30 April 2010: Implications of changes in UK reporting for US companies
 |
Many US companies are closely following the IFRS statements of the Securities and Exchange Commission, and have geared their internal efforts in response. However, companies often have given less consideration to recent statutory developments elsewhere that may have more imminent implications. For example, the United Kingdom Accounting Standards Board is expected to issue an Exposure Draft soon, effective as early as 2012, that would require subsidiaries in the UK to shift their reporting from UK GAAP to an IFRS-based reporting regime. This shift could have tax, system, and other implications, and the required comparative periods could begin as early as 2011. To help clients understand and respond to these developments, Deloitte (United States) has published a briefing document titled IFRS: Changes in the UK Statutory Reporting Environment. This document that summarises key issues related to IFRSs and the UK statutory reporting environment, including:
- Overview of the proposal from the UK Accounting Standards Board (ASB) to replace UK GAAP with an IFRS-based reporting regime
- Impact of these statutory reporting developments on UK subsidiaries of U.S. companies
- Timeline considerations for this potential change
- Steps that US companies should take in light of these developments
Click to download IFRS: Changes in the UK Statutory Reporting Environment – Potential Implications for US Companies (PDF 188k).
|
30 April 2010: Agenda for special 4 May joint 2010 IASB-FASB meeting
 |
The IASB and FASB will hold a special joint meeting for on Tuesday, 4 May 2010, 12:30-15:45pm London time, at the IASB's offices in London. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting.
IASB-FASB Special Joint Meeting Agenda
4 May 2010, London, 12:30 - 15:45pm London Time |
|---|
|
|
30 April 2010: Deloitte's new Audit Committee Resource Guide
 |
Deloitte (United States) has published a new Audit Committee Resource Guide. The guide explains what is expected of audit committee members and what one can expect from serving on an committee, from the perspective of United States public companies. The guide covers such areas as:
- Composition and members – required expertise
- Key responsibilities
- Interaction with the internal auditors and the independent auditor
- Education and evaluation.
In each section of the guide, Deloitte outlines the rules set forth by the NYSE, the NASDAQ, the PCAOB, and other regulators, as well as leading practices and questions for audit committees to consider. Additionally, the guide references relevant tools and resources, many of which are available on Deloitte's Center for Corporate Governance. Click to download the Audit Committee Resource Guide (PDF 7,450k).
|
29 April 2010: IASB proposes to amend IAS 19 for defined benefit plans
 |
The International Accounting Standards Board (IASB) has published for public comment an exposure draft (ED) of proposed amendments to IAS 19 Employee Benefits. The proposals would amend the accounting for defined benefit plans through which some employers provide long-term employee benefits, such as pensions and post-employment medical care. In defined benefit plans, employers bear the risk of increases in costs and of possible poor investment performance. The ED proposes improvements to the recognition, presentation, and disclosure of defined benefit plans. The ED does not address measurement of defined benefit plans or the accounting for contribution-based benefit promises.
Among the amendments proposed to IAS 19 are:
- Immediate recognition of all estimated changes in the cost of providing defined benefits and all changes in the value of plan assets. This would eliminate the various methods currently in IAS 19, including the 'corridor' method, that allow deferral of some of those gains or losses.
- A new presentation approach that would clearly distinguish between different types of gains and losses arising from defined benefit plans. Specifically, the ED proposes that
the following changes in benefit costs should be presented separately:
- service cost – in profit or loss
- finance cost (ie, net interest on the net defined benefit liability) – as part of finance costs in profit or loss
- remeasurement – in other comprehensive income
The effect of presenting these items separately is to remove from IAS 19 the option for entities to recognise in profit or loss all changes in defined benefit obligations and in the fair value of plan assets.
- Improved disclosures about matters such as:
- the characteristics of the company's defined benefit plans
- the amounts recognised in the financial statements
- risks arising from defined benefit plans
- participation in multi-employer plans
|
Comment deadline on the ED Defined Benefit Plans is 6 September 2010. Click for IASB Press Release (PDF 100k).
|
29 April 2010: Proposed assurance standard on pro forma information
 |
The International Auditing and Assurance Standards Board (IAASB) has proposed a new International Standard on Assurance Engagements (ISAE) that addresses the process of compiling pro forma financial information included in prospectuses. The proposed standard, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus, deals with information that illustrates the potential impact of an event or transaction on an issuer's financial information. It provides guidance on an auditor's procedures when reporting on whether the process of compiling pro forma financial information has been properly followed. Click here for IAASB Press Release (PDF 22k), which includes a link to download the proposal from the IAASB's website. Comments are due by 30 September 2010.
|
29 April 2010: Egypt developing SME standard based on IFRS for SMEs
 |
The Egyptian Society of Accountants and Auditors is presently developing an exposure draft of a proposed Egyptian Accounting Standard for SMEs. The exposure draft is based on the IFRS for SMEs but is expected to propose several differences, including differences in the areas of leases and distributions of profits to employees. The Board of the Egyptian Society of Accountants and Auditors expects to release the proposed EAS for SMEs in 2010. However, the effective date for implementation has not yet been decided. We have created a new Egypt Country Page on IAS Plus.
|
29 April 2010: User views sought on impairment of financial assets
 |
The IASB is seeking input from users of financial statements on the proposals in its November 2009 Exposure Draft on recognition and measurement of impairment of financial assets carried at amortised cost. The exposure draft proposes to move from the 'incurred loss' model currently in IAS 39 to an 'expected loss' model (or, more precisely described, an 'expected cash flow' model). The feedback will assist the Board in its deliberations by helping it to better understand the views and preferences of investors and analysts. Two versions of the questionnaire are available:
- The abridged version has 15 questions and is in an easy-to-use survey format.
- The comprehensive version contains detailed examples and asks for comprehensive responses about the proposal.
The questionnaire closes on 30 June 2010. Click here for Link to Questionnaire on IASB Website.
|
28 April 2010: ECB concerns about fair value, convergence
 |
Gertrude Tumpel-Gugerell, member of the Executive Board of the European Central Bank (ECB), spoke on Elements for intervention on accounting issues at a conference in Paris on Paris on 27 April 2010. Click to Download Ms Tumpel-Gugerell's Remarks (PDF 56k). Here are several excerpts in which she presents the views of the ECB on fair value measurement, impairment, and convergence:
|
Fair value measurements
First, in our view fair value accounting does not provide decision-useful information to investors if the intention of an entity is to hold the assets until maturity or to settle the liabilities at their nominal amount at maturity. In these cases, recognising interim fair value changes simply heightens the volatility of the financial accounts, without providing actual 'information content'. This is typically the case for the loan book of commercial banks.
Moreover, the ECB does not agree that an entity is required to record a gain when the fair value of its own debt falls due to a decrease in its creditworthiness. The rationale being that the entity could buy back the debt and realise the profit. However, in reality and especially in times of distress, an entity does not have readily available the extra cash to buy back their debt....
Second, with regard to its application, fair value accounting poses certain operational challenges, namely when markets become illiquid and reliable market prices are no longer available. What is the use of marking-to-market when there is no market? The relevance and reliability of fair values based on market prices require a functioning market where prices adequately reflect the underlying fundamentals of the financial instrument. When the market is significantly disrupted, the use of market values may be utterly meaningless....
Hence the ECB is of the opinion that fair value measurement should only be required if it is consistent with the institution's business model and the characteristics of the particular underlying asset or liability.
Impairment of financial assets
Pre-crisis provisioning practices delayed the recognition of credit losses inherent in loans. Accounting rules require a specific trigger event, such as a default in payment to take place before allowing an entity to create provisions for credit losses. As a result, major write-offs usually accumulate during severe downturns when the inherent credit losses actually materialise, adding further stress to the financial system.
Hence, a more forward-looking provisioning methodology should be developed. This has also been a recommendation of the G20 Leaders. In this context, the ECB welcomes the recent IASB proposal for an expected cash flow approach. Despite some operational challenges that need to be resolved before its final adoption, this approach allows for a timelier recognition of expected credit losses, thereby contributing to mitigating pro-cyclicality. In this context, it should be noted that the Basel Committee has recently developed an approach which aims at reducing the complexity of the IASB's approach. The ECB urges the IASB to work together with the Basel Committee with a view to developing a workable solution to a more forward-looking provisioning approach.
This is also a good example of where the objectives of high quality accounting and safeguarding financial stability complement each other.
On that note, let me finally underline that the ECB acknowledges the work of the IASB and welcomes the progress that has been achieved in the accounting framework. We look forward to continuing the intense dialogue with the IASB on the remaining phases of the financial instruments project, as well as other accounting areas that may be of importance from a regulatory perspective.
Convergence
For all these reasons, the ECB welcomes the ongoing efforts of the accounting standard setters to achieve fully compatible, high-quality accounting standards in a direct response to the G20 request. However, we are concerned to hear that the FASB and the IASB are still far from reaching a consensus on key accounting concepts, such as the classification and measurement of financial instruments. The IASB has confirmed a 'mixed measurement model' that measures financial instruments both at amortised cost and fair value. In contrast, the US standard setter, the FASB, is determined to move towards a 'full fair value model', claiming that only fair value provides decision-useful information to investors.
I have already mentioned in my intervention how the financial crisis has blatantly revealed the flaws with this measurement and how in certain circumstances, namely when markets are dislocated, applying full fair value accounting to the financial statements of the banking sector raises financial stability concerns and does not provide decision-useful information to investors.
Just to re-emphasise, the ECB strongly opposes a full fair value approach. In this context, convergence should not come at the expense of high-quality accounting standards.
Finally, with regard to recent assertions made by the IASB and FASB that convergence is on track, I would like to highlight that we are not so optimistic. In this regard, putting in place a reconciliation mechanism that simply discloses figures at amortised cost and fair value for each item on the balance sheet would certainly not achieve the aim of convergence.
|
|
28 April 2010: El IFRS para PYMES en su bolsillo
 |
Deloitte (Colombia) has published El IFRS para PYMES en su bolsillo – the Spanish translation of IFRS for SMEs in Your Pocket, which was published earlier this month. This 45-page guide to the IFRS for SMEs is similar to Deloitte's very popular IFRSs in Your Pocket guide to full IFRSs. IFRS for SMEs in Your Pocket takes each section of the IFRS for SMEs, summarises its requirements, and highlights differences with full IFRS requirements. There is also a chronology of the development of the IFRS for SMEs and a discussion of how the IFRS for SMEs differs from full IFRSs. Click to download:
|
28 April 2010: Agenda for 6-7 May 2010 IFRIC meeting
 |
The IFRS Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 6 and 7 May 2010 (morning only on 7 May). 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, 6 and 7 May 2010 |
|---|
Thursday 6 May 2010 (10:00-18:00h)
- Introduction
- IAS 16 Property, Plant and Equipment - Accounting for production phase stripping costs in the mining industry
- IFRS 2 Share-based Payment – Vesting and non-vesting conditions
- Review of Tentative Agenda Decisions published in March IFRIC Update
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Accounting for costs included in self-constructed assets on transition
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – Reversal of disposal group impairment losses relating to goodwill
- IAS 26 Accounting and Reporting by Retirement Benefit Plans – Valuation of plan assets
- Items for Continuing Consideration
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Fixed date in derecognition exception
- IAS 1 Presentation of Financial Statements – Comparative information
- IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayment of investment/CTA
- New Items for Initial Consideration
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Repeat application
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Clarification of borrowing costs exemption
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Day 1 gains
- IFRS 3 Business Combinations – Puts on non-controlling interests
Friday 7 May (09:00-12:30h)
- IFRS 2 Share-based Payment – Vesting and non-vesting conditions (continued from previous day)
- New Items for Initial Consideration (continued from previous day)
- IAS 29 Financial Reporting in Hyperinflationary Economies – Reporting in accordance with IFRS after a period of chronic hyperinflation
- IAS 39 Financial Instruments: Recognition and Measurement – Impairment of financial assets reclassified from AFS to loans and receivables
- IAS 32 Financial Instruments: Presentation – Clarification of the puttable instruments criteria for income trust units
- IAS 12 Income Taxes – Recognising deferred tax assets for unrealised losses on AFS debt securities
- IAS 16 Property, Plant and Equipment – Amendment to clarify accounting for servicing equipment
- IAS 40 Investment Property – Change from fair value model to cost model (reconsideration)
- IAS 1 Presentation of Financial Statements – Going concern disclosures: specifying consequence of concern
- Administrative Session – IFRIC work in progress
|
|
27 April 2010: Proposed improvements to public sector standards
 |
The International Public Sector Accounting Standards Board (IPSASB) has published exposure draft (ED) 44 Improvements to International Public Sector Accounting Standards (IPSASs). ED 44 includes proposals to to maintain alignment of IPSASs with IFRSs, as well as other general improvements. Click for IPSASB Press Release (PDF 20k) which includes a link to download ED 44. Comments on the proposals are due 30 June 2010.
|
27 April 2010: CEBS 'Principles for Disclosures in Times of Stress'
|
The Committee of European Banking Supervisors (CEBS) has published Principles for Disclosures in Times of Stress. These guidelines are intended to help financial institutions consider lessons learned from the recent financial crisis in preparing their public financial disclosures. The principles build on the conclusions derived from the four assessments of banks' disclosures performed by CEBS. The guidelines encourage enhanced quality of disclosures without amending, duplicating, or adding to existing disclosure requirements or recommendations, such as those in IFRSs, Pillar 3, and listing rules. Click for:
|
26 April 2010: Agenda project pages updated
 |
We have updated the following IASB agenda project pages on IAS Plus to reflect the discussions and decisions at the IASB's April 2010 Board meeting and joint meeting with FASB:
|
26 April 2010: Special meeting tentatively planned for 4 May
|
The IASB has tentatively scheduled a special joint meeting with the FASB on Tuesday 4 May 2010 at the IASB's offices in London, tentatively planned for 12:30 to 4:45pm London time. An agenda has not yet been announced. If held, the meeting will be open to public observation and will be webcast.
|
25 April 2010: Reducing Financial Reporting Risk in Spanish
24 April 2010: IFRS Insights in Spanish
24 April 2010: Notes from April 2010 IASB meeting day 4
|
The IASB held its April 2010 monthly Board meeting at its offices in London on Tuesday to Friday, 20-23 April 2010. Portions of the meeting were joint meetings with FASB, including the entire session on 20 April. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
|
24 April 2010: Notes from April 2010 IASB meeting day 3
|
The IASB is holding its April 2010 monthly Board meeting at its offices in London on Tuesday to Friday, 20-23 April 2010. Portions of the meeting are joint meetings with FASB, including the entire session on 20 April. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
|
23 April 2010: FASB letter to Congress on derecognition accounting
 |
The US Financial Accounting Standards Board (FASB) has sent a letter to the US House of Representatives Financial Services Committee commenting on the accounting standards and relevant guidance relating to repurchase agreements for the Committee's April 20, 2010 hearing Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner. The issues discussed in the letter relate directly to the joint IASB-FASB project on Derecognition of Financial Instruments. Click to Download the FASB's Letter to the SEC (PDF 73k).
|
22 April 2010: We comment on draft XBRL IFRS taxonomy
 |
Deloitte Touche Tohmatsu has responded to the exposure draft of IFRS Taxonomy 2010, which was published in the form of proposed amendments to the 2009 Taxonomy. We continue to support the efforts of the IASC Foundation to create and maintain a high-quality taxonomy that will meet the needs of stakeholders seeking to use XBRL for financial reporting and analysis. At the same time, we believe that there are some fundamental issues regarding the taxonomy's architecture, versioning, and update process that need to be addressed separately from the 2010 update. Click to download our Comments on Draft XBRL IFRS Taxonomy for 2010 (PDF 27k). Below is an excerpt.
|
The proposed approaches to (1) referencing different versions of IFRSs from the two publications cited in the exposure draft and (2) differentiating the deprecated schema from the core schema may be viable in the short term, but they raise fundamental questions regarding taxonomy and concept-versioning that are not addressed in the exposure draft. The discussion below highlights certain limitations of the approach proposed in the exposure draft, and we therefore encourage the IASCF to consider whether a 'perpetual taxonomy' construct might be better suited for long-term use and extensibility and whether such
an approach would mitigate version-management-related issues. We also recognize, however, that other approaches may address these issues.
|
All of our past comment letters to IASB, IFRIC, and IASCF are Here.
|
22 April 2010: Notes from April 2010 IASB meeting day 2
|
The IASB is holding its April 2010 monthly Board meeting at its offices in London on Tuesday to Friday, 20-23 April 2010. Portions of the meeting are joint meetings with FASB, including the entire session on 20 April. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
|
21 April 2010: Notes from April 2010 IASB meeting day 1
|
The IASB is holding its April 2010 monthly Board meeting at its offices in London on Tuesday to Friday, 20-23 April 2010. Portions of the meeting are joint meetings with FASB, including the entire session on 20 April. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
|
20 April 2010: FASB's Valuation Resource Group meeting
 |
The US Financial Accounting Standards Board has established a Valuation Resource Group (VRG) to provide the FASB staff with information about implementation issues regarding fair value measurements used in financial reporting. The VRG met on 12 April 2010 and discussed the four issues listed below. Deloitte (United States) has published the 19 April 2010 edition of the Heads Up Newsletter (PDF 114k) explaining the four issues:
- VRG Issue No. 2010-01: FASB's and IASB's Joint Project on Fair Value Measurement and Disclosure
- VRG Issue No. 2010-02: Fair Value Measurement of Leased Investment Properties
- VRG Issue No. 2010-03: Measurement of Reacquired Rights in a Business Combination
- VRG Issue No. 2010-04: Fair Value Measurement of Accounts Receivable, Accounts Payable, and Other Accrued Liabilities
|
20 April 2010: Heads Up on PCAOB proposal
|
In our News Story of 30 March, we reported that the US Public Company Accounting Oversight Board (PCAOB) has proposed for comment an auditing standard on Communications with Audit Committees, and a series of related amendments to its interim standards. The proposal addresses requirements for auditors to communicate with audit committees of public company boards of directors. Deloitte (United States) has published an issue of the Heads Up newsletter PCAOB Issues Proposed Auditing Standard on Communications With Audit Committees (PDF 97k). The PCAOB has asked for comments on the proposal by 28 May 2010.
|
19 April 2010: Revised agenda for April 2010 IASB meeting
|
As a result of the ongoing disruption to air travel in Europe, the IASB has made changes to the agenda for this week's Board meeting. Presented below is the revised agnda for the meeting. The IASB has indicated that further changes to the agenda may be required. The meeting will be open to public observation and will be webcast. Here is a link to the Agenda as Originally Posted.
IASB Board Meeting Agenda Revised
20-23 April 2010, London |
|---|
Tuesday 20 April 2010
IASB-FASB Joint Meeting (13:15-18:45pm London Time)
Wednesday 21 April 2010
IASB-FASB Joint Meeting (10:30-18:45pm London Time)
Thursday 22 April 2010
IASB Meeting (10:00am-13:15pm London Time)
IASB-FASB Joint Meeting (13:45-17:45 London Time)
Friday 23 April 2010
IASB Meeting (09:00am-12:00pm London Time)
|
|
17 April 2010: Malaysia proposes to adopt IFRS for SMEs
|
The Malaysian Accounting Standards Board (MASB) has issued an exposure draft (ED 72 Financial Reporting Standard for Small and Medium-sized Entities) that is identical to the IFRS for SMEs. MASB's objectives in adopting the IFRS for SMEs are:
- provide improved comparability for users of accounts
- enhance the overall confidence in the accounts of SMEs
- reduce the significant costs involved of maintaining standards on a national basis
- provide a platform for growing businesses that are preparing to enter public capital markets, where application of full Malaysian FRSs (soon to be fully converged with IFRSs) is required
Click here to Download Exposure Draft 72 and the related comment questionnaire from MASB's website. Comment deadline is 30 September 2010.
|
16 April 2010: Minta pénzügyi kimutatások 2009
 |
Deloitte (Hungary) has published Nemzetközi Pénzügyi Beszámolási Standardok: Minta pénzügyi kimutatások 2009 – IFRS model financial statements for 2009 in the Hungarian language. These financial statements are a translation of the English language version. Click to download Minta pénzügyi kimutatások 2009 (PDF 1,221k). There are permanent links to all of our model IFRS financial statements Here.
|
16 April 2010: Insurance accounting newsletter in German
 |
Deloitte (United Kingdom) is publishing a series of Insurance Accounting Newsletters. We post these regularly on our IAS Plus Insurance Project Page. Deloitte (Germany) is translating selected insurance newsletters into German. The latest is:
All of the earlier insurance newsletters available in German are on our Germany Country Page.
|
16 April 2010: Liabilities versus equity
|
Deloitte (United States) has published a new issue of Heads Up discussing the proposed new classification approach developed by the FASB and IASB as part of their joint project on accounting for financial instruments with characteristics of equity. This approach would, if finalised, significantly affect the manner in which entities determine whether to classify many financial instruments as liabilities or equity and account for exercises of options and conversions of debt into equity instruments. Click to download Heads Up Newsletter (PDF 127k).
|
15 April 2010: Paul Pacter appointed to IASB Board
 |
The Trustees of the International Accounting Standards Committee (IASC) Foundation have announced the appointment of Paul Pacter as a Member of the International Accounting Standards Board (IASB). For the last six years Mr Pacter has served as Director of Small and Medium sized Entities (SMEs) for the IASB. He has also been webmaster of IAS Plus since its inception in December 2000. Mr Pacter has expressed his desire to limit his IASB term to two years, rather than the customary five year term that he was offered by the Trustees, and will therefore serve full-time from 1 July 2010 to 30 June 2012. As an IASB member, he will continue to chair the new SME Implementation Group on behalf of the IASB. Click for Press Release (PDF 152k).
|
14 April 2010: IASB-FASB progress report on convergence
 |
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today published a quarterly progress report as of 31 March 2010 on their work to improve and achieve convergence of IFRSs and US GAAP. In November 2009, the two Boards issued a Joint Statement reaffirming their commitment to improve IFRSs and US GAAP and to bring about their convergence. As part of that commitment, the Boards committed to monthly joint meetings and agreed to publish quarterly updates on progress toward convergence. Click to Download the Latest Quarterly Progress Report (PDF 69k).
|
13 April 2010: IFRS insurance accounting newsletter
 |
Deloitte (United Kingdom) has published the April 2010 issue of Insurance Accounting Newsletter. This issue is titled Standard-Setting Crunch Time. It focuses on the meetings in March 2010 between the IASB and the FASB to discuss the insurance contracts project. The newsletter summarises the matters discussed, decisions reached, and disagreements between the two boards, and notes: "After an intense schedule of joint meetings discussing insurance in March, it now appears unlikely that the exposure draft (ED) on insurance accounting will be published in May as planned." Click to download Issue 13 of the Insurance Accounting Newsletter (PDF 115k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.
|
13 April 2010: IFRS for SMEs may be used in Jordan
|
In Jordan, the Companies Law requires all public shareholding companies, general partnerships, limited partnerships, limited liability companies, private shareholding companies, and foreign companies operating in Jordan to prepare annual audited financial statements in accordance with 'internationally recognized accounting and auditing principles.' Additionally, the Jordanian Securities Commission requires all public companies to follow full IFRSs. Consequently, all companies in Jordan (listed and unlisted) follow IFRSs. As the IFRS for SMEs is an IFRS, the IFRS for SMEs may be used by all companies other than those regulated by the Jordanian Securities Commission. No special adoption of the IFRS for SMEs is needed yet in Jordan.
|
12 April 2010: IFRS for SMEs in Your Pocket – Global Edition
|
Deloitte's IFRS Global Office has published the Global Edition of IFRS for SMEs in Your Pocket. This 45-page guide to the IFRS for SMEs is similar to Deloitte's very popular IFRSs in Your Pocket guide to full IFRSs. IFRS for SMEs in Your Pocket takes each section of the IFRS for SMEs, summarises its requirements, and highlights differences with full IFRS requirements. There is also a chronology of the development of the IFRS for SMEs and a discussion of how the IFRS for SMEs differs from full IFRSs. Click to download IFRS for SMEs in Your Pocket (Global Edition) (PDF 406k).
|
12 April 2010: IFAC's Education Standards Board adopts new strategy
 |
The International Accounting Education Standards Board (IAESB) has issued its Strategy and Work Plan for 2010-2012 (PDF 136k, download from IFAC Website), which focuses on enhancing the International Education Standards (IESs) and providing guidance for IES adoption and implementation. This work will assist IFAC member bodies, regulators, employers, academics, and students by prescribing principles for the learning and development of a professional accountant. The focus of IAESB activities will be on the following:
- Revising the IESs in consideration of the IAESB's drafting conventions project, which compiled stakeholder feedback on improving the clarity of the standards;
- Developing implementation guidance for the measurable implementation of the IESs, competency frameworks, and quality control measures for education providers; and
- Promoting greater awareness among academics, regulators, and others of the IAESB's pronouncements and its role in advancing international debate on emerging issues relating to the development and assessment of professional accountants.
|
11 April 2010: Agenda for April 2010 IASB meeting
|
The IASB will hold its monthly meeting for April 2010 at its offices in London on Tuesday to Friday 20-23 April 2010 (no meeting on Monday 19 April). Portions of the meeting are joint meetings with FASB. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting.
IASB Board Meeting Agenda
20-23 April 2010, London |
|---|
Tuesday 20 April 2010
IASB-FASB Joint Meeting (13:15-18:45pm London Time)
Wednesday 21 April 2010
IASB-FASB Joint Meeting (09:00am-18:45pm London Time)
Thursday 22 April 2010
IASB-FASB Joint Meeting (08:00am-12:15pm London Time)
IASB Meeting (14:15pm-17:00pm London Time)
Friday 23 April 2010
IASB Meeting (09:00am-13:30pm London Time)
|
|
11 April 2010: Webcast – a systems perspective on IFRSs
 |
Deloitte (Canada) will present an interactive 90-minute webcast on managing information system challenges during IFRS conversion. Topics include:
- risks associated with IFRSs and your information system
- key questions to ask your CIO
- tips on handling multiple reporting requirements
- short vs long term conversion solutions and the impact on your organisation
- resource requirements to effectively manage the IT implications of IFRSs
- Webcast Topic: A Systems Perspective on IFRSs
- Date and Time: 27 April 2010, 2:00 to 3:30 pm EDT
- Speakers: Steve McCaughey, Partner, Consulting, and Hitesh Peshavaria, Senior Manager, Consulting
- More Information and Registration: Click Here
|
A Recording of the Webcast will be available two days after the webcast.
|
10 April 2010: Accounting implications of US health care reform
|
A new issue of Heads Up from Deloitte (United States) contains a report jointly prepared by Deloitte and the law firm Gibson, Dunn & Crutcher LLP that summarises matters related to financial reporting and disclosures that public entities may need to consider as a result of the recent passage of the health care reform legislation in the United States.
|
The considerations outlined in the report are intended to assist public entities in preparing their financial statements and Management's Discussion and Analysis, and in initiating dialogue with their advisors on the impact of the new legislation. While many of the accounting and disclosure considerations will apply directly to specific industries only, others will have broader applicability. Public entities should therefore consider the provisions of the Act that may directly or indirectly affect administrative or other costs (such as human resources or health care premiums).
|
Click to download Heads Up Newsletter (PDF 482k).
|
9 April 2010: Notes from special 8 April 2010 IASB meeting
 |
The IASB held a special meeting in London on Thursday, 8 April 2010 to discuss Annual Improvements, Termination Benefits and Fair Value Measurement. The FASB joined the IASB for a education discussion of the derecognition project. Several IASB members, FASB members, and FASB staff joined the meeting via video link or teleconference. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
|
9 April 2010: IFRS for SMEs can be used in Panama
 |
The IFRS for SMEs is available as an option for all entities that do not have public accountability in Panama. No specific regulation was required because IFRSs are permitted in Panama and the IFRS for SMEs is an IFRS. Many Panamanian companies have already adopted the IFRS for SMEs.
|
9 April 2010: IASB staff paper on liabilities project
|
The IASB staff have prepared a staff paper discussing one aspect of the working draft IFRS that would replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
The paper explains:
- How the recognition criteria in the working draft IFRS differ from those in the existing IAS 37
- How the new criteria would apply to liabilities arising from lawsuits
- Why the IASB is changing the criteria
The paper is intended to help people understand the recognition criteria before they comment on the revised measurement proposals in the Exposure Draft Measurement of Liabilities in IAS 37.
|
8 April 2010: Audit alert on significant or unusual transactions
 |
The US Public Company Accounting Oversight Board (PCAOB) has issued a Staff Audit Practice Alert to remind auditors of public companies about their responsibilities to assess and respond to the risk of material misstatement of the financial statements due to error or fraud posed by significant unusual transactions. Staff Audit Practice Alert No. 5 Auditor Considerations Regarding Significant Unusual Transactions compiles relevant requirements from existing PCAOB auditing standards regarding significant unusual transactions and groups them into the following categories:
- Identifying and assessing risks of material misstatement
- Responding to risks of material misstatement
- Consulting others
- Evaluating financial statement presentation and disclosure
- Communicating with audit committees
- Reviewing interim financial information
Click to download PCAOB Staff Audit Practice Alert No. 5 (PDF 144k).
|
7 April 2010: SEC seeks details on transfers of financial assets
 |
In March 2010, the Division of Corporation Finance sent a letter to certain public companies requesting information about repurchase agreements, securities lending transactions, or other transactions involving the transfer of financial assets with an obligation to repurchase the transferred assets. An illustrative letter is available on the SEC's Website (or click here for the SEC Announcement (PDF 31k)).
|
7 April 2010: IAASB consults on strategic direction and work plan
|
The International Auditing and Assurance Standards Board (IAASB) is conducting an online questionnaire survey on its strategic direction and related work program for 2012-2014. The questionnaire is the first stage of an 18-month consultation process. The results of the questionnaire will be used to develop a formal Consultation Paper, to be issued in December 2010, outlining the IAASB's strategic focus and the potential projects that might best support this focus. The questionnaire takes no more than 30 minutes to complete. Here is the link to the Online Questionnaire. Responses are requested by 14 May 2010.
|
7 April 2010: Oil & Gas IFRS training workshop
 |
Deloitte (United States) will conduct a two-day training workshop titled Oil & Gas IFRS in Houston on 16-17 June 2010. This educational program, which is open to the public, will explore the potential implications of IFRSs for the oil and gas industry, including the IASB's recent Discussion Paper on Extractive Activities (see news story immediately below). The keynote speaker will be Glenn Brady, the IASB's project manager on its extractive activities project. Details:
- Date/Time: Wednesday and Thursday 16-17 June 2010, 8:30am to 5:30pm daily
- Location: Omni Houston Hotel, Four Riverway, Houston, Texas 77056 USA, phone +1 713 871 8181
- Fees:
- US$1,200 per individual until 1 May 2010
- US$1,500 per individual on or after 2 May 2010
- Registration Information: Click Here
|
7 April 2010: IASB issues Extractive Activities discussion paper
 |
The IASB has published a Discussion Paper (DP) Extractive Activities setting out the results of an international research project on a possible future International Financial Reporting Standard for extractive activities. Extractive activities are the activities undertaken by entities when searching for, and ultimately extracting, minerals, oil or natural gas. The activities involve the following four phases:
- Exploration: the search for deposits of minerals or oil and gas
- Evaluation: assessing the quantity and quality and viability of the deposits found and the economic viability of their extraction
- Development: undertaking works to access the deposit and to construct the infrastructure necessary to extract the minerals or oil and gas
- Production: the extraction of the minerals or oil and gas from those deposits
The area of extractive industries poses some very specific challenges resulting from the uncertainties that are faced by entities pursuing extractive activities: for instance assessing the quantities that may be found and the costs involved in accessing and extracting the resources. A research team comprising members of the Australian, Canadian, Norwegian, and South African accounting standard-setters analysed and discussed accounting for extractive activities with a wide range of stakeholders to identify a possible approach for an IFRS. The DP contains the views of the project team – it does not represent the views of the Board. The DP addresses the following four questions:
- How to estimate and classify the quantities of minerals or oil and gas discovered
- How to account for minerals or oil and gas properties
- How minerals or oil and gas properties should be measured
- What information about extractive activities should be disclosed
After considering the responses received on the DP, the Board will decide whether to add the project to its active agenda. Comments are requested by 30 July 2010. Click for IASB Press Release (PDF 103k). The DP may be downloaded without charge from the IASB's Website www.iasb.org (then click on 'Comment on a Proposal'). One of the authors is Aase Lundgaard, a partner in Deloitte Norway. Click for IAS Plus Project Page.
|
6 April 2010: Accounting Roundup – first quarter 2010 review
 |
We have posted Accounting Roundup: First Quarter in Review–2010 (PDF 427k, 47 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 1Q-2010 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 January and February 2010, as well as new articles for the month of March. 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 Reexposes Proposals for the Measurement of Liabilities in IAS 37
- FASB and IASB Publish Exposure Draft on Reporting Entity Concept for the Conceptual Framework
- SEC Publishes Work Plan for Moving Forward With IFRSs for U.S. Issuers
- IASC Foundation Proposes IFRS Taxonomy 2010
- New Members Appointed to the IASB
- FCAG Issues Letter to G-20 on IASB and FASB Progress
- IASB Issues Limited Exemption Amendment to IFRS 1
|
3 April 2010: AICPA IFRS for SMEs-US GAAP Comparison Tool
|
The American Institute of CPAs (AICPA) staff have developed an IFRS for SMEs–US GAAP Comparison Tool, which is being added to collaboratively by those who use the tool. AICPA technical staff monitor and review the additions. Here is the AICPA's description:
|
The purpose of this Wiki is to provide a detailed and comprehensive comparison of the International Accounting Standards Board's International Financial Reporting Standard for Small-and Medium-Sized Entities ('IFRS for SMEs') with corresponding requirements of United States generally accepted accounting principles ('US GAAP'). But this is more than just a comparison resource, it is a Wiki. That means it is a collaborative, ongoing work in progress for anyone to contribute and use.
This Wiki is intended to be a rich resource. The AICPA Accounting Standards team decided to introduce the comparison resource during its development stage to help you learn and to learn ourselves about the similarities and differences between IFRS for SMEs and US GAAP. Anyone preparing financial statements under IFRS for SMEs in the United States and anyone interested in the differences between the two sets of accounting standards will find this comparison resource valuable.
The comparison resource will cover all sections of IFRS for SMEs. Disclosure requirements of the IFRS for SMEs sections are excluded. As the AICPA completes sections, it will add the information to the Wiki. The AICPA Accounting standards team welcomes anyone with an interest in and knowledge of IFRS for SMEs and US GAAP to read the Wiki and contribute.
Inasmuch as this Resource is a work-in-progress, the completeness and accuracy of the content varies from section to section. True to the wiki platform, the AICPA looks to AICPA members and the accounting profession to complete, correct, and improve upon the work begun by the Accounting Standards team. Sources of authoritative literature should be consulted when preparing or reporting upon financial statements.
As more fully explained [on the Wiki website], contributions to the Wiki will be monitored and reviewed by AICPA technical staff. It is expected that after all sections of the comparison resource are introduced and exposed for review and editing, the resource will be maintained and updated periodically by the AICPA.
|
Click here to access the AICPA IFRS for SMEs – US GAAP Comparison Tool (http://wiki.ifrs.com/)
|
3 April 2010: IFAC 2010 Handbooks available
 |
The International Federation of Accountants (IFAC) has published two Handbooks for 2010:
- 2010 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. This includes the International Auditing and Assurance Standards Board's (IAASB) complete set of clarified International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) 1 now in effect. It also includes the IAASB's standards on review, other assurance, and related services, a glossary, and a preface to the international standards.
- 2010 Handbook of the Code of Ethics for Professional Accountants. This book contains the revised Code of Ethics for Professional Accountants, which becomes effective on 1 January 2011, with early adoption permitted.
The handbooks can be downloaded free of charge in PDF format or purchased in print from IFAC's Publications and Resources site: web.ifac.org/publications.
|
2 April 2010: Notes from Monitoring Board meeting
 |
The IFRS Foundation Monitoring Board met with the Trustees of the IFRS Foundation at the IASB's offices in London on 1 April 2010. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting.
| Meeting of the IFRS Foundation Monitoring Board, 1 April 2010, London |
|---|
The Monitoring Board met the IASC Foundation Trustees in London. All Monitoring Board members were present, except for the Chairman of the IOSCO Emerging Markets Committee (Guillermo Larrain). However, Greg Tanzer, the IOSCO Secretary-General, represented him. The Meeting was chaired by Hans Hoogervorst, Vice-Chairman of the IOSCO Technical Committee.
The meeting was relatively brief, taking just over an hour of the 2.5 hours allocated.
IASCF governance and independence
Michel Barnier, the European Internal markets Commissioner, reiterated the EC's support for IFRSs as the only realistic option for a single set of globally-accepted, high-quality financial reporting standards. However, there are continuing concerns in Europe over the governance of the IFRS Foundation and its accountability to public authorities and the IASB's engagement with investors and prudential supervisors. Mr Barnier was challenged on both points by the Foundation's Chairman, who noted that the Monitoring Board was put in place specifically to provide the engagement with public authorities, and its membership had been determined in consultation with the European Commission. In addition, in the past 12-18 months, the IASB had greatly expanded its outreach and investor/user engagement. Finally, on all major projects, the IASB would (as it had on IFRS 3) undertake impact assessments and produce feedback statements (summarising the results of the IASB's due process and redeliberations).
Consistency of application and enforcement
Mary Shapiro, Chairman of the US Securities and Exchange Commission, noted that IOSCO was heavily involved in efforts to promote comparability and consistency of application and enforcement of IFRSs. It was, necessarily, an ongoing and iterative process. Her comments were supported by Mr Tanzer and Ethiopis Tafara (US SEC) who noted that IOSCO is sharing information among its members (including the Committee of European Securities Regulators in the EU). This information sharing was designed to identify enforcement issues and application problems, with the view to making more informed enforcement decisions. In addition, the US SEC had bilateral relations with a number of IFRS jurisdictions through which they exchanged information with the aim of avoiding contradictory enforcement positions.
The Chairman of the Japanese Financial Services Agency called for IFRIC to be more active, issue more Interpretations and be more specific about the reasons why it does not take items to its agenda.
IASCF funding
On funding for the IASCF, Mr Barnier noted that it was very important that all IFRS jurisdictions make 'realistic contributions' towards funding the IASCF. He agreed to enter into bilateral discussions with the IASCF Chairman on the level of EU funding, but noted that both the European Council and the European Parliament had to agree the budget and be satisfied that all conditions for EU funding had been met on an annual basis. Ms Shapiro stated that the SEC was working hard to find both short-term and long-term funding solutions for the US-based contributions to the IASB. She noted that financial independence is one of the SEC's milestones for accepting IFRSs for US domestic issuers, and the SEC recognises its own role in helping the IASCF to achieve that.
Post-2011 Strategic planning
The Monitoring Board will look at how it operates, how it exercises its oversight functions of the IASCF, and how it conducts its business generally. It felt that, until all members had signed the Memorandum of Understanding, it had been premature to do this exercise.
The greater demands of emerging and transition economies in the post-2011 activities of the IASB were noted, both by an IASB Trustee and by Greg Tanzer on behalf of IOSCO.
IASB stakeholder engagement
The Monitoring Board noted the enhanced outreach activities of the IASB in the past 12-18 months with approval and hoped that sufficient funding could be secured such that those efforts could be maintained or enhanced further.
This summary is based on notes taken by observers at the Monitoring Board meeting and should not be regarded as an official or final summary.
|
|
2 April 2010: Philippines has adopted the IFRS for SMEs
|
The IFRS for SMEs has been adopted in the Republic of the Philippines effective 1 January 2010. It is known as the Philippine Financial Reporting Standard for SMEs (PFRS for SMEs). In the Philippines, listed companies, large unlisted companies, financial institutions, and public utilities are all required to use full PFRSs, which are nearly identical to full IFRSs. The PFRS for SMEs must be used by any other entity that has total assets of between P3,000,000 and P350,000,000 (US$70,000 to $8,000,000) or total liabilities of between P3 million and P250 million (US$70,000 to $5,500,000). Entities below those thresholds (so-called 'micro entities') may use the PFRS for SMEs or 'another acceptable basis of accounting'. PFRSs are developed by the Philippine Financial Reporting Standards Council and approved and issued by the Securities and Exchange Commission (P-SEC). Click for:
|
1 April 2010: G20 leaders urge 'international standards'
 |
The leaders of Canada, France, Korea, United Kingdom, and United States have sent a Joint Letter (PDF 138k) to the other leaders of the G20 countries highlighting the need for continued cooperation on the regulatory reform agenda to strengthen the international financial system that they agreed to at their summit meeting in Pittsburgh in September 2009. The Statement (PDF 102k) that was issued following the Pittsburgh summit set out, as one of many goals, complete convergence of accounting standards across the G20 member nations by June 2011. In their new letter, the five leaders reiterate their call for adoption of international standards and for peer reviews to evaluate compliance. An excerpt:
|
Collectively we have been making steady progress toward stabilizing and strengthening the global financial system by fortifying prudential oversight, improving risk management, promoting transparency, and reinforcing international cooperation. While confidence in the financial system has improved, more work is required to restore the soundness of some global banks' balance sheets, to avoid leaving the global financial system vulnerable and restricting its ability to provide the credit needed to fuel sustainable economic growth....
There can be no let up in our commitment to... implementing international standards and agreeing to undergo periodic peer reviews to evaluate our adherence to these standards.
|
IAS Plus has comprehensive accounting-related resources on the global 'credit crunch' Here.
|
1 April 2010: Argentina proposes to adopt IFRS for SMEs
|
As Previously Reported on IAS Plus, Argentina will require all companies that publicly offer equity or debt securities to switch to IFRSs starting in 2012, with an option to use IFRSs in 2011 or, in some cases, 2010. On 19 March 2010, the Federación Argentina de Consejos Profesionales de Ciencias Económicas (the national professional accounting body in Argentina) issued an exposure draft proposing to adopt the IFRS for SMEs as an option for all entities not required to use full IFRSs. The exposure draft proposes that those private entities should also be permitted to use accounting standards that the Federation has issued or may issue in the future. Click for Federation's Exposure Draft on the IFRS for SMEs (PDF 32k, Spanish). The IASB has published a Spanish translation of the IFRS for SMEs (NIIF para las PYMES), available for free download Here.
|
1 April 2010: Deloitte Canada IFRS transition newsletters
 |
Deloitte Canada has published the March 2010 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:
- Assessing and Building IFRS Financial Literacy Across the Organization
- The Real Deal – the focus this month is on Provisions, Contingent Liabilities and Contingent Assets
- An update on International standard setting activities
Click below for:
Related items:
|
1 April 2010: Agenda for 8 April 2010 Special IASB meeting
|
The IASB will hold a special meeting at its offices in London on Thursday 8 April 2010. Portions of the meeting are joint with FASB. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. The special meeting on 8 April is in addition to the regular April 2010 IASB meeting which will be held on 19-23 April 2010.
IASB Special Board Meeting Agenda
8 April 2010, London |
|---|
IASB Meeting (12:45-14:15pm London Time)
IASB-FASB Joint Meeting (14:30-16:00pm London Time)
|
|
|
Print
