Deloitte has published its 2011 Corporate Responsibility Report, reflecting Deloitte's wider outlook on corporate responsibility, and acknowledging that Deloitte's most significant impacts on society result from the work that member firms do for their clients. The Deloitte 2011 Corporate Responsibility Report has been checked by the Global Reporting Initiative (GRI) as Application Level B, and also serves as Deloitte's Communication on Progress to the United Nations Global Compact for 2010-2011. Click to download the report (PDF 3227k). More information about the report is available on our deloitte.com website.

Autorité des Normes Comptables (ANC), the French standard-setter, has issued a call for papers aimed at stimulating academic research on the issue of the assessment of accounting standards. The ANC is seeking to develop useful inputs into the standard setting process. Whilst the ANC expects research projects may deal with assessments of accounting standards before or after they come into force, it has emphasised assessments that occur before a standard has mandatory application. One of the possible types of projects cited is the implementation of the assessment process proposed to standards currently under development by the IASB, including areas such as revenue recognition, leases, insurance contracts and financial instruments. Researchers interested in participating in the project (and possibly gaining ANC funding) must submit their proposals by 15 March 2012. Click for press release (link to ANC website).

The International Ethics Standards Board for Accountants (IESBA) is proposing changes to its Code of Ethics for Professional Accountants to provide additional guidance to professional accountants in business and in public practice concerning conflicts of interest, and to make revisions to provide more comprehensive guidance in identifying, evaluating, and managing conflicts of interest. Among other requirements, the proposals would: include a description of circumstances that might create a conflict of interest for the professional accountant, together with examples of such circumstances require the professional accountant to take into account whether a reasonable and informed third party, weighing all the specific facts and circumstances available to the professional accountant at that time, would be likely to conclude that compliance with the fundamental principles is compromised requires the professional accountant to understand the nature of the relationships and services in identifying whether a conflict of interest exists or may be created require conflicts of interest within a network of firms to be evaluated when the professional accountant has reason to believe that a conflict of interest exists because of interests or relationships that another firm in the network has with a client expand on the guidance in the Code regarding the nature of safeguards that may be available to manage conflicts of interest within firms replace existing guidance for professional accountants in business, addressing circumstances in which conflicts of interest might arise when performing professional activities that compromise compliance with the fundamental principles and requiring the professional accountant in business to take steps to identify, evaluate, and manage those situations. Click for IESBA press release (link to IFAC website).

27 December 2011: Update on Russia's IFRS transition

On 25 February 2011, the Russian government signed off an IFRS endorsement procedure. According to the procedure, on 25 November 2011 the Russian Ministry of Finance has endorsed all existing IFRSs, SICs and IFRICs for use in Russia, except for IFRS 9-13 and IFRIC 20. In its further endorsement decisions for particular standards, the Ministry of Finance will rely on recommendations of a non-governmental expert committee (the National Council on Financial Reporting Standards) and consultations with the Central Bank and the Federal Committee on Securities Markets (FCSM). The supervisory functions over IFRS implementation in Russia are delegated to the FCSM (the Central Bank – for banks). Consolidated financial statements under IFRS will be required for public interest entities (PIEs). PIEs are defined as: companies with securities traded at stock exchanges, banks and insurance companies. However, the scope of the law is in fact broader as it indicates that “if other Russian laws require preparation/filing/publication of consolidated financial statements, such statements should be prepared according to IFRS.” Therefore, for example, those PLCs that issued their shares by means of open subscription (public offering) to a wide group of investors – even if the shares are not traded – will fall under the requirement to prepare consolidated financials under IFRS. The date of transition to IFRSs will be 1 January 2011, with the first full set of IFRS financial statements covering 2012 calendar year (with 2011 comparatives), for the following entities (if first-time adopters): Lending agencies (banks, etc.) Insurance companies Entities with securities traded on stock exchanges/trading systems. Issuers with non-traded securities — with prospectuses registered by the FCSM for: public offerings (open subscription) of securities, or private sale (closed subscription) of securities to more than 500 investors (unless an issuer has less than 500 shareholders and an exemption from filing is approved by more than 3/4 of shareholders and by the FCSM).* * For those in category 3 but a) Only due to traded bonds; or b) already preparing financial statements under US GAAP. The date of transition to IFRSs will be 1 January 2014, with the first full set of IFRS financial statements covering 2015 calendar year (with 2014 comparatives).  Under Russian Law the consolidated annual IFRS financial statements should be audited, presented to the shareholders and filed with the FCSM (or the Central Bank for banks) within 120 days from the year end (approximately by May 1 of the following year). There is also a requirement to publish (e.g., in the Internet) such financial statements. Please note that IFRSs in Russia do not replace national financial reporting standards – preparing consolidated financial statements under IFRSs does not lift the requirement to prepare standalone financial statements under the Russian statutory rules. Click for more information: 25 November Russia's Ministry of Finance Statement (in Russian, DOC 42k) Amended Russian Law on Securities Markets (in Russian, DOC 688k) Our Russia country page.

27 December 2011: Business Accounting Council of Japan continued its discussion over IFRS

Following on from the meeting on 10 November 2011, the Business Accounting Council of Japan (BAC) met on 22 December to continue discussions on IFRS. 10 November — The deliberation centered around relationship between a consolidated financial statement and a separate financial statement such as the use of potentially different accounting standards for each of them. The discussions also included relationship between the accounting standards and other related matters such as corporate laws and taxation. Majority appears to have supported a weak or no link between consolidated and separate financial statements, while some preferred consistency between two statements. 22 December — The main topic was “accounting that contributes to economic activities”, which is the third item of 11 “specific aspects” proposed in August. Other topics touched on during the session included the comment letter by the ASBJ on IASB’s three-yearly agenda consultation and recent developments in the U.S. such as issuance of two SEC staff papers for the workplan (issued in November) and a speech by the SEC staff at the AICPA annual conference in earlier December. Related materials (in Japanese) are expected to be posted to the FSA’s website. At both sessions, divergent views were expressed by members and no formal decision was made. In addition, during the one in December, a question was asked with regard future deliberation schedule at the BAC. The FSA responded that 1) remaining 8 items among 11 “specific aspects” are to be discussed, and 2) it is still possible that the decision be made in 2012; however, depending on the progress of future deliberations, a conclusion may not be reached within 2012. The date of the next meeting, where the BAC is expected to review results of research visits to North America, Europe and Asia conducted during November to December, is yet to be announced. November Meeting handout (in Japanese, link to FSA website) December Meeting handout (in Japanese, link to FSA website) Official minutes of the meeting in November (in Japanese, link to FSA website) Our Japan country page.

23 December 2011: IFRS XBRL taxonomy in Korean

The IFRS Foundation has published a Korean translation of the IFRS (International Financial Reporting Standards) Taxonomy 2011. The taxonomy is an official IFRS Foundation translation of the complete 2011 taxonomy label linkbases into Korean, created using official terminology. Click for: IASB press release (link to IASB website) Our XBRL page

23 December 2011: Our summary of new and revised accounting pronouncements

We've updated our summary of new and amended pronouncements document to provide a high level overview of new and revised accounting pronouncements that should be considered for financial reporting periods ending on or after 31 December 2011. The resource provides a brief summary of each pronouncement, and indicates whether it must be mandatorily applied for the first time at 31 December 2011, or whether it may be optionally applied, for various quarter ends. This information can be used to ensure that all new financial reporting requirements have been fully considered in the reporting close process. The information reflects developments to 19 December 2011 and will be updated through to March 2012, after which we'll produce an edition for March 2012 reporting. We'll include a permanent link to the most recent edition of the resource in the left-hand panel of our home page. This summary is also available for financial reporting periods ending on 30 September 2011. Click for our summary of new and amended pronouncements for 31 December 2011. Also available is IFRS in Focus — Closing out 2011 (PDF 81k).

23 December 2011: International Valuation Standards Council update

The following is an update of recent developments in relation to the International Valuation Standards Council (IVSC): Access to IVSC standards. Electronic access is now available to the International Valuation Standards published in July 2011. The standards can be accessed here (registration required) ahead of a comprehensive online service to be introduced at a later time Collaboration with the IASB. The IVSC will participate in the IASB expert advisory group to assist in the development of educational material to support the implementation of IFRS 13 Fair Value Measurements and acknowledges each entity's respective pronouncements must be consistent to avoid causing confusion Code of Ethical Principles. The Professional Board has approved the Code of Ethical Principles for Professional Valuers which has been updated to reflect the comments received on the Second Exposure Draft IVSC work plan. The IVSC has appointed working groups on six projects and has agreed to add a project on investment property. Three Technical Information Papers on discounted cash flow, the cost approach for tangible assets and intangible assets are near completion and should be published in early 2012. Publication of Exposure Drafts on guidelines for fairness opinions and a Technical Information Paper on contributory asset charges is also expected soon. There have also been a number of new board appointments. Click for more information (link to IVSC website).

23 December 2011: FEE issues policy statement on current economic difficulties

The Federation of European Accountants (Fédération des Experts comptables Européens, FEE), an international non-profit organisation based in Brussels that represents 45 institutes of professional accountants and auditors from 33 European countries, has released a policy statement entitled Professional Accountants' Contribution in the Current Economic Difficulties: Enhancing Transparency and Confidence. FEE believes that the European accountancy profession needs to play a key role in the current European crisis by contributing to the transparency and reliability of financial and non-financial information, therefore enabling better decision-making and contributing to restoring public and financial market confidence. The policy statement contains a high-level summary of issues that preparers, auditors and public sector entities may wish to consider in the current economic circumstances. These include such things as the measurement of assets, impairment of financial and non-financial assets, going concern considerations, disclosures, areas of particular audit attention, and public sector governance. Click for FEE press release (link to FEE website).

22 December 2011: EFRAG consolidated report of joint events on the IASB agenda consultation 2011

The European Financial Reporting Advisory Group (EFRAG), in cooperation with the National Standard Setters (NSS), has issued a consolidated feedback statement summarising the input received from the eight European events held from October to November. The IASB published a consultation paper in late July 2011 to seek public input on the strategic direction of its future work program. EFRAG and the NSS organised meetings with the purpose to help EFRAG gather European constituents' views for EFRAG's response to the IASB's consultation paper. The outreach meetings were held in October and November in eight European cities. On 5 December 2011, EFRAG issued its final comment letter to the IASB regarding the IASB Agenda Consultation 2011 Request for view. Feedback and views from the constituents who attended the outreach meetings were integrated into EFRAG's final comment letter. A consolidated report on all activities during this integration feedback received is now available (PDF 598 KB, link to EFRAG website).

22 December 2011: EFRAG and UK ASB issue discussion paper on income tax

The European Financial Reporting Advisory Group (EFRAG) and the Financial Reporting Council's Accounting Standards Board (UK ASB) have issued discussion paper Improving the Financial Reporting of Income Tax. The discussion paper provides possible enchancements to the requirements for financial reporting of income tax currently in IAS 12. Specifically, it provides possible changes to the reconciliation of tax expense to a standard rate; revisions to the requirements in respect of uncertain tax positions; and whether deferred tax should be discounted. Further, the discussion paper provides alternative approaches that could result in a replacement standard of IAS 12. The alternative approaches are the flow-through approach, the partial allocation approach, the valuation approach, and the accruals approach. Comments on the paper are invited by 29 June 2012. The discussion paper can be downloaded via the press release on EFRAG's website.

22 December 2011: IAASB publishes guidance on providing assurance on pro forma information

The International Auditing and Assurance Standards Board (IAASB) has released a new International Standard on Assurance Engagements (ISAE) dealing with pro forma information included in prospectuses. ISAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus provides guidance on the nature and extent of a practitioner’s work when engaged to report on the compilation of pro forma financial information. Among other matters, it establishes minimum benchmarks for suitable criteria for the compilation of such information. The new standard is effective for assurance reports dated on or after 31 March 2013. Click for IAASB press release (link to IFAC website).

21 December 2011: Updated EFRAG 'endorsement status report'

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 21 December 2011 (PDF 199k). Currently, the following 14 IASB pronouncements await endorsement action: IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosures of Interests in Other Entities IFRS 13 Fair Value Measurement IAS 27 Separate Financial Statements (2011) IAS 28 Investments in Associates and Joint Ventures (2011) Amendments to IAS 12 Deferred tax: Recovery of Underlying Assets Amendments to IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters Amendments to IAS 1 Presentation of Items of Other Comprehensive Income Amendments to IAS 19 Employee Benefits Amendments to IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine You can always find the endorsement status report here.

21 December 2011: EFRAG announces composition of the Technical Expert Group for April 2012

The European Financial Reporting Advisory Group (EFRAG) has announced the new composition of their technical experts group (TEG) for April 2012. TEG is the operational arm of EFRAG. Joanna Frykowska and Serge Pattyn were elected as new members of TEG. Mike Ashley was confirmed as Vice-Chairman of TEG. The previous TEG members who stood for re-election, Nicklas Grip, Nicolas de Paillerets, Hans Schoen and Andrea Toselli were reappointed. Click for: EFRAG Press Release (link to EFRAG website) Full list of members of the EFRAG Technical Expert Group

21 December 2011: Updated IASB work plan released

The IASB has released an updated work plan, dated 20 December 2011, incorporating the impacts of recently issued pronouncements and outlining revised 'current best estimates' for its various projects. A number of projects has been deferred, the expected timing of other projects more precisely defined, and deadlines for finalisation of IFRSs on leases and revenue recognition projects now not explicitly stated within the timeframes outlined (so now not expected before the end of 2012). The following is a summary of the revised work plan: Financial instruments: Impairment - re-exposure clarified as being expected in the second quarter of 2012 (previously first half 2012) Hedge accounting - an exposure draft on macro hedge accounting now due in third quarter 2012 (deferred from possible issue in first half of 2012), review draft of general hedge accounting requirements now expected in the first quarter of 2012 (previously fourth quarter 2011), with the targeted completion clarified as the second quarter of 2012 (previously first half of 2012) Other core projects: Leases - re-exposure clarified as being expected in the second quarter of 2012 (previously first half 2012), no stated target date for a finalised IFRS (previously second half of 2012) Revenue recognition - no stated target date for a finalised IFRS (previously second half of 2012) Insurance contracts - review draft or re-exposure clarified as being expected in the second quarter of 2012 (previously first half of 2012), no target date set for a finalised IFRS Post-implementation reviews – there have been no changes in the indicative timing for the following reviews: IFRS 8 Operating Segments - review initiated in 2011, target completion in 2012 IFRS 3 Business Combinations - review to be initiated in 2012 Agenda Consultation - a 'Feedback Statement' and roundtables are expected in the first quarter of 2012, with agenda decisions made during the course of 2012 Other projects: 2010-2012 annual improvements cycle - exposure draft expected in the first quarter of 2012 (previously fourth quarter of 2011) 2009-2011 annual improvements cycle - expected finalisation clarified as being in the second quarter of 2012 (previously first half of 2012) 2011-2013 annual improvements cycle - exposure draft expected third quarter of 2012 (newly added project) IFRS 1 amendments for government loans - no stated expected completion date Exemption from consolidation for investment entities - introduction of roundtables in the first quarter of 2012 (see our earlier story below) IFRS 10 transitional guidance - expected finalisation in the second quarter of 2012 (newly added project) Click for IASB work plan as of 20 December 2011 (link to IASB website). We have updated our agenda page to reflect the updated work plan and other known developments.

20 December 2011: Roundtables on investment company proposals to be held early in 2012

During February and March 2012, the IASB and FASB are holding a number of public roundtables on their proposals to exempt investment entities from consolidation. The IASB published Exposure Draft ED/2011/4 Investment Entities on 25 August 2011, proposing to define 'investment entities' as a separate type of entity that would be exempt from the consolidation accounting requirements in IFRS 10 Consolidated Financial Statements. Comments on the Exposure Draft close on 5 January 2012. Details of the roundtables, including the registration deadline, are set out in the table below: Country Location Date Deadline Canada Toronto 17 February 2012 27 January 2012 United Kingdom London 29 February 2012 8 February 2012 United States Norwalk 20 March 2012* 28 February 2012* Malaysia Kuala Lumpur 27 March 2012 6 March 2012 * The date of the Norwalk roundtable was changed to 16 March 2012 in mid January 2012. The registration deadline was also brought forward to 24 February 2012. Click for more information on the IASB's website.

20 December 2011: Elke König to step down as member of the IASB

The IASB has announced that effective 31 December 2011 Elke König is stepping down from the IASB. She has been appointed as President of the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the German Federal Financial Supervisory Authority. Click for: IASB press release (link to IASB website) Bundesanstalt für Finanzdienstleistungsaufsicht press release (link to BaFin website; German). Bundesministerium der Finanzen press release (link to Federal Ministry of Finance website; German) IASB board member vacancy notification (link to IASB website, applications close 3 February 2012).

20 December 2011: IASB publishes proposed amendments to IFRS 10

The IASB has published Exposure Draft ED/2011/7 Transition Guidance (Proposed amendments to IFRS 10) for public comment. The proposed amendments address the transition guidance in IFRS 10 Consolidated Financial Statements by clarifying when retrospective application is required. Comments on the exposure draft are due by 21 March 2012. Click for: IASB press release (link to IASB website) Exposure Draft ED/2011/07 Transition Guidance — Proposed amendments to IFRS 10 (PDF 170k, link to IASB website) IFRS in Focus — IASB issues exposure draft clarifying the transitional requirements of IFRS 10 (PDF 68k) Our consolidation project page

19 December 2011: IASB podcast on insurance contracts

The IASB has made a podcast on the current state of debate in the IASB/FASB joint project on insurance contracts available. Stephen Cooper, IASB member and Andrea Pryde, Senior Technical Manager, report on developments in the project following the joint IASB/FASB meeting on 13-16 December. To listen to the podcast, please click here (link to IASB website).

19 December 2011: Final notes from the December IASB meeting

The IASB's regular monthly meeting was held on 13-16 December 2011 in London, part of it a joint meeting with the FASB. We have posted additional Deloitte observer notes from the remaining sessions held on Thursday and Friday (click through for direct access to the notes): Thursday, 15 December 2011 Financial instruments — Impairment (IASB-FASB) Application of the three bucket model to debt securities Application of the three bucket model to loans Friday, 16 December 2011 Insurance contracts (IASB-FASB) Discounting of insurance liabilities for incurred claims Unit of account Onerous contracts Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

19 December 2011: Malaysian Accounting Standards Board releases discussion papers on Islamic finance transactions

The Malaysian Accounting Standards Board (MASB) has published three discussion papers exploring the accounting treatment of a number of Islamic financial transactions. The three papers are: DP i-1 Takaful. In many material respects, takaful can be likened to conventional insurance, but has a number of distinct features and the paper notes "little has been written about accounting for takaful under International Financial Reporting Standards (IFRS)". The paper explores issues such as: whether takaful meets the definition of an insurance contract in IFRS 4 Insurance Contracts whether a takaful operator should prepare consolidated financial statements accounting for any qard, an interest-free loan extended to a participant's fund that is in deficit retakaful, participating contracts, revenue recognition, and additional disclosures DP i-2 Sukuk. Sukuk is commonplace in the Malaysian capital market and can be compared to a conventional bond. Issues discussed include the classification of sukuk by the issuer and investor in the statement of financial position, fair value measurement, impairment, derivatives, guarantees and related party disclosures. DP i-3 Shariah Compliant Profit-sharing Contracts. These contracts are similar to conventional profit-sharing or partnership contracts but raise questions of the classification of items in the statement of financial position, accounting implications of smoothing techniques to stabilise returns on capital, and consolidation, joint ventures and investments in associates. The discussion papers do not seek to provide prescriptions for the accounting questions raised but instead put forward the MASB's understanding of the issues and alternate solutions to solicit public views on preferred solutions. The MASB has requested comments on the discussion papers by 16 March 2012. Click for press release (link to MASB website).

19 December 2011: IAASB issues guidance on auditing financial instruments

The International Auditing and Assurance Standards Board (IAASB) has released International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments, to provide practical assistance to auditors when addressing valuation and other considerations pertaining to financial instruments. IAPNs are non-authoritative documents that do not impose additional requirements on auditors beyond those included in the International Standards on Auditing (ISAs) and so are effectively immediately available for use. IAPN 1000 provides background information about financial instruments and discusses audit considerations such as planning, assessing and responding to audit risks, the valuation of financial instruments and appropriate internal controls related to financial instruments. Click for IAASB press release (link to IFAC website).

19 December 2011: EFRAG asks for more time to consider IASB proposals

The European Financial Reporting Advisory Group (EFRAG) has written to the IASB to request that the comment period on the Exposure Draft Revenue from Contracts with Customers be extended by 60 days and that the comment period on the Review Draft on General Hedge Accounting is set such that constituents have three months, outside their year-end closing period, to respond and participate in field-testing activities. The request follows an earlier EFRAG request for the IASB to consider a deferral of the effective date of the 'suite of standards' on consolidation, joint arrangement and disclosures (see our earlier story). Click for access to the EFRAG letter (link to EFRAG website).

18 December 2011: Agenda for January IFRS Foundation Trustees meeting

The IFRS Foundation Trustees will meet in Singapore on Thursday, 12 January 2012. The tentative agenda is shown below. Agenda papers for the meeting will be made available on the IASB website. Agenda for the IFRS Foundation Meeting Thursday, 12 January 2012 Thursday 12 January (13:45-16:00) Report of the IASB Chair Report of the Due Process Oversight Committee Report of the Education and Content Services Committee Public update on the Strategy Review

18 December 2011: IASB, FASB and CFA Institute webcast on revenue recognition

On 12 January 2012 at 15:00 GMT, the IASB, FASB and the CFA Institute will present a webcast about the proposals on revenue recognition. More information is available on on the CFA Institute's website.

18 December 2011: IFRS Foundation translation update

The IFRS Foundation has announced the publication of the following translations: Japanese translation of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) 2009. The Japanese translation is available on the IASB's Access the IFRS for SMEs page (registration required). Spanish translation of Module 7 'Statement of Cash Flows' of the IFRS for SMEs training materials. These are available on the IASB's Spanish language training materials webpage (freely accessible).

16 December 2011: Deloitte IFRS Podcast on offsetting of financial assets and financial liabilities

Randall Sogoloff, Leader for Communications in the Deloitte IFRS Global Office, and Andrew Spooner, leader of Deloitte's global IFRS financial instruments team, discuss the recently issued amendments relating to offsetting of financial assets and financial liabilities. The podcast is available for download here (26 mins 11.5 mbs) or via iTunes; it is one of a series that will be posted to IAS Plus. All podcasts of the series are available here.

16 December 2011: IASB amends offsetting rules in IAS 32 and amends disclosure requirements

The IASB issued amendments to IAS 32 Financial Instruments: Presentation that provide clarifications on the application of the offsetting rules. This joint project between the IASB and FASB was intended to address the differences in their respective accounting standards regarding offsetting of financial instruments. However, the FASB decided to retain the current US GAAP guidance. Therefore, the Boards decided to jointly focus on developing converged disclosure requirements to allow financial statement users the ability to more easily compare financial instruments exposures under IFRS and US GAAP. Additionally, the IASB decided to amend IAS 32 to clarify certain aspects because of diversity in application that was identified during the IASB constituent outreach. The project to amend IAS 32 focused on four main areas: the meaning of 'currently has a legally enforceable right of set-off' the application of simultaneous realisation and settlement the offsetting of collateral amounts the unit of account for applying the offsetting requirements. The amendments to the disclosure requirements in IFRS 7 Financial Instruments: Disclosure require information about all recognised financial instruments that are set off in accordance with paragraph 42 of IAS 32. The amendments also require disclosure of information about recognised financial instruments subject to enforceable master netting arrangements and similar agreements even if they are not set off under IAS 32. The IASB believes that these disclosures will allow financial statement users to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with an entity's recognised financial assets and recognised financial liabilities, on the entity's financial position. The amendments to IAS 32 are not effective until annual periods beginning on or after 1 January 2014. However, the new offsetting disclosure requirements are effective sooner - for annual periods beginning on or after 1 January 2013 and interim periods within those annual periods. The amendments need to be provided retrospectively to all comparative periods. Click for: IASB press release (link to IASB website) IFRS in Focus — IASB clarifies requirements for offsetting financial assets and financial liabilities and amends disclosures (PDF 71k) Our summary of the offsetting project.

16 December 2011: Deloitte IFRS Podcast on the deferral of the effective date of IFRS 9

Randall Sogoloff, Leader for Communications in the Deloitte IFRS Global Office, and Andrew Spooner, leader of Deloitte's Global IFRS financial instruments team, discuss the IFRS 9 Deferral. The podcast is available for download here (12 mins 5.5 mbs) or via iTunes; it is one of a series that will be posted to IAS Plus. All podcasts of the series are available here.

16 December 2011: IASB defers effective date of IFRS 9 and publishes modified transition disclosures

The IASB has published amendments that defer the mandatory effective date of both the 2009 and 2010 versions of IFRS 9 Financial Instruments to annual periods beginning on or after 1 January 2015. Prior to the amendments, IFRS 9 was mandatorily effective for annual periods beginning on or after 1 January 2013. Early application is still permitted. Instead of requiring restatement of comparative financial statements, entities are either permitted or required to provide modified disclosures on transition from IAS 39 to IFRS 9 on the basis of the entity's date of adoption and if the entity chooses to restate prior periods. An entity that adopts IFRS 9 for reporting periods: beginning before 1 January 2012 is not required to restate prior periods or provide the modified disclosures beginning from 1 January 2012 until 31 December 2012 may elect to either restate its prior periods or provide the modified disclosures beginning on 1 January 2013 or thereafter is not required to restate prior periods but is required to provide the modified disclosures. Much of the information required in the modified disclosures is consistent with existing disclosures in IAS 8 and IFRS 7. However, the amendments also require reclassification disclosures in IFRS 7 (as amended by IFRS 9 (2009)) on transition from IAS 39 to IFRS 9 regardless as to whether they would normally be required due to a change in business model. Reclassification disclosures and other disclosures required when initially applying IFRS 9 are expected to allow reconciliations between the measurement categories in accordance with IAS 39 and IFRS 9 and individual line items in the financial statements or classes of financial instruments. The IASB is deferring the mandatory effective date of IFRS 9 because of the delay in the expected timing of completion of the remaining phases of the financial instruments project. The Board intends to allow entities to apply all phases of the financial instruments project concurrently. Also, the Board considered the effective date of the standard on insurance contracts which is currently being developed. Furthermore, at its November 2011 meeting, the IASB tentatively decided to re-open IFRS 9 to address potential application issues in IFRS 9 and consider the interaction between IFRS 9 and the tentative decisions made on the insurance project. Additionally, the IASB will consider the FASB's model on the classification and measurement of financial instruments. Click for: IASB press release (link to IASB website) IFRS in Focus — IASB defers the mandatory effective date of IFRS 9 and adds disclosure requirements (PDF 67k) Our summary of the IFRS 9 deferral project Our summary of IFRS 9.

16 December 2011: Accounting rules for European micro entities eased

The European Parliament has voted to considerably simplify life for more than 5 million of the smallest companies in Europe. In February 2009, the European Commission tabled proposals to reduce burdensome accounting rules for Europe's smallest companies – so-called "micro entities". From next year, it will be possible for Member States to radically simplify the way in which micro-entities prepare their accounts. When it comes to publishing accounts, governments will be able to create a "one-stop-shop" which would see micro-entities only having to send their accounts to the tax administration, which would in turn be responsible for passing the accounts onto the Company Registry. Today, in many countries micro-entities have to file a full set of financial statements, including the balance sheet and profit and loss account, and are required to disclose this through publication in a national gazette. This simplification ties in with the European proposals for revising the Accounting Directives and the Transparency Directive published in October 2011. Please click for: EC Press Release (link to EC website) Frequently Asked Questions on the burden reduction for micro-entities (link to EC website)

16 December 2011: Additional notes from the December IASB meeting

The IASB's regular monthly meeting is being held on 13-16 December 2011 in London, part of it a joint meeting with the FASB. We have posted additional Deloitte observer notes from the sessions on financial instrument impairment and insurance contracts (click through for direct access to the notes): Wednesday, 14 December 2011 (earlier sessions) Financial instruments — Impairment (IASB-FASB) Principle of transfer from bucket one to bucket two Bucket one allowance Pervasive issues Thursday, 15 December 2011 Insurance contracts (IASB-FASB) Policyholder participation Measurement of options and guarantees embedded in insurance contracts Cash flows that existing contracts require to be paid to future policyholders Discounting of insurance liabilities for incurred claims Notes from the further sessions will be posted as they become available. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

15 December 2011: New IFRS for SMEs training module

The IFRS Foundation Education Initiative has developed a training module for Section 33 of the IFRS for SMEs Related Party Disclosures. Ultimately, the IFRS for SMEs training material will include 35 stand-alone modules – one for each section of the IFRS for SMEs. Currently, 27 modules are available. Most are also available in Arabic, Russian, Spanish, and Turkish. Please click for more information on the Section 33 training module or access all training modules on the IASB website.

14 December 2011: Further notes from the December IASB meeting

The IASB's regular monthly meeting is being held on 13-16 December 2011 in London, part of it a joint meeting with the FASB. We have posted Deloitte observer notes from the sessions on leases held on the Tuesday and Wednesday (click through for direct access to the notes): Tuesday, 13 December 2011 (earlier sessions) Leases - education session (IASB only) Wednesday, 14 December 2011 (later sessions) Leases (IASB-FASB) Cancellable leases Rental income recognition for investment properties Disclosures for leases excluded from the receivable and residual approach Notes from the Wednesday session on financial instrument impairment will be posted soon. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

14 December 2011: Deloitte comment letters on the IIRC's integrated reporting discussion paper and IASB's amendments to IFRS 1 exposure draft

Deloitte's IFRS Global Office has submitted letters of comment to the International Integrated Reporting Council (IIRC) on its Discussion Paper, Towards Integrated Reporting — Communicating Value in the 21st Century, and to the International Accounting Standards Board (IASB) on its Exposure Draft ED 2011/5, Government Loans — Proposed amendments to IFRS 1. In regards to the IIRC discussion paper, we acknowledge the purpose of the discussion paper is to create dialogue on the direction and framework for corporate reporting. We agree on improving the current corporate reporting model and that the principle of stewardship should encompass value creation and the costs incurred to create that value. We also provided what we feel are necessary steps in the process of developing a new (integrated) business reporting model. The following is an excerpt from the letter: We think the following steps are necessary to further the IIRC's goal: research into and development of a 'conceptual framework' for integrated reporting which not only identifies but defines the building blocks of integrated reporting with accompanying rationales. Relevant building blocks would include amongst others: the objective of integrated reporting the primary user group the principle of stewardship of the capitals and resources used by the entity in the context of integrated reporting (which should be a Guiding Principle) the elements of integrated reporting including an assessment of performance or relevant performance metrics in respect of those elements the reporting entity the defining characteristics or attributes of information for inclusion in an integrated report, which would consider relevance, materiality and quality, amongst others, and the standards for disclosing the integrated report in a digital format (e.g., XBRL). For the integrated reporting model to be successful and capable of practical and consistent application we believe a clear definition of and consensus on these fundamental concepts will be necessary. In regards to the IASB exposure draft, we agree that first-time adopters should have the same transitional relief as existing preparers in applying the 2008 IAS 20 amendments. However, we suggest that draft paragraph B10 should be amended to make it clear that the proposed exemption applies only to the requirements of IFRS 9 and IAS 20 insofar as they relate to the grant element of government loans at below market rate. Click to download: Comment Letter on the IIRC Discussion Paper: Towards Integrated Reporting — Communicating Value in the 21st Century (PDF 83k). Comment Letter on the IASB Exposure Draft ED 2011/5, Government Loans — Proposed Amendments to IFRS 1 (PDF 31k). Our past comment letters.

14 December 2011: EFRAG Update with summaries for the late November conference call and the December EFRAG TEG meeting

The European Financial Reporting Advisory Group (EFRAG) has released the December 2011 issue of its EFRAG Update newsletter. On 18 November 2011, EFRAG held a meeting via public conference call. The EFRAG TEG meeting was held 7 to 9 December 2011. Highlights of the meetings were a draft endorsement advice on the amendments of IFRS 1 and the draft comment letters to the IASB's draft on government loans. Click for the EFRAG Update (PDF 347k, link to EFRAG website). Links to earlier issues are available here.

14 December 2011: Notes from the December IASB meeting

The IASB's regular monthly meeting is being held on 13-16 December 2011 in London, part of it a joint meeting with the FASB. We have posted Deloitte observer notes from most of the sessions held on the first day of the meeting (click through for direct access to the notes): Tuesday, 13 December 2011 IFRS 10 Transitional Requirements (IASB only) IFRIC Update (IASB only) Financial Instruments: Macro Hedge Accounting (IASB only) Financial Instruments: Classification And Measurement (IASB only) Notes from the session on Leases will be posted soon. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

14 December 2011: New Australian resource tax raises accounting issues, prompts AASB to issue agenda decisions

The Australian Accounting Standards Board (AASB) has issued tentative agenda decisions dealing with accounting issues arising from a proposed 'Mineral Resource Rent Tax' (MRRT) and extension of 'Petroleum Resource Rent Tax' (PRRT) that are currently being considered by the Australian Parliament. The accounting treatment of MRRT/PRRT is a contentious issue in Australia and the tentative agenda decisions potentially have wider implications due to the generic nature of some of the matters discussed and the widespread involvement of global resources companies in the Australian resources industry, many of whom report under IFRSs or US GAAP. The tentative agenda decisions deal with the following matters: Whether MRRT is an income tax. The agenda decision stops short of concluding MRRT is an income tax, but notes existing guidance is sufficient to address the issue, referencing the possible direct or analogous application of AASB Interpretation 1003 Australian Petroleum Resource Rent Tax (a domestic Interpretation) Accounting for an uplift in allowances on the commencement of a new tax. Entities becoming subject to the MRRT/PRRT for the first time are given the option of adopting an 'starting base allowance' which increases future deductions available based on the market value of the operation, rather than the actual cost of establishing the operation. The agenda decision states such increases in deductions available are to be treated "as a deductible temporary difference giving rise to a deferred tax asset" Substantive enactment. The Bills required to enact the tax have been passed by the Lower House of the Australian Parliament, but will not be considered by the Australian Senate until 2012. The tentative agenda decision concludes existing guidance (including a further Australian domestic Interpretation) "is sufficient to address the issue of when substantive enactment has occurred". The tentative agenda decisions arose from the AASB's discussions at its December 2011 meeting, where the AASB also debated the question of accounting for payments to Australian State Governments for royalties that can be credited against MRRT/PRRT payable. There is currently debate about whether such royalties should be considered production costs or a form of 'prepaid' MRRT/PRRT and the AASB has indicated it will raise this additional issue with the IFRS Interpretations Committee. Comments on the AASB's tentative agenda decisions close on 17 January 2012. Click for: AASB's tentative agenda decisions (link to AASB website) AASB Action Alert (link to AASB website) from the AASB's December meeting with more details of the discussion Deloitte (Australia) submission to AASB on accounting for MRRT/PRRT (PDF 74k), providing some additional background to the issues arising.

14 December 2011: IASB publishes an interview with Wayne Upton

The IASB has posted on its website an interview with Wayne Upton, Chairman of the IFRS Interpretations Committee and the Director for International Affairs of the IASB. Mr Upton has been with the IASB since 2001, and previously worked at the FASB for almost 20 years. In an interview with financial journalist Robert Bruce, who is also the resident commentator for IAS Plus, Mr Upton compares his United States and global roles, the challenges of global standard setting such as consistency in application across jurisdictions and the needs of emerging economies, and his plans as Chairman of the IFRS Interpretations Committee. Click for access to the interview (link to IASB website).

12 December 2011: Michel Prada appointed as Chairman to the Trustees of the IFRS Foundation

The Trustees of the IFRS Foundation have announced the appointment of Michel Prada as Chairman of the Trustees of the IFRS Foundation. Michel Prada is the former Chairman of the Executive and Technical Committees of the International Organization of Securities Commissions (IOSCO) and currently serves as the Chairman of the International Valuation Standards Council (IVSC), co-Chairman of the Council on Global Financial Regulation and is a non-executive Director of the International Centre for Financial Regulation. His initial term begins 1 January 2012 and will expire in three years. Please click for: IASB press release (link to IASB website) The Bruce Column — Prada Takes The Chair our overview of Trustees working currently for the IFRS Foundation.

12 December 2011: EFRAG calls for deferral of consolidation and joint arrangement standards

The European Financial Reporting Advisory Group (EFRAG) has publicly released a letter it is has written to the IASB calling for the deferral of the effective date of the 'suite of standards' on consolidation, joint ventures and disclosures. In the letter, EFRAG requests a deferral of the effective date of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures. EFRAG's reasons for requesting a deferral include: during EFRAG field-tests of IFRS 10 and IFRS 11, some participants noted that they have concerns that the mandatory effective date of 1 January 2013 would not allow them sufficient time to implement the new requirements and make the required assessments. Concerns about implementing IFRS 10 are concentrated in the financial services and insurance industries, whereas concerns about IFRS 11 relate to the need to access detailed information regarding joint arrangements the IASB is currently undertaking its project on investment entities and is also considering possible amendments to the transitional requirements around IFRS 10 (including at the December IASB meeting this week), both projects affect the application of IFRS 10 and create uncertainty for constituents although the above concerns relate to IFRS 10 and IFRS 11, EFRAG notes that given the considerable interaction between the requirements of the standards in the package, all standards must continue to have the same effective date, requiring a deferral for all five standards. The standards are currently effective for annual periods beginning on or after 1 January 2013. EFRAG believes that the effective date of the Standards should be deferred to the later of (a) 1 January 2014 or (b) 12 months after the amendments to IFRS 10 and the standard on investment entities have both been published. Click for access to the EFRAG letter (link to EFRAG website).

9 December 2011: IASB announces public roundtable meetings on its agenda consultation

The IASB plans to hold a series of public roundtable meetings for its Request for Views Agenda Consultation 2011. The purpose of the first meeting is to discuss responses to the agenda consultation comment letter. The date and location of the first roundtable meeting is as follows (exact time is yet to be announced): Singapore — Friday 13 January 2012 Those who wish to participate in the roundtable meeting must register by 21 December 2011. Click for IASB announcement (link to IASB website).

8 December 2011: Updated EFRAG 'endorsement status report'

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments. Click to download the Endorsement Status Report as of 8 December 2011 (PDF 195k). Currently, the following twelve IASB pronouncements await endorsement action: IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosures of Interests in Other Entities IFRS 13 Fair Value Measurement IAS 27 Separate Financial Statements (2011) IAS 28 Investments in Associates and Joint Ventures (2011) Amendments to IAS 12 Deferred tax: Recovery of Underlying Assets Amendments to IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters Amendments to IAS 1 Presentation of Items of Other Comprehensive Income Amendments to IAS 19 Employee Benefits IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine You can always find the endorsement status report here.

8 December 2011: IFAC proposes tweaks to its membership obligations in respect of international standards

The Board of the International Federation of Accountants (IFAC) has released for public comment proposed revisions to its Statements of Membership Obligations (SMOs). IFAC member bodies are required to comply with the SMOs by the IFAC Constitution, and SMOs form the basis of the IFAC Member Body Compliance Program. They serve as a framework for professional accountancy organisations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members. The SMOs include obligations on IFAC member bodies to identify and undertake actions to have the following adopted and implemented in their jurisdictions: International Financial Reporting Standards (IFRSs), in respect of at least public interest entities International Public Sector Accounting Standards (IPSASs). Responsible parties are also encouraged to consider the use of the IFRS for SMEs in relation to non-public interest entities. In jurisdictions where English is not an official or widely used language, member bodies are also required to use best endeavours to establish or support processes for translations of international standards, and exposure drafts to the extent practicable. The amendments proposed clarify these (and other) obligations by providing guidance on how member firms are required to respond in light of the type of influence the member body has in the standard setting process. The proposals would revise the terminology used from "incorporation" of international standards to "adoption and implementation". Comments on the proposals are due by 5 March 2011. Click for IFAC press release (link to IFAC website).

7 December 2011: Agenda for the regular December IASB meeting

The IASB's regular monthly meeting is scheduled for 13-16 December 2011 in London, part of it a joint meeting with the FASB. Set out below is the agenda for the meeting (links are to our project summary for each topic). Times are shown in London time (GMT). IASB Board Meeting Agenda 13-16 December 2011, London Tuesday, 13 December 2011 IASB Meeting (09:00-13:15) IFRS 10 — Transitional requirements IFRIC Update Macro Hedge Accounting Classification and Measurement Leases — Education Session Wednesday, 14 December 2011 IASB-FASB Joint Meeting (11:30-18:45) Leases Impairment Thursday, 15 December 2011 IASB-FASB Joint Meeting (12:30-13:30) Insurance Contracts Friday, 16 December 2011 IASB-FASB Joint Meeting (08:00-11:00) Insurance Contracts

7 December 2011: SME Implementation Group publishes two final Q&As

The SME Implementation Group (SMEIG) has published two final questions and answers (Q&As) on the IFRS for SMEs. Q&As are non-mandatory guidance. Q&A 2011/02 Entities that typically have public accountability addresses whether an entity has public accountability. It states that, "an entity has public accountability if its debt or equity instruments are traded in a public market, or if it is in the issuing such instruments for trading in a public market, or if it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses." The Q&A also noted that under certain circumstances, such entities may not have public accountability, such as captive insurance subsidiaries and investment funds with only a few participants. Q&A 2011/03 Interpretation of 'traded in a public market' in applying the IFRS for SMEs addresses how to interpret 'traded in a public market' in the definition of public accountability. It defines a public market as "a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets," however, if exchanges only occur between parties involved in the management of the entity, it is not considered 'traded in a public market.' SMEIG has stated that an entity that does not have public accountability is eligible to use the IFRS for SMEs. SMEIG has two principal responsibilities: to develop non-mandatory guidance for implementing the IFRS for SMEs in the form of questions and answers (Q&As) that will be made publicly available to interested parties on a timely basis, and to make recommendations to the International Accounting Standards Board (IASB) if and when needed regarding the need to amend the IFRS for SMEs. Click for: IASB press release (link to IASB website) Q&A 2011/02 Entities that typically have public accountability (link to IASB website) Q&A 2011/03 Interpretation of 'traded in a public market' in applying the IFRS for SMEs (link to IASB website) Our IAS Plus summary of the IFRS for SMEs

7 December 2011: FASB and IASB chairs discuss global accounting standards

At the AICPA National Conference on Current SEC and PCAOB Developments, FASB Chairman Leslie Seidman and IASB Chairman Hans Hoogervorst discussed global accounting standards and the possible future endorsement of IFRSs by the US Securities and Exchange Commission (SEC). Ms Seidman spoke first, summarising the points of the FAF comment letter to the SEC in which it expresses "strong support for IFRS becoming the foundation for future accounting standards, but also offers constructive suggestions to mitigate the transition risks that have been identified". On the topic of convergence, Ms Seidman echoed comments made by Mr Hoogervorst at a recent IFRS conference in Australia in saying "the side-by-side convergence model is not the optimal model in the long run". In discussing the approach the United States may take to the adoption of IFRS in more detail, and the FASB's ongoing role, Ms Seidman made the following comments: We always are going to need a nimble, responsive body to address important matters in the U.S. In cases where other countries share the issue, we would hope to convince the IASB or IFRIC to take up the issue and then participate in the process. But, if they don't, we would address the issue for the U.S., and then the IASB could later consider the standard for broader use. There are a couple of things to think about here. The IASB is in the process of a global agenda consultation, which has been long awaited by many parts of the world. We would expect the IASB to add projects to address those regional concerns. Second, many parties are calling for a period of calm to allow them to transition to the new standards, and for the IASB to focus on the Conceptual Framework for the next few years. But I have yet to experience a period of calm as an accountant in the U.S., and I expect pressing matters to continue to emerge that require our prompt attention. So you can think of this as a safety net if you like, but something that is very important in our culture. In his speech, Mr Hoogervorst noted that the endorsement of IFRSs is used in most parts of the world, but he noted "there should be a clear timeline for the completion of the initial 'endorsement process'" in the US. He also raised the participation of national standards setters in the IASB's due process, noting "more institutional arrangement for engaging national standard-setters and regional bodies concerned with accounting standards is needed". Mr Hoogervorst also discussed the possibility of allowing US companies the option of adopting IFRS, noting that certain US companies were already calling for "a single set of high quality standards and IFRSs being the most effective means to accomplish that objective". Mr Hoogervorst continued: Companies like these have been leading the way in terms of consolidating and coordinating their international financial reporting. I think providing a limited number of such US companies with the option to use IFRSs for their US consolidated financial reporting would offer a good test of IFRSs. I know that there are inevitable concerns about having two GAAPs in the US marketplace. However, if the major competitors of such companies are using IFRSs, comparability will actually increase. Comparability could be further assured if those competitors were foreign private issuers in the US, already subject to SEC review. From a global perspective, such a limited and early option to use IFRSs would provide a clear signal of a US commitment to IFRSs. Click for: Text of speech by Leslie Seidman (link to FASB website). Text of speech by Hans Hoogervorst (link to IASB website).

7 December 2011: Deloitte IFRS podcast on integrated reporting

A new Deloitte podcast is available. Nick Main, Deloitte Global Leader, Sustainability & Climate Change Services and Robert Bruce discuss the concept of 'integrated reporting' and the International Integrated Reporting Council's (IIRC) Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century. Nick discusses the key changes proposed and provide insights into what integrated reporting is all about. The podcast is available for download here (18:30 mins 8 mb) or via iTunes; it is one of a series that will be posted to IAS Plus. All podcasts of the series are available here.

5 December 2011: SEC chief accountant announces delay in decision on IFRS

The United States Securities and Exchange Commission (SEC) has published the transcript of a speech made by James L. Kroeker, SEC chief accountant, at a recent AICPA National Conference on current SEC and PCAOB Developments. In this speech, Mr Kroeker discussed the timing of a final report to be issued by the SEC staff on the incorporation of IFRS for U.S. issuers. The SEC had hoped to make a determination as soon as 2011, but the final report will be delayed by a "few additional months". An extract from the published text of his speech is reproduced below: "We remain committed to completion of a final comprehensive report on our Work Plan, consistent with the high caliber of reporting embodied in our previous progress documents. In that regard, the staff will need a measure of a few additional months time to produce a final report. At the same time, the staff is in the process of developing an approach for Commission consideration. Given the number of things on our agenda, I cannot give you a precise schedule. I can tell you that we will do so carefully and thoughtfully, being guided by an ideal that produces the maximum benefit for the investing public and the capital markets. I can also tell you that I am encouraged about the potential prospects of IFRS incorporation, particularly as I consider and reflect on the input received on the May staff paper exploring a potential incorporation approach."

5 December 2011: Deloitte comment letter on the IFRS Interpretations Committee's tentative decision

Deloitte's IFRS Global Office has submitted a letter of comment to the IFRS Interpretations Committee on its tentative decision not to take onto the Committee's agenda requests for Interpretations of IAS 19, Employee Benefits, with respect to providing guidance on the classification of 'Altersteilzeit' (ATZ) plans under the revised version of IAS 19 issued in June 2011. The following is an excerpt from the letter: Although we understand that ATZ plans are entered into by employers to facilitate an orderly transition from older to younger workers and as such are intended as a form of termination benefit, we agree with the Committee's conclusion that the bonus payments they offer do not meet the definition of termination benefits under the revised version of IAS 19 because they are conditional upon completion of a period of service. Click to download our Comment Letter on the IFRS Interpretations Committee's tentative decision (PDF 29k). All of our past comment letters are here.

5 December 2011: ESMA hosts meeting of regulators to discuss IFRS

On 1-2 December 2011, the European Securities and Markets Authority (ESMA) hosted a meeting of accounting enforcers from around 30 countries to discuss International Financial Reporting Standards (IFRS), enforcement systems and enforcement decisions. In addition to representatives from national enforcers, representatives of the International Accounting Standards Board (IASB), International Auditing and Assurance Standards Board (IAASB), the European Commission and the International Organization of Securities Commission Organizations (IOSCO) participated in the meeting. In a press release discussing the outcomes of the meeting, Steven Maijoor, ESMA chair, noted: "IFRSs are global standards of which the ultimate success depends on their worldwide consistent application. Our experience in Europe has shown that this can only be achieved by bringing national enforcers together. There is a clear need to extend that cooperation on a global level, and ESMA is actively contributing to this." ESMA periodically publishes extracts from the enforcement database of European Enforcers Coordination Sessions (EECS), a forum in which all EU National Enforcers of financial information meet to exchange views and discuss experiences of enforcement of IFRS. IOSCO is also involved in efforts to promote comparability and consistency of application and enforcement of IFRSs. Global consistency in the application of IFRSs is a key theme. For instance, the recent SEC Staff Papers on IFRS also discussed this aspect, noting "diversity in the application of IFRS presented challenges to the comparability of financial statements across countries and industries". Click for ESMA press release (link to ESMA website).

3 December 2011: IFRS Foundation translation update

The IFRS Foundation has announced the publication of the following translations: Arabic translation of the 2011 Red Book International Financial Reporting Standards (IFRSs). The translation can be accessed via the eIFRS site (eIFRS subscribers only) or in printed format from the IASB bookshop Spanish translation of unaccompanied International Financial Reporting Standards 2011. The Spanish translations are available on the IASB's Official IFRS translations page (free registration required, available here) Spanish translation of the Basis for Conclusions and Implementation Guidance for Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) as issued in English by the IASB in June 2011. The Spanish translations are available on the Spanish New and Revised Standards page (eIFRS subscribers only) Mongolian translation of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) 2009. The Mongolian translation is available on the IASB's Access the IFRS for SMEs page (registration required).

2 December 2011: EFRAG draft comment letter on IFRS for SMEs draft Q&As

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on the SME Implementation Group's (SMEIG) two draft questions and answers. For the draft Q&A Fallback to IFRS 9 Financial Instruments, the EFRAG agrees with the answer provided and thinks the Q&A should be issued. In regards to draft Q&A Recycling of cumulative exchange differences on disposal of a subsidiary, the EFRAG also agrees with the answer provided but does not think the Q&A should be issued. Comments on the letter are invited by 18 January 2012. The draft comment letter can be downloaded via the press release on EFRAG's website.

1 December 2011: US PCAOB strategic plan 2011-2015

The United States Public Company Accounting Oversight Board (PCAOB) has published its Strategic Plan (PDF 263k) to guide the Board's programs and operations during the period 2011-2015. The Sarbanes-Oxley Act of 2002 created the PCAOB as the independent nonprofit overseer of the auditors of public companies. PCAOB has four primary responsibilities: registration of accounting firms (including non-US firms) that audit public companies (including non-US issuers) trading in US securities markets inspections of registered public accounting firms establishment of auditing and related attestation, quality control, ethics, and independence standards for registered public accounting firms investigation and discipline of registered public accounting firms and their associated persons for violations of specified laws or professional standards.

1 December 2011: IASB and FASB announce revenue recognition webcast

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) will be hosting a webcast on Thursday, 8 December 2011 regarding the boards' recently published exposure draft Revenue from Contracts with Customers. The webcast will review the main proposals of the exposure draft developed by the IASB and FASB, also, it will describe how stakeholders can comment on the proposals. In addition, there will be an IASB only webcast on the exposure draft on Monday, 12 December 2011. Click for the press release (link to IASB website).

1 December 2011: Deloitte comment letter on five draft guidance Q&As for the IFRS for SMEs

Deloitte's IFRS Global Office has submitted a letter of comment to the SME Implementation Group on its Third batch of SME Implementation Group questions and answer documents. In the comment letter, we re-iterate our concern over whether the level of SME Implementation Group's due process applied to the Q&As is appropriate and consistent with other similar activities at the IFRS Foundation and IASB. As regards the Q&As included in this batch of documents we question their appropriateness for the following reasons: We are not convinced that the issues are areas in which we consider that the IFRS for SMEs lacks clarity such that inconsistent implementation is likely to occur in the absence of a Q&A. We do not consider publication of a high volume of draft Q&As (nine since February 2011) to be in keeping with the Board's plan for periodic updating of the IFRS for SMEs. We believe that unless issues are clearly urgent, widespread and likely to result in significant divergence in practice they should be addressed through the next omnibus exposure draft of the IFRS for SMEs rather than by producing a continuous stream of new guidance. Click to download our Comment Letter on the SME Implementation Group draft Q&As (PDF 32k). All of our past comment letters are here.

1 December 2011: Outcomes from November 2011 AOSSG meeting

The third meeting of the Asian-Oceanian Standard-Setters Group (AOSSG) was held in Melbourne, Australia, on 23 and 24 November 2011. The meeting was hosted by the Australian Accounting Standards Board (AASB) and was attended by 21 participating standard setting bodies. Topics discussed included: Administrative matters. The group confirmed Kevin Stevenson (Chairman of the AASB) as Chair of the AOSSG and elected of the Chair of the Hong Kong Institute of CPAs (HKICPA) Financial Reporting Standards Committee, Clement Chan, as the Vice Chair of the AOSSG. The meeting agreed to extend the terms of the AOSSG Chair and AOSSG Vice-Chair from one year to two years to facilitate the long-term efficiency and effectiveness of the Group IAS 41 Agriculture. The group members discussed a working group proposal, recently submitted to the IASB, to make a limited revision to IAS 41, specifically on bearer biological assets. The IASB members present tentatively expressed their support for considering the limited revision. The working group is also expected to begin considering a long-term research project that would involve performing a comprehensive review of IAS 41 Islamic finance. Members considered a working group presentation on the result of a recent survey on Islamic finance and noted some of the salient features of Islamic finance that may need to be considered when the IFRSs are being developed. In this regard, the working group suggested an Islamic Finance Advisory Group be established to provide input to the IASB and assist in the development of IFRSs Emissions trading schemes. The group acknowledged the need for a global accounting standard on the emissions trading schemes (ETS) and urged the IASB to accelerate its ETS project Other technical matters. The group discussed many IASB projects such as the agenda consultation, revenue recognition, leases, investment entities and financial instruments, and discussed other technical matters related to foreign currency translation and present valuing future cash flows. Click for Communiqué from the meeting (link to AOSSG website). An informal meeting of the AOSSG is planned for March 2012 in Kuala Lumpur.