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31 October 2009: Deloitte Canada IFRS transition newsletters
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Deloitte Canada has published the October 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:
- Time sensitive considerations before your opening balance sheet date – the IFRS transition date
- 'The Real Deal' – privately held companies
- Omnibus Exposure Draft III – exposing existing IFRSs for incorporation into Canadian GAAP.
- Canadian Securities Administrators Accounting Alerts
- Deloitte Publications and Events
- International Round-up
Click below for:
You will find more information about financial reporting in Canada on our Canada Page.
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31 October 2009: Three IFRS Webinars from SAP and Deloitte
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Deloitte (United States) and SAP have teamed up to offer a series of three Webinars designed to:
- Help companies assess their IFRS readiness
- Discuss the potential impact of IFRS conversion on financial consolidation and reporting
- Explore typical challenges faced by organisations when adopting IFRS and ways to address them
There is no charge, but you must register. The details:
IFRS Consolidations and Financial Reporting
- Date and time: 4 November 2009, 8 a.m. PT/11 a.m. ET
- Presenters: Philip Mugglestone, Director of Solution Marketing, EPM, SAP; Ian Wright, Principal, Deloitte Consulting LLP; Deirdre Ryan, Principal, Deloitte Consulting LLP
- Registration: Click Here
IFRS Adoption Challenges
- Date and time: 11 November 2009, 8 a.m. PT/11 a.m. ET
- Presenters: Tom Yoder, National Practice Lead, IFRS/ERP General Ledger, SAP; Nick Difazio, National Leadership Partner – IFRS, Deloitte & Touche LLP; Ian Wright, Principal, Deloitte Consulting LLP
- Registration: Click Here
IFRS Assessment
- Date and time: October 22, 2009, 8 a.m. PT/11 a.m. ET (This playback is available for 90 days after live broadcast)
- Presenters: Pete Graham, Director, Solution Management, ERP Financials, SAP; Nick Difazio, National Leadership Partner – IFRS, Deloitte & Touche LLP; Glen Feinberg, Principal, Deloitte Consulting LLP
- Registration: Click Here
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30 October 2009: IASB and FASB will meet monthly on convergence
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At an IFRS conference sponsored by the IASC Foundation and the AICPA in New York this week, IASB Chairman Sir David Tweedie and FASB Chairman Robert H Herz announced that the IASB and the FASB have agreed to meet monthly, for at least two days a month, starting in January 2010, to achieve the goal of converging IFRSs and US GAAP to the greatest extent possible by June 2011. The joint meetings are expected to alternate between a video meeting in one month and a face-to-face meeting in the next month.
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30 October 2009: Agenda project pages updated
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We have updated the following pages on IAS Plus to reflect the discussions and decisions at the IASB's joint meeting with the FASB on 26-28 October 2009:
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29 October 2009: Responses to EC review of accounting directives
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The European Commission has published a report on the approximately 100 responses received to the Commission's consultation paper on review of the Accounting Directives: Cutting Accounting Burden for Small Business–Review of the Accounting Directives. Click to Download the Report (PDF 309k).
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For the modernisation and streamlining proposal there was wide support. Creating a separate section of the directive outlining core accounting principles was also supported. Respondents were in favour of retaining prescriptive layouts as a way of increasing comparability and transparency, however a reduction in the detail and number of layouts was commonly suggested, as was a simplification of disclosures in the notes to the accounts. A modernisation of valuation rules was widely supported.
Considerable support was expressed for the idea of following a 'bottom-up' approach to the revised Accounting Directives. This would involve separately setting out all the accounting requirements for small companies first, and adding further separate requirements for both medium and large companies. There was also support for the preparation of cash flow statements by medium and large companies. Respondents also welcomed the ideas of electronic publication and the creation of a common accounting taxonomy.
Respondents had mixed views on the current Member State options allowing preparation of abridged accounts for small and medium-sized companies. Similarly, there was no clear position on whether the separate line items for 'extraordinary items' should be removed from the face of the profit and loss account.
There was little support for reducing the number of company categories or for a possible publication exemption for small companies. However, there was general satisfaction with current size criteria and threshold levels. A radical simplification proposal to require only key accounting figures from small companies was also met with scepticism.
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In response to an open-ended invitation to comment on the long-term role of the Directives, commentators made the following comments about IFRSs:
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There were 29 suggestions for closer alignment with IFRSs whilst 9 respondents were against such an approach.
On the question of IFRS for SMEs 20 respondents expressed support for it, commenting that as European medium-sized and large companies expand their cross-border activity there is an increasing need for a standardised financial reporting language. They argued that comparability is not possible under the current Accounting Directives due to Member State options and 'gold-plating'. Others (12 responses) saw the IFRS for SMEs as burdensome and inappropriate for EU SMEs. They questioned its usefulness in calculating tax liabilities and distributable
profits.
Some said that the Accounting Directives should be a real alternative to IFRS and should therefore be more prescriptive and detailed. They thought that creditor protection should remain the fundamental principle and the Accounting Directives should focus on private companies' user needs. They were also in favour of increased harmonisation within the Directive, which they argued, could be achieved by eliminating the numerous current options.
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29 October 2009: Review of narrative reporting in the UK
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The United Kingdom Accounting Standards Board (ASB) has published Rising to the Challenge, the report of its review of the narrative reporting of 50 UK listed companies in 2008 and 2009. The review focused on:
- how companies are complying with the enhanced business review content requirements from the Companies Act 2006 (CA);
- effective communication and presentation of the required content; and
- areas that are leading to clutter in narrative reporting.
The review found that most companies are providing a good standard of information in their financial reviews, the description of objectives and strategies, and the provision of financial key performance indicators (KPIs). However, there are significant opportunities for improvement in the reporting of principal risks, trends and factors, contractual and other arrangements, and non-financial KPIs. Click to download:
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29 October 2009: Notes from joint IASB-FASB meeting day 3
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The IASB and the US Financial Accounting Standards Board are holding a joint meeting at the FASB's offices in Norwalk, Connecticut USA, Monday to Wednesday 26-28 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
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28 October 2009: Notes from joint IASB-FASB meeting day 2
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The IASB and the US Financial Accounting Standards Board are holding a joint meeting at the FASB's offices in Norwalk, Connecticut USA, Monday to Wednesday 26-28 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
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28 October 2009: Investment property under construction
28 October 2009: Heads Up on financial instruments
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Deloitte United States has published a Heads Up Newsletter (PDF 173k) titled
An Update on the FASB's and IASB's Joint Project on Financial Instruments. This 20-page newsletter provides a comprehensive overview of the FASB's and IASB's approaches to changing the accounting for financial instruments reflecting the joint Board meeting discussion on 26 October 2009. Both boards expect to finalise their new accounting standards for financial instruments sometime in 2010. An excerpt from the newsletter:
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The changes being contemplated by the two boards suggest that entities will soon need to prepare for radical changes to the manner in which they account for a wide range of financial instruments, including investments in debt and equity securities, loans, trade receivables, trade payables, interests in hybrid financial contracts, and an entity's own issued debt. While the changes will have the biggest impact for heavy users of financial instruments, such as banks, insurance companies, and other entities in the financial services industry, virtually no industry will be untouched. The changes affect how entities recognise, classify, and measure financial assets and financial liabilities; how they recognise and measure impairment of loans, receivables, and other financial assets; and how they apply hedge accounting to their derivative and hedging activities.
Currently, the two boards' approaches differ in important respects. For instance, the FASB's proposed approach calls for more fair value measurements than both current US GAAP and IFRSs, whereas the IASB's proposed approach retains a mixed-measurement
attribute model that is more similar to current US GAAP and IFRSs, but prescribes different criteria for amortised cost measurements. In addition, the two boards' approaches to recognising and measuring credit losses differ.
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28 October 2009: Deloitte IFRS newsletter in Spanish
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Deloitte (Colombia) has published the Spanish translation of the following IFRS publication:
You will find our resources in Spanish Here.
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28 October 2009: Model IFRS financial statements for 2009
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We have posted Deloitte's final model IFRS financial statements for the year ended 31 December 2009. (Several weeks ago we had posted a preliminary, unformatted MS Word version.) These statements illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) by an entity that is not a first-time adopter 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.
You can always find links on our Model Financial Statements Page.
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27 October 2009: Notes from joint IASB-FASB meeting day 1
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The IASB and the US Financial Accounting Standards Board are holding a joint meeting at the FASB's offices in Norwalk, Connecticut USA, Monday to Wednesday 26-28 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
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27 October 2009: Deloitte IFRS newsletter in Spanish
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Deloitte (Colombia) has published the Spanish translation of the following IFRS publication:
We have many resources in Spanish Here.
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27 October 2009: Joint ARG and GPF meeting with IASB
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On Tuesday 10 November 2009, representatives of the IASB will meet with the Analyst Representative Group and the Global Preparers Forum at the offices of the IASB. The meeting will be open to public observation.
- The IASB's Analyst Representative Group (ARG) is a group of professional financial analysts who meet with five members of the IASB to provide the views of professional investors on financial reporting issues.
- The IASB's Global Preparers Forum (GPF) is a group of representatives of companies that use IFRSs. The GPF provides input into concepts and proposals that the IASB is developing and offers advice to the IASB on the practical implications of its intended proposals for preparers of financial statements.
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26 October 2009: Agenda for 5-6 November 2009 IFRIC meeting
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The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 5 and 6 November 2009 (morning only on 6 November). The meeting is open to the public and will be webcast. The tentative agenda is shown below.
Agenda for the IFRIC Meeting
Thursday and Friday, 5 and 6 November 2009 |
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Thursday 5 November 2009 (10:00-17:30h)
- Introduction
- IAS 16 Property, Plant and Equipment – Accounting for stripping costs in the production phase (will also be discussed 6 November)
- IAS 32 – Debt to Equity Swap IFRIC D25 – Comment letter analysis (Agenda Paper 3)
- Review of Tentative Agenda Decisions published in September 2009 IFRIC Update
- IAS 23 Borrowing Costs – Meaning of 'general borrowings'
- IFRS 5 – Write down of a disposal group
- IFRS 3 Business Combinations – Measurement of NCI
- IFRS 3 Business Combinations – Un-replaced and voluntarily replaced share-based payment awards
- Staff Recommendations for Tentative Agenda Decisions
- IAS 39 – Unit of account for forward contracts with volumetric optionality
- IAS 38 Intangible Assets – Amortisation method
- IFRS 2 Share-based Payment – Where manner of settlement is contingent on future events
- IFRS 2 Share-based Payment – Measurements of employee share-based transactions with cash alternatives
- IAS 27 – Presentation of comparatives when applying the 'pooling of interests' method
- IAS 27 – Combined Financial Statements and Redefined Reporting Entities
- IAS 18 Revenue – Receipt of a dividend of treasury shares
- IFRS 4 and IAS 32 – Scope issue for investments in REITs
Friday 6 November 2009 (09:00-11:00h)
- IAS 16 Property, Plant and Equipment – Accounting for stripping costs in the production phase (tentative agenda decision)
- Administrative Session – IFRIC work in progress
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25 October 2009: Agenda project pages updated
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We have updated the following pages on IAS Plus to reflect the discussions and decisions at the IASB's regular October 2009 Board meeting and the special meetings held on 6, 15, and 16 October 2009:
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25 October 2009: Heads Up on software revenue recognition
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Deloitte United States has published a Heads Up Newsletter (PDF 144k) on
Reconfiguring the Scope of Software Revenue Recognition Guidance under US GAAP. Because the number of tangible products that incorporate computing components and software has increased, the way in which revenue is recognised for them has received more scrutiny. For example, questions have arisen about whether entities should account for sales of cell phones, PDAs, copiers, and other similar products that incorporate software as (1) sales of software or (2) sales of tangible products. To address these concerns, the FASB has issued ASU 2009-14 (formerly Issue 09-32), which reflects the consensus of the Emerging Issues Task Force and amends ASC 985-6053 (formerly SOP 97-24) to exclude from its scope certain tangible products that contain software that functions together with nonsoftware deliverables to deliver the tangible product's essential functionality. The ASU does not create any new methods of revenue recognition, but its amendment to the scope of existing guidance can significantly affect an entity's periodic revenue.
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24 October 2009: Notes from day 5 of the October IASB meeting
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The IASB held its regular monthly meeting at its offices in London on Monday to Friday 19-23 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The IASB and the US FASB will also hold a joint Board meeting on 26-28 October 2009 at FASB's offices in Norwalk, Connecticut USA.
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23 October 2009: IASB seeks experts on expected cash flows
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The IASB is forming an expert advisory panel (EAP) to advise the Board on the issues relating to application of the Expected Cash Flow approach (ECF) in measuring impairment of assets. Click for IASB Information Form (PDF 35k). Persons interested in participating should contact the IASB via email (iasb @ iasb.org) by 5 November 2009.
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23 October 2009: Notes from day 4 of the October IASB meeting
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The IASB is holding its regular monthly meeting at its offices in London on Monday to Friday 19-23 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The IASB and the US FASB will also hold a joint Board meeting on 26-28 October 2009 at FASB's offices in Norwalk, Connecticut USA.
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22 October 2009: FASB forms not-for-profit advisory panel
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The Financial Accounting Standards Board (FASB) today announced the establishment of the Not-for-Profit Advisory Committee (NAC). The NAC is intended to serve as a standing resource for the FASB in obtaining input from the not-for-profit sector on existing guidance, current and proposed technical agenda projects, and longer-term issues affecting those organizations. Initially, the NAC will have 12-15 members from the not-for-profit sector. The first meeting of the NAC will take place in the middle of 2010. Click for Press Release (PDF 18k).
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22 October 2009: Notes from day 3 of the October IASB meeting
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The IASB is holding its regular monthly meeting at its offices in London on Monday to Friday 19-23 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The IASB and the US FASB will also hold a joint Board meeting on 26-28 October 2009 at FASB's offices in Norwalk, Connecticut USA.
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21 October 2009: Deloitte will sponsor IFRS 2009/10 conference
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Deloitte will be the main sponsor of IFRS 2009/10 Strategic Direction and Practical Interpretation, a conference that will be held in London on Wednesday 11 November 2009. Speakers at this annual conference include IASB Chairman Sir David Tweedie (opening keynote address and open dialogue) and Deloitte UK partners Ken Wild, Veronica Poole, and Andrew Spooner, and Deloitte UK senior manager Linda Riedel. The agenda includes perspectives on financial reporting from financial analysts, institutional investors, and financial executives; global standards – will the IASB succeed; financial instruments; and IFRSs and regulation. For more information and to view the agenda go to www.iflr.com/ifrs09.
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21 October 2009: Notes from day 2 of the October IASB meeting
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The IASB is holding its regular monthly meeting at its offices in London on Monday to Friday 19-23 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The IASB and the US FASB will also hold a joint Board meeting on 26-28 October 2009 at FASB's offices in Norwalk, Connecticut USA.
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21 October 2009: Deloitte IFRS for SMEs newsletter in Spanish
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Deloitte (Colombia) is publishing a series of Spanish language bulletins about the new IFRS for SMEs. We have previously posted Bulletins No 1 through 14 – links can be found Here. We have now posted No 15:
- Bulletin No 15 (20 October 2009) discusses Sections 18 and 19 of the IFRS for SMEs, which deal with business combinations and intangible assets. Click to Download Bulletin 15 (PDF 168k).
We have many resources in Spanish Here.
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20 October 2009: Deloitte's iGAAP 2010 IFRS Reporting in the UK
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Deloitte United Kingdom has published iGAAP 2010 IFRS Reporting in the UK. This 3,692-page book sets out comprehensive guidance for UK companies reporting under IFRSs. The book explains clearly the requirements of IFRSs and how they differ from UK GAAP; adds interpretation and commentary where IFRSs are silent or unclear; identifies related UK-specific requirements; and provides many illustrative examples. The manual deals comprehensively with those new standards that apply for periods beginning in 2009 and also covers those further pronouncements issued by the IASB up to 30 June 2009 that will apply from 2010, distinguishing clearly those that have not yet been endorsed by the European Commission. New material in this 2010 edition includes:
- IFRS 6 Exploration for and Evaluation of Mineral Resources;
- the revised version of IFRS 1 First-time Adoption of International Financial Reporting Standards (November 2008);
- the amendment to IFRS 2 Group Cash-settled Share-based Payment Transactions (June 2009);
- the amendment to IFRS 7 Improving Disclosures about Financial Instruments (March 2009);
- the amendment to IAS 39 Eligible Hedged Items (July 2008);
- the amendments to IAS 39 and IFRS 7 Reclassification of Financial Assets (October 2008);
- the amendments to IFRIC 9 and IAS 39 Embedded Derivatives (March 2009);
- Improvements to IFRSs issued in April 2009;
- IFRIC 17 Distributions of Non-cash Assets to Owners;
- IFRIC 18 Transfers of Assets from Customers;
- partnerships;
- small and medium-sized companies;
- dormant, overseas and unlimited companies and companies limited by guarantee;
- TECH 01/09 Guidance on the determination of realised profits and losses in the context of distributions under the Companies Act 2006;
- increased guidance on going concern following the publication of guidance in this area by the Financial Reporting Council; and
- additional examples and guidance on issues arising in practice.
Orders may be placed via www.lexisnexis.co.uk/deloitte or call +44 (0) 845 370 1234. Click for Descriptive Booklet about This and Related iGAAP Publications for 2010 (PDF 248k).
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20 October 2009: Deloitte UK survey of narrative reporting
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Deloitte United Kingdom has published A Telling Performance – Surveying Narrative Reporting in Annual Reports (PDF 4,325k). The survey analyses the narrative reporting of 130
UK listed companies, split into two categories – investment trusts and other companies. It includes a review of:
- how compliance with the disclosure requirements of the Companies Act 2006, the Listing Rules, the Disclosure and Transparency Rules, and the Combined Code varied;
- the extent to which companies have adopted the Financial Reporting Council's November 2008 guidance on going concern. In this respect its publication is timely as the FRC has published recently its revised guidance, which will be effective for 31 December 2009 period ends; and
- the use of the ASB's Reporting Statement: Operating and Financial Review.
The main findings for companies other than investment trusts are:
- the length of the annual report has increased by 3% compared with 2008 and by 41% compared with 2005.
- 62% of those companies that reported after the November 2008 FRC Update on going concern and liquidity risk was published clearly took on board voluntarily the guidance therein.
- nine companies (2008: five) had received modified audit reports, seven (2008: four) of which related to group going concern. Another one related to a subsidiary going into administration post year-end;
- three areas saw dramatic increases compared with 2008:
- 83% (2008: 47%) discussed their capital structure and financing
- 68% (2008: 48%) discussed treasury policies
- 47% (2008: 22%) discussed their current and prospective liquidity
- 96% of companies (2008: 89%) clearly described their principal risks and uncertainties. Companies
- disclosed eight risks on average, with one FTSE 350 company identifying 30. The state of the economy was the most commonly noted risk;
- 84% of companies (2008: 77%) identified clearly their key performance indicators.
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20 October 2009: Notes from day 1 of IASB October meeting
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The IASB is holding its regular monthly meeting at its offices in London on Monday to Friday 19-23 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the first day of the meeting.
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20 October 2009: Newsletter on classification of rights issues
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Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Classification of Rights Issues (PDF 55k) explaining the IASB's amendment to IAS 32 adopted on 8 October 2009. The amendment addresses the accounting for rights issues (rights, options, or warrants) that are denominated in a currency other than the functional currency of the issuer. The amendment requires that rights, options, or warrants to acquire a fixed number of an entity's own equity instruments for a fixed amount of any currency are equity instruments – regardless of the currency in which the exercise price is denominated – if the entity offers the rights, options, or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. The amendment is effective for annual periods beginning on or after 1 February 2010, with earlier application permitted. The amendment is to be applied retrospectively.
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18 October 2009: Auditing complex financial instruments
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The International Auditing and Assurance Standards Board (IAASB) has published a consultation paper seeking views on possible new guidance on auditing the fair values of complex financial instruments. The consultation paper – titled Auditing Complex Financial Instruments – recognises the strong demand from auditors and preparers for further guidance on auditing in situations of illiquid markets, which currently pose the greatest challenges for them. Current IAASB guidance is in International Auditing Practice Statement 1012 Auditing Derivative Financial Instruments. The consultation paper incorporates recent work by the UK Auditing Practices Board on the same topic, and asks specific questions about how that guidance might be adapted or supplemented for application in the international context. The consultation paper may be Downloaded from IAASB's Website. Comments are due by 15 January 2010.
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17 October 2009: Notes from special IASB meeting 16 October 2009
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The IASB held a special meeting at its offices in London on Friday 16 October 2009 to discuss the comprehensive project to replace IAS 39. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
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16 October 2009: Notes from special IASB meeting 15 October 2009
16 October 2009: Asian-Oceanian standard setters will meet
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The first meeting of the Asian-Oceanian Standard-Setters Group (AOSSG) will take place on 4 and 5 November 2009 in Kuala Lumpur, hosted by the Malaysian Accounting Standards Board. The objective of this first meeting in November is to establish and agree on a constitution for the AOSSG and to discuss and to provide input on several of the most recent draft proposals issued by the International Accounting Standards Board. The discussions will include views on the fair value measurement, the presentation of financial statements, revenue recognition, and IAS 39. Standard-setters from at least 24 countries have confirmed that they are attending the AOSSG Meeting and will be signing the Memorandum of Understanding (MoU) of AOSSG. These include Australia, China, India, Japan, Hong Kong, Korea, Malaysia, New Zealand, Pakistan, Saudi Arabia, and Singapore. Click for Press Release (PDF 65k). We will report on the activities of AOSSG on IAS Plus from time to time, and we have created a new AOSSG Page on IAS Plus where we will a record of our AOSSG news.
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15 October 2009: Insurance accounting newsletter in Spanish
15 October 2009: IFRSs and the accounting environment in Russia
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Deloitte & Touche Regional Consulting Services Limited (Russia) has published Doing Business in Russia 2009 (PDF 2,330k, 80 pages). A section of that report examines the accounting environment in Russia. For historical reasons, the Russian financial reporting has been determined by the state rather than the accounting profession. Russian Accounting Standards (RAS) tend to be a summarised version of IFRSs, with modifications and options that allow the financial statements to be consistent with tax laws and regulations. Doing Business in Russia 2009 includes information about which entities are required to be audited, where financial statements are filed, and recent trends toward voluntary publication of IFRS financial statements. Some differences between IFRSs and Russian Accounting Standards are noted – as summarised below. Here is our Russian Country Page.
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Differences between Russian Accounting Standards and IFRSs
The practical application of RAS results in some significant differences compared to IFRSs, in particular, the following:
- Financial statements are generally prepared on a historical cost basis with only limited use of revaluations
- The fair value concept is not widely applied, except for investments in market traded securities
- Finance leases may be capitalised,but usually are not
- Assets are not normally tested for impairment (except for intangible assets)
- The useful lives of fixed assets tend to be in line with the useful lives specified for tax purposes
- The assets and liabilities of an entity which has been acquired are measured and maintained at book value at the date of acquisition
- Goodwill on acquisition (positive and negative) is amortised over the shorter of 20 years or the life of the acquirer and is generally not subject to an annual impairment test
- Provisions (such as for bad debts) are generally not created
- Revenue or expenditure is only recognised after all the preceding primary documentation supporting the transaction has been received, in accordance with the tax rules
- Deferred tax is generally calculated using the income statement method, although the methodology differs
- There is no direct requirement to prepare consolidated accounts
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15 October 2009: Deloitte IFRS for SMEs newsletter in Spanish
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Deloitte (Colombia) is publishing a series of Spanish language bulletins about the new IFRS for SMEs. We have previously posted Bulletins No 1 through 13 – links can be found Here. We have now posted No 14:
- Bulletin No 14 (13 October 2009) discusses Section 18 of the IFRS for SMEs, which deals with intangible assets. Click to Download Bulletin 14 (PDF 162k).
We have many resources in Spanish Here.
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14 October 2009: Impact of IFRSs on transfer pricing
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The lead story in the October-November 2009 edition of Arm's Length Standard (a newsletter on global transfer pricing published by Deloitte Tax LLP) examines the transfer pricing effects of United States companies switching from US GAAP to IFRSs. The newsletter considers the IFRS implications for a number of transfer pricing methods, including
- the comparable uncontrolled price (CUP) method
- the comparable uncontrolled transaction (CUT) method
- the resale price method (RPM)
- the cost plus method
- the comparable profits method (CPM)
Click to Download the Arm's Length Standard Newsletter (PDF 339k).
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14 October 2009: Agenda for November 2009 SAC meeting
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The Standards Advisory Council will meet with the IASB on Thursday and Friday 12-13 November 2009 in London. A draft agenda has been posted on the IASB's website and is summarised below. The SAC provides a forum for the IASB to consult a wide range of interested parties affected by the IASB's work, with the objective of:
- advising the Board on agenda decisions and priorities in the Board's work,
- informing the Board of the views of the organisations and individuals on the Council on major standard-setting projects, and
- giving other advice to the Board or to the Trustees.
Standards Advisory Council Meeting Agenda
12-13 November 2009, London |
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Thursday 12 November 2009 (10:00am-17:45pm)
- Welcome and SAC Chairman's preview
- Overview of last four months
- IASB Activities
- Report of the Chair and Vice-Chairs of SAC
- Update on major projects that are the most challenging in terms of meeting the June 2011 deadline
- Other activities
- Financial Instruments project
- SAC Member activities – SAC members report on significant developments in their organisations relating to IFRSs
- Priorities for the IASB work plan post June 2011
- Suggestion of topics for the IASB work plan assuming the June 2011 deadline for projects will be met
- Break-out sessions (report back Friday morning)
- Disclosures – reducing complexity
Friday 13 November 2009 (9:15am to Noon)
- Priorities for the IASB work plan post June 2011 – Report back from Thursday's break-out sessions
- Constitutional Review
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14 October 2009: EFRAG seeks applicants for Chairman, members
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The European Financial Reporting Advisory Group (EFRAG) is seeking a full-time Chairman for the organisation and for its Technical Expert Group (TEG), as well as nominees for membership on the TEG. The present term of the TEG Chairman (Stig Enevoldsen) expires on 31 March 2010, and the terms of eleven of the twelve members of TEG members also expire on that date. Details are on EFRAG's Website.
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13 October 2009: Agenda for joint IASB-FASB meeting
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The IASB and the US Financial Accounting Standards Board will hold a joint meeting at the FASB's offices in Norwalk, Connecticut USA on Monday to Wednesday 26-28 October 2009. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. The Board will also hold Special Meetings on 15 October 2009 and another on 16 October 2009 to discuss the comprehensive project to replace IAS 39, as well as its regular October meeting on 19-23 October 2009, all in London.
IASB-FASB Joint Meeting Agenda
26-28 October 2009, Norwalk, Connecticut USA |
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Monday 26 October 2009
Tuesday 27 October 2009
Wednesday 28 October 2009
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13 October 2009: IFRS insurance accounting newsletter
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Deloitte (United Kingdom) has published the October 2009 issue of Insurance Accounting Newsletter. This issue is titled The New Accounting Model Takes Shape and focusses on the key decision made by the IASB in September 2009 to adopt (by a bare majority vote of 8 out of 15) the 'Updated IAS 37 Model' rather than the 'Current Fulfilment Value Model'. The latter received unanimous support from the US FASB earlier in the year. The newsletter describes important features of the Updated IAS 37 Model and notes that IASB intends to publish an exposure draft before the end of the year 2009, with a five-month comment period ending in May 2010. An appendix to the newsletter includes a tabular summary of the tentative decisions to date, showing the issues on which the views of the IASB and the FASB agree, issues on which the views of the two Boards diverge, and IASB decisions not yet discussed by the FASB. Click to download Issue 8 of the Insurance Accounting Newsletter (PDF 141k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.
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12 October 2009: Regulators' report on special purpose entities
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The Joint Forum has released its Report on Special Purpose Entities. This paper serves two broad objectives. First, it provides background on the variety of special purpose entities (SPEs) found across the financial sectors, the motivations of market participants to make use of these structures, and risk management issues that arise from their use. Second, it suggests policy implications and issues for consideration by market participants and the supervisory community. Regarding accounting, here are three comments made in the report:
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The ability to achieve off-balance sheet accounting treatment is affected by the accounting regime to which the originating or sponsoring entity is subject. Generally speaking, off-balance sheet treatment is easier to achieve under US GAAP than under IFRS. However, the US FASB new accounting rules related to SPEs that are effective in 2010 will significantly reduce the ability of institutions to use SPEs to achieve off-balance sheet treatment. As a result, US accounting changes will significantly alter the motivations for originators in using SPEs. These accounting changes will also affect leverage and risk-based capital ratios, and could have an important effect on the management of regulatory capital adequacy requirements by firms.
European financial firms generally have less ability to remove assets from their balance sheets by using SPEs. However, this is offset by the fact that risk-based capital requirements are not as closely tied to accounting in Europe. In contrast, while US firms currently can more easily remove assets from their balance sheets, the US implementation of Basel I required more capital for certain exposures than in Europe.
Some examples (but not an exclusive list) of the ways SPEs can potentially confuse or obfuscate the financial position of a company are:
- Return on equity and return on assets can be exaggerated if revenue flows are received from SPEs but the assets in those vehicles are not recognised on the balance sheet;
- Sector exposure may be obscured, either deliberately or not, by recognising some SPEs on balance sheet and not others;
- Leverage ratios may be obscured.
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An appendix to the report examines, in detail, the current accounting treatment of SPEs under IFRSs and under US GAAP. Click to download:
The Joint Forum is a consortium of the Basel Committee on Banking Supervision, the International Organization of Securities Commissions, and the International Association of Insurance Supervisors that addresses issues common to the banking, securities, and insurance sectors, including the supervision of financial conglomerates.
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11 October 2009: CEBS consults on bank disclosures
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The Committee of European Banking Supervisors (CEBS) has published a consultation paper proposing disclosure guidelines intended to help financial institutions improve their risk disclosures in the wake of the financial crisis. The disclosure guidelines are divided into three different parts, discussing respectively:
- general principles to be applied to high quality disclosures
- principles dealing with the content of disclosures on areas or activities under stress, in particular business models, impacts on results and risk exposures, impacts on financial positions, risk management, and sensitive accounting issues
- guidance on presentational aspects of disclosures
Regarding sensitive accounting issues, the proposed disclosure guidelines state:
11. Financial institutions should be as specific as possible with regard to sensitive accounting issues. Disclosures should cover:
- an adequate description of the accounting policies that are of particular relevance for the activities in question;
- details of relevant changes, if any; and
- detailed information where significant judgement has been applied.
Financial institutions are encouraged to highlight accounting policies that are of particular relevance for the areas or activities under stress. Such descriptions are most valuable when they focus on the specificities of the situation faced by the institution, rather than recycling generic descriptions.
Especially in a period of turbulence, when market confidence may be faltering, clear information on the management judgements affecting accounting figures is of the utmost importance since these can significantly affect the amounts recognised in the financial statements. For instance, judgement is called upon for fair values for financial instruments (especially when marking to model), impairment of financial and intangible assets and defined benefit pension schemes.
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Comments are requested by 15 January 2010. CEBS intends to hold a public hearing in January 2010 in London, inviting supervised institutions and other market participants to present their views. Click to download:
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11 October 2009: Special Board meetings 15 and 16 October
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The IASB has begun posting the agenda papers for the special meetings it will hold on Thursday 15 October 2009 (11:00 to 13:00h London time) and Friday 15 October 2009 (11:00 to 15:00h London time). Both meetings will deal with projects relating to the replacement of IAS 39. The papers posted so far indicate that the following projects will be discussed on each of the two days:
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10 October 2009: SEC remains committed to global standards
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US Securities and Exchange Commission Chairman Mary L Schapiro spoke about reforming the global financial system and the regulatory framework that governs it at a conference sponsored by the IOSCO Technical Committee in Basel, Switzerland on 8 October 2009. She noted that during the current global financial crisis, 'investor confidence in the transparency of the markets, sufficiency and even the reliability of the information they were getting was shaken to the core'. She said that financial reports prepared in accordance with high-quality, consistent accounting standards are one of the most effective tools for providing transparency to the markets and instilling confidence in investors. Yet the financial crisis has demonstrated that some standards must be improved. She reiterated the Commission's commitment to a global set of accounting standards. Click for Chairman Schapiro's Remarks (PDF 40k). Here is an excerpt:
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The crisis has highlighted importance of implementing and enforcing high quality and consistent accounting standards around the world. The SEC has of course played a leadership role in fostering this ideal and I remain committed to the goal of a global set of high-quality accounting standards. I also believe that there are issues that will be critical to address as we at the SEC consider the input we have received on last year's proposed roadmap on the role of international standards in the US. It is with the principles and ideas I just outlined in mind that I am committed to focusing our efforts this fall to following up with a work plan that expands upon the concepts proposed in the roadmap.
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10 October 2009: Guide through IFRSs 2009
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The IASC Foundation has published A Guide through International Financial Reporting Standards IFRSs July 2009. This guide is the complete IFRS bound volume of standards, updated through 1 July 2009, with cross-references and other annotations added. The cross-references link the text in an IFRS to relevant IFRIC and SIC Interpretations and to illustrative examples and implementation guidance published in appendices to the IFRSs. The 3,008-page guide may be purchased for £90 plus shipping on the IASB's Website. Discounts are available for students, academicians, multiple orders, and developing countries.
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10 October 2009: Proposal to adopt IFRSs in Argentina
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Argentina's Comisión Nacional de Valores (CNV, the National Securities Commission, an agency of the Argentine Ministry of Economics and Public Finance) has proposed to require IFRSs for all companies that publicly offer equity or debt securities, beginning with financial statements for the year ended 31 December 2011. The proposal is titled Adopción de Normas Contables Internacionales para la Preparación de Estados Contables (PDF 503k, Spanish). There are approximately 130 publicly traded companies in Argentina, and they have approximately 500 subsidiaries and associates that will also prepare their financial statements using IFRSs. The CNV's proposed IFRS regulation would not apply to the following companies:
- Financial institutions (their financial reporting is regulated by the Argentine Central Bank, which has recently announced its intention to require IFRSs probably starting in 2014)
- Insurance companies (under the Argentine Insurance Oversight regulation)
- Civil associations
- Cooperatives
- Other entities under the control of the CNV (trusts, mutual funds, and small entities that discount checks).
Prior to 2011, the companies that will be moving to IFRSs will be required to disclose the coming change in a note to their 2009 financial statements and to include in their 2010 financial statements a reconciliation of income and shareholders' equity from current Argentine GAAP to IFRSs. By requiring IFRSs for companies whose securities are publicly traded, the CNV would be acting to adopt a resolution approved in March 2009 by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE), which is the national accounting standard setter in Argentina. The FACPCE's Resolution – Resolución Técnica No 26: Adopción de las NIIF del IASB (PDF 64k) – states that the IFRSs issued by the International Accounting Standards Board (IASB), in the official Spanish translation issued by the IASB, must be applied – no local adaptations. Resolution No 26 also permits, but does not require, all other non-public companies to apply IFRS. There's more background information on our Argentina Country Page.
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10 October 2009: Two publications from Deloitte Portugal
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We have posted two recent publications from Deloitte Portugal. Both publications (which are in Portuguese) are related to the new financial reporting framework in Portugal that will be effective on 1 January 2010, known as Sistema de Normalização Contabilística, or SNC:
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10 October 2009: 9 IFRSs await EU endorsement
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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 9 October 2009 (PDF 132k). The following 9 IASB pronouncements are awaiting European Commission endorsement for use in Europe:
You can always find the endorsement status report Here.
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9 October 2009: Agenda for October 2009 IASB meeting
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The IASB will hold its October 2009 regular monthly meeting at its offices in London on Tuesday to Friday 19-23 October 2009. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. The Board will also hold a Special Meeting on 15 October 2009 and another Special Meeting on 16 October 2009to discuss the comprehensive project to replace IAS 39. The Board will also hold a joint meeting with the US Financial Accounting Standards Board in Norwalk, Connecticut USA on 26-28 October 2009.
IASB Board Meeting Agenda
19-23 October 2009, London |
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Monday 19 October 2009 (starting at noon)
- Meeting of Representatives of IASB and Representatives of EFRAG (noon to 13:45h)
- Financial Instruments – Replacement of IAS 39 (starting at 15:00h)
Tuesday 20 October 2009
Wednesday 21 October 2009
Thursday 22 October 2009
Friday 23 October 2009
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9 October 2009: Additional IASB Board meeting 15 October
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The IASB has announced that the Board will hold an additional meeting on Thursday 15 October 2009 to discuss its project to replace IAS 39. The meeting will be held from 11:00 to 13:00h London time. The meeting is open to public observation and will be webcast. The specific agenda topics have not yet been announced but will include one or more of the following:
This meeting is in addition to the previously announced special meeting on Friday 16 October – and in addition to the regular October Board meeting on 19-23 October.
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9 October 2009: Auditing fair value measurements
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The Standing Advisory Group of the US Public Company Accounting Oversight Board (PCAOB) will meet on 14-15 October 2009 in Washington. The PCAOB has released a briefing paper for that meeting titled Auditing Fair Value Measurements and Using the Work of a Specialist (PDF 108k). The paper examines audit issues relating to fair value measures and fair value disclosures, including those required by IFRS 7 Financial Instruments: Disclosures.
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9 October 2009: US SEC strategic plan 2010-2015
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The US Securities and Exchange Commission has published for public comment its Draft Strategic Plan for fiscal years 2010 through 2015. The document includes drafts of the SEC's mission, vision, values, strategic goals, major initiatives, and performance metrics for fiscal years 2010 through 2015. The draft outlines over 70 initiatives designed to support the Commission's primary strategic goals. With regard to accounting, goals include supporting a single set of global accounting standards and promoting the ongoing FASB-IASB convergence work. Adoption of IFRSs for use by US domestic SEC registrants is not a specified goal. Click to download US SEC Strategic Plan 2010-2015 (PDF 441k). Comments are requested by 16 November 2009 to strategicplan @ sec.gov.
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Here is the SEC's proposed accounting objective:
Due to the increasingly global nature of the capital markets, the agency will promote high-quality financial reporting worldwide through, among other things, support for a single set of high-quality global accounting standards and promotion of the ongoing convergence initiatives between the FASB and the International Accounting Standards Board.
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9 October 2009: IASB finalises 'rights issues' amendment to IAS 32
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The International Accounting Standards Board has finalised an amendment to IAS 32 Financial Instruments: Presentation. The amendment addresses the accounting for rights issues (rights, options, or warrants) that are denominated in a currency other than the functional currency of the issuer. Previously such rights issues were accounted for as derivative liabilities. However, the amendment requires that rights, options, or warrants to acquire a fixed number of an entity's own equity instruments for a fixed amount of any currency are equity instruments – regardless of the currency in which the exercise price is denominated – if the entity offers the rights, options, or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. The amendment is effective for annual periods beginning on or after 1 February 2010, with earlier application permitted. The amendment is to be applied retrospectively. Click for IASB Press Release (PDF 98k).
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8 October 2009: Additional IASB Board meeting 16 October
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The IASB has announced that the Board will hold an additional meeting on Friday 16 October 2009 to discuss its project to replace IAS 39. The meeting will be held from 11:00 to 15:00h London time. The meeting is open to public observation and will be webcast. The specific agenda topics have not yet been announced but will include one or more of the following:
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7 October 2009: Notes from the 6 October 2009 IASB meeting
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The IASB held a special Board meeting at its offices in London on Tuesday 6 October 2009. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
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7 October 2009: Accounting Roundup – third quarter 2009 review
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We have posted Accounting Roundup: Third Quarter in Review–2009 (PDF 384k, 36 pages), prepared by the Accounting Standards and Communications Group of Deloitte LLP (USA). This newsletter provides brief descriptions of pronouncements affecting accounting, financial reporting, and corporate governance issued during 3Q-2009 by standard setters and regulators including FASB, EITF, AICPA, SEC, FASAB, PCAOB, GASB, IASB, IFRIC, and IAASB. This quarterly review consists of articles, adapted as necessary, from issues of Accounting Roundup published in July and August 2009, as well as new articles for the month of September. There's also information about upcoming Dbriefs Webcasts. You will find past issues Here. International and IFRS-related developments covered in this edition of Accounting Roundup include:
- IASB Proposes Improvements to Financial Instruments Accounting
- IASB Proposes Guidance on Classification of Rights Issues
- IFRIC Proposes Interpretation on Extinguishing Financial Liabilities With Equity Instruments
- IASB Issues IFRS for Small and Medium-Sized Entities
- IASB Amends the Retrospective Application of IFRSs for First-Time Adopters
- IASB Proposes Guidance on Rate-Regulated Activities
- IASB Proposes Changes as Part of Its Annual Improvements Project
- Trustees of IASC Foundation Publish Proposals on Enhanced Accountability and Stakeholder Outreach
- CAQ Publishes Guide to IFRSs
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7 October 2009: IFRS Insights newsletter
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We have posted the IFRS Insights Newsletter for July/August 2009 (PDF 135k) 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. This issue includes:
- An overview of International Accounting Standards Board's (IASB) recently issued IFRS for Small and Medium-sized Entities
- An article about IFRS for insurance companies and a look at the industry's accounting landscape
- A brief overview of International Accounting Standard (IAS) 19, Employee Benefits
- Featured IFRS survey results on private companies
We have Permanent Links to all IFRS Insights on our USA country page.
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7 October 2009: Deloitte IFRS for SMEs newsletter in Spanish
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Deloitte (Colombia) is publishing a series of Spanish language bulletins about the new IFRS for SMEs. We have previously posted Bulletins No 1 through 12 – links can be found Here. We have now posted No 13:
- Bulletin No 13 (6 October 2009) discusses Section 17 of the IFRS for SMEs, which deals with property, plant, and equipment. Click to Download Bulletin 13 (PDF 215k).
We have many resources in Spanish Here.
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7 October 2009: IFRS compliance questionnaire for 2009
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Deloitte's IFRS Global Office has published our IFRS Compliance Questionnaire for 2009. This 347-page questionnaire summarises the recognition and measurement requirements in IFRSs issued on or before 30 June 2009. It may be used to assist in considering compliance with those pronouncements. It is not a substitute for your understanding of such pronouncements and the exercise of your judgment. Users of the questionnaire are presumed to have a thorough understanding of the pronouncements and should refer to the text of the pronouncements, as necessary, in considering particular items in this questionnaire. The items in this questionnaire are referenced to the applicable sections of the IFRSs. Click to download:
There is a permanent link on our Model Financial Statements Page.
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This questionnaire does not address the requirements of IFRSs as regards presentation and disclosure – please refer to Deloitte's separate IFRS Presentation and Disclosure Checklist for 2009.
This questionnaire is suitable for use in assessing recognition and measurement in financial statements prepared in accordance with IFRSs for periods beginning on 1 January 2009. It is not generally appropriate for use for earlier accounting periods – please refer to previous versions of this questionnaire on our Model Financial Statements Page.
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7 October 2009: IASB webcasts on financial instruments
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The IASB will hold webcasts on the project to replace IAS 39 Financial Instruments: Recognition and Measurement twice on 8 October 2009. Both presentations will be followed by a short Q&A session where registered participants can submit questions via the online facilities:
- Webcast topic: Financial Instruments - replacement of IAS 39
- Date and Time: Thursday, 8 October 2009, 10:00am London time and again at 14:00pm London time
- Presenters: IASB staff.
- More Information and Registration (link to IASB website)
- Project pages on IAS Plus website:
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6 October 2009: SEC defers internal control reports for small public companies
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The US Securities and Exchange Commission has given non-accelerated filers (small public companies with a public float below $75 million) a further deferral from complying with the provisions of Section 404(b) of the Sarbanes-Oxley Act of 2002. Section 404 requires public companies and their independent auditors to report to the public on the effectiveness of a company's internal controls. With the deferral, non-accelerated filers will now be required to provide the auditor attestation reports in their annual reports for fiscal years ending on or after 15 June 2010. The effective date previously had been for fiscal years ending on or after 15 December 2009. Click for SEC Press Release (PDF 29k).
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6 October 2009: Deloitte newsletter on fair value in Spanish
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Deloitte (Colombia) has published the Spanish translation of the following Heads Up newsletter from Deloitte (United States):
You will find our resources in Spanish Here.
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6 October 2009: US CPA exam to include IFRSs starting 2011
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Beginning 1 January 2011, the United State Uniform CPA Examination will include, for the first time, testing on International Financial Reporting Standards. Under the new Content and Skill Specifications for the Uniform CPA Examination (PDF 262k), CPA exam candidates will be expected to 'identify and understand the differences between financial statements prepared on the basis of accounting principles generally accepted in the United States of America (US GAAP) and International Financial Reporting Standards (IFRS)'. Candidates will also be required to demonstrate proficiency in first-time adoption of IFRSs.
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6 October 2009: We comment on IFRIC D25
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Deloitte Touche Tohmatsu has submitted comments on IFRIC Draft Interpretation D25 Extinguishing Financial Liabilities with Equity Instruments, which was published 6 August 2009.
IFRIC D25 addresses the appropriate accounting under IFRSs when a creditor agrees to accept an entity's shares or other equity instruments to settle the financial liability fully or partially. IFRIC D25 proposes – and in our letter of comment we agree – that:
- an entity's equity instruments are part of any 'consideration paid' to extinguish a financial liability.
- the equity instruments should be measured at either their fair value or the fair value of the financial liability extinguished, whichever is more reliably determinable.
- any difference between the carrying amount of the financial liability extinguished and the initial measurement amount of those equity instruments should be included in the entity's profit or loss for the period.
Click to download our letter on the ED Extinguishing Financial Liabilities with Equity Instruments (PDF 22k). All past letters comment are Here.
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6 October 2009: IAASB guidance on implementation of ISAs
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The International Auditing and Assurance Standards Board (IAASB) has released a series of ISA Modules focusing on some of the new and more significantly revised International Standards on Auditing (ISAs). Each module combines a short video presentation, a set of slides, and supporting notes that explain the key principles of, and major changes in, individual ISAs, including the implications for audits of small and medium-sized entities. Click for IFAC Press Release (PDF 21k), which includes a hyperlink to download the guidance modules.
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5 October 2009: IFRS presentation and disclosure checklist for 2009
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We have posted Deloitte's IFRS Presentation and Disclosure Checklist for 2009 in both PDF and Microsoft Word formats. 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. Click to download:
Our various IFRS model financial statements and related checklists, including translations, are always available Here.
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5 October 2009: Four issues relating to fair value measurement
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This issue of the Heads-Up Newsletter (PDF 96k) from Deloitte (United States) summarises the four topics discussed by FASB's Valuation Resource Group (VRG) at its meeting of 22 September 2009. The VRG provides the FASB staff with information about implementation issues regarding fair value measurements used in financial reporting:
- VRG Issue No. 2009-5: IASB's May 2009 Exposure Draft Fair Value Measurement. Discussion of this issue includes a table summarising the more significant differences between the IASB ED and FASB ASC 820 [formerly SFAS 157 Fair Value Measurements].
- VRG Issue No. 2009-6: Measurement of Core Deposits
- VRG Issue No. 2009-7: Fair Value of Debt Versus Par Value of Debt When Estimating the Fair Value of an Entity's Equity
- VRG Issue No. 2009-8: Proposed Accounting Standards Update (ASU) on Improving Disclosures About Fair Value Measurement
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5 October 2009: SIX Swiss Exchange IFRS areas of focus for 2009 financial statements
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SIX Exchange Regulation, an autonomous division within SIX Group overseeing the SIX Swiss Exchange, has released its Annual Communiqué (PDF 59k) identifying the areas on which it intends to focus in its regulatory review of 2009 annual financial statements of companies listed on the SIX Swiss Exchange. The areas of focus will be:
- Measurement and disclosure of financial instruments (IAS 39/IFRS 7)
- Reporting on operating segments (IFRS 8/IAS 36)
Further, the SIX Exchange Regulation has updated its Circular No. 2 (PDF 74k), which identifies IFRS issues that have led to discussions with or measures against issuers in the past.
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4 October 2009: IFRS illustrative financial statements for 2009
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We have posted Deloitte's IFRS Illustrative Financial Statements for 2009 (Word file, Zipped 702k). This posting is a pre-production version of these model financial statements, which means that they do not have full formatting or covers. We expect to post a final 'production version' by the end of October 2009.
| IFRS Illustrative Financial Statements for 2009 – What's New |
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In these 2009 model financial statements, we have illustrated the impact of the adoption of a number of new and revised Standards and Interpretations as follows:
- IAS 1 (as revised in 2007) Presentation of Financial Statements
- IFRS 8 Operating Segments
- Improving Disclosures about Financial Instruments (Amendments to IFRS 7 Financial Instruments: Disclosures)
- Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (adopted in advance of effective date of 1 January 2010)
- Amendments to IAS 7 Statement of Cash Flows (adopted in advance of effective date of 1 January 2010)
- IFRS 3 (as revised in 2008) Business Combinations
- IAS 27 (as revised in 2008) Consolidated and Separate Financial Statements
- IAS 28 (as revised in 2008) Investments in Associates
- IFRIC 13 Customer Loyalty Programmes
- Amendments to IAS 38 Intangible Assets (part of 'Improvements to IFRSs 2008')
- Amendments to IAS 40 Investment Property (part of 'Improvements to IFRSs 2008')
- Amendments to IAS 20 Accounting for Government Grants and Disclosure of Government Assistance (part of 'Improvements to IFRSs 2008')
- Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures regarding reclassifications of financial assets
The following new and revised Standards and Interpretations have also been adopted in these financial statements. However, their adoption did not have any significant impact on the amounts reported but may impact the accounting for future transactions or arrangements:
- Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
- Amendments to IFRS 2 Share-based Payment – Vesting Conditions and Cancellations
- IAS 23 (as revised in 2007) Borrowing Costs
- Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation
- Amendments to IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items
- 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 (adopted in advance of effective date of 1 July 2009)
- IFRIC 18 Transfers of Assets from Customers (adopted in advance of effective date of transfers of assets from customers received on or after 1 July 2009)
- Various Improvements to IFRSs (2008)
- Various Improvements to IFRSs (2009)
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Our comprehensive page of IFRS model financial statements and related checklists is Here.
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4 October 2009: Global IFRS and Offerings Services newsletter
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We have posted Deloitte's US Reporting Newsletter for Non-US Based Companies June-August 2009 Edition – includes news through 15 August 2009 (PDF 182k). 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.
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In this issue of the GIOS newsletter:
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IFRS Matters
- IASB Issues Exposure Draft on Fair Value Measurements
- IASB Issues IFRS for Small and Medium-Sized Entities
- IASB Seeks Feedback on Impairment Model
- IASB Publishes Discussion Paper on Accounting for Credit Risk in the Measurement of Liabilities
- IASB Amends Accounting for Share-Based Payments
- IASB Proposes Guidance on Management Commentary
- IASB Issues Exposure Draft and FASB Initiates Deliberations on New Classification and Measurement Requirements for Financial Assets and Financial Liabilities
- IASB Proposes Guidance on Rate-Regulated Activities
- IASB Amends the Retrospective Application of IFRSs for First-Time Adopters
- Tips on Applying IFRS
- IFRS Tools
US GAAP Matters
- FASB Issues Exposure Draft on Allowance for Loan Losses Disclosures
- Updated Roadmap Released on Accounting for Business Combinations
- Statement 167 Adoption Issues — Insights for the Asset Management Industry
- EITF Approves Guidance on Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance
- EITF Issues Draft Abstracts on Revenue Arrangements With Multiple Deliverables and Software Revenue Recognition
- Topic D-110 Announced
- SEC's Division of Corporation Finance Updates the Financial Reporting Manual
- New Roadmap Released on SEC Reporting for Business Combinations and Related Topics
- FASB Continues Deliberations on Financial Instruments and Decides on Presentation
- Highlights of SEC Regulations Committee's April 2009 Meeting Released
- Highlights of SEC Regulations Committee's June 2009 Meeting Released
Other Matters
- PCAOB Adopts New Standard on Engagement Quality Review
- SEC Proposes Rule on Municipal Securities Disclosure
- SEC Issues Final Rule Adopting Updated EDGAR Filer Manual
- SEC Proposes Say-on-Pay and Proxy Disclosure Rules and Approves Discretionary Broker Voting Rule
- AICPA Issues Exposure Draft on Quality-Control Standards
- Financial Crisis Advisory Group Issues Report
- SEC Investor Advisory Committee Sets Agenda
- FASB Responds to CIFiR Recommendations
- SEC's Division of Corporation Finance Issues Compliance and Disclosure Interpretations
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2 October 2009: Important change for US revenue recognition
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Deloitte (United States) has published an issue of the Heads Up newsletter discussing the EITF's recently finalised Issue 08-1, Revenue Arrangements With Multiple Deliverables, which will significantly change the accounting for revenue recognition for arrangements with multiple deliverables. Entities will be able to separately account for individual deliverables for many more revenue arrangements. By removing the criterion that entities must use objective and reliable evidence of fair value in separately accounting for deliverables, the EITF expects the recognition of revenue to more closely align with the economics of certain revenue arrangements. Click to Download this Issue of Heads Up (PDF 158k).
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Issue 08-1 will replace all references to 'fair value' in ASC 605-25 (FASB Codification section relating to multiple deliverables) with references to 'selling price' to clarify that the selling-price measure in Issue 08-1 is not a market-participant measure as required by ASC 820 (previously known as Statement 157). The selling price of an item is an entity-specific measure that represents the amount an entity would sell that item for in a stand-alone transaction with a customer.
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Issue 08-1 must be applied prospectively to revenue arrangements entered into or materially modified in fiscal years beginning on or after 15 June 2010, but the vendor may elect to adopt it retrospectively. IFRSs do not include the type of guidance on multiple deliverables as is in Issue 08-1, but IASB and FASB currently are working on a joint project on Revenue Recognition. A Discussion Paper was issued in December 2008.
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2 October 2009: NIIF para PYMES impreso en español se publica
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The printed version of the Spanish translation of the IFRS for SMEs is now available. Norma Internacional de Información Financiera para Pequeñas y Medianas Entidades (NIIF para las PYMES) 2009 may be ordered for £20 plus shipping, with substantial discounts for students, full time academics, and academic institutions; purchasers in middle income and low income countries; and multiple copies. Click for Information and Ordering Details on IASB's website.
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2 October 2009: Deadline reminder – IFRIC D25
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We remind you that comments are due on 5 October 2009 on IFRIC Draft Interpretation D25: Extinguishing Financial Liabilities with Equity Instruments . The Draft Interpretation was issued on 6 August 2009. It addresses the appropriate accounting under IFRSs when a creditor agrees to accept an entity's shares or other equity instruments to settle the financial liability fully or partially. IFRIC D25 proposes that:
- an entity's equity instruments are part of any 'consideration paid' to extinguish a financial liability.
- the equity instruments should be measured at either their fair value or the fair value of the financial liability extinguished, whichever is more reliably determinable.
- any difference between the carrying amount of the financial liability extinguished and the initial measurement amount of those equity instruments should be included in the entity's profit or loss for the period.
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2 October 2009: Additional IASB Board meeting 6 October
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The IASB has announced that the Board will hold an additional meeting on Tuesday 6 October 2009 to discuss its project to replace IAS 39. The meeting will be held in two sessions:
- A morning session from 11:00 to 13:00h London time
- An afternoon session from 17:00 to 19:30h London time
The meeting is not open to public observation, but it will be webcast. The agenda:
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1 October 2009: PCAOB defers audit firm reporting
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The US Public Company Accounting Oversight Board has deferred the effective date of new rules and forms that require reporting by registered public accounting firms. The rules and forms were approved by the US Securities and Exchange Commission on 13 August 2009 and were previously scheduled to take effect on 12 October 2009 – see IAS Plus News Story of 15 August 2009. The PCAOB is postponing the effective date to 31 December 2009 to resolve technical issues related to deploying the PCAOB's new Web-based system for processing and publishing filings on the new forms. The postponement will not affect the timing of the first annual reports required from registered firms, which will still be due on 30 June 2010 for the 12-month period ending 31 March 2010. Click for PCAOB Announcement of Deferral (PDF 39k).
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1 October 2009: We comment on pensions discount rate ED
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Deloitte Touche Tohmatsu has submitted comments on IASB Exposure Draft (ED) 2009/10 Discount Rate for Employee Benefits, which was published 21 August 2009.
IAS 19 Employee Benefits requires an entity to determine the rate used to discount employee benefits with reference to market yields on high quality corporate bonds. However, when there is no deep market in corporate bonds, an entity is required to use market yields on government bonds instead. The global financial crisis has led to a widening of the spread between yields on corporate bonds and yields on government bonds. As a result, entities with similar employee benefit obligations may report them at very different amounts. The ED proposes to eliminate the requirement to use yields on government bonds. Instead, entities would estimate the yield on high quality corporate bonds. In view of the urgency of the issue and the limited scope of the proposals the IASB set a shortened period for comments on the ED. The IASB intends to permit entities to adopt the amendments that arise from this ED in their December 2009 financial statements. You will find an overview of the Proposals in the ED Here.
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An excerpt from our letter of comment on the ED:
We believe it is appropriate for the Board to proceed with the proposed amendment relating to the determination of the discount rate for employee benefit obligations, while keeping, for the time being, the general principle of determining this discount rate by reference to market yields on high quality corporate bonds. The urgency to act on the matter is justified by the significant increase of the spread between the yield on high quality corporate bonds and on government bonds as a result of the financial crisis. However, as explained in our detailed comments, we believe further clarifications are required to ensure that the amendment is applied consistently by entities. In particular, we believe that the Board should clearly establish the objective of estimating the discount rate in the absence of a deep market for high quality corporate bonds.
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Click to download our letter on the ED Discount Rate for Employee Benefits (PDF 38k). All past letters comment are Here.
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1 October 2009: Deloitte Canada Countdown IFRS transition newsletters
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Deloitte Canada has published the September 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 Transition – Where are we now?
- 'The Real Deal' – real issues and solutions on IFRS transition relating to First Interim Financial Statements
- SEC to refocus on IFRS roadmap
- Deloitte IFRS Publications and Events and How to Access Them
- An Update on Current IFRS News – including various important EDs or Discussion Papers
Click below for:
You will find more information about financial reporting in Canada on our Canada Page.
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