30 June 2009: We have updated our IASB agenda project timetable

We have updated our IASB Agenda Project Summary and Timetable to reflect the IASB's decisions on its work plan and other public announcements of its project plans. The timetable calls for publication by the IASB of 18 consultation documents and 28 final pronouncements between now and the end of 2011, as follows: 3 discussion papers 15 exposure drafts 25 final IFRSs 1 final guidance document 2 final Conceptual Framework chapters

30 June 2009: Webcasts on IAS 39 – expected loss model

On Friday 3 July 2009 and again on Monday 6 July 2009, the IASB will host two live webcasts to keep interested parties up to date on progress of the IASB's comprehensive project to replace IAS 39. The webcasts will focus on the Board's recently published Request for Information on the feasibility of an expected loss model. The webcasts will include presentations by two IASB project staff people followed by a Q&A session where registered participants can send in questions for the IASB staff to answer. Each webcast, including the question and answer session, is expected to last around one hour. Details of the webcasts: Webcast Topic: Project to comprehensively review IAS 39 – Expected loss impairment model Date and Time - First Webcast: Friday 3 July 2009 10:00am (London time) Date and Time - Second Webcast: Monday 6 July 2009 3:00pm (London time) Presenters: Sue Lloyd, Senior Technical Consultant and Martin Friedhoff, Project Manager More Information and Registration Project Page on IASB Website Project Page on IAS Plus

29 June 2009: Commissioner McCreevy comments on accounting and financial crisis

Charlie McCreevy, the EU Commissioner for Internal Market and Services, spoke on issues relating to the economic and financial crisis before the Institute of Chartered Accountants in Ireland in Dublin on 26 June 2009. Click to Download Mr McCreevy's Remarks (PDF 56k). His comments on accounting included the following: As you all know, the role of accounting rules has become the subject of heated debate. But we remain convinced that the international standard-setting system is the best way forward. And this is not solely an EU view. It is also the view of the G-20. Accounting rules did not cause the crisis but it is fair to ask did they amplify it? We need to look at what has happened and see if the rules need to be adjusted so as to strengthen financial stability. I am pleased that at last the IASB plans to complete its fundamental revision of IAS 39 by the end of this year. This is an ambitious agenda for such a complex standard. I know there are many financial institutions in the EU who will want to have the revision of the impairment rules in place for the year end accounts. ECOFIN ministers have conveyed their intentions in this regard.

29 June 2009: Agenda for 9 July 2009 IFRIC meeting

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 9 July 2009 (one day only) 10:00am to 16:30pm. The meeting is open to the public and will be webcast. The tentative agenda is shown below. Agenda for the IFRIC Meeting Thursday, 9 July 2009 Introduction Review of Tentative Agenda Decisions published in May IFRIC Update IFRS 3 Business Combinations – Acquisition-related costs in a business combination IFRS 3 Business Combinations – Earlier application of revised IFRS 3 IAS 7 Statement of Cash Flows – Determination of cash equivalents IAS 27 Consolidated and Separate Financial Statements – Transaction costs for non-controlling interests IAS 28 Investments in Associates – Potential effect of IFRS 3 (as revised in 2008) and IAS 27 (as amended in 2008) on equity method accounting IAS 28 Investments in Associates – Venture capital consolidations and partial use of fair value through profit or loss IAS 28 Investments in Associates – Impairment of investments in associates IAS 39 Financial Instruments: Recognition and Measurement – Hedging using more than one derivative as the hedging instrument IAS 39 Financial Instruments: Recognition and Measurement – Meaning of 'significant or prolonged' IFRIC 12 Service Concession Arrangements – Scope of IFRIC 12 Review of Tentative Agenda Decisions published in March IFRIC Update IFRIC 18 Transfers of Assets from Customers – Applicability to the customer IAS 34 Interim Financial Reporting – Interim fair value disclosures IAS 38 Intangible Assets – Compliance costs for REACH Staff Recommendations for Tentative Agenda Decisions IFRS 2 Share based payment – Non-vesting condition or non-market based vesting condition when condition is not within the control of the entity or employee IFRS 3 Business Combinations – Measurement of NCI IFRS 3 Business Combinations – Un-replaced and voluntary replaced share-based payment awards IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – Writedown of a disposal group IAS 23 Borrowing Costs – Meaning of 'general borrowings' IAS 32 Financial Instruments: Presentation – Debt to equity swap Administrative Session – IFRIC work in progress

28 June 2009: Consolidation and derecognition roundtables

The IASB is holding a series of roundtable discussions with constituents focusing on its recent proposals in ED 10 Consolidation and ED/2009/3 Derecognition. Roundtables have been held in North America and Asia. The European roundtables were held in London on 15 and 16 June 2009, in conjunction with the regular meeting of the IASB. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the roundtables. Notes from the Consolidation and Derecognition Roundtables 15 and 16 June 2009, London Monday 15 June 2009 – Derecognition Participants expressed a preference for the approach put forward in the Alternative View to the Exposure Draft rather than the preferred approach that was described by the ED, with most participants raising concerns about the consequences of adopting the preferred approach. In particular, several participants proposed a more explicit risk and rewards filter in the process of derecognition as they felt that underlying risk and rewards exposures may be otherwise lost. Alternative approach supported by five IASB Board Members, as described in the exposure draft Under the alternative approach, when the rights to identified cash flows are transferred, the transferor derecognises the previously recognised asset and recognises all the rights and obligations either retained or obtained in the transfer transaction. For example, forward contracts, puts, calls, guarantees or disproportionate involvement with respect to transferred cash flows would not result in failed sales or result in the recognition of a liability for the proceeds received. Any involvement would be recognised and measured at the date of transfer at fair value. The objective would be to recognise any rights and obligations associated with a transferred asset as if those rights and obligations related to an asset that had not previously been owned. Under the alternative approach, a transferor could be required to apply the same disclosure guidance as proposed by the amendment to IFRS 7. The proposed amendment to IFRS 7 would provide adequate information to enable users to evaluate the nature of and risks associated with the transferor's continuing involvement in derecognised financial assets. The full exposure (including the nature, timing, ranking, amount and uncertainty of any obligations or cash outflows relating to the entity's continuing involvement in a transferred asset and the details about those assets) would be provided in one note (disclosure). Hence, the proposed disclosures would provide clear information both on the allocation of risks and on their potential impact on the financial condition of the transferor. One participant expressed his concern that in the current period of economic crisis the Board had opted for an approach that could lead to more derecognition of financial instruments when the market is expected the opposite development. Some participants suggested that recognition criteria that incorporated the overall risk exposure on the balance sheet rather than disclosing it in the notes would be preferable for users of the financial statements. Concern was also expressed about the different criteria for transferors and transferees in the ED and how those could be reconciled. The discussion continued regarding the continuing involvement filter in the derecognition criteria. Several ideas were floated; one participant seemed to object to the introduction of a model that has inherent exceptions built in itself (that is, call options). Participants also notified that a kind of de minimis threshold for continuing involvement would be needed in order to avoid practical issues on application. The panel continued with the discussion on the practical ability test for derecognition of financial instruments. Most participants agreed with the thrust of the proposal, nonetheless, most raised the practical issues. In particular concerns were raised that different parties can interpret the criteria in a different way depending to whom the transfer is being made and that how would be derecognition applied in case further transfer is regulatory restricted. Moreover, as one participant pointed out, there is a potential inconsistency with ED 10 as you may have come to a conclusion that no consolidation is required but in the same time to fail the derecognition test. Much attention in the discussion was paid to the alternative model which was included in the ED. Many participants thought that it would provide a better reflections of economic reality, but on the other hand felt that the alternative approach had not been developed sufficiently in the ED to enable them to endorse it. One participant expressed his concerns that the alternative model, albeit being more conceptually pure, will be even less understandable to the users of financial statements. Particular concerns were raised in relation to recording a gain on derecognition when only a part of and instrument is being derecognised without changing the nature of it. Overall, many participants raised concerns about the speed of the project as well as perceived lack of coordination with FASB, that could lead to further lack of convergence with US GAAP. The staff noted that the speed of the project is determined by the current economic environment and in particular demands from governments and regulators. The staff noted the risk that unless quick solution is found regulators may impose their own rules. Many participants expressed concerns about the proposed disclosures. There was general agreement that a new framework for disclosures was needed: one that would make them more principle-based as opposed to the current practices, under which they are treated as a mandatory checklist containing both minimum and maximum disclosure requirements. In particular, the potential usefulness of the disclosures to some entities was questioned. Participants thought that in some instances disclosures of financial instruments derecognised (or not recognised on the balance sheet in the first place) could be more useful than detailed disclosures of derecognitions that failed the proposed criteria. Monday and Tuesday 15 and 16 June 2009 – Consolidation In the discussion on ED 10 on consolidation, participants expressed support for the general principles of the proposal (that is, the IAS 27/SIC-12 model). Most agreed that control requiring elements of power and return is the right basis for consolidation. However, some participants noted that final clarification will be required in the standard to make it both practical and operational. A majority of participants agreed that involvement of the entity in design of an entity does not constitute control in itself but is a useful indicator of existence of control. Regarding the question of contingent power the panel noted that more clarification on the matter is required in the standard or/and in the guidance. Many participants pointed out the difference in application for operative entities as opposed to SPEs. Most participants agreed that it would be unhelpful if the standard were to contain the definition from US GAAP that 'power is the ability to direct the activities of an entity that most significantly affects the returns' and further clarification would be required. When discussing disclosure the panel noted the same observations as during the derecognition session. In particular some participants were concerned with inadequate disclosures about risk. Nonetheless there was agreement that this would require the overhaul of the disclosure requirements, especially revision of IFRS 7 requirements and development of a new disclosure framework. On 16 June, the roundtables continued with a separate consolidation session. In general, participants supported the proposed control model, with control being defined as requiring both power and returns element. Some participants, nonetheless preferred the current definition of control as described in SIC-12 as these definitions are likely to be clear and are widely understood in practice. Much of the attention in the discussion was paid to the role of risk and returns in the analysis, with most of the participants supporting the notion that the more the reporting entity is exposed to risk and rewards, the more likely it is that it also has the power to direct the activities of that entity. Many participants however raised their concerns with regards to the application of this model to structured entities and investment vehicles. Some participants asked the staff to incorporate a link between returns and power in the standard. In general, the participants expressed the need for careful redrafting of the text in order to make it more clear, concise and unambiguous. Specific attention was paid to the notion of control with less than a majority of voting rights. There was a significant discussion between the participants reflecting the different jurisdiction from which these participants come from as well as different legal and cultural conditions. There were mixed views about when options would give the holder control. Most participants agreed that options are important for the overall assessment of the need for consolidation, but they expressed concerns about how the ED was drafted. In particular, some participants thought the notion of a currently exercisable option worth exploring but they reiterated the need for further guidance. Overall, the conclusion was that greater clarity is needed in this area. Discussion of agency relationships and dual roles showed that there was a lot of divergence in practice as well as in opinions about how these issues should be settled. In particular the discussion centred on removal rights as being one of the indicators of agency relationship; and dual roles where the proposed guidance was seen to be ambiguous. The participants asked the IASB to clarify these questions. The discussion continued with the notion of control in structured entities and investment vehicles. The participants agreed with the proposal that design of the entity in itself does not constitute control. Some participants proposed that the Board should incorporate the exposure to the variability of returns to the notion of control. In general, the participants supported the proposal that operational and structured entities shall be covers by a single guidance and encouraged the staff to explore further clarification of outstanding issues. Regarding disclosures, the participants agreed that some of the proposed disclosures are too prescriptive and burdensome as they encourage the checklist mentality to be applied in process of preparation of financial statements. Many participants expressed their concern that important data might be lost in the voluminous disclosures prescribed. In particular, they supported the inclusion of the disclosures on risk and off-balance sheet exposures in IFRS 7 rather then in the new consolidation standard. Nonetheless, they in general appreciated enhanced disclosures as required by regulators and analysts. Finally, the IASB staff stated that they would like to stick with the proposed timetable and issue the standard by the end of 2009. The FASB member who was attending the roundtable stated that the FASB plans to expose the final IASB standard for discussion once issued. It would then forward any improvements that it incorporates in US GAAP to the IASB for consideration. This summary is based on notes taken by observers at the roundtables and should not be regarded as an official or final summary.

28 June 2009: IASCF Trustees and Monitoring Board will meet

The Trustees of the IASC Foundation, under which the IASB operates, will meet on 6-8 July 2009 at the Intercontinental Amstel Hotel in Amsterdam, The Netherlands. The meeting on 6 July 2009 is with the IASCF Monitoring Board and is open to public observation. The Trustees meeting on 7 July 2009 is also open to public observation. Presented below is the agenda for the public portion of the meeting. Monday 6 July 2009 - Meeting with the Monitoring Board (14:30-18:00h) Introduction and opening remarks IASB's response to the financial crisis Second part of the IASC Foundation Constitution Review and other governance matters IASC Foundation financing arrangements Regulatory update on IFRS adoption and IFRS related issues Tuesday 7 July 2009 (10:45-18:00h) Introduction and opening remarks IASB's response to the financial crisis Review of IASB's work programme Constitution Review, Part II Report of the Due Process Oversight Committee Report of the SAC Chairman Review of financial requirements and funding update

28 June 2009: FASB Chairman Herz speaks to National Press Club

US FASB Chairman Robert H Herz spoke before the National Press Club in Washington on 26 June 2009. His presentation was titled History Doesn't Repeat Itself, People Repeat History – Front-Line Thoughts and Observations on Creating a Sounder Financial System (PDF 59k). Among the points he made: Accounting and the financial crisis. "One very welcome development arising from the financial crisis is that a much broader constituency is calling for greater transparency as a necessary ingredient for recovery and the rebuilding of investor and public confidence. Included in this has been the need to improve and strengthen certain accounting and reporting standards. While accounting did not cause the crisis and accounting will not end it, it did reveal a number of areas requiring improvement in standards and overall transparency." Politicisation of accounting standards setting. "Unfortunately, there have been certain major companies – including ones that subsequently failed and had to be rescued by the government – and industry trade groups that have sought political intervention into accounting standard setting. While that is their right, and while we certainly welcome active dialogue with lawmakers, politicisation of accounting standard setting by special interests risks undermining public confidence in the integrity of financial reporting. The investing public expects and deserves unbiased and transparent financial information that is not skewed to favor particular transactions, companies or industries." Transparency. "Transparency is not just a buzz word or a cliché. It is a fundamental and absolutely essential attribute of sound financial markets. Relevant, trustworthy, and timely information is the oxygen of financial markets. Depriving markets of such information – or polluting the information – can have very adverse consequences." Regulatory reform. "Some of the most difficult accounting and reporting issues emanating from the financial crisis stem, at least in part, from the lack of proper regulation and risk management, unsound lending and securitisation practices, and the absence of proper market infrastructures around the 'dark markets' for structured credit products and derivatives." Capital markets reporting versus prudential regulatory reporting. "Our focus as accounting standard setters is on the communication of relevant, transparent, and unbiased financial information on corporate performance and financial condition to investors and the capital markets. That information is aimed at facilitating informed investment decisions and is essential to effective allocation of capital across the economy. The transparency provided by external financial reports also contributes to financial stability by reducing the level of uncertainty in the system. On the other hand, the very important focus of bank regulators is on the safety and soundness of individual financial institutions, protection of customer deposits, and on the overall stability of the financial system. Given our different missions and focus, it is not surprising that we would sometimes have different perspectives on particular accounting and reporting matters affecting financial institutions." Global accounting standards. "Recognising the potential benefits that could result from having a single set of high-quality accounting standards across the global capital markets, we have devoted substantial time and effort in recent years to working with the International Accounting Standards Board on jointly improving and converging our respective standards through developing common standards in major areas and eliminating differences between our standards. At the same time, we also strive to take care of business at home by responding on a timely basis to reporting issues in our system. Riding these two horses is not always easy and sometimes requires timely actions in terms of improving US GAAP in an area while also working on longer term global solutions with the IASB in the same area."

26 June 2009: PCAOB will defer inspections of some non-US audit firms

The US Public Company Accounting Oversight Board has adopted an amendment to a rule on the timing of certain inspections of registered non-US public accounting firms. The amendment gives the Board the ability to postpone, for up to three years, the first inspection of any foreign registered public accounting firm that the Board is otherwise required to conduct before the end of 2009 and that is in a jurisdiction in which the Board has not conducted an inspection prior to 2009. The delay gives the PCAOB the ability to conduct these inspections cooperatively with the Board's non-US counterparts. Click for PCAOB Press Release (PDF 39k). The text of the amended rule is available On the PCAOB's Website.

26 June 2009: IAS Plus Newsletter on proposed amendments to IFRIC 14

On 28 May 2009, the IASB published an exposure draft of proposed amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The proposed amendments are aimed at correcting an unintended consequence of IFRIC 14, which is that technically, in some circumstances, entities are not permitted to recognise as an asset some prepayments for minimum funding contributions. The ED proposes to correct the problem. Comments on the ED are due 27 July 2009. Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter Explaining the Proposed Amendments to IFRIC 14 (PDF 73k). Past issues of all IAS Plus newsletters are Here.

25 June 2009: IASB invites comments on expected loss model

The IASB has published a Request for Information on the feasibility of using an expected loss model for the impairment of financial assets. Impairment is one of the issues that the IASB is addressing in the second phase of its Comprehensive Review of IAS 39. Incurred loss model. The current model in IAS 39 requires an entity to account for credit losses in financial assets only if an event (or a combination of events) has occurred that has a negative effect on future cash flows and that effect can be reliably estimated (this is known as the incurred loss model). A feature of that model is that an entity is not permitted to consider the effects of future expected losses. The financial crisis has highlighted this as an area of concern. Expected loss model. At the request of the G20 leaders and others, the IASB is examining the expected loss model as an alternative. The expected loss model requires an entity to make an ongoing assessment of expected credit losses, which may require earlier recognition of credit losses. Proponents argue that this would better reflect the way that financial assets are priced and the way some companies manage their business. The IASB invites responses to its Request for Information by 1 September 2009. Click for: Press Release (PDF 103k) Download the Request for Information from IASB's Website

25 June 2009: Two CEBS reports on European bank disclosures

The Committee of European Banking Supervisors (CEBS) has published two reports assessing banks' disclosures (a) in their 2008 audited annual reports on activities and exposures affected by the financial crisis and (b) under Basel Committee Pillar 3 (market discipline). Assessment of 2008 annual report disclosures. The analysis covers 23 large banks with cross-border activities. CEBS found 'a significant increase of disclosures compared to the previous analyses.... At the same time CEBS identifies a number of areas within the CEBS good practices – mostly in the context of accounting-related disclosures – where disclosures could be further improved, including disclosures on fair value measurement and related methodologies'. CEBS intends to develop a set of high-level disclosure principles to help banks prepare disclosures covering areas or activities that warrant particular attention or that are under stress. Assessment of 2008 Pillar 3 disclosures. CEBS analysed the Pillar 3 disclosures provided by 25 banks relating to a bank's risk profile and capital adequacy. CEBS found that 'banks have notably enhanced the level of quantitative and qualitative information regarding credit risk and securitisation activities; however there are specific areas where further improvements could be made': the composition and characteristics of own funds the back testing information for credit risk and market risk the quantitative information on credit risk mitigations and counterparty credit risk the granularity of information on securitisations Click to download: CEBS Study of Banks' 2008 Annual Report Disclosures (PDF 178k) CEBS Study of Banks' Pillar 3 Disclosures (PDF 178k)

25 June 2009: Two new Deloitte IFRS publications in Spanish

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Estándares Internacionales de Información Financiera: Consideraciones para la Industria Minorista (PDF 1,662k) Spanish version of: International Financial Reporting Standards: Considerations for the Retail Industry (PDF 256k) Boletín de Actualización IAS Plus, Junio 2009: Borrador para discusión pública propone orientación ampliada sobre la medición hecha a valor razonable (PDF 23k) Spanish version of: IAS Plus Update Newsletter, June 2009: Exposure draft proposes expanded guidance on fair value measurement (PDF 71k) You will find our resources in Spanish Here.

25 June 2009: Insurance working group meets next week

The IASB's Insurance Working Group will meet on Monday and Tuesday 29 and 30 June 2009 at the Guoman Tower Hotel (Tower 1 Suite), St Katharine's Way, London. The meeting is open to public observation. The agenda is shown below. Agenda papers are Here. Insurance Working Group Agenda 29-30 June 2009, London Monday 29 June (10:00 to 17:00) Introduction Overview of papers for this meeting Project planning Update on other relevant projects IASB and FASB Work Plan Update on Financial Instruments Users' input Measurement Overview Measurement - tabular comparison of the candidates Measurement - key issues on measurement Measurement - measurement approaches for insurance contracts Measurement - the IAS 37 model for insurance contracts Measurement - Current exit price Tuesday 30 June (09:00 to 16:00) Measurement (continued) Presentation and Disclosure Update on IAA activities Acquisition costs Field tests Next steps and wrap up

24 June 2009: Chinese translation of newsletter on fair value measurement

Deloitte China has published the Chinese translation of the IAS Plus Update newsletter Exposure Draft Proposes Expanded Guidance on Fair Value Measurement: Chinese Translation (PDF 175k). Here is the English Version (PDF 71k) You will find links to these and many other IFRS materials in Chinese on our China Page.

24 June 2009: We comment on 13 IFRIC tentative agenda decisions

Deloitte has submitted comments on 13 IFRIC tentative decisions not to add an item to its agenda. In all cases, we agree with IFRIC's proposed decision. In the following two cases we make additional comments or recommendations to the IFRIC staff about how best to explain the reasons for the decision: Meaning of significant and prolonged for the purpose of assessing impairment of financial instruments. Impairment of an investment in an associate. Click to download a ZIP File of Our Letters (ZIP 1,384k).

24 June 2009: IFRS Questions and Answers in Chinese: Volumes 2 and 3

Deloitte & Touche in Taiwan has published the second and third books of a three-volume series IFRS Questions and Answers in Chinese: Volume 2 (220 pages) covers IAS 1, IAS 7, IAS 8, IAS 21, IAS 23, IAS 19, IAS 26, IAS 16, IAS 40, IAS 36 and IFRS 8. Volume 3 (296 pages) covers IAS 11, IAS 17, IAS 24, IAS 33, IAS 34, IAS 41, IFRS 4, IAS 32, IAS 39, IFRS 7, IFRIC 12, IAS 37, IAS 10 and IFRS 1. Volume 1 (214 pages) was released in February 2009 (see our Taiwan Page). It covers IFRS 2, IFRS 3, IFRS 5, IAS 2, IAS 12, IAS 18, IAS 20, IAS 27, IAS 28, IAS 31, and IAS 38. In explaining each Standard, the books include a few examples and condensed analysis of GAAP difference between IFRSs and Republic of China GAAP. You can purchase the books by email to or On Line (Chinese). The Deloitte Taiwan website has a page with More Information on each of the books.

24 June 2009: iGAAP 2009 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained

Deloitte LLP (United Kingdom) has developed iGAAP 2009 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained (Fifth Edition), which has been published by LexisNexis. This publication is the authoritative guide for financial instruments accounting under IFRSs. The 2009 edition expands last year's edition with further interpretations, examples, discussions from the IASB and the IFRIC, and updates on comparisons of IFRSs with US GAAP for financial instruments. It includes updated and extensive guidance on reclassifications, fair valuation in illiquid markets, and the recent amendment to IFRS 7 Improving Disclosures about Financial Instruments. It also includes extracts from 2008 annual reports illustrating the application of IFRS 7. iGAAP 2009 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained (Fifth Edition) (992 pages, June 2009) can be purchased through www.lexisnexis.co.uk/deloitte. You will find a permanent link to this and many other Deloitte IFRS publications on our IFRS Publications Page.

23 June 2009: Analyst Representative Group will meet 24 June 2009

The IASB will meet with the Analyst Representative Group on Wednesday, 24 June 2009, 9:30am to 4:30pm at the IASB Offices, 30 Cannon Street, London. The meeting is open to public observation. Topics on the agenda are: Work plan update Financial statement presentation Cash flows Derecognition Financial instruments Revenue recognition

23 June 2009: IASB proposes guidance on 'management commentary'

The IASB has issued an exposure draft (ED) of proposed non-mandatory guidance for preparing and presenting a 'management commentary' – sometimes called 'management's discussion and analysis' or 'operating and financial review'. In a management commentary, which normally accompanies but is not part of the financial statements, management explains how the entity's financial position, financial performance and cash flows relate to management's objectives and its strategies for achieving those objectives. The proposals in the ED draw on international best practice in the preparation and presentation of management commentary. The IASB believes that providing non-mandatory guidance will improve the consistency and the comparability of management commentary across jurisdictions. The ED Management Commentary is open for comment until 1 March 2010. Click for IASB Press Release (PDF 97k). Here is the IAS Plus Project Page.

23 June 2009: IASB webcasts on fair value measurement ED

On Tuesday 30 June 2009, the IASB will host two live webcasts to introduce its 28 May 2009 exposure draft Fair Value Measurement. The ED proposes guidance on how fair value should be measured where it is required by existing standards. It does not propose to extend the use of fair value measurements in any way. It would add disclosure requirements about how fair values were determined. The proposed definition of fair value (FV) is identical to the definition in US FASB Statement 157, and the supporting guidance is also largely consistent with US GAAP. Comment deadline is 28 September 2009. The webcasts will include presentations followed by a Q&A session where registered participants can send in questions for the IASB staff to answer. Each webcast, including the question and answer session, is expected to last around one hour. Details of the webcasts: Webcast Topic: Exposure Draft on Fair Value Measurement Date: Tuesday, 30 June 2009 Times: 9:30am (London time) and again at 3:30pm (London time) Presenters: Stephen Cooper, Member of the Board; Hilary Eastman, Project Manager; and Henri Venter, Assistant Project Manager, Project Page on IASB Website – with links to register for the webcast Project Page on IAS Plus

23 June 2009: IASCF publishes its 2008 annual report

The International Accounting Standards Committee Foundation (IASCF), under which the IASB operates, has published its annual report for 2008. The report includes a comprehensive account of the activities of the IASCF and the IASB during 2008, as well as audited financial statements and details on the funding of the organisation. Here is the link to Download from the IASB's Website.

22 June 2009: IASCF plans round-tables for Constitution Review Part Two

The Trustees of the IASC Foundation have today announced the following dates for public round-table discussions relating to the second part of the 2009 Constitution Review: London, 9 September 2009 New York, 6 October 2009 Tokyo, 21 October 2009 The purpose of the round-table discussions is to provide another way, in addition to the formal comment processes, to seek a range of views from interested parties about possible changes to the IASC Foundation's Constitution. The IASC Foundation will post the relevant discussion document at a later date. Part One of the constitution review, concluded in January 2009, resulted in formation of an IASCF Monitoring Board and expansion of the IASB from 14 to 16 members. Issues being addressed in Part Two of the review include: whether the section of the constitution dealing with governance of the Foundation, which now mentions only the IASCF, should also refer to the new Monitoring Board adopted under part 1 of the Constitution Review geographical mix of Trustees effectiveness of Trustee oversight activities funding arrangements the IASB's agenda-setting procedures the IASB's existing due process procedures the possible need for 'fast track' due process procedures principles-based approach to standards whether the IASB should set standards for not-for-profit entities and the public sector procedures and composition of the Standards Advisory Council

22 June 2009: Deloitte podcast – move toward IFRSs in the US

The global financial crisis is having an enormous impact on the effort to standardize accounting rules worldwide. Political pressure on the IASB and on the US Financial Accounting Standards Board is encouraging both bodies to publish one-off changes to accounting rules that may show short-term action in the face of economic downturn but are likely to make it harder to bring the two systems into conformity. A recent Deloitte podcast features Jeffrey K Willemain, DTT Global Managing Partner – Regulatory & Risk, as he addresses the following questions: What are some of the pressures facing the two accounting bodies? How do accounting rules differ in the US and Europe? Where do emerging markets and the BRIC (Brazil, Russia, India, and China) countries stand in the debate? Will the US eventually sign on to International Financial Accounting Standards? How will the new administration in Washington influence the debate on accounting standards? "In some respects, the United States is all alone.... The rest of the world is not adopting US GAAP so the United States will need to convert over time. We will get there. I'm convinced of that." Click to Access the Podcast.

22 June 2009: Agenda project pages updated

We have updated the following pages on IAS Plus to reflect the discussions and decisions at the IASB's regular June 2009 meeting and the two special meetings on 1 June and 5 June 2009: Annual Improvements 2009-2010 Conceptual Framework Phase C – Measurement Financial Instruments: Replacement of IAS 39 Financial Instruments with Characteristics of Equity Insurance Contracts Joint Ventures Leases Liabilities – Amendments to IAS 37 Rate-regulated Activities Revenue Recognition

22 June 2009: Guide to IFRS 8 Operating Segments in Polish

Deloitte Poland has published MSSF 8 Segmenty operacyjne – Przewodnik po Standardzie (PDF 1,205k), a Polish language guide to IFRS 8 Operating Segments. The publication presents key principles related to implementation and adoption of IFRS 8, with numerous examples of application of individual issues covered by the standard, as well as sample forms of presentation of data about operating segments. IFRS 8 has replaced IAS 14 Segment Reporting effective 1 January 2009. More Deloitte resources in Polish are Here.

22 June 2009: EITF Snapshot for June 2009

We have posted the June 2009 edition of EITF Snapshot (PDF 131k) summarising the 18 June 2009 meeting of FASB's Emerging Issues Task Force. EITF Snapshot, published by Deloitte & Touche LLP (USA), enables readers to identify relevant topics and to understand quickly the meeting's outcome. Past issues can be downloaded Here. This EITF Snapshot covers the following issue discussed by the EITF at the meeting: Issue 08-1 Revenue Arrangements With Multiple Deliverables – Consensus-for-exposure Issue 08-9 Milestone Method of Revenue Recognition – Tentative conclusions reached Issue 09-1 Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance – Final consensus Issue 09-2 Research and Development Assets Acquired in an Asset Acquisition – No consensus reached. Further deliberations are expected at a future EITF meeting Issue 09-3 Applicability of SOP 97-2 to Certain Arrangements That Include Software Elements – Consensus-for-exposure Issue 09-4 Seller Accounting for Contingent Consideration – No decision reached. Further deliberations are expected at a future EITF meeting Initial EITF consensuses (known as 'consensuses-for-exposure') are exposed for a comment period after ratification by the FASB. At its first scheduled meeting after the comment period, the EITF considers comments received and, as warranted, affirms its consensuses-for-exposure as final consensuses. Those consensuses are then provided to the Board for final ratification.

22 June 2009: Deloitte IFRS publication in Spanish

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín de presentación de reportes en los Estados Unidos para compañías que no tienen sede en los Estados Unidos – Edición de Febrero 2009 (PDF 332k) Spanish version of: US Reporting Newsletter for Non-US Based Companies – February 2009 (PDF 241k) We have many resources in Spanish Here.

21 June: Deloitte comments on revenue recognition

Deloitte's IFRS Global Office has submitted to the IASB a Letter of Comment on the IASB-FASB Discussion Paper: Preliminary Views on Revenue Recognition in Contracts with Customers (PDF 179k). Our overall view is that because the discussion paper defers, to a future phase of the project, many of the fundamental issues that need to be resolved in this project, it is difficult to reach a decision on the appropriateness of the approach taken in the discussion paper. An excerpt from our letter: Although, for the most part, we do not disagree with the material set out in the discussion paper, most of the fundamental issues (in particular, to use old terminology, the approach to multiple element arrangements and the distinction between goods and services) will need to be addressed at the next stage of the project. The decisions made at that stage will be critical to the development of a Standard, and, accordingly, it is only at that stage that we will be able to assess whether we support the approach being taken by the boards; at this point, it is too soon to tell. We support the overall objective of creating a single revenue recognition principle, though we acknowledge that there are significant challenges to such an approach. We would, however, emphasise the importance that we attach to a robust and coherent Standard on revenue recognition. This is a very important aspect of financial reporting, with many challenging issues, and it is essential that a Standard strikes the right balance between, on the one hand, being too high-level (which could create a significant level of diversity in practice for otherwise similar arrangements) and, on the other hand, being too rules-based. With that in mind, we think it is essential that a Standard sets out broad and clear principles, expressed in language that is meaningful to users, which are then reflected in practical guidance for goods, services, and other areas as appropriate. Much work has been done to address difficult revenue recognition issues over the years, both in IFRSs and in other GAAPs. Although those solutions have been developed piecemeal, and they may not all be compatible, many of the underlying principles have proven resilient and helpful. Accordingly, we urge the boards to consider the best of that existing material when moving to the next stage of the project, with the aim of preserving the best aspects of existing GAAPs to the extent that those aspects are compatible with the DP's proposals. Click for: Information about the Discussion Paper Past Deloitte Comment Letters to the IASB

21 June 2009: Notes from last day of the June IASB meeting

The IASB is holding its regular monthly Board meeting on 15-19 June 2009 at its offices in London. The meeting is open to public observation and is being webcast. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The Board will also meet with the Standards Advisory Council on 22-23 June 2009.

19 June 2009: IASB amends IFRS 2, withdraws IFRICs 8 and 11

The IASB has issued amendments to IFRS 2 Share-based Payment that clarify the accounting for group cash-settled share-based payment transactions. The amendments clarify how an individual subsidiary in a group should account for some share-based payment arrangements in its own financial statements. In these arrangements, the subsidiary receives goods or services from employees or suppliers but its parent or another entity in the group must pay those suppliers. The amendments make clear that: An entity that receives goods or services in a share-based payment arrangement must account for those goods or services no matter which entity in the group settles the transaction, and no matter whether the transaction is settled in shares or cash. In IFRS 2 a 'group' has the same meaning as in IAS 27 Consolidated and Separate Financial Statements, that is, it includes only a parent and its subsidiaries. The amendments to IFRS 2 also incorporate guidance previously included in IFRIC 8 Scope of IFRS 2 and IFRIC 11 IFRS 2–Group and Treasury Share Transactions. As a result, the IASB has withdrawn IFRIC 8 and IFRIC 11. The amendments are effective for annual periods beginning on or after 1 January 2010 and must be applied retrospectively. Earlier application is permitted. Click for IASB Press Release (PDF 103k).

19 June 2009: Deloitte IFRS publications in Spanish

Deloitte (Colombia) has published the Spanish translations of the following IFRS publications: Boletín de Actualización IAS Plus, Abril 2009: Cambios propuestos a la contabilidad de los impuestos a los ingresos (PDF 31k) Spanish version of: IAS Plus Update Newsletter, April 2009: Changes proposed for income tax accounting (PDF 103k) Boletín de presentación de reportes en los Estados Unidos para compañías que no tienen sede en los Estados Unidos – Edición de Marzo-Abril de 2009 (PDF 390k) Spanish version of: US Reporting Newsletter for Non-US Based Companies – March-April 2009 (PDF 243k) We have many resources in Spanish Here.

19 June 2009: Notes from day 4 of the June IASB meeting

The IASB is holding its regular monthly Board meeting on 15-19 June 2009 at its offices in London. The meeting is open to public observation and is being webcast. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The Board will also meet with the Standards Advisory Council on 22-23 June 2009.

18 June 2009: Additional IASB webcasts on IAS 39 project

On Tuesday 23 June 2009, the IASB will host two live webcasts to keep interested parties up to date on progress of the IASB's comprehensive project to replace IAS 39. The webcasts will focus on the Board's discussion of the project at this week's Board meeting. The webcasts will include presentations by two IASB project staff people followed by a Q&A session where registered participants can send in questions for the IASB staff to answer. Each webcast, including the question and answer session, is expected to last around one hour. Details of the webcasts: Webcast Topic: Project to comprehensively review IAS 39 Date: Tuesday, 23 June 2009 Times: 10:00am (London time) and again at 4:00pm (London time) Presenters: Gavin Francis, IASB Director of Capital Markets, and Sue Lloyd, Senior Technical Consultant More Information and Registration Project Page on IASB Website Project Page on IAS Plus

18 June 2009: Agenda for 22-23 June 2009 SAC meeting

The International Accounting Standards Board will meet with the Standards Advisory Council (SAC) on Monday and Tuesday, 22 and 23 June 2009, at the Renaissance Chancery Court Hotel, 252 High Holborn, London. The meeting will be open to public observation all day Monday and Tuesday morning. The agenda is presented below. Standards Advisory Council Meeting Agenda 22-23 June 2009, London Monday 22 June 2009 Opening remarks Consistency of application of IFRSs Overview of last four months IASB Activities Financial Crisis Convergence Projects Other activities SAC Member activities IASB priorities Financial Instruments How should the IASB respond to urgent matters? Tuesday 23 June 2009 (morning only) Financial Instruments - continued Financial statement presentation and other comprehensive income Constitutional Review (Part 2)

18 June 2009: IASB discussion paper on 'own credit risk'

The IASB has published a discussion paper on the role of an entity's own credit risk in liability measurement. The discussion paper (DP/2009/2 Credit Risk in Liability Measurement) is accompanied by a staff paper that describes the most common arguments for and against including credit risk in measuring liabilities. The paper notes that IFRSs require profit or loss resulting from changes in 'own credit' to be booked when debt is fair valued, but that some see the outcome as counter-intuitive (gains recognised in the face of deteriorating credit). The discussion paper addresses this concern and examines bases for liability measurement other than fair value. The issue of 'own credit risk' has relevance to a range of IASB projects, in particular in the accounting for financial instruments, insurance, fair value measurement, and provisions, contingent liabilities and contingent assets. Comments are due by 1 September 2009. Click for IASB Press Release (PDF 98k).

18 June 2009: Notes from day 3 of the June IASB meeting

The IASB is holding its regular monthly Board meeting on 15-19 June 2009 at its offices in London. The meeting is open to public observation and is being webcast. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The Board will also meet with the Standards Advisory Council on 22-23 June 2009.

18 June 2009: US regulatory reform plan includes accounting

US President Obama has released a Comprehensive Regulatory Reform Plan (PDF 2,211k) 'to modernise and protect the integrity of our financial system'. The plan includes a number of accounting proposals. The President's plan will: Require that all financial firms that pose a significant risk to the financial system at large are subjected to strong consolidated supervision and regulation Increase market discipline and transparency to make our markets strong enough to withstand system-wide stress and the potential failure of one or more large financial institutions Rebuild trust in our markets by creating the Consumer Financial Protection Agency to focus exclusively on protecting consumers in credit, savings, and payment markets Provide the government with the tools needed to manage financial crises so it is not forced to choose between bailouts and financial collapse Raise international regulatory standards and improve international coordination Accounting issues are addressed as part of the recommendations for strengthening capital and other prudential standards for all banks and bank holding companies. The overall accounting recommendation in this area is: The accounting standard setters – the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), and the SEC – should review accounting standards to determine how financial firms should be required to employ more forward-looking loan loss provisioning practices that incorporate a broader range of available credit information. Fair value accounting rules also should be reviewed with the goal of identifying changes that could provide users of financial reports with both fair value information and greater transparency regarding the cash flows management expects to receive by holding investments. Certain aspects of accounting standards have had procyclical tendencies, meaning that they have tended to amplify business cycles. For example, during good times, loan loss reserves tend to decline because recent historical losses are low. In determining their loan loss reserves, firms should be required to be more forward-looking and consider factors that would cause loan losses to differ from recent historical experience. This would likely result in recognition of higher provisions earlier in the credit cycle. During the current crisis, such earlier loss recognition could have reduced procyclicality, while still providing necessary transparency to users of financial reports on changes in credit trends. Similarly, the interpretation and application of fair value accounting standards during the crisis raised significant procyclicality concerns. Also, as part of the proposals for raising international regulatory standards and improving regulatory cooperation, the report recommends: Improve Accounting Standards 1. We recommend that the accounting standard setters clarify and make consistent the application of fair value accounting standards, including the impairment of financial instruments, by the end of 2009. The G-20 Leaders directed the accounting standard setters to improve the standards for the valuation of financial instruments and to reduce the complexity of financial instrument accounting. The International Accounting Standards Board (IASB) undertook a project to develop by July 2009 a new financial measurement standard that would replace International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement, the fair value measurement standard under International Financial Reporting Standards (IFRS), and reduce the complexity of accounting standards. In addition, the Financial Accounting Standards Board (FASB) and IASB have provided additional guidance on fair value measurement. The standard setters are also evaluating the recommendations provided by the Financial Crisis Advisory Group ('FCAG'), a high level advisory group that standard setters established in December 2008. In response to FASB's recent changes to its impairment standard for debt securities, the IASB has committed to making improvements to its own impairment requirements as part of its comprehensive financial instrument project, slated for an exposure draft by October 2009. Moreover, the IASB has also committed to work with FASB as part of its comprehensive financial instrument project to promote global consistency in impairment approaches. 2. We recommend that the accounting standard setters improve accounting standards for loan loss provisioning by the end of 2009 that would make it more forward looking, as long as the transparency of financial statements is not compromised. In its April 2009 report addressing procyclicality in the financial system, the FSB determined that earlier recognition of loan losses by financial firms could have reduced the procyclical effect of write-downs in the current crisis. The FSB recommended that the accounting standard setters issue a statement that the current incurred loss approach to loan loss provisions allows for more judgment than banks currently exercise. The FSB also recommended that the accounting standard setters give consideration to alternative conceptual approaches to loan loss recognition, such as a fair value model, an expected loss model, and dynamic provisioning. As directed by the FSB and G-20 Leaders, accounting standard setters continue to evaluate the issue of loan loss provisioning, including developing an expected loss model to replace the current incurred loss model. 3. We recommend that the accounting standard setters make substantial progress by the end of 2009 toward development of a single set of high quality global accounting standards. The G-20 Leaders agreed that the accounting standard setters should make substantial progress toward a single set of high quality global accounting standards by the end of 2009. The IASB and FASB have engaged in extensive efforts to converge IFRS and U.S. Generally Accepted Accounting Principles (GAAP) to minimize or eliminate differences in the two sets of accounting standards. Last year, the IASB and FASB reiterated their objective of achieving broad convergence of IFRS and U.S. GAAP by the end of 2010, which is a necessary precondition under the SEC's proposed roadmap to adopt IFRS. Currently, the SEC is considering comments submitted on its proposed roadmap that sets forth several milestones that could lead to the eventual use of IFRS by all U.S. issuers.

18 June 2009: Notes from day 2 of the June IASB meeting

The IASB is holding its regular monthly Board meeting on 15-19 June 2009 at its offices in London. The meeting is open to public observation and is being webcast. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the second day of the meeting. The Board will also meet with the Standards Advisory Council on 22-23 June 2009.

17 June 2009: Two ways to subscribe to FASB's new Codification

The US Financial Accounting Standards Board has announced that subscriptions to its new standards Codification, which takes effect 1 July 2009, are available in two ways: Professional View, which provides topically organised access to all authoritative nongovernmental US GAAP, including relevant SEC content, with a wide range of supporting utilities including text searching, cross-references, and access to previous versions of content. Annual subscription is US$850 for a single concurrent use. Basic View, which provides topically organised access to all authoritative nongovernmental US GAAP, including relevant SEC content, with limited supporting utilities. Available at no charge. The Codification is an online research system representing the single source of authoritative nongovernmental US GAAP. Click for More Information (PDF 114k). A four-volume bound edition of the FASB Codification is expected to be available by the end of August 2009 – pricing not yet determined. On Monday, 22 June 2009, from 2:00 pm to 3:00 pm (US EDT), FASB will conduct a Webcast on transitioning to the Codification.

17 June 2009: Two Heads Up newsletters on off-balance sheet items

Deloitte United States has published two issues of Heads Up discussing the FASB's recently issued Statements No 166 Accounting for Transfers of Financial Assets, and No 167 Amendments to FASB Interpretation No. 46(R). Statement 166 amends the derecognition guidance in Statement 140 and eliminates the exemption from consolidation for qualifying special-purpose entities. Statement 167 amends the consolidation guidance applicable to variable interest entities. The IASB is addressing similar issues in its Derecognition and Consolidation projects. Click to download: FASB Issues New Standard on Transfers of Financial Assets (PDF 112k) FASB Amends the Consolidation Guidance Related to Variable Interest Entities (PDF 134k)

16 June 2009: Comment deadline reminder – revenue recognition DP

We remind you that comments are due on 19 June 2009 on the Discussion Paper (DP): Preliminary Views on Revenue Recognition in Contracts with Customers. The DP was issued jointly by the IASB and the US FASB on 19 December 2008. The DP proposes a single, contract-based revenue recognition model. The model would apply broadly to contracts with customers, although contracts in the areas of financial instruments, insurance, and leasing may be excluded. Under the proposed model, revenue would be recognised when a contract asset increases or a contract liability decreases (or some combination of the two). That occurs when an entity performs by satisfying an obligation in the contract.

16 June 2009: Notes from day 1 of the June IASB meeting

The IASB is holding its regular monthly Board meeting on 15-19 June 2009 at its offices in London. The meeting is open to public observation and is being webcast. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the first day of the meeting. The Board will also meet with the Standards Advisory Council on 22-23 June 2009.

15 June 2009: 9 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 12 June 2009 (PDF 130k). The following were endorsed for use in Europe on 12 June 2009: IFRS 3 Business Combinations (2008) IAS 27 Consolidated and Separate Financial Statements (2008) The following 9 IASB pronouncements are awaiting European Commission endorsement for use in Europe: Standards IFRS 1 First-time Adoption of IFRS – Restructured standard (2008) Interpretations IFRIC 15 Agreements for the Construction of Real Estate IFRIC 17 Distributions of Non-cash Assets to Owners IFRIC 18 Transfers of Assets from Customers Amendments IAS 39 Amendments for Eligible Hedged Items IAS 39 Amendments for Reclassification of Financial Assets IFRS 7 Amendment – Improving Disclosures About Financial Instruments IFRIC 9 and IAS 39 Amendment – Embedded Derivatives Improvements to IFRSs (Issued 16 April 2009)

14 June 2009: G8 agree on a set of financial regulatory principles

Meeting in Lecce, Italy on 12-13 June 2009, the Group of Eight (G8) finance ministers agreed on a set of common principles and standards for propriety, integrity and transparency aimed at stabilising the world's financial markets. The principles are referred to as the Lecce Framework. The Framework provides a direction to build on existing initiatives, to identify and fill regulatory gaps and to foster the broad international consensus needed for rapid implementation. Specific issues covered by the framework include executive compensation, regulation of systemically important institutions, credit rating agencies, accounting standards, the cross-border exchange of information, bribery, tax havens, non-cooperative jurisdictions, money laundering and the financing of terrorism, and the quality and dissemination of economic and financial data. The G8 countries are Canada, France, Germany, Italy, Japan, United Kingdom, United States, and Russia. Click for G8 Finance Ministers' Statement (PDF 33k).

13 June 2009: Japan moves toward requiring IFRSs for listed companies

On 11 June 2009, the Planning and Coordination Committee of the Business Accounting Council (BAC) held a meeting on the application of IFRSs in Japan. The BAC is an advisory body on accounting matters to the Financial Services Agency of Japan. At the meeting, the BAC Committee approved a draft 'roadmap' toward IFRSs in Japan: Application of International Financial Reporting Standards (IFRS) in Japan (Interim Report) (PDF 78k). Key conclusions in the interim report are: It is appropriate that the optional use of IFRSs as issued by the IASB should be permitted starting in the fiscal year ending in March 2010, in the consolidated financial statements of listed companies whose financial or operational activities are conducted internationally. A decision regarding the mandatory use of IFRSs in consolidated financial statements of all listed companies should be made around 2012, though the timing may be moved back or forward depending on various factors. It is important to ensure a sufficient preparation period of at least three years before the mandatory use starts. Mandatory use would most likely start from 2015 or 2016 if the decision is made in 2012. This Interim Report will be submitted to the plenary meeting of the BAC, expected to take place later this month. Here is the Japan Financial Services Agency Announcement of the BAC Interim Report (PDF 29k).

13 June 2009: IAS Plus Newsletter on fair value measurement

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Exposure Draft Proposes Expanded Guidance on Fair Value Measurement (PDF 71k). The newsletter discusses an Exposure Draft, published by the IASB on 28 May 2009, of proposed guidance on how fair value should be measured where it is required by existing standards. The ED does not propose to extend the use of fair value measurements in any way. It would add disclosure requirements about how fair values were determined. Comment deadline is 28 September 2009. Past issues of all IAS Plus newsletters are Here.

13 June 2009: IFRS insurance accounting newsletter

Deloitte (United Kingdom) has published the fourth edition of its monthly newsletter focussing on the joint IASB and FASB project to develop a new, comprehensive, global financial reporting standard for insurance. This issue focusses on the estimate of insurance cash flows. The IASB plans to publish an exposure draft for comment in the second half of 2009 and a final standard in 2011. This newsletter provides an update on progress being made by the IASB and FASB in their joint project. Click to download Issue 4 of the Insurance Accounting Newsletter (PDF 117k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.

12 June 2009: Los IFRS en su Bolsillo 2009

Deloitte (Colombia) has published Los IFRS en su Bolsillo 2009, the Spanish translation of IFRSs in your Pocket 2009. Abordamos el mismo material que ha hecho de esta publicación un favorito mundial: información sobre los antecedentes de la estructura y trabajos de IASB; análisis del uso de los IFRS en el mundo; resúmenes de todos los Estándares e Interpretaciones actuales; y una actualización de los detalles de los proyectos de la agenda de IASB y de IFRIC. Es la guía ideal para las entidades que contemplan moverse hacia los IFRS, así como una actualización para los veteranos que ya reportan según la estructura de los IFRS. Click to download Los IFRS en su Bolsillo 2009 (PDF 643k).

12 June 2009: Guide to interim financial reports (Hong Kong)

Deloitte's Asia-Pacific IFRS Centre of Excellence in Hong Kong has published Interim Financial Reporting in Hong Kong – A guide for the preparation of interim financial reports. This guide is part of a series of publications on the preparation of financial statements in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and the applicable Listing Rules of the Stock Exchange of Hong Kong and the Growth Enterprise Market. Specifically, this guide addresses the content of an interim financial report and the recognition and measurement requirements for interim reporting purposes in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting (which is identical to IAS 34) and the relevant Listing Rules in Hong Kong. In addition, this guide contains illustrative interim financial reports (both half-year and quarterly) that take into account HKFRSs that are effective for periods beginning on or after 1 January 2009. Click to download Interim Financial Reporting in Hong Kong – A guide for the preparation of interim financial reports (PDF 4,367k).

11 June 2009: Deloitte IFRS publications in Spanish

Deloitte (Colombia) has published the Spanish translations of the following IFRS publications: IFRS para los fondos de inversión: Más que sólo contabilidad y presentación de reportes (PDF 279k) Spanish version of: IFRS for Investment Funds: More Than Just Accounting and Reporting (PDF 339k) Los IFRS en las ciencias de la vida: implicaciones amplias (PDF 199k) Spanish version of: IFRS in the Life Sciences: Broad implications (PDF 263k) Boletín Actualización IAS Plus Abril 2009 – Las Juntas emiten puntos de vista preliminares sobre la contabilidad de los arrendamientos (PDF 34k) Spanish Version of: IAS Plus Update April 2009 – Boards Issue Preliminary Views on Lease Accounting (PDF 129k) We have many resources in Spanish Here.

10 June 2009: IASB Chairman meets with ECOFIN

IASB Chairman Sir David Tweedie met yesterday with the Economic and Financial Affairs Council (ECOFIN) of the European Union to discuss how the IASB is responding to issues arising from the financial crisis. He noted that the IASB has focussed its response on three areas identified by the Financial Stability Forum and four issues raised by the European Commission. The Financial Stability Forum's areas are: the application of fair value in illiquid markets. accounting for off-balance sheet items. disclosures related to risk. The four issues raised by the European Commission in the fourth quarter of last year were: the need for guidance about fair value measurement in illiquid markets – guidance has been issued. the desire for clarification regarding whether credit derivative obligations (CDOs) include embedded derivatives to ensure consistency between IFRSs and US GAAP – FASB is working on a clarification that will be in place for 2009 financial reports. the existing impairment rules related to available-for-sale instruments – IASB will issue an exposure draft in July 2009, two-month comment period, final revisions to IAS 39 in place and available for 2009 financial reports. the possibility of reclassification out of the fair value option into other categories – IASB will issue an exposure draft in July 2009, two-month comment period, final revisions to IAS 39 in place and available for 2009 financial reports. The Chairman also noted that the Board is working on other issues relating to the financial crisis, including hedge accounting and provisioning. Click to download Sir David's Statement to ECOFIN (PDF 21k).

9 June 2009: IASCF Monitoring Board statement to G20

The Monitoring Board for the International Accounting Standards Committee Foundation has issued a Statement Regarding Due Process toward Addressing Calls from G-20 Leaders (PDF 45k). An excerpt: We believe that standard setters will be best able to produce high quality standards if they are able to exercise independent judgment relying on their skills, experience and due process, and taking into account the urgency of certain issues and the views of all stakeholders. Therefore, with respect to the steps taken by the IASB, we reiterate that the IASB's due process and transparency in financial reporting are critical to our continued support, as the authorities charged in our jurisdictions with determining accounting standards for use in our capital markets, for IFRS in its role as a global accounting standard.

9 June 2009: Deloitte IFRS newsletter in Spanish

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín Actualización IAS Plus Abril 2009 – Nuevo modelo de des-reconocimiento, propuesto para los instrumentos financieros (PDF 39k) Spanish version of IAS Plus Update April 2009 – New Derecognition Model Proposed for Financial Instruments (PDF 148k) We have many resources in Spanish Here.

9 June 2009: 11 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. IFRIC 16 has now been endorsed, leaving 11 IASB pronouncements awaiting European Commission endorsement for use in Europe. Click to download the Endorsement Status Report as of 8 June 2009 (PDF 132k).

9 June 2009: World Congress 2010 website launched

The 18th World Congress of Accountants will be held from 8 to 11 November 2010 in Kuala Lumpur, Malaysia. Around 5,000 professional accountants, international regulators, standard setters, government officials, corporate leaders, and others are expected to attend. The official website www.wcoa2010kualalumpur.com has now been launched.

8 June 2009: IASB webcasts on IAS 39 replacement project

On Thursday 11 June 2009, the IASB will host two live webcasts to keep interested parties up to date on progress of the IASB's comprehensive project to replace IAS 39. The webcasts will include presentations by two IASB project staff people followed by a Q&A session where registered participants can send in questions for the IASB staff to answer. Each webcast, including the question and answer session, is expected to last around one hour. Details of the webcasts: Webcast Topic: Project to comprehensively review IAS 39 Date: Thursday, 11 June 2009 Times: 10:00am (London time) and again at 3:00pm (London time) Presenters: Gavin Francis, IASB Director of Capital Markets, and Sue Lloyd, Senior Technical Associate More Information and Registration Project Page on IASB Website Project Page on IAS Plus

7 June 2009: Agenda for June 2009 IASB meeting

The IASB will hold its June 2009 regular monthly meeting at its offices in London on Monday to Friday 15-19 June 2009. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. On the afternoon of Monday 15 June and the morning of Tuesday 16 June 2009, the Board will conduct a public roundtable meeting on consolidation and derecognition at the Mermaid Conference Centre in London. Also, the Board will meet with the Standards Advisory Council in London on Monday and Tuesday 22-23 June 2009. IASB Board Meeting Agenda 15-19 June 2009, London Monday 15 June 2009 (afternoon starting 16:30pm) Education session: Provisioning based on expected risk adjusted amortised cost (BNP Paribas representatives) Tuesday 16 June 2009 (afternoon starting 15:45pm) Financial Instruments – Comprehensive project to replace IAS 39 Wednesday 17 June 2009 Liabilities - Amendments to IAS 37 Conceptual Framework - Phase C – Measurement Education session: Bank of Spain representatives will present their loan loss provisioning model Revenue Recognition Thursday 18 June 2009 Joint Ventures Financial Instruments with Characteristics of Equity Insurance Contracts Leases Friday 19 June 2009 Rate-regulated Activities Annual Improvements – four issues: Venture capital consolidations and partial use of fair value through profit or loss Impairment of investments in associates Contingent consideration of an acquiree Accounting for privatisation Sweep issues (if needed) Financial Instruments – Comprehensive project to replace IAS 39

6 June 2009: Notes from special 5 June IASB meeting

The IASB held a special meeting on Friday 5 June 2009 to continue its work on its comprehensive project to replace IAS 39 Financial Instruments: Recognition and Measurement. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

5 June 2009: SIX Swiss Exchange areas of focus for 2009 interim reports

The SIX Swiss Exchange has released its Communiqué 1/2009: Areas of Focus for the Review of 2009 Semi-annual Financial Statements (PDF 56k). Financial reporting issues on which the Exchange intends to focus will be: Valuation of financial instruments (IAS 39) Impairment of assets (IAS 36) Reporting on operating segments (IFRS 8) Application of the provisions on business combinations (IFRS 3 and IAS 27) Presentation of comprehensive income (IAS 1) Nearly three-quarters of the Exchange's listed companies use IFRSs. Further information on financial reporting can be found on the Financial Reporting Section of the Exchange's Website. In addition, the Exchange's Regulatory Board adopted Revised Listing Regulations (PDF 59k) effective 1 July 2009.

5 June 2009: New US SEC Staff Accounting Bulletin

The US Securities and Exchange Commission's Office of the Chief Accountant has published Staff Accounting Bulletin (SAB) No 112 (link to SEC website). SAB 112 updates the codification of previous SABs by removing material no longer necessary because of private-sector developments in US GAAP – most particularly due to the recent FASB standards on business combinations and noncontrolling interest. The SAB also clarifies the basis of accounting for purchased assets and liabilities that should be used when a substantially wholly-owned subsidiary presents separate financial statements. SABs are not official rules of the Commission but, rather, are interpretations and practices followed by the Commission's staff in administering the disclosure requirements of US securities laws. This Page on the SEC Website has links to all Staff Accounting Bulletins still in force.

5 June 2009: Making financial reports less complex and more relevant

The Financial Reporting Council (FRC), the United Kingdom's independent financial reporting regulator, has published a discussion paper arising from its project on reducing complexity in corporate reporting. The paper – titled Louder than Words: Principles and Actions for Making Corporate Reports Less Complex and More Relevant seeks to address growing concerns about the complexity of corporate reporting. The paper recommends eight guiding principles for reducing complexity: four for better communication in reports and four for improving the quality and effectiveness of regulations. The paper also makes five calls for action where the FRC believes further investigation may lead to opportunities for reducing complexity. These are: Cash flow and net debt reporting: could this be better aligned with user needs such as by including a net debt reconciliation? Wholly owned subsidiaries reporting requirements: could we find ways to reduce the reporting burden such as by reducing the filing or disclosure requirements? Cut clutter: could preparers reduce immaterial information (with the support of regulators) that may be undermining the quality of reports? Disclosures: could we overhaul the process for creating disclosures and provide guidance about when they can be deleted as not relevant? IFRSs: could we improve usability through logical organisation and clearer articulation of the desired outcomes for each standard? The FRC is hoping that the discussion paper will lead to debate within the UK and global financial reporting communities. The FRC has invited comments on its paper from a wide range of constituents by 30 October 2009. Click to download (copyright FRC and posted on IAS Plus with their kind permission): Louder than Words: Full Report (PDF 294k) Executive Summary (PDF 160k)

4 June 2009: Heads Up on 'subsequent events'

Deloitte United States has published a Heads Up newsletter discussing the recently issued FASB Statement 165 Subsequent Events, which provides guidance on management's assessment of events occurring after the reporting date. FAS 165 does not address all differences between US GAAP and IAS 10 Events after the Reporting Period. Differences remain, for instance, in the areas of refinancing short-term obligations and curing violations of borrowing covenants. Click to Download the Heads Up Newsletter (PDF 166k).

4 June 2009: FASB Codification will take effect 1 July

The US Financial Accounting Standards Board has voted to approve the FASB Accounting Standards Codification as the single source of authoritative nongovernmental US Generally Accepted Accounting Principles as of 1 July 2009. The Codification will be effective for interim and annual periods ending after 15 September 2009, which means that preparers must begin to use the Codification for periods that begin on or about 1 July 2009. All existing accounting standard documents are superseded. All other accounting literature not included in the Codification will be considered nonauthoritative. The Codification includes the following former literature: Financial Accounting Standards Board (FASB) Statements (FAS) Interpretations (FIN) Technical Bulletins (FTB) Staff Positions (FSP) Staff Implementation Guides (Q&A) Emerging Issues Task Force (EITF) Abstracts Appendix D Topics Derivative Implementation Group (DIG) Issues Accounting Principles Board (APB) Opinions Accounting Research Bulletins (ARB) Accounting Interpretations (AIN) American Institute of Certified Public Accountants (AICPA) Statements of Position (SOP) Audit and Accounting Guides (AAG)-only incremental accounting guidance Practice Bulletins (PB) Technical Inquiry Service (TIS)-only for Software Revenue Recognition. Click for FASB News Release (PDF 92k).

4 June 2009: Chinese translation of newsletter on income tax ED

Deloitte China has published the Chinese translation of the IAS Plus Update newsletter Changes Proposed for Income Tax Accounting: Chinese Translation (PDF 219k). Here is the English Version (PDF 103k) You will find links to these and many other IFRS materials in Chinese on our China Page.

3 June 2009: 12 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 28 May 2009 (PDF 131k). There are currently 12 IASB pronouncements awaiting European Commission endorsement for use in Europe, as follows: Standards IFRS 1 First-time Adoption of IFRS – Restructured standard (2008) IFRS 3 Business Combinations (2008) Interpretations IFRIC 15 Agreements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in a Foreign Operation IFRIC 17 Distributions of Non-cash Assets to Owners IFRIC 18 Transfers of Assets from Customers Amendments IAS 27 Consolidated and Separate Financial Statements (2008) IAS 39 Amendments for Eligible Hedged Items IAS 39 Amendments for Reclassification of Financial Assets IFRS 7 Amendment – Improving Disclosures About Financial Instruments IFRIC 9 and IAS 39 Amendment – Embedded Derivatives Improvements to IFRSs (Issued 16 April 2009) EFRAG's prognosis is that only three of these will be endorsed before their effective dates.

3 June 2009: Four recent IFRS Insights newsletters

We have posted four recent IFRS Insights newsletters from Deloitte & Touche LLP (United States). IFRS Insights provides news on the latest developments on IFRSs, practical suggestions for companies addressing IFRSs, updates on the regulatory environment, and references to relevant tools and resources. Below are the download links and key features of the four new editions. We have Permanent Links to all IFRS Insights on our USA country page. IFRS Insights Volume 10 (April-May 2009) (PDF 314k) A feature about the Securities and Exchange Commission's proposed IFRS roadmap An article about IFRS and tax considerations related to share-based compensation plans A brief overview of IAS 17 Leases Preview of results from a recent IFRS poll IFRS Insights Volume 9 (March 2009) (PDF 331k) A feature on some lessons learned by companies implementing IFRS An article discussing IFRS considerations for audit committees A brief overview of International Accounting Standard (IAS) 38, Accounting for Intangible Assets A preview of survey results about recent IFRS trends IFRS Insights Volume 8 (February 2009) (PDF 604k) A feature on the latest IFRS developments, including the revised Securities and Exchange Commission (SEC) comment deadline for the proposed IFRS roadmap An article discussing IFRS and human resources issues A brief overview of International Accounting Standard (IAS) 37 Featured polling results about private companies and IFRS IFRS Insights Volume 7 (January 2009) (PDF 209k) A Q&A with Sir David Tweedie, the chairman of the International Accounting Standards Board (IASB) An article about IFRS and state taxes A brief overview of International Accounting Standard (IAS) 36 Impairment of Assets Featured results from a recent IFRS poll

3 June 2009: Special IASB meeting on 5 June

The IASB will hold a special Board meeting on Friday, 5 June 2009, 13:00 to 15:30 London time, in addition to its regular monthly 15-19 June meeting. As with the special meeting earlier this week on 1 June, the sole agenda topic is the IASB's Comprehensive Financial Instruments Project to develop a replacement for IAS 39. The agenda papers for the 5 June meeting are now available on IASB Website.

3 June 2009: Accounting Roundup – May 2009

We have posted the May 2009 Edition of Accounting Roundup (PDF 311k) 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: Fair Value Measurements FASB Proposes Guidance on Fair Value Measurement of Liabilities IASB Issues Exposure Draft on Fair Value Measurement Business Combinations FASB Issues Statement on Not-for-Profit Mergers and Acquisitions Income Taxes FASB Proposes Guidance on Applying Interpretation 48 to Pass-Through and Tax-Exempt Not-for-Profit Entities Pensions and Other Postemployment Benefits IASB Proposes Amendments to Clarify Accounting for Pension Plan Prepayments Other Accounting FASB Issues Statement on Subsequent Events AICPA Issues Practice Aid on Fair Value Measurement Disclosures for Master Trusts SEC Staff's Views on Filing Registration Statements After the Adoption of Statement 160, FSP APB 14-1, and FSP EITF 03-6-1 Other SEC Matters SEC Proposes Rule Amendments to Increase Safeguards on Investor Funds SEC Issues New Compliance and Disclosure Interpretations Other Auditing CAQ Releases Guide on Public-Company Auditing You will find past issues of Accounting Roundup Here.

2 June 2009: Notes from special 1 June IASB meeting

The IASB held a special meeting on Monday 1 June 2009 to continue its work on its comprehensive project to replace IAS 39 Financial Instruments: Recognition and Measurement. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

1 June 2009: Over 3 million IFRS e-Learning modules downloaded

As of 31 May 2009, 3,164,828 Deloitte IFRS e-learning modules have been downloaded by visitors to IAS Plus. During 2008 alone, 1,070,387 modules were downloaded. Deloitte's IFRS e-learning was launched at the end of January 2004. Many of the downloaded modules have multiple users because organisations are permitted to install them on their own servers for the internal use of their employees or students. These figures do not include modules completed by Deloitte staff, who access the e-Learning on internal networks. You can always access IFRS e-Learning without charge by clicking on the light bulb icon on the IAS Plus home page. Thirty-seven modules are now available and regularly updated. We are making the Deloitte IFRS e-Learning available in the public interest without charge.