30 November 2010: We comment on proposals to amend the Due Process Handbook
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Deloitte has submitted a comment letter on the IFRS Foundation Trustees’ Invitation to Comment, The Annual Improvements Process: Proposals to amend the Due Process Handbook for the IASB.
We support the efforts to enhance the process for making improvements to IFRSs, including amendments to IFRSs to clarify guidance and wording or to correct unintended consequences, conflicts or oversights. We think that the
criteria proposed in the Consultation Document are appropriate when identifying discrete issues in IFRSs that need to be resolved. However, we recommend that the remit of the IFRS Interpretations Committee be broadened so it can prepare draft amendments to IFRSs (including Implementation Guidance) to help ensure that urgent or emerging accounting
issues are identified and addressed in a timely and efficient manner. Click to
Download our Comment Letter (PDF 57k). All of our past comment letters are here.
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30 November 2010: French translation of our IFRS in Focus newsletter on revisions to IFRS 9
30 November 2010: Deloitte newsletter on IFRSs in Canada
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The November edition of Deloitte Canada's IFRS newsletter Countdown has been issued. This edition focuses on:
- Lease accounting: IASB's Exposure Draft may significantly change the financial reporting of leases
- IFRS 1 review prior to transition to IFRSs
- An update on Canadian and international standard setting activities
Click here to download the November 2010 edition of Countdown (PDF 729k). A French translation is also available (PDF 1,307k). Click here to visit our Canada country page. |
30 November 2010: We comment on Draft IFRIC Interpretation DI/2010/1
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Deloitte has submitted a comment letter on
Draft IFRIC Interpretation DI/2010/1 Stripping Costs in the Production
Phase of a Surface Mine. The IFRS Interpretations Committee
has reached the conclusion that costs associated with a ‘stripping campaign’ should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign.
We do not support the finalisation of this draft Interpretation. Much of the current apparent diversity in practice tends to be due to the underlying physical differences in mines and we are not convinced that the current practice produces results that are sufficiently inappropriate to warrant the publication of a final interpretation. We are also concerned about the Committee attempting to address specific issues on extractive activities on a piecemeal basis rather than through the IASB project. Click to
Download our Comment Letter (PDF 90k). All of our past comment letters are
here.
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30 November 2010: Updated convergence report and IASB work plan
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The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have published an updated Progress report on their convergence efforts.
The report provides an update on progress under the Memorandum of Understanding between the IASB and FASB on the convergence of IFRSs and US generally accepted accounting principles (US GAAP) and confirms many of the decisions made at recent meetings of the boards.
The report confirms a target completion date of June 2011 or earlier for the following priority projects:
- joint projects on financial instruments, revenue recognition, leases, the presentation of other comprehensive income, and fair value measurement
- IASB projects on consolidation and insurance contracts.
In order to meet the June 2011 deadline, consideration of a number of other projects has been deferred until after June 2011, or timetables extended. This includes four joint projects, the investment company aspects of the consolidation project, and a number of independent projects of both boards.
The IASB has updated its Work Plan to reflect the above changes and provide more detail of the expected timing of pronouncements. A summary of the expected timing under the revised work plan is provided below (all pronouncements are finalised standards, unless otherwise noted):
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Pronouncements expected by the end of calendar 2010
Pronouncements expected in the first quarter of 2011
Pronouncements expected in the second quarter of 2011
Projects deferred to after June 2011
- Joint projects deferred as noted in the progress report - financial statement presentation (comprehensive project), financial statements with characteristics of equity, emissions trading schemes, conceptual framework (reporting entity)
- Other projects - liabilities (replacement for IAS 37), income taxes, rate-regulated activities, extractive activities, common control, earnings per share, government grants and intangible assets.
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Click for:
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29 November 2010: IFRS Foundation's translations update
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The IFRS Foundation has announced the publication of the following translations:
- Armenian and Simplified Chinese translations of the IFRS for SMEs. The translations can be accessed via the
IASB's IFRS for SMEs webpage. You will need to be a registered user to access the translation.
Registration is free of charge.
- Japanese translation of the Request for Views on Effective Dates and Transition Methods that was published in English by the IASB in October
2010. The Request for Views in English, French and Japanese can be accessed
here.
- Japanese translation of the Staff Draft of Exposure Draft IFRS X: Financial Statement Presentation that was published in English by the IASB on 1 July 2010. The Staff Draft can be accessed via the
IASB's Staff Draft webpage.
- Japanese translation of A Briefing for Chief Executives, Audit Committees
& Boards of Directors 2010 that was published in English by the IASB in August 2010.
Available for free for
eIFRS
subscribers, available to purchase from the
IASB's web shop.
- Spanish translations of Disclosures—Transfers of Financial Assets (Amendments to IFRS 7) and the Conceptual Framework for Financial Reporting 2010, on the
IASB's New and revised standards webpage (eIFRS subscribers only).
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29 November 2010: Canadian regulator provides first-time adoption tips
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The Ontario Securities Commission (OSC) of Canada has published Top 10 Tips for Public Companies Filing Their First IFRS Interim Financial Report. With Canada transitioning to IFRS from 2011, the guide is designed as a series of pointers for Canadian public companies to consider in preparing for the transition. Many of the ideas are generic and may be useful to first-time adopters in other jurisdictions as well.
An summary of the tips provided in the guide are outlined below:
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Top 10 tips for public companies filing their first IFRS interim financial report
- Changes to acceptable accounting principles - clearly identifying accounting principles used in all financial information released
- Auditor involvement with regulatory filings - ensure that the financial information released in the first three quarters of 2011 is accurate and will not require restatement after the annual audit
- Q1 filing extension for first time IFRS filers - extended by 30 days for the first quarter only
- Consequences of missing financial statement filing deadlines - represents a significant breach of Canadian securities law
- IFRS financial statement presentation - impact on continuous disclosure rules
- Key financial statement notes in the first IFRS interim financial report - should contain sufficient information to enable investors to understand how the transition to IFRS affected previously reported results
- Required reconciliations under IFRS 1 - including examples
- Management's discussion and analysis (MD&A) - whether changes in reported results are caused by the adoption of different accounting policies or from changes in underlying business activities
- CEO/CFO certification - impacts on standard formats
- Prospectus and other offering issues - changes to acceptable accounting principles, auditor involvement with offer documents, and IFRS financial statement presentation in offer documents.
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Click for:
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28 November 2010: IFRS compliance questionnaire for 2010
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Deloitte's IFRS Global Office has published our IFRS Compliance Questionnaire for 2010. This 329-page questionnaire
summarises the recognition and measurement requirements in IFRSs issued on or before 30 September 2010. It may be used to assist in considering
compliance with those pronouncements. It is not a substitute for your understanding of such pronouncements and the exercise of your judgment.
Users of the questionnaire are presumed to have a thorough understanding of the pronouncements and should refer to the text of the
pronouncements, as necessary, in considering particular items in this questionnaire. The items in this questionnaire are referenced to the
applicable sections of the IFRSs. Click to download:
A PDF version of this questionnaire will be available in a few weeks. There is a permanent link on our
Model
Financial Statements Page.
| This questionnaire does not address the requirements of IFRSs as regards presentation and disclosure – please refer
to Deloitte's separate IFRS Presentation and Disclosure Checklist for 2010.
This questionnaire is suitable for use in assessing recognition and measurement in financial statements prepared in accordance
with IFRSs for periods beginning on 1 January 2010. It is not generally appropriate for use for earlier accounting periods – please
refer to previous versions of this questionnaire on our
Model Financial Statements Page.
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26 November 2010: Trustees extend comment period for strategy review
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On 5 November, the Trustees of the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB),
published a first-stage consultation document designed to solicit input on the strategy of the IFRS Foundation as it enters its
second decade. Comments were originally expected until 31 December (see our prior
news
story on this issue).
Today, the IFRS Foundation Trustees extended the deadline for comments on their public consultation paper on the
strategy review they are undertaking. The new deadline is 24 February 2011. The extension responds to requests from
stakeholders for more time to consider and respond to the questions raised in the paper.
Click for:
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26 November 2010: Japanese translation of our IFRIC Review newsletter
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Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation of the November edition of IFRIC Review (PDF 221k), which summarises the meeting of the IFRS Interpretations Committee on 4-5 November 2010.
Click for:
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26 November 2010: We comment on ED/2010/12
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Deloitte has submitted a comment letter on Exposure Draft
ED/2010/12 Severe Hyperinflation – Proposed Amendments to IFRS 1. The amendment proposes guidance on how an
entity should resume presenting financial statements in accordance with International Financial Reporting Standards (IFRSs)
after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe
hyperinflation. According to the proposed amendment an entity that has been subject to severe hyperinflation would be allowed
to measure assets and liabilities at fair value and use that fair value as the deemed cost of those assets and liabilities in
the opening IFRS statement of financial position.
Although we do not object to the proposed amendments, we would have preferred the Board not to take up this narrow
issue given the Board's time and agenda. Since there seem to be many more issues that we believe should be addressed, we
recommend consideration of a comprehensive review of IAS 29 post-2011 (see excerpt below). Click to
Download our Comment Letter (PDF 10k). All of our past comment letters are
here.
We would have preferred the Board not to take up this narrow that is relevant only for
a particular jurisdiction at a time when the Board is under tremendous pressure to complete many of its major projects by
June 2011. [...] Our experience indicates that jurisdictions are struggling with applying many aspects of IAS 29
Financial Reporting in Hyperinflationary Economies in its current form. Therefore, we recommend that the Board
considers including a comprehensive review of IAS 29 in its post-2011 agenda. |
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25 November 2010: Stay Tuned Online – IFRS and UK GAAP update
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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 November 2010 webcast:
- The future of UK GAAP and other developments
- ED/2010/9 Leases
- BIS and narrative reporting
- Other IFRS developments
To access the recording click
here. There is a permanent link on our
UK Country Page.
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25 November 2010: New financial market supervision system signed into law
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In our news story posted 7 September we reported that the European
Parliament, the Council and the European Commission reached a political consensus on the creation of new financial
supervisory framework for Europe.
Yesterday, the President of the European Parliament, Jerzy Buzek, and Belgium's State Secretary for European
Affairs, Olivier Chastel, formally signed into law the financial supervision package, which will establish new
authorities oversee the operation of banks, securities markets and insurance companies, as well as monitoring the build up
of risk in the economic system as a whole. The three new regulatory authorities offering direct EU supervision of
systemically important financial institutions are the European Banking Authority (EBA), the European Insurance and
Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA).
The press notice issued by the European Parliament's press service can be found
here (link to the EP's website).
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25 November 2010: IASB announces three special board meeting early December
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The International Accounting Standards Board (IASB) has announced that it will hold three special meetings in addition
to the regular Board meeting in December, which is scheduled to take place 13-17 December. All meetings will take place in the
IASB's offices in London. The dates and timings for the special meetings and the topics to be discussed at each meeting are as follows:
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24 November 2010: IFRS presentation and disclosure checklist for 2010
24 November 2010: Conclusions of the October 2010 Trustees' meeting
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The October 2010 Trustees' meeting was held on 12 and 13 October in Seoul, South Korea. The IFRS Foundation now
offers a summary of the conclusions reached at the meeting. The Trustees
The summary is available on the
IASB's website. |
24 November 2010: Upcoming United States webcast on accounting developments
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On 15 December 2010, Deloitte (United States) will hold a quarterly 'Accounting Roundup' webcast, covering the following topics:
- Accounting, standard setting, and reporting developments for the quarter
- Recent positions on accounting and reporting of the FASB, IASB, and SEC
- Other hot topics.
There is no charge for the webcast, but registration is required. More information follows:
- Topic: Quarterly Accounting Roundup: An Update of Important Developments
- Date and time: Wednesday, December 15, 2010 2:00 pm - 3:30 pm (US)
- More information on the webcast and registration:
click here
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24 November 2010: United States Energy & Resources 2010 Accounting, Financial Reporting, and Tax Update
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Deloitte (United States) has published its annual industry publication, Energy & Resources 2010 Accounting, Financial Reporting, and Tax Update (PDF 655k).
This annual publication is intended to help energy and resources companies comply with their 2010 financial, regulatory, and compliance reporting requirements. This year's update outlines SEC, FASB, IFRS, and tax updates and focuses on specialised industry accounting matters frequently seen by rate-regulated entities. A section has also been added on accounting and reporting matters specific to renewable energy.
The IFRS section discusses a wide range of topics, including IFRS-US GAAP convergence, regulatory assets and liabilities, property plant and equipment, impairment, income taxes, derivatives, asset retirement obligations and initial adoption.
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23 November 2010: SEC Comment Letters — Including Industry Insights (Fourth Edition)
23 November 2010: French translation of our IFRS in Focus newsletter
on effective dates
23 November 2010: IFRS zsebkönyv 2010
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Deloitte Hungary has published IFRS zsebkönyv 2010 – the Hungarian language translation of IFRSs in Your Pocket 2010. This 130-page publication includes all of the information in the English language edition. Click to download
IFRS zsebkönyv 2010 (PDF
1.004k). This and many other Deloitte IFRS publications are available on our
Publications Page. |
23 November 2010: Deadline reminder – EDs on Insurance Contracts, Stripping Costs,
Hyperinflation and Annual Improvements
 | We remind you that comments on the Exposure Drafts
Insurance Contracts,
Stripping Costs in the Production Phase of a Surface Mine,
Severe Hyperinflation – Proposed amendment to IFRS 1 and
The annual improvements process: Proposals to amend the Due Process Handbook for the IASB are due on
30 November 2010.
The ED on insurance contracts proposes a single IFRS that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. The proposed IFRS would apply to writers of both insurance and reinsurance contracts.
The ED on stripping costs reflects the IFRS Interpretations Committee's conclusion that costs associated with a
'stripping campaign' should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign.
The ED on hyperinflation proposes guidance on how an entity should resume presenting financial statements in accordance with International Financial Reporting Standards (IFRSs) after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.
The ED on the annual improvement process suggests amended criteria for determining whether a matter relating to the clarification or correction of IFRSs should be addressed using the annual improvements process
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23 November 2010: December 2010 half-year model financial report from Deloitte (Australia)
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Deloitte (Australia) has published December 2010 Half-Year Model Financial Statements (PDF 1,371k). The model financial statements illustrate disclosures to comply with AASB 134 Interim Financial Reporting (equivalent to IAS 34) and other relevant Australian reporting requirements, for half-years ending on or after 31 December 2010.
Click for:
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22 November 2010: EITF Snapshot for November 2010
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We have posted the November 2010 edition of EITF Snapshot (PDF 104k)
summarising the 19 November 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 09-H Health Care Entities: Revenue Recognition – Final consensus
- Issue 10-A How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test – Final consensus
- Issue 10-D Fees Paid to the Federal Government by Pharmaceutical Manufacturers – Final consensus on one issue; consensus-for-exposure on a second issue
- Issue 10-E Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate – No consensus reached
- Issue 10-F Accounting for Legal Costs Associated With Medical Malpractice and Similar Claims – No consensus reached
- Issue 10-G Disclosure of Supplementary Pro Forma Information for Business Combinations – 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
FASB for final ratification.
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22 November 2010: IFRS Illustrative Financial Statements for 2010
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We have posted
Deloitte's IFRS Illustrative Financial Statements for 2010 (Word version) (ZIP of a Microsoft Word file
777k). These model financial statements for the year ended 31 December 2010 illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) by an entity that is not a first-time adopter of IFRSs. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard.
These model financial statements do not reflect the early adoption of IFRS 9. Model financial statements reflecting early adoption of IFRS 9 will be published soon.
A PDF version of these model financial statements will be available soon and posted with our various IFRS model financial statements and related checklists, including translations, which are available
Here.
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22 November 2010: EC consultation on disclosure of non-financial information by companies
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The Services of the Internal Market and Services Directorate General of the European Commission are conducting a public consultation in order to gather stakeholders' views on ways to improve the disclosure by enterprises of non-financial information (e.g. social and environmental).
In recent years, there have been calls to improve the comparability, reliability, and relevance of information disclosed by enterprises. A better focus on sustainability issues by companies and investors could help European companies respond to, and derive business opportunities from, long-term global challenges, such as increased global competition, resource shortages, climate change, and the fight against poverty. Better disclosure of social and environmental information could enhance the accountability of enterprises, and so contribute to higher levels of trust in business on the part of citizens. On
the other hand disclosure of more non-financial information may unduly increase the administrative burden of companies, adding to the length of annual reports which are already considered by many to be too long.
In this context, the EC is conducting the consultation that can be
accessed
here.
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22 November 2010: Financial instruments accounting
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In a feature posted to the IASB's website today, Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), provides an update on the IASB's project to reform financial instruments accounting
talking about what has been achieved, as well as the work ahead of the IASB.
The reform of financial instruments accounting is one of the most important and complex projects the Board is undertaking.
Sir David provides details on the general approach, the three phases of the
project, the convergence with US GAAP, and effective dates. He comes to the
conclusion:
On balance, I believe that the development of IFRS 9 has shown how 21st century standard-setting should be done, and the legacy of the project will be a high quality, principle-based standard that provides increased, useful information for investors and other users of financial statements.
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Click for the
feature
on financial instruments accounting on the IASB's website. Our IAS Plus
summary of the Board's project to replace IAS 39 is available
here.
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22 November 2010: 2011 IFRS Blue Book – Coming Soon
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The IFRS Foundation has announced that the 2011 IFRS Consolidated without early application will be published in December 2010. This volume (nicknamed the "Blue Book")
will contain all official pronouncements that are mandatory on 1 January 2011. It does not include IFRSs with an effective date after 1 January 2011. For example, the Blue Book
will not include IFRS 9 Financial Instruments because it has an effective date of 1 January 2013. The Blue Book differs from the traditional BV, which includes all pronouncements issued at the publication date, including those that do not become mandatory until a future date. The IASB intends to publish the traditional BV (the "Red Book") in
March 2011. The Blue Book will sell for £60 plus shipping (academic, developing country, and volume discounts apply). You will find more information and ordering details
here.
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19 November 2010: Webcast on Framework-based teaching of principle-based standards
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On Tuesday 7 December 2010 the IFRS Foundation will hold a webcast designed for those teaching IFRSs with focus on Framework-based teaching of principle-based accounting standards.
- Topic: Framework-based teaching of principle-based standards
- Date and time: Tuesday, 7 December 2010, 10:00 - 11:30
GMT and repeated 15:00 - 16:30 GMT
- More information on the webcast and registration:
click here
- More information on IAS Plus:
Summary of the IFRS Framework
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19 November 2010: FAF announces post-implementation review process
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The Board of Trustees of the Financial Accounting Foundation (FAF), the oversight body of the
US Financial Accounting Standards Board (FASB), announced a new process for conducting post-implementation reviews of
the financial accounting and reporting standards issued by the FASB.
The new FAF process is designed to be independent of the standard-setting process.
The FAF review staff will study significant accounting standards to assess whether the intended financial reporting objectives underlying those standards are being met. The review staff will report to the Trustees and FAF president. The review staff will test the initial review process by selecting one standard.
The test is expected to be completed by midyear 2011. Click for
FAF press release (link to FAF website).
According to the Due Process Handbook the IASB's post-implementation review process
is currently as follows:
After an IFRS is issued, IASB members and staff hold regular meetings with interested parties, including other standard-setting bodies, to help understand unanticipated issues related to the practical implementation and potential impact of its provisions.
The IFRS Foundation also fosters educational activities to ensure consistency in the application of IFRSs. After a suitable time
(usually two years), the IASB may consider initiating studies in the light of:
- its review of the IFRS's application,
- changes in the financial reporting environment and regulatory requirements, and
- comments by the IFRS Advisory Council, the IFRS Interpretations Committee, standard-setters and constituents about the quality of the IFRS.
Those studies may result in items being added to the IASB's agenda.
Click for an
overview of the IASB's standard setting process (link to IASB website).
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19 November 2010: Notes from Day 3 of November IASB meeting
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The International Accounting Standards Board (IASB) is holding its regular November meeting in Norwalk, United States. Day 3 of the meeting, held on 18 November 2010, was joint meeting with the United States Financial Accounting Standards Board (FASB). We have also posted the notes from the late session of Day 2 of the meeting where the conceptual framework was discussed.
The topics discussed were as follows (click through for Deloitte observer notes on each topic):
- Conceptual Framework – the Reporting Entity
- Entity versus proprietary perspective
- Requirement for combined financial statements
- Revised project timeline
- Emission Trading Schemes
- Recognition of a liability for excess emissions in excess of initial allocation and measurement of liabilities in an emission trading scheme
- Initial and subsequent measurement of purchased allowances (assets) (cap and trade scheme)
- Balance sheet presentation of assets and liabilities in a cap and trade scheme
- Fair Value Measurement
- Premiums and discounts in a fair value measurement (including blockage factors)
- Measurement uncertainty analysis disclosure
- Portfolios of financial instruments
- Measuring the fair value of own equity
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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19 November 2010: Model financial statements for Australian 'Reduced Disclosure Requirements'
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Deloitte (Australia) has published Reduced Disclosure Requirements - Model Financial Statements (PDF 1,019k).
In July 2010, the Australian Accounting Standards Board (AASB) released AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements to implement its revised differential reporting regime.
The AASB has decided not to implement the IFRS for SMEs in the Australian context at this time. Instead, eligible entities can elect to adopt the 'Reduced Disclosure Requirements' (RDR), which requires entities to follow the recognition and measurement requirements of all Australian Accounting Standards (which are equivalent to IFRSs), but with reduced disclosure requirements. This publication illustrates the disclosures required to comply with the RDR.
Click for:
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18 November 2010: IFRIC Review newsletter issued
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The November 2010 edition of IFRIC Review has been issued. The IFRIC Review newsletter examines
matters discussed at the IASB's IFRS Interpretations Committee (IFRIC). The November edition (PDF 77k)
discusses the IFRIC meeting held on 4-5 November 2010.
All issues of IFRIC Review are available Here.
You can access all our Deloitte IFRS publications Here.
The Interpretations Committee has published a podcast about the
meeting which can be accessed on the
IASB's website.
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18 November 2010: Spanish language translations of
Deloitte publications
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We have posted the following Spanish language publications from Deloitte (Colombia). Many more Spanish language translations of Deloitte publications can be found here:
Recursos en Español.
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18 November 2010: Accountancy Age Award for Ken Wild
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Ken Wild has been awarded the 2010 Accountancy Age Award for Outstanding Industry Contribution.
Accountancy Age lauds him as
"as one of London's finest technical minds" and praises his "dedication to core principles that has helped him build a reputation for integrity".
Ken Wild was a partner at Deloitte for 26 years until his retirement in 2010, for much of that time he led the UK firm's technical department and, more recently, the Global IFRS Leadership Team. Mr Wild was also a member of the ASB from 1994 to 2003 and IFRIC from 2003 to 2009. He also helped maintain IAS Plus and has written numerous articles and books on accounting. He is currently a Fellow, Judge Business School, Cambridge University, where he lectures on financial reporting in the School's
masters' programmes. |
18 November 2010: IFRS Foundation enhances stakeholder representation in IFRS XBRL advisory committees
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The Trustees of the IFRS Foundation today announced the new membership of the Foundation's two IFRS XBRL advisory committees – the XBRL Advisory Council (XAC) and the XBRL Quality Review Team (XQRT). The existing membership base of the two committees has been enhanced through increased representation from auditors and preparers, financial institutions, accounting bodies, standard-setters, regulators and software vendors from around the world.
- The XBRL Advisory Council provides strategic advice to the Trustees and the Foundation's XBRL team on the future development and adoption of the XBRL Taxonomy for International Financial Reporting Standards (IFRSs).
- The XBRL Quality Review Team helps to assure the quality of XBRL taxonomy by reviewing taxonomies developed by the
IFRS Foundation.
XBRL (eXtensible Business Reporting Language) is an XML-based computer software language that is developed specifically for the automation of business information requirements, such as the preparation, sharing and analysis of financial reports, statements, and audit schedules. XBRL labels companies' financial and other data with codes from standard lists (taxonomies) so that investors and analysts can more easily locate and analyse desired information. XBRL makes the analysis and exchange of corporate financial information easier and more reliable by allowing data to be extracted and processed automatically by XBRL-aware applications.
Click for
IFRS Foundation Press Release and our XBRL
Project Page. |
18 November 2010: Notes from Day 2 of November IASB meeting
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The International Accounting Standards Board (IASB) is holding its regular November meeting in Norwalk, United States. Day 2 of the meeting, held on 17 November 2010, was joint meeting with the United States Financial Accounting Standards Board (FASB). We have also posted the notes from the late session of Day 1 of the meeting (IASB-only) on post-employment benefits.
The topics discussed were as follows (click through for Deloitte observer notes on each topic):
The Board also discussed the conceptual framework (reporting entity phase). We will post notes from this additional topic on Friday 19 November.
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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18 November 2010: Japanese translation of our IFRS in Focus newsletter on IFRS 9
17 November 2010: EFRAG extends comment period on Financial Statement Presentation
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In view of the recent decision of the IASB and the FASB to postpone further detailed redeliberations on the
financial statement presentation project until after June 2011, EFRAG has extended the deadline for comments on EFRAG's paper on the
IASB's staff draft of the ED Financial Statement Presentation until 30 April 2011.
The EFRAG paper (PDF 174k), which is based
on EFRAG's preliminary views, is intended to stimulate the debate by European
constituents on the proposals included in the Draft ED and serves as a basis for the outreach events in Europe. An overview of all dates and places is available in
this press release (link to EFRAG website). The feedback received during the meetings with constituents around Europe will be provided to the IASB upon completion of the outreach events, and will be taken into consideration in planning further steps on the project. |
17 November 2010: Notes from Day 1 of November IASB meeting
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The International Accounting Standards Board (IASB) is holding its regular November meeting in Norwalk, United States. Day 1 of the meeting, held on 16 November 2010, was an IASB-only meeting. The topics discussed were as follows (click through for Deloitte observer notes on each topic):
The Board also discussed post-employment benefits. Notes from this additional topic will be posted on Thursday 18 November.
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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16 November 2010: SEC and CESR discuss regulatory reform initiatives
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The Securities and Exchange Commission (SEC) and the Committee of European Securities Regulators (CESR) had a high-level meeting discussing regulatory reform efforts in the United States and European Union. The meeting focused on regulation of over-the-counter derivatives and oversight of credit rating agencies and managers of hedge and private equity funds. Further, they shared views on market structure issues, systemic risk, and issues relating to the convergence of IFRS and U.S. GAAP. Since many global financial firms operate in both the United States and Europe, the SEC and CESR members agreed to discuss a method to improve the effectiveness and minimize the conflicts which will arise for firms subject to new rules from both markets.
Click for:
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16 November 2010: APEC report discusses 'diversity in accounting standards'
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The Asia-Pacific Economic Cooperation forum (APEC) has released its 2010 Economic Policy Report (prepared by its Economic Committee) after it was endorsed by Foreign and Trade Ministers at APEC's annual meeting in Yokohama, Japan. APEC is an inter-governmental organisation with 21 member economies in the Asia-Pacific region, including Australia, Canada, The People's Republic of China, Japan and the United States.
The Economic Policy Report discusses various corporate governance matters, including the international harmonisation of accounting standards. In this regard, whilst acknowledging the benefits of IFRS, the report consider the possibility of maintaining 'diversity' in accounting standards, or permitting choice. This stance is quite different to the direction of the G20, which more strongly favours convergence of accounting standards (see our earlier story).
An extract from the report follows:
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International Accounting Standards Harmonization
Harmonization with international accounting standards is an issue that gains and loses momentum with some regularity but is relevant to corporate governance. IFRS are not universally accepted in APEC, and debate continues about their merits versus other accounting standards. In particular, there is a corporate governance concern that some accounting standards may be better at encouraging long-term, stable growth than at focusing on one accounting period's earnings.
However, there are also significant benefits to harmonizing accounting standards... Universal accounting standards backed by universal professional performance standards would allow easy comparison among companies, enabling more efficient capital allocation and global corporate performance, as long as the standard chosen incentivizes long-term performance over earnings manipulation or smoothing.
Such standardization increases pressure on companies by forcing them to compete for capital with all other competitors for capital in the world. However, if the standard chosen allows fraud to go undetected for some period, the world might suffer a global simultaneous accounting scandal crisis. Given the events of the past decade such a scenario should be considered. Thus, it may be important to maintain diversity in accounting standards, or even to allow companies to choose which standards to use along with choosing which economy and stock exchange in which to compete for capital.
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Click for APEC press release (link to the APEC website).
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15 November 2010: Newsletter on the revisions to IFRS 9 for financial
liability accounting
14 November 2010: Notes from November IASB-EFRAG meeting
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The International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) held a joint meeting in London on 12 November 2010. The topics discussed were as follows (click through for Deloitte observer notes on each topic):
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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12 November 2010: Notes from Day 3 of the special November IASB meeting
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The IASB met in London on 12 November 2010 for the third day of a IASB and FASB special meeting. The topics
discussed were as follows:
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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12 November 2010: G20 reiterates support for global accounting standards
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Following their summit meeting in Seoul on 11-12 November 2010, the leaders of the G20 group of nations have issued a Declaration reaffirming their support for a single set of global accounting standards as a means for strengthening the global financial market infrastructure.
This new Declaration makes reference to convergence deadline "by the end of 2011".
The G20 was first organised in the wake of the Asian financial crisis of the late 1990s. With the onset of the global financial crisis in 2008, the G-20 has become the principal forum to lead global efforts to stem the crisis and mitigate its effects. Below is an excerpt from the Declaration following the
Seoul summit.
38. We re-emphasized the importance we place on achieving a single set of improved high quality global accounting standards and called on the International Accounting Standards Board and the Financial Accounting Standards Board to complete their convergence project by the end of 2011. We also encouraged the International Accounting Standards Board to further improve the involvement of stakeholders, including outreach to, and membership of, emerging market economies, in the process of setting the global standards, within the framework of independent accounting standard setting process. |
All documents published after the summit are available
here (link to the Seoul Summit website). The excerpt above is from the
Seoul Summit Document (PDF 214k).
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12 November 2010: New webcast recordings available
12 November 2010: ASB issues Improvements to Financial Reporting Standards 2010
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The UK Accounting Standards Board (ASB) has published a Financial Reporting Standard (FRS) 'Improvements to Financial Reporting Standards 2010'. The ASB is publishing this FRS so as to maintain the existing levels of convergence between UK and International Financial Reporting Standards (IFRS), which will assist groups in preparing consistent financial statements where their consolidated and subsidiary financial statements are prepared in accordance with IFRS and FRS respectively. The FRS includes amendments to SSAP 25 'Segmental Reporting', FRS 8 'Related Party Disclosures' and FRS 29 (IFRS 7) 'Financial Instruments: Disclosures'.
Click for:
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12 November 2010: Canadian publication and webcast on CSA environmental reporting guidance
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On 27 October 2010, the Canadian Securities Administrators (CSA) issued CSA Staff Notice 51-333 Environmental Reporting Guidance. The result of a multi-stakeholder development process, the guidance provides report issuers with important insights into environmental disclosure and compliance requirements (see our earlier story).
Deloitte (Canada) recently published Environmental Reporting Guidance: CSA Staff Notice 51-333 - What does it mean, why does it matter and where do you go from here? The report outlines key insights from the new guidelines, provides key questions to consider, and includes a step-by-step response to prepare, implement, and govern effective environmental disclosure. The publication is available in both English (PDF 146k) and French (PDF 846k).
In addition, on Wednesday, 8 December 2010, Deloitte (Canada) will be hosting a webcast in conjunction with Tory's LLP and the Ontario Securities Commission (OSC) to share perspectives on the guidance. Details are below:
- Topic: CSA Staff Notice 51-333 – Environmental Reporting Guidance: How will it affect you?
- Date and time: Wednesday, 8 December 2010, 11:00 am - 12:30 pm EST (CA)
- More information on the webcast and registration:
click here
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Click for:
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11 November 2010: Notes from Day 2 of the special November IASB meeting
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The IASB met in London on 11 November 2010 for the second day of a IASB and FASB special meeting. The topics
discussed were as follows:
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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11 November 2010: IFRS presentation and disclosure checklist for 2010
We have posted Deloitte's IFRS Presentation and Disclosure Checklist for 2010 (Word version) (ZIP of a Microsoft Word file 390k). The checklist is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item.
A PDF version of this checklist will be available soon and posted with our various IFRS model financial statements and related checklists, including translations, which are available Here.
11 November 2010: China completes convergence with International Standards on Auditing
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The Chinese Auditing Standards Board (CASB) and the International Auditing and Assurance Standards Board (IAASB) met on 10 November to discuss convergence of international standards. A press release issued after the meeting confirmed the CASB has completed the revision of Chinese Standards of Audit (CSAs), and achieved full convergence with the clarified International Standards on Auditing (ISAs).
During the process of international convergence, the CASB made limited additions it considered necessary and maintained some standards dealing with matters that are not specially covered in ISAs to reflect China's unique circumstances and business requirements. The revised CSAs were officially released in early November 2010, and are effective for audits of financial statements for periods beginning on or after 1 January 2011.
Previously, the parties had signed a milestone joint statement in December 2005, which pointed out that establishing and improving a single set of high-quality global auditing standards is a logical response to the trend of economic globalisation.
Click for:
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11 November 2010: Deloitte Japan webcast on October IASB meeting
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Deloitte's IFRS Centre of Excellence in Japan has released a recorded webcast on the October meeting of the IASB. The 30 minute webcast is available for viewing until 31 March 2011.
Click for:
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11 November 2010: Chinese translations of our IFRS in Focus newsletters
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We have posted Chinese translations of the following IFRS in Focus newsletters:
English versions of the above publications can be found Here. Translations are also available in Spanish, Japanese and French.
We have put permanent links to Chinese translations of the IFRS in Focus newsletters on our China Page. More Chinese language resources can be found on our Chinese language IAS Plus site, www.casplus.com.
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10 November 2010: Notes from Day 1 of the special November IASB meeting
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The IASB met in London on 10 November 2010 for the first day of a IASB and FASB special meeting. The topics
discussed were as follows:
Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.
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10 November 2010: CSA publish IFRS-related update and amendments
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The Canadian Securities Administrators (CSA) have published an update to CSA Staff Notice 52-306
Non-GAAP Financial Measures and Additional GAAP Measures to reflect the
changeover to International Financial Reporting Standards (IFRS). Specifically,
the notice has been amended to include specific guidance to issuers regarding additional GAAP measures required by IFRS.
The CSA also published IFRS-related amendments to National Policy 41-201 Income Trusts and Other Indirect Offerings to reflect the changes to NP 52-306.
Click for:
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10 November 2010: IFRS Translations Update
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The IFRS Foundation has published a new edition of its
IFRS Translations Update
(link to IASB website). Translation is a necessary and vital part of achieving the IFRS Foundation's mission to develop a single set of high-quality global accounting standards for use around the world.
It is in the interest of any country adopting or using IFRSs or the IFRS for SMEs that the translated IFRSs are of a high quality.
Moreover, the translation of IFRSs is often also an important component in a country's decision to adopt IFRSs. The IFRS Translations Update
gives an overview of recently published and upcoming translations:
- Recently published translations:
- Spanish translation of the 2010 Red Book
- French translation of the requirements of the standards
- French translation of IFRS for SMEs
- Korean 2010 XBRL taxonomy
- Japanese 2010 Red Book
- Upcoming translations:
- Arabic 2010 XBRL taxonomy
- Arabic translation of the 2010 Red Book (by the end of this year)
- German 2010 Red Book (in the first quarter of 2011)
- Polish translation of the 2010 Red Book (by the second quarter of 2011)
- Traditional Chinese 2010 Red Book (will be published on the Taiwanese Financial Supervisory Commission's website as the standards become available)
- Other projects in progress include the Brazilian Portuguese 2010 Red Book and IFRS for SMEs, and the Serbian IFRS for SMEs.
- Russian translation update:
The requirements of the standards that have been issued since the 2009 Red Book, IFRS for SMEs, and the Training Modules for IFRS for SMEs have all been translated into Russian and are awaiting review by the expert review committee which is currently being finalised.
Throughout 2011 the Russian translation will continue to be updated in support of IFRS adoption in Russian-speaking countries.
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10 November 2010: We comment on ED/2010/11
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Deloitte has submitted a comment letter on Exposure Draft
ED/2010/11 Deferred Tax: Recovery of Underlying Assets. The proposal would amend one aspect of
IAS 12 Income Taxes. Under IAS 12, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects to recover an asset by using the asset or by selling the asset. In some cases, it is difficult and subjective to assess whether recovery will be through use or through sale. To provide a practical approach in such cases, the proposed amendment would introduce a presumption that an asset is recovered entirely through sale unless the entity has clear evidence that recovery will occur in another manner.
We appreciate the fact that the Board is trying to address the difficult practical issues that can arise when
calculating and measuring deferred taxes associated with assets that are remeasured or revalued at fair value. However, we do not support the proposed exception to the principles in IAS 12 (see box below). Click to
Download our Comment Letter (PDF 58k). All of our past comment letters are
Here.
Although we agree that additional guidance would be useful in this area, we do not support the introduction
of an exception to the existing principles of IAS 12. Instead, we recommend the Board provides additional
implementation guidance to illustrate how the existing principles within IAS 12 should be applied. In
developing this implementation guidance, the Board should consider an approach based on an entity's
underlying business model, an approach that we believe to be consistent with the current requirements in IAS
12.52. |
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10 November 2010: EFRAG outreach on Financial Statement Presentation project – questionnaire
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In July 2010, the IASB released on its website a
staff draft of the exposure draft Financial Statement Presentation in order to solicit input and views from constituents, prior to publication of a final ED. To assist the IASB in its efforts to gather views from European constituents, as well as to inform itself of whether, and to what extent, EFRAG preliminary views are representative of European views, EFRAG has organised outreach events throughout Europe in partnership with European National Standard Setters.
As part of the outreach activities, EFRAG has published a
paper, which was intended to stimulate the debate by European constituents on the proposals included in the Draft ED. Prior to the outreach events, participants
were asked to express their views on the issues through the use of a questionnaire.
Parties not participating in the outreach events but still
interested in responding to the questionnaire can do so by following this
link (comment deadline 1
December 2010). |
10 November 2010: Australian publication on considerations for CFOs from leases proposals
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Deloitte (Australia) has published CFO Brief - Gearing up for change: New Lease Accounting Proposals (PDF 2,831k).
The publication provides an overview of the IASB's leases proposals, the likely impact on financial metrics (including the impacts on expense profiles), stakeholder impacts and a summary of matters for Chief Financial Officers (or their equivalents) to consider. The publication will be useful to audiences outside of Australia as well, as many of the topics discussed are relevant globally.
Click for:
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10 November 2010: Japanese translation of our IFRS in Focus newsletter on effective dates
9 November 2010: IOSCO releases IFAC Monitoring Group report
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The International Organization of Securities Commissions (IOSCO) has publicly released Review of the IFAC Reforms – Final Report. The report was produced by the Monitoring Group into the so-called 'IFAC Reforms' aimed at strengthening the international auditing and assurance standards process to bolster public confidence in the work of auditors and in the financial reporting process.
The Monitoring Group is a consensus-based group of the regulatory and international public interest organisations responsible, inter alia, for monitoring the implementation of the IFAC Reforms. The members are the Basel Committee on Banking Supervision, the European Commission, the Financial Stability Board, the International Association of Insurance Supervisors, IOSCO and the World Bank. The International Forum of Independent Audit Regulators (IFIAR) is an observer. The Monitoring Group is chaired by IOSCO.
The IFAC Reforms were agreed by International Federation of Accountants (IFAC) in 2003 and included a more transparent audit and assurance standard setting process and the establishment of the Public Interest Oversight Board (PIOB) to oversee IFAC's public-interest activities. Our original story about the reforms, with more detail, is available here.
A summary of the report's recommendations is set out below:
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Matters of Past Implementation: Virtually all of the changes called for by the Reforms have been implemented.
Matters for Near Term Action: There are several near term matters that are within the context of the Reforms which would bring enhancements to the standard-setting, oversight and monitoring work and thus further the aims of the Reforms with respect to diversity, transparency and accountability. Recommendations include changes to the appointment of, and information about, IFAC Boards members, the role of technical advisors, and the transparency of standard-setting processes.
Matters for Longer Term Analysis: There are two longer term matters that go beyond the context of the Reforms which the Monitoring Group will keep under review and consideration. These include the efficacy of standard-setting Boards operating within an accountant's professional membership organisation and whether monitoring groups for audit-related standards and international financial reporting standards should be combined.
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Click for Review of the IFAC Reforms – Final Report (link to IOSCO website).
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8 November 2010: New IFAC appointments
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The International Federation of Accountants (IFAC) has announced the following appointments:
- Mr. Göran Tidström of Sweden has been appointed president of IFAC for a two-year term ending in November 2012
- Mr. Warren Allen of New Zealand has been appointed deputy president (also for a two-year term), and also takes the role of chair of the Planning and Finance Committee
- The election of three new members to the IFAC Board: Ramon Casals Creus (Spain), Ana Maria Elorrieta (Brazil) and Robert R Harris (United States)
- The re-election of four Board members for a second term: Jelil Bouraoui (Tunisia), Robert Hodgkinson (United Kingdom), Japheth Katto (Uganda), and Olivia Faulkner Kirtley (United States).
The appointments were confirmed at the IFAC Council meeting being held in Kuala Lumpur, Malaysia. A number of new associates were also admitted to the organisation (from Bosnia and Herzegovina, Croatia, Republic of Macedonia, Russia and Sri Lanka).
Click for IFAC press release (link to IFAC website).
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8 November 2010: FASB's Valuation Resource Group meeting
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The US Financial Accounting Standards Board has established a Valuation Resource Group (VRG) to provide the FASB staff with information about implementation issues regarding fair value measurements used in financial reporting. The VRG met on 1 November 2010 and discussed the four issues listed below. Deloitte (United States) has published the 8 November 2010 edition of the Heads Up Newsletter (PDF 126k) explaining the four issues:
- VRG Issue No. 2010-05: Fair Value Measurement of Contingent Consideration in a Business Combination
- VRG Issue No. 2010-06: Application of the Multiperiod Excess Earnings Method and the Greenfield Method to Intangible Assets
- VRG Issue No. 2010-07: Proposed Accounting Standards Update, How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test
- VRG Issue No. 2010-08: Measurement Uncertainty Analysis Disclosure and Possible Alternatives
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8 November 2010: Agenda for the November 2010 IASB meeting
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The IASB will hold its monthly meeting for November 2010 at the FASB offices in Norwalk, United States from 16 to 18 November 2010. The second and third days of the meeting are joint meetings with FASB. The meeting will be open to public observation and will be webcast. Presented below is the agenda for the meeting. As the meeting is being held in Norwalk, all meeting times are shown in United States Eastern Standard Time (EST).
IASB Board Meeting Agenda
16-18 November 2010, Norwalk |
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Tuesday, 16 November 2010
IASB Meeting (10:15-17:30)
Wednesday, 17 November 2010
IASB-FASB Joint Meeting (09:30-17:15)
Thursday, 18 November 2010
IASB-FASB Joint Meeting (08:00-12:45)
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5 November 2010: IFRS Taxonomy 2010 updated for enhanced derecognition disclosure requirements for transfer transactions of financial assets
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The IFRS Foundation today released an interim release for the IFRS Taxonomy 2010, which is a translation of IFRSs as issued at 1 January 2010 into XBRL (eXtensible Business Reporting Language). This IFRS Taxonomy release reflects Disclosures – Transfers of Financial Assets (Amendments to IFRS 7), which was issued by the IASB in October 2010.
Click for:
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5 November 2010: Notes from the November 2010
Interpretations Committee meeting
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The IFRS Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday,
4-5 November 2010. The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):
Click here to go to the preliminary and unofficial
Notes Taken by Deloitte Observers for the entire meeting.
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5 November 2010: New Heads Up on FASB's financial instruments project
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Deloitte (United States) has released a Heads Up discussing the feedback received by the FASB on its proposed Accounting Standards Update (ASU), Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities. The proposed ASU includes a comprehensive new model of accounting for financial assets and financial liabilities that addresses (1) recognition and measurement, (2) impairment, and (3) hedge accounting.
Although the FASB's proposed ASU is part of a joint project with the IASB, many respondents have expressed concern about the lack of convergence between the proposed ASU and the IASB's approach to the accounting for financial instruments.
Click for:
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5 November 2010: Newsletter on the IASB's request for
views concerning transition and effective dates
5 November 2010: Trustees seek public comment on the future strategy of the IFRS Foundation
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The Trustees of the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), today published a first-stage consultation document designed to solicit input on the strategy of the IFRS Foundation as it enters its second decade. The Trustees initiated this review as a result of the second
Constitution Review that was completed earlier this year.
The Trustees are seeking views of stakeholders on four strategic fronts:
- the IFRS Foundation's mission
- governance
- the standard-setting
process
- financing of the IFRS Foundation
The Trustees invite public comment on the consultation document by 31 December 2010 and expect to conclude the strategy review during their meeting in March 2011.
Click for:
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5 November 2010: Agenda for November joint IASB/EFRAG meeting announced
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The International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) will hold a joint meeting in London on 12 November 2010.
Presented below is the agenda for the meeting.
IASB/EFRAG joint meeting
12 November 2010, London |
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- Is there a June 2011 deadline?
- Revenue recognition
- Leases
- Financial instruments
- Hedge accounting
- Impairment
- Other financial instruments issues
- Consolidation
- Insurance
- Financial statements presentation (including OCI)
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Click for EFRAG press release (link to EFRAG website).
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5 November 2010: IFAC proposes Public Interest Framework
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The International Federation of Accountants (IFAC) has released an exposure draft entitled A Public Interest Framework for the Accountancy Profession.
The exposure draft proposes a principles-based framework for the 'public interest' concept, which can be applied to standard-setting, governance processes, policy analysis, and regulatory issues. Although mainly designed for use by IFAC itself, IFAC considers it may also be useful to the accountancy profession as well as to policymakers, regulators, and business leaders.
IFAC considers that the accountancy profession, in serving the public interest, should be evaluated against three criteria:
- consideration of costs and benefits for society as a whole
- adherence to democratic principles and processes
- respect for cultural and ethical diversity.
Comments on the exposure draft are requested by 25 March 2011. Click for IFAC press release (link to IFAC website).
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4 November 2010: Spanish translation of Deloitte's guide to IFRS 1
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Deloitte (Colombia) has published Adopción por primera vez de los Estándares Internacionales de
Información Financiera: Una guía para la implementación del IFRS 1, the Spanish translation
of First-time adoption of International Financial Reporting Standards: A Guide to IFRS 1 (Second Edition), published in
November 2009.
Click to download Una guía para la implementación del IFRS 1 (PDF 501k).
Many more Spanish language translations of Deloitte publications can be found here:
Recursos en Español.
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4 November 2010: Stay in touch with our new IFRS on Point publication
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Deloitte's IFRS Global Office now publishes IFRS on Point, which highlights the month's critical financial reporting developments. IFRS on Point is published monthly and provides a great way to catch up on the main IFRS-related news stories of the month.
You can find our first edition here
October 2010 edition (PDF
76k).
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4 November 2010: Deloitte's new IASB Project Insights highlights key IASB activities for each project
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Deloitte's IFRS Global Office now publishes IASB Project Insights, which provides (in easily printed PDF format) a summary, by project, of:
- Current status - brief background and current steps being undertaken
- Key decisions and proposals - high-level summaries of decisions to date and any consultation documents published
- 'Thinking ahead' - key considerations for entities given the status of the project
- Next steps - forthcoming deadlines or due process steps to be undertaken and guidelines as to when the project may be finalised.
We've posted 17 separate documents, covering the key topics including revenue recognition, leases, insurance contracts, consolidation, financial instruments and more.
The documents will be updated on a regular basis as developments occur and represent a great way to stay in touch with particular IASB projects. Click here to access
IASB Project Insights.
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4 November 2010: Roundtable meetings for the insurance
contracts project – registration deadline extended
4 November 2010: IAASB releases report on International Standards on Auditing, issues further implementation support materials
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The International Auditing and Assurance Standards Board (IAASB) has released a progress report on its project to monitor the implementation of its clarified International Standards on Auditing (ISAs). The report highlights key findings from the first phase of the IAASB's initiative to develop a process for gathering information to help it evaluate the effective and consistent implementation of the 'clarified' ISAs – a new style for ISAs that is designed to be easier to understand, translate, and implement.
To promote awareness and understanding of the clarified ISAs, the IAASB also has released a second series of ISA modules, focusing on some of the new and more significantly revised ISAs. The ISA modules combine short video presentations, accompanying slides, and supporting notes explaining the key principles of, and major changes in, individual ISAs.
Click here for IFAC Press Release (IFAC website), which includes a link to download the report and IAS modules.
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4 November 2010: Asian-Oceanian Standard-Setters Group launches website, makes documents public
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The Asian-Oceanian Standard-Setters Group (AOSSG) has launched its website. The AOSSG is a regional platform to discuss problems and share experiences in the IFRS convergence process, participate in the development of IFRSs, and to make contributions to a single set of high quality global accounting standards. At a recent AOSSG meeting, Sir David Tweedie (IASB Chairman) noted input from the Asia-Oceanic region should be given more weight given the strong economic growth and developments throughout the region.
In addition to general information about the AOSSG, the website includes access to a number of AOSSG documents, including past submissions and research papers.
Of particular interest may be a research paper prepared on accounting issues associated with Islamic finance, including consideration of the application of IFRSs to Islamic finance transactions. An extract follows:
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It is noted that in jurisdictions where Shariah interpretations espouse an approach that differ from IFRS requirements, standard-setters may have to accede to such interpretations, and allow or require departures from those requirements for Islamic financial transactions. Such departures may have implications on plans for convergence.
This Paper concludes that the challenge to standard-setters and stakeholders is to enhance the cross-border comparability of Islamic financial transactions, while being mindful of religious sensitivities. Although IFRS may be touted as being internationally accepted, there is resistance by those who believe that some IFRS principles are irreconcilable with their interpretation of Shariah, and that separate financial reporting principles are warranted.
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The website (including access to the research paper noted above) can be found at www.aossg.org. We maintain an AOSSG page Here.
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3 November 2010: FASB proposes ASU to improve the accounting for repurchase agreements
3 November 2010: IASB webcast on hedge accounting
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On Monday 8 November, the IASB staff of the IASB will present
two webcasts about the exposure draft on Hedge Accounting that will be
published shortly.
There is no charge to attend the web presentation, but registration is required. Details of the webcast are as follows:
- Topic: Hedge Accounting
- Date and time: Monday, 8 November 2010, 11:00am and
repeated again 3:00pm (London time)
- More information on the webcast and registration:
click here (link to
IASB website)
- More information on IAS Plus: For our agenda project page
click here
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3 November 2010: CSA issue additional environmental reporting guidance
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The Canadian Securities Administrators (CSA) have published CSA Staff Notice 51-533 Environmental Reporting Guidance.
The Notice should assist issuers in assessing which information must be disclosed on material environmental matters, such as risks related to weather patterns or environmental legislation.
It provides guidance on compliance with disclosure rules in the following areas:
- Environmental risks and related matters;
- Environmental risk oversight and management;
- Forward-looking information requirements as they relate to environmental goals and targets; and
- Impact of adoption of International Financial Reporting Standards (IFRSs) on disclosure of environmental liabilities.
The Staff Notice notes that IFRSs contain some important differences from Canadian
GAAP for recognition and measurement of provisions (including environmental provisions)
and offers a detailed comparison. Click for
CSA press
release (link to CSA website),
CSA Staff Notice 51-533 (link to Ontario Securities Commission website) and
our Canada country page.
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3 November 2010: New Australian Accounting Alert discusses AASB meeting outcomes
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Deloitte (Australia) has published Accounting Alert 2010/12, dealing with the outcomes from the Australian Accounting Standards Board (AASB) meeting held on 27-28 October 2010.
The meeting was partly a joint meeting with the New Zealand Financial Reporting Standards Board (FRSB). The Boards are moving closer to harmonising financial reporting standards between the two countries, whilst maintaining compliance with IFRSs for larger for-profit entities (and reintroducing IFRS options in some cases). The Boards expect to finalise the first phase of the convergence project early in 2011.
The AASB also decided not to support Draft Interpretation DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine due to a lack of apparent diversity in practice, an inappropriate unit of account and lack of clarity on the meaning of 'stripping campaign'. The Draft Interpretation is quite contentious in the Australian context due to the country's large resources base and prevalent use of the 'stripping ratio' approach to account for these costs.
Click to access Accounting Alert 2010/12. We maintain an archive of past Australian Accounting alerts Here.
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2 November 2010: Accounting Roundup – October 2010
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We have posted the October
2010 Edition of Accounting Roundup (PDF 387k) published by Deloitte & Touche LLP (United States). The newsletter
covers United States and international accounting and auditing matters, including IASB-FASB convergence. Topics covered in
this issue include:
Consolidation
- FASB Announces Change to the Schedule for Roundtables on the IASB Staff Draft on Consolidated Financial Statements
Contingencies
- FASB Delays Effective Date for Disclosure of Loss Contingencies
Financial Instruments
- IASB Issues Amendments to IFRS 7
- IASB Issues Amendments to IFRS 9
Receivables
- FASB Issues Proposed ASU on Accounting for Troubled Debt Restructurings by Creditors
Other Accounting
- FASB Issues Various ASUs and Proposed ASUs Related to Issues Discussed at September EITF Meeting
- IASB Issues Proposed Amendments to IFRS 1
- Global Filing Manual for XBRL Published as Part of Interoperable Taxonomy Architecture Project
- Trustees of the IFRS Foundation Appoint Hans Hoogervorst to Succeed Sir David Tweedie as Chairman of the IASB
- Duck-Koo Chung to Serve as Trustee of the IFRS Foundation
- Blue-Ribbon Panel Considers Separate Private-Company Standards Board and New GAAP Model That Would Contain Exceptions
for Private Companies
- FASB and IASB Seek Input on Transition and Effective Dates for Major Projects
Other SEC Matters
- SEC Issues First Progress Report on Consideration of Incorporating IFRSs Into U.S. System
- SEC Updates Financial Reporting Manual
- CAQ Releases Highlights of SEC Regulations Committee's September 21 Meeting
- SEC Issues Proposed Rule on “Say-on-Pay” and “Say on Golden Parachute”
- SEC Seeks Comments on Compliance With Section 404(b)
- SEC Issues Proposed Rules Related to Asset-Backed Securities Offerings
- SEC Issues Proposed Rule on Reporting of Proxy Votes on Executive Compensation and Other Matters
- SEC Issues Stay on Proxy Access Rule Amendments
- SEC Issues Study on Extraterritorial Private Rights of Action
- SEC Advises Registrants to Enhance Disclosure About Mortgage and Foreclosure-Related Activities or Exposures
Other Auditing
- PCAOB Issues Report on Observations Made as Part of Its Auditing Inspections During the Economic Crisis
- PCAOB Issues Release on Unresolved Obstacles to Inspections in Non-U.S. Jurisdictions
- AICPA Investment Companies Expert Panel Updates TPAs
- A Summary of the October 13–14 Meeting of the PCAOB's Standing Advisory Group
- ASB Issues Clarified SASs as Part of Clarity Project
You will find past issues of Accounting Roundup Here.
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2 November 2010: Deadline reminder – ED on
Deferred Tax
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remind you that comments on the Exposure Draft
ED/2010/11 Deferred Tax: Recovery of Underlying Assets are due on
9 November 2010.
Under IAS 12, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects to recover an asset by using the asset or by selling the asset. In some cases, it is difficult and subjective to assess whether recovery will be through use or through sale. To provide a practical approach in such cases, the proposed amendment would introduce a presumption that an asset is recovered entirely through sale unless the entity has clear evidence that recovery will occur in another manner. |
2 November 2010: FRC appoints Roger Marshall as Interim ASB Chairman
2 November 2010: IASB webcast on financial liability accounting
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On Wednesday 3 November, the IASB staff will be hosting a live webcast on accounting for financial liabilities in accordance with the recently reissued IFRS 9 which incorporates new requirements for financial liabilities.
There is no charge to attend the web presentation, but registration is required. Details of the webcast are as follows:
- Topic: Financial Liability Accounting
- Date and time: Wednesday, 3 November 2010, 10:30am and
repeated again 4:00pm (London time)
- More information on the webcast and registration:
click here (link to
IASB website)
- More information on IAS Plus: For our agenda project page
click here
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1 November 2010: Deloitte responds to the SEC staff's progress report on its work plan for global accounting standards
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On 29 October 2010, the U.S. Securities and Exchange Commission (SEC) staff published their first periodic progress report
on the SEC's previously issued work plan. The work plan is being used by the SEC staff to gather information that will aid
the SEC in evaluating whether, when and how IFRS should be incorporated into the U.S. financial reporting system. The SEC
indicated that it will make a decision in 2011 after completion of the work plan and the convergence projects of the IASB
and FASB.
The Work Plan addresses six key areas:
- Sufficient development and application of IFRS for the U.S. domestic reporting system.
- The independence of standard setting for the benefit of investors.
- Investor understanding and education regarding IFRS.
- Examination of the U.S. regulatory environment that would be affected by a change in accounting standards.
- The impact on issuers both large and small, including changes to accounting systems, changes to contractual
arrangements, corporate governance considerations, and litigation contingencies.
- Human capital readiness.
The progress report describes the steps the SEC staff has taken thus far as well as what steps it will take in
the future to gather the necessary information. For example, significant outreach activities have been performed in order
for the staff to better understand the potential challenges of transitioning to IFRS. The progress report includes the
staff's understanding of the different approaches used by various jurisdictions around the world in incorporating IFRS into
their financial reporting systems and how those jurisdictions currently utilise their national standard setter. Also, the
staff continues to evaluate the funding arrangement of the IFRS Foundation as well as the IASB's standard setting process.
"The progress report demonstrates the SEC's continued commitment to achieving a single set of high-quality,
global accounting standards" said Joel Osnoss, Global Managing Director – IFRS Clients and Markets. Osnoss further
added that "continued progress on the work plan will help ensure that the SEC is well-positioned to make a decision in
2011 about the use of IFRS in the U.S."
Additional progress reports on the work plan are expected during 2011.
"The SEC's decision about the use of IFRS in the U.S. has become increasingly important as more countries
around the world adopt IFRS" said Veronica Poole, Global Managing Director – IFRS Technical. She added that
"the recent financial crisis revealed the true interdependent nature of the global capital markets making the need for
a single set of global accounting standards absolutely critical."
For more information on the SEC progress report, see Heads Up One Step Closer to IFRSs?
- SEC Issues First Progress Report on Consideration of Incorporating IFRSs Into U.S. System (PDF 196kb), published by Deloitte (United States).
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1 November 2010: Updated guide on IFRS for boards and audit committees
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Deloitte (United States) has published an updated edition of IFRS: An Update for Boards and Audit Committees (PDF 738k), a guide to help boards and audit committees stay abreast of the latest IFRS developments and understand their potential implications.
This publication includes:
- An outline of some of the key potential accounting differences between IFRS and United States GAAP
- An update on standard-setting developments
- Questions that board and audit committee members should be asking management as they help guide their companies down the path of IFRS implementation
Click here to download IFRS: An Update for Boards and Audit Committees (PDF 738k).
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