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31 December 2010: OBE for Ken Wild
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The 2011 New Year Honours List published today recognising outstanding achievement and service across the whole of the United Kingdom includes Ken Wild as an Officer of the Order of the British Empire (OBE).
He is honoured for services to financial reporting.
Ken Wild was a partner at Deloitte for 26 years until his retirement in 2010, for much of that time he led the UK firm's technical department and, more recently, the Global IFRS Leadership Team. Mr Wild was also a member of the ASB from 1994 to 2003 and IFRIC from 2003 to 2009. He also helped maintain IAS Plus and has written numerous articles and books on accounting. He is currently a Fellow, Judge Business School, Cambridge University, where he lectures on financial reporting in the School's
masters' programmes. |
30 December 2010: Upcoming meeting of the FASB/IASB joint working group on lease accounting
| On Friday 7 January representative members and staff of the FASB and the IASB will meet with members of the Joint Working Group on Lease Accounting to discuss the 2010 Exposure Draft on Leases. The objectives of this meeting are to:
- Discuss tentative decisions made by the Boards in the ED
- Obtain the views and suggestions of the working group on certain key areas of the leases project
- Discuss feedback received through outreach activities and comment letters.
- Topic: ED Leases
- Date and time: Friday, 7 January 2011, 9:00 a.m. — 4:00 p.m. EST
- More information on the meeting:
Click here
- More information on IAS Plus:
Our Leases project page
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30 December 2010: Agenda for 6-7 January 2011 Interpretations Committee meeting
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The IFRS Interpretations Committee will meet at the IASB's offices in London on Thursday and Friday
6 and 7 January 2011 (morning only on 7 January). 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,
6 and 7 January 2011 |
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Thursday 6 January (10:00h-17:30h)
Friday 7 January (09:00h-10:45h)
- New Items for Initial Consideration (continued from Thursday)
- IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – Contingent pricing of PPE and intangible assets
- Administrative Session – Interpretations Committee work in progress
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29 December 2010: Seidman appointment receives
positive reactions
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As reported earlier, the Board of Trustees of the Financial Accounting Foundation (FAF)
has named Leslie F. Seidman chairman of the US Financial Accounting Standards Board (FASB) effective immediately.
The United States Securities and Exchange Commission
(SEC) welcomes the appointment: "Her experience will facilitate the
progress of important initiatives on the FASB agenda as they seek to
continually improve the quality of financial reporting standards for
the benefit of investors." (click for
full SEC
statement)
The American Institute of Certified Public Accountants (AICPA) through its Center for Audit Quality (CAQ)
congratulates Ms Seidman and states: "The public company auditing profession looks forward to working with her as she oversees the development of U.S. accounting standards and coordinates convergence efforts with the International Accounting Standards Board."
(click for
full
CAQ statement)
Financial Executives International (FEI) applauds the
appointment: "We believe that Ms Seidman has done a remarkable job since taking on the role as Acting Chair in the fall of 2010. We are confident that she is well suited to lead the rest of the Board and work with organizations such as FEI to ensure the development of high quality accounting standards during this critical time for global standard setting."
(click for
full FEI statement)
Leslie Seidman herself had commented on the pivotal
time of her appointment: "We are at a crucial point in our convergence program, and my fellow Board members and I are working in close partnership with the IASB to improve the comparability of financial information around the world."
(click for
FAF press release)
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28 December 2010: IFRS for Investment Funds
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Deloitte's Global Financial Services Industry
(GFSI) network has released two publications on IFRSs for
Investment Funds:
Harnessing the forces of change: IFRS for Investment Funds addresses and highlights the major differences between IFRS and the US Generally Accepted Accounting Principles (US GAAP). As the acceptance of IFRS in the US and elsewhere becomes more imminent, this report provides investment managers with key issues they should be considering when approaching IFRS.
The accompanying paper Harnessing the forces of change: Illustrative financial statements 2010 provides descriptive examples. It includes a variety of example industry disclosures to provide investment managers with a clearer idea of what the switch to IFRS would entail.
Click for:
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27 December 2010: 2010 Corporate Responsibility Report
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Deloitte has published its 2010 Corporate Responsibility Report. The
report has been checked by the Global Reporting Initiative (GRI) and
also serves as Deloitte's Communication on Progress to the United Nations Global Compact for
2009-2010. The performance measures for community investment and
environment are based on widely recognized guidelines and offer an
example of which performace measures and data can be used in integrated
reporting:
- For reporting on community investment, standards from the Committee
Encouraging Corporate Philanthropy and the London Benchmarking Group were
observed:
- The monetary value of community activities by
member firm people was estimated according to the type
of service performed.
- The value of volunteer work is based on local
member firms' staff cost.
- Pro bono work, defined as work that the member firms
might otherwise sell but that was performed for free or
at a discount below firm cost, has been valued at local
member firms' market rate for client service, less
whatever fees organizations might have paid.
- Estimates of carbon emissions were prepared according to the
Greenhouse Gas Protocol created by the World Resource Institute and the
World Business Council for Sustainable Development. Deloitte and the member
firms have applied the most recent, authoritative, and locally specific
carbon dioxide emissions factors available for the countries in the
reoprt's scope.
- Performance data was obtained from financial reporting systems,
other internal records, and outside sources such as travel agencies,
utitlities, and property managers.
Click for acces to
Deloitte's 2010 Corporate
Responsibility Report. Our IAS Plus sustainability reporting page is
available here. |
23 December 2010: Leslie Seidman appointed FASB Chairman
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Today, the Board of Trustees of the Financial Accounting Foundation (FAF) named Leslie F.
Seidman chairman of the US Financial Accounting Standards Board (FASB) effective immediately. Ms Seidman has been acting chairman of the FASB since Robert H. Herz retired on 30 September 2010. Click for press release (link to FAF website).
The press release further noted that the Board of Trustees of the FAF is engaged in the process to evaluate candidates for the two additional board seats of the FASB, and is expected to make an announcement in early 2011.
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23 December 2010: Translations of IASB pronouncements
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The IFRS Foundation has announced that a Brazilian Portuguese translation of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) 2009
is now available. The translation can be accessed online via the
"Access the IFRS for SMEs" section on the IASB's website.
The Arab Society of Certified Accountants (ASCA) "Jordan" has issued the approved Arabic translation of IFRSs 2010.
Click for
ASCA press release (link to ASCA website).
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22 December 2010: Publications by national Deloitte member firms
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Deloitte Germany has translated the IFRS Model Financial
Statements for 2010 into the German language. These financial statements illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) by an entity that is not a first-time adopter of IFRSs. Deloitte Canada has translated IFRSs in your Pocket 2010 into the French language. This guide provides information about the IASB structure and includes summaries of each IASB standard and interpretation. In addition, Deloitte Singapore has published Singapore Illustrative Financial Statements 2010, which provides a set of sample financial statements of a typical listed company in Singapore. Click for:
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22 December 2010: Newsletter on closing out 2010
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Deloitte's IFRS Global Office has published an
IFRS in Focus Newsletter – Closing out 2010 (PDF 119k). This special edition of IFRS in Focus provides an overview of new and revised International Financial Reporting Standards issued by the IASB and Interpretations issued by the IFRS Interpretations Committee that are effective for December 2010 calendar year-ends and subsequent accounting periods. This newsletter also provides a brief snapshot of each new and revised standard and interpretation as well as the current status of IASB projects.
Click for past editions of IFRS in Focus
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22 December 2010: CEBS adapts the timeline for the revision of the Guidelines on Financial Reporting
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The Committee of European Banking Supervisors
(CEBS) published its revised guidelines on financial reporting (FINREP rev2) on
15 December 2009, with an implementation date of 1 January 2012.
FINREP rev2 incorporated changes to IFRS, which were agreed in October 2009, and CEBS had envisaged that further changes to IAS/IFRSs would be taken into account, in due course, before starting implementing the revised FINREP framework. In particular, the IASB project on IAS 39 replacement and the proposal on IAS 1 that were scheduled to be agreed in 2010 were envisaged to be incorporated into the framework.
However, the IASB has, so far, only finalised those aspects of the project to replace IAS 39 Financial Instruments dealing with classification and measurement of financial instruments in IFRS 9. Final decisions on impairment
and hedge accounting are currently expected in the first half of 2011. The final IFRS 9 will also be subject to an endorsement process at EU level.
Given these changes, CEBS suggests that countries that intend to implement the FINREP package for the first time before 1 January 2013 use the FINREP rev2 guidelines on an interim basis.
Click for
CEBS press release (link to CEBS website). |
22 December 2010: Results of the Monitoring Board Working Group on Governance Review meeting
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The Monitoring Board Working Group on Governance Review met on 6 December 2010 in Tokyo to continue its discussion of the review of the governance framework around the
Monitoring Board and the IFRS Foundation.
The fundamental question for the governance review is whether the current governance arrangements promote the IASB’s primary mission of developing high quality, global accounting standards, while providing for both the accountability and independence of the IASB.
The Monitoring Board intends to issue a consultation document in early February 2011 for public comment, with a comment period of two months.
Public meetings with stakeholders will be organized during the consultation period in Asia, Europe and the Americas.
Separately, the IFRS Foundation Trustees on 5 November 2010 issued a
consultation document on the Trustees’ ongoing Strategy Review. The consultation period had been subsequently extended to 24 February 2011.
Please click for
IFRS Foundation Monitoring Board Press release
(PDF 29k). |
22 December 2010: New editorial corrections to IFRSs
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The IASB has posted to its website a new batch of
Editorial Corrections to IFRSs. This batch
includes editorial corrections and changes to Bound Volume (Red Book) 2010, Bound Volume (Blue Book)
2011,
IFRS 7 Financial Instruments: Disclosures – Transfers of Financial Assets (issued October
2010), IFRS 9 Financial Instruments (issued October 2010) and The Conceptual Framework for Financial Reporting, (issued
September 2010). |
21 December 2010: We respond to the EC public consultation on country-by-country reporting
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Deloitte has submitted a response to the European Commission's public consultation
that is designed to gather
stakeholders' views on country-by-country reporting by multinational companies.
We conclude: "At this stage, we do not believe that imposing incremental
country-by-country disclosure in financial statements prepared under IFRSs is warranted in view of
the comprehensive post-implementation review of IFRS 8 planned by the IASB."
Click to
Download our Comment Letter
(PDF 72k). |
21 December 2010: Recent US standard-setting activity and Deloitte publications
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The United States Financial Accounting Standards Board (FASB), the US Public Company Accounting Oversight Board (PCAOB) and the US Securities and Exchange Commission (SEC) have been busy issuing new and proposed standards, as well as discussing their activities with practitioners. The following are selected items, including links to Deloitte publications where applicable:
- 2010 AICPA Conference on SEC and PCAOB Developments – Heads Up newsletter (PDF 461k)
- Year in Review: Accounting Roundup newsletter (PDF 749k)
- Proposed Accounting Standards Update – Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 - Exposure draft (link to FASB website), Heads Up newsletter (PDF 89k)
- Proposed Accounting Standards Update – Health Care Entities (Topic 954): Presentation and Disclosure of Net Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts - Exposure draft (link to FASB website), December 2010 edition of EITF Snapshot (PDF 88k)
- Accounting Standards Update No. 2010-27, Other Expenses (Topic 720): Fees Paid to the Federal Government by Pharmaceutical Manufacturers - ASU 2010-27 (link to FASB website)
- Accounting Standards Update No. 2010-28, Intangibles—Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts - ASU 2010-28 (link to FASB website)
- Accounting Standards Update No. 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations - ASU 2010-29 (link to FASB website)
- CFO Insights newsletter: IFRS: Select Tax Considerations (PDF 133k)
- CFO Insights newsletter: IFRS: The emerging convergence challenge (PDF 87k)
Click here to visit our United States country page.
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21 December 2010: New publications from Deloitte's IFRS Global Office
20 December 2010: : IASB amends IFRS 1 and IAS 12
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The International Accounting Standards Board (IASB) has published amendments to IAS 12 Income Taxes and IFRS 1 First-time Adoption of International Financial Reporting Standards. Click for:
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19 December 2010: Death of Tommaso Padoa-Schioppa, Chair of the Trustees of the IFRS Foundation
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The Trustees and Monitoring Board of the IFRS Foundation have released condolences on the sudden death of Tommaso Padoa-Schioppa, Chair of the Trustees of the IFRS Foundation.
Tommaso Padoa-Schioppa was appointed Chair of the Trustees of the IFRS Foundation in June 2010. He was a President of Notre Europe and Chairman of Promontory Europe, Italian Minister of Economy and Finance (2006-08) and Chairman of the Ministerial Committee of the International Monetary Fund (2007-08). He served as Chairman of the Trustees of the International Accounting Standards Committee Foundation from January 2006 until he was appointed Italian Minister of Economy and Finance. He was a member of the first Executive Board of the European Central Bank (1998-2005).
Previously he was Chairman of the Commissione Nazionale per le Società e la Borsa (1997-98), Deputy Director General of the Banca d’Italia (1984-97) and Director General for Economic and Financial Affairs at the Commission of the European Communities (1979-83). He has been Joint Secretary to the Delors Committee (1988-89), Chairman of the Banking Advisory Committee of the EC (1988-91), Chairman of the Basel Committee on Banking Supervision (1993-97) and Chairman of the Committee on Payment and Settlement Systems (2000-05).
Mr Padoa-Schioppa was also the author of a number of books and articles on economic and financial matters as well as on European and international affairs. He graduated from Luigi Bocconi University and has an MSc from the Massachusetts Institute of Technology.
Joel Osnoss, Global Managing Director – IFRS Clients and Markets and Veronica Poole, Global Managing Director – IFRS Technical, said:
"We are deeply saddened by the sudden death of Tommaso Padoa-Schioppa. The tremendous effect he had on the accounting profession globally, and indeed on world finance in general, cannot be overstated. The impact of the contributions he made over the course of his career will be felt around the world for generations to come. Our thoughts are with his family, as they mourn the passing of this great man."
Click for:
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17 December 2010: Notes from Day 5 of December IASB meeting
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The IASB is meeting in London on 13-17 December 2010 for its regular December meeting, some of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the topics discussed on day five of the meeting. The topics discussed were as follows (click through for direct access to the notes for that particular topic):
Friday, 17 December 2010 (IASB only)
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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17 December 2010: Publications by national Deloitte member firms
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Deloitte Denmark has developed a
publication (PDF 200k) about the IASB's Exposure Draft (ED) Insurance Contracts. The 24-page publication (which is in the Danish language) provides an overview of the ED and examines the expected impact on Danish life and non-life insurance companies, including focus on the new part of the statement of comprehensive income for insurance contracts.
Click for our Denmark country page.
Deloitte Colombia has translated the IFRS Presentation and Disclosure Checklists for 2010 into the Spanish language.
The IFRS Presentation and Disclosure Checklist for 2010 is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item.
Click for:
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17 December 2010: Survey on accounting for sustainability practices released by CIMA, AICPA and CICA
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The Chartered Institute of Management Accountants (CIMA), the American Institute of Certified Public Accountants (AICPA), and the Canadian Institute of Chartered Accountants (CICA) have released Evolution of corporate sustainability practices – Perspectives from the UK, US and Canada, a survey measuring the state of accounting for sustainability in the UK and North America.
Although the results may reflect a higher degree of interest in sustainability among respondents who opted to participate in the survey (and so may not necessarily reflect the entire population), the survey is of interest as the global financial community pushes towards more integrated reporting. Key findings include:
- Although compliance with regulatory requirements still remains the most common driver of business sustainability, profitability and other strategic factors are also significant
- Large companies have more robust sustainability capabilities than small companies
- Contributions by an entity's finance function to sustainability programs are highly valued, yet underdeveloped
- UK based organisations appear to be ahead in implementing sustainability practices and finance function involvement compared to their North American counterparts.
Click for press release (link to CICA website). The report is available at www.cica.ca/sustainability.
CIMA, AICPA and CICA are all founding members of the Accounting Bodies Network of the Prince's Accounting for Sustainability (A4S) Project, which is meeting in London. The Princes of Wales' speech to the meeting is available here. An excerpt:
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"The new integrated reporting model which the IIRC [International Integrated Reporting Committee] is helping to develop will address each of these issues – the failure to value and price our natural capital, the narrowness and retrospective emphasis of most accounting information and our disproportionate focus on the short-term.
...my A4S Project's main achievement in 2010 was helping to establish the IIRC. And I very much hope that one of its main achievements in 2011 will be working out how we can better value natural capital. As soon as possible we have to start putting a price on the multi-trillion dollar contribution that natural capital makes to the world's economy. The problem is time is simply not on our side, but the task is not impossible."
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17 December 2010: United States SEC proposes rules for 'resource extraction issuers' under the Dodd-Frank Act
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Further to our story of 16 July 2010, the United States Securities and Exchange Commission (SEC) has issued proposed rules mandated by the Dodd-Frank Act to require 'resource extraction issuers' to disclose payments made to the U.S. or foreign governments.
Prescribed mining and oil gas companies would be required to disclose payments that are made to further the commercial development of oil, natural gas, or minerals, such as taxes, royalties, fees, production entitlements and bonuses. These types of payments generally are consistent with the 'Publish What You Pay' coalition (PWYP) proposals included in IASB Discussion Paper DP/2010/1 Extractive Activities.
Comments on the proposed rules close on 31 January 2011. Click for press release (link to SEC website). More information on the Dodd-Frank Act reforms can be found in the Heads Up Newsletter The Final Act – Financial Reporting Implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act (PDF 173k).
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17 December 2010: IAASB appointments
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The Public Interest Oversight Board (PIOB) has confirmed a number of new and reappointed members of the International Auditing and Assurance Standards Board (IAASB):
- New appointments: Jean Blascos (France), Jianshen Chen (China), Merran Kelsall (Australia)
- Renewed appointments: John Archambault (United States), Jon Grant (United Kingdom), Caithlin McCabe (Australia).
In addition, Diana Hillier was reappointed as deputy chair of the IAASB. The appointments were recommended by the IFAC Board and are effective January 1, 2011. Click for press release (link to IFAC website).
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16 December 2010: Notes from Day 4 of December IASB meeting
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The IASB is meeting in London on 13-17 December 2010 for its regular December meeting, some of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the topics discussed on day four of the meeting. The topics discussed were as follows (click through for direct access to the notes for that particular topic):
Thursday, 16 December 2010 (IASB-FASB joint meeting)
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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16 December 2010: EFRAG establishes Advisory Panel
on the Role of the Business Model in Financial Reporting
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A project on the role of the business model in financial
reporting has commenced as part of the pro-active work of the European
Financial Reporting Advisory Group (EFRAG).
The aim of the project is to provide European input to the future
consideration, development and use of the business model concept in
financial reporting. The project is being led by EFRAG and supported by the
standardsetters from the UK (ASB) and France (ANC). As part of the
arrangements for the project, a pan-European advisory panel is being
established to support the work, and EFRAG is now seeking nominations for
membership of that panel.
The objective of the project is to investigate the possible
role of the business model concept within financial reporting. This
investigation will include an assessment of the implications of the business
model on recognition, measurement, presentation, disclosure and performance
reporting within the wider financial report. The project aims to provide
European input into the IASB's future consideration, development and use of
the business model concept in financial reporting.
Please click for
EFRAG
press release
for further details (link to EFRAG website).
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16 December 2010: iGAAP 2011 A guide to IFRS reporting now available
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The fourth edition of this guide sets out comprehensive guidance for entities reporting under IFRSs. It has been updated not only to deal with new and amended requirements but also to reflect increased practical experience of dealing with IFRS issues and to include many more illustrative examples.
As well as dealing comprehensively with Standards that apply for periods ending 31 December 2010, it also covers those further pronouncements issued by the IASB that will apply from 2011. New material includes:
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments,
- the revised version of IAS 24 Related Party Disclosures,
- the IASB's amendments to existing Standards,
- an overview of the IFRS for SMEs, identifying key differences with full IFRSs,
- IFRS 9 Financial Instruments.
Orders for this guide may be placed via
www.lexisnexis.co.uk/deloitte.
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16 December 2010: IPSASB calls for comments on public sector conceptual framework
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The International Public Sector Accounting Standards Board (IPSASB) has released for comment an exposure draft (ED) and two Consultation Papers related to its project to develop a Conceptual Framework for the general purpose financial reporting of public sector entities:
- Conceptual Framework Exposure Draft 1 (CF-ED1) Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Role, Authority, and Scope; Objectives and Users; Qualitative Characteristics; and Reporting Entity proposes that the objectives of financial reporting should be to provide information for accountability and decision-making purposes and should extend beyond the traditional financial statements to include more comprehensive financial and non-financial information
- Consultation Paper Elements and Recognition in Financial Statements identifies alternative asset and liability-led and revenue and expense-led approaches to financial statements and considers the key characteristics of assets, liabilities, revenue and expenses
- Consultation Paper Measurement of Assets and Liabilities in Financial Statements considers the measurement bases that may be appropriate for the elements that are recognised in financial statements, discussing historical cost, market value, replacement cost and deprival value.
Many of the IPSASs currently on issue are based on IFRSs to the extent that the requirements of those IFRSs are relevant to the public sector. However, development of the IPSASB's Conceptual Framework is not an IFRS convergence project, and the purpose of the IPSASB's project is not to interpret the application of the IASB Framework to the public sector.
The development of a conceptual framework for public sector accounting standards is an important step towards their widespread adoption in various jurisdictions and may see some countries move to base public sector, and possibly not-for-profit, accounting standards on IPSASs (for instance, the New Zealand Accounting Standards Review Board is currently considering the viability of adopting IPSASs in New Zealand).
Comments on the documents are requested by 15 June 2011. Click for IPSASB press release (link to IFAC website).
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15 December 2010: Notes from Day 3 of December IASB meeting
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The IASB is meeting in London on 13-17 December 2010 for its regular December meeting, some of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the topics discussed on day three of the meeting. We have also posted the notes of the revenue recognition project discussion from Day 2 of the meeting. The topics discussed were as follows (click through for direct access to the notes for that particular topic):
Tuesday, 14 December 2010
Wednesday, 15 December 2010
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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15 December 2010: We comment on ED/2010/9
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Deloitte has submitted a comment letter on Exposure Draft ED/2010/9 Leases. The proposal would result in a consistent approach to lease accounting for both lessees and lessors—a 'right-of-use' approach.
We
agree with the proposed right-of-use model when it is applied to very simple lease arrangements that include a
fixed term with fixed payments as we believe this will increase transparency of the economic effects of
leasing arrangements to users of the financial statements. However, we have significant concerns over the
application of the right-of-use model when the arrangement includes other terms such as options and
contingencies. Click to
Download our Comment Letter (PDF 146k). All of our past comment letters are here.
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15 December 2010: Notes from December IASB meeting
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The IASB is meeting in London on 13-17 December 2010 for its regular December meeting, some of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the topics discussed on the first two days of the meeting, as follows (click through for direct access to the notes for that particular topic):
Monday, 13 December 2010 (IASB only)
- IFRS 1 – Severe hyperinflation - comment letter analysis
- Scope of the amendment
- Comparative information
- Other comments
- Post-employment benefits
- Past service costs, curtailments and settlements
- Multi-employer plans
- Tax and administration costs
- Mortality assumptions
- Incorporating IFRIC 14
- Identification of back-end loaded plans
- Interim reporting
- State plan and group plan disclosures
Tuesday, 14 December 2010 (IASB-FASB joint meeting)
- Fair value measurement
- Disclosure requirements for modifications to fair value
- Fair value measurement of a liability issued with an inseparable third-party guarantee
- Asset and liability offsetting
- Multilateral netting arrangements
- Disclosure requirements
- Transition requirements
- Comment period
The IASB and FASB also discussed revenue recognition, the notes for this session will be posted soon.
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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14 December 2010: ASB study on capital management disclosures
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The UK Accounting Standards Board (ASB) has conducted a study into financial capital management disclosures based largely on
published annual reports and accounts of 65 companies across all market
sectors. 25
companies appeared to have given no IAS 1 capital management disclosures at all. The annual
reports and accounts of the residual 40 companies were then reviewed in more detail covering
both the business review and the audited financial statements. Even though the study
concludes that there is good practice in places
the overall finding is:
"The majority of companies omitted or provided largely boilerplate information about
financial capital in a manner that failed to convey meaningfully how they assess capital
and how they manage it over the medium to long term. There are significant
opportunities for improvement in reporting about capital." |
Click for:
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14 December 2010: OECD and GRI form partnership to promote sustainability reporting
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The Global Reporting Initiative (GRI) and the Organisation for Economic Co-operation and Development (OECD) have announced a Memorandum of Understanding forming a partnership which aims to give companies greater guidance and support on how to conduct their business responsibly and report on their sustainability performance.
The partnership is designed to help companies make greater use of the OECD Guidelines for Multinational Enterprises and the GRI Sustainability Reporting Framework, with the objective of bringing increased coherence and consistency to their efforts to act more responsibly and be more transparent about their sustainability.
The OECD Guidelines for Multinational Enterprises and the GRI Sustainability Reporting Framework are based on and promote the same internationally agreed standards and principles for responsible business conduct, including social and human rights and economic and environmental matters. The GRI Sustainability Reporting Framework provides guidance on how to measure sustainability performance and the OECD Guidelines for Multinational Enterprises provides a benchmark to assess such performance.
Click for:
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14 December 2010: Deloitte Japan webcast on November IASB meeting
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Deloitte's IFRS Centre of Excellence in Japan has released a recorded webcast on the November meeting of the IASB. The 33 minute webcast is available for viewing until 30 April 2011.
Click for:
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13 December 2010: Peru requires IFRS for public filers
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On October 14, 2010 the Peruvian regulator (CONASEV), issued resolution Nº 102-2010-EF/94.01.1 (PDF 195k, in Spanish) by which public filers in the local Stock Market must prepare financial statements under IFRS as issued by the International Accounting Standard Board (IASB).
Until now, Peruvian companies (public and non-public) issue financial statements under Peru Generally Accepted Accounting Principles (PEGAAP) which is IFRS based after endorsement by the Consejo Normativo de Contabilidad (CNC). The last endorsement of IFRS by CNC was on August 23, 2010 which is effective since January 1, 2011. Therefore non-public companies will continue to issue financial statements under PEGAAP, while public companies will apply IFRS 1 and issue financial statements under full IFRS as issued by IASB.
CONASEV has indicated that public companies should prepare the first financial statements under IFRS by December 31, 2011; investment funds, and others should prepare the first financial statements under IFRS by December 31, 2012. Early application of IFRS is optional and should be communicated to CONASEV. The adoption of IFRS should be definitive and unreserved. Interim financial statements will be presented under IFRS for the year 2012 (if early adoption was elected, 2011).
CONASEV's resolution is a significant step towards transparency and high quality financial information in the Peruvian stock market.
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13 December 2010: 'IFRS at a critical crossroad'
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The IASB has posted to its website a
section of the keynote speech entitled
'Regulatory Reform and IFRS at a Critical Crossroad' at the FEI conference,
given by IFRS Foundation Trustee Harvey Goldschmid. In his speech Mr. Goldschmid
describes two basic scenarios that are probable if the US Securities and
Exchange Commission (SEC) comes to a negative decision on IFRS adoption:
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"First, the coalition of nations supporting IFRS could break apart. Rather than two sets of accounting standards, IFRS and U.S. GAAP, we could go back to pre-2000 fragmentation. Many national accounting systems would exist. The cost, in terms of lack of transparency and comparability, higher accounting expenses, etc., would be extremely large.
The second basic scenario is even worse from a U.S. perspective. The coalition in support of IFRS could hold and the U.S. would become isolated. The U.S. would no longer play the large and constructive role it now plays in IFRS development and oversight. I believe that without active U.S. participation the overall quality of the international accounting standards would deteriorate. Remember, there is less concern about transparency and investor protection in some other parts of the world."
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13 December 2010: Six Deloitte publications issued
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Deloitte's Asia-Pacific IFRS Centre of Excellence in Hong Kong has published Hong Kong Financial Reporting Standards – Illustrative Annual Financial Statements 2010, illustrating disclosures in force for December 2010 year ends and beyond.
Deloitte (United States) has published a new Heads Up newsletter summarising some of the feedback received in the comment letters to the FASB's exposure draft on revenue recognition and feedback from the roundtable discussions on the exposure draft
as well as a Heads Up newsletter on the deferral of the effective date of disclosures about troubled debt restructurings. We
have also posted the December 2010 edition of EITF Snapshot, the November 2010
edition of Accounting Roundup and the December 2010 edition of Australia Accounting Alert. Click for:
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13 December 2010: United States 'Blue Ribbon Panel' develops plans for private company standard-setting board
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At a meeting held on 10 December 2010, the 'Blue Ribbon Panel' addressing how United States accounting standards can best meet the needs of users of private company financial statements has continued its discussion of a potential new standard-setting board for private companies, reaffirming a consensus view reached in October that a separate private company standards board under the oversight of the Financial Accounting Foundation (FAF) be created.
The panel also addressed related issues such as how the new board would work with the Financial Accounting Standards Board (FASB) throughout the standard-setting process, what would be the new board's mission and structure, and how it would be potentially funded. The panel also began preparation of a draft report containing its recommendations, and is expected to issue the report to the FAF Board of Trustees in early 2011 and then to the public.
Click for press release (link to FAF website).
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13 December 2010: New exposure draft from IAESB
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The International Accounting Education Standards Board (IAESB) has released for public exposure a proposed revision of International Education Standard (IES) 7, Continuing Professional Development: A Program of Lifelong Learning and Continuing Development of Professional Competence.
The proposed redrafting aims to assist the ongoing worldwide development of continuing professional development systems and compliance mechanisms.
Comments on the exposure draft are requested by 8 March 2011. Click for IAESB press release (link to IFAC website).
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11 December 2010: New issue of the IASB's Investor Perspectives
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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.
For the new issue of the Investor Perspectives they have been joined
by Paul Pacter, IASB member and former webmaster of IAS Plus:
All Investor Perspectives are archived on the
IASB's website.
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10 December 2010: Updated agenda for the December 2010 IASB meeting
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The IASB has made additional revisions to its agenda for its monthly meeting being held in London from 13 to 17 December 2010. The asset and liability offsetting discussion and the discussion on impairment have been swapped with each other. Impairment will now be discussed on Thursday morning and offsetting on Tuesday afternoon. In addition, changes were made to the start times for Tuesday's sessions. Click here to view the updated agenda. |
10 December 2010: Deadline reminder – ED on Leases
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remind you that comments on the Exposure Draft
Leases are due on
15 December 2010. The proposals in the ED would result in a consistent approach to lease accounting for both lessees and lessors – a
'right-of-use' approach.
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10 December 2010: IFRS for SMEs adopted in another three countries
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The IFRS for SMEs, the first set of international accounting requirements developed specifically for small and medium-sized entities, has been
adopted in three countries in Central and South America. |
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Chile. The Chilean Government has agreed to require the IFRS for SMEs for all entities that are not publicly accountable starting in 2013. Formal announcement of the details will be published shortly.
Click here to visit our Chile country page. |
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Guatemala. The Guatemalan Institute of Public Accountants and Auditors has approved the adoption of the IFRS for SMEs for fiscal years beginning on or after of 1 January 2011.
Click here to visit our Guatemala country page. |
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Venezuela. The Federation of Certified Public Accountants of Venezuela has approved the adoption of the IFRS for SMEs for fiscal years beginning on or after of 1 January 2011. Early adoption is permitted from 2010. Large unlisted companies that, since 2008, have been required to use full IFRSs may switch to the IFRS for SMEs or keep their financial statements under full IFRSs.
Click here to visit our Venezuela
country page. |
9 December 2010: Deloitte IFRS Podcast on financial instruments: hedge accounting exposure draft
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We've released a podcast where Andrew Spooner, lead IFRS financial instruments partner, and Kush Patel, senior manager and recent IASB Practice Fellow, discuss the IASB's exposure draft on hedge accounting. They discuss the key changes that are proposed and provide an insight into the likely effect they will have in practice. The discussion is chaired by Robert Bruce. The podcast is available for download
here
(35:18 mins 33 mb) or via
iTunes; it is one of a series that will be posted to IAS Plus. All podcasts of the series are available
here.
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9 December 2010: IASB publishes exposure draft on hedge accounting
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The International Accounting Standards Board (IASB) has published for public comment an exposure draft on the accounting for hedging activities. The exposure draft proposes requirements designed to enable companies to better reflect their risk management activities in their financial statements, and, in turn, help investors to understand the effect of those activities on future cash flows.
The proposed model is principle-based, and is designed to more closely align hedge accounting with risk management activities undertaken by companies when hedging their financial and non-financial risk exposures.
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Summary of the ED proposals
- A new hedge accounting model which combines a management view that aims to use information produced internally for risk management purposes and an accounting view that seeks to address risk management issue of the timing of recognition of gains and losses
- Look only at whether a risk component can be identified and measured, as opposed to determining what can be hedged by type of item (financial or non-financial)
- Base qualification for hedge accounting on how entities design hedges for risk management purposes and permit hedging relationships to be adjusted without necessarily stopping and potentially restarting hedge accounting
- Treat the time value premium of a purchased option as a cost of hedging, which will be presented in other comprehensive income (OCI)
- Extending the use of hedge accounting to net positions (to improve the link to risk management)
- A comprehensive set of new disclosures that focus on the risks being hedged, how those risks are being managed and the effect of hedging those risks upon the primary financial statements
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The exposure draft forms part of the IASB's
overall project to replace IAS 39 Financial Instruments: Recognition and Measurement, and when its proposals are confirmed they will be incorporated into
IFRS 9 Financial Instruments. The exposure draft does not include consideration of portfolio macro hedge accounting which the IASB will continue to discuss.
The exposure draft ED/2010/13 Hedge Accounting is open for comment until 9 March 2011. The IASB intends to finalise and issue the proposals during the first half of 2011.
Click for:
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9 December 2010: United States SEC to consider hybrid model for IFRS adoption?
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Paul A. Beswick (Deputy Chief Accountant, United States Securities Exchange Commission) has revealed a possible approach for adoption of IFRS in the United States. Providing his personal views while speaking at the AICPA National Conference in Washington, D.C., Mr Beswick coined the term 'condorsement' to refer to a possible hybrid model to adopting IFRSs in the United States.
An extract from the published text of the speech is reproduced below:
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"... While I am a supporter of the objective of a single set of high-quality accounting standards in concept, I have not reached a conclusion on whether, and how, the U.S. capital markets should move to IFRS.
So what would be a reasonable approach for the U.S.? In our October update we highlighted that the majority of jurisdictions are following either a convergence or an endorsement approach. In my opinion, if the U.S. were to move to IFRS, somewhere in between could be the right approach. I will call it a "condorsement" approach....
So how would this approach work? Well, to begin, U.S. GAAP would continue to exist. The IASB and the FASB would finish the major projects in their MOU. The FASB would not begin work on any major new projects in the normal course. Rather, a new set of priorities would be established where the FASB would work to converge existing U.S. GAAP to IFRS over a period of time for standards that are not on the IASB's agenda.
At the same time, the FASB would have a process where they would consider new standards issued by the IASB for incorporation into U.S. GAAP and then integrate such standards into the U.S. codification. The ideal would be to incorporate such standards as issued by the IASB without modification. However, criteria would need to be established for FASB's consideration of endorsing or incorporating standards...
In any case let me reiterate that all I have done is I've outlined an idea."
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Mr Beswick also discussed the costs of a "big bang" approach to adopting a new accounting framework (such as IFRS), the impacts on various categories of companies and the need for the IASB and FASB to focus on producing high-quality accounting standards as opposed to meeting deadlines. The full text of the published speech can be found here (link to SEC website).
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8 December 2010: Notes from special December IASB meeting
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The IASB met in London on 8 December 2010 for a special joint meeting with the FASB. The topics discussed were as follows:
Click here to go to the preliminary and unofficial
Notes Taken by Deloitte Observers for the meeting. The next IASB meeting is scheduled for 13-17 December 2010.
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8 December 2010: PCAOB staff comments at AICPA National Conference
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Further to our story yesterday about the United States SEC comments at a recent AICPA National Conference, the Public Company Accounting Oversight Board (PCAOB) has also now released transcripts of speeches made by its staff at the conference.
Martin Baumann (Chief Auditor) spoke on the current audit environment, standard setting activities and the impact of the FASB/IASB convergence projects. An extract from the published text of his speech is reproduced below:
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"... My office has been closely monitoring the FASB/IASB convergence projects and, in many cases, have held discussions with the FASB and the SEC. We've also had substantive discussions at the last two meetings of our Standing Advisory Group regarding the pace, volume and nature of changes being proposed to the U.S. accounting framework... the SAG discussions expressed concern about the pace, volume and nature of accounting change and the potential audit implications.
Our SAG has also advised us to consider new auditing standards that may be necessary in light of the changes in the accounting framework, so that we don't see any slippage in audit quality and, therefore, in the reliability of financial reports.
I want to fully acknowledge the efforts of the FASB/IASB and SEC in pursuing the goal of a single set of high quality standards. But for all of us in standards-setting, we're at a crossroad and the direction we each take has great significance for the future."
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Daniel L. Goelzer (Acting Chairman) also spoke on recent PCAOB achievements and on certain aspects of the PCAOB agenda for 2011, including broker-dealer audits, foreign inspections and the auditor's reporting model.
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8 December 2010: IASB publishes IFRS Practice Statement on Management Commentary
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The International Accounting Standards Board (IASB) has today published an International Financial Reporting Standard (IFRS) Practice Statement Management Commentary, a broad, non-binding framework for the presentation of narrative reporting to accompany financial statements prepared in accordance with IFRSs.
Management commentary is a narrative report, that accompanies but
is presented outside of the financial statements, setting out management's explanation of the enterprise's financial condition, changes in financial condition, results of operations, and causes of changes in material line items.
Many entities see management
commentary as an important element of their communication
with the capital markets, supplementing as well as complementing the
financial statements.
The Practice Statement is not an IFRS. Consequently, entities applying
IFRSs are not required to comply with the Practice Statement, unless
specifically required by their jurisdiction. Furthermore, non-compliance
with the Practice Statement will not prevent an entity's financial
statements from complying with IFRSs, if they otherwise do so.
Click for:
An entity may apply the Practice Statement to management commentary
presented prospectively from 8 December 2010.
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8 December 2010: 2011 IFRS 'Blue Book' now available
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Further to our story on 22 November 2010, the IFRS Foundation has published the 2011 IFRS Consolidated without early application. This volume (nicknamed the 'Blue Book') contains all official pronouncements that are mandatory on 1 January 2011. It does not include IFRSs with an effective date after 1 January 2011. The Blue Book sells for £60 plus shipping (academic, developing country, and volume discounts apply). The publication can be purchased through the IASB web store.
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8 December 2010: Financial Accounting Foundation to webcast FASB Meetings live
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The Financial Accounting Foundation (FAF), responsible for the oversight of the Financial Accounting Standards Board (FASB), has announced the launch of a new video webcasting service. The first meetings to be video webcast will be two FASB meetings taking place on Wednesday, 8 December:
- The joint IASB-FASB meeting beginning at 8:00 a.m. EST (US)
- the FASB weekly Board meeting, beginning at approximately 10:15 a.m. EST (US).
The webcasts will be available here.
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8 December 2010: Updated agenda for the December 2010 IASB meeting
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The IASB has substantially revised its agenda for its monthly meeting for December 2010 being held at the IASB offices in London from 13 to 17 December 2010. Meeting times and topics have been amended and a short meeting will now be held on Thursday. Presented below is the entire revised agenda for the meeting.
All times are Greenwich Mean Time (GMT).
IASB Board Meeting Agenda (Revised)
13-17 December 2010, London |
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Monday, 13 December 2010
IASB Meeting (15:00-18:15)
Tuesday, 14 December 2010
IASB-FASB Joint Meeting (11:00-17:15)
Wednesday, 15 December 2010
IASB Meeting (08:00-08:45)
IASB-FASB Joint Meeting (09:00-12:45)
Thursday, 16 December 2010
IASB-FASB Joint Meeting (08:00-08:45)
Friday, 17 December 2010
IASB Meeting (08:00-10:15)
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7 December 2010: SEC staff comments at AICPA National Conference
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The United States Securities and Exchange Commission (SEC) has published transcripts of speeches made by its staff at a recent AICPA National Conference on current SEC and PCAOB Developments.
Mary L. Schapiro (SEC Chairman) focused on the role accountants have in restoring trust in capital markets, including comment on international convergence of auditing and accounting standards. Deloitte observers reported that Ms. Schapiro indicated in the Q&A session that the SEC is not working towards a 'hard' deadline of June 2011 in making its decision but expects to make a decision sometime in 2011 on whether or not to adopt IFRS in the United States. Ms. Shapiro further indicated that while comments from U.S. constituents have not expressed universal support for IFRS, they did almost unanimously comment requesting that sufficient time be given U.S. companies if IFRS is adopted. Ms. Shapiro stated it is likely at least a four-year preparation period will be permitted but remains a decision point for the Commission. An extract from the published text of her speech is reproduced below:
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"... we are focusing on accounting standards and convergence. Because, investors should be able to make accurate comparisons and judgments regardless of an entity's line of business, ownership status or corporate domicile.
And so, the SEC continues to monitor the progress being made by the FASB and the IASB on the convergence of international accounting standards. As expected, the path towards convergence has proved steep and winding at times. But both Boards have responded to the challenges...
I am pleased with the progress to date and remain optimistic about achieving a convergence that benefits investors in the U.S. and around the world."
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Brian T. Croteau (Deputy Chief Accountant, Office of the Chief Accountant) discussed the international convergence of auditing standards, noting:
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"... I think we can and should think about convergence of auditing standards differently than convergence of accounting standards in that incremental requirements added by one standard setter do not necessarily preclude proper application of other standards or necessitate a conclusion that they are not 'converged' in the same way that accounting standards may lack convergence. For example, often an auditor can perform additional procedures in one set of standards without affecting the ability to have complied with the standards of another standard setter... On the other hand, when accounting standards lack convergence and the application results in differences in recognition or measurement, complying with two sets of standards simultaneously simply may not be a possibility and users end up receiving different financial reporting information. "
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Lisa D. Watson (Professional Accounting Fellow) also spoke on accounting for foreclosed real estate involving loan participations and derecognition for transfers of businesses not in legal entities.
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7 December 2010: IFAC and A4S community website on sustainability reporting
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The International Federation of Accountants (IFAC) and The Prince's Accounting for Sustainability Project (A4S) have created a 'community website' on sustainability reporting. The objective of the website is to help business leaders, finance professionals, academics, professional accountancy bodies and others exchange ideas and share good practice on how environmental and social performance can be better connected with strategy and financial performance, and embedded into day-to-day operations and decision-making.
One of the aspects of the site is a discussion forum on various topics. The forum is currently discussing "Accountants and integrated reporting - A look at key challenges". This online discussion is focused on reflections from the World Congress of Accountants held in Kuala Lumpur in November 2010 and seeks to answer the question "Integrated reporting means different things to different people. What do you think 'integrated reporting' should look like?" The outcomes from the discussion are expected to be passed onto the International Integrated Reporting Committee (IIRC) to take into account in its activities and recommendations on integrated reporting during 2011.
Click for:
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6 December 2010: Webinar on the IASB's exposure draft on hedge accounting
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On 15 December 2010, Deloitte (UK) and Reval are hosting a webinar to discuss the IASB's exposure draft on hedge accounting. The webinar will take a closer look at how the proposals could affect corporates. The webinar will cover, among other items:
- The new effectiveness testing requirements
- A new way to account for financial options used for hedging
- Hedge accounting for risk components of non-financial items
This webinar is free of charge, however registration is required.
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6 December 2010: Special December IASB meeting on 8 December
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The special joint IASB/FASB meeting on 8 December 2010 has been brought forward by one hour to
13:00 GMT. The topic to be discussed is still
Financial Instruments: Impairment.
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6 December 2010: IFRS Illustrative Financial Statements for 2010 with early adoption of IFRS 9
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We have posted Deloitte's IFRS Illustrative Financial Statements for 2010 with early adoption of IFRS 9 (Word version) (ZIP of a Microsoft Word file
461k).
These model financial statements for the year ended 31 December 2010 illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) by an entity that is not a first-time adopter of IFRSs. They also illustrate the impact of the application of a number of new and revised Standards and Interpretations, including IFRS 9 Financial Instruments (as issued in November 2009 and revised in October 2010).
A PDF version of these model financial statements will be available soon and posted with our various IFRS model financial statements and related checklists, including translations, which are available Here.
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4 December 2010: Live webcasts on ED Financial Instruments – Hedge Accounting
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On Monday 13 December staff of the IASB will present two webcasts about the ED Financial Instruments – Hedge Accounting which
is expected to come out next week.
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3 December 2010: Agenda for the December 2010 IASB meeting
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The IASB will hold its monthly meeting for December 2010 at the IASB offices in London from 13 to 17 December 2010. The second and third
days of the meeting are joint meetings with FASB. The meeting will be open to public observation. Presented below is the agenda for the meeting.
All times are Greenwich Mean Time (GMT).
IASB Board Meeting Agenda
13-17 December 2010, London |
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Monday, 13 December 2010
IASB Meeting (14:45-18:00)
Tuesday, 14 December 2010
IASB-FASB Joint Meeting (10:00-10:45)
IASB-FASB Joint Meeting (11:00-17:15)
Wednesday, 15 December 2010
IASB-FASB Joint Meeting (09:00-12:45)
Thursday, 16 December 2010
No Board meeting sessions – Insurance Contracts round table meetings
Friday, 17 December 2010
IASB Meeting (08:00-10:15)
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3 December 2010: Three Deloitte publications issued
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Deloitte's Singapore Office has published Changes to the financial reporting framework in Singapore, which provides an update of the recent changes
in the Singapore financial reporting framework. In The top 10 issues mining companies will face in the coming year, Deloitte professionals look ahead to 2011 and consider the trends that will affect the mining industry.
Finally, the IFRS Global Office issued IFRS Project Insights – Income Taxes, which provides an update on the Income Tax project. Click for:
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3 December 2010: Notes from special December IASB meeting
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The IASB met in London on 3 December 2010 for a special meeting. The topics discussed were as follows:
Click here to go to the preliminary and unofficial
Notes Taken by Deloitte Observers for the meeting. The next
meeting (IASB/FASB joint) will be a special meeting on
Financial Instruments: Impairment scheduled for
8 December 2010.
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3 December 2010: Live webcasts on Management Commentary
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On Thursday 16 December staff of the IASB will present two webcasts about the IFRS Practice Statement Management Commentary which is expected to come out this month. Management commentary is a narrative report that provides a context for the related financial statements. The Practice Statement
will provide a broad, non-binding framework for the presentation of management commentary that relates to financial statements that have been prepared in accordance with International Financial Reporting Standards (IFRSs).
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2 December 2010: November edition of IFRS on Point issued
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Deloitte's IFRS Global Office has published the November 2010 edition of IFRS on Point, which highlights the month's critical financial reporting developments. IFRS on Point is published monthly and provides a great way to catch up on the main IFRS-related news stories of the month.
Click for:
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2 December 2010: United States publication focuses on the value of an IFRS Center of Excellence
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Deloitte (United States) has published CFO insights: Cut costs and drive value with an IFRS Center of Excellence (PDF 89k). As CFOs throughout the world prepare for a shift from local GAAP to IFRSs, there is an opportunity for CFOs to improve the efficiency of preparation, consistency, and reliability of their company's financial reports by establishing an IFRS Center of Excellence.
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2 December 2010: We comment on ED/2010/8
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Deloitte has submitted a comment letter on Exposure Draft ED/2010/8 Insurance Contracts. The amendment 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.
We welcome the model proposed in the ED because it offers improvements to the accounting for insurance
contracts under existing IFRS practices. However, the ED includes a number of proposals that appear to move away from the ED's core principles and we recommend that the Board considers alternative solutions to address these areas to ensure consistency with the ED's core principles. Click to
Download our Comment Letter (PDF 125k). All of our past comment letters are here.
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2 December 2010: EFRAG issues its feedback statement on its proactive consultation
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The European Financial Reporting Advisory Group (EFRAG) issued
a feedback statement on the
public consultation on its Proactive work. The
feedback statement provides a summary of the comments received, along with EFRAG's responses and proposed actions.
EFRAG Chairman, Françoise Flores, comments: "We were very encouraged by the response and have heard loud and clearly the message that we need to ensure that our proactive work is focused, practical and reaches the widest possible audience. Our ambition remains for Europe to be at the forefront of developments in financial reporting."
Click for
EFRAG press release (link to EFRAG website) and the
feedback statement
(PDF 860k).
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2 December 2010: Singapore issues SFRS for Small Entities
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The Singapore Accounting Standards Council (ASC) has issued the Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities).
The SFRS for Small Entities is based on the IFRS for SMEs. The main differences are the references to Singapore Financial Reporting Standards (SFRS) instead of IFRS, as well as the description of the scope and applicability of the SFRS for Small Entities. The ASC has stated in its accompanying 'Statement on Applicability' that these changes do not constitute a deviation from the IFRS for SMEs.
An entity is eligible to the apply the SFRS for Small Entities if it is not publicly accountable, publishes general purpose financial statements for external users, and meets the definition of a 'small entity' (for each of the previous two consecutive financial reporting periods, with amended application to newly incorporated entities). An entity qualifies as a small entity if it meets at least two of the three following criteria:
- total annual revenue of not more than S$10 million
- total gross assets of not more than S$10 million
- total number of employees of not more than 50.
The standard applies (as an option) as an alternative framework to the Singapore Financial Reporting Standard (SFRS) for the preparation and presentation of general purpose financial statements of entities for financial reporting periods beginning on or after 1 January 2011. Click for ASC press release (link to ASC website).
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1 December 2010: Notes from special December IASB meeting
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The IASB met in London on 1 December 2010 for IASB and FASB special meeting. The FASB staff joined the meeting via teleconference. The topics discussed were as follows:
- Financial Instruments: Impairment
- Scope – short-term trade receivables
- Scope – individual financial instruments
- Allocation of expected losses
- Good book/bad book consideration
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the meeting. The next IASB meeting will be a special meeting on Income Taxes scheduled for 3 December 2010.
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1 December 2010: Islamic Finance: Strengthening the Global Financial Market
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At the 18th World Congress of Accountants (WCOA) 2010 in Kuala Lumpur in November 2010 Dr Zeti Akhtar Aziz, Governor of
the Central Bank of
Malaysia, delivered a keynote address titled 'Islamic Finance: Strengthening the
Global Financial Market'. The Congress discussed the challenges to the industry in the aftermath of the recent financial crisis. The Shariah Board in
Islamic financial institutions provides an extra layer of oversight, and Islamic finance has continued
its global expansion during the financial crisis, expanding at an average annual rate of 20 per cent and representing one of the fastest growing segments in the financial industry.
On financial reporting, Dr Zeti observed that applying the existing accounting frameworks and conventions to Islamic financial institutions may prove to be more challenging given the unique features of Islamic financial transactions such as the equity based and profit sharing contracts. She commended the work done by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in enhancing cross-border comparability of Islamic financial transactions
and urged the International Accounting Standards Board (IASB) to engage in the process.
At the same conference, IASB Chairman Sir David Tweedie had noted Islamic
Accounting as one of the possible issues for the IASB's agenda post-2011.
Click for
Dr Zeti's keynote address and
Sir David Tweedie's presentation slides (both links to WCOA website).
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1 December 2010: New comprehensive publications from Deloitte (UK)
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Deloitte (UK) has published updated editions of two of its popular comprehensive financial reporting guides.
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iGAAP 2011 – IFRS Reporting in the UK
The fourth edition of this comprehensive guide sets out comprehensive guidance for UK companies reporting under IFRSs. It has been updated not only to deal with new or amended requirements but also to reflect increased practical experience of dealing with IFRS issues and include many more illustrative examples. It states the differences between the requirements of IFRSs and UK GAAP, and also identifies those UK specific requirements that continue to apply to companies applying IFRSs.
As well as dealing comprehensively with standards that will apply for periods ending 31 December 2010, it also covers those further pronouncements issued by the IASB up to 31 July 2010 that are not yet mandatory, distinguishing clearly those that have not yet been endorsed by the European Commission. New material includes:
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
- the revised version of IAS 24 Related Party Disclosures
- the IASB's amendments to existing standards
- an overview of the IFRS for SMEs, identifying key differences with full IFRSs
- IFRS 9 Financial Instruments.
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iGAAP 2011 – Financial statements for UK listed groups
The latest edition of this publication illustrates disclosures in force for December 2010 year ends and beyond. The disclosure requirements of the revised IFRS 3 Business Combinations and the related changes in IAS 27 Consolidated and Separate Financial Statements are illustrated, along with the voluntary disclosures from the Department for Environment, Food and Rural Affairs' reporting guidance on 'carbon reporting' and the proposed disclosures of the Equality and Human Rights Commission on gender pay analysis which is encouraged by the Equality Act 2010. The directors' remuneration disclosures for AIM companies, which were introduced in 2010, are included in a new appendix.
Orders for both publications may be placed via www.lexisnexis.co.uk/deloitte.
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1 December 2010: IPSASB issues annual improvements
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The International Public Sector Accounting Standards Board (IPSASB) has completed its improvements project for 2010 with the release of Improvements to IPSASs – 2010.
The 2010 improvements amend existing International Public Sector Accounting Standards (IPSASs). The amendments consist of two parts:
- Part 1 - amendments that are drawn from the IASB document, Improvements to IFRSs issued in April 2009
- Part 2 - amendments that relate to inconsistent references to standards, terminology and structure resulting from IPSASB's general review of existing IPSASs.
The amendments generally apply to periods beginning on or after 1 January 2012 and may be early adopted. Click for IFAC press release (link to IFAC website).
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