters into German. The latest is: Versicherungsbilanzierung 5: Willkommene Vereinheitlichung? (PDF 441k) Translation of UK Issue 9: 0911ukinsuranceifrs.pdf (PDF 353k) The four earlier insurance newsletters available in German are Here.

11 December 2009: FASB chairman's remarks at AICPA conference

In his Remarks (PDF 86k) at the American Institute of CPAs' 37th Annual National Conference on Current SEC and PCAOB Developments earlier this week, FASB Chairman Robert H Herz addressed the following key points: Independent accounting standards that are aimed at providing relevant, transparent, and unbiased financial information are of prime importance to our reporting system, our capital markets, and our economy. Much of the discussion about the role of accounting standards in the economic crisis seems to confuse our role of helping to provide investors and the capital markets with relevant and transparent information on the performance and financial condition of financial institutions (along with other companies) with the regulatory need to ensure the safety and soundness of financial institutions and stability of the financial system. While these tasks often overlap, they are not the same and the setting of accounting standards (ie, GAAP) and the setting of regulatory capital and reserves should be decoupled so that one does not drive the other. Constituents have strongly divided views on issues relating to the accounting for financial instruments and reporting by financial institutions, particularly as regards the use of amortized cost vs. fair value measurements. I will discuss some of the key issues in these debates, including concerns about 'procyclicality'. I will also offer some thoughts on why reporting both fair value information and amortized cost information might help bridge this divide by providing investors and regulators with better, more timely insights on the performance, financial condition, and underlying risks at financial institutions, without eliminating traditional measures of net income and earnings per share and while also allowing regulators to independently establish regulatory capital requirements. How we are systematically and thoroughly addressing these important issues in our project to improve the accounting for financial instruments.

11 December 2009: Japan becomes the newest IFRS country

The Financial Services Authority of Japan (FSA) has Published on its Website, in Japanese, final Cabinet Office Ordinances that allow some Japanese public companies voluntarily to start using IFRSs designated by the Commissioner of the FSA ('Designated IFRSs') in their consolidated financial statements starting from the fiscal year ending 31 March 2010. Concurrently, the Commissioner published the Designated IFRSs as of 11 December 2009 (PDF 21k). Basically, the list includes all IFRSs and Interpretations issued on or before 30 June 2009. Therefore, the list does not include, for example, IFRS 9, IFRIC 19, or the 2009 revisions to IFRS 1, IFRS 2, IAS 24, IAS 32, and IFRIC 14 (some of which become mandatory for annual periods beginning 1 January 2010). The revised Ordinances also discontinue a provision of the current law that allows some Japanese listed companies domestically to submit their consolidated financial statements using US GAAP. About 35 Japanese companies take advantage of this provision. Use of US GAAP will be prohibited starting in fiscal years ending after 31 March 2016. Click for Summary of the Ordinances (PDF 51k) from the FSA's website. The IASB has issued a welcoming Press Release (PDF 101k). To be eligible to voluntarily start using IFRSs in 2010, domestic Japanese companies must meet both of (1) and (2) below: All of the following requirements shall be met: Shares issued by the company are listed on a Securities Exchange in Japan. The company discloses in its Annual Securities Reports information regarding specific efforts to ensure appropriateness of its consolidated financial statements. The company allocates executives or employees with ample knowledge about Designated IFRSs and has in place a structure that enables it to properly prepare consolidated financial statements in accordance with Designated IFRSs. The company, its parent, a related company, or the parent of the related company shall either: disclose under laws and regulations of a foreign jurisdiction periodically as required thereby, documents on its business conditions prepared in accordance with IFRSs; disclose under rules set by a foreign security exchange markets periodically as required thereby, documents on its business conditions prepared in accordance with IFRSs; or own a foreign subsidiary whose capital is equal to or exceeds the equivalent of two billion Japanese yen. A company that chooses to apply Designated IFRSs will be required to disclose in the initial fiscal year of such application: condensed consolidated financial statements reported in accordance with Japanese GAAP (for the current and previous fiscal years) and a description of material changes in converting to Designated IFRSs; and a description of differences between main items prepared in accordance with Designated IFRSs and Japanese GAAP. In subsequent fiscal years, the company will be required to disclose only the information set out in (2) above. Japan intends to consider, around 2012, whether to make IFRSs mandatory for all public companies starting around 2015 or 2016.

11 December 2009: Singapore illustrative financial statements 2009

Deloitte & Touche LLP, Singapore has published Singapore Illustrative Financial Statements 2009 (PDF 2,107k). This publication provides a set of sample financial statements of a typical listed company in Singapore, and includes illustrations of the various disclosures required by the Singapore Companies Act, SGX-ST Listing Manual, and Singapore Financial Reporting Standards (FRSs) and Singapore Interpretations (INT FRSs). Singapore FRSs are nearly identical to IFRSs and will be Fully Converged by 2012. Please see our Singapore Page for more Singapore information.

10 December 2009: EFRAG-FEE paper on expected loss model

The European Financial Reporting Advisory Group (EFRAG) and the European Federation of Accountants FEE have published Impairment of Financial Assets – The Expected Loss Model (PDF 368k). The two groups prepared the paper jointly as part of their pro-active work to provide European stakeholders with a perspective on the IASB's Proposals for the impairment of financial assets. It is intended to promote discussion and debate on those proposals. The paper describes the proposals but does not present the views of either EFRAG or FEE. Click for Press Release (PDF 34k). This joint FEE-EFRAG paper firstly provides detail on the context of the recent IASB proposals and then goes on to give a general description of the expected loss model (including two worked computations). This high-level analysis is followed by a discussion about what information is generated by the model, including a description of how the results would be presented and disclosed in the financial statements and associated notes. Finally the Paper compares the expected loss model with other kinds of impairment models.... The aim of the paper is to provide general characteristics of the expected loss model, highlight the potential complexities and challenges, and stress the key differences from other models, rather than provide the assessment of its suitability, which would be provided in the comment letters to IASB by both FEE and EFRAG next year.

10 December 2009: IFRS Kézikönyv 2009

Deloitte Hungary has published IFRS Kézikönyv 2009 – the Hungarian language translation of IFRSs in Your Pocket 2009. This 124-page publication includes all of the information in the English language edition. Click to download IFRS Kézikönyv 2009 (PDF 460k). This and many other Deloitte IFRS publications are available on our Publications Page.

9 December 2009: Two new IASCF Trustees named

The International Accounting Standards Committee (IASC) Foundation, the body that oversees the International Accounting Standards Board (IASB), has announced the appointment of two Trustees: Yves-Thibault de Silguy, Chairman of the Board of VINCI and former member of the European Commission responsible for economic, monetary and financial affairs, France Harvey Goldschmid, Dwight Professor of Law at Columbia University and a former Commissioner of the US Securities and Exchange Commission, United States The appointments were approved by the IASCF Monitoring Board, an independent body of public capital market authorities. The two new Trustees will take office for a renewable three-year term on 1 January 2010. They will replace Bertrand Collomb (France) and Philip Laskawy (United States), who will retire as Trustees because they are not eligible for reappointment. Click for IASCF Press Release (PDF 159k).

8 December 2009: EU and other IFRS 'enforcers' meet in Paris

At a conference organised by the Committee of European Securities Regulators (CESR), securities market regulators from 33 countries, representatives from the International Accountings Standards Board, and auditors met at CESR's offices in Paris on 3 and 4 December 2009 to discuss enforcement of IFRSs. Participants included staff from regulators in the EU and the European Economic Area (EEA), and representatives of IFRS enforcers from ten other countries: Brazil, China, Egypt, India, Japan, Mexico, South Africa, Turkey, Switzerland, and the USA. Participants shared experiences on how enforcement systems have been set up in different jurisdictions with the objective of enhancing the consistent application of IFRSs around the globe for the protection of investors. Click for CESR Press Release (PDF 175k).

8 December 2009: FCAG will meet on 15 December

The Financial Crisis Advisory Group (FCAG) will meet on 15 December 2009 10:00am to 14:15pm GMT at the Crowne Plaza–The City Hotel in London to discuss the IASB's and FASB's actions in response to the FCAG's July 2009 report, as well as other developments in the standard-setting and regulatory environments. The meeting is open to public observation and will be webcast (click for Meeting Information on IASB's website). The IASB and FASB jointly formed the FCAG to consider financial reporting issues arising from the global financial crisis. Following six meetings that took place from January to July 2009 (you will find the IAS Plus notes from these meetings Here), FCAG issued its Final Report (PDF 377k) on 28 July 2009. The group comprises recognised leaders from the fields of business and government with a broad range of experience in international financial markets.

8 December 2009: AICPA's SEC/PCAOB conference

The American Institute of CPAs is holding its 37th Annual National Conference on Current SEC and PCAOB Developments in Washington on 7-9 December 2009, simulcast in four other cities. Securities and Exchange Commission Chief Accountant James L Kroeker spoke on 7 December 2009. His remarks covered the following broad topics: Accounting standards convergence Principles for addressing changes to accounting standards Recent developments in accounting standards PCAOB oversight Municipal securities and the GASB Regarding the SEC's Proposed Roadmap for the potential use of IFRSs by domestic US registrants (issued for comment November 2008), Mr Kroeker said that the Commission continues to study the issues raised in letters comment. He did not indicate a timetable for completion of that review. Click here for Mr Kroeker's Remarks (PDF 48k). Excerpts relating to the SEC's roadmap are below. Just over a year ago, in a proposed 'roadmap', the Commission sought public comment on a proposed approach with respect to a possible path to greater use of IFRS in the US and suggested a number of milestones that the Commission might consider as important in making that evaluation. That public comment period ended in April of this year, and the staff has spent considerable time over these last few months focusing our attention on the very insightful input we received through that comment process, as well as evaluating potential courses of action.... While there are a number of operational, structural and transitional challenges that must be addressed, I believe the fundamental focus of our evaluation of implementing a set of high quality international standards must be on the impact to investors. I believe that implementing a single set of global accounting standards for US issuers can, and must, be done only in a manner that is beneficial to US capital markets and consistent with the SEC's mission of protecting investors. As we continue to evaluate such a monumentally important initiative, I believe we must carefully consider and fully understand and address issues, such as: US Investor understanding of and perspectives on IFRS; The development and application of IFRS for use as the single set of globally accepted accounting standards for US issuers; The impact on the US regulatory environment; Preparer considerations, including, among other matters, changes to accounting systems, changes to contractual agreements, corporate governance considerations, and litigation contingencies; Human capital readiness; and The role of the FASB in achieving the goal of a single global standard.

8 December 2009: IASCF invites nominees for next IASB Chairman

The Trustees of the International Accounting Standards Committee Foundation, the IASB's oversight body, have launched a global search to identify a successor to Sir David Tweedie as Chairman of the IASB. Sir David will retire on 30 June 2011 when he completes his second term. The Trustees have launched the process now in order to allow time for the broadest international search possible, and to ensure a smooth transition. They expect to make a decision in the second half of 2010. The Trustees are seeking nominations from interested parties, and will also consult relevant bodies throughout the world. A search firm is assisting the Trustees. Click for Press Release (PDF 97k).

8 December 2009: New public sector standard on agriculture

The International Public Sector Accounting Standards Board (IPSASB) has issued International Public Sector Accounting Standard (IPSAS) 27 Agriculture. IPSAS 27 is primarily drawn from the IASB's IAS 41 Agriculture, with limited changes dealing with public sector-specific issues. For example, it addresses biological assets held for transfer or distribution at no charge or for a nominal charge to other public sector bodies or to not-for-profit organizations. The new standard also includes disclosure requirements that are aimed at enhancing consistency with the statistical basis of accounting that governs the Government Finance Statistics Manual. IPSAS 27 is effective for annual financial statements covering periods beginning on or after 1 April 2011, with earlier application encouraged. IPSAS 27 is available to download free of charge from the IFAC website (www.ifac.org/Store).

7 December 2009: Deloitte resources for 2009 year-ends

The 2009 versions of three mainstay Deloitte IFRS publications have been released and are available for download on www.iasplus.com in both PDF and Microsoft Word formats. Deloitte's IFRS Illustrative Financial Statements for 2009. The model financial statements are intended to illustrate the presentation and disclosure requirements of IFRSs. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard. 2009 IFRS Illustrative Financial Statements - Word version (ZIP of a Microsoft Word file 448K) 2009 IFRS Illustrative Financial Statements - PDF version (PDF 599K) Deloitte's IFRS Presentation and Disclosure Checklist for 2009. 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. 2009 IFRS Presentation and Disclosure Checklist - Word version (ZIP of a Microsoft Word file 431k). 2009 IFRS Presentation and Disclosure Checklist - PDF version (PDF 596k). Deloitte's IFRS Compliance Questionnaire for 2009. This questionnaire summarises recognition and measurement requirements in IFRSs issued on or before 30 June 2009 and 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. 2009 IFRS Compliance Questionnaire - Word version (ZIP of a Microsoft Word file 730k). 2009 IFRS Compliance Questionnaire - PDF version (PDF 2,184k).

6 December 2009: Newsletter on IFRIC 19 on debt-equity swaps

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IFRIC Clarifies Accounting for Debt for Equity Swaps (PDF 78k). On 26 November 2009, the International Financial Reporting Interpretations Committee issued IFRIC Interpretation 19 Extinguishing Liabilities with Equity Instruments following its approval by the IASB. IFRIC 19 applies when a debtor extinguishes a liability fully or partly by issuing equity instruments to the creditor. It is effective for annual periods beginning on or after 1 July 2010. This IAS Plus Update newsletter explains IFRIC 19 and provides three computational examples. Past issues of all of our IFRS newsletters are Here.

6 December 2009: Lessons from the initial XBRL submissions

Deloitte United States has published a Heads Up Newsletter (PDF 125k) titled Lessons Learned From Reviewing the Initial Submissions of Interactive Data (XBRL) Files. The US SEC rules requiring submission of XBRL files became effective for the first quarterly filing for a period ended on or after 15 June 2009 for domestic and foreign registrants using US GAAP that have a worldwide public float of more than $5 billion. Since then, over 1,000 XBRL exhibits have been submitted to the SEC in the first phase-in group under the SEC rules. This Heads Up newsletter, which is based on analyses of the submissions both by Deloitte and by the SEC staff, identifies lessons learned from the initial XBRL submissions and makes recommendations that are intended to help registrants avoid problems with their interactive data file submissions. Here is a summary of the recommendations – the newsletter has detailed guidance on each one: Mapping, Element Selection, and Extension Elements Avoid creating unnecessary extension elements. Use appropriate context references instead of creating extension elements. Provide a definition for all extension elements and debit/credit balance attribute information for monetary extension elements where required. Be consistent in the use of extension elements. Avoid selecting elements that are overly broad or overly narrow. Do not select deprecated elements when mapping. Be diligent about documenting selected elements and the reasons for their selection. Tagging Ensure all amounts are entered correctly (ie, as a positive or negative balance) and that decimal attributes are correctly set. Be aware that converting information in financial statement tables to an XBRL format introduces complexity and may require additional time and resources. Be sure to tag parenthetical amounts shown on the face of the financial statements. Other Recommendations Obtain sufficient knowledge about EDGAR Filer Manual requirements. Establish a sustainable and repeatable process for creating interactive data files concurrently with preparation of the traditional financial statements. Do not overemphasize trying to conform the rendering of the interactive data exhibit to the presentation of the traditional financial statements. Perform an EDGAR test filing before transmitting the live submission. Be sure to post a complete interactive data file on the corporate Web site in the required time frame. Use the 'Amendment Flag' element correctly.

5 December 2009: Agenda for December 2009 IASB meeting

The IASB will hold its December 2009 regular monthly meeting at its offices in London on Tuesday to Friday 15-18 December2009. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. IASB Board Meeting Agenda 15-18 December 2009, London Tuesday 15 December 2009 (11:00-16:30 GMT) Joint Ventures Emissions Trading Insurance Contracts Financial Statement Presentation IAS 37 Measurement – comment period on the limited-scope re-exposure draft Wednesday 16 December – Joint Meeting with FASB (08:00-18:30 GMT) Revenue Recognition Leases Financial Instruments with the Characteristics of Equity Fair Value Measurement Conceptual Framework: Phase C – Measurement Insurance Contracts Replacement of IAS 39: Hedge Accounting Thursday 17 December 2009 – Joint Meeting with FASB (08:00-13:45 GMT) Financial Statement Presentation Discontinued Operations Consolidation (education session) Friday 18 December 2009 (09:00-13:30 GMT) IFRS 5 – Discontinued Operations Effective Dates Post-employment Benefits Financial Instruments: Classification and Measurement Derecognition

5 December 2009: Newsletter on amendment to IFRIC 14

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IASB Amends IFRIC 14 (PDF 60k). On 26 November 2009, the IASB amended IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction to remedy an unintended consequence of IFRIC 14 where entities were in some circumstances not permitted to recognise as an asset voluntary prepayments of minimum funding contributions. The newsletter explains the amendment and provides a numerical example. Past issues of all of our IFRS newsletters are Here.

4 December 2009: EU will create 3 financial supervisory authorities

The Council of Finance and Economics Ministers of the European Union, meeting in Brussels on 2 December 2009, agreed on a general approach on draft regulations that would create three new authorities for the supervision of financial services in the EU, namely: a European Banking Authority (would replace Committee of European Banking Supervisors (CEBS)) a European Insurance and Occupational Pensions Authority (would replace Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS)) a European Securities and Markets Authority (would replace Committee of European Securities Regulators (CESR)) The draft regulations are part of a package of proposals to reform the EU framework for the supervision of banking, insurance, and securities markets in the wake of the global financial crisis. The framework envisions the three new European supervisory authorities working in tandem with a network of member state supervisors. The regulations will require approval of the European Parliament. The Council hopes to have the regulations approved some time during 2010. Click for Press Release (PDF 277k). See also our February 2009 Story EC plans to strengthen supervisors and standard-setters .

4 December 2009: IAASB staff alert on audit confirmations

To help auditors use external confirmation procedures more effectively, the staff of the International Auditing and Assurance Standards Board (IAASB) has released Emerging Practice Issues Regarding the Use of External Confirmations in an Audit of Financial Statements. This staff practice alert highlights areas within the International Standards on Auditing (ISAs) that are particularly relevant when deciding to request external confirmations, designing and carrying out confirmation procedures, and evaluating responses received. The alert highlights the need for auditors to pay particular attention to circumstances that may affect the planned use of confirmations, including the risk of fraud and the adequacy of evidence. Click to Download the Alert from the IAASB Website (PDF 136k).

4 December 2009: Eight IFRSs await EU endorsement

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement of IFRSs under the EU Accounting Regulation. Click to download the Endorsement Status Report as of 2 December 2009 (PDF 120k). The latest update reflects the Endorsement on 1 December 2009 of the following by the European Commission: IFRIC 18 Transfers of Assets from Customers IFRS 7 Amendment – Improving Disclosures About Financial Instruments IFRIC 9 and IAS 39 Amendment – Embedded Derivatives The following eight IASB pronouncements await European Commission endorsement for use in Europe: Standards IFRS 9 Financial Instruments Interpretations Amendment to IFRIC 14 Prepayments of a Minimum Funding Requirement IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments Amendments Improvements to IFRSs (Issued 16 April 2009) Amendments to IFRS 2 Group Cash-settled Share-based Payment Transactions Amendments to IFRS 1 Additional Exemptions for First-time Adopters IAS 32 Classification of Rights Issues IAS 24 Revised Related Party Disclosures You can always find the endorsement status report Here.

4 December 2009: Challenge to legitimacy of the PCAOB continues

On 7 December 2009, oral argument begins in a US Supreme Court case in which the constitutionality of the Public Company Accounting Oversight Board (PCAOB) is being challenged. If the plaintiffs' arguments are successful, it could mean an end to the existence of the PCAOB as currently structured under law. The case has been through several levels of court proceedings, the most recent being a decision by the D.C. Circuit Court of Appeals against the challenge to the PCAOB. The plaintiffs have appealed to the US Supreme Court: US Supreme Court Docket: Docket Number 08-861 (link to Supreme Court website) Title: Free Enterprise Fund and Beckstead and Watts, LLP v. Public Company Accounting Oversight Board, et al. Issue in Summary: Whether the Sarbanes-Oxley Act is consistent with separation-of-powers principles – as the Public Company Accounting Oversight Board is overseen by the Securities and Exchange Commission, which is in turn overseen by the President – or contrary to the Appointments Clause of the Constitution – as the PCAOB members are appointed by the SEC. Documents: D.C. Circuit Court of Appeals Opinion (PDF 252k) Petition for certiorari (judicial review) (PDF 652k) Brief in opposition for respondents Public Company Accounting Oversight Board (PDF 718k) Brief in opposition for the United States (PDF 526k) Petitioner's reply (PDF 211k) Brief amicus curiae of Washington Legal Foundation (in support of petitioners) (PDF 648k) Brief amicus curiae of Mountain States Legal Foundation (in support of petitioners) (PDF 374k) Brief amicus curiae of American Civil Rights Union (in support of petitioners) (PDF 391k)

3 December 2009: Accounting Roundup – November 2009

We have posted the November 2009 Edition of Accounting Roundup (PDF 338k) published by Deloitte & Touche LLP (United States). The newsletter is now organised by topic rather than by standard-setter. Topics covered in this issue include: Consolidations FASB Votes to Defer Statement 167 for Interests in Certain Entities Income Taxes Accounting Implications of Tax Law Change for Businesses and Home Buyers Pensions and Other Postretirement Benefits Financial Reporting Considerations Related to Pensions and Other Postretirement Benefits Revenue Guidance on Material Modifications to Revenue Arrangements With Multiple Deliverables Financial Instruments IASB Issues IFRS on Classification and Measurement of Financial Assets IASB Proposes New Approach to Accounting for Credit Losses Earnings per Share EITF Reaches Consensus on Accounting for Stock Dividends, Including Distributions to Shareholders With Components of Stock and Cash Receivables EITF Reaches Consensus-for-Exposure Regarding Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset Stock Compensation EITF Reaches Consensus-for-Exposure Regarding Impact of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Primarily Trades Related Parties IASB Revises IAS 24 on Related-Party Disclosures SEC Matters SEC Observations and Expectations About Executive Compensation Disclosures SEC Releases PCAOB Proposal on Auditing Standard 7 Other Accounting EITF Reaches Consensus-for-Exposure on Casino Base Jackpot Liabilities EITF Reaches Consensus-for-Exposure on the Definition of Deferred Acquisition Costs of Insurance Entities Other Auditing Reports Released by the Institute of Internal Auditors Audit Executive Center Sample Forms Published by the PCAOB You will find past issues of Accounting Roundup Here.

3 December 2009: SEC Comment Letters on Domestic Registrants (Third Edition)

In January 2008, Deloitte (United States) published two Special Reports – Available Here on IAS Plus – analysing the comments by the staff of the US Securities and Exchange Commission on the financial statements of registrants. One of the 2008 reports reviewed comments on domestic registrants using US GAAP. The other reviewed comments on foreign private issuers using IFRSs. And in February 2009, Deloitte published a revised edition of the first report: SEC Comment Letters on Domestic Registrants: A Closer Look (PDF 810k). We have now published a third edition that reflects new topics and updates existing topics to reflect new areas that the SEC staff has commented on since the February 2009 edition. The SEC staff has continued to issue comments on all topics included in that edition, such as revenue recognition, business combinations, segment reporting, financial instruments, and impairments. In addition, in light of the troubled credit markets, the staff has continued to closely scrutinize goodwill and intangible asset impairments, other-than-temporary impairments, deferred tax valuation allowances, pension liabilities, executive compensation disclosures, MD&A disclosures, debt covenant compliance, fair value disclosures, and the allowances for loan losses, just to name a few. New to this third edition are sections on the following industries: Financial services, including the banking, securities, and real estate industries Energy and resources, including the power and utilities and oil and gas industries Health sciences, including the health care and life sciences industries Consumer and industrial products, particularly the retail industry Click to download SEC Comment Letters on Domestic Registrants: A Closer Look (Third Edition) (PDF 2,589k).

2 December 2009: Japan will allow some companies to use IFRSs

As we Reported in June 2009, on 30 June 2009, the Business Accounting Council (advisory body to the Financial Services Authority of Japan (FSA)) approved its Opinion on the Application of International Financial Reporting Standards (IFRS) in Japan (Interim Report) (PDF 130k). The FSA published an English translation of the 'Interim Report' on the FSA's Website. At the same time, the FSA published on their website for comment, only in Japanese, 13 Related Documents including Proposed Ordinances that would have to be adopted to implement the 'Interim Report'. Yesterday, the FSA announced that they will release the final IFRS Ordinances on 11 December 2009. Those Ordinances will be effective immediately on release. Click here for yesterday's Announcement and Near-final Draft Ordinances on the FSA's website in Japanese only. Among other things, the Ordinances would allow certain Japanese public companies voluntarily to start using IFRS in their consolidated financial statements starting from the fiscal year ending 31 March 2010. As a result of comments received on the proposed Ordinances, the FSA has significantly reduced the parallel reporting requirements for those companies voluntarily electing early use of IFRSs. Japan intends to consider, around 2012, whether to make IFRSs mandatory for all public companies starting around 2015 or 2016. To be eligible to voluntarily start using IFRSs in 2010, domestic Japanese companies should meet both of (1) and (2) below: Basic Requirement – All of the following are satisfied: Public company requirement (the entity's shares must be traded on the stock exchange) Disclosure requirement (the entity's annual report includes a disclosure about the entity's policies to ensure proper presentation of the consolidated financial statements in conformity with IFRSs) Human resource/control requirement (the entity has either a member of the board or an employee who is sufficiently knowledgeable about IFRS and has adopted an appropriate internal control framework over the preparation of consolidated financial statements in accordance with IFRSs) International Financial or Business Criteria – Either of the reporting entity, its parent, or certain other affiliated entities meet one of the following: IFRSs are required by foreign laws or regulations IFRSs are required by foreign stock exchange regulations or rules The entity has a listed subsidiary whose capital under the Company Law is over 2 billion yen

2 December 2009: IPSASB consults on sustainability reporting

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has published a Consultation Paper Reporting on the Long-Term Fiscal Sustainability of Public Finances. It seeks views on how information on the long-term sustainability of government programs may complement information available in traditional financial statements, thereby increasing transparency and enhancing accountability and decision making. In issuing the Consultation Paper, the IPSASB notes: "There is a growing understanding that future generations of taxpayers will have to deal with the fiscal consequences of current government policies. Concerns about the ability of governments to meet future service delivery and financial commitments for health, pensions, debt-servicing, and other obligations have long existed, but have increased in the current economic environment. Uncertainty over the long-term financial consequences of government interventions, including the bailouts and stimulus packages that have characterized the global financial crisis, has added another dimension to concerns over the long-term sustainability of public finances in many countries." Click here to Download the Consultation Paper (PDF 637k), which is copyright by IFAC and posted on IAS Plus with permission. Comments are requested by 30 April 2010.

2 December 2009: Deloitte IFRS for SMEs newsletter in Spanish

Deloitte (Colombia) is publishing a series of Spanish language bulletins about the new IFRS for SMEs. We have previously posted Bulletins No 1 through 20 – links can be found Here. We have now posted Bulletin No 21 (1 December 2009), which discusses the following sections of the IFRS for SMEs: Section 28 – Beneficios para empleados (Employee Benefits) Section 29 – Impuestos a los ingresos (Income Taxes) Section 30 – Cambio de moneda extranjera (Foreign Currency Translation) Section 31 – Hiperinflación (Hyperinflation) Section 32 – Eventos posteriores (Events after the End of the Reporting Period) Section 33 – Revelaciones sobre partes relacionadas (Related Party Disclosures) Section 34 – Actividades especializadas (Specialised Activities) Section 35 – Transición hacia el IFRS para PYMES (Transition to the IFRS for SMEs) Click to Download Bulletin 21 (PDF 336k). Nuestros Recursos en Español.

1 December 2009: Role of the audit committee in IFRS conversion

Deloitte (United States) has published an Audit Committee Brief newsletter on Making the Transition to IFRS: The Role of the Audit Committee. The newsletter identifies specific steps the audit committee can take, along with other board committees and management, to help develop the company's strategic plan on IFRSs. The newsletter reviews examples of steps that companies in the United States are already taking in planning for an IFRS conversion, and identifies key questions for the audit committee to ask executive management. Click to download Making the Transition to IFRS: The Role of the Audit Committee (PDF 459k). Considerations for the audit committee What educational needs and goals does the audit committee have? Has the audit committee considered the implications IFRS may have on the financial-expert designation? Does the audit committee have an oversight plan for IFRS adoption, including the implementation process? How will the audit committee remain informed about changes and the impacts of the company's IFRS transition? How will IFRS adoption affect the duties and responsibilities of the audit committee for internal control and financial statement disclosures? Is the audit committee aware of the accounting policy elections and various implications for the organisation? What are the tax and systems implications of an IFRS implementation? This page on IAS Plus has links to Many Other Publications about First-time Adoption of IFRSs.

1 December 2009: Mozambique extends use of IFRSs

On 3 November 2009, the government of Mozambique approved a Decree establishing a new private sector accounting system that requires the use of IFRSs starting 1 January 2010 by all listed companies, public companies, companies with a majority state shareholding, and other large companies. Starting 1 January 2011, IFRSs will be required for all medium-sized companies. The government said that introducing IFRSs would provide greater transparency and comparability and make auditing and regulation easier. Under a previous Decree, banks in Mozambique were required to use IFRSs starting in July 2008. Here is our Mozambique Page.

1 December 2009: Financial Instruments Working Group to meet 9 December

The IASB Financial Instruments Working Group (FIWG) will meet at the IASB's offices in London on 9 December 2009 from 10:00am to 1:00pm London time. The meeting will be open to public observation. The IASB formed the FIWG in September 2004 to examine and question the fundamentals of IAS 39 within the context of the IASB's Framework, with the goal of "improving, simplifying, and ultimately replacing IAS 39". FIWG Meeting Info on the IASB's Website Project Information on IAS Plus

1 December 2009: Notes from Tokyo fair value roundtable

On 27 November 2009, the IASB held a roundtable at the ASBJ offices in Tokyo, Japan, to discuss its Fair Value Measurements exposure draft (ED). Roundtable participants consisted of a cross-section of representatives including auditors, financial statement preparers, valuation experts, and industry. We have posted Notes Taken by Observers at the Tokyo Roundtable (PDF 29k). Those notes represent the roundtable observers' interpretations of the discussions, focussing on those issues that were not discussed at the Norwalk Roundtable held on 2 November 2009. As with the Norwalk roundtable, the following issues were identified by the IASB staff for discussion during the roundtable: Issue A – Fair value as an exit price Issue B – Fair value of liabilities Issue C – Fair value of non-financial assets and liabilities Issue D – Fair value in inactive markets Issue E – Fair value in emerging and transition economies Issue F – Jurisdiction-specific issues Issue G – US GAAP convergence Participants raised points on several other topics, including disclosure requirements and valuation of non-quoted equities.

1 December 2009: IFRS conversion in the real estate industry

Deloitte (United States) has published Ten Lessons from European IFRS Conversion in the Real Estate Industry as a guide to help US real estate companies think about potential conversion to IFRSs. The report notes that the reception of IFRS in Europe (implemented in 2005) has been positive, with many stakeholders believing that IFRSs have led to improved quality in financial reporting when compared to other accounting frameworks. "The experience in Europe has provided practitioners with a mature perspective on taking a smart route through the transition period and the pitfalls on the way, conducting an efficient and effective transition, and securing long term financial reporting process efficiency." Click to Download the Full Report (PDF 1,406k). Ten Lessons from European IFRS Conversion in the Real Estate Industry Conversion can be conquered the European real estate experience versus other industry sectors Getting the strategic plan right is fundamental Define the big issues early An opportunity for consistency across the industry – and to deal with the valuation issue once and for all Engage the right people The importance of communication Keep up-to-date with open matters and developments Look out for common pitfalls Make use of resources This page on IAS Plus has links to Many Other Publications about First-time Adoption of IFRSs.