28 February 2010: Deloitte Canada IFRS transition newsletters

Deloitte Canada has published the February 2010 issue of their Countdown IFRS transition newsletter, to discuss practical issues Canadian companies are facing in IFRS transition as well as to provide an update on recent IFRS events. Articles in this issue include: Under Pressure? Taking the stress out of IFRS! The Real Deal – the focus this month is on the Management Discussion and Analysis (MD&A) Regulatory review of MD&A disclosures on IFRS transition An update on international standard setting activities Click below for: February 2010 Edition Countdown Newsletter – English (PDF 1,127k) February 2010 Edition Countdown Newsletter – French (Compte à Rebours) (PDF 680k) Related items: You will find more information about financial reporting in Canada on our Canada Page. We have a special page on First-time Adoption of IFRSs We've recently published a new Guide to IFRS 1 (PDF 370k)

28 February 2010: EU Parliament hearings discuss accounting

The European Parliament's Special Committee on Financial, Economic and Social Crisis (CRIS) held a hearing on 25 February 2010 to examine financial regulation and supervision in Europe. Accounting standards were among the issues discussed. Bank of France governor Christian Noyer stressed 'the need for accounting standards to take account of the real risks'. Bettina Corves-Wunderer, CFO of Allianz Italy said that 'untransparent and insufficiently harmonised accounting standards had also led to procyclical behaviour'. Click to download Committee Press Release (PDF 126k).

28 February 2010: FASB trustees' statement on SEC work plan

The Trustees of the Financial Accounting Foundation (FAF), oversight body of the US Financial Accounting Standards Board, have issued a statement acknowledging "the SEC's leadership regarding its consideration of global accounting standards, including its continued support for the goal of a single set of high quality globally accepted accounting standards", as expressed in the Commission's recent Statement. The FAF said: Both the FAF and the FASB support the SEC's view that a single set of high-quality globally accepted accounting standards will benefit US investors. This goal is consistent with our mission of providing high quality standards for investors and capital market participants, which help ensure fair, orderly, and efficient markets, and assist in capital formation. The FASB continues to aggressively pursue the goal of a single set of high-quality accounting standards with the International Accounting Standards Board (IASB), as evidenced by intensified work efforts between the two Boards on the convergence projects identified in the Memorandum of Understanding (MoU) with the IASB. Click to Download the FAF Statement (PDF 65k).

27 February 2010: Heads Up on the SEC's plan for IFRSs

The latest Heads Up newsletter from Deloitte (United States) discusses the SEC's recently released Statement (a) expressing its strong commitment to the development of a single set of high-quality globally accepted accounting standards and (b) directing the SEC staff to execute a 'Work Plan'. The Work Plan sets out a detailed set of due diligence activities that the SEC staff will perform to provide the Commission with the information it needs to make a determination of whether, when, and how to incorporate IFRSs into the US financial reporting system. Click to Download the Heads Up Newsletter titled The Road to IFRSs Is Under Construction (PDF 144k).

27 February 2010: Deloitte Dbriefs webcast on SEC's plan for IFRSs

The SEC recently expressed its support for global accounting standards and announced a work plan for moving forward with IFRS in the United States. What do you need to know now to better position your company for the future? This webcast will discuss: An overview of the SEC statement and the work plan including SEC's key areas of concern regarding the use of IFRS by US issuers A possible timeline for IFRS adoption in the United States The importance of FASB's and IASB's convergence efforts and their current plans for completion in June 2011 There is no cost to participate, but you must register. Details: Webcast Topic: International Financial Reporting Standards: SEC's Plans for Moving Forward Date and Time: Tuesday, 9 March 2010, 2:00pm to 3:30pm US EST More Information and Registration: Click Here

27 February 2010: Deloitte Canada IFRS update webcast

IFRSs have now been incorporated into the Canadian Institute of Chartered Accountants (CICA) Handbook. Deloitte (Canada) will host a webcast on 23 March 2010 that will include a discussion of the following: Review of the IASB project plan and status of key projects of interest to Canadian companies including rate regulated activities, consolidation, financial instruments, joint ventures, provisions and more Update on the status of CSA draft proposals and recent commentary about management's discussion and analysis (MD&A) disclosures regarding IFRS transition Obtain an overview of matters discussed by the AcSB's IFRS Discussion Group Suggestions to improve your conversion activities throughout 2010 Webcast Topic: Q1 2010 IFRS technical update webcast Date and Time: Tuesday, March 23, 2010, 2:00pm to 3:30pm EDT Speakers: Karen Higgins, FCA, National Director Accounting Services; Diana De Acetis, CA, Partner; Glen Mitchell, CA, Senior Manager More Information and Registration: Click Here A French version of this webcast is offered on 7 April 2010, 2:00pm to 3:30pm EDT. Click here for Information.

27 February 2010: Deloitte Dbriefs webcast on IFRSs and tax

Many US companies still consider conversion to IFRSs as a faraway event. But there are many ways tax executives can lay groundwork today that makes for smoother transition tomorrow. Deloitte (United States) will host a webcast on 29 March 2010 that will discuss: Regulatory developments from the SEC, how they impact your conversion timeline and steps you can take to prepare Tax implications of IFRS conversion in the U.S. and abroad, including global tax and treasury planning Tax operations, including education and training, data blueprinting, and supporting software Broader tax implications of IFRS conversion and how the tax function can drive value and potential funding opportunities for the process There is no cost to participate, but you must register. Details: Webcast Topic: IFRS and Tax – Driving Value through Advanced Preparation Date and Time: Monday, 29 March 2010 2:00pm to 3:00pm US EDT Host: Rita Benassi, Partner – Deloitte Tax LLP More Information and Registration: Click Here

26 February 2010: AICPA statement on SEC IFRS work plan

The American Institute of CPAs has issued a Statement (PDF 46k) on the Securities and Exchange Commission's Commission's Endorsement of a Plan to work toward incorporation of IFRSs in the US financial reporting system. The AICPA statement says: The AICPA believes that it is critical for the SEC to set a date certain for use of IFRS in the U.S. and we urge the commission, as it completes this work plan in 2011, to ensure investor confidence is maintained and key milestones lead successfully to global standards in 2015.

26 February 2010: Agenda for special IASB and IASB-FASB meetings

The IASB and FASB will hold special joint meetings on 3 March 2010 and 11 March 2010, in advance of their regular monthly meeting on 15-19 March 2010. At both the 3 March special meeting, the IASB will also discuss several of its agenda projects separately from FASB. All of the meetings will be at the IASB's offices in London. The meetings will be open to public observation and will be webcast. Presented below are the agendas for the two special meetings. IASB Board Meeting Agenda 3 March and 11 March 2010, London Wednesday 3 March 2010 IASB meeting (12:00-13:00h London time) Financial Instruments: Hedge Accounting Joint IASB-FASB meeting (13:15-14:45h London time) Financial Statement Presentation – Transition and effective date Fair Value Measurement – Plan for publishing educational material to accompany an IFRS on FVM Thursday 11 March 2010 Joint IASB-FASB meeting (14:00-17:15h London time) Financial Statement Presentation – Sweep issues in advance of pre-ballot Financial Instruments with Characteristics of Equity Fair Value Measurement

26 February 2010: Agenda for 4-5 March 2010 IFRIC meeting

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 4 and 5 March 2010 (morning only on 5 March). The meeting is open to the public and will be webcast. The tentative agenda is shown below. Agenda for the IFRIC Meeting Thursday and Friday, 4 and 5 March 2010 Thursday 4 March 2010 (10:00-18:00h London time) Introduction IAS 16 Property, Plant and Equipment – Accounting for production phase stripping costs in the mining industry IFRS 2 Share-based Payment – Vesting and non-vesting conditions Review of Tentative Agenda Decisions published in January 2010 IFRIC Update IAS 21 The Effects of changes in Foreign Exchange Rates – Determination of functional currency of investment holding company IAS 32 Financial Instruments: Presentation – Debt/equity classification of instruments with obligation to deliver cash at the discretion of shareholders IAS 36 Impairment of Assets – Transition provisions for IFRS 8 amendment IAS 39 Financial Instruments Recognition and Measurement – Unit of account for forward contracts with volumetric optionality Annual Improvements – 2008-2010 Cycle Comment analysis for minor issues: Accounting policy changes in the year of adoption (IFRS 1) Clarification of statement of changes in equity (IAS 1) Transition requirements for amendments made as a result of IAS 27R to IAS 21, IAS 28 and IAS 31 Fair value of award credit (IFRIC 13) Accounting policy changes in the year of adoption (IFRS 1) Clarification of statement of changes in equity (IAS 1) Transition requirements for amendments made as a result of IAS 27R to IAS 21, IAS 28 and IAS 31 Fair value of award credit (IFRIC 13) IFRS 3 Business Combinations – Unreplaced and voluntarily replaced share-based payment awards (comment letter analysis) IFRS 3 Business Combinations – Measurement of NCI (review of examples) IFRS 5 Non.current Assets Held for Sale and Discontinued Operations – Loss of significant influence over an associate or jointly controlled entity (comment letter analysis) IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – Change in terminology to the qualitative characteristics IAS 40 Investment Property – Change from fair value model to cost model Staff Recommendations for Tentative Agenda Decision IFRS 1 First-time adoption of International Financial Reporting Standards – Accounting for costs included in self-constructed assets on transition IFRS 5 Non.current Assets Held for Sale and Discontinued Operations – Reversal of impairment losses relating to goodwill IAS 12 Income Taxes – Tax effect of distributions to equity holders IAS 1 Presentation of Financial Statements – Comparative information Friday 5 March (09:00-12:30h London time) Staff Recommendations for Tentative Agenda Decision (continued from Thursday, if needed) Annual Improvements 2009 – 2011 Cycle IFRS 1 First-time Adoption of International Financial Reporting Standards – Hard wire dates IFRS 3 Business Combinations – Contingent consideration and first-time adoption IFRS 8 Operating Segments – Determination of scope IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayment of investment/CTA IAS 26 Accounting and Reporting by Retirement Benefit Plans – Valuation of plan assets IAS 34 Interim Financial Reporting – Consistency in disclosure of total segment assets Administrative Session – IFRIC work in progress

26 February 2010: IFRS e-Learning in Spanish

Several new modules have been added to Deloitte's Spanish Language IFRS e-Learning Site. Currently, the following modules are available in Spanish for download without charge. They are: Conceptual Framework (Marco Conceptual para la Preparación y Presentación de Estados Financieros) IAS (NIC) 1, 2, 7, 8, 10, 11, 16, 17, 18, 19, 21, 23, 24, 28, 29, 31, 38, 40, 41 IFRS (NIIF) 1, 5 Further Spanish language modules are in development and will be released to the site over forthcoming months. We have a permanent link on our Spanish Language IFRS Resources Page.

26 February 2010: Deloitte IFRS University Consortium

To assist accounting educators, Deloitte (United States) has created an International Financial Reporting Standards (IFRS) University Consortium. On the Consortium's Website www.deloitte.com/us/ifrs/consortium, you will find a library of resources and complete, classroom-ready IFRS course materials, including slide decks from Deloitte subject matter leaders, and a series of case studies recently used as part of a graduate level accounting course. Click for a Brief Description (PDF 185k).

25 February 2010: Sierra Leone adopts the IFRS for SMEs

On 30 December 2009, the Council for Standards of Accounting, Auditing, Corporate and Institutional Governance (CSAAG) of Sierra Leone unanimously passed a resolution adopting the IFRS for SMEs for profit-seeking entities that fall outside its conditions for the application of full IFRSs. The IFRS for SMEs is voluntary (that is, permitted) for reporting periods commencing 1 January 2010 and is mandatory (required) for reporting periods commencing 1 January 2011. Listed companies, banks, insurance companies, and other statutorily recognised financial institutions are required to apply the full IFRSs as issued by the IASB.

25 February 2010: Special IASB meetings 3 and 11 March 2010

The IASB and FASB will hold special joint Board meetings at the offices of the IASB in London as follows (agendas and timings to be announced): Wednesday 3 March 2010 Thursday 11 March 2010 The special IASB meeting that had been tentatively announced for Wednesday 2 March 2010 will not be held.

25 February 2010: Audit Committee Brief – SEC focus areas

Deloitte (United States) has published an Audit Committee Brief (PDF 116k) newsletter on SEC Focus Areas. The newsletter notes that audit committee members should be aware of the following recent topics and trends in SEC comment letters and public remarks by SEC staff members: Management discussion and analysis (MD&A) Goodwill impairment testing Deferred tax valuation allowances and the repatriation of foreign earnings Fair value Debt Other-than-temporary impairments (OTTI) of investment securities Pensions Executive compensation

25 February 2010: SEC statement on IFRSs in the United States

The US Securities and Exchange Commission met on 24 February 2010 to discuss issues relating to the use of IFRSs by public companies in the United States. The Commission approved a 71-page Commission Statement (PDF 349k) that provides an overview of the Commission's IFRS activities, summarises some of the public feedback on the proposed IFRS roadmap, and outlines an approach going forward. The Commission reiterated its support for a single set of high quality global accounting standards and said that IFRSs are the set of standards best positioned to be global standards. The Commission Statement directs the SEC staff to carry out a Work Plan prior to an SEC decision on whether to require US issuers to transition to IFRSs. According to the Commission Statement, that decision will be made in 2011. The execution of the Work Plan, combined with the completion of the convergence efforts, would position the Commission to make an informed decision on a mandate. The Commission Statement withdraws the early use option that was in the proposed roadmap. However, it was indicated that early use is still a viable option if the SEC decides to require the use of IFRSs. The Commission Statement does not provide any details of potential transition dates or approaches, but the SEC staff stated that 2015 or 2016 seemed reasonable based on comments received on the proposed roadmap (a transition would require four to five years). The key areas of concern to be addressed by the SEC staff as part of the work plan include: Sufficient development and application of IFRSs globally – comprehensiveness of IFRSs, auditability and enforceability of IFRSs, and comparability across jurisdictions Independence of standard-setting – oversight of the IASCF, composition of Trustees and IASB, funding, and the standard-setting process Transition issues: Investor understanding and education – education of investors Impact on regulatory environment – industry regulation, federal and state taxes, and audit regulation Impact on issuers – accounting systems, controls and procedures, contractual arrangements, and corporate governance Human capital readiness – education and training of various constituency groups In her Opening Remarks (PDF 30k) at the Commission meeting, SEC Chairman Mary L Schapiro summarised the SEC's approach as follows: Today's Commission statement reaffirms our support for a single globally accepted standard, describes the issues that need to be further examined and analyzed, and lays out the events that must occur between now and 2011. Specifically, the convergence projects currently underway between the FASB and the International Accounting Standards Board, must first be successfully completed. And our staff must gather information to aid the Commission as it evaluates the impact that the use of IFRS by US companies would have on our securities market. To this end, we have asked the staff to develop and execute a work plan, which the staff will discuss in more depth in a moment. In 2011, upon conclusion of the fact-gathering and analysis set forth in the work plan – and assuming completion of the convergence projects – the Commission will then be in a position to determine whether to incorporate IFRS into the financial reporting system for U.S. public companies. Until that time, we will expect staff to provide periodic written public reports to the Commission on the progress of its efforts. The Commission expressed support for the FASB having a continuing role in global standard-setting activities and asked the SEC staff to further explore this possibility as part of its Work Plan. The SEC staff will be providing regular progress reports in open meetings and indicated the first one will be provided no later than October 2010.

24 February 2010: IFRS for SMEs in Mauritius

In December, we reported a proposal in Mauritius to amend the accounting requirements to permit the IFRS for SMEs as an option for small state-owned enterprises. That law (Finance Bill 2009) has now been enacted by Parliament. Therefore, the accounting standards structure in Mauritius is now as follows: Listed companies use full IFRSs. State owned enterprises with revenue over 50 million rupees (about US$1.7 million) use full IFRSs. Some state owned enterprises with a turnover 50 million rupees or less will have the choice between full IFRS and IFRS for SMEs. The remaining state owned enterprises with revenue 50 million rupees or less can choose IFRS for SMEs or the Financial Reporting Framework and Standards issued under section 72 of the Financial Reporting Act. Such standards are being developed by the Financial Reporting Council of Mauritius (a proposal was published in September 2009). Companies in Mauritius that are not state owned enterprises and that have turnover greater than 50 million rupees must use full IFRSs. Companies in Mauritius that are not state owned enterprises and that have turnover 50 million rupees or less are exempted from preparing financial statements but must prepare a schedule of financial information (a summarised balance sheet and profit or loss account without notes). Furthermore, there is currently a consultation on a proposal to extend the option to use the IFRS for SMEs to all non-state-owned companies with turnover greater than 50 million rupees but less than 200 million rupees. This will expand the scope of the IFRS for SMEs to the majority of companies based in Mauritius that are required to prepare financial statements.

24 February 2010: Advisory Panel on impairment will meet

In November 2009, when it issued an Exposure Draft on Impairment of Financial Instruments Measured at Amortised Cost, the IASB announced that because of significant practical challenges in moving to an expected loss model, it will establish an Expert Advisory Panel comprising experts in credit risk management to advise the board. The Advisory Panel was formed and held its first meeting in December 2009. It will hold its second meeting on Thursday 25 February (10:30-18:00h London time) and Friday 26 February (09:00-14:00h London time) 2010 at the IASB's offices in London. The meeting is open to public observation. Click for list of Advisory Panel Members (PDF 18k).

23 February 2010: Updated EFRAG 'endorsement status report'

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 22 February 2010 (PDF 120k). Currently, eight IASB pronouncements await endorsement action. You can always find the endorsement status report Here.

22 February 2010: IOSCO Principles for Periodic Disclosure by Listed Entities

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a report Principles for Periodic Disclosure by Listed Entities. The report includes a set of recommendations for disclosures that could be provided in the periodic reports, particularly annual reports, of entities whose securities are listed or admitted to trading on a regulated market in which retail investors participate. The disclosure principles also cover other issues related to periodic disclosure, such as the timeliness of disclosures, disclosure criteria, and storage of information. The principles are intended to provide a useful framework for securities regulators that are reviewing or revising their regulatory disclosure regime for periodic reports. The IOSCO report identifies the following principles as essential for any periodic disclosure regime: Periodic reports should contain relevant information (the IOSCO report elaborates on this principle in considerable detail) For those periodic reports in which financial statements are included, the persons responsible for the financial statements provided should be clearly identified, and should state that the financial information provided in the report is fairly presented The issuer's internal control over financial reporting should be assessed or reviewed Information should be available to the public on a timely basis Periodic reports should be filed with the relevant regulator The information should be stored to facilitate public access to the information Disclosure criteria (including fair presentation, not misleading, no material omissions, clear and concise language) Equal access to disclosure by all investors at the same time Equivalence of disclosure in all markets in which the entity is listed Click to download: IOSCO Report: Principles for Periodic Disclosure by Listed Entities (PDF 3,180k) IOSCO Press Release (PDF 319k)

22 February 2010: US SEC to discuss IFRSs on Wednesday

On Wednesday, 24 February 2010, the US Securities and Exchange Commission will consider, at a public meeting, "whether to publish a statement regarding its continued support for a single-set of high-quality globally accepted accounting standards and its ongoing consideration of incorporating International Financial Reporting Standards into the financial reporting system for US issuers". This statement is not expected to include a decision on adoption of IFRSs in the United States. Click for SEC Meeting Notice (PDF 28k).

22 February 2010: PCAOB issues Q&A on engagement quality review

The US Public Company Accounting Oversight Board has published Staff Question and Answer on Auditing Standard No 7 Engagement Quality Review (PDF 90k). AS 7 provides a framework for the engagement quality reviewer to objectively evaluate the significant judgments made and related conclusions reached by the engagement team in forming an overall conclusion about the engagement. Click here for Information About AS 7 on IAS Plus.

22 February 2010: Deloitte summary of IPSASs

Deloitte has published a booklet summarising the provisions of all International Public Sector Accounting Standards (IPSAS) issued by IFAC's International Public Sector Accounting Standards Board (IPSASB) as of 1 February 2010, namely IPSASs 1 to 31. The booklet also summarises a draft of IPSAS 32 not yet approved by the IPSASB. Those summaries are intended as general information and are not a substitute for reading the entire Standard. Click to download Deloitte's IPSAS Summary Booklet (PDF 414k).

22 February 2010: Working draft of the Liabilities IFRS is available

The IASB staff has released a Working Draft of the Liabilities IFRS (planned successor to IAS 37 Provisions, Contingent Liabilities and Contingent Assets). The working draft is based on proposals published for comment in 2005, amended for decisions the IASB has taken in the light of comments it received. In particular, the Board has decided to provide more guidance on applying the proposed measurement requirements. On 5 January 2010 it published for public comment a Re-exposure Draft of the proposed new guidance. Comments are requested by 12 April 2010. The Working Draft of the final IFRS is on the IASB's public website Project Page.

22 February 2010: IPSASB proposes service concession accounting by grantors

The International Public Sector Accounting Standards Board (IPSASB) is seeking comments on a proposed standard on accounting for service concession arrangements by the grantor. Service concession arrangements – often called Private-Public Partnerships or PPPs – involve an operator providing services to the public on behalf of a grantor, which is usually the government or another public sector entity. For many countries, such arrangements are a means to ensure large-scale infrastructure projects, such as the building of roads and airports, can be developed and provided to the public for use. However, in some cases, they are not recognized in the financial statements, effectively concealing the financial position of the grantor. IPSASB has proposed guidance on how grantors should recognise, account for, and disclose assets in service concession arrangements. Currently, there is no international standard to address the accounting for such arrangements from the grantor's perspective. IFRIC 12 Service Concession Arrangements applies only to the operators of these arrangements. Click for IPSASB Press Release (PDF 35k).

21 February 2010: Agenda project pages updated

We have updated the following IASB agenda project pages on IAS Plus to reflect the discussions and decisions at the IASB's February 2010 Board meeting and joint meeting with FASB: Consolidation Derecognition Fair Value Measurement Financial Instruments: Hedge Accounting Financial Instruments: Classification and Measurement Financial Instruments with the Characteristics of Equity Financial Statement Presentation Insurance Contracts Joint Ventures Leases Post-employment Benefits Rate Regulation Revenue Recognition

21 February 2010: Nominations invited for IFRIC membership

The IASC Foundation has invited applications for candidates to fill up to four vacancies on the International Financial Reporting Interpretations Committee (IFRIC) for terms that will expire on 30 June 2013. IFRIC is the interpretative body of the IASB. Members are expected to attend about six two-day meetings each year held in London. Membership is unpaid, but the IASC Foundation meets members' expenses of travel on IFRIC business. Click for More Information on IASB's website.

21 February 2010: Comments invited on proposed 2010 IFRS XBRL taxonomy

The IASC Foundation invited comment on the proposed IFRS XBRL taxonomy for 2010. The proposed taxonomy is consistent with both full IFRSs and the IFRS for Small and Medium-sized Entities. A separate taxonomy for the IFRS for SMEs will not be issued. The IFRS Taxonomy 2010 is a translation of IFRSs as issued at 1 January 2010 into XBRL (eXtensible Business Reporting Language). Comments on the proposed IFRS Taxonomy 2010 are invited by 22 April 2010. The proposed taxonomy and related material can be accessed Here. The final version is expected to be released at the end of April 2010.

20 February 2010: Notes from Feb 2010 IASB meeting day 5

The IASB held its February 2010 monthly Board meeting at its offices in London on Monday to Friday, 15-19 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

19 February 2010: Hyperinflationary economies

Both IFRSs and US GAAP require that the financial statements of an entity that reports in the currency of a hyperinflationary economy should be stated in terms of the measuring unit current at the balance sheet date. In other words, the amounts in those financial statements must be restated for changes in the general purchasing power of the reporting currency. For a number of years, the International Practices Task Force of the American Institute of CPAs has published unofficial guidance on the inflation status of countries that appear to be at or near the hyperinflation level. The AICPA (through its Center for Audit Quality) has just released CAQ Alert #2010-11 Monitoring Inflation Status of Certain Countries The Alert states the following view of the Task Force: The following countries should continue to be considered highly inflationary as of 30 September 2009: Myanmar Zimbabwe The following country should be considered highly inflationary for periods beginning on or after 1 December 2009: Venezuela The following countries are on the Task Force's inflation 'watch list': Democratic Republic of Congo Ethiopia Guinea Iran Iraq Sao Tome and Principe Seychelles Click to Download CAQ Alert #2010-11 (PDF 65k), which is copyright by Center for Audit Quality and posted on IAS Plus with their kind permission.

19 February 2010: Board and audit committee consideration of IFRSs

IFRSs continue to be an area of focus among US financial leaders in 2010. The movement toward IFRSs not only has challenged US regulators to revisit current public reporting requirements and the needs of investors, but has also raised important questions for US company leaders about how to navigate changes associated with the global accounting standards. To help boards and audit committees stay current on this important and evolving topic, Deloitte (United States) has published IFRS: What Should Boards and Audit Committees be Considering Now? It addresses key questions and includes some practical guidance and updates. Sections include: Foreword by Jim Quigley, Chief Executive Officer, Deloitte Touche Tohmatsu Where are we now? What are US companies doing today? What should boards and audit committees be considering? A practical 'Issues Guide' outlining some potential accounting differences between IFRS and US GAAP, as well as presenting questions the board and audit committee can raise with management Click to download IFRS: What Should Boards and Audit Committees be Considering Now? (PDF 623k). Many other Deloitte IFRS publications are Here.

19 February 2010: FEI recommendations on IASB-FASB convergence

The Committee on Corporate Reporting (CCR) of Financial Executives International (FEI) has sent two letters to both the Financial Accounting Standards Board and the International Accounting Standards Board with recommendations on the boards' projects to converge their standards. One of the Letters (PDF 114k) addresses the effective dates and transition methodology in the major convergence standards. CCR states that the current proposed dates present challenges to realising a high quality implementation. They recommend that the Boards deliberate the effective dates and transition of the major convergence standards as a package, rather than on a standard-by-standard basis, because those standards are interdependent and will have a significant impact on companies. CCR cites Financial Statement Presentation, Leases, Pensions, and reporting cash flow from operations by the direct method as having the greatest impact on accounting information systems. CCR recommends: Adopt a common effective date for the final converged standards that provides a three-year implementation period, allowing for early adoption. Permit preparers as much flexibility as possible in choosing the manner of initial adoption (retroactive restatement, cumulative effect, or prospective). In the Other Letter (PDF 85k), CCR offers to assist the IASB and FASB with the ongoing MoU projects. CCR notes that these projects pose a 'multitude of potential challenges' including the reliability of information requested, the collection of such data in a global organisation, implementation and costs of systems changes in the disparate systems environment that exists in most companies. CCR proposes that FEI member companies provide corporate representatives to work as part of smaller resource groups with FASB and IASB project managers as convergence projects continue to evolve. Click for FEI Press Release (PDF 14k)

19 February 2010: Notes from Feb 2010 IASB meeting day 4

The IASB is holding its February 2010 monthly Board meeting at its offices in London on Monday to Friday, 15-19 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. The IASB held its own meeting during the morning, followed by a joint meeting with the FASB in the afternoon.

18 February 2010: IVSC guidance on valuing investment property

The International Valuation Standards Council (IVSC) has released a new Guidance Note (GN 17) The Valuation of Investment Property under Construction. The need for guidance when estimating the market value of investment property under construction was highlighted when the IASB amended IAS 40 Investment Property to require entities to disclose the fair value of investment property under construction. Click here for IVSC Press Release (PDF 23k). Guidance Note 17 itself may be downloaded from IVSC's Website.

18 February 2010: Deloitte paper on 'cap and trade programs'

Deloitte's Climate Change and Sustainability Services team has published a paper on Cap and Trade Programs for Greenhouse Gas. Concern for the potential implications of climate change is leading governments to consider policies and programs designed to reduce greenhouse gas emissions. Cap and trade programs are one option that is considered to be effective in creating a financial incentive for emissions reductions for large emitters in industrial sectors. The purpose of the paper is to present the key characteristics of greenhouse gas emissions cap and trade programs. A knowledge of cap and trade mechanisms is essential to understanding the impact on business, including carbon management, accounting, and tax implications. The IASB's Emissions Trading Schemes Project The IASB has on its agenda a project on Emissions Trading Schemes. The goal of that project, being conducted jointly with the US FASB, is to develop comprehensive guidance on the accounting for emissions trading schemes. The Board has decided tentatively that if an entity receives emission allowances free of charge from the government: The entity should recognise the allowances as assets and measure them initially at fair value. Because the entity incurs an obligation to reduce its emissions below the level represented by those allowances (ie its cap), the entity should recognise a liability that represents its promise to pay allowances throughout the commitment period. The liability exists irrespective of whether the entity has already emitted. Click to download Cap and Trade Programs for Greenhouse Gas (PDF 1,123k).

18 February 2010: Notes from Feb 2010 IASB meeting day 3

The IASB is holding its February 2010 monthly Board meeting at its offices in London on Monday to Friday, 15-19 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Acknowledging that a comprehensive standard on rate-regulated activities may be delayed, the IASB agreed to amend IFRS 1 quickly so that a first-time adopter with rate-regulated operations will be permitted to elect to use the carrying amount of items of property, plant, and equipment held, or previously held, for use in such operations as their deemed cost at the date of transition to IFRSs. This proposal has already been exposed and will be added to the batch of Annual Improvements to IFRSs expected to be finalised in April 2010.

18 February 2010: Bound Volume of IFRSs will be issued next month

The IASB has announced that the Bound Volume of IFRSs for 2010 (the 'Red Book') will be published in March as a two-volume set. This is the traditional Bound Volume that contains the latest versions of IFRSs and the supporting documents (illustrative examples, implementation guidance, bases for conclusions and dissenting opinions) as issued by the IASB at 1 January 2010, including those standards that become mandatory after 1 January 2010. In January, the Board published a version of the Bound Volume (the 'Blue Book') that contains only those pronouncements whose application is mandatory as of 1 January 2010. The main changes in the Red Book are the inclusion of: one new standard: IFRS 9 one revised standard: IAS 24 (the 2003 version of IAS 24 that was superseded has been omitted – the superseded version can still be used for 2009 and 2010) amendments to IFRSs that were issued as separate documents amendments to IFRSs issued in the second annual improvements project amendments to other IFRSs resulting from those revised or amended standards ('consequential amendments') two new Interpretations: IFRICs 18 and 19 Because of the growing size of the contents, the 2010 Red Book is published in two parts: Part A presents the unaccompanied IFRSs and their introductions and explanatory rubrics. Part B contains the accompanying (non-mandatory) documents, such as bases for conclusions, implementation guidance, and illustrative examples. You can Register Your Interest on the IASB's website. You will be notified when the Red Book is available.

18 February 2010: New EU Commissioner comments on accounting

Michel Barnier, who took office last week as the European Commissioner responsible for Internal Market and Services, commented briefly on international accounting standards during a presentation to the Ecofin Council (the council of economic and finance ministers of EU Member states). Mr Barnier's presentation was titled Acting Without Delay to Clean Up Financial Markets. Here is an excerpt: One of the strongest conclusions of the G20 was the shared commitment to reform together and to ensure convergence of accounting standards at an international level. To this end, we need to find the right balance between a faithful representation of a company's financial situation and wider financial stability. This issue will be at the centre of our discussions in the coming months. Click to Download Mr Barnier's Remarks (PDF 28k).

17 February 2010: Notes from February 2010 IASB meeting day 2

The IASB is holding its February 2010 monthly Board meeting at its offices in London on Monday to Friday, 15-19 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

17 February 2010: Francoise Flores named as new EFRAG TEG Chair

The Supervisory Board of the European Financial Reporting Advisory Group (EFRAG) has named Francoise Flores of France as the new chair of the EFRAG Technical Expert Group (TEG) effective 1 April 2010. She will replace Deloitte Denmark Partner Stig Enevoldsen as TEG chair. Ms Flores has been a member of TEG for six years and its vice-chair for two years. Mike Ashley of the UK has been appointed vice-chair of TEG. The Supervisory Board also announced several reappointments and several new appointments to TEG, including Deloitte UK Partner Andy Simmonds. Click for Press Release (PDF 76k). TEG's responsibilities include providing a coordinated European response to IASB discussion documents and proposals and making a recommendation to the European Commission regarding acceptance or rejection of an IASB standard or interpretation for use in the EU. The complete TEG membership as of 1 April 2010 will be: Voting members: Francoise Flores, Industry, France, EFRAG TEG Chair Mike Ashley, Auditor, UK, EFRAG TEG Vice-Chair Alan Dangerfield, Industry, Switzerland Gabi Ebbers, Insurance specialist, Germany Nicklas Grip, Banking and financial instruments specialist, Sweden Araceli Mora, Professor, Spain Nicolas de Paillerets, Industry, France Hans Schoen, former Auditor, The Netherlands Andy Simmonds, Auditor, UK (appointed) Anna Sirocka, Auditor, Poland Andrea Toselli, Auditor, Italy Carsten Zielke, User, Germany Non-voting members: Liesel Knorr – German Accounting Standards Board Jerome Haas – Autorité des Normes Comptables (French standard setter) Ian Mackintosh – UK Accounting Standards Board

17 February 2010: Irish CAs support IFRS for SMEs in place of FRSs

Chartered Accountants Ireland has announced its support for changes in accounting standards proposed by the Accounting Standards Board (ASB) that would see Irish and UK GAAP replaced by a three-tiered approach, whereby companies would apply one of the following: EU-endorsed IFRSs - for 'publicly accountable' entities IFRS for SMEs - for non-publicly accountable entities Financial Reporting Standard for Smaller Entities (FRSSE) – optional for 'small' entities as defined in the Companies Acts The proposal is contained in a Consultation Document issued by the ASB in August 2009. In announcing support for the IFRS for SMEs, Aidan Lambe, Chartered Accountants Ireland Director of Technical Policy, said: "The position whereby we have had differing accounting frameworks in use in Ireland since the adoption of IFRS was ultimately unsustainable in the long run. By producing this standard, the IASB has greatly facilitated the ASB in attempting to resolve this issue." Click for CAI Press Release (PDF 95k).

16 February 2010: Notes from February 2010 IASB meeting day 1

The IASB is holding its February 2010 monthly Board meeting at its offices in London on Monday to Friday, 15-19 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

15 February 2010: IASCF Trustees complete Constitution Review Part 2

The Trustees of the IASC Foundation, the oversight body of the IASB, have completed part two of the 2008-2010 Constitution Review – announcing a number of changes aimed at enhancing public accountability, stakeholder engagement, and operational effectiveness. The changes include: Introduction of three-yearly public consultations on the IASB's technical agenda: In addition to consulting the Trustees and its advisory council annually on the existing and future agenda, the IASB will undertake a three-yearly public consultation on its future technical agenda. Emphasis on adoption of IFRSs: The Constitution will emphasise that convergence is a strategy aimed at promoting and facilitating the adoption of IFRSs, but is not an objective by itself. A commitment to a 'principle-based' approach: The Constitution will call for IFRSs 'based upon clearly articulated principles'. Specific designation of investors: The new Constitution specifically identifies investors as a target audience for financial information (in addition to other participants in the world's capital markets and other users of financial information). A requirement for due process and the introduction of an emergency procedure: The Constitution will include a provision for an accelerated due process only in the most exceptional circumstances and only after approval by at least 75 per cent of the Trustees. Creation of vice chairs for both the Trustees and the IASB: The new Constitution will establish the possibility of two vice chairs for both the Trustees and the IASB. This will both ease the burden on the chair, and give the option of wider geographical distribution in the leadership. Improved language to account for a broad range of stakeholders, both by type and location: The Constitution will note the need to 'take account of, as appropriate, the needs of a range of sizes and types of entities in diverse economic settings'. Reduction in duration of possible second term of IASB members to ensure practical experience: While the Constitution will still permit the possibility of a second term for IASB members, the Trustees have reduced the second term from five years to three for IASB members not serving as the chair or a vice chair. Names in use across the organisation to be streamlined: The names in use across the organisation will be more closely aligned with the standards. The IASC Foundation will become the IFRS Foundation, as soon as the practical arrangements can be made. The interpretations committee and advisory council will be known as the IFRS Interpretations Committee and IFRS Advisory Council, respectively. Stakeholders supported retaining the name of the IASB, and the Trustees concurred. The changes take effect 1 March 2010. Click for IASCF Press Release (PDF 109k).

13 February 2010: Japan moves toward full IFRS adoption

In our News Story of 10 February we reported on a conference on international developments in accounting and auditing that was hosted by the European Commission in Brussels on 8 February 2010. One of the presenters at that conference was made by Mr Masamichi Kono, Deputy Director General of the Supervisory Bureau of the Financial Services Agency of Japan. He explained the Japanese step-by-step roadmap toward the full adoption of IFRSs for listed companies by 2015 or 2016, including the voluntary early adoption that has already started from 1 April 2009. Click to Download Mr Kono's Presentation (PDF 145k).

13 February 2010: We disagree with three IFRIC draft agenda decisions

In letters to the International Financial Reporting Interpretations Committee, Deloitte Touche Tohmatsu has disagreed with the IFRIC's tentative decisions, in January 2010, not to take onto the IFRIC's agenda three requests for an interpretation, as follows: IAS 21 – Determination of functional currency of an investment company holding (PDF 30k) IAS 32 – Shareholder discretion (PDF 28k) IAS 39 – Unit of account for forward contracts with volumetric optionality (PDF 29k) We do agree with IFRIC's tentative not to add to its agenda IAS 36 – Interaction with transition requirements of IFRS 8 (PDF 27k)

12 February 2010: Hong Kong FRS presentation/disclosure checklist

Deloitte's Asia-Pacific IFRS Centre of Excellence in Hong Kong has published the HKFRS Presentation and Disclosure Checklist for 2009 (PDF 2,393k). This checklist is intended to aid entities reporting under Hong Kong Financial Reporting Standards (HKFRSs) in determining whether or not they comply with the presentation and disclosure requirements of HKFRSs and the applicable Hong Kong Companies Ordinance. The checklist also includes disclosures required by The Stock Exchange of Hong Kong in relation to the preparation of an annual report by a listed entity. This checklist complements HKFRS Illustrative Annual Financial Statements for 2009 (PDF 1,214k) issued in January 2010. This checklist covers the presentation and disclosure requirements effective for the year ended 31 December 2009. It also covers the presentation and disclosure requirements of certain Standards and Interpretations in issue at 15 November 2009 that are not effective for periods beginning on 1 January 2009. Earlier application of those Standards and Interpretations that are not yet mandatorily effective is generally permitted. This checklist does not address the requirements of HKFRSs in relation to the recognition and measurement.

12 February 2010: Deloitte IFRS newsletter in Spanish

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín de Actualización IAS Plus – Exención limitada de las revelaciones comparativas del IFRS 7 para quienes adoptan por primera vez (PDF 18k) Spanish version of IAS Plus Update February 2010 – Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (PDF 75k) You will find our resources in Spanish Here.

11 February 2010: Notes from Special 10 Feb 2010 meeting

The IASB and FASB held a special joint meeting on 10 February 2010 at the IASB's offices in London. Presented below are the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

11 February 2010: IFRS insurance accounting newsletter

Deloitte (United Kingdom) has published the February 2010 issue of Insurance Accounting Newsletter. This issue is titled Road to Convergence and focuses on the discussions held in the three hour long joint IASB-FASB meeting of 19 January and the subsequent FASB meeting on 27 January. The long awaited exposure draft is finally taking shape and although a few issues remain unresolved, the road to convergence for insurance accounting is in sight. The expected publication date of the Exposure Draft is May 2010 with a comment period until September 2010. Click to download Issue 11 of the Insurance Accounting Newsletter (PDF 105k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.

11 February 2010: Reducing Financial Reporting Risk

Deloitte United States has published Reducing Financial Reporting Risk: It's More than Fixing Financial Controls. This 'white paper' distills the evaluation of financial reporting risk into three major components: People and organisational considerations Process and policy considerations Systems and information considerations By posing probing questions to those with oversight of these areas, a CFO can develop a clearer view of the organization's current state of financial reporting risks and can champion improvements designed to reduce reporting risk as well as improve the effectiveness of the process. Click to download Reducing Financial Reporting Risk: It's More than Fixing Financial Controls (PDF 1,292k).

10 February 2010: IFRS presentation and disclosure checklist in German

We have posted the IFRS Checkliste zu Ausweis- und Angabevorschriften 2009 (PDF 1,683k, 180 pages), published by Deloitte & Touche GmbH (Germany). It is the German translation of the 2009 IFRS Presentation and Disclosure Checklist. There are permanent links on our Model Financial Statements Page and on our Germany Page, where you will also find IFRS model financial statements in German.

10 February 2010: Azerbaijan extends use of IFRSs

The President of Azerbaijan has signed into law the 'non-bank credit organisations' act, which requires, among other things, that such organisations must prepare financial statements using International Financial Reporting Standards and implement corporate governance standards. Azerbaijani banks and major state-owned enterprises were already required to report under IFRSs.

10 February 2010: European Commission conference on accounting and auditing

On 8 February 2010, the European Commission hosted a one-day conference on international developments in accounting and auditing. The morning session focused on accounting issues, and the afternoon on auditing. In the morning session, the first panel discussed national experiences in implementing IFRSs. The second panel discussed the progress made towards the adoption of IFRSs. Click for: Conference Programme (PDF 245k) Presentations and Other Information on the EC website.

10 February 2010: Michel Barnier approved as EU Internal Market Commissioner

The European Parliament has voted to approve the new European Commission – one Commissioner from each of the 27 EU Member States. The new Commissioners take office on 10 February 2010 for terms that end 31 October 2014. By that vote, Michel Barnier of France was approved as Commissioner for Internal Market and Services. Among other things, his responsibilities will cover accounting and auditing matters, including liaison with the International Accounting Standards Board and the IASC Foundation. Mr Barnier replaces Charlie McCreevy. Click for Mr Barnier's CV (PDF 76k).

9 February 2010: Trinidad and Tobago adopts the IFRS for SMEs

The Institute of Chartered Accountants of Trinidad and Tobago (ICATT) has adopted the IFRS for Small and Medium-sized Entities, as issued by the IASB, for use in Trinidad and Tobago for financial statements effective immediately, which includes 2009 and prior periods. ICATT's announcement said that "the adoption of this Standard impacts the majority of the entities in Trinidad and Tobago and would simplify the level of accounting and auditing requirements for qualifying entities choosing to implement the Standard." Prior to adoption of the IFRS for SMEs, SMEs in Trinidad and Tobago used full IFRSs. Now, SMEs may choose either the IFRS for SMEs or full IFRSs. Click for Adoption Notice (PDF 336k).

9 February 2010: Agenda for February 2010 IASB meeting

The IASB will hold its February 2010 regular monthly meeting at its offices in London on Monday to Friday 15-19 February 2010. The portion of the meeting on 16 February and afternoons of 17 and 18 February are joint meetings with FASB. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the week. The Standards Advisory Council will meet on 22-23 February. We previously posted the Agenda for the SAC Meeting. IASB Board Meeting Agenda 15-19 February 2010, London Monday 15 February 2010 IASB Meeting (15:00-17:00pm GMT) Derecognition of Financial Instruments Tuesday 16 February 2010 IASB-FASB Joint Meeting (12:00-19:30pm GMT) Education Session: Right of Offset [Education Session] Revenue Recognition Financial Statement Presentation Fair Value Measurement Wednesday 17 February 2010 IASB Meeting (10:00-11:30am GMT) Consolidation Rate-regulated Activities IASB-FASB Joint Meeting (12:00-19:30pm GMT) Replacement of IAS 39: Hedge Accounting Replacement of IAS 39: Classification and Measurement – Financial Liabilities Leases Consolidation Thursday 18 February 2010 IASB Meeting (09:45-11:15am GMT) Post-employment Benefits IASB-FASB Joint Meeting (12:00-19:00pm GMT) Leases Financial Instruments with the Characteristics of Equity Insurance Contracts Friday 19 February 2010 IASB Meeting (11:30am-12:30pm GMT) Joint Ventures

9 February 2010: Deloitte IFRS newsletter in Chinese

Deloitte China has published the Chinese translation of the following IAS Plus Update newsletter: Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (PDF 127k) Here is the English Version (PDF 75k)

8 February 2010: Roadmap for transition to IFRS-converged Indian standards

The Ministry of Corporate Affairs of India has adopted a plan for phased transition to 'notified Indian standards that have been converged with IFRS' (notified standards) by listed and large Indian companies, other than banks and insurance companies. Click for Ministry of Corporate Affairs Press Release (PDF 33k). Here is an overview: Phase Date Which Companies? Phase 1 Opening balance sheet as at 1 April 2011* Companies that are part of NSE Index - Nifty 50 Companies that are part of BSE Sensex - BSE 30 Companies whose shares or other securities are listed on a stock exchange outside India Companies, whether listed or not, having net worth** of more than Rs 1,000 crore (1 crore = 10 million. Rs 1,000 crore = US$ 212,000,000) Phase 2 Opening balance sheet as at 1 April 2013* Companies not covered in phase 1 and having net worth** exceeding Rs 500 crore Phase 3 Opening balance sheet as at 1 April 2014* Listed companies not covered in the earlier phases (ie net worth** Rs 500 crore or less) * If the financial year of a company commences at a date other than 1 April, then it shall prepare its opening balance sheet at the commencement of immediately following financial year. ** Balance sheet net worth under Indian GAAP, not market capitalisation IFRS 1 requires at least one year of comparative IFRS financial statements when IFRSs are first adopted. It is unclear from the reference to 'opening balance sheet' in the Ministry's release whether, for instance, Phase 1 companies will be exempted from preparing comparative financial statements for year ended 31 March 2011 using the notified standards. Companies in the following categories will not be required to follow the notified standards (though they may voluntarily opt to do so) but need to follow only the 'notified accounting standards that are not converged with the IFRS': Non-listed companies with a net worth of Rs 500 crores or less and whose shares or other securities are not listed on Stock Exchanges outside India Small and Medium Companies ('SMCs'). A separate roadmap for banking and insurance companies is expected to be published by the end of February, 2010.

8 February 2010: Guyana adopts the IFRS for SMEs

The Institute of Chartered Accountants of Guyana has adopted the IFRS for Small and Medium-sized Entities, as issued by the IASB, for use in Guyana for financial statements for periods ending on or after 31 December 2009. SMEs may choose either the IFRS for SMEs or full IFRSs. Click for Adoption Notice (PDF 462k).

7 February 2010: Shortcomings in IFRS transition disclosures in Canada

Canada's Ontario Securities Commission has published the results of its study of disclosures that have been made by 106 securities issuers in anticipation of their changeover from Canadian GAAP to IFRSs as of 1 January 2011. The review suggests that issuers could do a better job in disclosing their progress toward the transition, and its potential effects, than was done in the 'Management Discussion and Analysis' sections of their 2008 annual and 2009 interim financial reports. In 2008 MD&A, we expected issuers to have discussed the status of the key elements and timing of their IFRS changeover plan.... Overall, we found that issuers are not adequately disclosing information related to their IFRS transition efforts. A summary of our findings is as follows: 40% of issuers received a letter from staff questioning whether a changeover plan was in place as it was not evident from reading their MD&A disclosure. Given the short time remaining before the changeover date this raises concerns that issuers may not be able to comply with future filing obligations. Of the 60% of issuers that discussed an IFRS changeover plan in their 2008 annual MD&A, approximately half simply provided a generic description of the plan without any direct application to their own circumstances. The most valuable information for investors is IFRS transition disclosure that is specific to the issuer. 80% of issuers that discussed an IFRS changeover plan failed to describe significant milestones and anticipated timelines associated with each of the key elements of the plan. It is important that issuers discuss the timing associated with key elements so that investors can readily assess whether the project is progressing in accordance with the changeover plan. 48% of issuers that discussed IFRS transition in 2008 annual MD&A failed to provide quarterly updates in 2009 interim MD&A on the progress related to their changeover plan. Investors need progress updates to assist them in assessing the likelihood that the issuer will be able to complete its IFRS conversion on time. Click to download the study IFRS Transition Disclosure Review (Staff Notice 52-718) (PDF 442k).

6 February 2010: Agenda for JIG-FIAG meeting

The IASB/FASB Joint International Group (JIG) on Financial Statement Presentation and the Financial Institutions Advisory Group (FIAG) will meet on Friday 12 February 2010 from 8:00am to 3:00pm EST (New York time) at the offices of the Financial Accounting Standards Board in Norwalk, CT USA. The JIG consists of senior professionals with extensive experience in and responsibility for the preparation, analysis, audit, and regulation of financial statements. The FIAG advises on presentation issues from the perspective of those who analyse and prepare financial institution financial statements. Presented below is the agenda for the meeting. Agenda for the Joint JIG-FIAG Meeting 12 February 2010, Norwalk, CT USA Welcome, Introductions Classification, Cohesiveness, Definitions Disaggregation principle (nature, function, Statement of Financial Position) Direct method: Statement of Cash Flows Analysis of changes in Statement of Financial Position line items Remeasurements Transitional provisions Package of decisions and illustration Post Exposure Draft: outreach, field test, next steps Agenda papers are available Here.

6 February 2010: Heads Up on climate change disclosures

Deloitte United States has published an issue of the Heads Up newsletter SEC Issues Interpretive Guidance on Disclosures Related to Climate Change (PDF 11k) discussing the SEC's recent interpretive release outlining its views on applying existing disclosure rules to climate-change matters. In addition to summarising the disclosure rules and regulations, the release discusses considerations for registrants that are determining whether climate change and its related consequences have triggered a disclosure requirement. Here are: IAS Plus News Item on the SEC guidance SEC's Interpretive Release on Climate Change Disclosures (PDF 139k)

5 February 2010: Updated EFRAG 'endorsement status report'

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 4 February 2010 (PDF 119k). Eight IASB pronouncements await EC endorsement. You can always find the endorsement status report Here.

5 February 2010: IFRS Insights newsletter

We have posted the IFRS Insights Newsletter for January-February 2010 (PDF 415k) from Deloitte & Touche LLP (United States). IFRS Insights provides news on the latest developments on IFRSs, practical suggestions for companies addressing IFRSs, updates on the regulatory environment, and references to relevant tools and resources. This issue includes: Updates on SEC activity and FASB/IASB convergence efforts Share-based Payments: Accounting differences between US GAAP and IFRSs Technical Corner: IFRS 9 Financial Instruments IFRS Survey: A look at the numbers We have Permanent Links to all IFRS Insights on our USA country page.

4 February 2010: Two IASB Board Members are appointed

Dr Koenig Mr Scott

The Trustees of the IASC Foundation have appointed two financial executives to the IASB: Elke Koenig – former member of the executive board and chief financial officer (CFO) of Hannover Re Group (Germany). Dr Koenig has served as a senior financial executive in the insurance industry. From 2002 to 2009 she served as CFO of Hannover Re Group, a leading international reinsurance group. Previously she spent twelve years as a member of the senior management of Munich Re, with specific responsibility for the group's accounting and controlling activities. She is currently serving in non-executive capacities as chairperson of Hannover Finanz GmbH and as a member of the supervisory board of Deutsche Hypothekenbank Actiengesellschaft. Dr Koenig has been a member of the CFO Forum of European insurers, where she has been actively engaged in the IASB's project on insurance contracts. Darrel Scott – CFO of the FirstRand Banking Group (South Africa). Mr Scott is CFO of the FirstRand Banking Group, one of the largest financial institutions in South Africa. He has responsibility for both statutory and regulatory financial reporting under the Basel II Accords. He serves on various governance, risk, operations and strategic committees of the Group. Mr Scott is also a member of the IASB's International Financial Reporting Interpretations Committee (IFRIC), a position from which he will resign to become an IASB member, and was formerly a member of the IASC Foundation's Standards Advisory Council (SAC). Dr Koenig and Mr Scott will begin their five-year terms as full-time members of the IASB in July and October 2010 respectively. The appointments fill vacancies that will be created by the retirement of Robert Garnett and Gilbert Gelard on 30 June 2010. A search is ongoing for a replacement for Jim Leisenring, who also retires at the end of June 2010. Click for Press Release (PDF 28k).

4 February 2010: PCAOB progress in international audit firm inspections

The US Public Company Accounting Oversight Board has released information about the status of inspections of registered non-US accounting firms. (As of 20 Jan 2010 there were 926 non-US audit firms registered with the PCAOB.) The PCAOB said it conducted inspections of one or more registered firms in 33 jurisdictions as of December 2009. At the same time, the PCAOB noted that in 2009 it was denied access to information necessary to conduct inspections in China, Finland, France, Germany, Greece, Ireland, the Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom. Discussions are continuing with the relevant authorities in those jurisdictions in an effort to resolve their objections to PCAOB inspections. The PCAOB has announced the 28 jurisdictions in which the PCAOB plans to conduct inspections in 2010, including all of those in which access was denied in 2009. Click for PCAOB Announcement (PDF 40k) with active hyperlinks to additional information.

4 February 2010: Research paper on definition of an asset

The European Financial Reporting Advisory Group (EFRAG) and the Autorité des Normes Comptables (ANC, French accounting standard setter) have jointly published a staff research paper on the proposed new definition of an asset tentatively adopted by the IASB and FASB. The paper – Pro-active Paper on the Definition of an Asset (PDF 336k) – is intended to serve as input to the IASB in its deliberation on the development of the Conceptual Framework Phase B. Current definition of an asset in the IASB Framework: An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Proposed new definition: An asset of an entity is a present economic resource to which the entity has a right or other access that others do not have. The paper tests a dozen arrangements against the two definitions: cash on hand, an account receivable, an assembled workforce, goodwill, a lottery ticket, an offer of future discounts to potential customers, know-how/knowledge acquired as a result of research expenditures, an improved position in the market/new customer relationship resulting from marketing efforts, contracts, a licence to operate in a restricted market, a deferred tax item for an unused tax loss, and a planned transaction. While the first six arrangements were also tested by the IASB/FASB staff, the last six arrangements were solely chosen and analysed by the EFRAG/ANC project staff.

3 February 2010: Upcoming meetings

The IASB has scheduled a large number of meetings over the next two months, including several special joint IASB-FASB Board meetings aimed at progressing agenda projects planned for completion by mid-2011. IAS Plus visitors might find a combined list helpful (below). All are open to public observation. Board and IFRIC meetings are webcast. Details, including agenda, of the meetings may be found (in due course) on the IASB's Website (click on 'meetings diary'). IASB-FASB Special Joint Board Meeting Date: Wednesday 10 February 2010 (Noon to 14:00pm GMT) Location: IASB Boardroom, London Meeting of the IASB/FASB Joint International Group on Financial Statement Presentation and Financial Institutions Advisory Group Date: Friday 12 February 2010 Location: The Financial Accounting Standards Board, Norwalk , CT USA IASB Regular Monthly Board Meeting - February 2010 Date: Monday-Friday 15-19 February 2010 (16-18 February will be joint with FASB) Location: IASB Boardroom, London Standards Advisory Council Meeting Date: Monday-Tuesday 22-23 February 2010 Location: Renaissance Chancery Court Hotel, London Meeting of IASB representatives with the Analyst Representative Group Date: Wednesday 24 February 2010 Location: IASB Boardroom, London Expert Advisory Panel on Impairment of Financial Assets) Date: Thursday-Friday 25-26 February 2010 Location: IASB Board Room, London IASB-FASB Special Joint Board Meeting Date: Tuesday-Wednesday 2-3 March 2010 Location: IASB Boardroom, London International Financial Reporting Interpretations Committee Meeting Date: Thursday-Friday 4-5 March 2010 Location: IASB Boardroom, London IASB-FASB Special Joint Board Meeting Date: Thursday 11 March 2010 Location: IASB Boardroom, London IASB Regular Monthly Board Meeting - March 2010 Date: Monday-Friday 15-19 March 2010 (15-17 March will be joint with FASB) Location: IASB Boardroom, London IASB-FASB Joint Board Meeting Date: Monday-Wednesday 22-24 March 2010 Location: IASB Boardroom, London

3 February 2010: Deloitte's iGAAP 2010–A Guide to IFRS Reporting

Deloitte has published iGAAP 2010–A Guide to IFRS Reporting. This 2,918-page book sets out comprehensive guidance for entities reporting under IFRSs. The Guide: focuses on the practical issues faced by reporting entities; explains clearly the requirements of IFRSs; adds interpretation and commentary where IFRSs are silent, ambiguous or unclear; and provides many illustrative examples. The Guide deals comprehensively with those new Standards that apply for periods beginning in 2009 and also covers those further pronouncements issued by the IASB up to 30 June 2009 that will apply from 2010. This edition of the manual includes new material dealing with: IFRS 6 Exploration for and Evaluation of Mineral Resources; the revised version of IFRS 1 First-time Adoption of International Financial Reporting Standards (November 2008); the amendment to IFRS 2 Group Cash-settled Share-based Payment Transactions (June 2009); the amendment to IFRS 7 Improving Disclosures about Financial Instruments (March 2009); the amendment to IAS 39 Eligible Hedged Items (July 2008); the amendments to IAS 39 and IFRS 7 Reclassification of Financial Assets (October 2008); the amendments to IFRIC 9 and IAS 39 Embedded Derivatives (March 2009); Improvements to IFRSs issued in April 2009; IFRIC 17 Distributions of Non-cash Assets to Owners; IFRIC 18 Transfers of Assets from Customers; and additional examples and guidance on issues arising in practice. Orders may be placed via www.lexisnexis.co.uk/deloitte or call +44 (0) 845 370 1234. Click for Descriptive Booklet about This and Related iGAAP Publications for 2010 (PDF 248k).

3 February 2010: Notes from Special 2 Feb 2010 IASB meeting

The IASB and FASB held a special Joint Board meeting at the IASB's offices in London on Tuesday 2 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

3 February 2010: Accounting Roundup – January 2010

We have posted the January 2010 Edition of Accounting Roundup (PDF 283k) published by Deloitte & Touche LLP (United States). The newsletter is now organised by topic rather than by standard-setter. Topics covered in this issue include: Business Combinations FASB Issues ASU on Not-for-Profit Mergers and Acquisitions Consolidation FASB Votes to Finalize Deferral of Statement 167 for Certain Investment Funds FASB Clarifies Scope of Decrease-in-Ownership Provisions in ASC 810-10 FASB Issues ASU on Variable Interest Entities Contingencies IASB Reexposes Proposals for the Measurement of Liabilities in IAS 37 Earnings per Share FASB Issues Guidance on Accounting for Distributions to Shareholders With Components of Stock and Cash Fair Value Measurements and Disclosures FASB Issues ASU on Improving Disclosures About Fair Value Measurements AICPA Publishes Draft Issues Paper on Fair Value Measurements and Disclosures About Certain Issues Pertaining to Not-for-Profit Entities Financial Instruments FASB Deliberates Approach to Accounting for Credit Impairment and Interest Income Income Taxes French Business Tax Law Change Stock Compensation FASB Issues ASU on Escrowed Share Arrangements and the Presumption of Compensation Transfers and Servicing FASB Issues ASU on Accounting for Transfers of Financial Assets Industry Accounting FASB Updates Oil and Gas Reserve Estimation and Disclosure Requirements Other Accounting Financial Reporting Considerations Related to Venezuela's Currency Exchange Controls and Highly Inflationary Status FASB Proposes Amendments to Subsequent-Events Disclosure Requirements FASB Publishes Revised Notice to Constituents About the Codification FASB Issues Technical Corrections to SEC Content AICPA Issues Technical Practice Aids SEC Matters SEC Approves Interpretive Guidance on 'Climate-Change' Disclosures SEC Approves PCAOB Auditing Standard 7 SEC Issues Compliance and Disclosure Interpretations on Non-GAAP Measures SEC Issues Final Say-on-Pay Rules for TARP Companies SEC Issues Compliance and Disclosure Interpretations on Proxy Disclosure Enhancements Other Auditing PCAOB Issues Staff Guidance ASB Proposes Various Statements on Auditing Standards AICPA Issues Guidance on Compilation and Review Engagements AICPA's GAQC Issues Statement on Compliance Audits GASB Matters GASB Issues Final Statement on OPEB Measurements GASB Issues Final Statement on Chapter 9 Bankruptcies Other International FCAG Issues Letter to G-20 on IASB and FASB Progress IASB Issues Limited Exemption Amendment to IFRS 1 You will find past issues of Accounting Roundup Here.

2 February 2010: Newsletter on amendment to IFRS 1

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (PDF 75k). On 28 January 2010, the IASB amended IFRS 1 First-time Adoption of International Financial Reporting Standards to exempt first-time adopters of IFRSs from providing the additional disclosures introduced in March 2009 by Improving Disclosures about Financial Instruments (Amendments to IFRS 7). The amendment gives first-time adopters the same transition provisions that Amendments to IFRS 7 provides to current IFRS preparers. The amendment is effective on 1 July 2010, with earlier application permitted. This newsletter explains the amendment. Past issues of all of our IAS Plus newsletters are Here.

1 February 2010: Agenda for February 2010 SAC meeting

The Standards Advisory Council will meet with the IASB on Monday and Tuesday 22-23 February 2010 at the Renaissance Chancery Court Hotel, 252 High Holborn, London. A draft agenda has been posted on the IASB's website and is summarised below. The SAC provides a forum for the IASB to consult a wide range of interested parties affected by the IASB's work, with the objective of: advising the Board on agenda decisions and priorities in the Board's work, informing the Board of the views of the organisations and individuals on the Council on major standard-setting projects, and giving other advice to the Board or to the Trustees. Standards Advisory Council Meeting Agenda 22-23 February 2010, London Monday 22 February 2010 (10:00am-17:30pm) Welcome and Chairman's preview Overview of last four months IASB Activities Report of the Chair and Vice-Chairs Update on major projects that are the most challenging in terms of meeting the June 2011 deadline Other activities NSS update – Overview of the role that the National Standard Setters (NSS) plays, including major projects underway or proposed EFRAG update – Overview of the role that the EFRAG plays, including major projects underway or proposed SEC update – Update on recent developments at the SEC and the roadmap for IFRS adoption in the US SAC Member activities XBRL and its interaction with disclosure requirements The IASB work plan post June 2011 Break-out Sessions (The IASB work plan post June 2011) Tuesday 23 February 2010 (9:15am to 12:30pm) The IASB work plan post June 2011 – Report back from the break-out sessions Effects analysis – What is effects analysis?

1 February 2010: Updated summary of IFRIC agenda rejections

We have updated our Summary of Issues Not Added to IFRIC's Agenda to reflect the IFRIC's final decisions at its January 2010 meeting not to add the following topics to its agenda. Our summary now includes over 175 issues: IFRS 2 Share-based Payment – Transactions in which the manner of settlement is contingent on future events IFRS 4 Insurance Contracts and IAS 32 Financial Instruments: Presentation – Scope issue for REITs IAS 18 Revenue – Receipt of a dividend of equity instruments IAS 27 Consolidated and Separate Financial Statements – Combined financial statements and redefining the reporting entity IAS 27 Consolidated and Separate Financial Statements – Presentation of comparatives when applying the 'pooling of interests' method IAS 32 Financial Instruments: Presentation – Application of the 'fixed for fixed' condition IAS 38 Intangible Assets – Amortisation method