31 August 2010: Deloitte newsletter on IFRSs in Canada

The August edition of Deloitte Canada's IFRS newsletter Countdown has been issued. This edition focuses on: Enhancing the comparability of IFRS financial statements Canadian Securities Administrators (CSA) review on IFRS transition disclosures Summary of Deloitte IFRS publications, webcasts, and other IFRS-related events An update on international standard setting activities and IFRS developments in Canada Click here to download the August 2010 edition of Countdown (PDF 768k). A French translation is also available (PDF 1,661k). Click here to visit our Canada country page

31 August 2010: Trustees seek views on criteria for annual improvements process

The IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), today published for public comment proposed enhancements to the criteria for the IASB’s annual improvements process. The annual improvements process provides a mechanism for non-urgent but necessary amendments to International Financial Reporting Standards (IFRSs) to be grouped together and issued in one package. Such amendments may clarify guidance and wording, or make relatively minor amendments to the standards that address unintended consequences, conflicts or oversights. The suggested amended criteria for determining whether a matter relating to the clarification or correction of IFRSs should be addressed using the annual improvements process are outlined below. All criteria must be met. (a) The proposed amendment has one or both of the following characteristics: (i) clarifying—the proposed amendment would improve IFRSs by: clarifying unclear wording in existing IFRSs, or providing guidance where an absence of guidance is causing concern. A clarifying amendment maintains consistency with the existing principles within the applicable IFRSs. It does not propose a new principle, or a change to an existing principle. (ii) correcting—the proposed amendment would improve IFRSs by: resolving a conflict between existing requirements of IFRSs and providing a straightforward rationale for which existing requirement should be applied, or addressing an oversight or relatively minor unintended consequence of the existing requirements of IFRSs. A correcting amendment does not propose a new principle or a change to an existing principle, but may create an exception from an existing principle. (b) The proposed amendment has a narrow and well-defined purpose, ie the consequences of the proposed change have been considered sufficiently and identified. (c) It is probable that the IASB will reach conclusion on the issue on a timely basis. Inability to reach a conclusion on a timely basis may indicate that the cause of the issue is more fundamental than can be resolved within annual improvements. (d) If the proposed amendment would amend IFRSs that are the subject of a current or planned IASB project, there must be a pressing need to make the amendment sooner than the project would. The consultation document of the IFRS Foundation is open for comment until 30 November 2010. It can be accessed via the IASB's website. The corresponding press release is available Here (PDF 35k).

31 August 2010: FASB issues two new ASUs

The FASB has released two new Accounting Standards Updates (ASUs): Accounting Standards Update No. 2010-23 – Health Care Entities (Topic 954): Measuring Charity Care for Disclosure (a consensus of the FASB Emerging Issues Task Force) (link to FASB website) The ASU notes that IFRS does not provide any specific guidance on the disclosure of charity care. The amendments in this update are effective for fiscal years beginning after 15 December 2010. Accounting Standards Update No. 2010-24 – Health Care Entities (Topic 954): Presentation of Insurance Claims and Related Insurance Recoveries (a consensus of the FASB Emerging Issues Task Force) (link to FASB website) The ASU notes that IFRS does not permit offsetting of assets and liabilities in the circumstances described in the update. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after 15 December 2010. The updates result from the July meeting of FASB's Emerging Issues Task Force. More information about the decisions reached at the EITF meeting can be found in the EITF Snapshot (PDF 130k).

31 August 2010: Malaysian Accounting Standards Board defers IFRIC 15 equivalent

The Malaysian Accounting Standards Board (MASB) has decided to defer the application of IC Interpretation 15 Agreements for the Construction of Real Estate (IC 15) from 1 July 2010 to 1 January 2012. However, entities that wish to apply IC 15 early can do so if they wish. Beside differing application dates, IC 15 has the same requirements as IFRIC 15 (the effective date of IFRIC 15 is 1 January 2009). The MASB explains the reason for the deferral as follows: ...in light of the importance of the Real Estate sector to the Malaysian economy, the MASB Board in its deliberations on 23 August 2010 felt it would be prudent to temporarily defer the application of IC 15 to 1 January 2012. This is to allow for deliberations on the implementation of IC 15 to continue and to enable the examination of the proposed standard on Revenue from Contracts with Customers with stakeholders both locally and within the region, using its participation in the Asian-Oceanian Standard-Setters Group (AOSSG). Click for press release (link to MASB website).

30 August 2010: Summary of the June 2010 meeting of the IFRS Advisory Council

The IASB has posted to its website a summary of the June 2010 meeting of the IFRS Advisory Council. Among other topics, the Advisory Council discussed the IASB work plan post-June 2011. Members of the Council suggested that accounting for Islamic transactions and agriculture should be added to the top priorities of the IASB and that XBRL must be considered together with the disclosure framework. Click for the Advisory Council Minutes on the IASB's Website.

30 August 2010: IIROC proposes to harmonize regulatory financial reporting standards with IFRS

A proposal published by the Investment Industry Regulatory Organization of Canada (IIROC) on Friday shows that IFRS is infiltrating more widely than just financial reporting to become the global accounting language. The proposal is for moving to International Financial Reporting Standards (IFRSs) for regulatory reporting albeit with some departures in certain areas, which are, however, "limited to only situations where the effort and cost to converge outweigh the regulatory value or benefit of complying with IFRS". The proposal is available on the IIROC's website; comments are due within 60 days of the publication of the notice. More information on financial reporting in Canada is available on our country page for Canada.

30 August 2010: Deloitte IFRS newsletter in Japanese

Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation of the following IFRS in Focus newsletter: IASB issues Exposure Draft on Lease Accounting (PDF 334k). Here is the English Version (PDF 111k) We have put permanent links to all Japanese translations of the IFRS in Focus newsletters on our Japan Page. The Japan Center of Excellence IFRS web pages are Here (in Japanese).

29 August 2010: Deadline reminder – EDs on defined benefit plans and uncertainty analysis disclosure

We remind you that comments on the Exposure Drafts Defined Benefit Plans and Fair Value Option for Financial Liabilities are due on 6 September 2010 and 7 September 2010, respectively. The ED on defined benefit plans was issued on 29 April 2010 and 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. The ED on uncertainty analysis disclosure was issued on 29 June 2010 and would require the measurement uncertainty analysis disclosure to reflect the interdependencies between unobservable inputs used to measure fair value in Level 3 of the three-level fair value hierarchy.

27 August 2010: New Accounting Alert from Deloitte New Zealand

Deloitte (New Zealand) has published a new Accounting Alert (PDF 237k) discussing the following topics: IASB developments in lease accounting, revenue recognition and insurance contracts Possible relief for entities affected by the NZ Budget 2010 removal of tax depreciation on buildings (see our earlier story) Other topics, including proposals to harmonise Australian and New Zealand equivalents of IFRS (see our earlier story) and the NZ Securities Commission review of corporate governance disclosures by selected issuers. Click to download the Accounting Alert (PDF 237k). Past editions of the New Zealand Accounting Alerts are available here.

26 August 2010: IASB proposes amendments to IFRS 1

The International Accounting Standards Board (IASB) today published for public comment proposed amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards. The proposal would amend IFRS 1 by replacing references to a fixed transition date of ‘1 January 2004’ with ‘the date of transition to IFRSs’. As a result, entities adopting IFRSs for the first time would not have to restate derecognition transactions that occurred before the date of transition to IFRSs. In addition, first-time adopters would also not have to recalculate ‘day 1’ differences on initial recognition of financial instruments, where the transaction occurred before the date of transition to IFRSs. The Basis for Conclusions states: IFRS 1 First-time Adoption of International Financial Reporting Standards requires a first-time adopter to restate past derecognition transactions that occurred after 1 January 2004. This requirement was included in IFRS 1 as a result of the revision to IAS 39 Financial Instruments: Recognition and Measurement in 2003, to place entities then adopting IFRSs for the first time in the same position as existing IFRS users at that time. As time passes, the fixed transition date of 1 January 2004 becomes more remote and increasingly less relevant to the financial reports of additional jurisdictions that will adopt IFRSs. The exposure draft Removal of Fixed Dates for First-time Adopters is open for comment until 27 October 2010. It can be accessed via the IASB's website. The IASB's press release is available here (PDF 98k). Our related project page offers a summary of the discussions leading up to the publishing of the exposure draft.

26 August 2010: IFRS Interpretations Committee publishes proposed guidance on surface mining

The IFRS Interpretations Committee, the interpretative body of the IASB, has today published for public comment proposed guidance on the accounting for stripping costs in the production phase of a surface mine. The draft Interpretation considers the following questions: (a) Is the definition of an asset met? (b) When should the stripping campaign component be recognised? (c) How should the stripping campaign component be measured initially? (d) How should the stripping campaign component be measured subsequently? The IFRS Interpretations Committee has reached the conclusion that costs associated with a ‘stripping campaign’ should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign. DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine is open for comment until 30 November 2010. It can be accessed via the IASB's website. The IASB's press release is available here (PDF 35k). Our related project page offers a summary of the discussions leading up to the publishing of the draft Interpretation.

25 August 2010: IFRS Foundation Education Initiative publishes briefing for chief executives

The IFRS Foundation Education Initiative has published the 2010 edition of International Financial Reporting Standards – Briefing for Chief Executives, Audit Committees and Boards of Directors to the eIFRS site. These briefing notes provide summaries of all IFRSs issued at 1 July 2010 at a high level and in non-technical language. It's specially prepared for chief executives, members of audit committees, company directors and others who want a broad overview of IFRSs and of the business implications of implementing them. The electronic PDF is available in the eIFRS Online Subscriber Area of the IASB's website for access by both Comprehensive and eIFRS subscribers.

25 August 2010: FASB issues two new proposed ASUs resulting from the July EITF meeting

The FASB has released two new proposed Accounting Standards Updates (ASUs): Proposed Accounting Standards Update – Health Care Entities (Topic 954): Accounting for Legal Costs Associated with Medical Malpractice and Similar Claims (a consensus of the FASB Emerging Issues Task Force) (link to FASB website) Proposed Accounting Standards Update – Other Expenses (Topic 720): Fees Paid to the Federal Government by Pharmaceutical Manufacturers (a consensus of the FASB Emerging Issues Task Force) (link to FASB website) The proposals result from the July meeting of FASB's Emerging Issues Task Force. The comment period for both proposals closed on 8 October 2010. Both proposed ASUs note there is no equivalent guidance under IFRS on the topics with which they deal. More information about the proposals can be found in EITF Snapshot (PDF 130k), which summarises the 29 July 2010 EITF meeting.

25 August 2010: FASB expands from 5 to 7 members, Chairman Herz retires

The Board of Trustees of the United States Financial Accounting Foundation (FAF) has announced that the Financial Accounting Standards Board (FASB) will grow from five to seven members. In addition, FASB Chairman Robert Herz has decided to retire from the FASB after more than eight years leading the standard-setting board. FASB member Leslie Seidman has been appointed Acting Chairman, effective October 1, 2010. The FASB previously operated with seven board members from its inception in 1973 until 2008. The transition to a seven-member board will occur as soon as the process to recruit and evaluate candidates is complete, which the FAF expects to occur in early 2011. Chairman Jack Brennan, FAF Chairman said: "Returning the Board to the seven-member structure will enhance the FASB’s investment in the convergence agenda with the International Accounting Standards Board (IASB), while addressing the unprecedented challenges facing the American capital markets in the months and years ahead" Click here to go to the FAF press release (link to the FAF website).

24 August 2010: Notes from special August IASB meeting

The IASB met in London on 24 August 2010 for a second special meeting for the month. The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic): Financial Instruments: Amortised Cost and Impairment Financial Instruments: Hedge Accounting Income taxes Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting. The next IASB meeting is currently scheduled for 13-17 September 2010.

24 August 2010: Newsletter on leases proposals

Deloitte's IFRS Global Office has published an IFRS in Focus Newsletter – IASB issues Exposure Draft on Lease Accounting (PDF 128k). On 17 August 2010, the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) published a joint exposure draft ED 2010/9 Leases. The ED would eliminate the distinction between operating leases and finance leases and would introduce new accounting models for lessees and lessors. Lessees would no longer be permitted to treat leases as “off-balance sheet” financings but instead would be required to recognise an asset and liability for all leases within the scope of the proposals. Click for: IFRS in Focus Newsletter – IASB issues Exposure Draft on Lease Accounting (PDF 128k) Past editions of IFRS in Focus Our Leases project page

24 August 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 some of these newsletters into German. The latest is: Versicherungsbilanzierung 12: Der Beginn einer neuen Zeitrechnung (PDF 408k) Translation of UK Issue 17: The start of a new accounting era (PDF 148k) The newsletter provides a detailed analysis of the main provisions in the Exposure Draft issued on 30 July by the IASB to revise substantially IFRS 4 Insurance Contracts. All of the earlier insurance newsletters available in German are on our Germany Country Page.

24 August 2010: New issue of the IASB's Investor Perspectives

In April 2010, the Trustees of the IFRS Foundation and the IASB launched a programme to enhance investors’ participation in the development of International Financial Reporting Standards (IFRSs). One of the enhancements is a newsletter for investors. Board members Stephen Cooper, Patrick Finnegan and Patricia McConnell publish timely updates on financial reporting matters. A new issue of the Investor Perspectives is now available: 23 August 2010 - Patrick Finnegan: Some things we are certain about, other things we just don't know - a proposal to analyse uncertainty All Investor Perspectives are archived on the IASB's website.

24 August 2010: New IAESB education handbook

The International Accounting Education Standards Board (IAESB) has released the 2010 edition of its Handbook of International Education Pronouncements. The 2010 handbook contains the IAESB's suite of eight International Education Standards (IESs), including the Framework for International Education Standards for Professional Accountants (the Framework), as well as three International Education Practice Statements. The handbook can be downloaded free of charge in PDF format from IFAC's Publications and Resources site. Printed copies can also be ordered. The IFAC press release announcing the publication of the handbook is available here (link to IFAC website).

24 August 2010: Japanese translation of IFRIC Review

Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation (PDF 391k) of the July 2010 edition of our IFRIC Review newsletter, discussing the IFRS Interpretations Committee meeting held on 8-9 July 2010. Here is the English Version (PDF 84k). We have put permanent links to all Japanese translations of the IFRIC Review newsletters on our Japan country page. The Japan Center of Excellence IFRS web pages are Here (in Japanese).

23 August 2010: Two publications available in Spanish

We have posted the following Spanish language publications from Deloitte (Colombia). You will find all of our resources in Spanish Here. IFRS Alert 10-1, Julio 15, 2010 – Implicaciones, para la contabilidad del cambio de moneda, de las recientes acciones gubernamentales en Venezuela (PDF 42k) Spanish version of: IFRS Alert 10-1, 15 July 2010 – Foreign currency exchange accounting implications of recent government actions in Venezuela (PDF 67k) Heads Up – Volumen 17 – No. 24 – Julio 2010 – FASB llega a “ALL”-in, Requiere que las entidades muestren sus cartas. La Junta mejora las revelaciones sobre la calidad del crédito para la financiación de créditos y para la provisión de pérdidas en el crédito. (PDF 41k)

23 August 2010: New law promotes adoption of IFRS in Russia

The State Duma of the Russian Federation has passed a Law On Consolidated Financial Statements which had remained untouched since almost the end of 2004. On 17 December 2004 the State Duma actually approved the law in the second reading but no attempts to hold the third and final reading of the law were made. The final reading of the draft law finally took place on 7 July 2010, and Russia’s President Dmitry Medvedev recently signed it into law. The law applies to banks, insurance companies, and all companies that have securities accepted to trades at domestic exchanges. It requires these entities to produce, submit to regulators and publish financial statements in accordance with the International Financial Reporting Standards (IFRS). The Law states that IFRS statements are to be produced in addition to statements under the Russian Accounting Standards (RAS) and not in their stead. Requirements formulated in the new Law will come into effect following a formal recognition from the Government and Central bank. The Law does not present a mechanism or a timeline for such recognition, but it is expected to take place some time between 2012 and 2015. More information about the financial reporting framework in Russia is available on our IAS Plus country page for Russia.

22 August 2010: Agenda for 2-3 September 2010 Interpretations Committee meeting

The IFRS Interpretations Committee will meet at the IASB's offices in London on Thursday and Friday 2 and 3 September 2010 (morning only on 3 September). The meeting is open to the public and will be webcast. The tentative agenda is shown below. Agenda for the Interpretations Committee Meeting Thursday and Friday, 2 and 3 September 2010 Thursday 2 September 2010 (10:00h-18:00h) Introduction/ Administrative Session IFRS 2 Share-based Payment – Vesting and non-vesting conditions IFRS 2 Share-based Payment – Accounting for share-based payment awards upon an entity’s termination of an employee IAS 27 Consolidated and Separate Financial Statements – Put options written over non-controlling interests Review of Tentative Agenda Decisions published in July IFRIC Update IFRS 1 First-time Adoption of International Financial Reporting Standards – Repeat application IAS 12 Income Taxes – Recognising deferred tax assets for unrealised losses on AFS debt securities IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayment of investment/CTA New Items for Initial Consideration IAS 1 Presentation of Financial Statements – Encouraged v required disclosures (continued on Friday morning as needed) IAS 1 Presentation of Financial Statements – Comparatives in financial statements IAS 36 Impairment of Assets – Accounting for impairment testing of goodwill when non-controlling interests are recognised Friday 3 September (09:00-11:45h) IFRS 2 Share-based Payment – Vesting and non-vesting conditions (continued from previous day if needed) IAS 27 Consolidated and Separate Financial Statements – Put options written over non-controlling interests (continued from previous day if needed) New Items for Initial Consideration IAS 24 Related Party Disclosures – Key management personnel IAS 36 Impairment of Assets – Calculation of value in use IAS 19 Employee Benefits – Accounting for statutory employee profit sharing arrangements IFRS 2 Share- based Payment – Share-based payment awards settled net of tax withholdings IAS 1 Presentation of Financial Statements – Current/non-current classification of callable term loan Administrative Session – Interpretations Committee work in progress

20 August 2010: FASB webcast on revenue recognition project

On Thursday 26 August 2010, the FASB will hold a webcast to discuss the potential effects of the Exposure Draft Revenue from Contracts with Customers on current practices relating to accounting for real estate transactions. The Exposure Draft is open for public comment until 22 October 2010. The live webcast is offered free of charge. Viewers will have the opportunity to email questions to panelists during the event. Topic: Revenue Recognition Project: Potential Effects on the Real Estate Contracts Date and time: 26 August 2010, 2:00pm Eastern Daylight Time More information on the webcast and registration: Click Here More information about the revenue project on IAS Plus: Click Here

20 August 2010: IASB staff draft of IFRS on Fair Value Measurement

The IASB has posted to its website a staff draft of a forthcoming IFRS on fair value measurement, reflecting the tentative decisions made to date by the IASB and the FASB. The IASB's initial exposure draft on fair value measurement was issued in May 2009 and has been followed up a number of requests for information and feedback, including an additional limited scope exposure draft issued in June 2010. The IASB is not requesting comments on the staff draft, but notes the FASB issued a nearly identical proposed Accounting Standards Update (ASU) Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. Accordingly, constituents may wish to comment on the proposals by submitting a comment letter to the FASB prior to the end of the comment period for the proposed ASU (7 September 2010). The IASB and FASB expect to jointly consider comments received in developing a joint standard, which is expected to be issued early in 2011. Click for: Access to IASB staff draft (link to IASB website) Our Fair Value Measurement page IFRS in Focus newsletter IASB issues Exposure Draft on Fair Value Measurement Disclosures (July 2010, PDF 60k) IAS Plus Newsletter Exposure Draft Proposes Expanded Guidance on Fair Value Measurement (June 2009, PDF 71k) Heads Up Converging on Fair Value - FASB Proposes Guidance on Fair Value Measurement and Disclosure (June 2010, PDF 122k).

20 August 2010: FASB posts staff draft of ASU on insurance contract costs

The FASB has posted a staff draft of the Final Accounting Standards Update (ASU) Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the FASB Emerging Issues Task Force). The draft ASU results from the July EITF meeting, where the EITF reached a final consensus on which costs incurred during the acquisition of new or renewal insurance contracts are eligible to be deferred and subsequently amortised ('deferred acquisition costs' (DAC)). In relation to a comparison with IFRS, the draft ASU notes: The guidance on deferred acquisition costs under IFRS is limited and is subject to significant judgment. IFRS neither prohibits nor requires the deferral of acquisition costs, nor does it prescribe which acquisition costs are deferrable, the period and method of their amortization, or whether an insurer should present deferred acquisition costs as an asset or as a reduction in insurance liabilities. Click for: Staff draft of Final Accounting Standards Update (ASU) Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the FASB Emerging Issues Task Force) EITF Snapshot (PDF 130k) summarising the 29 July 2010 meeting of FASB's Emerging Issues Task Force

20 August 2010: Upcoming Deloitte webcast on lease accounting exposure draft

On Friday 10 September 2010, Deloitte (United States) will present a live webcast on the exposure draft Leases. The webcast will discuss: Key provisions and concepts for lessor and lessee accounting Potential implications for organisations' operations and accounting systems Timelines for the comment letter process, roundtable discussions, final draft, and adoption. There is no charge to attend the web presentation, but you need to register to participate. Details: Topic: FASB's Exposure Draft on Lease Accounting: A Closer Look at the Proposed Guidance Date and time: 10 September, 2:00pm EDT (US) More information on the webcast and registration: Click Here More information about the leases project on IAS Plus: Click Here

19 August 2010: FASB delays comment deadline for proposed ASU on contingencies

The FASB has extended the comment deadline on its proposed Accounting Standards Update Contingencies (Topic 450): Disclosure of Certain Loss Contingencies to 20 September 2010. The original comment deadline was 20 August 2010, but was extended because of feedback from respondents noting the need for more time to provide adequate comments. Click here to read the news release (link to FASB website).

19 August 2010: FASB issues proposed ASU on defined contribution pension plans

The FASB has issued a proposed Accounting Standards Update (ASU) Plan Accounting—Defined Contribution Pension Plans (Topic 962): Reporting Loans to Participants by Defined Contribution Pension Plans (A consensus of the FASB Emerging Issues Task Force). The summary section provides a comparison to IAS 26 Accounting and Reporting by Retirement Benefit Plans.

19 August 2010: Annual report of the UK FRRP

The Financial Reporting Review Panel (FRRP) of the UK Financial Reporting Council (FRC) has published its annual report 2010. The FRRP is responsible for ensuring that the annual accounts of public companies and large private companies comply with the requirements of the Companies Act and applicable accounting standards. An excerpt from the FRRP findings: Conclusion The Panel found continuing improvement in the general quality of IFRS financial reporting. It was particularly pleased to note improvements in the description of significant accounting policies and the disclosure of judgements made by Boards in applying those policies. However, in two areas, capital management and share‐based payment disclosures, reporting was sometimes poor in terms of content, extent and usefulness. The Panel believes that, as the economy stabilises, these areas will assume greater significance in corporate reports. The FRC will, therefore, conduct a targeted review of these matters. The results of the reviews are to be published in the autumn.. Click for: FRRP annual report (PDF 320k, link to FRC website) Our UK country page

19 August 2010: Update on New Zealand deferred tax issue

We posted an earlier story regarding issues arising in New Zealand related to deferred tax accounting for certain buildings for which tax depreciation had been removed by a tax law change. The effect of the tax law change is resulting in many New Zealand companies recognising a deferred tax liability in respect of existing buildings, significantly impacting profits. These issues are related to the IASB's current consideration of an exemption to the principles of IAS 12 Income Taxes for certain revalued assets. The New Zealand Financial Reporting Standards Board (FRSB) recently held a meeting where the issue was further discussed. The FRSB considered, but ultimately rejected, a proposal to modify the New Zealand equivalent of IAS 12 to permit an exemption from the recognition of deferred taxes on affected buildings. This decision was communicated to the New Zealand Accounting Standards Review Board (ASRB) and an updated Communiqué was issued on 18 August 2010 confirming that deferred tax should be recognised in many instances. In respect of a possible departure from IFRSs, the Communiqué states: ...this would mean that NZ IFRS is no longer aligned with IFRS, and so the financial statements for profit-oriented entities would not comply with both local and international accounting standards - thereby undermining the fundamental objective of New Zealand's adoption of IFRS. Therefore, while the Boards acknowledge the serious concerns that have been raised about the accounting impact of the recent tax changes for entities to comply with NZ IAS 12, the suggestion to make changes to (or provide exemptions from) the standard is not a viable solution, both because of time constraints and the wider implications for the New Zealand financial reporting framework. Click for: Updated ASRB/FRSB Communiqué (link to ASRB website) Deloitte (New Zealand) Special Accounting and Tax Alert (PDF 131kb). Past alerts are available Here Related discussion on deferred taxes at the July 2010 IASB meeting Our Income Tax project page Our New Zealand country page.

18 August 2010: IASB issues editorial corrections to leases ED

The International Accounting Standards Board (IASB) has released a number of editorial corrections to ED/2010/9 Leases, published yesterday. ED/2010/9 is open for comment until 15 December 2010. Click for: Access to the updated exposure draft (link to IASB website) Our Leases project summary

18 August 2010: Deloitte global press release on IASB and FASB proposals to overhaul lease accounting

Deloitte has published a global press release on the IASB and FASB proposals to overhaul lease accounting. The IASB and FASB proposals would creates a new accounting model for both lessees and lessors and eliminates the concept of operating leases. Excerpts from the press release: "As leasing is such a common transaction, this proposal would, no doubt, affect companies around the globe and across all industries," said Joel Osnoss, Global IFRS Leader, Clients & Markets, Deloitte Touche Tohmatsu Limited. "Many of the proposed requirements could prove time-consuming to adopt, which makes a well-thought-out work plan critical to a smooth transition to the new accounting rules. Companies that use leasing should start thinking today about how this proposal could affect their financial statements, and should consider the need to make changes to lease structuring, performance metrics, debt covenants, and systems. Education of key stakeholders will also be necessary." The IASB has stated that the comment period will end on 15 December 2010, with the final standard due for publication in June 2011. The effective date of the new leasing standard is still uncertain. The proposed transition requirements would not grandfather any existing leases. Therefore, lessors and lessees that enter into longer-term leases will need to consider the potential affect of the proposed rules on existing leases. Click for: Full Deloitte press release Access to the IASB exposure draft (link to IASB website) Proposed Accounting Standards Update - Leases (Topic 840) (link to FASB website) Our Leases project summary

18 August 2010: Heads Up on leases proposals

Deloitte (United States) has published a new Heads Up newsletter (PDF 222k) discussing the exposure draft (ED) Leases, issued by the FASB and IASB. The ED, released by the FASB as a proposed Accounting Standards Update (ASU), creates a new accounting model for both lessees and lessors and eliminates the concept of operating leases. The proposed ASU, if finalised, would converge the FASB's and IASB's accounting for lease contracts in most significant areas. The table below, reproduced from the newsletter, highlights the most significant provisions of the proposed lease accounting model: Lessees Lessees will recognize a right-of-use asset and a liability for their obligation to make lease payments for all leases. "Off-balance-sheet" leases and the concept of "lease classification" in the current accounting model will no longer exist for lessees. For leases previously classified as operating leases, rent expense will be replaced with amortization expense and interest expense. Amortization of the right-of-use asset will generally be on a straight-line basis; however, interest expense will be front-end loaded (i.e., like interest on an amortizing mortgage). Under an expected-outcome approach, the lessee recognizes contingent rentals and residual value guarantees as part of the lease liability. The lessee bases its inclusion of rentals for renewal periods in the lease liability on the longest possible term that is more likely than not to occur. Unlike the current lease accounting model, the new model requires an assessment of whether there are new facts and circumstances that would significantly change the lessee's estimate of contingent rents and renewal periods as of each reporting period. The identification of nonlease components (e.g., maintenance costs in certain arrangements) will become more important under the new model. Total lease-related expense will be front-end loaded, unlike current operating lease treatment. Rising asset prices, or a lessee entering into an increased number of new leases, could result in net income remaining lower than the amount that would be achieved under current operating lease accounting – even as old leases expire. Because rental expense is not recorded under the new model, EBITDA will be higher than it is under current operating lease accounting. Lease payments will be treated as financing cash outflows in the statement of cash flows. Under current U.S. GAAP, operating lease rent payments are treated as an operating cash flow. Lessors The proposed ASU includes two accounting models for lessors. A lessor that retains exposure to significant risks or benefits associated with the underlying asset would apply the performance obligation approach; otherwise, the lessor would apply the derecognition approach. Under the performance obligation approach, the leased asset remains on the lessor's books. The lessor records (1) a receivable for the expected lease payments and (2) a corresponding performance obligation liability (essentially, deferred revenue). Under the derecognition approach, a portion of the leased asset is removed from the lessor's books. The lessor records (1) a receivable (and income) for the expected lease payments and (2) a residual asset representing the right to the underlying asset at the end of the lease term. Expense would be recognized for the portion of the leased asset that is removed from the lessor's books. Income and expense may be presented net depending on the lessor's business model. The FASB has a separate project to consider whether owners of investment properties (e.g., certain lessors of real estate) should be required to record those properties at fair value. Business Consequences An increase in assets and liabilities could result in lower asset turnover ratios, lower return on capital, and an increase in debt-to-equity ratios. This could affect borrowing capacity or compliance with loan covenants. The elimination of "off-balance-sheet" financing eliminates one of the advantages of leasing for lessees. This could result in a push toward shorter term leases or buying an asset rather than leasing it. Lessees would need to balance this consideration with potentially higher rents for shorter-term leases as well as reduced amortization periods for leasehold improvements (which would generally result from a shorter lease term). In addition, the other benefits of leasing – flexibility to change locations or equipment, reduced property management responsibilities, potential for financing 100 percent of the asset cost, improved cash flows, etc. – remain unchanged. Accounting systems will most likely need to be enhanced or updated to address the new standard – lease contract management systems will need to be more closely integrated with lease accounting systems. The new model will result in additional temporary differences for income tax accounting purposes. In addition, state and local taxes will be affected when the computation (or impact) of taxes is based on U.S. GAAP amounts. Click for: Heads Up newsletter FASB Draws a Bright Line Through Operating Leases - Proposed ASU Revamps Lease Accounting (PDF 222k) Heads Up archive Proposed Accounting Standards Update - Leases (Topic 840) (link to FASB website) IASB ED/2010/9 Leases (link to IASB website) Our Leases project summary

18 August 2010: Deloitte (UK) press release on IASB leases proposals

Further to our earlier story, Deloitte (United Kingdom) has published a press release on the IASB's proposals in ED/2010/9 Leases. Excerpts from the press release: Veronica Poole, head of the Deloitte Global IFRS Leadership Team, said: "The proposals mean that all leases would be brought onto the balance sheet as liabilities, along with their matching assets. It means that IASB Chairman, Sir David Tweedie, may yet achieve his oft-repeated ambition of flying on an aircraft which actually appears on that airline's balance sheet" Mark Beddy, UK audit partner in the Deloitte real estate practice, commented: "In the long-term, we believe that the accounting changes in the treatment of property leases will transform the way many companies approach property strategies. Property in general will need to become a much more strategic business issue. Forced to view property as having a balance sheet liability, companies will have to give much more consideration to how to manage and reduce it." Click for: Full Deloitte (UK) press release Access to the exposure draft (link to IASB website) Our Leases project summary

17 August 2010: Spanish Heads Up on financial statement presentation

We have posted the following Spanish language Heads Up publication from Deloitte (Colombia). You will find all of our resources in Spanish Here. Heads Up – Volumen 17 – No. 22 – Julio 8, 2010 – Respecto de la cara del estado financiero. FASB propone cambios profundos a la presentación del estado financiero (PDF 44k)

17 August 2010: IASB and FASB publish proposals to improve the financial reporting of leases

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today published for public comment joint proposals to improve the financial reporting of lease contracts. The proposals are one of the main projects included in the boards' Memorandum of Understanding. The proposals, if adopted, will greatly improve the financial reporting information available to investors about the financial effects of lease contracts. The accounting under existing requirements depends on the classification of a lease. Classification as an operating lease results in the lessee not recording any assets or liabilities in the statement of financial position (balance sheet) under either International Financial Reporting Standards or US standards (generally accepted accounting principles). This results in many investors having to adjust the financial statements (using disclosures and other available information) to estimate the effects of lessees' operating leases for the purpose of investment analysis. The proposals would result in a consistent approach to lease accounting for both lessees and lessors–a ‘right-of-use' approach. Among other changes, this approach would result in the liability for payments arising under the lease contract and the right to use the underlying asset being included in the lessee's statement of financial position, thus providing more complete and useful information to investors and other users of financial statements. ED/2010/9 is open for comment until 15 December 2010. Click for: IASB press release (PDF 21k) Access to the exposure draft (link to IASB website) Our Leases project summary As part of their additional outreach, the boards are seeking entities that would be willing to take part, on a confidential basis, in field work to discuss and test the provisions of their proposals for lease accounting. The purpose of the field work is to assess the operationality and the costs and benefits of the proposed new standard. More Information is available in the IASB press release.

17 August 2010: Agenda for the special 24 August IASB meeting

The IASB will hold an additional Board meeting on 24 August 2010 from 11:00 to 15:00 to discuss the Financial Instruments project and Income Taxes. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. IASB Board Meeting Agenda 24 August 2010, London Tuesday 24 August 2010 IASB Meeting (11:00-15:00) Financial Instruments – Hedge Accounting Financial Instruments – Amortized cost and impairment Income Taxes

17 August 2010: Japanese and United States standard-setters meet to discuss global convergence

Representatives of the Accounting Standards Board of Japan (ASBJ) and United States Financial Accounting Standards Board (FASB) met on 12-13 August 2010 to discuss global convergence of accounting standards. The meeting, held in Tokyo, discussed recent developments in both boards' convergence projects with the IASB, as well as the IASB's projects on financial instruments, revenue recognition and leases. Ikuo Nishikawa, Chairman of the ASBJ, commented: We commend the FASB's continuing work on convergence with the IASB towards a single set of high-quality, global accounting standards. We would also like to support the FASB's efforts to reconcile differences with the IASB to develop converged guidance on the accounting for financial instruments. Click for full press release (PDF 45k).

16 August 2010: IASB webcast on lease accounting exposure draft

On Wednesday 18 August 2010 IASB staff will present a live webcast to discuss the exposure draft Leases which is expected to be published tomorrow. The webcast will summarise the proposals on lease accounting, and follows on from the lease webcasts that were presented on 10 June 2010 and 31 March 2010. This webcast will be followed by a question and answer session. There is no charge to attend the web presentation, but you need to register to participate. Topic: Lease accounting exposure draft Date and time: 18 August, 10:30am London time, repeated 3:30pm London time More information on the webcast and registration: Click Here More information about the leases project on IAS Plus: Click Here

16 August 2010: SEC calls for views on aspects of possible IFRS transition

The Securities and Exchange Commission (SEC) has released two Requests for Comment on behalf of its staff on a number of topics related to its ongoing consideration of incorporating International Financial Reporting Standards (IFRS) into the financial reporting system for United States issuers. On 24 February 2010, the SEC issued a Statement in Support of Convergence and Global Accounting Standards, reiterating its belief "that a single set of high-quality globally accepted accounting standards will benefit U.S. investors and that this goal is consistent with our mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation". In that Statement, the SEC directed its staff to develop and execute a work plan considering specific areas and factors about the potential transition to a system incorporating IFRS. Consistent with this directive, the two Requests for Comment issued seek views on the following topics: Release 1 - Investor and logistics perspectives (No. 33-9133) Investors' current knowledge of IFRS and preparedness for incorporation of IFRS Investors' education processes on changes in accounting standards and timeliness of such education Extent of, logistics for, and estimated time necessary to undertake any necessary changes Release 2 - Impacts on other arrangements and requirements (No. 33-9134) Contractual arrangements (e.g. financial covenants, lease contracts, employee compensation, earn-out provisions) Corporate governance: stock exchange listing requirements Statutory distribution restrictions and other legal standards tied to financial reporting standards Comments close 60 days after publication of the Requests for Comment in the United States Federal Register. Click for: SEC release 33-9133 (link to SEC website) SEC release 33-9134 (link to SEC website) Our SEC page.

13 August 2010: Conceptual Framework for Financial Reporting by Islamic Financial Institutions

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued two new accounting standards, one of which is a conceptual framework for financial reporting by Islamic financial institutions. The AAOIFI is an Islamic international autonomous non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Shari'a standards for Islamic financial institutions and the industry. It was founded in 1991 and has so far issued a total of 42 standards covering the areas of accounting, auditing, ethics, and governance for Islamic financial institutions (an English 2010 edition of the standards is available via the AAOIFI website). Accounting Standards for financial reporting by Islamic financial institutions have to be developed because in some cases Islamic financial institutions encounter accounting problems because the existing accounting standards such as IFRSs or local GAAP were developed based on conventional institutions, conventional product structures or practices, and may be perceived to be insufficient to account for and report Islamic financial transactions. Shariah compliant transactions that observe the prohibition to charge interest may not have parallels in conventional financing and therefore, there may be significant accounting implications. The current approach to developing financial standards for Islamic transactions is to benchmark against international standards such as IFRSs to ensure consistency with globally accepted standards and modifying them, where necessary, in order to ensure financial statements present fairly the financial position, financial performance and cash flows of the Islamic financial institution. Click for: AAOIFI website Draft of the conceptual framework for financial reporting by Islamic financial institutions (PDF 263k) (translation of the final standard not yet available) IOSCO Islamic Capital Market Fact Finding Report (PDF 611k) Website of the yearly World Islamic Banking Conference Islamic Finance at Deloitte: "No interest...but plenty of attention"

12 August 2010: Deloitte comment letters on tentative agenda decisions

Deloitte's IFRS Global Office has submitted letters of comment to the IFRS Interpretations Committee on two tentative agenda decisions: Comment letter on tentative agenda decision: IFRS 1 First-time Adoption of International Financial Reporting Standards – Repeat application of IFRS 1 (24k) Comment letter on tentative agenda decision: IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayments of investments (24k) We agree with the decision not to add the IFRS 1 project to the IFRS Interpretation Committee's agenda, and we agree that the IASB should clarify the guidance relating to the repeat application of IFRS 1 as part of its annual improvements project. We understand the reasons for the decision not to include the IAS 21 on the agenda, but we encourage the IASB to include this issue in a future review of IAS 21. All of our past letters of comment to the IASB are Here.

12 August 2010: Heads Up on the Dodd-Frank Wall Street Reform

Further to our story of 16 July, Deloitte (United States) has published a new Heads Up Newsletter (PDF 173k) discussing certain aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, in particular those that have, or might have, financial reporting implications. Click for: Heads Up Newsletter The Final Act Financial Reporting Implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act (PDF 173k) Heads Up archive

12 August 2010: Newsletter on insurance contracts proposals

Deloitte's IFRS Global Office has published an IFRS in Focus Newsletter – Insurance Contracts (PDF 105k). On 30 July 2010, the International Accounting Standards Board (IASB) published ED/2010/8 Insurance Contracts. This ED proposes a single IFRS that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. The proposed IFRS would apply to writers of both insurance and reinsurance contracts. Click for: IFRS in Focus Newsletter – Insurance Contracts (PDF 105k) Past editions of IFRS in Focus Our Insurance Contracts project page Deloitte (United States) Heads Up Newsletter – IASB Issues Exposure Draft on Insurance Contracts (PDF 159k)

11 August 2010: Employee Benefits Working Group to discuss ED Defined Benefit Plans

The next meeting of the IASB's Employee Benefits Working Group will be held on Monday 27 September 2010. At this meeting, staff and Board members will discuss with the working group the issues arising from the Exposure Draft Defined Benefit Plans (Proposed Amendments to IAS 19) and the responses received. The proposals in the ED 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 working group meeting will be open to observers. For more details about the meeting and how to register as an observer see the IASB's website.

11 August 2010: IASB podcast and presentation on Financial Statement Presentation project

The IASB has released a podcast and web presentation on the Financial Statement Presentation project, a joint project with the FASB to improve the organisation and presentation of information in the financial statements by replacing IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows. A staff draft of an exposure draft arising from the project was published on 1 July 2010 (see our earlier story) and, in response to constituent concerns, the IASB is currently undertaking 'outreach' activities and field testing of the proposals. The formal release of the ED is expected early in 2011, with a final IFRS expected later in 2011. Other aspects of the project are also considering discontinued operations and the presentation of comprehensive income. Click for: Access to IASB podcast (link to IASB website, the podcast is available in the 'Project podcasts' section) Access to IASB web presentation (external link) Our Financial Statement Presentation project page

10 August 2010: Spanish Heads Up on fair value convergence

We have posted the following Spanish language Heads Up publication from Deloitte (Colombia). You will find all of our resources in Spanish Here. Heads Up – Volumen 17 – No. 21 – Junio 30, 2010 – Convergencia sobre el valor razonable. FASB propone orientación sobre la medición y revelación del valor razonable (PDF 45k)

10 August 2010: IFRS for SMEs not an option for Canadian private enterprises

In its Strategic Plan, issued in January 2006, the Canadian Accounting Standards Board (AcSB) noted that "one size does not necessarily fit all" and decided to pursue separate strategies for public enterprises, private enterprises and not-for-profit organizations. In May 2007, the AcSB published an Invitation to Comment (ITC) and accompanying Discussion Paper to solicit stakeholders' views as to the best approach for developing standards for private enterprises. The ITC identified three possible approaches to developing private enterprise GAAP: a top-down approach based on public enterprise GAAP (i.e., IFRSs) but providing for differences on a number of topics; adoption of the IFRS for Small and Medium-sized Entities (IFRS for SMEs); an independently developed set of standards. Based on the responses to the ITC the AcSB decided in May 2008 to develop a set of "made in Canada" financial reporting standards for private enterprises, which were finally published in 2009. Private enterprises in Canada now have the choice between the newly developed, simpler and more limited version of Generally Accepted Accounting Principles (GAAP) and the full International Financial Reporting Standards (IFRS). The IFRSs for SMEs is not an option available to Canadian private enterprises. In order to assist the AcSB in maintaining and improving the accounting standards for private enterprises, the AcSB established the Private Enterprises Advisory Committee in 2010. The Committee normally meets four times a year, and a summary of discussions of each Committee meeting is made available after each meeting. The meeting notes of the first meeting of the Committee are now available on the AcSB's website. Click for: AcSB's strategic planning for private enterprises site Private Enterprises Advisory Committee's site Meeting notes from the first meeting of the Private Enterprises Advisory Committee (PDF 76k) IAS Plus jurisdiction page Canada

9 August 2010: Webcast to discuss ED Revenue from Contracts with Customers

The staff of the IASB and FASB will hold a joint webcast on Thursday 12 August from 17:00 to 17:45 London time to discuss proposals in the Exposure Draft, Revenue from Contracts with Customers and their potential affect on the technology industry. The live webcast is free. To register, go to the FASB website.

9 August 2010: Canada proposes delay in adoption of IFRSs by investment companies

As part of its project on consolidated financial statements, the International Accounting Standards Board (IASB) has announced it will propose, subject to comments received on exposure, that investment companies should be exempted from consolidation and should account for controlling interests in other entities at fair value. Various Canadian stakeholders, including regulators and those from the investment and insurance industries, have raised concerns about whether the revised standard, including the investment company exemption, will be issued in time for the mandatory adoption of IFRSs by Canadian publicly accountable enterprises for interim and annual financial statements relating to annual periods beginning on or after 1 January 2011. The Canadian Accounting Standards Board (AcSB) is therefore proposing that investment companies can continue to apply the current accounting standards for an additional year. Adoption of IFRSs will be mandatory for interim and annual financial statements relating to annual periods beginning on or after 1 January 2012. The AcSB decided that the proposed deferral of the IFRS changeover date should be limited to those entities expected to qualify for the IASB's proposed exemption from consolidation. Click for: The AcSB's Exposure Draft (PDF 78k, link to the AcSB's website) Our project page on Consolidation Our Canada country page The AcSB has also proposed a two-year delay in the IFRS implementation for rate-regulated activities.

9 August 2010: Japanese edition of iGAAP 2010

Deloitte (Japan) has published a Japanese translation of the global edition of iGAAP 2010. This three-volume set, in Japanese, includes all the content of the English edition of iGAAP 2010. The Japanese version covers the following topics: Volume 1. Framework, financial statements, accounting policies, inventory, fixed assets, impairment of assets, leases, borrowing costs, provisions, revenue, construction contracts, share-based payments Volume 2. Employee benefits, income taxes, consolidated and separate financial statements, business combinations, investments in associates, joint ventures, foreign currency, statement of cash flows, subsequent events, related party disclosures, operating segments, earnings per share, interim financial reporting, government grants, hyperinflation, agriculture, insurance, mineral exploration and evaluation, first-time adoption Volume 3. Financial instruments - financial assets, financial liabilities and equity, derivatives, embedded derivatives, measurement, recognition and derecognition, hedge accounting, disclosure, first-time adoption The publication can be purchased through LexisNexis online at http://lexisbookstore.jp/. Click to access all our Deloitte IFRS publications.

9 August 2010: Japanese regulator proposes wider IFRS reporting, approves IASB amendments

The Financial Services Agency (FSA) of Japan has proposed to extend IFRS reporting in Japan to optionally include consolidated financial statements of non-public subsidiaries of domestic IFRS issuers. The proposals were issued on 4 August 2010 and comments on the proposals close on 3 September 2010. The FSA has also approved the following IFRSs and related Interpretation, issued by the IASB in the first half of 2010, for use in Japan: Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters – amendment to IFRS 1 (Jan 2010) Improvements to IFRSs (May 2010), including amendments to IFRIC 13 Click for: FSA proposal to expand the scope of IFRS reporting (from the FSA website, in Japanese) FSA announcement on IFRS endorsements (from the FSA website, in Japanese) Our Japan country page Our newsletter on the IFRS 1 amendments (PDF 75k) Our newsletter on Improvements to IFRSs May 2010 (PDF 77k).

6 August 2010: Deloitte webcast on global financial reporting

The pace of standard-setting developments at the IASB is unprecedented, and it is creating challenging times for financial and tax professionals. What developments should you know about now? In this webcast from Deloitte's IFRS Global Office, we will discuss: Updates on the IASB's evolving agenda and standard-setting activities The IASB's exposure draft on revenue recognition The IASB's exposure draft on leases Stay informed about the latest developments from the IASB and their potential effects on your financial reporting and tax accounting. Topic: IFRS: Important Third Quarter Developments Date and time: 8 September, 9:00-10:00am London time (GMT +1), which is 4:00-5:00pm HKT (GMT +8) Host: Joel Osnoss Presenters: Phil Barden, Veronica Poole and Randall Sogoloff More Info and Registration: Click Here

6 August 2010: Conclusions of the July 2010 meeting of the IFRS Foundation Trustees

The Trustees of the IFRS Foundation, the body responsible for the promotion of International Financial Reporting Standards (IFRSs) and oversight of the International Accounting Standards Board (IASB), today announced the conclusions of their meeting in Washington, DC on 6 and 7 July 2010. The Trustees received reports from the chairmen of the IASB, the IFRS Advisory Council and the Due Process Oversight Committee. They also discussed their strategic review: Strategic Review: After ten years of existence and with the number of countries adopting IFRSs growing, the Trustees agreed that it is an opportune moment to consider the organisation's strategy looking out over a ten-year time horizon. The Trustees' Executive Committee, led by the incoming Trustee Chair Tommaso Padoa-Schioppa, will lead the review on behalf of the Trustees. The review will consider the scope and mission of the IFRS Foundation, governance arrangements, the effectiveness of the standard-setting process and financing arrangements. Click for: IFRS Foundation press release (PDF 18k) offering a summary of the conclusions reached at the meeting and providing links to the reports received

6 August 2010: 'Blue Ribbon' Panel calls for submissions on US private company reporting

The United States AICPA/FAF/NASBA "Blue-Ribbon" Panel on Standard Setting for Private Companies (the Panel) is seeking input on the preparation of private company financial statements in the United States. The Panel is discussing how accounting standards can best meet the needs of US users of private company financial statements with the objective of making recommendations thereon to the FAF Board of Trustees. The Panel is seeking comment on many matters, including: How US-GAAP financial statements for private companies are currently used and the relevance of information contained in those financial statements Issues with the application of US-GAAP in private company financial statements The impact of any future SEC requirement for public companies to adopt IFRS on private company financial reporting. Submissions close on 15 September 2010. Click for more information (link to FASB website)

6 August 2010: FASB podcast on loss contingencies proposals

The FASB has released a podcast on its proposed accounting standards update (ASU) on the disclosure of certain loss contingencies. The disclosures that would be required under the proposed ASU are similar to those required under IAS 37 (currently the subject of an IASB project). Click for: Access to FASB podcast (link to FASB website) Heads Up Newsletter Raising the Volume on the Remote - FASB Proposes Guidance on Expanded Disclosures for Certain Loss Contingencies (PDF 156k) IAS Plus Update Newsletter on the IASB's liability proposals (PDF 88k) Our project page on the IASB's liabilities project

6 August 2010: Nigeria to adopt IFRS from 2012

The Nigerian Federal Executive Council has approved 1 January 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Reporting Standards (IFRS). The Central Bank of Nigeria (CBN) and the Nigerian Securities and Exchange Commission (SEC) support the migration to IFRS. The Council has directed the Nigerian Accounting Standards Board (NASB), under the supervision of the Nigerian Federal Ministry of Commerce and Industry, to take further necessary actions to give effect to Councils' approval. Prof. Dora Akunyili, Honourable Minister of Information and Communications for Nigeria, said: The intensification of globalization and the consequential loss of national identity in financial reporting standards leaves Nigeria with no choice, but to key into the International Financial Reporting Standards. Investors now request financial statements prepared using these global financial reporting benchmarks. Click for: Nigerian Federal Executive Council announcement (link to Nigerian government site). Our new Nigeria country page Our table summarising the use of IFRSs by jurisdiction.

6 August 2010: Irish edition of IFRS for SMEs in your pocket

We've posted an Irish edition of IFRS for SMES in your pocket (PDF 276k), published by Deloitte (Ireland). This publication provides a section-by-section guide on the IFRS for SMEs, providing key comparisons with the full IFRS standards and highlighting particular conversion issues for entities moving from Irish GAAP. Irish GAAP is developed by the Accounting Standards Board (ASB), which is currently considering proposals to replace Irish GAAP with the IFRS for SMEs for many non-publicly accountable entities. More information about financial reporting in Ireland can be found on our Ireland country page.

5 August 2010: IFRS insurance accounting newsletter

Deloitte (United Kingdom) has published the August 2010 issue of Insurance Accounting Newsletter. This issue is titled The start of a new accounting era and provides a detailed analysis of the main provisions in the Exposure Draft issued on 30 July by the IASB to revise substantially IFRS 4 Insurance Contracts. Click to download Issue 17 of the Insurance Accounting Newsletter (PDF 148k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.

5 August 2010: PCAOB adopts new auditing standards on risk assessment

The Public Company Accounting Oversight Board (PCAOB) today adopted eight auditing standards related to an auditor's assessment of and response to audit risk. The eight standards are: Auditing Standard 8 (AS No. 8) - Audit Risk Auditing Standard 9 (AS No. 9) - Audit Planning Auditing Standard 10 (AS No. 10) - Supervision of the Audit Engagement Auditing Standard 11 (AS No. 11) - Consideration of Materiality in Planning and Performing an Audit Auditing Standard 12 (AS No. 12) - Identifying and Assessing Risks of Material Misstatement Auditing Standard 13 (AS No. 13) - The Auditor's Responses to the Risks of Material Misstatement Auditing Standard 14 (AS No. 14) - Evaluating Audit Results Auditing Standard 15 (AS No. 15) - Audit Evidence The standards, if approved by the Securities and Exchange Commission, will become effective for audits of fiscal periods beginning on or after Dec. 15, 2010. Click here for more details and to view this and other news releases on the PCAOB website.

5 August 2010: IFRS Foundation appoints members of the SME Implementation Group

The IFRS Foundation today announced the membership of the newly created SME Implementation Group. The mission of the Group is to support the international adoption of the IFRS for Small and Medium-sized Entities (IFRS for SMEs) and to monitor its implementation. The Group has two main responsibilities: to develop non-mandatory guidance for implementing the IFRS for SMEs in the form of questions and answers that will be made publicly available on a timely basis; and to make recommendations to the IASB if and when needed regarding amendments to the IFRS for SMEs. Although members of the group do not act as country representatives, the Trustees of the IFRS Foundation have sought to ensure a balanced geographical distribution in selecting its members. The members of the Group will serve a renewable term of two years from July 2010; the chairman is the IASB member Paul Pacter. Click for: IFRS Foundation press release (PDF 42k) Full list of members of the group on the IASB's website IAS Plus page summarizing the IFRS for SMEs

5 August 2010: IFRS Taxonomy 2010 updated for latest annual Improvements to IFRSs

The IFRS Foundation today released the first interim release for the International Financial Reporting Standards (IFRS) Taxonomy 2010, which is a translation of IFRSs as issued at 1 January 2010 into XBRL (eXtensible Business Reporting Language). This IFRS Taxonomy interim release reflects Improvements to IFRSs for the 2008-2010 project cycle, which was published in May 2010 as part of the IASB's annual improvements process. Click for: IFRS Foundation press release IFRS Taxonomy interim release - Improvements to IFRSs for the 2008-2010 project cycle IFRS Taxonomy 2010

5 August 2010: Accounting and audit reforms in Turkmenistan

According to a press release of the state news agency of Turkmenistan (THD) the President of Turkmenistan issued a Decree approving the programme for reforming the national accounting and audit system during a meeting of the Cabinet of Ministers of Turkmenistan in July 2010. In accordance with the Decree all enterprises, institutions and organisations irrespective of the form of ownership (except for banks) from January 1, 2013 are to ensure phased transition and from 1 January 2014 full transition of the national accounting and audit system to international financial reporting standards (IFRS); from January 1, 2011 the banking institutions in the country are to ensure transition to international financial reporting standards (IFRS), prepare the financial reports for 2011 in compliance with international standards and ensure conducting financial statement audit on a yearly basis in compliance with international standards starting from the financial reports prepared for 2011. Click for: Press Release of the state news agency of Turkmenistan Our new Turkmenistan jurisdiction page Our table summarising the use of IFRSs by jurisdiction

4 August 2010: IASB/EFRAG convergence meeting

On 26 August 2010 the International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) will meet in London. These meetings take place twice a year and are used to discuss European ideas and input into projects on the IASB's agenda. The meeting will be open to public observation. Presented below is the agenda for the meeting. IASB/EFRAG convergence meeting 26 August 2010, London IASB-only Projects IAS 37 Income Taxes Rate Regulated Activities Major Projects Leases Insurance Revenue Recognition Financial Instruments Other Projects Financial Statements Presentation (including OCI) Consolidation Other Topics (as needed)

3 August 2010: Notes from special August IASB meeting

The IASB met in London on 3 August 2010 for a special meeting related to the Financial Instruments project. The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic): Hedge Accounting Amortised Cost and Impairment Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting. The IASB has tentatively scheduled a further special meeting on Tuesday 24 August 2010 to continue discussions on the Financial Instruments project.

3 August 2010: IFRS publication in Spanish

We have posted the following Spanish language IFRS in Focus publication from Deloitte (Colombia). You will find all of our resources in Spanish Here. IFRS in Focus (edición en español), Julio 2010: IASB emite borrador para discusión pública sobre las revelaciones de la medición a valor razonable (PDF 31k) Spanish version of: IASB issues Exposure Draft on Fair Value Measurement Disclosures (PDF 60k)

3 August 2010: Accounting Roundup – July 2010

We have posted the July 2010 Edition of Accounting Roundup (PDF 379k) published by Deloitte & Touche LLP (United States). The newsletter covers United States and international accounting and auditing matters, including IASB-FASB convergence. Topics covered in this issue include: Contingencies FASB Proposes Guidance on Expanded Disclosures for Certain Loss Contingencies Foreign Currency Matters Foreign Currency Exchange Accounting Implications of Recent Government Actions in Venezuela EITF Deliberates the Accounting for Multiple Foreign Currency Exchange Rates (Issue 10-B) Intangibles — Goodwill and Other EITF Deliberates How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test (Issue 10-A) Plan Accounting — Defined Benefit Pension Plans FASB Ratifies Consensus-for-Exposure on Accounting for Participant Loans in Employee Benefit Plan Financial Statements (Issue 10-C) Presentation of Financial Statements FASB and IASB Propose Sweeping Changes to Financial Statement Presentation Receivables FASB Enhances Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses Industry Accounting EITF Reaches Final Consensus on Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts (Issue 09-G) EITF Deliberates Revenue Recognition for Health Care Entities (Issue 09-H) EITF Reaches Final Consensus on Presentation of Insurance Claims and Related Insurance Recoveries for Health Care Entities (Issue 09-K) EITF Reaches Final Consensus on Measuring Charity Care for Disclosure for Health Care Entities (Issue 09-L) EITF Reaches Consensus-for-Exposure on Accounting for Certain Fees Associated With Recently Enacted Health Care Legislation (Issue 10-D) Other Accounting FASB Issues "Pre-Release" of 2011 U.S. GAAP Reporting Taxonomy for Public View AICPA Issues Various Technical Practice Aids Dodd-Frank Wall Street Reform and Consumer Protection Act Signed Into Law Other SEC Matters SEC Issues Proposed Rule on Mutual Fund Distribution Fees SEC Issues C&DIs on Use of Credit Ratings SEC Updates Financial Reporting Manual SEC Publishes Concept Release on the U.S. Proxy System CAQ Releases Highlights of SEC Regulations Committee's April 6 Meeting Other Auditing ASB Issues Interpretation 8 of AT Section 101 ASB Issues Proposed SAS to Revise Applicability of SAS 116 ASB Issues Proposed SAS on Letters for Underwriters and Certain Other Requesting Parties ASB Issues Proposed SAS on Interim Financial Information ASB Issues Proposed SSARS on the Applicability of SSARSs PCAOB Issues Proposed Standard on Audit Confirmations PCAOB Issues Staff Practice Alert on Using the Work of Other Auditors and Engaging Assistants From Outside the Firm GASB Matters GASB Issues Guidelines for Reporting of SEA Performance Information You will find past issues of Accounting Roundup Here.

3 August 2010: CESR publishes report on trends, risks and vulnerabilities in financial markets

The Committee of European Securities Regulators (CESR) has published a report on trends risks, and vulnerabilities that are directly relevant to securities markets regulators. Over the last decades, financial markets have been transformed by the rapid development of new financial instruments, the rise of new categories of key market participants, and a supportive technological environment. More recently, fundamental areas of the financial sectors have experienced a severe crisis. Going forward, CESR would like to contribute more to the understanding of these trends and risks and communicate its insights to the general public through regular reports. The following findings, which are supported by thirteen detailed key trends, risks and vulnerabilities, are highlighted in the report: In light of some global positive signs [...] a tendency to downplay the severity of the current crisis may emerge, accompanied by a reluctance to recognize the need for financial reforms. There is therefore a risk that urgently required regulatory measures are neither fully considered nor implemented in an appropriate way. In fact, there are non negligible risks of a new deterioration in securities markets ahead [...]. [However, an] improvement has apparently been fuelled by the implementation of tough fiscal adjustment programmes in most European countries and the authorities' commitment to carry out stress tests in a significant number of European financial institutions and disclose the results. The persistency of severe strains in the financial system was particularly evident in the fact that banks were still relying on the ECB's deposit facility for amounts which significantly exceed those observed in the aftermath of the Lehman default. The financing requirements of countries and companies may become an issue in the near term. Click for press release (PDF 120k). The report itself is available on CESR's website (PDF 3,310k). We have more information on the financial crisis on our credit crunch page.

3 August 2010: International Integrated Reporting Committee (IIRC) formed to pursue sustainability accounting framework

The Prince's Accounting for Sustainability Project (A4S) and the Global Reporting Initiative (GRI) have announced the formation of the International Integrated Reporting Committee (IIRC). The IIRC aims to create a globally accepted framework for accounting for sustainability, bringing together financial, environmental, social and governance information in an "integrated" format. The IIRC brings together a cross section of representatives from civil society and the corporate, accounting, securities, regulatory, NGO, IGO and standard-setting sectors. It comprises a Steering Committee and a Working Group. The Steering Committee is chaired by Sir Michael Peat, Principal Private Secretary to TRH The Prince of Wales and the Duchess of Cornwall. Membership of the IIRC Steering Committee includes Sir David Tweedie (IASB Chairman), Robert H. Herz (FASB Chairman), Jane Diplock, (Chairperson, IOSCO Executive Committee), Robert Bunting (IFAC President), Jim Quigley (Chief Executive Officer of Deloitte), and many others. More information about the IIRC follows: Purpose of the IIRC The IIRC is being created to respond to the need for a concise, clear, comprehensive and comparable integrated reporting framework structured around the organisation's strategic objectives, its governance and business model and integrating both material financial and non-financial information. The objectives for an integrated reporting framework are to: support the information needs of long-term investors, by showing the broader and longer-term consequences of decision-making reflect the interconnections between environmental, social, governance and financial factors in decisions that affect long-term performance and condition, making clear the link between sustainability and economic value provide the necessary framework for environmental and social factors to be taken into account systematically in reporting and decision-making rebalance performance metrics away from an undue emphasis on shortterm financial performance bring reporting closer to the information used by management to run the business on a day-to-day basis. Role of the IIRC The role of the IIRC is to: raise awareness of this issue and develop a consensus among governments, listing authorities, business, investors, accounting bodies and standard setters for the best way to address it develop an overarching integrated reporting framework setting out the scope of integrated reporting and its key components identify priority areas where additional work is needed and provide a plan for development consider whether standards in this area should be voluntary or mandatory and facilitate collaboration between standard-setters and convergence in the standards needed to underpin integrated reporting promote the adoption of integrated reporting by relevant regulators and report preparers. Click for press release (PDF 66k). The IIRC website can be accessed at www.integratedreporting.org

2 August 2010: CESR issues Consultation Paper on central storage of regulated information (OAMs)

The Committee of European Securities Regulators (CESR) has issued a Consultation Paper Development of Pan-European Access to Financial Information Disclosed by Listed Companies. The introduction states, in part: The aim of an OAM network would be to provide a one stop shop for end users (investors and other users of regulate information) looking for regulated information on listed companies. The existence of such a network would also facilitate the provision of added value services to investors (e.g. processed information, comparative information etc.). Download the Consultation Paper from the CESR website. Comments are due by 24 September 2010.

2 August 2010: IFRS publication in Spanish

We have posted the following Spanish language IFRS in Focus publication from Deloitte (Colombia). You will find all of our resources in Spanish Here. IFRS in Focus (edición en español), Junio 2010: IASB emite borrador para discusión pública sobre reconocimiento de ingresos ordinarios (PDF 66k) Spanish version of: IASB issues revenue recognition exposure draft (PDF 97k)

2 August 2010: Fair Value Measurement – IASB and FASB joint webinar

The IASB and FASB have posted a joint webinar to introduce their respective exposure drafts on fair value measurement. The webinar has been prepared by the staff of the IASB and the FASB to help constituents understand the proposals in the FASB Exposure Draft Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (link to FASB website) and the IASB Exposure Draft Measurement Uncertainty Analysis Disclosure for Fair Value Measurements. Both exposure drafts were published 29 June 2010, and comments are due on 7 September 2010. Click for: IAS Plus page on the IASB's fair value measurement project IFRS in Focus Newsletter – IASB issues Exposure Draft on Fair Value Measurement Disclosures (PDF 60k) Heads Up on FASB's proposed guidance on fair value measurement and disclosure (PDF 122k)

2 August 2010: IFRS for SMEs – additional training materials published

The IFRS Foundation has published additional modules of its comprehensive set of training materials for the IFRS for SMEs. There will be one training module for each of the 35 sections in the IFRS for SMEs, 20 are so far available, and the remaining 15 modules are planned for release in the next few months. Each module is one PDF file and can be downloaded without charge from the IFRS Foundation's Website. Click here to go to the Training Materials. Available modules cover Sections 1, 3, 4, 5, 6, 8, 10, 11, 13, 14, 15, 16, 17, 20, 21, 23, 24, 25, 28, and 32 of the IFRS for SMEs. More information on the IFRS for SMEs is available in our IAS Plus page summarizing the IFRS for SMEs.

1 August 2010: IASB to hold webcast on insurance contracts exposure draft

On 6 August 2010, the IASB staff will be hosting a webcast introducing the proposed standard on improvements to the accounting for insurance contracts. As noted in our earlier story, ED/2010/8 Insurance Contracts was published on 30 July 2010 and is open for public comment until 30 November 2010. There is no charge to participate in the webcast, but registration is required. Webcast Topic: Insurance accounting Date and Time: Friday 6 August, 10:00am and again at 3:00pm (London time) More Information and Registration: Click Here (link to IASB website) IAS Plus Resources:: Insurance Contracts Project Page, Deloitte press release The IASB has also made a podcast available, introducing the insurance contracts proposals. The podcast can be accessed via the IASB's website.