31 March 2010: Consolidation of variable interest entities

Deloitte (United States) has published A Roadmap to Applying the Variable Interest Entities Consolidation Model (PDF 1,241k). This publication includes all of Deloitte's interpretive guidance on the variable interest entities consolidation model, as amended by FASB Statement 167 (codified by ASU 2009-17). It includes an appendix that identifies the key differences between US GAAP (primarily ASC 810) and IFRSs (primarily IAS 27 and SIC-12) in the determination of when and how to prepare consolidated financial statements.

31 March 2010: IFRS webcasts in Dutch

Deloitte's Rotterdam IFRS Centre of Excellence has published two new webcasts (in Dutch) adressing recent IFRS developments with respect to the financial services industry (including IFRS 9 Financial Instruments) and key IFRS developments from January through March 2010. The webcasts can be viewed online by clicking on the hyperlink mentioned below. Both webcasts are also available in podcast (mp3) format. Click here to access the Deloitte Rotterdam IFRS Centre of Excellence Webcasts.

31 March 2010: Notes from IFRS Foundation Trustees meeting

The Trustees of the IFRS Foundation (formerly IASC Foundation) are meeting in London on 30-31 March 2010. The meeting on 30 March is open to public observation. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the 30 March session. The Trustees will hold a public meeting with the Monitoring Board on 1 April. Meeting of the Trustees of the IFRS Foundation, 30 March 2010, London Review of status of IASB-FASB convergence efforts For the key messages on this topic, please refer the Notes of the Sub-committee Meeting held on 29 March. However, there were a number of interesting points that had not been made at that meeting. IASB Chairman Sir David Tweedie acknowledged that financial instruments is the MoU project on which the IASB was 'most likely' not to converge with the FASB. However, a US Trustee noted that it was far from clear that the FASB's 'full fair value on the balance sheet' approach would be accepted. He noted that, for debt instruments in particular, the amortised cost approach was seen as the better, more useful measure – especially for many small and medium-sized financial institutions. Another US Trustee noted that it was important that the FASB issue their comprehensive ED so that an informed debate could begin. Trustees asked where the IASB was in relation to the milestones contained in the MoU. The IASB Chairman said that he was confident that the seven necessary exposure drafts would be issued by the end of June 2010 as required. The Board and the staff were determined that the milestones would be met, and the Board will hold additional meetings as necessary to achieve that goal. Other IASB technical projects The IASB Chairman reviewed progress on other IASB technical projects. His only concern was that the IASB might have to expose their proposals on Insurance Contracts as an IASB-only ED, if the FASB (which is playing 'catch-up' to the IASB on this project) was unable to complete its deliberations in time. This approach was preferable to losing several years' worth of effort at the IASB. The IFRS Foundation Chairman invited Paul Cherry, Chairman of the IFRS Advisory Council, to review with Sir David the preparatory work being done on assessing potential topics and priorities for the post-June 2011 agenda. Mr Cherry noted that the Advisory Council would not only be looking at topics for the IASB's attention, but would also identify issues related to governance and oversight that should be addressed to the Trustees. Sir David noted that the IASB expects to initiate the public consultation on the post-June 2011 IASB agenda and priorities in December 2010. Due Process Oversight Committee report Antonio Vegezzi introduced several matters within the responsibility of the Trustees' Due Process Oversight Committee. Development of IFRS XBRL Taxonomy extensions The Trustees approved a business plan that would facilitate the inception of a new body devoted to the development and maintenance of IFRS Taxonomy extensions. Implementation of the business plan was dependent on securing funding for the project as it fell outside the current agreed budget. Other XBRL Activities Mr Vegezzi reported on other aspects of the Trustees' oversight of the XBRL project. There was no discussion. Annual report of due process oversight activities The Trustees received the Committee's summary of activities (this will be available on the Trustees' pages of the IASB's Website). There were no comments. Benchmarking oversight activities Mr Vegezzi noted that the Committee would be looking at how other public-interest oversight groups execute their function in order to ensure that the IFRS Foundation procedures are the most appropriate. Mr Vegezzi also noted that the Committee would be reviewing the composition, mandate and effectiveness of the Interpretations Committee. Having reviewed the IASB, the Advisory Council, and Working Groups in the past two years or so, it is the Interpretations Committee's turn. In response to this, a Trustee suggested that, with seven critical due process documents to be issued in the next few months, the Due Process Oversight Committee should prioritise their activities to ensure that all due process is followed and be prepared to defend the IASB against any charges that it had not followed such process. This one activity was far more important, in his view, than the Interpretations Committee or XBRL. Annual Improvements project Mr Vegezzi noted that the French national standard-setter (ANC) had raised a formal complaint about the scope and conduct of the IASB's Annual Improvements Project. The IASB would define more closely what issues qualify for being addressed in the Annual Improvements Project and which should be addressed by other means. IFRS Advisory Council Chairman's report The IFRS Advisory Council Chairman Paul Cherry provided a comprehensive report on the Council's recent activities. He underlined the importance of the response to the financial crisis and expressed the Council's support for a comprehensive financial instruments standard rather than for a piecemeal approach. On loan loss provisioning Mr. Cherry expressed the Council's support for earlier recognition of credit losses whether you call it 'incurred' or 'expected' loss. In the Council's view, convergence was desirable; however, while there is widespread understanding of divergence in usage of fair value (classification and measurement) and potentially hedging, constituents would not understand divergence on impairment. With respect to the IAS 37 exposure draft process, the Mr Cherry expressed some misgivings. In his view, the Board should draw lessons from its recent experience and re-think the communication on sensitive subjects. He emphasised that due process and participation is, in the long run, much more important than whether constituents support a particular proposal. The Trustees emphasised that communication and outreach would play even greater role given the expected issuance of multiple exposure drafts, some of which would be controversial. Mr Cherry noted that direct outreach and engaging constituents in form of round-tables is more effective than a formal process in which comments are expected. As an example, he noted that the Board has a serious communication problem related to the direct method of cash flow. In his view, given the widespread opposition, the message of the Board is not getting out to the appropriate audience (CFO and board of directors level) sufficiently in advance. Finally, Mr Cherry observed that the Council members expressed some need for IFRS educational guidance for emerging markets. In his view, such countries do not ask for special set of Standards but feel that the current and proposed Standards are complicated and often address very complex issues that are not widespread in their markets. Therefore, any guidance should focus on fundamental parts of the Standards. IFRS Foundation Review Tom Seidenstein, IFRS Foundation Chief Operating Officer, noted that the Trustees had agreed to undertake a full strategic review of the IFRS Foundation for the period immediately after June 2011. This review would likely address the period 2011-2016 and would involve public consultation with all stakeholders and involve the Monitoring Board. In deciding the broad topics that will form the basis for the review, Trustees clarified staff proposals and offered suggestions about the broader context. For example, if the IASB completes the 2011 suite of Standards successfully, it would be appropriate that the Trustees seek to enforce the IFRS brand and promote consistency of application of the Standards. In addition, the Trustees should consider what corporate reporting might look like in 2016 and consider the IASB's involvement (if any) with such areas as sustainability and carbon reporting. These topics would be in addition to the fundamental issues of governance and funding. The assistance and expertise represented on the Advisory Council would be instrumental in both framing and executing the review. As a result of the discussions, the Trustees agreed that the strategic review should concentrate on three major themes: governance, oversight and effectiveness of the IFRS Foundation and related bodies; funding the organisation; and enhancing stakeholder engagement. Funding The IFRS Foundation staff reviewed the current funding situation of the organisation. Essentially, committed funding was as reported in January; however, some foreign exchange gains had been made as a result of the depreciation of the British Pound against the US dollar and the Euro. Counterbalancing those gains to some extent were losses on foreign exchange contracts. The Trustees discussed this state of affairs briefly. Trustees noted that in the Asia/Oceania region, they had managed to address funding contributions from their region in such a way that most are appropriate and up to date. There were a few 'freeloaders', which jurisdictions might also be breaching copyright. Trustees from this region are working to resolve those issues. EU Budget-based funding The Trustees reviewed the official documents that form the basis for the proposed EU Budget-based funding for the IFRS Foundation for the period 1 January 2010 to 31 December 2013. In particular, the Trustees considered Decision 716/2009/EC of the European Parliament and the Council, which details the terms and conditions of the funding programme. A seminal intervention was made by Trustee Sir Bryan Nicholson, who drew on his experience at IFAC Public Interest Oversight Board, which had been examining many of the same issues the day before this meeting (the PIOB is also to receive EU Budget-based funding). In his view, once the EU funding process is in place, the significant contributions from France and Germany would not be maintained. In addition, EU funding was a 'bureaucratic nightmare' and the Trustees – both the finance committee and the EU-based Trustees – had much work to do to prepare for the challenges that EU funding would bring. Most fundamentally, it would be vital to gain a proper and shared understanding with the European Commission of what the terms and conditions in Decision 716/2009/EC (described as 'opaque') actually meant; if the Trustees did not have this understanding, they would be failing in their fiduciary duties. The IASCF had to develop resources and processes that allowed it to work constructively with the EU bureaucracy in the least bureaucratic and most efficient manner. Sir Bryan's intervention sparked a lively debate, especially among EU-based Trustees, some of whom were worried in equal measure about the potential influence of the European Commission and the European Parliament. As a result, it was agreed that the IFRS Foundation Chairman should seek a meeting with the Internal Markets Commissioner to determine whether the improvements to the Foundation's governance made in 2009 and 2010 satisfied the European Commission and the Parliament, and open a dialogue on gaining a shared understanding of the conditions attaching to the funding itself. In the Chairman's view, once the Commissioner is satisfied that the Foundation had met the conditions laid out in the Decision to qualify for the funding programme, the Commissioner should be prepared to argue the Foundation's case before the Parliament. A US-based Trustee noted that any government-based funding came with a price, both in terms of politicking and bureaucracy. If the US Securities and Exchange Commission were to put some form of US-based funding in place, the IFRS Foundation should expect the US Congress to be interested and for some level of bureaucracy. Another US-based Trustee suggested that it would be useful to align the conditions and obligations among the funding regimes of the major funding jurisdictions, so that the Foundation did not have to face multiple and potentially conflicting requirements. It was hoped that the SEC Chair could report some progress at the meeting of the Monitoring Board on 1 April with respect to a US funding regime. This summary is based on notes taken by observers at the Trustees' meeting and should not be regarded as an official or final summary.

31 March 2010: Dominican Republic adopts IFRSs and IFRS for SMEs

In the Dominican Republic, the Instituto de Contadores Publicos Autorizados de la Republica Dominicana (Institute of CPAs of the Dominican Republic, or ICPARD) has had the legal power to establish accounting standards in accordance with article 31 of Law 479-08 since July 2009. In February 2010 the ICPARD adopted two resolutions: Listed companies. In Resolution 001 (PDF 211k, Spanish), the ICPARD established the mandatory use of IFRSs for companies whose shares are quoted on the Bolsa de Valores de la Republica Dominicana (BVRD, the Stock Exchange of the Dominican Republic). The resolution provides for a two-step implementation of IFRSs, requiring some standards as mandatory starting in 2010 while the others become mandatory in 2014. Those companies that currently are using IFRSs will continue to do so. In addition, the resolution allows companies that currently prepare financial statements in accordance with US GAAP to continue to do so up to 2014, when they will need to use IFRSs. If IFRSs do not address an accounting question, companies should follow US GAAP. Government-regulated companies. Resolution 001 provides that such companies must follow the requirements of the government regulatory body. Other companies. In Resolution 002 (PDF 202k, Spanish), the ICPARD established the mandatory use of IFRS for SMEs for all companies whose shares are not quoted on the BVRD (other than government-regulated companies). The resolution provides for a two-step implementation of the IFRS for SMEs, requiring some sections as mandatory starting in 2010 while the other sections become mandatory in 2014. In addition, the resolution allows companies that currently prepare financial statements in accordance with US GAAP to continue to do so up to 2014 when they will need to switch to the IFRS for SMEs. If the IFRSs for SMEs does not address an accounting question, companies should follow full IFRSs and then US GAAP.

30 March 2010: Notes from Trustees' subgroup meeting

On Monday 29 March 2010, subgroups of the Trustees of the IFRS Foundation (IASB) and the US Financial Accounting Foundation (FASB) responsible for monitoring IASB-FASB convergence activities met with the Chairmen and Technical Directors of the IASB and FASB to discuss the convergence agenda. Both the FAF and IASCF Chairmen were present, along with about five trustees from each organisation in addition to the respective chief operating officers. One FAF trustee and the technical director and Chairman of the FASB joined by video link. Meeting of Subgroups of Trustees of IFRS Foundation and Financial Accounting Foundation 29 March 2010, London The IASB and FASB chairman addressed each of the convergence projects in turn, highlighting where they thought they have agreement between the Boards and those topics on which there are severe challenges. FASB Chairman Robert Herz noted that meeting in joint session had proved to be much more effective, helping the Boards to understand each other's point of view and reach common decisions on many issues. He noted that 'good progress had been made on a good majority' of the MoU projects. A few points arose in the question and answer session: Resources: Both FAF and IASCF asked their respective standard-setters whether they had enough resources to complete the MoU. Both said 'yes', although financial instrument specialists were hard to find. IASB Chairman Sir David Tweedie thanked the large audit firms in particular for helping out-and giving the IASB 'real experts'. Challenges: The projects most susceptible to slippage against the MoU are: Financial instruments, for which much depends on the post-exposure deliberations as the IASB and FASB seek to reconcile their models. Leases, for which both Boards are braced for a high volume of responses. Financial statement presentation: the Boards agree, but it is likely that the changes proposed will be contentious for preparers especially. Revenue recognition, if only because of the massive change in practice in some significant industries. On the non-MoU joint projects, the most significant challenge is Insurance. Resource at the FASB is an issue, especially because the FASB is playing 'catch-up' to the IASB. It was admitted that there are a number of issues for which the exposure draft may have to expose alternative solutions, since it may be impossible to reconcile IASB and FASB views. XBRL was noted as a sleeping issue, especially because of the challenges of data capture, but also an issue that might aid the financial statement presentation project. The FAF and IASCF Chairmen concluded the meeting by saying that they considered it reasonable to report to the Monitoring Board (and the FAF oversight body) that the MoU was 'broadly on track' for June 2011 completion. Financial instruments and leases might be 'a challenge', but completing all other MoU projects by that date 'seems within possibility'. The sub-committee will maintain 'open communications' out of session. This summary is based on notes taken by observers at the Trustees' meeting and should not be regarded as an official or final summary.

30 March 2010: Ethics Board proposes three-year work plan

The International Ethics Standards Board for Accountants (IESBA) has invited comment an exposure draft (ED) setting out its proposed strategy and work plan for 2010-2012. Among other things, the work plan envisions completing two current high-priority projects – on Conflicts of Interest and Responding to Suspected Fraud or Illegal Acts – and beginning a project on application of the 'related entity' definition in the IESBA's Code of Ethics to audits of collective investment vehicles. Click for Press Release (PDF 26k) which includes a hyperlink to download the ED. Comment deadline is 15 June 2010.

30 March 2010: Stay Tuned Online – IFRS and UK GAAP update

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRSs and other financial reporting issues. Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July, and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation. The topics covered in the March 2010 webcast: Measuring by halves: Surveying half-yearly financial reporting ED/2010/1 Measurement of Liabilities in IAS 37 FRC and FRRP developments A roundup of other UK developments Other IFRS developments / endorsement summary To access the recording Click Here. There's a permanent link on our UK Country Page.

30 March 2010: iGAAP newsletter March 2010

Deloitte (United Kingdom) has published the March 2010 edition of their quarterly iGAAP Newsletter. This newsletter covers the activities of the IASB and the UK Accounting Standards Board (ASB). Each issue includes updates on the activities of the IASB and the ASB, project timetables for both boards, links to new Deloitte publications, an interview of someone involved with IFRSs, and a table showing IFRSs issued but not yet effective or endorsed by the European Union. The interviewee for the March 2010 issue is Paul Pacter, webmaster of IAS Plus. Click to download iGAAP Newsletter March 2010 (PDF 165k). Links to all past issues are on our United Kingdom Country Page.

30 March 2010: PCAOB proposal on communications with audit committees

The US Public Company Accounting Oversight Board (PCAOB) has proposed for comment an auditing standard on Communications with Audit Committees, and a series of related amendments to its interim standards. The proposal addresses requirements for auditors to communicate with audit committees of public company boards of directors. The proposed standard includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to document that understanding in an engagement letter. The proposal includes, among other things, requirements relating to communication about critical accounting polices, practices, judgements, and estimates. Comment deadline is 28 May 2010. Click for Press Release (PDF 39k).

29 March 2010: Deloitte IFRS newsletter in Chinese

Deloitte China has published the Chinese translation of the following IAS Plus Update newsletter: IASB publishes Exposure Draft on Conceptual Framework Description of the Reporting Entity (PDF 144k) Here is the English Version (PDF 69k) Click here to go to the IAS Plus China Page.

29 March 2010: Expert Advisory Panel on impairment will meet

The Expert Advisory Panel on the impairment of financial assets will meet at the IASB's offices in London on Monday and Tuesday 26 and 27 April 2010. In November 2009, the IASB issued an Exposure Draft on Impairment of Financial Instruments Measured at Amortised Cost. The ED proposes to move from an 'incurred loss model' to an 'expected loss model'. An incurred loss model assumes that all loans will be repaid until evidence to the contrary (known as a loss or trigger event) is identified. Only at that point is the impaired loan (or portfolio of loans) written down to a lower value. Under the proposed expected loss model, expected losses are recognised throughout the life of a loan or other financial asset measured at amortised cost, not just after a loss event has been identified. When the ED was issued, the IASB announced that because of significant practical challenges in moving to an expected loss model, the IASB will establish an Expert Advisory Panel comprising experts in credit risk management to advise the board. Click for list of Advisory Panel Members (PDF 18k).

29 March 2010: Monitoring Board will meet with Trustees

The Monitoring Board (representatives of global capital markets authorities) that oversees the IFRS Foundation will meet with the Trustees of the Foundation on 1 April 2010 from 13.30-16.00pm (London time) at the IASB's offices in London. The meeting is open to public observation and will be webcast. The agenda for the meeting is below. More Information on the IASB's website. Agenda for the Monitoring Board Meeting with IFRS Foundation Trustees, 1 April 2010 Report from the Monitoring Board and its operations Statement of the Monitoring Board on Principles for Accounting Standards and Standard Setting (22 September) Joint statement on convergence (11 November) Signing MOU/Charter by EC (December 2009) Developments and achievements since the last Monitoring Board meeting. Explanation on stage of the Constitution Review (due process and decision process) IASCF annual report Discussion of financing strategy: implications and matters for resolution Planning strategically for the work following the completion of the IASB-FASB Memorandum of Understanding Enhanced stakeholder engagement and outreach relationships including enhanced technical dialogue (state of play

28 March 2010: IASB webcast on leases

On 31 March 2010, the IASB will host a live webcast on the Board's project on accounting for leases. The IASB plans to issue an exposure draft (ED) of a proposed replacement for IAS 17 in the second quarter of 2010, and a final standard in mid-2011. The ED is expected to propose that all assets (property rights) and liabilities arising under lease contracts should be recognised in the balance sheet. There is no charge to participate in the webcast, but registration is required. Participants will have an opportunity to submit written questions during the webcast. Webcast Topic: The IASB's project on accounting for lease contracts Date and Time: Wednesday, 31 March 2010, 10:00-11:00am London time, and again at 16:00-17:00pm London time More Information and Registration on IASB Website: Click Here IAS Plus Project Page: Leases

27 March 2010: ACCA-Deloitte narrative reporting survey – seeking input

Next month, ACCA (the Association of Chartered Certified Accountants) and Deloitte LLP will be embarking on a joint international survey, exploring current and anticipated future challenges in narrative reporting (that is the information in annual reports outside the audited financial statements). The survey will: investigate the critical challenges, principally for CFOs of publicly accountable entities, in preparing narrative disclosures; and identify likely trends in narrative reporting in different reporting environments around the world. The survey will be carried out in Australia, China, Malaysia, Singapore, Switzerland, UAE, UK, USA, and certain Central African countries. Preparers in those countries are invited to register their interest in being part of this new study by visiting: www.accaglobal.com/narrativereportingsurvey. Interested parties will be invited to participate, confidentially, in the survey when it is launched on 15 April 2010. In return for participation, all survey respondents will receive a complimentary copy of the final report which is scheduled for publication in September 2010.

27 March 2010: IAS Plus is CPA Journal's 'Website of the Month'

The March 2010 issue of The CPA Journal (United States) reviews IAS Plus as its 'Website of the Month'. The review, by Prof. Susan B Anders, describes in detail what is available on IAS Plus and how the site is organised. The CPA Journal is copyrighted by the New York State Society of CPAs, and we are grateful to the editors and the author for giving us permission to post the article on IAS Plus. Click to download Website of the Month: IAS Plus (PDF 52k), by Susan B Anders. Incidentally, the cover story of the March 2010 issue (available on line) is 'IFRS Guidance: Preparing for the Transition'.

26 March 2010: EC will hold assessment meetings on IFRS 9

The European Commission will hold four 'technical assessment meetings' to discuss the first phase of IFRS 9 dealing with classification and measurement of financial assets. At the meetings, representatives of four industries are invited to present an industry perspective. Click for EU Announcement (PDF 239k). The meetings are as follows (all at the Internal Market Directorate's offices in Brussels): Insurance: Tuesday 20 April 2010, 14:00-17:30pm Banking: Thursday 22 April 2010, 09:30-13:00pm Accounting, auditing, and public authorities: Friday 23 April 2010, 09:30-13:00pm Investors and other stakeholders: Monday 26 April 2010, 14:00-17:30pm

26 March 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 March 2010 Board meeting and joint meeting with FASB: Annual Improvements Consolidation Derecognition of Financial Instruments Fair Value Measurement Financial Instruments: Classification and Measurement – Financial Liabilities Income Taxes – limited amendments to IAS 12 Insurance Contracts Joint Arrangements Leases Liabilities Revenue Recognition

26 March 2010: IASC Foundation Trustees meeting

The Trustees of the IASC Foundation will meet in London on 30 and 31 March 2010. The public portion of the meeting will take place from 11:30am to 17:00pm on Tuesday 30 March. The meeting is open to public observation and will be webcast. The agenda for the public meeting is below. More Information on the IASB's website. Agenda for the Public Portion of the IASC Foundation Trustees Meeting, 30 March 2010 Review of the status of IASB-FASB convergence efforts Report of the IASB Chairman on other IASB work Report of the Due Process Oversight Committee Report of the IFRS Advisory Council Chairman Proposed process for Strategy Review and Review of the IFRS Advisory Council Status of financing efforts

26 March 2010: IASC Foundation Trustees subgroup meeting

On Monday 29 March 2010, subgroups of the Trustees of the IASC Foundation (IASB) and the US Financial Accounting Foundation (FASB) responsible for monitoring IASB-FASB convergence activities will meet at the IASC Foundation offices, 30 Cannon Street, London from 15:15 to 17:00pm. The meeting will be webcast. More Information on the IASB's website.

26 March 2010: Deloitte IFRS newsletter in Spanish

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín de Actualización IAS Plus – IASB publica borrador para discusión pública sobre la descripción que la estructura conceptual hace respecto de la entidad que reporta (PDF 21k) Spanish version of IAS Plus Update January 2010 – IAS Plus Update Newsletter – IASB publishes Exposure Draft on Conceptual Framework Description of the Reporting Entity (PDF 69k) We have many resources in Spanish Here.

26 March 2010: Heads Up on reporting entity exposure draft

On 11 March 2010, the IASB and FASB jointly published for comment an exposure draft (ED) on the reporting entity concept. The proposals form part of a Joint Project to develop a common and improved conceptual framework that provides the basis for developing future accounting standards. The latest Heads Up newsletter from Deloitte United States discusses the ED. Click to download the Heads Up Newsletter (PDF 95k).

26 March 2010: Updated EFRAG 'endorsement status report'

The European Union has endorsed the 2009 Improvements to IFRSs and Amendments to IFRS 2 Share-based Payment by publication in the Official Journal on 24 March 2010. Therefore, 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 25 March 2010 (PDF 116k). Currently, six IASB pronouncements await endorsement action. You can always find the endorsement status report Here.

25 March 2010: IFRS Insights newsletter

We have posted the IFRS Insights Newsletter for March-April 2010 (PDF 404k) from Deloitte & Touche LLP (United States). IFRS Insights is a newsletter on IFRS aimed at US companies. This issue includes: An update covering the Securities and Exchange Commission's (SEC) recent statement and IFRS Work Plan An article about IFRS and repatriation planning with a look at the opportunities and challenges in statutory reporting An overview of the IASB exposure draft, Financial Instruments: Amortized Cost and Impairment An industry update about Rate-regulated activities Featured IFRS polling results from a recent Deloitte IFRS Dbriefs webcast. We have Permanent Links to all IFRS Insights on our USA country page.

25 March 2010: Notes from Joint IASB-FASB meeting 24 March

The IASB and FASB are holding a joint meeting at the IASB's offices in London on Monday-Wednesday 22-24 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

24 March 2010: Notes from Joint IASB-FASB meeting 23 March

The IASB and FASB are holding a joint meeting at the IASB's offices in London on Monday-Wednesday 22-24 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

24 March 2010: SEC statement on IFRSs in the United States

en Español

On 24 February 2010 the US Securities and Exchange Commission approved a 71-page Commission Statement in Support of Convergence and Global Accounting Standards (PDF 349k). The SEC Statement 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. Deloitte (Colombia) has published a Spanish translation of the Commission's statement: Declaración de la SEC en respaldo de la convergencia y de los estándares globales de contabilidad (PDF 499k).

23 March 2010: Namibia adopts the IFRS for SMEs

By Resolution of its Council (PDF 330k), the Institute of Chartered Accountants of Namibia has adopted the IFRS for SMEs for use in Namibia for financial statements authorised for issue after 17 February 2010. Applicability is as follows: 1.1 Council of the Institute has decided that the IFRS for SMEs may be applied by: a 'public company' or a 'private company', as defined in the Companies Act, 1973 if it does not have public accountability as defined in Section 1 of the IFRS for SMEs. 1.2 For entities other than companies where the founding document or other regulation requires compliance with a 'fair presentation framework' as contemplated by the International Federation of Accountants ('IFAC') the IFRS for SMEs may be applied, if the entity does not have public accountability as defined in Section 1 of the IFRS for SMEs, except in the circumstances described in 1.4 below. 1.3 For entities where legal provisions or other regulations require compliance with a specific financial reporting framework (other than the IFRS for SMEs), such an entity may not apply the IFRS for SMEs even if it does not have public accountability as defined in Section 1 of the Statement of IFRS for SMEs. 1.4 For entities whose financial reporting framework is not set out by legal provisions, the founding statement or other regulations, if such an entity does not have public accountability, as defined in Section 1 of the Statement of IFRS for SMEs, it should assess whether it is appropriate to apply the IFRS for SMEs.

23 March 2010: Notes from Joint IASB-FASB meeting 22 March

The IASB and FASB are holding a joint meeting at the IASB's offices in London on Monday-Wednesday 22-24 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

22 March 2010: Brazil adopts the IFRS for SMEs

In December 2009, the Brazilian Accounting Pronouncements Committee (CPC) adopted a Portuguese version of the IFRS for SMEs as an option for SMEs in Brazil. By Resolution 1255 of 2009, the CPC's SME standard was endorsed by the Brazilian Federal Accounting Council (CFC), the national professional body. (Here is a copy of Resolution 1255 (PDF 794k)). The standard is a temporary and unofficial translation of the IFRS for SMEs that is available for Download from the CPC Website (or Here on IAS Plus (PDF 1,049k)). The IASC Foundation is presently organising an official translation. It is anticipated that auditors will be able to report that financial statements that comply with the CPC's SME standard are in conformity with the IFRS for SMEs because there are no substantive differences between the unofficial Portuguese translation and the IFRS for SMEs. The estimated number of SMEs in Brazil (January 2009) was 5.9 million, representing 99% of Brazilian enterprises. While many of them are expected to continue to follow a very simple accounting system permitted under the Brazilian SMEs law, many others are expected to switch to the Brazilian IFRS for SMEs equivalent. For example, the Brazilian National Development Bank (BNDES) is expected to encourage or even require all of its borrowers (approximately 250,000 SMEs) to use the new standard.

21 March 2010: Comment deadline extended on proposal to replace IAS 37

At its meeting on 19 March 2010, the IASB extended the deadline to comment on a revised exposure draft (ED/2010/1) of one section of a replacement for IAS 37 Provisions, Contingent Liabilities and Contingent Assets. That section deals with measurement of liabilities that are within the scope of IAS 37. The original deadline of 12 April 2010 has been extended to 19 May 2010. IAS 37 applies to liabilities not covered by other accounting standards, including liabilities to decommission assets, environmental liabilities, obligations under onerous contracts, and liabilities arising from legal disputes. In June 2005, the IASB had published Proposals to amend IAS 37, including revised measurement requirements. In the light of the comments received, on 5 January 2010 the IASB issued revised proposals that include more guidance on measurement. It is the comment deadline on those revised proposals that has been extended. The IASB intends to replace IAS 37 in the third quarter of 2010. Click for: Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IASB Refines Proposals for the Measurement of Liabilities in IAS 37 (PDF 89k) explaining the proposals. Project Page on IAS Plus

21 March 2009: EITF Snapshot for Mar 2009

We have posted the March 2010 edition of EITF Snapshot (PDF 113k) summarising the 18 March 2010 meeting of FASB's Emerging Issues Task Force. EITF Snapshot, published by Deloitte & Touche LLP (USA), enables readers to identify relevant topics and to understand quickly the meeting's outcome. Past issues can be downloaded Here. This EITF Snapshot covers the following issue discussed by the EITF at the meeting: Issue 08-9 Milestone Method of Revenue Recognition – Final consensus Issue 09-B Consideration of an Insurer’s Accounting for Majority Owned Investments When the Ownership Is Through a Separate Account – Final consensus Issue 09-F Casino Base Jackpot Liabilities – Final consensus Issue 09-G Clarification of the Definition of Deferred Acquisition Costs of Insurance Entities – Partial consensus reached Issue 09-H Accounting by Healthcare Organizations (Revenue Recognition; Presentation of Insurance Claims and Related Insurance Recoveries; and Measuring Charity Care for Disclosure) – No consensus reached, discussion will continue at a future meeting (revenue recognition). Consensus-for-exposure (presentation of liabilities related to medical malpractice and other similar claims, and disclosure of charity care). Issue 09-I Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset – Final consensus Issue 09-J Impact of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Primarily Trades – Final consensus Initial EITF consensuses (known as 'consensuses-for-exposure') are exposed for a comment period after ratification by the FASB. At its first scheduled meeting after the comment period, the EITF considers comments received and, as warranted, affirms its consensuses-for-exposure as final consensuses. Those consensuses are then provided to the Board for final ratification. The EITF has recently made the following changes to the structuring of EITF issues: Codification – With the launch of the FASB Accounting Standards Codification (ASC) on July 1, 2009, all EITF Issues are finalised as ASUs. The numbering system for EITF Issues (that is, before their finalisation as ASUs) has also changed. Rather than being assigned a number that corresponds to the year and that Issue’s spot in the progression (for example, Issue 08-1 was the first Issue in 2008), a new Issue will be assigned a number that corresponds to the year in which it was added and a letter for where it falls in the progression. For example, the first EITF Issue added in 2010 will be referred to as Issue 10-A. The numbering used for previous EITF Issues under the old system will not change. Proposed Effective Dates – New exposure drafts issued on the basis of consensuses-for-exposure will no longer include proposed effective dates. Instead, future exposure drafts will ask respondents to comment on the effort involved in implementing the proposed updates, which the Task Force will consider during final deliberations in determining the effective date. Basis for Conclusions – New exposure drafts and final ASUs issued after the March 2010 meeting will include a basis for conclusions and dissenting views, if applicable.

20 March 2010: Notes from IASB March 2010 meeting day 5

The IASB and FASB held a joint meeting at the IASB's offices in London on Monday-Friday 15-19 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

20 March 2010: Newsletter on reporting entity exposure draft

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IASB publishes Exposure Draft on Conceptual Framework Description of the Reporting Entity (PDF 69k). On 11 March 2010, the IASB published for comment an exposure draft (ED) on the reporting entity concept. The proposals form part of a Joint Project to develop a common and improved conceptual framework that provides the basis for developing future accounting standards. Comment deadline is 16 July 2010. Our newsletter explains the proposals in the ED and their implications for consolidated financial statements and other types of financial statements. All of our past IAS Plus newsletters are Here.

19 March 2010: Notes from IASB March 2010 meeting day 4

The IASB and FASB are holding a joint meeting at the IASB's offices in London on Monday-Friday 15-19 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

19 March 2010: IFRS insurance accounting newsletter

Deloitte (United Kingdom) has published the March 2010 issue of Insurance Accounting Newsletter. This issue is titled Insurance Accounting Taking Shape and focuses on the discussions the joint IASB-FASB meetings of 10 February and 18 February. The expected publication date of the Exposure Draft is May 2010. Click to download Issue 12 of the Insurance Accounting Newsletter (PDF 130k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.

19 March 2010: Costa Rica adopts the IFRS for SMEs

The Costa Rican Institute of Certified Public Accountants is, by law, the accounting standard-setter in Costa Rica. Currently, all companies follow IFRSs with the exception of some regulated entities (banks and finance entities, stockbrokers, and pension funds) which follow accounting policies adopted by the regulators. The Institute has adopted the IFRS for SMEs, to be effective for financial years beginning 1 January 2010. However, the Institute is still deliberating which entities will qualify as SMEs, and therefore are eligible to use the IFRS for SMEs. We have created a new Country Page for Costa Rica on IAS Plus.

18 March 2010: Nominations invited for new SME Implementation Group

The Trustees of the IASC Foundation have invited nominations for membership of the new SME Implementation Group (SMEIG). The Terms of Reference and Operating Procedures of the SMEIG have also been released (available on the IASB's website www.iasb.org/IFRS+for+SMEs/SME+Implementation+Group. The mission of the SMEIG is to support the international adoption of the IFRS for SMEs and to monitor its implementation. The SMEIG will have two principal responsibilities: to develop non-mandatory guidance for implementing the IFRS for SMEs in the form of questions and answers (Q&As) that will be made publicly available to interested parties on a timely basis, and to make recommendations to the International Accounting Standards Board (IASB) if and when needed regarding the need to amend the IFRS for SMEs. The SMEIG will be chaired by Paul Pacter, the IASB’s Director of Standards for SMEs. All members of the SMEIG will serve on a voluntary basis. The SMEIG may also include appointed observers who have the right to participate in SMEIG deliberations, but not to vote. Nominations and applications are invited by 30 April 2010. Click for Press Release (PDF 100k).

18 March 2010: Notes from IASB March 2010 meeting day 3

The IASB and FASB are holding a joint meeting at the IASB's offices in London on Monday-Friday 15-19 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

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

The IASB and FASB are holding a joint meeting at the IASB's offices in London on Monday-Friday 15-19 March 2010. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

17 March 2010: New IFRS for SMEs Update newsletter

The IASB has published the first issue of the IFRS for SMEs Update newsletter – a regular staff summary of news relating to the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Contents of the first issue of IFRS for SMEs Update: Trustees approve SMEIG terms of reference and operating procedures First two IFRS for SMEs 'train the trainers' workshops held IASC Foundation IFRS for SMEs training material Translations of the IFRS for SMEs Recent adoptions of the IFRS for SMEs Where to obtain IFRS for SMEs materials Click here to View the IFRS for SMEs Update on IASB's Website in HTML or PDF format Click here to register to Subscribe to IFRS for SMEs Email Alerts which will keep you informed of future editions of the IFRS for SMEs Update and other news relating to the IFRS for SMEs.

16 March 2010: IASB Chairman addresses EU finance ministers

On 16 March 2010, IASB Chairman Sir David Tweedie addressed a meeting of the Finance and Economic Ministers of the European Union member states. He reported on the progress that the IASB has made in achieving the 2011 convergence target set out by the G20, and issues related to the financial crisis raised by the G20 and the European Union. Click to download Sir David's Prepared Statement (PDF 26k).

16 March 2010: Special joint IASB-FASB meeting 8 April

The IASB has announced that a special joint IASB-FASB meeting has been scheduled at the IASB's offices in London on Thursday 8 April 2010. The Boards will also hold their regular April monthly meeting in London on 19-23 April 2010.

15 March 2010: IOSCO principles of data collection for hedge funds

The International Organization of Securities Commissions' (IOSCO) Technical Committee has published details of an agreed template for the global collection of hedge fund information. The template is intended to enable the collection and exchange of consistent and comparable data amongst regulators and other competent authorities to facilitate international supervisory cooperation in identifying possible systemic risks in this sector. IOSCO believes that participants are best monitored through their trading activities, the markets they operate in, funding and counterparty information, amongst others. There are 11 proposed categories of information which incorporate both supervisory and systemic data and build on the data collection recommendations set out in its final report on Hedge Fund Oversight (June 2009). Those categories are: General manager and adviser information Performance and investor information related to covered funds Assets under management Gross and net product exposure and asset class concentration Gross and net geographic exposure Trading and turnover issues Asset/liability issues Borrowing Risk issues Credit counterparty exposure Other issues IOSCO recommends that the first data gathering exercise should be carried out on a best efforts basis (given pending legislation in many jurisdictions) in September 2010. Click for: Hedge Fund Data Template (PDF 168k) Hedge Fund Oversight Report June 2009 (PDF 277k)

13 March 2010: DTT members respond to EC consultation on the IFRS for SMEs

The member firms of Deloitte Touche Tohmatsu (DTT) located in the European Economic Area (EEA) have submitted a joint response to the European Commission's consultation on the IFRS for Small and Medium-sized Entities. The Commission launched the consultation in November 2009 to gain an understanding of EU stakeholders' views on the IFRS for SMEs. The Commission said that the responses will assist the Commission in its ongoing review of the Accounting Directives. The firms' overall view: We believe that the IFRS for SMEs is suitable for widespread use within Europe and for companies of any type and size, providing such entities are preparing general purpose financial statements. IFRS for SMEs is a high quality, global, principles-based standard that has been developed by specialists from around the world through an extensive consultative process and we believe its adoption would benefit users (by increased comparability of financial statements) and preparers (through reduced costs for groups of companies and economies of scale generally) and would serve to facilitate cross-border trade, services, including accounting and audit, and movement of capital. In the European context, we believe this can contribute to making the internal market a reality for smaller businesses as well as benefit the many companies not listed on a regulated market that do operate across borders in the EU. There may also be reduced costs for Member State standard setters. Click to download: Response of DTT EEA Member Firms to the Consultation (PDF 39k) Consultation Paper (PDF 58k)

13 March 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 March 2010 meeting not to add the following topics to its agenda. Our summary now includes 180 issues: IAS 21 The Effects of Changes in Foreign Exchange Rates – Determination of functional currency of an investment holding company IAS 32 Financial Instruments: Presentation – Shareholder discretion IAS 36 Impairment of Assets – Interaction with transition requirements of IFRS 8 IAS 39 Financial Instruments: Recognition and Measurement – Unit of account for forward contracts with volumetric optionality

12 March 2010: Notes from Special 11 March Joint IASB-FASB meeting

The IASB and FASB held a special joint meeting at the IASB's offices in London on Thursday, 11 March 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

11 March 2010: Conceptual Framework ED on reporting entity

The IASB and the US Financial Accounting Standards Board (FASB) have published for public comment an exposure draft (ED) on the reporting entity concept. The proposals form part of a Joint Project to develop a common and improved conceptual framework that provides the basis for developing future accounting standards. The boards published a discussion paper on the Reporting Entity Concept in May 2008. Respondents broadly supported the boards' preliminary views. In response to those comments the ED proposes what a reporting entity is and when an entity controls another entity. A summary is below: What is a reporting entity? A reporting entity is a circumscribed area of economic activities whose financial information has the potential to be useful to existing and potential equity investors, lenders and other creditors who cannot directly obtain the information they need in making decisions about providing resources to the entity and in assessing whether the management and the governing board of that entity have made efficient and effective use of the resources provided. When does one entity control another entity (resulting in a combined reporting entity)? An entity controls another entity when it has the power to direct the activities of that other entity to generate benefits for (or limit losses to) itself. If an entity that controls one or more entities prepares financial reports, it should present consolidated financial statements. Can a portion of an entity be a reporting entity? A portion of an entity could qualify as a reporting entity if the economic activities of that portion can be distinguished objectively from the rest of the entity and financial information about that portion of the entity has the potential to be useful in making decisions about providing resources to that portion of the entity. Comments on the ED are invited by 16 July 2010. Click for Press Release (PDF 166k). The ED itself may be downloaded from the IASB's Website.

10 March 2010: Possible exemption of EU micros from financial reporting

The European Parliament has voted to exempt very small companies ('micro-entities') from the existing EU-wide laws that require them to prepare annual financial statements. The Parliament's action still must be approved by the EU Council before it becomes law. If approved, it would then be up to each EU Member State to grant such exemptions. Parliament's resolution also calls for a general revision of the 4th and 7th Company Law Directives in 2010. Currently, about 7.2 million EU companies are subject to reporting rules under EU accounting directives. Of those, 5.4 million (around 75%) are 'micro-entities' primarily engaged in business at local or regional level, with little or no cross-border activity. Click for EU Parliament Press Release (PDF 109k). The European Commission is currently Consulting on the use of the IFRS for SMEs in Europe.

10 March 2010: New IAS Plus country page for Kuwait

We have created a new Country Page for Kuwait on IAS Plus. Kuwait has long been an IFRS country. Since 1990, the Kuwait Ministry of Commerce has required companies and institutions of all legal types, listed and unlisted, to prepare their financial statements in accordance with IFRSs. Possible adoption of the IFRS for SMEs is under study.

10 March 2010: IASB webcast on presenting comprehensive income

On 15 March and again on 19 March 2010, the IASB will host live webcasts on the Board's deliberations about the presentation of items in Other Comprehensive Income. The two webcasts are identical. The second one will be held on a different day to fit around the Board meeting schedule that week. There is no charge to participate, but registration is required. Participants will have an opportunity to submit written questions during the webcast. Webcast Topic: Presentation of items in Other Comprehensive Income Date and Time: Monday, 15 March 2010, 10:00-11:00am London time, and again on Friday, 19 March 2010 15:30-16:30pm London time More Information and Registration on IASB Website: Register for 15 March Session Register for 19 March Session IAS Plus Project Page: Comprehensive Income

9 March 2010: Updated EFRAG 'endorsement status report'

At its meeting on 4 March 2010 the European Commission's Accounting Regulatory Committee (ARC) voted to recommend endorsement of four IFRSs: the revised IAS 24, amendments to IFRIC 14 on prepayments of a minimum funding requirement, IFRIC 19, and the amendment to IFRS 1 on a limited IFRS 7 disclosure exemption. Consequently the European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 9 March 2010 (PDF 120k). Currently, eight IASB pronouncements await endorsement action. You can always find the endorsement status report Here.

9 March 2010: Deloitte Canada IFRS update webcast in French

Cette webémission traitera des secteurs importants sur lesquels vous devrez porter votre attention, au fil des quatre volets suivants: Un examen du plan de projet de l'IASB et de l'état d'avancement de projets d'importance et d'intérêt pour les sociétés canadiennes, notamment en ce qui concerne les activités à tarifs réglementés, la consolidation, les instruments financiers, les coentreprises et les provisions, entre autres enjeux Le point sur l'état d'avancement des exposés-sondages des ACVM et sur les commentaires récemment formulés au sujet des informations relatives au passage aux IFRS à communiquer dans le rapport de gestion Un aperçu des sujets débattus par le Groupe de discussions sur les IFRS du CNC Quelques suggestions qui vous permettront de perfectionner les activités de conversion que vous mènerez au cours de 2010 Webémission: Mise à jour technique sur les IFRS – T1 2010 Date et heure: Le mercredi 7 avril 2010 de 14 h à 15 h 30 (HE) Présentateurs: Robert Lefrançois, Nick Capanna Inscription: Inscrivez-vous

9 March 2010: Deloitte study of half-yearly reporting in the UK

Deloitte (United Kingdom) has published Measuring by Halves (PDF 1,121k), a survey of half-yearly financial reporting in 2009 by 130 listed companies in the United Kingdom. The survey focuses on compliance with the requirements of IAS 34 Interim Financial Reporting and with the half-yearly reporting requirements in the Disclosure and Transparency Rules (DTR) contained in the Financial Services Authority Handbook.

8 March 2010: The Hundred Group and IASB debate IAS 37

On 5 March 2010 Deloitte hosted a live webcast between The Hundred Group of Finance Directors in the United Kingdom and the IASB on the future of accounting for liabilities under IFRSs. The IASB is in the final stages of a project to revise IAS 37. The original exposure draft (ED) was published for comment in July 2005. In January 2010, the IASB published another ED limited to the proposed revisions on measurement of liabilities, but on 22 February 2010 also put up on its website a 'working draft' of the revised IAS 37 standard in its entirety to enable interested parties to see the revised measurement guidance in the context of the proposed new IFRS. The comment period is until the 12th April. As part of its outreach activities, in this webcast with The Hundred Group, the IASB discusses all aspects of the proposed new IFRS. The Hundred Group has written to the IASB to request full re-exposure and, failing that, an extension of the comment period on the current proposals since it is nearly five years since the original ED was published. Like many commentators the Hundred Group was critical of both the recognition and the measurement aspects of the proposals. Asking questions on behalf of The Hundred Group was representatives of three companies: Severn Trent, Tate & Lyle, and Tomkins plc. From the IASB, IASB member Bob Garnett responded to the questions and was joined by Joan Brown, the Project Manager for this project. The webcast was hosted by Veronica Poole, Deloitte Global IFRS Leader–Technical and Mark Smith, Vice-Chair of the Financial Reporting Committee of The Hundred Group. A recording of the webcast is available Here. If you are prompted, the Passcode is 831344.

8 March 2010: Agenda for March 2010 IASB meeting

The IASB will hold its March 2010 regular monthly meeting at its offices in London on Monday to Friday, 15 to 19 March 2010. Portions of the meeting are joint meetings with FASB. The two Boards will also have a long-planned joint meeting, at the IASB's offices in London, on Monday to Wednesday, 22 to 24 March 2010. The meetings will be open to public observation and will be webcast. Presented below is the agenda for both weeks. IASB Board Meeting Agenda 15-19 March 2010, London Monday 15 March 2010 IASB-FASB Joint Meeting (16:30-18:00pm London Time) Insurance Contracts Tuesday 16 March 2010 IASB Meeting (09:15-11:45 London Time) Joint Arrangements – Disclosures and transition IASB-FASB Joint Meeting (12:15-18:15pm London Time) Revenue Recognition - Disclosures Cross-cutting issues – relating to the following projects Insurance Contracts Revenue Recognition Leases Consolidation Wednesday 17 March 2010 Meeting of Representatives of the IASB with EFRAG (09:00-11:00am) IASB Meeting (11:45am-12:30pm London Time) Fair Value Measurement - scope of the standard Standards Advisory Council Update IASB-FASB Joint Meeting (13:00-17:15pm London Time) Insurance Contracts Leases Thursday 18 March 2010 IASB Meeting (09:00am-16:45pm London Time) Annual Improvements Income Taxes - limited amendments to IAS 12 Derecognition Financial Instruments: Hedge Accounting Friday 19 March 2010 IASB Meeting (09:00am-12:30pm London Time) IFRIC Update Financial Instruments: Classification and Measurement – Financial Liabilities Monday 22 March 2010 IASB-FASB Joint Meeting (13:00-18:15pm London Time) Cross-cutting issues – relating to the following projects Insurance Contracts Revenue Recognition Leases Insurance Contracts Derecognition of Financial Instruments – Education Session Tuesday 23 March 2010 IASB-FASB Joint Meeting (09:00am-17:45pm London Time) Consolidation Leases Insurance Contracts Wednesday 24 March 2010 IASB-FASB Joint Meeting (09:00am-12:15pm London Time) Insurance Contracts Fair Value Measurement

8 March 2010: Study of new financial reporting models

The Financial Reporting Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) has published Developments in New Reporting Models. This report argues that business reporting has to change to reflect changes in business, in information technology, and in users' needs. This is a perpetual process. Therefore, the debate on the future of business reporting therefore needs to be reframed – not as a stark choice between an old model and a new one – but in terms of the need for continuing evolutionary improvements. Click to download: Developments in New Reporting Models – Full Report (PDF 580k) Developments in New Reporting Models – Abstract (PDF 54k) The report is copyright by ICAEW and is posted on IAS Plus with the kind permission of the ICAEW Financial Reporting Faculty.

7 March 2010: IFRS for SMEs in Lebanon

Unlisted Lebanese companies can use the IFRS for SMEs. Lebanese Ministerial Order No. 1/6258, dated 21 August 1996 and issued by the Minister of Finance, requires the following types of entities in Lebanon to use International Accounting Standards (now IFRSs): All holding, offshore, limited liability, and joint stock companies, regardless of type, size, and number and turnover of employees; All branches of foreign companies operating in Lebanon; and All sole proprietorships and partnerships whose total number of employees exceeds 25 or that have annual turnover above LBP750 million (US$500,000). Because the IFRS for SMEs is an IFRS, unlisted companies now have the option of using full IFRSs or the IFRS for SMEs, and many are choosing to follow the IFRS for SMEs. Companies listed on the Beirut Stock Exchange must use full IFRSs. We have created a new Lebanon Country Page.

6 March 2010: Notes from the March 2010 IFRIC meeting

The International Financial Reporting Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday, 4 and 5 March 2010. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting. Notes from the IFRIC Meeting 4-5 March 2010 IAS 16 Property, Plant and Equipment – Accounting for production phase stripping costs in the mining industry The IFRIC continued its deliberations on the accounting treatment for stripping costs during the production stage of a mine. In response to a question from the staff, the IFRIC tentatively agreed that by incurring costs to remove the waste, a mining entity has created a benefit in the form of improved access to the mineral ore body and therefore meets the definition of an asset. The IFRIC then discussed whether the asset should be classified as a tangible or intangible asset. One IFRIC member noted that before the IFRIC can conclude on the classification of the asset, it first need to consider whether the asset is an asset in its own right or an addition to an existing asset. After a fairly long discussion, the majority of members supported the view that the benefit created by the stripping costs is an addition to an existing asset. The IFRIC then discussed whether the stripping costs should be capitalised to the intangible asset (mineral right) in accordance with IAS 38 or to the tangible mining assets (plant and equipment) in accordance with IAS 16. The IFRIC tentatively agreed that the capitalisation of stripping costs should follow the treatment applied by an entity when capitalising other mining costs or assets, and an Interpretation should not to specify whether it is an intangible or tangible asset. As a result the IFRIC agreed not to amend to the scope of the Standard with regards to mineral rights and reserves. The IFRIC also deliberated how to allocate stripping costs between the current and future periods. It considered two approaches: strip ratio approach, which makes use of a strip ratio using the long-term mine plan data; and specific identification approach, whereby the costs of a stripping campaign are allocated to the section of the mineral ore that become accessible as a result of the campaign. One IFRIC member questioned the staff on the practicality and application of the specific identification approach in practice. Staff responded that their research showed that the majority of mining entities are capable of applying this approach as the information is already available as part of the mine plan. Another IFRIC member did not consider the specific identification approach to be conservative and was opposed to it. However, the majority of the IFRIC members supported the specific identification approach as, in their opinion, the strip ratio approach can lead to a entity's recognising a gain when the stripping costs have been spread over the entire ore body and it is subsequently decided not to mine the entire ore body. When put to a vote, only one member objected to the specific identification approach, with all other members voting in favour of it. The IFRIC then considered what the appropriate unit of account should be. Without much discussion, the IFRIC tentatively agreed that the unit of account should be the stripping campaign. Lastly, the IFRIC was asked to consider the subsequent attribution (or amortisation) of the asset. The IFRIC tentatively agreed that regardless of whether an entity capitalises those costs as part of a tangible or intangible asset, the asset should be attributed over ore reserves in a systematic and rational manner. IFRIC further agreed that in drafting the interpretation, the concepts of componentisation included in IAS 16 should be incorporated into the interpretation. IFRS 2 Share-based Payment – Vesting and non-vesting conditions At the January 2010 meeting, the IFRIC had tentatively agreed to add a project to its agenda to clarify the distinction between a service condition, a performance condition, and a non-vesting condition. The staff an analysis and preliminary staff views. A number of IFRIC members were uncomfortable with the proposed list of issues identified by the staff for further research and analysis. Those members were also of the opinion that to analyse and amend/improve the issues identified by the staff will result in a complete rewrite of IFRS 2, which is a task that has to be performed by the Board. One IFRIC member noted that the real issue troubling preparers at the moment is the interaction between multiple conditions, especially 'and', vs 'or' conditions, and that the IFRIC should only focus on this issue and leave the comprehensive review of IFRS 2 for the Board. Another IFRIC member observed that although US GAAP guidance on share-based payments is written in a different manner to IFRS 2, the principles are broadly the same, and the same issues are not encountered under US GAAP, as everybody is clear about what the requirements are for service and performance conditions. The IFRIC instructed the staff to explore the guidance under US GAAP regarding the interaction of multiple conditions and determine whether it can be accommodated in IFRS 2 without contradicting any IFRS requirements. Review of Tentative Agenda Decisions published in January 2010 IFRIC Update The IFRIC re-deliberated its tentative agenda decisions published in the January 2010 IFRIC Update. IAS 21 The Effects of changes in Foreign Exchange Rates – Determination of functional currency of investment holding company The IFRIC confirmed the tentative agenda decision published in the January 2010 IFRIC Update subject to editorial changes presented in the agenda paper. IAS 32 Financial Instruments: Presentation – Debt/equity classification of instruments with obligation to deliver cash at the discretion of shareholders The IFRIC confirmed the tentative agenda decision published in the January 2010 IFRIC Update subject to minor editorial changes. The IFRIC also asked the staff to stay informed on the development of the Exposure Draft on Financial Instruments with Characteristics of Equity and whether the Board addresses this issue as part of that project. IAS 36 Impairment of Assets – Transition provisions for IFRS 8 amendment The IFRIC confirmed the tentative agenda decision published in the January 2010 IFRIC Update without any editorial changes. IAS 39 Financial Instruments Recognition and Measurement – Unit of account for forward contracts with volumetric optionality on non-financial items readily convertible to cash The IFRIC confirmed the tentative agenda decision published in the January 2010 IFRIC Update. 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 The IFRIC continued its discussion related to this issue from the January 2010 IFRIC meeting. Staff research found that the issue was not very common in practice. The IFRIC briefly discussed the possibility of capitalisation of costs that were recorded in other comprehensive income (OCI). Based on preliminary analysis most of the IFRIC members agreed that accounting policies related to recognising the item in profit or loss or in OCI should not drive the decision whether to capitalise. Nonetheless, most of the IFRIC members thought that other practical difficulties would prevent entities from capitalisation of items recognised in OCI. One IFRIC member noted that the issue is more prevalent in North America in relation to pension cost and expressed his preference for a more explicit guidance. Nonetheless, he acknowledged that the issue was more complex, as pension costs are capitalised in their entirety and not by components. Other IFRIC members noted, that materiality of the issue should also be considered. Finally, the IFRIC decided not to add the issue to its agenda as it did not expect widespread divergence in the practice. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – Reversal of disposal group impairment losses relating to goodwill The IFRIC discussed the request to consider the need for additional guidance on the recognition of reversal of disposal group impairment losses related to goodwill. In particular, the discussion focused on the differences between the requirements of IFRS 5 and IAS 36 and on the question whether the disposal group should be treated as a single asset or it was merely a group of individual assets and liabilities. IFRIC members held divergent views. Some preferred the alternative that impairment loss should not be reversed as this answer would be consistent with the rest of the literature (IAS 36) as well as with the answer under the U.S. GAAP. Other IFRIC members on the other hand thought that impairment loss reversal should be recognised as the disposal group is one asset and guidance in IAS 36 relates to allocation rather than recognition of the impairment reversal. One IFRIC member also noted that there are significant differences with the U.S. GAAP in scope of IFRS 5 and relevant Codification guidance and thus, in his opinion, a comparison with the answer under U.S. GAAP is not relevant when determining the proper accounting under IFRSs. Another IFRIC member expressed her concerns about the application of the conflicting guidance in the current economic environment. In her opinion, those unclear requirements might lead to abuse. Other IFRIC members noted that IFRS 5 is internally inconsistent and should be reviewed in its entirety. Moreover, in their opinion the issue was too significant for and interpretation or Annual Improvements process. Finally, IFRIC agreed with this reasoning. IFRIC decided not to add the issue to the agenda and, in light of the multiple submissions on IFRS 5, agreed to recommend that the Board to perform a full post-implementation review of IFRS 5. IAS 12 Income Taxes – Tax effect of distributions to equity holders The IFRIC was asked to clarify a conflict between IAS 12 Income Taxes and IAS 32 Financial Instruments: Presentation in respect of the accounting for income tax consequences of distributions to holders of equity instruments. The inconsistency results because IAS 12 generally requires the recognition of income tax consequence of dividends in profit or loss, whereas IAS 32 requires debiting the distribution directly to equity, net of any related income tax benefits. As part of the ED on Income tax issued in March 2009, the Board proposed a change to IAS 32 to resolve the issue. However, that proposal will not be carried forward to the Board's limited scope project on IAS 12. Although the IFRIC members agreed with the proposal to amendment IAS 32 to requirement accounting for income tax in accordance with IAS 12 through the annual improvements project, there was disagreement on the wording of the basis for conclusions accompanying the proposed amendment. Some members were concerned that the proposed wording would change the treatment of income tax related to all distributions. Another member was opposed to the proposed retrospective application of the amendment as it may be very complicated to determine. After a short discussion on the matter, the IFRIC tentatively agreed to propose an amendment to IAS 32 and IFRIC 2 to direct preparers to IAS 12 for income tax consequences as part of the ED on Annual Improvements to be issued later during the year. IFRIC also agreed to propose retrospective application in line with normal transitional requirements, but to include a specific question on the practicability of retrospective application in the ED. IAS 1 Presentation of Financial Statements – Comparative information The IFRIC became aware of diversity in views as to the requirements for comparative information when an entity provides individual financial statements beyond the minimum comparative information requirements of IAS 1. The IFRIC was asked whether the presentation of one or more prior period financial statements solely as part of compliance with regulatory requirements will trigger the need to provide all of the financial statements for that comparative period. All members expressed support for the view that only the minimum comparative periods are required for a complete set of financial statements under IFRSs. Therefore, if an entity decides to present a primary financial statement for a comparative period in excess of the minimum requirements, the only requirement in IFRSs is that it must be presented in compliance with the specific requirements for that individual statement. The IFRIC was then asked if an additional selected comparative financial statement is presented and an entity is required to present a third statement of financial position (in accordance with IAS 1.10(f)), what the appropriate date for that statement would be? For example, in the December 2009 financial statements, an entity has to provide comparative financial statements for 2008 as a minimum in accordance with IAS 1. If an entity then presents a statement of comprehensive income for 2007, would the date of opening statement of financial position be 1 January 2008 or 1 January 2007? Further to this, the IFRIC was also asked if the presentation of a 2007 statement of comprehensive income for regulatory purposes would require the entity to present four statements of financial position, that is, 31 December 2009, 2008, and 2007 and 1 January 2007? A majority of IFRIC members agreed that the 'beginning of the earliest comparative period' must be read in context of the minimum requirements within IFRSs. Therefore, in the example above, the beginning of the earliest comparative period will be 1 January 2008, with no statement of financial position required as at the end of 2007. The IFRIC noted that the Board will be discussing the matter at its meeting on 11 March. Therefore, IFRIC should not reach a conclusion until the Board has deliberated the matter. IFRIC will consider the matter again in May. Annual Improvements – 2008-2010 Cycle Comment letter analysis on minor issues The IFRIC considered the comment letters received to the proposed amendments to IFRS 1 related to 'Accounting policy changes in the year of adoption', to IAS 27 related to 'Transition requirements for amendments made as result of IAS 27 (2008) to IAS 21, IAS 28 and IAS 31' and to IFRIC 13 related to the 'Fair value of award credit'. As a majority of the comments was supportive with only minor editorial comments, the IFRIC recommended to the Board to finalise the amendments subject to editorial drafting suggestions. Unreplaced and voluntarily replaced share-based payment transactions (IFRS 3) The comment letters received on the proposed amendments to IFRS 3 related unreplaced and voluntarily replaced shared-based payment transactions were mostly supportive. The IFRIC decided to simplify paragraph B56 of IFRS 3, as the distinction between voluntary and obligatory replacement was no longer relevant. The IFRIC also clarified that the transition provision requirements should apply prospectively from the date the entity first applied IFRS (2008). After a brief discussion, the IFRIC expanded the basis for conclusions to explain the distinction between the accounting treatments for share-based payment transactions that expire as a result of a business combination and those that don't expire when replacement is voluntary. The IFRIC considered a suggestion of one constituent to provide additional guidance for the cases where the replacement value is lower than the original market-based measure allocated to pre-combination. Nonetheless, the IFRIC members agreed that such guidance would not be in scope of the Annual Improvement project and, therefore, should be left for the planned post-implementation review of IFRS 2. One IFRIC member suggested that the guidance should be clarified for modifications as well and not only for replacement share-based payment transactions and raised other related issues. In response, the IFRIC chairman responded that as those suggestions were not exposed in the due process, they could not be included in the 2008-2010 Annual Improvements cycle. The IFRIC asked the staff to look at those issues and consider whether they should be addressed separately (as future annual improvements) or included in the planned post-implementation review of IFRS 2. On that basis, the IFRIC recommended to the Board to finalise the amendments subject to editorial drafting suggestions. Measurement of non-controlling interest (NCI) (IFRS 3) The IFRIC considered including illustrative examples related to the amendments to IFRS 3 to clarify that the option to measure NCI at the proportionate share of the acquiree's identifiable net assets should be applied only to those NCI components that are present ownership instruments and entitle their holders to a pro-rata share on the entity's net assets (as clarified at the January 2010 IFRIC meeting). The IFRIC agreed with including of illustrative examples related to treatment of preference shares and share options. Nonetheless, a few IFRIC members expressed concerns about the calculation of the proportionate share of the identifiable assets in relation to preference shares and possibility of allocation of goodwill to ordinary and preference shareholders. The IFRIC concluded that the issue whether goodwill could be attributed to individual shareholders is beyond the Annual Improvements project and therefore the examples should be limited to illustrating the decision itself (and not reflect the measurement of the full double entry). As the IFRIC Chairman noted these issues relate to the choice of NCI measurement that was included in IFRS (2008) that was not fully reflected in the rest of the Standard that was conceptually written without this measurement choice. In addition, the IFRIC agreed that the example illustrating share options should be limited to vested share options as there are further complications connected with vested conditions (part of it relates to non-controlling interest and part to future compensations cost). On that basis, the IFRIC recommended to the Board to include these illustrative examples in the amendments. Application of IFRS 5 to loss of significant influence over an associate or a jointly controlled entity (IFRS 5) The IFRIC considered application of IFRS 5 to loss of significant influence over an associate or jointly-controlled entity. The staff noted that, in February, the IASB tentative decided that the term 'significant economic event' would be limited to loss of control (and not relate to loss of significant influence over an associate and jointly controlled entity. Therefore, the proposed amendment of IFRS 5 is no longer relevant. The majority of IFRIC members were concerned with this decision of the Board and expressed their view that the accounting could be difficult to understand. In the view of many IFRIC members, the 'old logic' reflected in the original proposed amendment was articulated more clearly than the new reasoning related to the borders of the entity. The IFRIC members agreed to ask the Board to explicitly consider, in the Board's deliberation of ED 9 Joint Arrangements, the implications of the Board's decision to change the definition of significant economic event on IFRS 5 and to provide consistent answers in ED 9 and IFRS 5. Change in terminology to the qualitative characteristics (IAS 8) The IFRIC considered the comment letters received to the proposed amendments to IAS 8 related to changes of terminology reflecting the changes in the Framework. Most of constituents were concerned that the changes to IAS 8 were proposed before the Qualitative Characteristics chapter of the Framework is published. The IFRIC members reiterated those concerns. After a short debate the IFRIC recommended to the Board to finalise the amendments and issue them in the Annual Improvement 2008-2010 cycle in case the Qualitative Characteristics chapter of the Framework is issued before Annual Improvements publication in April 2010. Change from the fair value model to the cost model for investment property (IAS 40) The IFRIC considered the comment letters received to the proposed amendments to IAS 40 related to changes from fair value model to cost model. As most of the commentators felt that the issue was too broad to be addressed in the Annual Improvements process and the technical arguments presented by constituents were narrowly split, the IFRIC – without discussing the technical merits of the proposal – decided to recommend that the Board include this issue on the Board's list of future projects and remove the issue from the Annual Improvement project. Partial use of fair value for measurement of associates (IAS 28) The staff informed the IFRIC about the decision of the IASB at the February meeting to include this amendment to IAS 28 as part of the final IFRS on Joint Ventures (and consequential amendments to IAS 28) to avoid the potential confusion of two successive changes related to the same issue (with different effective dates). Annual Improvements 2009 – 2011 Cycle Hard-wire dates (IFRS 1) The IFRIC discussed an exception that IFRS 1 provides from full retrospective application of the requirements for derecognition of financial assets and financial liabilities in IAS 39 for transactions before 1 January 2004. One of the IFRIC members agreed with the staff that exception was introduced to the Standard due to effective date of IAS 39 and was originally not intended as a stand-alone exception in IFRS 1. Therefore, she noted that any such exception would endanger the consistency of the transition balance sheet. Other IFRIC members disagreed. In their view, extending the exemption, for instance, to the date of one year before the date of transition would be a practical accommodation similar to the one was applicable for Europe in 2005 and would, at the same time, avoid potential abuse. Some IFRIC members agreed that the exemption is conceptually wrong but noted that, practically, not providing it would make it very burdensome for first-time adopters, and IFRS 1 was developed to facilitate the transition. One IFRIC member asked if the exemption was needed at all and what would be the consequences of the repeal of this exemption. Another IFRIC member suggested another approach that would recognise only assets at the date of transition (no 'stickiness'). Several IFRIC members were concerned what the answer would be under the new derecognition guidance. As such any amendment would be applicable only for entities not applying the new guidance (that is, for an interim period of two to three years). Finally, the IFRIC agreed that more research of the issue was warranted and asked the staff to consult the derecognition project team. In addition the IFRIC agreed to consult the national standard setters on the differences with local GAAPs as well as practical experiences with application of the exemption. Accounting for contingent consideration for business combinations that occurred prior to the date of IFRS 3(2008) for first-time adopters (IFRS 3) The IFRIC discussed potential amendment of IFRS 3 to clarify accounting treatment for contingent consideration from a business combination that occurred before the effective date of IFRS 3(2008) for first time adopters. Without much discussion the IFRIC agreed not to provide any additional relief to the first-time adopters in this respect as that would go against the principles of IFRS 3(2008). The IFRIC agreed that the current accounting treatment (any outstanding contingent consideration balance at transition date is a financial asset or liability recognised at fair value with corresponding adjustment to opening retained earnings) does not require use of hindsight. Therefore the IFRIC decided not to proceed with this issue in the Annual Improvements process. Scope of IFRS 8 The IFRIC discussed a potential clarification of the applicability of IFRS 8 to entities that issue debt and equity instruments to the public, but those instruments are not traded on a 'public market'. In a brief discussion, most of the IFRIC members agreed that the current IFRS 8 scope requirements are clear and well understood and thus there is a limited diversity in practice. Moreover, they agreed that the potential widening of the applicability of IFRS 8 to entities with public accountability is outside of scope of Annual Improvement process and should be addressed by the Board as part of the post-implementation review of IFRS 8. This reasoning was supported also by the Basis for Conclusions of the IFRS 8, which suggests that the Board planned reconsideration of applicability of IFRS 8 to other entities when the SME Standard is finalised. 'CTA' recycling in IAS 27 (revised) transactions (IAS 21) The IFRIC held an initial discussion on whether the separate foreign currency equity reserve related to the translation of the net assets of an investor's net investment in a subsidiary (often referred to as the cumulative translation adjustment, or 'CTA') should be recycled and if so, when such recycling is appropriate. The discussion focussed on whether the recycling should apply for transaction in which there is a reduction in proportionate (relative) equity ownership in a foreign operation or in absolute interest (for example, pro-rata repayment of capital to all equity holders). One IFRIC member noted that there are two connected issues: what is the disposal and partial disposal and what are the principles connected to recycling connected to disposal and partial disposal. In his opinion this is a broad issue that is unlikely to be an Annual Improvement project but rather an interpretation. Another IFRIC member agreed and noted that the current practical application of the guidance would limit recycling to cases when the investor actively participated in the transaction (that is, there would be no recycling of CTA if there was a deemed disposition, e.g. because the investor's interest was diluted by a transaction in which it did not participate). Several IFRIC members expressed their conceptual preference for the absolute interest view, but some expressed unease for developing an interpretation related to recycling, as this is a concept the Board does not support. In response, another IFRIC member noted that as the Board did not address recycling as part of the Financial Statement Presentation project, interpretation related to CTA recycling might be necessary. Some IFRIC members, on the other hand, noted that the issue might be too broad for an Interpretation. The IFRIC did not make any decision and will continue to consider this issue at the May IFRIC meeting. Presentation of retirement benefit plan investments (IAS 26) The IFRIC considered a clarification of presentation of changes in the fair value of plan assets, as in view of some constituents there is an inconsistency between IAS 26 (present those changes in the statement of changes in net assets available for benefits) and IAS 39 (present them in profit or loss or in OCI depending on classification of the assets). The IFRIC agreed that the guidance is clear, and IAS 26 provides a complete guidance on the recognition, measurement, presentation, and disclosure of plan assets in the financial statements of retirement benefit plans and thus classification of these assets in accordance with IAS 39 would be inappropriate. The IFRIC disagreed with any comprehensive scope exemption of those assets from IAS 39/IAS 32 or IFRS 7 as it believed that some guidance that does not conflict with IAS 26 requirements but complements it would be useful (for example, fair value measurement). The IFRIC thus decided not to proceed with annual improvement and publish an agenda decision. Consistency in disclosure of total segment assets (IFRS 8 and IAS 34) The IFRIC discussed the potential conflict between IFRS 8 and IAS 34. Some constituents read the IAS 34 requirement to provide a measure of segment assets in interim financial statements even if that amount was not provided to the chief operating decision maker. The IFRIC members disagreed with this interpretation of IAS 34 requirements and noted that IAS 34 should be an update on a set of annual financial statements. They argued that when no measure of total assets is provided in the annual financial statement, interim financial statements need not provide an update. Nonetheless, the IFRIC agreed that wording of IAS 34 could be clarified in that respect. In addition, the IFRIC agreed to clarify the IAS 34 requirements to require an update of total assets in the interim financial statements only for those segments for which the measure of total asset change since the annual financial statements were published (and not all segments). Administrative Session – IFRIC work in progress The IFRIC coordinator gave a brief update on the progress of IFRIC activities. Apart from issues already discussed at the March meeting, he identified several issues that were currently being analysed and would be presented to the IFRIC at the May meeting. Those include: IFRS 3: Non-controlling interest puts. IAS 29: Financial reporting after a period of chronic hyperinflation. Criteria for annual improvements The IFRIC considered the criteria for assessing issues for inclusion within the Annual Improvements process. The IFRIC agreed to retain the IASB's current criteria, which are 'non-urgent but necessary amendment to IFRSs', but suggested clarifying the interaction between criteria for Interpretation and Annual Improvements. The IFRIC agreed with a suggestion that the Annual Improvement process should be used when the change of wording of the Standard is necessary but such changes do not change the principle in the Standard or develop a new principle. Some IFRIC members were concerned that the criteria proposed by the staff were too similar to the IFRIC's Interpretation criteria and did not reflect the abovementioned reasoning. Moreover, some IFRIC members noted that the proposed criteria might be internally inconsistent and should be clarified. The IFRIC will continue to consider this discussion at its next meeting. This summary is based on notes taken by observers at the IFRIC meeting and should not be regarded as an official or final summary.

5 March 2010: IFRS for SMEs in your Pocket - UK version

Deloitte United Kingdom has published the UK edition of IFRS for SMEs in your Pocket (PDF 273k). This 88-page guide to the IFRS for SMEs is similar to Deloitte's very popular IFRSs in your Pocket guide to full IFRSs. This pocket guide is based on an international version* produced by Deloitte's IFRS Global Office. IFRS for SMEs in your Pocket takes each section of the IFRS for SMEs, summarises its requirements, and highlights differences with full IFRS requirements. Additional guidance describing application of the IFRS for SMEs in the UK is added in shaded text. The IFRS for SMEs is particularly relevant in the United Kingdom because the Accounting Standards Board (ASB) has proposed that the IFRS for SMEs should replace UK Financial Reporting Standards. Specifically, the ASB has proposed a three-tier approach to developing UK GAAP converged with IFRSs as follows: Tier 1 – publicly accountable entities would apply IFRSs as adopted by the EU. Tier 2 – all other UK entities, except those that elect to apply the Financial Reporting Standard for Smaller Entities (FRSSE), would apply the IFRS for SMEs. Tier 3 – small entities could choose to continue to apply the FRSSE if they do not exceed two or more of the following criteria: turnover £6,500,000; balance sheet total £3,260,000; and average number of employees 50. Entities in Tier 2 and Tier 3 would have the option of using EU-adopted IFRSs if they wished, and those in Tier 3 would have the option of using the IFRS for SMEs. *Not yet available on IAS Plus. We expect to post it shortly.

5 March 2010: Venezuela has adopted the IFRS for SMEs

The Federación de Colegios de Contadores Públicos de Venezuela (FCCPV, the professional accountancy organisation in Venezuela) has adopted the IFRS for SMEs for all SMEs in Venezuela. Use of the IFRS for SMEs is voluntary for financial statements for the year ending 31 December 2010, and will become mandatory for the year ending 31 December 2011. Here is the FCCPV Website (in Spanish).

5 March 2010: Editorial corrections to IFRSs

The IASB has posted some Editorial Corrections to IFRSs.

4 March 2010: Constitution changes take effect

At their meeting in Brazil on 26 and 27 January 2010, the Trustees of the IASC Foundation approved changes to the Foundation's Constitution. Those changes took effect on 1 March 2010. Click here for Details of the Various Constitution Changes. One of the changes was to rename three groups in the organisation to be more closely aligned with the standards (IFRSs), as follows: The IASC Foundation has become the IFRS Foundation The International Financial Reporting Interpretations Committee is now the IFRS Interpretations Committee The Standards Advisory Council is now the IFRS Advisory Council These name changes will have a pervasive affect on IAS Plus and will be introduced in due course.

4 March 2010: International standards crucial to investors and financial stability

The International Federation of Accountants (IFAC) has published its Third Annual Global Leadership Survey. More than 110 presidents and chief executive officers from IFAC's member bodies, associates, and regional accountancy organisations participated in the survey. Those global leaders of the profession felt that the adoption, implementation, and enforcement of international financial standards is crucial to investor protection and financial stability. Here are a few excerpts relevant to international standards: Looking forward, respondents identified a number of areas they expect to be of growing interest to the accountancy profession, including addressing the needs of SMEs and the role of SMPs, progressing corporate social responsibility, including sustainability, transitioning to International Standards on Auditing (ISAs), and dealing with a changing regulatory landscape. Respondents believe that it is very important for IFAC to influence the way the world feels about the standards and practices used by the accountancy profession. In particular, nearly all respondents (98%) believe that it is 'Very important' or 'Important' for IFAC to influence confidence in international standards, as well as their adoption, implementation, and enforcement (of IFAC-published standards and International Financial Reporting Standards [IFRSs]). In the coming three years, respondents believe that it will be important for IFAC to continue to influence the outcomes relating to international standards. The effective implementation of IFRS for SMEs, issued by the International Accounting Standards Board (IASB), was selected as an area where IFAC should increase its influence. The Global Leadership Survey Report is copyrighted by IFAC and posted on IAS Plus with IFAC's kind permission. Click for: Global Leadership Survey Report (PDF 679k) IFAC Press Release (PDF 26k) IFAC Web Page with Policy Position Papers and Reports

4 March 2010: Japan 'designates' additional IFRSs

In our News Story of 31 Jan 2010, we reported that the Financial Services Agency (FSA) of Japan proposed to update the list of IFRSs designated for use by companies voluntarily applying IFRSs in Japan to include the following IFRSs: IFRS 1 First-time Adoption of International Financial Reporting Standards (amendment) IAS 32 Financial Instruments: Presentation (amendment) IAS 24 Related Party Disclosures (amendment) IFRS 9 Financial Instruments IFRIC 14 IAS 19–The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (amendment) IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments The FSA has now finalised that proposal. Click to downloaded the FSA Press Release (English version) (PDF 27k). Ordinances that FSA adopted on 11 December 2009 (see IAS Plus News Story allow Japanese listed companies that meet certain requirements to apply voluntarily, starting in financial years ending on or after 31 March 2010, IFRSs designated by the Commissioner of the FSA through public notice.

4 March 2010: Notes from Special 3 March 2010 IASB-FASB meeting

The IASB and FASB held a special joint meeting at the IASB's offices in London on Wednesday 3 March 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting. Another special joint meeting will be held on 11 March 2010. The IASB's regular March Board meeting will be held on 15-19 March 2010.

4 March 2010: IFRS for SMEs resources on IASB website

In addition to making the complete IFRS for SMEs (including implementation guidance and basis for conclusions) available for free download from its website, the IASB has recently posted additional no-charge IFRS for SMEs resources. Links are below. We also have Permanent Links on our IFRS for SMEs page. Complete IFRS for SMEs: http://go.iasb.org/IFRSforSMEs. Currently available in English, Spanish, Italian, and Romanian. Comprehensive self-study training materials: http://go.iasb.org/smetraining. One module for each of the 35 sections of the IFRS for SMEs. Currently, 17 modules available. 3-day train-the-trainers workshops: http://www.iasb.org/Conferences+and+Workshops/IFRS+for+SMEs+Train+the+trainer+workshops.htm. Several workshops already held, others scheduled. Training presentations: http://www.iasb.org/Conferences+and+Workshops/IFRS+for+SMEs+Train+the+trainer+workshops.htm. PDFs of the 20 PowerPoint presentations used at the train-the-trainers workshops. Subscribe to IFRS for SMEs Alert: http://www.iasb.org/IASB+Registration.htm

3 March 2010: Accounting Roundup – February 2010

We have posted the February 2010 Edition of Accounting Roundup (PDF 299k) 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: Consolidations FASB Issues ASU to Defer Statement 167 for Certain Investment Funds Income Taxes IRS Proposes Requiring Certain Taxpayers to Report Uncertain Tax Positions Subsequent Events FASB Finalizes ASU on Subsequent Events Other Accounting AICPA, FAF, and NASBA Announce Members of 'Blue-Ribbon Panel' to Address Standards for Private Companies FAF Appoints New Board Trustee FAF to Maintain XBRL Taxonomy for U.S. GAAP FASB Issues ASU Containing Technical Corrections to Various Codification Topics SEC Matters SEC Issues Final Rules SEC to Hold Seminar to Help Companies Comply With XBRL Reporting Rules SEC Issues Technical Corrections to Proxy Disclosure Enhancements SEC Issues C&DIs Related to Regulation S-K and Form 8-K SEC Issues Interpretive Guidance on Disclosures Related to Climate Change Other Auditing PCAOB Issues Staff Guidance on Auditing Standard 7 ASB Issues Various Statements on Auditing Standards ASB Issues Proposed Statements on Auditing Standards GASB Matters GASB Proposes to Enhance Codification for Constituent Other International SEC Publishes Work Plan for Moving Forward With IFRSs for U.S. Issuers IASC Foundation Proposes IFRS Taxonomy 2010 New Members Appointed to the IASB You will find past issues of Accounting Roundup Here.

3 March 2010: IVSC guidance note on intangibles

The International Valuation Standards Council has published an updated Guidance Note 4 on the valuation of intangible assets. The revised GN 4 identifies the principal techniques that are recognised for the valuation of intangible assets such as brands, intellectual property, and customer relationships, and gives guidance on how these are applied. Click for IVSC Press Release (PDF 14k), which include a link to download GN 4.

3 March 2010: Insurance accounting newsletter in German

Deloitte (United Kingdom) is publishing a series of Insurance Accounting Newsletters. We post these regularly on our IAS Plus Insurance Project Page. Deloitte (Germany) is translating selected insurance newsletters into German. The latest is: Versicherungsbilanzierung 6: Der Weg zur Harmonisierung (PDF 365k) Translation of UK Issue 11: Road to Convergence (PDF 105k) All of the earlier insurance newsletters available in German are on our Germany Country Page.

3 March 2010: Additional IFRS for SMEs training modules

The IASC Foundation has published the second batch of training material for the IFRS for Small and Medium-sized Entities (IFRS for SMEs). There will be one training module for each of the 35 sections of the IFRS for SMEs. To date 17 modules have been posted. The remaining modules will be published in the course of this year as it is completed. Click for Press Release (PDF 141k). The training material, which is free of charge, can be Downloaded Here

2 March 2010: Our views on Management Commentary ED

Deloitte Touche Tohmatsu has submitted to the IASB our Letter of Comment (25k) on Exposure Draft 2009/6: Management Commentary. The ED, issued on 23 June 2009, proposes non-mandatory guidance for preparing and presenting a 'management commentary' – sometimes called 'management's discussion and analysis' or 'operating and financial review'. We support finalising the ED as a guidance document: We believe that management commentary is an important element of financial reporting and provides decision-useful information to the users. The recent financial crisis has highlighted that users benefit from explanatory information in addition to the financial statements which helps evaluate an entity's financial position, financial performance and cash flows. We are supportive of the Board establishing high-level principles to facilitate comparability amongst entities reporting under IFRSs and to enhance the usefulness of their financial reporting. We agree with the IASB that the status of any final document should be that of non-mandatory guidance. However, for the avoidance of any doubt, we suggest that the IASB should clarify that an entity's ability to claim compliance with IFRS in its financial statements does not depend on following this non-mandatory guidance on management commentary (BC 46 of the ED could imply otherwise). Accordingly, we support issuance of the ED as a final guidance document, with some clarifications noted below. Given the very high-level nature of the guidance, there may be requests for providing further guidance with respect to management commentary. In view of the Board's current agenda, we believe the Board should resist such requests in the near term and only consider such requests in the future in coordination with regulators around the world tasked with oversight over financial reports provided to investors. All of our past letters of comment to IASB, IFRIC, IASCF, IASC, and SIC are Here. Click here to go to our Management Commentary Project Page.

2 March 2010: Deloitte UK iGAAP Newsletter

We have added a new resource on IAS Plus – the iGAAP Newsletter published quarterly by Deloitte (United Kingdom). This newsletter covers the activities of the IASB and the UK Accounting Standards Board (ASB). Each issue has a special theme. For example, the December 2009 issue focuses on the IFRS for SMEs and the future of UK GAAP. In addition, in each issue there are updates on the activities of the IASB and the ASB, project timetables for both boards, links to new Deloitte publications, an interview of someone involved with IFRSs, and a table showing IFRSs issued but not yet effective or endorsed by the European Union. iGAAP Newsletter December 2009 (PDF 199k) iGAAP Newsletter September 2009 (PDF 189k) iGAAP Newsletter June 2009 (PDF 175k) iGAAP Newsletter March 2009 (PDF 194k) iGAAP Newsletter December 2008 (PDF 415k) We have put permanent links on our United Kingdom Country Page.

2 March 2010: IFRS for SMEs in Cambodia

In Cambodia, both the Company Law and the Accounting Law require all companies to prepare annual financial statements, and large companies are required to be audited. In January 2009, the National Accounting Council (NAC) of the Ministry of Economy and Finance of Cambodia adopted full IFRSs as issued by the IASB. The NAC has now made the IFRS for SMEs an option for all companies in Cambodia except for 'public interest entities' (financial institutions, publicly traded entities, and large entities), which must use full IFRSs.

2 March 2010: IASB webcast on IAS 37 replacement

The IASB will host a live webcast on the project to replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as follows: Webcast Topic: IASB project to replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets Date and Time: Wednesday, 3 March 2010 at 10:00am London time and repeated at 3:00pm London time Host: Robert Garnett, IASB member, and Joan Brown, IASB project manager More Information and Registration: Click Here

1 March 2010: Deloitte IFRS training – power and utility

Deloitte (United States) has organised a three-day IFRS training program specifically designed for Power and Utility companies to learn about key accounting issues and practical considerations related to IFRS implementation. The event will take place 17-19 May 2010 in Chicago, Illinois USA. Topics will include: Current IFRS landscape Environmental Issues: Emissions and RECS Regulatory accounting Inventory Employee benefits and share-based payments Business combinations Income taxes and tax implications when converting to IFRS Contingencies Decommissioning provisions and asset retirement obligations Financial instruments, derivatives, hedging and investments Consolidation, associates and joint ventures Long-lived assets and impairments Intangible assets and leasing First-time adoption and financial statement presentation IFRS adoption: Steps to implementation and downstream implications Regulatory reporting This workshop will be led by utility specialists from Deloitte's Financial Accounting & Reporting Services practice that have experience with IFRSs and will focus on specific areas for utility companies to consider as they assess their implementation and transition requirements. The session is appropriate for financial management and accounting personnel of utility companies. Click here for More Information On Line. Here is the Workshop Brochure (PDF 646k).

1 March 2010: Deadline reminder – management commentary

We remind you that comments are due today (1 March 2010) on Exposure Draft (ED): Management Commentary. The ED was issued on 23 June 2009. The ED proposes non-mandatory guidance for preparing and presenting a 'management commentary' – sometimes called 'management's discussion and analysis' or 'operating and financial review'. [Apologies for this late reminder.]

1 March 2010: IFRS for SMEs in Botswana

A Resolution on the IFRS for SMEs (PDF 65k) adopted by the Council of the Botswana Institute of Accountants (BIA) estimates that the IFRS for SMEs will become the basis of financial reporting by more than 90% of the companies in Botswana. The resolution states: In July 2009, the International Accounting Standards Board (IASB) finally issued the long awaited IFRS for SMEs. This standard takes immediate effect. Without doubt this is a welcome development in the profession in Botswana especially in view of the fact that Botswana has legislated compliance with full IFRS through the Companies Act 2003. The SMEs standard will significantly reduce the compliance burden for companies in Botswana and it is going to be the reporting framework for more than 90% of the companies in Botswana. Under the resolution: Public companies must use full IFRSs. Private companies with assets greater than P5,000,000 (about US$700,000) or turnover greater than P10,000,000 (about US$1,400,000) must use full IFRSs. Public Interest Entities (PIE) as defined by BIA must use full IFRSs. These are: An entity that takes deposits or loans from the public except in circumstances incidental to its primary business. An entity that offers its shares or debt to the public. An entity that is a Parastatal or other non Government organisation that is funded by Government through a subvention or a similar form of funding arrangement. An entity that holds assets in a fiduciary capacity for a broad group of outsiders, such as a bank, insurance company, securities broker/dealer, pension fund, mutual fund or investment banking entity except in circumstances incidental to its primary business. An entity that is economically significant in Botswana (quantitative guidelines are provided, including greater than 100 employees). All other entities may apply the IFRS for SMEs except where the entities are required by legal provisions or other regulations to comply with a specific financial reporting framework other than the IFRS for SMEs.