30 September 2010: IFRS Insights in Spanish
30 September 2010: Deloitte newsletter on IFRSs in Canada
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The September edition of Deloitte Canada's IFRS newsletter Countdown has been issued. This edition focuses on:
- Strategizing the final stages of IFRS conversion programs
- Operating segments
- An update on canadian and international standard setting activities
Click here to download the September 2010 edition of Countdown (PDF 904k). A French translation is also available (PDF 756k). Click here to visit our Canada country page
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30 September 2010: FASB announces public roundtable meetings to solicit input on
revenue recognition
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The FASB will host public roundtable meetings to discuss its June 2010 Exposure Draft Revenue Recognition (Topic 605): Revenue from Contracts with Customers, a joint project with the International Accounting Standards Board (IASB).
For more information on this joint project, see our
Revenue Recognition page.
- Topic: Joint FASB/IASB public roundtable meetings on the joint exposure draft on revenue recognition
- Date and time: Session 1: Thursday, 4 November 2010, 9:00 AM – 12:00 PM EDT; Session 2: 1:00 PM – 4:00 PM EDT.
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Venue: FASB offices, 401 Merritt 7, Norwalk, Connecticut
- More information on registration:
Click Here
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- Topic: Joint FASB/IASB public roundtable meetings on the joint exposure draft on revenue recognition
- Date and time: Session 1: Tuesday, 23 November 2010, 9:00 AM – 12:00 PM PST; Session 2 (tentative): 1:00 PM – 4:00 PM PST.
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Venue: Stanford University, Schwab Residential Center, East Vidalakis Room, 680 Serra Street, Stanford, California
- More information on registration:
Click Here
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30 September 2010: IVSC issues discussion paper on valuation uncertainty
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The International Valuation Standards Council (IVSC) has released Discussion Paper Valuation Uncertainty (link to the IVSC website, PDF 637k). This paper summarises the Board's preliminary views on the nature and causes of valuation uncertainty and on how this should be communicated to valuation users. The Board will consider responses to this paper in deciding whether amendments are required to the proposed new International Valuation Standards1 and whether a project should be undertaken to consider the development of technical guidance on possible methods for estimating a quantitative measure of uncertainty. Comments will be accepted until 24 December 2010. |
30 September 2010: Spanish Heads Up on multiemployer plans
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We have posted the following Spanish language Heads Up publication from Deloitte (Colombia).
Many more Spanish
language translations of Deloitte publications can be found here:
Recursos en Español.
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30 September 2010: IASB proposes Severe Hyperinflation amendment to IFRS 1
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The International Accounting Standards Board (IASB) today published
for public comment an exposure draft Severe Hyperinflation, a proposed amendment to IFRS 1
First-time Adoption of International Financial Reporting Standards.
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.
The exposure draft is open for comment until 30 November 2010. Click for:
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30 September 2010: We comment on the presentation of
items of OCI
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Deloitte has submitted a comment letter on Exposure Draft ED/2010/5 Presentation of Items of Other Comprehensive Income. The ED proposes to require that all entities present profit or loss and other comprehensive income (OCI) in separate sections of a single continuous statement. This would amend IAS 1, which currently allows entities a choice of presenting results of operations either (a) in a single, continuous statement similar to the proposal in the ED or (b) in two separate statements – an income statement and a statement of comprehensive income. We
do not object to the amendments proposed in the Exposure Draft. However, we are
convinced that some fundamental principles need still to be discussed (see box below). Click to
Download our Comment Letter (PDF 23k). All of our past comment letters are
Here.
Whilst we do not object to the proposals in the ED, we would like to stress that the Board has
not yet concluded on the fundamental principles of what constitutes performance, what
represents Other Comprehensive Income (“OCI”) and the conceptual basis for whether items
in OCI should or should not be recycled. The Board should continue to consider these issues
as part of its Financial Statement Presentation project and the outcome of the ED should not
in any way pre-empt the outcome of these discussions. Although the Board has chosen to
limit the scope of the ED to OCI presentation matters, in our view it would have been
preferable to address the broader conceptual issues related to performance and OCI and
recycling in advance of addressing the presentation of OCI. |
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30 September 2010: Staff draft of a forthcoming IFRS on consolidation
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The IASB has posted to its website a staff draft of a forthcoming IFRS on consolidation that reflects the tentative decisions made to date by the IASB.
The draft IFRS has been prepared by the staff of the IASB for the board’s project to replace
IAS 27 Consolidated and Separate Financial Statements and
SIC-12 Consolidation – Special Purpose Entities with a single standard on consolidation. The staff draft reflects the cumulative tentative decisions made by the board, concluding with the meeting in May 2010. The board’s deliberations are complete, apart from considering the effective date of the forthcoming IFRS. However the tentative decisions reached may be subject to change before the board issues the final consolidation standard.
The Financial Accounting Standards Board (FASB) will hold
public roundtables on 25 October 2010 to elicit input from its stakeholders and help the FASB decide whether to proceed with an exposure draft that is consistent with the IASB’s published requirements.
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29 September 2010: Insurance accounting newsletter in Spanish
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Deloitte (United Kingdom) is publishing a series of Insurance Accounting Newsletters. We post these regularly on our
IAS Plus Insurance Project Page. Deloitte (Colombia)
has translated the newest issue into Spanish:
The newsletter
provides a detailed analysis of the main provisions in the
Exposure Draft issued on 30 July by the IASB
to revise substantially IFRS 4 Insurance Contracts. Many more Spanish
language translations of Deloitte publications can be found here:
Recursos en Español.
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28 September 2010: FASB issues new ASU
28 September 2010: IASB and FASB complete first stage of conceptual framework
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The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today announced the completion of the first phase of their joint project to develop an improved conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (GAAP).
The objective of the conceptual framework project is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged.
Work on the framework project is being carried out in stages. As
each chapter is finalised, the relevant paragraphs in the Framework for the
Preparation and Presentation of Financial Statements that was published in
1989 will be replaced.
Today the chapters 1 The objective of financial reporting and 3 Qualitative characteristics of
useful financial information were published. Chapter 2 will deal with the reporting entity concept.
The Board published an exposure draft on this topic in March 2010 and the comment period ended on 16 July 2010.
While the IASB has revised the portions of its framework as
described above; the FASB has issued ‘Concepts Statement 8’ to replace ‘Concepts Statements 1 and 2’.
The IASB document is available for eIFRS subscribers only; the FASB
document, containing also the chapters The Objective of General Purpose Financial Reporting and Qualitative Characteristics of Useful Financial Information
is freely available on the FASB's website.
Click for:
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28 September 2010: IASB Live webcast on completion of Phase A of Conceptual Framework
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On Wednesday 29 September IASB staff will present a live webcast introducing the first phase of Conceptual Framework.
This will follow the publication of the first phase of the Conceptual Framework later today. The webcast will be followed by a
question and answer session. There's no charge to attend the web presentation, but you need to register to participate. You can
do this now or any time before the presentation. If you register now, the provider will automatically remind you of the
presentation nearer the time. You can listen to the webcast over the internet or by telephone. For the convenience of participants
in different time zones the IASB has scheduled two slots for the webcast:
- Topic: Conceptual Framework – Phase A: Objectives and Qualitative Characteristics
- Date and time: Wednesday, 29 September 2010, 10:00am / 4:00pm (UK time)
- More information on the webcast and registration:
- More information on IAS Plus: For our agenda project page
click here.
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Additionally, the IASB has uploaded a podcast on the issue. Financial journalist Robert Bruce interviews IASB Member
Philippe Danjou and IASB Technical Manager Li Li Lian on the latest developments regarding the first phase of the conceptual framework.
You can access the podcast here (link to IASB website).
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27 September 2010: IASB announces change of date for Tokyo insurance roundtable
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On 16 September 2010 the IASB and FASB announced that they would hold a public roundtable on Insurance Contracts in Tokyo,
Japan on Tuesday 7 December. The IASB has announced that this meeting has been rescheduled and will now take place on Thursday
9 December. Information on how to register to attend this meeting will shortly be published on the
Insurance Contracts
project page (link to IASB website). |
27 September 2010: International survey of CFOs' view on narrative reporting
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ACCA (the Association of Chartered Certified Accountants) in partnership with Deloitte has conducted a survey into the views of CFOs in leading listed and ‘public interest’
companies across nine markets on the challenges around narrative reporting, specifically
in annual reports. Hitting the notes,
but what’s the tune? is now available on the ACCA's Website.
231 CFOs of publicly accountable entities in Australia, China, Kenya, Malaysia, Singapore, Switzerland, the UAE, the UK and the USA were interviewed. Their views form the majority of the report. The main findings were then discussed with seven CFOs and various investor representatives, and a report on each of these interviews
is also included in the report.
Two findings from the survey are especially striking:
- CFOs are between a rock and a hard place. They are seeking to communicate to shareholders but at the same time they have to meet all the legal and other requirements placed on them. Therefore, the top response
(65%) on what CFOs would like to see for the future was more discretion and less regulation. 19% favoured more regulation.
- The second most popular answer on what would improve the usefulness of narrative reporting disclosures was an external auditor opinion on the narrative. 58% of CFOs supported this.
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26 September 2010: New Heads Up discusses SEC action on window dressing
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On September 17, 2010, the SEC unanimously approved a proposed rule, Short-Term Borrowings Disclosure, to address
temporary declines in short-term borrowings – usually around a period-end – commonly referred to as "window dressing."
In part, the measures in the proposed rule result from (1) liquidity issues caused by certain transactions involving repurchase
agreements known as "Repo 105" transactions; (2) SEC inquiries earlier this year of registrants to understand the types,
extent of use, and accounting for repurchase agreements and other similar transactions; and (3) the SEC’s conclusion that there was
insufficient disclosure related to these types of transactions and other similar arrangements.
The proposed rule would require registrants to disclose more information about their short-term borrowing arrangements
and therefore help investors better understand a registrant’s financings during a period as well as at period-end. The enhanced disclosures aim to improve transparency and give investors the information they need to understand how registrants finance their
operations.
Click to download:
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24 September 2010: Notes from special September IASB meeting
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The IASB met in London on 24 September 2010 for the special meeting for the month. 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. The next IASB meeting is expected to occur on 5 October 2010.
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24 September 2010: Spanish translation of IFRS Taxonomy 2010
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The IFRS Foundation today published the Spanish translation of the complete label linkbases for the IFRS (International Financial Reporting Standards) Taxonomy 2010. It is the first planned translation of the IFRS Taxonomy 2010 into a number key languages that will be published over the coming months. Access the Spanish label linkbases and accompanying support materials is available on the IASB website.
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24 September 2010: Employee Benefits Working Group issues agenda and observer notes
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Further to our previous story, the agenda and observer notes for the Employee Benefits Working Group meeting being held on Monday 27 September 2010 are now available on the IASB website.
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24 September 2010: Deloitte survey reveals support for harmonisation of Islamic accounting standards with IFRS
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The Deloitte Islamic Finance Knowledge Center (IFKC) has released a report entitled The Deloitte Islamic Finance leaders survey in the Middle East - Benchmarking practices (PDF 1,928k), which analyses the first survey outcomes in a biannual series targeted at industry practitioners and leaders of Islamic Financial Institutions (IFIs) in the Middle East.
This report has been constructed based on an online survey sent out to executives, practitioners, and policymakers. Face to face interviews were conducted with heads of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the International Islamic Financial Market (IIFM) to give an update on current concerns on the regulatory and practice front.
In relation to accounting standards for Islamic finance, the survey found 79% of the industry leaders surveyed support a convergence initiative of the AAIOFI standards with IFRS, while 7% do not support the convergence. The report notes the following:
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We recognize the challenges that arise from seeking a convergence discussion between the AAOIFI Islamic Accounting Standards (IASs) and other international accounting bodies such as the IASB, FASB, and the UK Accounting Standard Board (ASB). In the past, Islamic Finance stakeholders have voiced concerns about any possible convergence. The impact of the global financial crisis on the Islamic Finance industry and other interrelated factors have made it necessary to reconsider the commitment to improving consultations between these standard-setters and the AAOIFI. It is crucial, however; that any discussion of convergence between the AAOIFIs’ IASs and IFRSs should address the particular differences of Islamic Finance modes of financing, contracts, profit-sharing and equity structures.
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23 September 2010: FASB Announces roundtable meetings on the IASB staff draft on consolidated financial statements
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The FASB will host two public roundtable meetings on the IASB staff draft with which the IASB plans to replace IAS 27, Consolidated and Separate Financial Statements and SIC-12, Consolidation — Special Purpose Entities, on consolidated financial statements. For more information, see our Consolidations page.
- Topic: Roundtable meeting on the IASB staff draft on consolidated financial statements
- Date and time: Monday, 25 October 2010, Session 1 9:00 pm – 12:00 pm EDT; Session 2 1:00 pm – 4:00 pm. [Date changed: Monday, 22 November 2010, Session 1 8:00 am – 11:00 am EDT; Session 2 12:00 pm – 3:00 pm]
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Venue: FASB offices, 401 Merritt 7, Norwalk, Connecticut
- More information on registration:
Click Here
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23 September 2010: CESR Activity Report
on IFRS enforcement 2009
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The Committee of European Securities Regulators (CESR) has published its first annual activity report on monitoring enforcement of International Financial Reporting Standards (IFRS) in Europe. The report shows both an increase in regulators’ enforcement activities and greater consistency regarding the actions taken by enforcers. As part of the 2009 IFRS enforcement activities, EU enforcers also identified an overall improvement in the quality of reporting under IFRS, since its adoption in Europe. Nevertheless, the report also presents those areas identified by enforcers on which listed companies are urged to focus further, in order to ensure improvements in the information provided to investors.
For the report, European enforcers performed full review of around 1200 companies’ accounts (annual and
interim), covering in the region of some 18% of listed entities in Europe. Some 900 accounts were subject to partial review, representing a coverage of 15% of the
population of listed entities. The main themes selected by European enforcers were: impairment
of assets, financial instruments disclosure, operating segments, going concern,
and current/noncurrent
classification of liabilities.
The report is available on CESR's website
(PDF 249k); it is accompanied by a
press release (PDF 167k). |
23 September 2010: SEC Chief Accountant speaks about IFRSs at biannual Forum of National Standard Setters
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Last weekend’s biannual Forum of National Standard Setters,
held behind closed doors in Rome, had a presentation from Jim Kroeker,
Chief Accountant, Office of the Chief Accountant at the SEC, and his
Deputy, Paul Beswick, as its highlight and opening address. This rare
appearance of the SEC’s accounting experts only weeks before the SEC
is expected to release a progress report on the Workplan which aims to
prepare the ground for a decision over whether or not the US will transition to
IFRS raised expectations. The presentation did not disappoint.
Both men were appropriately guarded in their comments but left
the audience with the impression that no insurmountable problems had been identified.
Read more in our new Robert Bruce Column. |
23 September 2010: Deloitte Australia 'Extracting Value' publication
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Deloitte Australia's Energy & Resources group has published Issue 9 of its Extracting Value publication (PDF 266k), discussing Draft Interpretation DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine, which is open for comment until 30 November 2010.
There is widespread use in Australia of the 'stripping ratio' approach to account for waste and overburden removal cost during the production phase of a mining operation. The publication discusses the issues arising in the Australian context from the proposals in DI/2010/1.
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22 September 2010: Newsletter on lease accounting in the retail industry
22 September 2010: Deadline reminder – ED on statement of comprehensive income
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We remind you that comments on the Exposure Draft
Presentation of Items of Other Comprehensive Income are due on
30 September 2010. The ED proposes to require that all entities present profit or loss and other comprehensive income (OCI) in separate sections of a single continuous statement. This would amend
IAS 1, which currently allows entities a choice of presenting results of operations either (a) in a single, continuous statement similar to the proposal in the ED or (b) in two separate statements – an income statement and a statement of comprehensive income. |
22 September 2010: Japanese translation of IFRIC Review
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Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation (PDF 234k) of the September 2010 edition of our IFRIC Review newsletter, discussing the IFRS Interpretations Committee meeting held on 2-3 September 2010. Here is the English Version (PDF 83k).
We have put permanent links to all Japanese translations of the IFRIC Review newsletters on our Japan country page. The Japan Center of Excellence IFRS web pages are Here (in Japanese).
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21 September 2010: Spanish translation of our IFRS in Focus newsletter on insurance contracts
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Deloitte Colombia has published a Spanish translation of our IFRS in Focus newsletter
on insurance contracts:
Contratos de seguro
(PDF 85k). Here is the English version:
Insurance Contracts (PDF 105k).
Click for:
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21 September 2010: German translation of our IFRS in Focus newsletter on leases
21 September 2010: Australia considers extending consolidation and related exemptions
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The Australian Accounting Standards Board (AASB) has issued an exposure draft which would permit more Australian entities to avoid consolidation under AASB 127 Consolidated and Separate Financial Statements, equivalent to IAS 27 of the same name. Similarly, extensions of the exemptions in the Australian equivalents to IAS 28 and IAS 31 are also proposed.
Under Australian Accounting Standards, some entities, including not-for-profit entities and entities applying the AASB's differential reporting regime, are not able to state compliance with IFRS due to specific Australian requirements or disclosure exemptions. The AASB's proposals in ED 205 Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation would permit entities that are otherwise compliant with Australian Accounting Standards to take advantage of the exemptions in IAS 27, IAS 28 and IAS 31 in some cases.
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21 September 2010: Updated project plan for Japanese Standard Setter
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The Accounting Standards Board of Japan (ASBJ) has announced its updated project plan through to 2011. In addition to tracking the various IASB projects, the ASBJ intends to deal with business combinations, goodwill and intangibles, consolidation of SPEs, quarterly reporting and subsequent events.
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21 September 2010: Call for United States not to overlook IFRS for SMEs
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The Institute of Chartered Accountants in England and Wales (ICAEW) has submitted a comment letter to the United States AICPA/FAF/NASBA "Blue-Ribbon" Panel on Standard Setting for Private Companies. The 'Blue Ribbon' Panel is currently seeking input on the preparation of private company financial statements in the United States.
As noted in our earlier story, the 'Blue Ribbon' Panel appears to prefer a 'home grown' alternative to the possible adoption of the IFRS for SMEs in the United States. The ICAEW's comment letter recommends the Panel reconsiders the IFRS for SMEs. An extract follows:
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We note... that the Panel has already decided not to consider any IFRS-based approaches, and to focus exclusively on US GAAP based options. We understand that the reason for this is that even if IFRS were to be adopted for US companies, adoption would not in fact take place for at least five years... we believe that there is a case for considering the IFRS for SMEs as an option even if IFRS is not adopted for US listed companies in the near future. If IFRS is in fact adopted, either in five years’ time or at some later date, the experience that will have been gained through familiarity with the IFRS for SMEs would facilitate the eventual transition process. The Panel may therefore wish to reconsider its exclusion of any option based on IFRS, and in particular the IFRS for SMEs.
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20 September 2010: XBRL Canada fourth annual convention
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The fourth annual XBRL Canada convention will take place on October 6 and 7 at the Toronto Convention Centre. Details of the convention outline are below:
- October 6 — Morning Sessions
The morning sessions will feature speakers from the IASB, SEC and some companies who have filed XBRL data with the SEC. The focus will be on practical issues.
- October 6 — 1PM – 4PM – IFRS Taxonomy Workshop – led by Eric Cohen, CPA
The workshop will provide hands-on experience with using the IFRS XBRL taxonomy
- October 7 — 8:30AM – 10:00PM Understanding XBRL
This seminar will provide a thorough introduction to the basics of XBRL – what it is, how it works, how it is used, etc.
- October 7 — 10:30AM – 4:30PM Quality and Assurance Workshop – Led by Efrim Boritz, PhD, FCA
This research oriented workshop will explore the risks involved in XBRL tagging and how those risks might be addressed.
Registration for the convention is available on the XBRL Canada site.
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20 September 2010: FASB Discussion Paper on Insurance Contracts
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The US Financial Accounting Standards Board (FASB) has issued a Discussion Paper
(DP) to solicit broad-based input on how to improve, simplify, and converge the financial reporting requirements for insurance contracts. The DP is part of the FASB’s joint project with the International Accounting Standards Board (IASB). In July 2010, the IASB issued an
Exposure Draft (ED) without the FASB after it became clear that agreement between the two
standard setters could not be reached on all points in question. The proposed international financial reporting standard
(IFRS) would apply to all insurance contracts written by both insurance companies and noninsurance companies. The FASB DP
now published is a wrap-around invitation to comment on the IASB ED and asks stakeholders to provide input about the following:
- Whether the IASB’s proposal would be a sufficient improvement to U.S. GAAP to justify the cost of change;
- Whether the project goals of improvement, convergence, and simplification would be more effectively achieved by making targeted improvements to existing U.S. GAAP (rather than issuing comprehensive new guidance); and
- Certain critical accounting issues for which the preliminary views of the FASB differ from the IASB’s ED.
Comments on the DP are due on 15 December 2010. Click for:
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20 September 2010: IASB to hold special meeting on 24 September
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The IASB will meet in London on Friday 24 September for a short special meeting to discuss the fair value option for financial liabilities.
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20 September 2010: Q&A report from recent Deloitte global financial reporting Dbriefs webcast
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On 8 September 2010, we hosted a Deloitte Dbriefs webcast on global financial reporting, entitled IFRS: Important Third Quarter Developments. A 'Q&A Report' has been published containing a summary of audience questions submitted during the live webcast and our suggested answers. Topics covered include the IASB's proposals on financial statement presentation, revenue recognition and leases.
The next global financial reporting Dbriefs webcast is scheduled for the next quarter. Click for:
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17 September 2010: EITF Snapshot for September 2010
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We have posted the September 2010 edition of EITF Snapshot (PDF 129k)
summarising the 16 September 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-G Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts – Final consensus
- Issue 09-H Health Care Entities: Revenue Recognition – Consensus-for-exposure
- Issue 10-A How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill
Impairment Test – Consensus-for-exposure
- Issue 10-B Accounting for Multiple Foreign Currency Exchange Rates – No consensus reached
- Issue 10-C Reporting Loans to Participants by Defined Contribution Pension Plans – Final consensus
- Issue 10-E Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate – No consensus reached
- Issue 10-G Disclosure of Supplementary Pro Forma Information for Business Combinations – Consensus-for-exposure
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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17 September 2010: Russell Golden named to US Financial Accounting Standards Board
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The Board of Trustees of the United States Financial Accounting Foundation (FAF) has announced the appointment
of Rusell G. Golden to the Financial Accounting Standards Board (FASB), effective 1 October 2010. Mr. Golden's initial term
will expire 30 June 2012, as he will be serving the remainder of the term vacated by Chairman Herz, who is stepping down as
of 1 October. The press release notes the following in regards to the two remaining open positions on the FASB:
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As announced by the FAF Trustees on August 24, 2010, the FASB will return to a seven-member structure. The
Board of Trustees is engaged in processes to recruit and evaluate candidates for the two additional seats and to evaluate
candidates for appointment as FASB Chairman. FASB member Leslie F. Seidman will assume the role of Acting Chairman as of
October 1, 2010, as previously announced.
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Click here to go to the FAF press release (link to the FAF website).
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17 September 2010: Notes from Day 3 of the September IASB meeting
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The IASB met in London on Thursday 16 September for the third day of its regular monthly meeting. 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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17 September 2010: Japanese translation of our IFRS in Focus newsletter on insurance contracts
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Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation of the following IFRS in Focus newsletter: Insurance contracts (PDF 111k). Here is the English Version (PDF 105k).
We have put permanent links to all Japanese translations of the IFRS in Focus newsletters on our
Japan Page. The Japan Center of Excellence IFRS web pages are Here (in Japanese).
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16 September 2010: Upcoming IASB/FASB roundtables announced
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The International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards Board (FASB) plan to hold a series of public roundtable meetings between November 2010 and January 2011 for the Revenue Recognition, lnsurance Contracts and Leases projects.
Revenue Recognition
- Thursday 4 November in Norwalk, Connecticut, USA
- Monday 8 November in Kuala Lumpur, Malaysia
- Wednesday 10 November in London, UK
- Tuesday 23 November in California, USA
Insurance Contracts
Tuesday 7 December Thursday 9 December in Tokyo, Japan - Thursday 16 December in London, UK
- Monday 20 December in Norwalk, Connecticut, USA
Leases
- Friday 17 December in London, UK
- Monday 20 December in Hong Kong
- Wednesday 5 January in Chicago, Illinois, USA
- Thursday 6 January in Norwalk, Connecticut, USA
Registration will be opened shortly, and details of how to register to participate (including the deadline for registrations) will be announced soon on the IFRS Revenue Recognition, Insurance Contracts, and Leases project pages.
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16 September 2010: PCAOB announces participants in roundtable on communications with audit committees
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Further to our story on 8 September, the U.S. Public Company Accounting Oversight Board (PCAOB) has released the agenda and announced the participants to the
public roundtable regarding its proposed standard on auditors' communications with audit committees on Tuesday,
21 September 2010. The participants include representatives of audit committees, investors, auditors, issuers and others:
- Dennis R. Beresford, Ernst & Young Executive Professor of Accounting, Terry
College of Business, The University of Georgia, and Director on the board
of various public companies
- Jeb Burns, Chief Investment Officer, Municipal Employees Retirement
System of Michigan
- Roger Coffin, Associate Director Weinberg Center of Corporate Governance,
Associate Professor of Practice, University of Delaware
- J. Michael Cook, Director on the board of various public companies
- James D. Cox, Brainerd Currie Professor of Law, School of Law, Duke University
- Robert Dohrer, National Director of Assurance Services, McGladrey &
Pullen, LLP
- Lisa Gaynor, Assistant Professor of Accounting, University of South Florida
- Linda L. Griggs, Partner, Morgan, Lewis & Bockius LLP
- Arnold C. Hanish, Vice President of Finance and Chief Accounting Officer,
Eli Lilly & Company
- Patricia Ann K. Harvey, Vice President, Corporate Audit and Enterprise Risk
Management, Delta Air Lines
- Judith Richards Hope, Distinguished Visitor from Practice and Professor,
Georgetown University Law School, and Director on the board of various
public companies
- Gary Kabureck, Vice President and Chief Accounting Officer, Xerox Corporation
- Robert Kueppers, Deputy Chief Executive Officer, Deloitte LLP
- Alex J. Mandl, Non-Executive Chairman, Gemalto, N.V., and Director on the board of various public companies
- Mary Hartman Morris, Investment Officer, Global Equity, California Public
Employees' Retirement System
- George Munoz, Principal, Munoz Investment Banking Group, LLC, and Director on
the board of various public companies
- Donald T. Nicolaisen, Former Chief Accountant, Securities & Exchange
Commission, and Director on the board of various public companies
- Samuel Ranzilla, Audit Partner and National Managing Partner, Audit Quality and
Professional Practice, KPMG LLP
- Lawrence Salva, Senior Vice President, Chief Accounting Officer and Controller,
Comcast Corporation
- R. Harold Schroeder, Portfolio Manager-U.S. Financials, Carlson Capital
- Lynn E. Turner, Senior Advisor and Managing Director, LECG
- Joan Waggoner, Partner in Charge of Quality Assurance, Blackman Kallick LLP
- Karen Hastie Williams, Director on the board of various public companies
The roundtable will be open to the public, and also audible via Webcast and podcast on the PCAOB Web site.
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16 September 2010: Edition 2 of 'Tracking IFRS' from Deloitte India issued, discussing first-time adoption
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Publication First-time adoption: IFRS 1 vs. Indian IFRS 1 - Convergence made easy ('Tracking
IFRS' Issue 2) withdrawn as of February 2011 as the relevant previous Ind AS exposure draft has been revised significantly;
an up-to-date comparison is included in Issue 8 (please refer to
our list of 'Tracking IFRS' issues). |
15 September 2010: Notes from Day 2 of the September IASB meeting
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The IASB met in London on Wednesday 15 September for the second day of its regular monthly meeting, much of it a joint meeting with the FASB. 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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15 September 2010: IASB decides to continue project to replace IAS 37
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During today's meeting, the IASB decided, by a large majority, to continue to develop an IFRS to
replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets with an expected measurement model, but to
reconsider aspects of the measurement requirements with a view to address reliability and cost-benefit concerns. As part
of this process, the IASB will reconsider the proposal to require a risk adjustment and/or the need for further guidance
on how to measure the risk adjustment. The IASB will also consider whether further action is needed to address concerns
about the difficulties and risks of applying the proposals to US litigation. The IASB will continue to discuss the key
issues identified from the comment letters received, subject to the pressures of finalising the existing MoU projects and
hopes to publish an Exposure Draft by June 2011.
Detailed Deloitte observer notes from the meeting are available Here. More information on the project is available in our Liabilities: IAS 37 Amendments project page.
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15 September 2010: Update on IASB outreach activities
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As part of its outreach activities, the IASB regularly undertakes a number of discussion group forums in various locations around the globe. Usually hosted by local standard setters, these forums provide a way for the IASB to communicate with constituents on its plans and understand local jurisdictional impacts. Accordingly, these forums present a unique opportunity for constituents not only to better understand the IASB's proposals, but also to put forward their suggestions and concerns.
The table below summarises outreach meetings planned in the coming weeks:
| Date | Location (Host) | Topics | More information |
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| 28 September 2010 | Brussels, Belgium (EFRAG) | General update, Financial instruments, Revenue recognition, Leases | EFRAG site |
| 4-5 October 2010 | Singapore (Accounting Standards Council) | General update, Insurance contracts, Leases, Revenue recognition | ASC site |
| 7-8 October 2010 | Kuala Lumpur, Malaysia (Malaysian Accounting Standards Board) | Revenue recognition, Leases, Consolidation, Insurance contracts (latter by invitation only) | MASB site |
| 11 October 2010 | Paris, France (Autorité des Normes Comptables (ANC)) | To be confirmed | To be confirmed |
| 13 October 2010 | Oslo, Norway (Norwegian Accounting Standards Board) | General update, Revenue recognition, Leases | NASB site |
| 14 October 2010 | Copenhagen, Denmark (Foreningen af Statsautoriserede Revisorer) | General update, Revenue recognition, Leases | To be confirmed |
Click for IASB outreach page (link to IASB website).
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14 September 2010: Notes from Day 1 of the September IASB meeting
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The IASB met in London on Tuesday 14 September for the first day of its regular monthly meeting. 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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14 September 2010: Update on United States private company reporting
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The FASB has issued a Media Advisory it will host two public roundtable meetings to discuss issues relating to existing accounting and reporting standards as they affect private companies. The roundtables will be held on 10 October 2010 and 2 November 2010 and will include discussion on Consolidation (Codification Topic 810, originally issued as FASB Interpretation 46(R)) and Income Taxes (Codification Topic 740, originally issued as FASB Interpretation 48).
As noted in our earlier story, the United States AICPA/FAF/NASBA "Blue-Ribbon" Panel on Standard Setting for Private Companies is seeking input on the preparation of private company financial statements in the United States. Submissions close on 15 September 2010.
The Financial Accounting Foundation (FAF) has also released an 'In Focus' publication providing an update on the Blue-Ribbon Panel's activities, including the outcomes of recent meetings. The Blue-Ribbon Panel appears to prefer a 'home grown' alternative to the possible adoption of the IFRS for SMEs. The next meeting of the Panel is scheduled for 8 October 2010. Following is an extract from the 'In Focus' publication summarising the most recent Panel meeting:
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...the panel began its discussion of alternative standard-setting models and structures. Most panelists preferred one of three models:
- Keep current U.S. GAAP, but improve the system for considering potential differences for private companies
- Reorganize U.S. GAAP into a "baseline" for all entities, with separate public company add-ons
- Create a separate stand-alone private company GAAP based on current U.S. GAAP (similar to what Canada has done with Canadian GAAP).
Panel members also indicated that private companies should not be leading any charge to IFRS in the United States.
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Click for:
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14 September 2010: Upcoming webcasts from Deloitte Canada
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Deloitte (Canada) is holding two 'Deloitte update' webcasts on financial reporting topics during September:
- Quarterly technical update - an overview of the key IFRS highlights since June 2010, including developments at the international standard setter level and those specific to Canada
- Revenue recognition proposals - an overview of the proposed revenue recognition standard, highlights of the potential impact on current practices and industry specific issues.
The live webcasts are offered free of charge (registration is required). Details are below:
- Topic: IFRS Quarterly Technical Update
- Date and time: 21 September 2010 2:00 pm – 3:30 pm EDT (CA)
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More information on the webcast and registration:
Click here
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- Topic: IASB/FASB Revenue Recognition Webcast
- Date and time: 27 September 2010 2:00 pm – 3:30 pm EDT (CA)
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More information on the webcast and registration:
Click here
- More information about the revenue project on IAS Plus:
Click Here
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13 September 2010: Deloitte US to host financial instruments roundtable
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Deloitte & Touche LLP (United States) will host a financial instruments roundtable on 28 September with
guest speaker John Smith, board member of the IASB. During the roundtable several financial instruments topics will be
discussed, including:
- Update on the FASB’s Accounting for Financial Instruments Exposure Draft (ED)
- Latest deliberations on IASB’s expected loss impairment model and other related implementation issues
- Potential changes by FASB and IASB related to Offsetting of Financial Asset and Financial Liabilities
- Business and reporting implications of the FASB/IASB Leases ED
Details of the roundtable:
- Title: IASB/FASB Financial Instruments Roundtable
- Date and time: 28 September, 8:00am to 12:30pm EDT
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Venue: Harvard Club, 35 West 44th Street, New York, New York
- More information about the roundtable and registration:
Click Here
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13 September 2010: IFRIC Review newsletter issued
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The September 2010 edition of IFRIC Review has been issued. The IFRIC Review newsletter examines
matters discussed at the IASB's IFRS Interpretations Committee (IFRIC). The September edition (PDF 83k)
discusses the IFRIC meeting held on 2-3 September 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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13 September 2010: IASB and ASBJ meet to discuss convergence
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On 9-10 September, the IASB met with the Accounting Standards Board of Japan (ASBJ) for the twelfth
time to discuss convergence of Japanese generally accepted accounting principles and IFRSs, and to discuss preparations
for the intended adoption of IFRSs in Japan. A Press Release (PDF 48k)
issued by the IASB summarizes the discussions of the two boards on the following topics:
- financial instruments (classification and measurement of financial liability, impairment and hedge accounting)
- consolidation
- leases
- revenue recognition
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13 September 2010: AICPA issues FAQ on leases proposals
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The American Institute of Certified Public Accountants issued a frequently asked questions (FAQ)
document on the recent FASB and IASB joint proposals on leases. This FAQ discusses the background of the project, its
applicability to different industries, the proposed leases model and other issues.
Click for:
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13 September 2010: New Quarterly Accounting Alert from Deloitte New Zealand
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Deloitte (New Zealand) has published a new Quarterly Accounting Alert (PDF 276k) which provides a high level overview of new and revised financial reporting requirements that need to be considered for annual and interim financial reporting periods ending on 30 September 2010.
The alert covers:
- The big picture issues for September 2010 - the 'next wave' of IFRS, global financial crisis and financial reporting and other considerations (including the Christchurch earthquake)
- The new and revised accounting pronouncements for September 2010 - standards, amendments and Interpretations.
Click to download the Quarterly Accounting Alert (PDF 276k). Past editions of the New Zealand Accounting Alerts are available here.
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11 September 2010: New issue of the IASB's Investor Perspectives
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In April 2010, the Trustees of the IFRS Foundation and the IASB launched a
programme to enhance investors’ participation in the development of International Financial Reporting Standards (IFRSs). One of the enhancements is a newsletter for investors. Board members Stephen Cooper, Patrick Finnegan and Patricia McConnell publish timely updates on financial reporting matters. A new issue of the Investor Perspectives is now available:
All Investor Perspectives are archived on the
IASB's website.
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10 September 2010: FASB to host five public roundtables on its financial instruments exposure draft
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The FASB has issued a Media Advisory to announce five roundtables over three days in October 2010 to elicit feedback
on its proposed Accounting Standards Update Accounting for Financial Instruments and Revisions to the Accounting for
Derivative Instruments and Hedging Activities—Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815).
The participants at each roundtable will consist of preparers, auditors, and users of financial statements. The FASB's
financial instruments project is a joint project with the IASB.
Click for:
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10 September 2010: IASB proposes to amend accounting for deferred tax
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The International Accounting Standards Board (IASB) today published for public comment an exposure draft 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.
The presumption would apply when investment properties, property, plant and equipment or intangible assets are remeasured at fair value or revalued at fair value. The exposure draft ED/2010/11 Deferred Tax: Recovery of Underlying Assets is open for comment until 9 November 2010.
Click for:
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10 September 2010: Updated summary of agenda rejections by the Interpretations Committee
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We have updated our Summary of Issues Not Added to the Agenda of the Interpretations Committee to reflect the Committee's final decisions at its
September 2010 meeting not to add the following topics to its agenda. Our summary now includes 187 issues:
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Repeat application of IFRS 1
- IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayments of investments and foreign currency translation reserve
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10 September 2010: Joint IASB-FASB webcast on financial statement presentation
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The IASB and FASB have released a recorded webcast ('webinar') on the Financial Statement Presentation project, in particular the Boards' decisions on the statement of cash flows reflected in the July 2010 staff draft of the forthcoming exposure draft arising from the project.
The webinar discusses the Boards' rationale in developing the proposals, changes from the October 2008 Discussion Paper and changes from current practice.
The recorded webcast is presented by Patricia McConnell (IASB) and Marc Siegel (FASB). It is offered free of charge (registration is required) and will be available for viewing until 9 December 2010. Click for:
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9 September 2010: EFRAG outreach meetings on the IASB’s Financial Statement Presentation project
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On 1 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, preliminary views
of the European Financial Reporting Advisory Group (EFRAG) are representative of European views, EFRAG has decided to organise outreach events throughout Europe from September to November 2010, in partnership with European National Standard Setters. To avoid any duplication of effort, EFRAG has decided to invite the IASB to participate in these events.
The objective of these events is to
- present the IASB’s tentative decisions to constituents;
- present EFRAG’s tentative views, highlighting areas of support and focusing on areas of concern;
- seek views from constituents in Europe on the proposals; and
- seek views from constituents in Europe on possible improvements to those proposals.
Tentative locations and dates are, as follows:
- Amsterdam : Tuesday 26 October 2010
- Helsinki : Monday 15 November 2010
- Warsaw : Friday 26 November 2010
- Stockholm : Monday 22 November 2010
- Oslo : Friday 19 November 2010
- Madrid : Tuesday 23 November 2010
- Italy : timing and location to be confirmed
- UK: timing and location to be confirmed
More Information on the outreach activities is available in the
EFRAG press release
(link to EFRAG website).
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9 September 2010: Deloitte IFRS newsletter on stripping costs in Japanese
9 September 2010: Joint IASB-FASB webcast on the impacts of the revenue proposals on the construction industry
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On Monday 13 September 2010, the IASB and the FASB will hold a joint webcast to discuss the Exposure Draft Revenue from Contracts with Customers and the potential effects of the proposals on the construction industry.
The live webcast is offered free of charge. Viewers will have the opportunity to email questions during the event.
- Topic: Revenue Recognition Project: Potential Effects on the Construction Industry
- Date and time: Monday, 13 September 2010, 11:00–12:15pm EDT (US) / 4:00–5:15pm BST (UK)
-
More information on the webcast and registration:
Via FASB, Via IASB
- More information about the revenue project on IAS Plus:
Click Here
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8 September 2010: Deloitte comment letter on the IASB's proposed changes to fair value measurements
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Deloitte's IFRS Global Office has submitted a letter of comment to the IASB on exposure draft
ED/2010/7 Measurement Uncertainty Analysis Disclosure for Fair Value
Measurements, which was published in June 2010.
The exposure draft proposed minor amendments to the May 2009 ED on fair
value measurement. The May 2009 ED proposed a three-level fair value hierarchy that categorises observable and
non-observable market data used as inputs for fair value measurements. Under that hierarchy, Level 3 inputs are
'unobservable inputs' used for the fair value measurement of assets or liabilities for which market data are not
available. Required disclosures would include a 'measurement uncertainty analysis' (sometimes called a 'sensitivity
analysis'). The June 2010 ED would enhance the original proposal by requiring the measurement uncertainty analysis
disclosure to reflect the interdependencies between unobservable inputs used to measure fair value in Level 3.
Below is an excerpt from the comment letter:
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We support the Board’s efforts to enhance the disclosures for fair value measurements that are categorised
within Level 3 of the fair value hierarchy and the concept of a measurement uncertainty analysis disclosure for
Level 3 fair value measurements. However, we have concerns about whether the proposed measurement
uncertainty disclosure in the ED is operational. Entities are likely to encounter operational difficulty in
applying the proposed guidance because of a lack of clarity about:
- the threshold for identifying alternative inputs;
- the inputs to use when there is a range of reasonable inputs and which techniques to use when there
are multiple techniques (each with a range); and
- the objective of the correlation assessment.
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8 September 2010: CEBS publishes a statement on the disclosure of sovereign exposures in the context of the 2010 EU-wide bank stress tests
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Further to our previous story on the bank stress tests performed earlier this year,
the Committee of European Banking Supervisors (CEBS) issued a statement to clarify the details of key criteria used
in the disclosures of banks exposures to sovereign debt.
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8 September 2010: PCAOB to host roundtable on communications with audit committees, reopens comment period on proposal
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The US Public Company Accounting Oversight Board (PCAOB) will host a
public roundtable regarding its proposed standard on auditors' communications with audit committees on Tuesday,
21 September 2010. The roundtable will include audit committee members, investors, auditors, issuers, and others. In
light of the roundtable, the Board is reopening the comment period on the proposal until 21 October 2010.
Click for:
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8 September 2010: Agenda for September 2010 IASB meeting
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The IASB will hold its monthly meeting for September 2010 at
its offices in London from 14 to 16 September 2010. Portions 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. All meeting
times are British Summer Time (BST).
IASB Board Meeting Agenda
14-16 September 2010, London |
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Tuesday 14 September 2010
IASB Meeting (10:45-17:15)
Wednesday 15 September 2010
IASB Meeting (10:00-11:30)
IASB-FASB Joint Meeting (12:00-19:00)
Thursday 16 September 2010
IASB Meeting (09:30-18:00)
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8 September 2010: New IFRS Insights newsletter
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We have posted the IFRS Insights Newsletter for August 2010 (PDF 600k) from Deloitte & Touche LLP (United States). IFRS Insights is a newsletter on IFRS aimed at US companies. This issue includes:
- A discussion on the importance of using a program management office (PMO) to coordinate IFRS efforts
- Why companies may want to consider if a change to their transfer pricing is - or will be - warranted
- An overview of the IASB and FASB exposure drafts on revenue recognition
- An industry feature for oil and gas companies.
We have Permanent Links to all IFRS Insights on our USA country page.
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8 September 2010: IFRS Roadmap for Nigeria established
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Further to our previous story, further details about IFRS adoption in Nigeria have been released. The Nigerian Accounting Standards Board (NASB) has announced a staged implementation of IFRS, as follows:
- Publicly listed entities and significant public interest entities are expected to implement IFRS by 1 January 2012
- Other public interest entities are expected to implement IFRS by 1 January 2013
- Small and medium-sized entities are expected to implement by 1 January 2014.
NASB has also been directed by the Nigerian government to immediately create a centre of excellence to cater for regulators, auditors and other professional accountants in the understanding of the IFRS. Click for:
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7 September 2010: Newsletter on stripping costs in the production phase of a surface mine
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Deloitte's IFRS Global Office has published an
IFRS in Focus Newsletter – IFRS Interpretations Committee issues Draft
Interpretation on Stripping Costs in the Production Phase of a Surface Mine (PDF 74k). This newsletter describes
the recent IFRS Interpretations Committee draft Interpretation DI/2010/1 Stripping Costs in the Production Phase of
a Surface Mine. The draft Interpretation was developed in response to a request for guidance on accounting for
waste removal costs incurred in the production phase of a surface mine. The draft Interpretation addresses the
following issues:
- whether the definition of an asset is met;
- when the stripping campaign component should be recognised; and
- how the stripping campaign component should be measured at initial recognition and subsequently.
The draft Interpretation comment period ends on 30 November 2010.
Click for:
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7 September 2010: Library of Snapshot documents
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An online library of
'Snapshot' documents has been made available on the IFRS Foundation website.
Snapshot documents are published by the IASB and IFRS Foundation to accompany due process documents. They provide a high level summary of proposals and are available to download free of charge from this website.
So far snapshots on the following projects have been made
available (click through for project summaries on IAS Plus):
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7 September 2010: New financial supervisory framework for Europe
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On Thursday 2 September the European Parliament, the Council and the European Commission reached a political consensus
on the creation of new financial supervisory framework for Europe.
Currently, the financial services sector in Europe is overseen at EU level by three
"coordinating committees" that only have advisory powers:
- the Committee of European Banking Supervisors (CEBS)
- the Committee of European Insurance and Occupational Pensions Committee (CEIOPS)
- the Committee of European Securities Regulators (CESR)
These will now be replaced by the following regulatory authorities
offering direct EU supervision of systemically important financial institutions:
- European Banking Authority (EBA)
- European Insurance and Occupational Pensions Authority (EIOPA)
- European Securities and Markets Authority (ESMA)
The EBA, EIOPA and ESMA will be empowered to draft regulatory financial standards, which will be made legally binding by the Commission (and then legislated into effect in the member states). The agencies would be able to over-ride national decisions that do not conform to EU regulations.
In addition, a European Systemic Risk Board (ESRB) will be established which will monitor and assess potential threats to financial stability that arise from macro-economic developments and from developments within the financial system as a whole.
The legislation is expected to be passed by the plenary assembly of
the European Parliament on 21 September 2010. The new regulatory authorities
could start working as early as 1. January 2011. More information about the new
authorities can be found
here (link to the European Commission page).
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7 September 2010: IFRS Advisory Council comments on IASB's work plan post 2011
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The IASB has published the recommendations of the IFRS Advisory Council in relation to the IASB's post-2011 work plan.
The recommendations include a comment that the strategy, work plan and priorities of the IASB should reflect its objectives as set out in the IASB Constitution. The recommendations also seek to allow the new IASB Board to become better oriented before making extensive longer-term commitments, and would ease the transition from the old to the new Board. It also notes "convergence is not an objective as such and is intended merely as an interim step to facilitate adoption of IFRS".
In summary terms, the recommendations are:
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Basic policies
- Focus on serving those who have adopted or wish to adopt IFRS. Convergence is no longer a prime consideration.
- Retain the current objective of serving the reporting needs of capital market participants for profit-oriented entities.
Short- to medium-term objectives
- Provide a period of calm in issuing new standards to bed down the numerous new and revised standards coming into effect. Stand ready to assist in resolving implementation issues. Assess proposals for new standard-setting projects against strict selection criteria. Provide some capacity and flexibility to deal with unforeseen urgent issues without disrupting the work plan.
- Allocate significant resources to ensuring that the standards are interpreted and applied with an appropriate degree of consistency, and that they are producing the intended results. Post-implementation reviews become a significant activity.
- Expedite completion of the conceptual framework project and developing a disclosure framework.
- Monitor trends and developments that are likely to affect financial reporting in the future.
Interaction with constituents
- Manage the relationship between IFRS and IFRS for SMEs. The first periodic update of IFRS for SMEs will be particularly challenging because of the recent spate of new or revised standards.
- Continue and expand outreach activities with particular emphasis on users and emerging markets.
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Click for access to the recommendations (link to IASB website). We have a page on the Advisory Council Here.
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7 September 2010: Deloitte IFRS newsletter in Japanese
7 September 2010: IFRS Foundation publishes Spanish translation of IFRS for SMEs training material
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The IFRS Foundation has published a Spanish-language translation of the first batch of its training material for the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).
The training material is designed to assist companies and accounting practitioners in applying the IFRS for SMEs, as well as serving as a tool for educators in teaching how to apply the standard. To date, 21 English-language and nine Spanish-language modules are available to download. The Spanish-language translations are available Here. The English editions are available Here. Permanent links to IFRS for SMEs resources are available on our IFRS for SMEs page. |
6 September 2010: Deloitte comment letter on the IASB's proposed changes to defined benefit plan accounting
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Deloitte's IFRS Global Office has submitted a letter of comment to the IASB on exposure draft ED/2010/3 Defined Benefit Plans - Proposed Amendments to IAS 19 Employee Benefits, which was published in April 2010.
The proposals would amend the accounting for defined benefit plans through which some employers provide long-term employee benefits, such as pensions and post-employment medical care. Key proposals include the elimination of the 'corridor' approach for accounting for pensions, splitting of gains and losses on defined benefit plans (and other long-term employee benefits) into three components with remeasurements being presented as part of other comprehensive income (OCI), and new disclosures.
Below is an excerpt from the comment letter:
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We support the Board’s proposal to eliminate the option to defer recognition of changes in defined benefit assets and liabilities because the current deferred recognition represents a smoothing mechanism that often fails to capture and present relevant information on the status of the defined benefit plans. Further, the deferred recognition approach is inconsistent with the definition and recognition criteria of assets and liabilities in the Framework and it represents a source of complexity within IAS 19.
However, we do not support introducing other proposed changes, including a new presentation method, the elimination of the expected rate of return on plan assets and changes in definitions of employee benefits, in this short-term project. We believe these issues should be reconsidered as part of the Board’s planned fundamental review of the accounting for employee benefits and some should be timed to coincide with the Financial Statement Presentation Project (FSPP) which we would expect to address what is financial performance, what is other comprehensive income (OCI) and why, when and how amounts recognised in OCI are recycled to profit or loss. Therefore, until the completion of these projects, we support the status quo with respect to many of the issues addressed in the ED.
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6 September 2010: New Accounting alert from Deloitte (Australia) |
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Deloitte (Australia) has published an Accounting Alert providing a summary of the Australian Accounting Standards Board (AASB) September meeting held on 1-2 September 2010.
Amongst other issues, the alert highlights the Australian consequences of IASB ED/2010/3 Defined Benefit Plans – Proposed amendments to IAS 19, particularly in relation to liabilities arising from the Australian statutory requirement for employers to provide long service leave for eligible employees. The remeasurement component of movements in these liabilities would be recognised in other comprehensive income under the proposals and is causing some concern amongst Australian constituents.
The AASB Action Alert (PDF 69k, link to AASB website) issued by AASB from the meeting notes the following:
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The Board considered the comments it received from constituents... and decided that its submission to the IASB should... express disagreement with... the proposed treatment of obligations for long-service leave and other similar long-term employee benefits because the changes are not sufficiently justified in the absence of a generally accepted principle for determining which items should be presented in OCI
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The comment period on IASB ED/2010/3 closes today (6 September 2010). Click for:
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5 September 2010: Notes from the August 2010 IASB-EFRAG meeting
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On 26 August 2010 the IASB and the European Financial Reporting Advisory Group (EFRAG) held an informal meeting in London. These meetings take place twice a year and are used to discuss European ideas and input into projects on the IASB's agenda. In addition to representatives from EFRAG, four European standard-setters were represented: France, Germany, Italy and the UK.
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 IASB-EFRAG meeting.
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4 September 2010: Comparison of IFRSs and Netherlands GAAP
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The Deloitte IFRS Centre of Excellence in The Netherlands has published the third edition of IFRSs and NL GAAP: A Pocket Comparison. This 31-page booklet sets out the key differences between IFRSs and Dutch GAAP for annual periods beginning on or after 1 January 2010. It also includes new and revised IFRSs issued before 31 July 2010 that are not yet effective for annual periods beginning on or after 1 January 2010. Click to download
IFRSs and NL GAAP: A Pocket Comparison (PDF 875k). Links to our comparisons of IFRSs and various local GAAPs are
Here. |
3 September 2010: Notes from the September 2010
Interpretations Committee meeting and podcast
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The IFRS Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday,
2-3 September 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.
The Interpretations Committee has published a podcast about the
meeting which can be accessed on the
IASB's website.
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3 September 2010: Newsletter on removal of fixed dates for first-time adopters
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Deloitte's IFRS Global Office has published an
IFRS in Focus Newsletter – IASB issues
Exposure Draft on Removal of Fixed Dates for First-time Adopters (PDF 63k). This newsletter describes the recent IASB proposal to amend IFRS 1 First-time Adoption of International Financial Reporting Standards. The ED proposes to provide relief to first-time adopters of IFRSs by amending IFRS 1 as follows:
- it amends the date of prospective application of the derecognition of financial assets and liabilities from '1 January 2004' to 'the date of transition to IFRSs' so that first-time adopters of IFRSs do not have to apply the derecognition requirements in IAS 39 retrospectively; and
- it amends the date of prospective application of the requirement to fair value financial assets and liabilities to transactions entered into 'on or after the date of transition to IFRSs', which would relieve first-time adopters from recalculating 'day 1' differences on initial recognition for those transactions occurring before the date of transition to IFRSs.
The ED comment period ends on 27 October 2010.
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3 September 2010: Accounting Roundup – August 2010
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We have posted the August 2010 Edition of Accounting Roundup (PDF 350k) 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:
Compensation – Stock Compensation
- Accounting Considerations Related to the New Policies Proposed by the Special Master for TARP Executive Compensation
Contingencies
- Comment Period Extended for Proposed ASU on Disclosure of Certain Loss Contingencies
Fair Value Measurements and Disclosures
- IASB Issues Staff Draft on Fair Value Measurements
Insurance Contracts
- IASB Issues Exposure Draft on Insurance Contracts
Leases
- FASB and IASB Issue Proposed Guidance on Lease Accounting
Presentation of Financial Statements
- IASB Issues Proposed Amendments to IFRS 1
Industry Accounting
- IFRS Interpretations Committee Issues Proposed Guidance on Surface Mining
Other Accounting
- FASB Chairman Herz to Retire; FAF to Increase Size of FASB
- FASB Issues ASU on Accounting for Technical Amendments to Various SEC Rules and Schedules
- FASB Issues ASU on Accounting for Technical Corrections to SEC Paragraphs
- FASB Issues Various ASUs and Proposed ASUs Related to Issues Discussed at July EITF Meeting
- FAF Issues U.S. GAAP Financial Reporting Taxonomy for Review and Comment
- IFRS Foundation Appoints Members of the SME Implementation Group
- IFRS Taxonomy Updated for Improvements to IFRSs
- 2010 OMB Circular A-133 Compliance Supplement Is Issued
Other SEC Matters
- SEC Requests Comments on Incorporating IFRSs Into the Financial Reporting System for U.S. Issuers
- SEC Issues C&DI Updates
- SEC Issues Shareholder Access Rule
Other Auditing
- PCAOB Issues Release on the Responsibilities of Registered Public Accounting Firms and Supervisory Personnel
- PCAOB Adopts Auditing Standards Related to the Auditor's Assessment of and Response to Risk
- PCAOB Staff to Develop Proposal to Make Disciplinary Hearings and Related Proceedings Public
- A Summary of the July 15 Meeting of the PCAOB's Standing Advisory Group
You will find past issues of Accounting Roundup Here.
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3 September 2010: Deloitte comment letter on the FASB's proposed accounting for financial instruments
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Deloitte's IFRS Global Office has forwarded to the IASB a letter of comment
sent to the FASB on the proposed Accounting Standards Update (ASU) Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities,
which was published in May 2010. Considering the objective of both Boards for a single converged standard
the letter was forwarded to the IASB for information and consideration. Below is an excerpt from the letter:
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We welcome the Board’s effort to improve accounting for financial instruments. We support the Board’s objective of providing financial statement users with more timely and representative information about an entity’s involvement with financial instruments, and we share the Board’s desire to reduce excessive complexity in the accounting for financial instruments. In addition, we support the Board’s steps toward achieving the goal of a single set of high-quality global accounting standards in this important area. In our view, however, the proposed ASU falls short of accomplishing these objectives, and accordingly we do not support the issuance of the proposed ASU as a final standard.
To support well-functioning global capital markets, a single converged financial reporting model for financial instruments for the benefit of financial statements users should be a top priority. We are concerned, therefore, that the FASB and IASB are developing divergent models for how to account for financial instruments. The model in the proposed ASU is significantly different from the classification and measurement model for financial assets in IFRS 9 and from the proposed model for financial liabilities in the IASB’s exposure draft ED/2010/4. In addition, the credit impairment models being proposed by the two boards differ in important respects. Further, the IASB is currently deliberating an approach to hedge accounting that is different from that in the proposed ASU. If the development of a common set of high-quality global accounting standards is to be achieved, the accounting for financial instruments must be a key area of focus. Accordingly, we strongly encourage the two boards to work collaboratively with a common goal of achieving convergence in this important area by agreeing to a single converged high-quality accounting standard for financial instruments.
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3 September 2010: Understanding the role of professional accountants in business
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The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released for comment a Consultation Paper that highlights how employer expectations of professional accountants in business are expected to change in light of global trends and evolving organisational needs.
The paper analyses these expectations in relation to eight drivers of sustainable organisational success, providing the framework for key activities that professional accountants will be expected to perform. The drivers were defined based on an analysis of three long-term trends influencing organisations: globalisation, complexity, and technology.
The Consultation Paper asks whether IFAC member bodies and associates would find it useful for an international competency framework to be developed, covering the roles and domain of professional accountants in business.
Extracts from the paper:
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Globalization
Two significant global issues will impact organizations and markets and hence the role of professional accountants in business. The first is the diffusion of economic power in the global economy across a wider range of regions and countries, underpinned by the deployment of information technology, greater economic openness, and the growing size and reach of multinational companies. The second issue is sustainable development, and in particular climate change, which has now become a defining issue of our era. With this increased attention has come an increased demand for reliable decision-making information.
Complexity
... Regulators and standard setters will also have to accept their responsibility for tackling complexity. Shifting from more to better and evidence-based regulation and oversight would enable organizations to more effectively and efficiently create stakeholder value and to properly account for how they are doing so. In addition, global convergence of standards and regulation, as well as global coordination of oversight could also help reduce complexity and the cost of business.
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Comments on the Consultation Paper are requested by 30 November 2010. Click for IFAC press release (link to IFAC website).
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2 September 2010: IASB and FASB publish questionnaire for lessees and lessors
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The IASB and the US FASB published a questionnaire for lessees and lessors as part of their outreach on the Leases project.
In the questionnaire, the boards are surveying organisations on their use of, and accounting for, leases. Completing the
questionnaire does not require knowledge of the boards’ proposals. Further details are available on the IASB's website.
The deadline to complete the questionnaire(s) is 30 September 2010.
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2 September 2010: Heads Up on FASB Exposure Draft on multiemployer plans
2 September 2010: Singapore Exchange encourages sustainability reporting
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Singapore Exchange ("SGX") has issued a proposed "Policy Statement on Sustainability Reporting" and accompanying Guide for SGX listed companies to use in formulating their sustainability reporting.
The proposed sustainability reporting is voluntary. SGX is of the view that as more companies become inspired to adopt sustainability reporting, it will be natural to take the next step on guidelines and standards leading to rules.
Following is an extract from the proposed guidelines:
The Exchange encourages the adoption of internationally accepted reporting frameworks, such as the Global Reporting Initiative (GRI) Reporting Framework, in disclosing the issuer’s sustainability performance. The GRI Reporting Framework is universally applicable to all organisations and sets out general principles and indicators that issuers can use to measure and report their economic, environment and social performance.
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The proposals are open for comment until 29 October 2010. Click for:
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2 September 2010: New IFRS publication from Deloitte India
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Deloitte (India) has published Tracking IFRS (PDF 485k). This publication provides a summary of the IASB exposure draft ED/2010/6 Revenue from Contracts with Customers and includes preliminary observations with respect to the possible impacts of the exposure draft on current practice in India. Companies in India will transition to Indian accounting standards converged with IFRSs from 2012 onwards.
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1 September 2010: FASB issues proposed ASU update on multiemployer plans
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The FASB has issued a proposed Accounting Standards Update (ASU) to Subtopic
715-80 Compensation—Retirement Plans—Multiemployer Plans.
The ASU proposes additional quantitative and qualitative disclosures
from employers, including:
- A description of the plans in which the employer is involved
- The employer’s contractual commitments to the plans
- The expected impact of participating in the plans on the employer’s future cash flows (including the potential impact of plan withdrawal obligations).
If approved, the proposed ASU would require a public company to provide the enhanced disclosures for fiscal years ending after 15 December 2010. Comment are due on or before 1 November 2010.
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1 September 2010: New editorial corrections to IFRSs
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The IASB has posted to its website a new batch of
Editorial Corrections to IFRSs. This batch includes editorial corrections and changes to IFRS for SMEs (issued July 2009), IFRS 9 Financial Instruments (issued November 2009), Improvements to IFRSs (issued May 2010), Bound Volume (Red Book) 2010 and Bound Volume (Blue Book)
2010.
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1 September 2010: Heads Up on July PCAOB Standing Advisory Group meeting |
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Deloitte (United States) has published a new Heads Up Newsletter (PDF 120k) discussing the meeting of the PCAOB's Standing Advisory Group (SAG) held on 15 July 2010. The SAG discussed the following: broker-dealer audit considerations, FASB projects and their potential impact on auditors, and the auditor's consideration of subsequent events. In addition, the PCAOB staff summarised comments it has received on its proposed audit committee communications standard and gave an update on its plans to undertake a project on the auditor's reporting model.
In relation to the impacts of the current IASB-FASB convergence process and the move to more 'principles-based' standards, the Heads Up notes the following:
There was considerable debate and discussion regarding the proposed timeline for the completion of current and upcoming FASB projects, with many voicing concerns about the potential for compromising quality in standards if the current timeline were to be strictly followed. In addition, many SAG members expressed concern about (1) resources and the ability to respond within compressed time frames and (2) capacity constraints that could cause diversions from financial reporting needs, potentially affecting the quality of financial reporting.
SAG members also discussed the increase in judgment that will be needed as a result of the FASB's move to more principles-based accounting standards. These same individuals encouraged the PCAOB and the SEC to implement the recommendation of the SEC's Advisory Committee on Improvements to Financial Reporting and develop a judgment framework for both issuers and auditors to help them arrive at well-reasoned judgments.
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1 September 2010: Draft US-GAAP XBRL taxonomy released for comment
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The United States Financial Accounting Foundation (FAF) has announced the availability of the proposed 2011 US-GAAP Financial Reporting Taxonomy for public review and comment. The updated taxonomy contains updates for accounting standards and other recommended improvements to the official taxonomy currently in use by filers in the United States Securities and Exchange Commission's (SEC) EDGAR system.
The deadline for comments is 30 October 2010. Click for:
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