31 January 2011: EFRAG and UK ASB issue discussion paper on accounting standards

The European Financial Reporting Advisory Group (EFRAG) and the UK Accounting Standards Board (ASB) have issued a Discussion Paper Considering the Effects of Accounting Standards. The purpose of the Discussion Paper is noted as "to put forward, for public comment, proposals to integrate (or further embed) into the standard setting due process a systematic process for considering the effects of accounting standards as those standards are developed and implemented". The discussion paper is open for comment until 31 August 2011. Click for EFRAG press release (link to EFRAG website) and the discussion paper (PDF 1,421k).

31 January 2011: Deloitte publications update

The following Deloitte publications are now available: Global publications Comment letter: IASB Request for Views on Effective Dates and Transition Methods (PDF 46k) Deloitte (United States) Heads Up Blue-Ribbon Panel Reports on Private-Company Accounting Standards (PDF 98k) - discusses the Blue-Ribbon Panel's recently issued report to the Financial Accounting Foundation, the US FASB's parent organization. The report contains recommendations on how "accounting standards can best meet the needs of users of U.S. private company financial statements". Deloitte (Canada) Clôture de 2010 (PDF 151k) – a French translation of IFRS in Focus: Closing out 2010

31 January 2011: IASB publishes supplement to exposure draft on impairment

Today the IASB and FASB have published for public comment joint proposals on the impairment of financial assets, a supplementary document to the November 2009 IASB exposure draft Financial Instruments: Amortised Cost and Impairment. Many respondents to the IASB’s original exposure draft agreed with the impairment approach proposed but considered it to be operationally too difficult to apply, especially in the context of open portfolios. Financial Instruments: Impairment proposes to replace the incurred loss impairment models in IAS 39 and US GAAP with an expected loss impairment model including separate approaches to recognising expected losses for performing assets in a "good book" and for troubled assets in a "bad book". Expected credit losses in the "good book" would be recognised under a time-proportional approach based on the weighted average age and expected life of the assets in the portfolio, but subject to a minimum allowance of at least those credit losses expected to occur in the foreseeable future (a period on not less than twelve months from the reporting date). When assets are transferred from the "good book" to the "bad book" the proposals would require the expected credit loss to be immediately recognised. The supplement also includes an IASB-only Appendix Z Presentation and Disclosure for public comment, which includes separate proposals on impairment of financial assets specifically addressing scope, presentation and disclosure. These proposals have been deliberated only by the IASB at this time. The FASB may separately deliberate presentation and disclosure requirements related to proposals in the supplementary document. The exposure draft forms part of the IASB's overall project to replace IAS 39 Financial Instruments: Recognition and Measurement, and when their proposals are confirmed they will be incorporated into IFRS 9 Financial Instruments. The supplement has a 60-day comment period with comments due on 1 April 2011. Click for: IASB press release (PDF 42k) Access to the Supplement to the Exposure Draft (link to IASB's website) IASB Snapshot: Supplement to the Exposure Draft Financial Instruments: Amortised Cost and Impairment (PDF 79k) History of the IASB's impairment project on IAS Plus

31 January 2011: Harvard Business School e-book on integrated reporting

Harvard Business School has made available a free e-book entitled The Landscape of Integrated Reporting: Reflections and Next Steps. On 14-15 October 2010, "A Workshop on Integrated Reporting: Frameworks and Action Plan" was held at the Harvard Business School, which discussed the concept of integrated reporting, what its contribution could be to creating a more sustainable society, and what must be done to ensure its rapid and broad adoption in a high quality way. Attendees included companies, analysts and investors, NGOs, regulators and standard setters, accounting firms, technology and data vendors, academics, students, and civil society. Following the workshop, the Harvard Business School decided to publish a free "e-book". Everyone who attended the workshop was invited to write a contribution for the book, which saw 64 pieces contributed totalling some 110,000 words. The objective of the book is to capture the current state of integrated reporting in the world, highlight the critical issues that must be addressed to ensure its rapid and broad adoption, and offer many good suggestions for an effective action strategy to make this happen. With the International Integrated Reporting Committee (IIRC) aiming to issue an international discussion paper later in 2011 and include integrated reporting on the agenda of the G20 meeting in November 2011, the e-book may be useful reading for those interested in understanding the developing push towards integrated reporting. The e-book can be accessed for free through the Smashwords website. The Harvard Business School has also published an Executive summary (link to HBS website, PDF 2130k) of the workshop. Click for our Sustainability reporting page.

28 January 2011: Deloitte publications update

The following Deloitte publications are now available: Deloitte (United States) Audit Committee Brief — Issues for Audit Committees to Consider at Year-End (PDF 110k) - includes discussion of the challenges of compliance with existing standards in an uncertain economy and questions the audit committee may want to consider asking management and the independent auditor regarding the implications of the prolonged economic downturn. Deloitte (Canada) L'IASB publie un exposé-sondage sur la comptabilité de couverture (PDF 114k), a French translation of IFRS in Focus: IASB issues exposure draft on hedge accounting Deloitte (New Zealand) Accounting Alert update (January 2011) (PDF 313k) - includes discussion of relief for some entities affected by the NZ Budget 2010 in relation to loss of tax depreciation on buildings, changes to financial instruments, management commentary, Securities Commission review of financial reporting and other topics

28 January 2011: IASB publishes exposure draft on offsetting

The IASB and FASB have published for public comment joint proposals on the offsetting of financial assets and financial liabilities in the statement of financial position. ED/2011/01 Offsetting Financial Assets and Financial Liabilities proposes to require offsetting when an entity has the right to set-off a financial asset and financial liability and intends to either settle on a net basis or simultaneously. The main proposals of the ED in detail Under the proposals, an entity would be required to offset (ie present as a single net amount in the statement of financial position) a recognised financial asset and a recognised financial liability if, and only if, it has an enforceable unconditional right of set-off and intends either to settle the asset and liability on a net basis or to realise the asset and settle the liability simultaneously (the offsetting criteria). The proposals clarify that the offsetting criteria apply whether the right of set-off arises from a bilateral arrangement or from a multilateral arrangement (ie between three or more parties). The proposals also clarify that a right of set-off must be legally enforceable in all circumstances (including default by or bankruptcy of a counterparty) and its exercisability must not be contingent on a future event. The proposals would require an entity to disclose information about offsetting and related arrangements (such as collateral agreements) to enable users of its financial statements to understand the effect of those arrangements on its financial position. The proposed requirements would supersede the requirements on offsetting in IAS 32 Financial Instruments: Presentation. Although the proposals are broadly comparable to the requirements contained in IAS 32 currently, they would modify the offsetting criteria in IFRSs by clarifying that the right of set-off should not only be currently enforceable. Additionally, the proposal would enhance the disclosures by requiring improved information about the assets and liabilities subject to set-off and the related arrangements. The ED has a 90-day comment period with comments due on 28 April 2011. Click for: IASB press release (PDF 53k) Access to the Exposure Draft (link to IASB's website) IASB Snapshot: Offsetting Financial Assets and Financial Liabilities (PDF 90k) History of the IASB's offsetting project on IAS Plus

27 January 2011: Agenda for the February 2011 IASB meeting

The IASB will hold its monthly meeting for February 2011 at the IASB offices in London on 1 and 2 February 2011. The meeting are joint meetings with FASB. The meeting will be open to public observation. Presented below is the agenda for the meeting. All times are Greenwich Mean Time (GMT). IASB Board Meeting Agenda 1-2 February 2011, London Tuesday, 1 February 2011 IASB Meeting (12:45-13:00) Post-implementation Reviews IASB/FASB Joint Meeting (13:00-16:15) Revenue Recognition — The Boards will consider whether an entity should allocate revenue to all product warranties and, if not, to which warranties an entity should allocate revenue. Leases — The Boards will continue their discussions on how to distinguish between a lease contract and a service contract. Wednesday, 2 February 2011 IASB Meeting (13:30-15:00) Post-employment Benefits — The Board will discuss the proposals in the ED regarding accounting for risk-sharing features and will be provided with an updated timetable and a summary of tentative decisions to date. IASB/FASB Joint Meeting (15:15-17:15) Revenue Recognition – The Boards will consider whether (and, if so, which) costs of obtaining a contract should be recognised as an asset. Insurance Contracts – The Boards will review project assumptions and consider the treatment of acquisition costs for Insurance Contracts.

27 January 2011: South Africa releases integrated reporting guidelines

The Integrated Reporting Committee' (IRC) of South Africa has released for comment a Discussion Paper Framework for Integrated Reporting and the Integrated Report. In February 2010, the Johannesburg Stock Exchange (JSE), through its Listings Requirements, made it compulsory for all listed companies to comply with the King Code of Governance Principles for South Africa 2009 ("King III"), which includes the requirement for a company to produce an integrated report for its financial year starting on and after 1 March 2010, or to explain why it was not doing so. The IRC was established in May 2010 to develop guidelines on good practice in integrated reporting in meeting these requirements. The IRC Discussion Paper is designed to provide principles and guidance on the creation of an integrated report. It discusses the key reporting principles (scope, boundaries, content), suggested elements to be included in the integrated report and assurance on reported information. An extract from the Discussion Paper follows: "... the overarching objective of integrated reporting is to enable stakeholders to assess the ability of an organisation to create and sustain value over the short-, medium- and long-term. The users of an organisation's integrated report should be able to determine from the report whether the organisation's governing structure has sufficiently applied its collective mind in identifying the social, environmental, economic and financial issues that impact on the organisation's business, and whether these issues have been appropriately incorporated into its strategy. An integrated report is not simply an amalgamation of the financial statements and the sustainability report. It incorporates, in clear language, material information from these and other sources to enable stakeholders to evaluate the organisation's performance and to make an informed assessment about its ability to create and sustain value. An integrated report should provide stakeholders with a concise overview of an organisation, integrating and connecting important information about strategy, risks and opportunities and relating them to social, environmental, economic and financial issues." The International Integrated Reporting Committee (IIRC), formed in July 2010, also aims to issue an international discussion paper later in 2011 and include integrated reporting on the agenda of the G20 meeting in November 2011. However, the urgent need for guidance in South Africa has seen the issue of the Discussion Paper in advance of global initiatives, and may be a useful indicator of what may emerge globally. The Discussion Paper is open for comment until 25 April 2011. Click for press release (link to Sustainability SA website, Word document).

27 January 2011: CICA report on MD&A discussion of IFRS

The Canadian Institute of Chartered Accountants (CICA) has published a special year-end publication produced by staff from CICA's Canadian Reporting Performance Board, which reviews various considerations for companies in preparing their Management Discussion & Analysis (MD&A). The publication notes the focus for the IFRS changeover discussion in the MD&A should be moving from reporting progress on the IFRS conversion plan to communicating the impact of the changeover. It also emphasises that users will want to understand how much of the change in reported performance in the first quarter of 2011 relates to business issues and how much relates to the change in accounting regime. Click for CPR Alert Issue 12 (link to CICA website)

26 January 2011: United States 'Blue-Ribbon Panel' issues report on private company reporting

The 'Blue-Ribbon Panel' addressing how U.S. accounting standards can best meet the needs of users of private company financial statements has issued a report of its recommendations to the Financial Accounting Foundation (FAF) Board of Trustees. The report calls for fundamental changes to the system of standard setting, including the creation of a new board, to be overseen by the FAF, that would focus on making exceptions and modifications to U.S. GAAP for private companies that better respond to the needs of the private company sector. The report also recommends the creation of a differential framework (a set of decision criteria) to facilitate a standard setter's ability to make appropriate, justifiable exceptions and modifications. The report does not advocate a move toward a separate, self-contained GAAP for private companies or a comprehensive reorganisation of GAAP. The report confirms the Panel's view that mandating the use of the IFRS for SMEs in the United States is not appropriate at the current time. However, because the AICPA now recognises the IASB as an authoritative standard setter, in many instances private companies (other than financial institutions) may also report under IFRS or IFRS for SMEs. An extract follows: U.S. private companies should not be leading the charge, en masse, to an IFRS-based set of standards before the SEC makes a decision on U.S. public companies, especially given the extent of change management efforts that private company stakeholders might have to undertake. Click for FAF press release (link to FAF website)

26 January 2011: Kazakhstan considers adopting IFRS for SMEs

Kazakhstan may introduce the IFRS for Small and Medium-sized Entities (IFRS for SMEs). The World Bank and the IFRS Foundation were invited to hold a workshop in Astana to present the main features of the standard. Around 50 participants from the prime-minister's office, ministry of finance, state property commission, financial control commission, tax and customs authorities, professional accounting bodies and universities attended the workshop. The Government of Kazakhstan is currently considering whether to adopt the IFRS for SMEs for business entities which are not Public Interest Entities (PIEs) in place of the existing Kazakh National Accounting Standards (KNAS). After the workshop Michael Wells from the IFRS Foundation said: "Seventy countries are either using or are planning to consider using the IFRS for SMEs standard in the next few years. I hope that Kazakhstan will be the first country in Central Asia to adopt the standard." Click for: World Bank press release (link to World Bank website) Our country page Kazakhstan Our summary of the IFRS for SMEs

26 January 2011: FASB scales back fair value proposal

The US Financial Accounting Standards Board (FASB) has relented on its previous plans to require companies to report all of their financial instruments at fair value. Yesterday, the FASB tentatively decided to permit accounting for financial assets for which an entity's business strategy is managing the assets for the collection of contractual cash flows through a lending or customer financing activity at amortized cost. This reversal from the original idea of requiring accounting for most types of financial instruments, including bank loans, at fair value brings the FASB closer to the mixed measurement approach adopted by the International Accounting Standards Board (IASB) under which some assets would be reported at fair value and others at amortized cost. Click for: FASB Summary of Board decisions concerning the accounting for financial instruments (link to FASB website) Our Financial Instruments project page

25 January 2011: IASB podcast on progress in the Insurance Contracts project

The IASB has released a downloadable podcast in which Warren McGregor, IASB member, takes stock of the joint IASB/FASB project on Insurance Contracts. He summarises the discussions at the joint board meeting in January, considers the feedback received in the comment letters and provides an overview of the planned discussions at the next joint board meeting in February. Click for: Access to the podcast (link to IASB website) Our Insurance Contracts project page

25 January 2011: Live webcasts on Offsetting

On Monday 31 January 2011 the IASB will be hosting two live webcasts on the financial asset and financial liability offsetting exposure draft which is expected to come out that day. Topic: ED Financial Asset and Financial Liability Offsetting Date and time: Monday, 31 January 2011, 10:00 GMT and repeated 15:00 GMT More information on the webcast and registration: click here More information on IAS Plus: Our summary of the IASB's project on Asset and liability offsetting

25 January 2011: Deadline reminder – Effective Dates and Transition Methods

We remind you that comments on the Request for views: Effective Dates and Transition Methods are due on 31 January 2011. With a number of major projects planned to be completed in 2011, the IASB and FASB are seeking views on whether or how to sequence effective dates in order to reduce the burden to interested parties.

25 January 2011: Financial institutions call for more climate change information

The United Nations Environment Programme Finance Initiative (UNEP FI) and the Sustainable Business Institute Germany (SBI) have released a report, Advancing adaptation through climate information services – Results of a global survey on the information requirements of the financial sector. The report, sponsored by the German Federal Ministry of Education and Research, presents the results of an international survey undertaken by the Climate Change Working Group (CCWG) of the UNEP FI and the SBI. More than 60 institutions, from both developed and developing countries, took part in the survey. The report concludes the availability of and access to climate change information remains insufficient. It notes the increasing financial relevance of climate change and highlights the fact that insurers and lenders need better information regarding the physical and economic impacts of the world's changing weather patterns. The survey identified that information gaps can be closed by continued research towards more reliable climate modelling and forecasting, as well as enhanced translation of scientific knowledge and existing information into user-friendly information. Click for press release (link to United Nations Environment Programme website).

24 January 2011: IASB and FASB cancel additional joint meeting on 26 January

The additional joint IASB and FASB meeting originally scheduled for Wednesday, 26 January 2011, has now been cancelled. Additional joint meetings remain tentatively scheduled for Tuesday and Wednesday, 1 and 2 February 2011. The next confirmed meeting is the regular IASB meeting to be held 14-18 February 2011.

24 January 2011: Deloitte publications update

The following Deloitte publications are now available: Global publications Updated IASB Project Insights: Leases (PDF 94k) Post-employment benefits (PDF 75k) Revenue recognition (PDF 73k) Comment letter: IFRS Foundation Trustees' questionnaire IFRS Interpretations Committee Review (PDF 109k) Deloitte (United States) Heads Up Snow Day for TDRs - FASB Finalizes ASU Delaying Effective Date of Disclosures About TDRs by Creditors (PDF 89k) - discussing FASB's issue of ASU 2011-01 (link to FASB website), which temporarily defers the effective date in ASU 2010-202 for disclosures about troubled debt restructurings (TDRs) by creditors until the Board finalizes its project on determining what constitutes a TDR for a creditor Deloitte (Canada) L'IASB publie des modifications de l'IFRS 1 relativement à la première application des IFRS après une période d'hyperinflation grave (PDF 55k) – a French translation of IFRS in Focus: IASB issues amendments to IFRS 1 on first-time adoption of IFRSs after period of severe hyperinflation Publication par l'IASB de modifications apportées à IAS 12 (PDF 58k) – a French translation of IFRS in Focus: IASB issues amendments to IAS 12 Le point sur les IFRS – Édition Décembre 2010 (PDF 97k) – a French translation of the December 2010 edition of IFRS on Point Deloitte (Japan) A Japanese translation of IFRIC Review: IFRS Interpretations Committee Meeting held on 6-7 January 2011 (PDF 229k)

24 January 2011: GRI publishes sustainability reporting guidelines in Arabic, launches Focal Point USA

The Global Reporting Initiative (GRI) has announced the launch of the GRI Sustainability Reporting Guidelines in Arabic. The new Arabic Guidelines are a result of collaboration between GRI and The Egyptian Corporate Responsibility Center (ECRC). The GRI Sustainability Reporting Framework is designed to enable large and small companies, non-profit organisations and government bodies worldwide to assess their sustainability performance and disclose the results. The Arabic Guidelines will enable organisations in the Middle East to be more transparent about their sustainability performance, supporting GRI's goal to "mainstream" sustainability reporting worldwide. Also, GRI's Focal Point USA will be officially launched at the New York Stock Exchange on Monday 31 January 2011. The Focal Point USA began operations in October 2010 and aims to address the needs of the unique marketplace in the USA and to boost the quality and quantity of sustainability reports coming from US organizations. The rapidly upward trend in sustainability reporting globally, and particularly in Europe, has not been mirrored in the USA yet. Click for GRI press releases (links to GRI website): GRI press release on new Arabic Guidelines GRI press release on new Focal Point USA

24 January 2011: New publications from the IAASB on financial statement disclosures and audit quality

The International Auditing and Assurance Standards Board (IAASB) has released two new documents: A discussion paper, The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications, which highlights recent trends in the range, volume, and complexity of financial statement disclosures, and explores issues and practical challenges in preparing, auditing, and using them. The Discussion Paper has been prepared using the disclosures required by IFRSs as a frame of reference. Comments on the discussion paper close on 1 June 2011 A publication, Audit Quality: An IAASB Perspective, designed to stimulate further debate on audit quality and further the IAASB's efforts to facilitate robust audits in the public interest. Click for IAASB press release (link to IFAC website).

21 January 2011: Notes from Days 3 and 4 of the January IASB meeting

The IASB is meeting in London on 18-21 January 2011 for its regular January meeting, some of which is a joint meeting with the FASB. We've posted further Deloitte observer notes from days three and four of the meeting (click through for direct access to the notes): Thursday, 20 January 2011 Leases (IASB/FASB) Education session on the way forward for lessor accounting model(s) Joint Arrangements Annual Improvements to IFRSs Amendments to Due Process Handbook Amendments to IAS 1 to reflect the Conceptual Framework Consolidation and Investments in Associates IFRS Interpretations Committee update Friday, 21 January 2011 Post-employment Benefits Presentation of components of defined benefit cost Interaction of IAS 19 Proposals and IAS 37 Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

21 January 2011: AICPA updates IFRS Backgrounder

The American Institute of Certified Public Accountants (AICPA) has updated its publication, International Financial Reporting Standards (IFRS): An AICPA Backgrounder. This publication describes the regulators, standard setters and others who play a critical role in the adoption of IFRS. The publication also includes information about the convergence activities of the IASB and FASB, as well as information on adoption of IFRSs in the US, including the US Securities and Exchange Commission's recent progress report on its IFRS Work Plan.

21 January 2011: AcSB extends deferral of implementation of IFRS for investment funds

The Accounting Standards Board (AcSB) extended by one year the deferral of the mandatory changeover to IFRSs for investment companies and segregated accounts of life insurance enterprises. In October 2009, the Canadian Securities Administrators (CSA) proposed amendments that would have required investment funds to transition to IFRS by 1 January 2011. In October 2010, the AcSB deferred the mandatory IFRS changeover date to 1 January 2012 for investment companies in order to give the International Accounting Standards Board (IASB) time to implement the proposed exemption for investment companies from having to consolidate investments they control. The new goal for IFRS implementation for investment funds is now 1 January 2013. Click for: Decision summary from the AcSB meeting in January 2011 (link to Canadian Institute of Chartered Accountants website) Our summary of the IASB's project on consolidation

21 January 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 17 January 2011 (PDF 195k). Currently, the following five IASB pronouncements await endorsement action: IFRS 9 Financial Instruments Amendments to IFRS 7 Financial Instruments: Disclosures Improvements to IFRSs 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 You can always find the endorsement status report Here.

21 January 2011: Additional Board meetings

The IASB has announced two additional Board meetings: Wednesday, 26 January 2011, 13:00 - 15:00 GMT: Joint meeting with the FASB Topic to be discussed: Leases Further information and registration: Here (link to IASB website) Tuesday and Wednesday, 1 and 2 February 2011 (tentative) Meeting times and topics to be discussed yet to be announced

21 January 2011: Notes from Days 2 and 3 of the January IASB meeting

The IASB is meeting in London on 18-21 January 2011 for its regular January meeting, some of which is a joint meeting with the FASB. We've posted further Deloitte observer notes from days two and three of the meeting (click through for direct access to the notes): Wednesday, 19 January 2011 Leases (IASB/FASB) Preliminary comment letter analysis and redeliberation plan How to define a lease and how to distinguish it from a service Insurance Contracts (IASB/FASB) Education session: The discount rate Thursday, 20 January 2011 Revenue Recognition (IASB/FASB) Perfunctory obligations, incidental obligations and marketing incentives Determining the transfer of goods and services Notes from the afternoon discussions on Thursday will be posted soon. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

20 January 2011: Publications by national Deloitte member firms

Deloitte (Canada) has published L'IASB publie des modifications des IFRS relativement à la suppression des dates d'application fermes pour les nouveaux adoptants, the French translation of IFRS in Focus: IASB issues amendments to IFRS on removal of fixed dates for first-time adopters. Deloitte (United States) has published a new CFO Insights newsletter, IFRS: Are Your ERP Systems Ready?. Click for: L'IASB publie des modifications des IFRS relativement à la suppression des dates d'application fermes pour les nouveaux adoptants (PDF 56k) CFO Insights newsletter: IFRS: Are Your ERP Systems Ready? (PDF 128k)

20 January 2011: EC decision on international cooperation on the supervision of auditors

The European Commission has adopted a first decision recognising the equivalence of the audit oversight systems in 10 third countries. This decision paves the way for reinforced cooperation between Member States and third countries which have been declared equivalent, so that they can mutually rely on each others' inspections of audit firms. The countries assessed as equivalent are Australia, Canada, China, Croatia, Japan, Singapore, South Africa, South Korea, Switzerland and the United States of America. The decision also grants a transitional period to auditors from 20 third countries allowing them to continue their audit activities in the EU while further assessments are carried out. Click for EC press release (link to EC website).

20 January 2011: IPSASB publishes revised guidance on transition to the accrual basis of accounting in the public sector

The International Public Sector Accounting Standards Board (IPSASB) has released an updated and improved version of Study 14, Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities. The third edition of Study 14 provides guidance on how to migrate to the accrual basis of accounting in accordance with International Public Sector Accounting Standards (IPSASs), and is relevant to governments and other public sector entities, including international governmental organisations. Click for IPSASB press release (link to IFAC website).

20 January 2011: Notes from Day 2 of January IASB meeting

The IASB is meeting in London on 18-21 January 2011 for its regular January meeting, some of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the revenue recognition topic discussed on day two of the meeting (click through for direct access to the notes): Wednesday, 19 January 2011 Revenue recognition (IASB/FASB) Determining the transfer of goods and services Separating a contract Identifying separate performance obligations Notes from the discussions on lease accounting and insurance contracts will be posted soon. The IASB has also announced that the Thursday session of the meeting will commence at 9:00am (rather than 8:15am). Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

19 January 2011: IVSC issues exposure draft on real property and business valuations

The International Valuation Professional Board, an independent technical body of the International Valuation Standards Council (IVSC), has released for comment an exposure draft of Technical Information Paper 1 The Discounted Cash Flow (DCF) Method – Real Property and Business Valuations. Technical Information Papers (TIPs) are designed to provide technical guidance for valuation professionals on generally accepted best practice, but do not provide valuation training or instruction. The objective of the exposure draft is to describe the discounted cash flow (DCF) method and its application for the valuation of businesses and real property interests. It describes best practice in performing and reporting valuations using the DCF method. It also considers the different inputs that are appropriate for valuations where market value is the objective and those where investment value is required. The exposure draft concludes: the DCF method can provide an appropriate measure for either market value or investment value if properly applied the DCF method may be more applicable than other methods if the asset or business is experiencing significant growth, has yet to reach a mature level of operations, or where the asset will have a defined life such as the case with assets and businesses in the energy and natural resource sector if a minority interest in a business is being valued (as can arise under IFRS 3 Business Combinations (2008)), the possible applicability of a discount to the pro-rata value per share to reflect the lack of control and/or liquidity should be considered, if not already taken into account in the cash flows. In certain circumstances a Dividend Discount Model (DDM), which is a variant of the DCF method, may be a more applicable method to value a minority interest in an asset or business. Comments on the exposure draft close on 30 April 2011. Click for access to the exposure draft (link to IVSC website).

19 January 2011: FAF publishes U.S. GAAP Financial Reporting Taxonomy

The Financial Accounting Foundation (FAF) has announced the availability of the 2011 U.S. GAAP Financial Reporting Taxonomy pending final acceptance by the U.S. Securities and Exchange Commission (SEC). The taxonomy is designed to be used for creating and submitting eXtensible Business Reporting Language (XBRL) tagged interactive data files in compliance with SEC rules. In December 2008, the SEC issued a ruling requiring all public companies and foreign private issuers that prepare their financial statements in accordance with U.S. GAAP, and foreign private issuers that prepare their financial statements using IFRSs as issued by the IASB, to lodge financial reports in XBRL. The introduction of the XBRL filing requirement is being staged over a number of dates, with certain remaining U.S. GAAP filers, including smaller reporting companies, and all foreign private issuers that prepare their financial statements in accordance with IFRS as issued by the IASB, required to lodge in XBRL format from 15 June 2011. In early 2010, the FAF assumed maintenance responsibilities for the taxonomy and it will be relevant to entities preparing financial reports in accordance with U.S. GAAP. The IFRS Foundation has recently published its proposed IFRS Taxonomy 2011. Click for: FAF press release (link to Financial Accounting Foundation website) Our earlier story on the proposed IFRS Taxonomy 2011 Our earlier story on the pilot study of the IFRS XBRL taxonomy Our XBRL page

18 January 2011: PCAOB publishes new auditing standards on risk assessment

The Public Company Accounting Oversight Board (PCAOB) today published eight auditing standards related to an auditor's assessment of and response to audit risk. The eight standards are: Auditing Standard 8 (AS No. 8) - Audit Risk Auditing Standard 9 (AS No. 9) - Audit Planning Auditing Standard 10 (AS No. 10) - Supervision of the Audit Engagement Auditing Standard 11 (AS No. 11) - Consideration of Materiality in Planning and Performing an Audit Auditing Standard 12 (AS No. 12) - Identifying and Assessing Risks of Material Misstatement Auditing Standard 13 (AS No. 13) - The Auditor's Responses to the Risks of Material Misstatement Auditing Standard 14 (AS No. 14) - Evaluating Audit Results Auditing Standard 15 (AS No. 15) - Audit Evidence The standards are approved by the Securities and Exchange Commission and become effective for audits of fiscal periods beginning on or after Dec. 15, 2010. Click here to view the Auditing Standards on the PCAOB website.

18 January 2011: Notes from Day 1 of January IASB meeting

The IASB is meeting in London on 18-21 January 2011 for its regular January meeting, some of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the topics discussed on day one of the meeting. The topics discussed were as follows (click through for direct access to the notes for that particular topic): Tuesday, 18 January 2011 Insurance contracts — Comment letter analysis Financial instruments: impairment Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

18 January 2011: Publications by national Deloitte member firms

Deloitte's IFRS Global office has published the January 2011 edition of the IFRIC Review, which summarises the meeting of the IFRS Interpretations Committee on 6-7 January 2011. Deloitte (Colombia) has published IFRS: una actualización para juntas y comités de auditoría, the Spanish translation of IFRS: An update for boards and audit committees. Deloitte (Canada) has published L'IASB publie une directive sur les commentaires de la direction, the French translation of IFRS in Focus: IASB issues Practice Statement on management commentary. Deloitte (Russia) has published МСФО в кармане 2010, the Russian translation of IFRS in Your Pocket 2010. Click for: IFRIC Review (PDF 67k) IFRS: una actualización para juntas y comités de auditoría (IFRS: An update for boards and audit committees in Spanish, PDF 595k) L'IASB publie une directive sur les commentaires de la direction (IFRS in Focus: IASB issues Practice Statement on management commentary in French, 54k) МСФО в кармане 2010 (IFRS in Your Pocket 2010 in Russian, 2,097k)

18 January 2011: IFRS Foundation publishes proposed IFRS Taxonomy 2011

The IFRS Foundation has published for public comment an exposure draft of the IFRS Taxonomy 2011. The proposed taxonomy is a translation of pronouncements as issued at 1 January 2011 into XBRL (eXtensible Business Reporting Language) and is consistent with IFRSs (International Financial Reporting Standards), including IASs (International Accounting Standards) and the IFRS for SMEs (Small and Medium-sized Entities). Click for IFRS Foundation press release (link to IFRS Foundation website). An interactive webcast on the proposed 2011 taxonomy will be held at 9:00am (London time) on Thursday, 27 January 2010, and repeated at 3:00pm (London time) on the same day. Click for registration information (link to IFRS Foundation website). The exposure draft IFRS Taxonomy 2011 is open for comment until 18 March 2011.

18 January 2011: New issue of the IASB's Investor Perspectives

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 entitled Investor Perspectives. A new edition is now available: 17 January 2011 – Stephen Cooper: Reforming hedge accounting All Investor Perspectives are archived on the IASB's website.

18 January 2011: IFRS XBRL taxonomy in Japanese

The IFRS Foundation has published a Japanese translation of the IFRS (International Financial Reporting Standards) Taxonomy 2010. The taxonomy is an official IFRS Foundation translation of the complete 2010 taxonomy label linkbases into Japanese, created using official terminology. Click for: IFRS Foundation press release (link to IFRS Foundation website) Our XBRL page

18 January 2011: FASB webcast on priorities for 2011

The Financial Accounting Standards Board (FASB) has announced it will host a webcast featuring FASB Chairman Leslie F. Seidman discussing the FASB's priorities for 2011. The webcast will include updates on top projects and progress on the FASB's joint agenda with the International Accounting Standards Board (IASB). Topic: 2011 Chairman's Outlook on the FASB Date and time: Tuesday, 25 January 2011 1:00 pm - 2:00pm (US) More information: Click here (link to FASB website) Registration: Click here (link to FASB website)

17 January 2011: ICAI publishes near final drafts of Indian Accounting Standards

The Institute of Chartered Accountants of India (ICAI) has published near final Indian Accounting Standards (Ind ASs) finalised by the Council of the ICAI and sent to the Indian National Advisory Committee on Accounting Standards (NACAS). The near final Ind ASs are based on IFRSs, but have some changes which are noted in the appendix to each standard, e.g. investment property must be measured on the cost basis, bargain purchases arising in business combinations are generally recognised in other comprehensive income rather than profit or loss, and the 'date of transition' is the beginning of the current period rather than the comparative period (an option to present comparative financial statements in accordance with Ind-ASs on a memorandum basis is included). The Ind ASs are subject to any changes which may be made by the Government before their notification. There is currently a lot of debate in India whether the 'modified' IFRS approach is the best way to implement IFRSs in India. The changes made in the final drafts may mean entities complying with Ind ASs will not be able to make an explicit and unreserved statement of compliance with IFRSs. There is also some conjecture as to whether the implementation of the new Ind ASs should be deferred from the original date of April 2011 (for certain entities). Click for access to the final drafts (link to the ICAI website). Our India country page is Here.

17 January 2011: AASB outreach on IASB's hedging proposals

The Australian Accounting Standards Board (AASB) is hosting outreach meetings with constituents and representatives of the IASB to discuss the IASB's exposure draft ED/2010/13 Hedge Accounting. The outreach meetings may also include an update on the IASB's tentative decisions on its revised impairment model for financial assets measured at amortised cost. The meetings are scheduled as follows: Sydney - Monday, 24 January 2011 (10:00 am – 12:00 pm for financial institutions, 2:00 pm – 3:30 pm for non-financial institutions) Melbourne - Wednesday, 2 February 2011 (10:30 am – 12:00 pm, for non-financial institutions). Click for AASB press release (link to the AASB website).

15 January 2011: Updated Agenda for the January 2011 IASB meeting

The IASB has revised its agenda for its monthly meeting for January 2011 at the IASB offices in London from 17 to 21 January 2011. An additional IASB session on a sweep issue relating to IFRS 10 and IAS 28 (potential voting rights when assessing significant influence) has been added to the agenda for Thursday. IFRS 10 Consolidated Financial Statements is expected to be published at the end of this month. Click for updated agenda of the meeting.

14 January 2011: Financial Accounting Foundation Appoints Daryl E. Buck and R. Harold Schroeder to the Financial Accounting Standards Board

Today, the Financial Accounting Foundation (FAF) announced the appointments of Daryl E. Buck and R. Harold Schroeder to the US Financial Accounting Standards Board (FASB). Mr. Buck and Mr. Schroeder will fill the two additional seats the FASB announced in August 2010, bringing the size of the FASB board from 5 to 7 members. Mr. Buck is currently Senior Vice President and CFO of Reasor's Holding Company in Tahlequah, Oklahoma. He was a member of the Private Company Financial Reporting Committee, an advisory board to the FASB, and member of the "Blue Ribbon" panel on Standard Setting for Private Companies. Mr. Schroeder is currently a partner at Carlson Capital, LP in Greenwich, Connecticut. His career has given him a diverse investor and financial reporting background. Also, he served as a member of the FASB's Emerging Issues Task Force. Click for the FASB's Press Release (link to FASB website).

14 January 2010: Publications by national Deloitte member firms

Deloitte (Brazil) has published Brazilian editions of 2010 Model financial statements and 2010 IFRS Presentation and Disclosure Checklist, both in Portuguese. In addition, Deloitte (Germany) has published German translation of the 2010 IFRS Presentation and Disclosure Checklist. Click for: Normas Internacionais de Relatório Financeiro - Modelo de demonstrações financeiras para 2010 (2010 Model financial statements in Portuguese, PDF 1,416k). Checklist de Apresentação e Divulgação IFRS 2010 (IFRS Presentation and Disclosure Checklist for 2010 in Portuguese, PDF 1,629k). IFRS Checkliste zu Ausweis- und Angabevorschriften 2010 (IFRS Presentation and Disclosure Checklist for 2010 in German, PDF 2,808k).

14 January 2011: Inaugural sessions of EBA and EIOPA

Similar to the first decisions of the new European Securities and Markets Authority (ESMA), the new European Banking Authority (EBA) and the new European Insurance and Occupational Pensions Authority (EIOPA) have also held their inaugural sessions and have elected chairmen and vice-chairmen. The EBA Board of Supervisors selected Andrea Enria as the EBA Chairperson, subject to confirmation by the European Parliament. Mr Enria is currently the head of the Supervisory Regulations and Policies Department at the Bank of Italy. The Board of Supervisors also appointed Thomas Huertas as the EBA Alternate Chairperson. Mr Huertas was Vice-Chairman of the EBA's predecessor CEBS and is currently Banking Sector Director at the UK FSA. The EIOPA Board of Supervisors has selected Gabriel Bernardino to become the first Chairperson. Mr. Bernardino is currently the Director General of the Directorate for Development and Institutional Relations at the Instituto de Seguros de Portugal (ISP). His nomination is subject to confirmation by the European Parliament. Mr. Bernardino represented EIOPA's predecessor, CEIOPS, as Chairman until December 2010. Additionally, the Board of Supervisors elected Victor Rod, Director of the Commissariat aux Assurances, Luxembourg, to be EIOPA's Alternate Chairperson. EBA and EIOPA have both also announced a new round of stress tests. Click for: EBA omnibus press release (link to EBA website) EIOPA press releases: EIOPA Elects Its First Management Board (PDF 115k, link to EIOPA website) Gabriel Bernardino Selected to be EIOPA's First Chairperson (PDF 106k, link to EIOPA website) EIOPA to Launch Second Europe-Wide Insurance Stress Test (PDF 109k, link to EIOPA website) Further news on the new European supervisory structure on our IFRSs in Europe pages

14 January 2011: IASB and FASB expect to issue revised proposals on impairment by the end of January 2011

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) have announced their intention to publish a proposed joint approach on credit impairment of loans and other financial assets managed in an open portfolio by the end of January 2011. The IASB and the FASB originally published separate proposals on credit impairment of financial assets. Although both boards proposed moving to a more forward-looking approach to accounting for impairment they proposed different models. Following joint discussion of the responses each board received on its original proposals, and requests by the Group of 20 (G20) Leaders, the Financial Stability Board, the Basel Committee on Banking Supervision and others to achieve convergence in this area, the boards expect to propose a common approach that incorporates elements of each of their original models. The boards will propose an impairment model based on accounting for expected losses. This approach provides a more forward looking approach to accounting for credit losses. Click for: IASB announcement (link to IASB website) Our Financial instruments – Impairment page providing a comprehensive summary of the project, including recent joint discussions

14 January 2011: IAASB proposes standard on engagements to review historical financial statements

The International Auditing and Assurance Standards Board (IAASB) has released for comment proposed International Standard on Review Engagements (ISRE) 2400, Engagements to Review Historical Financial Statements. The proposals would introduce robust standards for services that can be used by entities that are either not required or do not elect to be audited. A review of financial statements in accordance with the proposed ISRE consists primarily of making inquiries of management and others within the entity involved in financial and accounting matters, applying analytical procedures, and evaluating the sufficiency and appropriateness of evidence obtained. The procedures performed in a review are substantially less than those performed in an audit, and the practitioner does not express an audit opinion. Comments on the exposure draft are requested by 20 May 2011. Click for IAASB press release (link to IFAC website).

14 January 2011: IFRS Foundation announces outcomes of pilot XBRL study

The IFRS Foundation has concluded the pilot initiative that it launched in April 2010 to work with US-listed foreign companies to produce IFRS financial reports in eXtensible Business Reporting Language (XBRL) that are compliant with United States Securities and Exchange Commission (SEC) requirements. The SEC issued a ruling in December 2008 requiring all US-listed foreign private issuers to submit their IFRS financial reports, including their periodic reports in XBRL from 15 June 2011. 12 companies voluntarily used the IFRS Taxonomy to produce 20-F filings in XBRL format that could be accepted by the US SEC EDGAR filing system. 'Level 1' XBRL tagging was applied to the filings, i.e. all items in the primary financial statements were tagged while notes were tagged using a single text block. The outcomes of the pilot initiative revealed some interesting outcomes: Between 6 and 60 hours was required to complete the first stage of the process, which was the mapping of the primary financial statement line items to IFRS Taxonomy items Many participants found that they needed to create additional taxonomy items (i.e. IFRS Taxonomy extensions) to reflect common-practice concepts for their 20-F filings. The need for these extensions arose largely from IFRS requirements and the flexibility that IFRS allows for presentation and aggregation. The Foundation acknowledges this will need to be addressed, with an analysis to be undertaken of concepts that are not in the IFRS Taxonomy but that are commonly reported by commercial and industrial companies The results of the pilot and further analysis will be used to make amendments to the IFRS Taxonomy. Further field tests are expected with financial institutions and insurers, and on detailed note tagging. Click for: IFRS Foundation press release (link to IFRS Foundation website) Our XBRL page

13 January 2011: Updated Agenda for the January 2011 IASB meeting

The IASB has revised its agenda for its monthly meeting for January 2011 at the IASB offices in London from 17 to 21 January 2011. Meeting times and topics have been amended. The public sessions previously scheduled for Monday 17 January have been moved to Friday 21 January. The issues to be discussed in the post-employment benefits session have been deferred to a future meeting. Presented below is the revised agenda for the meeting. All times are Greenwich Mean Time (GMT). IASB Board Meeting Agenda 17-21 January 2011, London Monday, 17 January 2011 No public sessions expected Tuesday, 18 January 2011 IASB-FASB Joint Meeting (14:15-17:00) Insurance Contracts – comment letter analysis Financial Instruments: Impairment Wednesday, 19 January 2011 IASB-FASB Joint Meeting (09:00-19:00) Revenue Recognition – The Boards will redeliberate the following issues: how an entity should segment a contract and identify separate performance obligations how an entity should determine when goods or services are transferred to a customer and, hence, when an entity would recognise revenue whether an entity should apply the onerous test to a performance obligation, the contract or another unity of account Leases Preliminary comment letter analysis Redeliberation plan How to define a lease and how to distinguish it from a service Insurance Contracts – education session on some alternatives proposed for the rate used to discount insurance contracts Thursday, 20 January 2011 IASB-FASB Joint Meeting (08:15-12:30) Revenue Recognition (continued from previous day) Leases – education session on the way forward for lessor accounting model(s) IASB Meeting (13:15-16:00) Joint Arrangements – education session Assessment of the proposed Annual improvements qualifying criteria Annual Improvements to IFRSs Friday, 21 January 2011 IASB Meeting (08:30-11:15) Post-employment Benefits IFRS Interpretations Committee update Sweep issues (if needed)

13 January 2011: Steven Maijoor is selected as ESMA's first Chair

The new European Securities and Markets Authority (ESMA) has announced the selection of Steven Maijoor, as the proposed first Chair of ESMA. This follows a vote by ESMA's Board of Supervisors. Before taking up his duties, the selected Chairperson will be heard by the European Parliament who has up to one month to object to his designation. Steven Maijoor is currently a Director at the Netherlands Authority for the Financial Markets (AFM) where he is in charge of financial reporting, auditing issues, market integrity supervision and part of the business operations. Click for: ESMA press release (PDF 151k, link to ESMA website) Further ESMA news on our IFRSs in Europe pages

13 January 2011: Deloitte Japan webcast on December IASB meeting

Deloitte's IFRS Centre of Excellence in Japan has released a recorded webcast on the December meeting of the IASB. The 35 minute webcast is available for viewing until late May 2011. Click for: Access to the webcast (in Japanese) Japan Center of Excellence IFRS web pages (in Japanese) Our Japan country page Detailed Deloitte observer notes from the December IASB meeting.

13 January 2011: FEI notes IFRS as one of its 'Top 10' challenges for finance executives in 2011

Financial Executives International (FEI), an association for CFOs and other senior finance executives based in North America, has published FEI CEO's 2011 Top Challenges for Financial Executives, which includes discussion of the possible convergence of US GAAP with IFRS. An extract follows: Global Convergence of U.S.GAAP and IFRS Though the timeline for convergence projects has slowed, companies are monitoring efforts of the Financial Accounting Standards Board and International Accounting Standards Board. All are waiting for the U.S. Securities and Exchange Commission's next steps on whether or not it will permit International Financial Reporting Standards for U.S. publicly-held companies... The boards have a lot on their plates as they redeliberate comments from various 2010 EDs on key projects. Companies will consider how converged final standards are in 2011, especially in such areas as financial instruments. Another factor will be on transition and effective dates on key standards, which will determine how soon companies have to be prepared to report under the new standards – a challenge for companies. Click for FEI CEO's 2011 Top Challenges for Financial Executives (link to FEI website).

13 January 2011: Publications by national Deloitte member firms

Deloitte's IFRS Centre of Excellence in Hong Kong has published the HKFRS Presentation and Disclosure Checklist for 2010. This checklist is intended to aid entities reporting under Hong Kong Financial Reporting Standards (HKFRSs) in determining whether or not they comply with the presentation and disclosure requirements of HKFRSs and the applicable Hong Kong Companies Ordinance. The checklist also includes disclosures required by The Stock Exchange of Hong Kong in relation to the preparation of an annual report by a listed entity. This checklist covers the presentation and disclosure requirements effective for the year ended 31 December 2010. It also covers the presentation and disclosure requirements of certain Standards and Interpretations in issue at 30 September 2010 that are not effective for periods beginning on 1 January 2010. Earlier application of those Standards and Interpretations that are not yet mandatorily effective is generally permitted. This checklist does not address the requirements of HKFRSs in relation to the recognition and measurement. In addition, Deloitte (Japan) has published Japanese translations of recent IFRS in Focus newsletters. Click for: HKFRS Presentation and Disclosure Checklist for 2010 (PDF 2,197k, 254 pages) Japanese translations of our IFRS in Focus newsletters (archive is available Here): IFRS in Focus — IASB issues amendments to IFRS 1 on first-time adoption of IFRSs after period of severe hyperinflation (PDF 203k) IFRS in Focus — IASB issues amendments to IFRS 1 on removal of fixed dates for first-time adopters (PDF 197k) IFRS in Focus — IASB issues amendments to IAS 12 (PDF 209k) IFRS in Focus — Closing out 2010 (PDF 336k) IFRS in Focus — IASB issues exposure draft on hedge accounting (PDF 281k) IFRS in Focus — IASB issues Practice Statement on management commentary (PDF 222k)

12 January 2011: New issue of the IASB's Investor Perspectives

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: 11 January 2011 – Patricia McConnell: The objective of financial reporting and the qualitative characteristics of useful information – what investors should know All Investor Perspectives are archived on the IASB's website.

12 January 2011: IAASB proposes assurance standard to strengthen reporting on greenhouse gases

The International Auditing and Assurance Standards Board (IAASB) released for comment a proposed new International Standard on Assurance Engagements (ISAE) 3410 Assurance Engagements on Greenhouse Gas Statements. The proposed standard addresses the practitioner's responsibilities in identifying, assessing, and responding to risks of material misstatement, and contains illustrative assurance reports on greenhouse gas statements. The proposed requirements and guidance also recognize that most engagements will be undertaken by a multidisciplinary team, so they address the need for the assurance practitioner to integrate experts – in engineering or environmental science, for example – into various stages of the engagement. Comments on the exposure draft are requested by 10 June 2011. Click for IAASB press release (link to IFAC website).

12 January 2011: New IASB webpages on risk components and the time value of options

To accompany the exposure draft on hedge accounting published in December 2010, the IASB staff are providing further information on key issues in the document to assist interested parties in understanding the proposals in the exposure draft. Materials are now available on a webpage on the treatment of risk components  and on a webpage on the time value of options. The comment deadline for the exposure draft is 9 March 2011.

12 January 2011: IIRC round table series on integrated reporting

The International Integrated Reporting Committee (IIRC) has launched a series of round tables to be held in different regions in order to inform stakeholders about the IIRC's work and enable them to share their thinking on integrated reporting with the IIRC. The first of the round table events is to be held on 19 January 2011 in Mumbai. The IIRC round table will be part of the "Responsible Investment: Mainstreaming of Environmental, Social, Governance Factors" event hosted by German Development Corporation (Deutsche Gesellschaft für Technische Zusammenarbeit, GTZ) and the India focal point of the The Global Reporting Initiative (GRI). The International Integrated Reporting Committee (IIRC) was formed in August 2010 and aims to create a globally accepted framework for accounting for sustainability, bringing together financial, environmental, social and governance information in an "integrated" format. Click for: IIRC press release including event programme (link to IIRC website) GTZ press release (link to GTZ website) Our sustainability reporting page

11 January 2011: Spanish translation of Deloitte's newsletter on lease accounting in the retail industry

Deloitte (Colombia) has published Contabilidad en la industria minorista. Surge un nuevo punto de vista sobre la contabilidad del arrendamiento (PDF 216k), the Spanish translation of Accounting in the Retail Industry: A new view of lease accounting emerges, published in September 2010. Additional Spanish language translations of Deloitte publications can be found here: Recursos en Español.

11 January 2011: ESMA becomes operational

The Board of Supervisors (BOS) of the European Securities and Markets Authority (ESMA) held its inaugural meeting today. The meeting consisted of the election of Carlos Tavares as Vice-Chairman of ESMA. Tavares will be acting as the Chair of ESMA until the elected Chair of ESMA takes office. Also during the meeting, the BOS adopted rules and procedures that defined how ESMA will function and set up the Management Board. The ESMA also confirmed that all existing Level 3 measures issued by CESR will remain valid in their original status under ESMA. Click for: Press release (link to ESMA website)

11 January 2011: IASB podcast on the Insurance Contracts project

The IASB has posted to its website a podcast on the latest developments concerning the insurance contracts project. Warren McGregor, IASB member, summarises the discussions at the joint December Board meeting, considers the feedback received on the exposure draft/discussion paper and provides an overview of the planned discussions in January. Click for: Access to the IASB podcast (link to IASB website) Our IAS Plus summary of the IASB's project on insurance contracts

11 January 2011: Two surveys amongst German small and medium-sized entities on the IFRS for SMEs

The Accounting Standards Committee of Germany (ACSG) has published the results of two surveys amongst German small and medium-sized entities on their assessment of the IFRS for SMEs. The first survey that resulted in the Final Report of the Survey on the IFRS for SMEs among German SMEs asked 4.000 non-listed companies regarding the need for the IFRS for SMEs in Germany and their assessment of the requirements of the IFRS for SMEs compared to those under the German Accounting Modernisation Act. The final question was whether the SMEs participating in the survey would consider applying the IFRS for SMEs in their single and/or consolidated accounts if it were legally possible in the future. 14% of the responding entities answered with "yes", 83% with "no". 73% of those who answered with "no" stated that they prefer German GAAP, 17% percent preferred full IFRSs and 10% cited "other reasons". The second survey that resulted in the Final Report of the Survey on the IFRS for SMEs among German "small" publicly traded entities targeted 342 "small" listed companies (with sales up to 130 million Euro) and analysed their assessment of the IFRS for SMEs in general, compared to full IFRS and advantages or disadvantages in potentially applying the IFRS for SMEs. The survey showed that a majority of the participating publicly traded entities see the IFRS for SMEs as a sensible regulatory alternative that should be available to them. This is in clear contrast to the IASB's intention to exclude publicly traded entities from the scope of the standard. Click for: Final Report of the Survey on the IFRS for SMEs among German SMEs (PDF, 935k, link to ACSG website) Final Report of the Survey on the IFRS for SMEs among German "small" publicly traded entities (PDF, 799k, link to ACSG website) Access to German language versions of the reports on the ACSG website Our IAS Plus country page for Germany

11 January 2011: FRC proposes enhancements to company reporting and audit

The UK's Financial Reporting Council (FRC) has published recommendations aimed at improving the dialogue between company boards and their shareholders. The FRC's report, 'Effective Company Stewardship: Enhancing Corporate Reporting and Audit', contains seven key recommendations including the recommendations that companies should take advantage of technological developments to increase the accessibility of the annual report and its components and that there should be greater investor involvement in the process by which auditors are appointed. The overall aim of the recommendations is to provide more balanced and comprehensive information to investors. Click for FRC press release and the FRC's report (both links to FRC website).

11 January 2011: Notes from January IFRS Interpretations Committee meeting

The IFRS Interpretations Committee met in London on 6-7 January 2011. We have posted Deloitte observer notes from the topics discussed at the meeting, as follows (click through for direct access to the notes for that particular topic): Administrative matters Committee work in progress Accounting for production phase stripping costs in the mining industry Review of Tentative Agenda Decisions published in November IFRIC Update IAS 37 Provisions, Contingent Liabilities and Contingent Assets – Inclusion of own credit risk in discount rate IAS 32 Financial Instruments: Presentation – Put options written over non-controlling interests New items for initial consideration IFRS 3 Business Combinations and IAS 39 Financial Instruments Recognition and Measurement – Hedging the foreign exchange risk in a business combination IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – Hierarchy of guidance to select an accounting policy IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – Contingent pricing of PPE and intangible assets Annual improvements Annual improvements criteria – comment letter analysis Items for continuing consideration IAS 1 Presentation of Financial Statements – Current/non-current classification of debt (rollover agreements) Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

10 January 2011: US and UK regulators reach an information sharing agreement

The United Kingdom's Professional Oversight Board (POB), a part of the FRC, and the Public Company Accounting Oversight Board of the United States (PCAOB) have signed an information sharing agreement aimed at increasing the cooperation on the oversight and inspection of audit firms. The Statement of Protocol between the regulators intends to improve the accuracy and reliability of audit reports and help promote public trust in the audit process. Click for the Statement of Protocol between PCAOB and POB (link to FRC website).

10 January 2011: Newsletter on amendments to IFRS 1 related to severe hyperinflation

Deloitte's IFRS Global Office has published an IFRS in Focus Newsletter – IASB issues amendments to IFRS 1 on first-time adoption of IFRSs after period of severe hyperinflation (PDF 59k). The amendments provide guidance for entities emerging from severe hyperinflation that are either resuming the presentation of IFRS-compliant financial statements or presenting IFRS-compliant financial statements for the first time. Click for past editions of IFRS in Focus.

10 January 2011: Agenda for the January 2011 IASB meeting

The IASB will hold its monthly meeting for January 2011 at the IASB offices in London from 17 to 20 January 2011. The second, third and fourth days of the meeting are joint meetings with FASB. At present, there is no meeting scheduled for Friday. The meeting will be open to public observation. Presented below is the agenda for the meeting. All times are Greenwich Mean Time (GMT). IASB Board Meeting Agenda 17-20 January 2011, London Monday, 17 January 2011 IASB Meeting (12:45-15:30) Post-employment Benefits IFRS Interpretations Committee update Tuesday, 18 January 2011 IASB-FASB Joint Meeting (14:15-18:00) Insurance Contracts – comment letter analysis Financial Instruments: Impairment Wednesday, 19 January 2011 IASB-FASB Joint Meeting (09:00-19:00) Revenue Recognition – The Boards will redeliberate the following issues: how an entity should segment a contract and identify separate performance obligations how an entity should determine when goods or services are transferred to a customer and, hence, when an entity would recognise revenue whether an entity should apply the onerous test to a performance obligation, the contract or another unity of account Leases Preliminary comment letter analysis Redeliberation plan How to define a lease and how to distinguish it from a service Insurance Contracts – education session on some alternatives proposed for the rate used to discount insurance contracts Thursday, 20 January 2011 IASB-FASB Joint Meeting (08:15-12:30) Revenue Recognition (continued from previous day) Leases – education session on the way forward for lessor accounting model(s) IASB Meeting (13:15-16:30) Joint Arrangements – education session Assessment of the proposed Annual improvements qualifying criteria Annual Improvements to IFRSs Sweep issues (if needed)

10 January 2011: IVSC extends comment period on valuation uncertainty discussion paper

In an 'e-news' bulletin published late in December 2010, the International Valuation Standards Council (IVSC) announced an extension of the deadline for the receipt of comments on its Discussion Paper Valuation Uncertainty. The Discussion Paper summarises the IVSC's preliminary views on the nature and causes of valuation uncertainty and on how this should be communicated to valuation users. Comments on the Discussion Paper now close on 14 January 2011. Click for IVSC e-news (link to IVSC website).

10 January 2011: IAASB seeks input on future strategy and work program

The International Auditing and Assurance Standards Board (IAASB) has released for comment its Proposed Strategy and Work Program for 2012–2014. The proposed program is grouped into the following topic areas: Developing and revising IAASB Standards: Maintaining a commitment to the International Standards on Auditing (ISAs) and the audit (including having input into the IASB's projects and their impacts on auditing standards) Enhancing public confidence through the development or revision of assurance and other standards that address demands of users of financial information, including greenhouse gas statements, XBRL, prospective information and integrated reporting Responding to concerns about implementation of IAASB Standards Ongoing outreach and other communication activities to promote adoption of IAASB Standards. In addition, a number of consultation documents are expected over the coming weeks as the result of the IAASB's December 2010 meeting. Comments on the Consultation Paper are requested by 4 April 2011. Click for press release (link to IFAC website).

10 January 2011: Malaysia proposes 'Reduced Disclosure Requirements' for certain entities

The Malaysian Accounting Standards Board (MASB) has issued an exposure draft proposing to introduce a framework known as 'Financial Reporting Standards – Reduced Disclosure Requirements' (FRS-RDR) which would allow entities that meet specified criteria to provide lesser disclosures than those required under the existing Financial Reporting Standards (FRS) framework. The proposed disclosures under the FRS-RDR would be the minimum required in the financial statements of eligible entities, which include non-publicly accountable subsidiaries, associates and jointly-controlled entities of a non-private entity. Recognition and measurement requirements under the FRS-RDR framework would be identical to the FRS framework to allow consolidated financial statements to be more easily prepared. MASB is working towards full convergence of FRS with IFRSs as issued by IASB by 1 January 2012. 'Reduced Disclosure Requirements' have recently been implemented in Australia and are being considered in New Zealand, but for all non-publicly accountable entities, rather than just related entities of non-private entities as is being proposed in Malaysia. In March 2010, the MASB issued an exposure draft on the possible adoption of the IFRS for SMEs for other private entities, in lieu of the existing Private Entity Reporting Standards (PERSs). Comments on the exposure draft are requested by 31 January 2011. Click for press release (link to MASB website).

7 January 2011: SEC appoints James R. Doty as Chairman, Jay D. Hanson and Lewis H. Ferguson as members of PCAOB

Securities and Exchange Commission Chairman Mary L. Schapiro announced the appointment of James R. Doty as Chairman and Jay D. Hanson and Lewis H. Ferguson as members of the Public Company Accounting Oversight Board (PCAOB). Click here for press release (link to SEC website).

7 January 2011: Recent Deloitte publications

Deloitte's IFRS Global Office has issued IFRS in Focus. This issue describes the recent IASB amendments to IFRS 1 related to the removal of fixed dates for first-time adopters. In addition, Deloitte (Canada) has issued two publications: (1) Modèle d'états financiers préparés en conformité avec les IFRS (the French translation of the Model Financial Statements for 2010 publication; model financial statements in this translation reflect the early adoption of IFRS 9 as issued in November 2009 and revised in October 2010) and (2) the final 2010 edition of the Countdown to IFRS newsletter, which contains articles on IFRS in Canada, Lightyear's final transition check, and top-10 tips for public companies filing their first interim financial statements. Click for: IFRS in Focus IASB issues amendments to IFRS on removal of fixed dates for first-time adopters (PDF 77k) Modèle d'états financiers préparés en conformité avec les IFRS (ZIP 1,881k) Countdown to IFRS — Final Edition (PDF 1,714k). A French translation is also available (PDF 1,661k). Click here to visit our Canada country page.

7 January 2011: Trustees set out next steps on Trustee Chair and their Strategy Review

The Trustees of the IFRS Foundation, the oversight body of the IASB, today announced steps to be taken following the death of the Chairman of the Trustees Tommaso Padoa-Schioppa in December 2010. The next meeting of the Trustees in Tokyo will be chaired by the Trustee vice-chairs Tsuguoki Fujinuma and Robert Glauber. At the meeting the Trustees will discuss interim leadership of the Trustees and the process of identifying a permanent chair. In both respects the Trustees will co-operate closely with the Monitoring Board. The Trustees have also reaffirmed their commitment to maintaining the existing time line for the strategy review. In February/March 2011, the Trustees will analyse public comments and meet the IASB and the IFRS Advisory Council before reaching final conclusions. In April 2011, the Trustees will publish a report of the strategy review with a comment period to provide guidance on actions to be implemented. In July 2011, the Trustees will agree on a set of actions to be implemented, following public consultation. The Trustees will seek to co-ordinate this effort with the Monitoring Board's review. After July 2011, the Trustees will conduct required due process to adopt changes in the IFRS Foundation's Constitution, if appropriate. Click for IFRS Foundation press release with next steps on Trustee chair and the strategy review (PDF 43k).

7 January 2011: IFRS for SMEs news

Following our earlier reports of Argentina and Panama adopting the IFRS for SMEs, more news concerning the IFRS for SMEs is available: Bahamas. The Council of the Bahamas Institute of Chartered Accountants (the regulatory body for the accounting profession in the Bahamas) has adopted the IFRS for SMEs as an option for all companies in Bahamas that do not have public accountability. Alternatively, the companies may choose to use full IFRSs. Peru. By Resolution No. 045-2010-EF-94 (25 November 2010), the Peruvian Accounting Standards Council (Consejo Normativo de Contabilidad) has adopted the IFRS for SMEs starting 1 January 2012. It must be applied by all Peruvian companies except those whose securities are publicly traded, banks, and large unlisted companies. Nepal. The Institute of Chartered Accountants of Nepal has proposed to adopt the IFRS for SMEs effective 1 July 2011. Zimbabwe. The Zimbabwe Accounting Practices Board, which is the national standard-setting body, and the Public Accountants and Auditors Board, which is the regulatory board for the accounting profession in Zimbabwe, have formally adopted the IFRS for SMEs as the second accounting reporting framework for use in the country, by eligible entities, with effect from 1 January 2011.

6 January 2011: Recent Deloitte publications

Deloitte's IFRS Global Office has issued two newsletters. IFRS in Focus, describing the recent IASB amendments to IAS 12, and IFRS on Point, highlighting the month's important IFRS developments and information. In addition, the December 2010/January 2011 IFRS Insights newsletter from Deloitte (United States) has been posted. IFRS Insights is a newsletter on IFRS aimed at US companies. Click for: IFRS in Focus IASB issues amendments to IAS 12 (PDF 61k) IFRS on Point IFRS Accounting Developments and Information: December 2010 (PDF 92k) IFRS Insights December 2010/January 2011 (PDF 992k)

6 January 2011: Panama adopts IFRS for SMEs

The Panamanian Accounting Technical Board approved on October 28, 2010 the adoption of IFRS for SMEs as approved by the IASB (Spanish version) for annual periods beginning on or after January 1, 2011. The definition of the SMEs is based on the definition given by the IASB in the standard for SMEs: entities that do not have public accountability and; publish general purpose financial statement for external users. The resolution was published on the official gazette on December 29, 2010. Entities that have already adopted full IFRS and are qualified to use IFRS for SMEs are allowed to change to IFRS for SMEs. The resolution is effective for financial statements for annual periods beginning on or after 1 January 2011, and earlier application is permitted.

6 January 2011: Nigerian Committee reports on the road map for the adoption of IFRSs

The Securities and Exchange Commission of Nigeria has published the Report of the Committee on Road Map to the Adoption of International Financial Reporting Standards in Nigeria (PDF 789k, link to SEC Nigeria website). Nigeria will adopt IFRSs in a staged implementation from 2012 on. The report discusses various areas for consideration by stakeholders in order to ensure effective adoption of IFRS in Nigeria and contains recommendations for the amendment of various laws and regulations to ensure uniformity and remove conflicts and ambiguity. More information on the financial reporting framework in Nigeria is available on our Nigeria country page.

6 January 2011: ESMA work programme for 2011

The newly established European Securities and Markets Authority (ESMA) has published its first work programme. Items 48 through 52 concern IFRSs with the objectives of investor protection and market integrity, transparency, and efficiency. Thus ESMA will monitor IFRS development and endorsement, map the application of requirements (e.g. IFRS 8) and consider post implementation work on IFRS 9. ESMA will also analyse the equivalence of the application of IFRS in China and India; a report on the results is to be expected in July 2011. Click for ESMA work programme for 2011 (PDF 116k, link to ESMA website).

5 January 2011: Argentina adopts IFRS for SMEs

The Argentine Federation of Professional Councils in Economic Sciences (FACPCE) approved on 3 December 2010 the Technical Resolution No. 29 which introduces the application of IFRS for SMEs. IFRS are mandatory for public entities which are under the supervision of the Comision Nacional de Valores CNV (Argentine Securities and Exchange Commission). The resolution establishes that all entities not reached by, or exempted from the mandatory use of IFRS, will have the option of IFRS, or the IFRS for SMEs, or the accounting standards issued by the Federation or to be issued in the future that are not related to this resolution. Entities that are out of scope of the IFRS for SMEs are not allowed to use the IFRS for SMEs. The resolution is effective for financial statements for annual periods beginning on or after 1 January 2012, and earlier application is permitted for annual financial statements beginning on or after 1 January 2011. Click for Technical Resolution No. 29 (in Spanish, PDF 244k) and more information on financial reporting in Argentina.

5 January 2011: Africa embraces IFRSs

The IASB has uploaded to its site a feature on the future of accounting in Africa. Financial journalist Robert Bruce, who is also the regular resident commentator for IAS Plus, interviews IFRS Foundation Trustee Jeff van Rooyen and IASB Member Paul Pacter on the latest developments regarding implementation of a common form of financial reporting in Africa and points out strengths and weaknesses that vary enormously from country to country and region to region. Click for Robert Bruce's Africa embraces IFRSs (link to IASB website).

4 January 2011: The Effect Of Shariah Principles on Accounting Methods for Islamic Banks

Further to our story published yesterday, we make available a presentation by Daud Vicary Abdullah, Deloitte's Global Islamic Finance Leader. The Effect Of Shariah Principles on Accounting Methods for Islamic Banks points out the rapid acceptance of Islamic finance, explains the fundamental principles and shows the three options for the way forward in Islamic accounting: Exclusivity: Live side by side with its conventional counterpart; all Islamic financial institution transactions will be recorded by way of Islamic accounting Harmonisation: International Financial Reporting Standards (IFRSs) are fine tuned; then certain exemptions are allowed/disallowed Convergence: Applying IFRS in every aspect Click for The Effect Of Shariah Principles on Accounting Methods for Islamic Banks (PDF 498k) Our new Islamic accounting page

3 January 2011: Three new European authorities for the supervision of financial activities start their work

As reported earlier, three new regulatory authorities offering direct EU supervision of systemically important financial institutions (the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA)) have been established. These new authorities have started their work on 1 January 2011. Michel Barnier, the European Commissioner responsible for Internal Market and Services, commented on the "turning point for the European financial sector": With this new framework of financial supervision in Europe in place, we are putting into effect in practical terms the lessons learnt from the crisis. This framework is at the heart of the ongoing financial reforms. [...] This move forward also demonstrates that Europe is leading the way and upholding its international commitments. These new authorities will work with others across the world to ensure better global supervision. Click for European Commission press release (link to EC website).

3 January 2011: New IAS Plus page on Islamic accounting

We have created a new IAS Plus page offering background information on Islamic accounting and a history of recent developments in Islamic accounting requirements and practices. Accounting Standards for financial reporting by Islamic financial institutions have to be developed because in some cases Islamic financial institutions encounter accounting problems because the existing accounting standards such as IFRSs or local GAAP were developed based on conventional institutions, conventional product structures or practices, and may be perceived to be insufficient to account for and report Islamic financial transactions. Sharia'a compliant transactions that observe the prohibition to charge interest may not have parallels in conventional financing and therefore, there may be significant accounting implications. Likewise, the Islamic finance industry is under considerable pressure to enhance practice and improve risk management systems and protect investors. Click for our Islamic accounting page.

1 January 2011: IFRSs in your Pocket 2010 in Croatian, Serbian and Slovenian

Deloitte Croatia, Deloitte Serbia and Deloitte Slovenia have published translations of IFRSs in your Pocket 2010. The content is the same as the English 2010 version. Džepni vodič kroz MSFI-jeve 2010 (PDF 2,596k, 134 pages, December 2010) Џепни водич кроз МРС/МСФИ 2010 (PDF 2,402k, 140 pages, December 2010) Žepni MSRP 2010 (PDF 1,454k, 127 pages, December 2010) Click for an overview of all translations of IFRSs in your Pocket available.