30 June 2011: SEC Commissioner backs IFRS adoption, discusses possible 'opt out' for issuers

United States Securities Exchange Commission (SEC) Commissioner Kathleen L. Casey has supported the adoption of IFRS in the United States in a recent speech. Giving the keynote address at the Society of Corporate Secretaries and Governance Professionals 65th Annual Conference in Colorado, United States on 29 June 2011, Ms Casey highlighted the benefits of IFRS adoption. Topics covered included the benefits of a single set of high-quality global accounting standards in increasingly global capital markets, the impacts of more United States entities investing in entities that report in accordance with IFRSs, the United States' influence on IFRS development and cost and other concerns raised by constituents. Ms Casey also discussed the possibility of an 'opt out' for issuers, perhaps on a permanent basis. An extract follows: While I believe that the United States must provide for reporting under IFRS by U.S. issuers, I believe that we can and should give some issuers the option to continue to report under U.S. GAAP. One of the concerns that has been expressed since we first issued the "Road Map" in November 2008, from smaller reporting companies and other companies that have no international operations or aspirations, is that the transition to IFRS will be burdensome and impose costs without providing them with any commensurate benefits. I understand these concerns, and it makes sense, in my view, to allow these issuers to opt out of IFRS, at least initially, if not permanently. Providing optionality would preserve the benefits of IFRS, ensure continued U.S. influence in the development and preservation of IFRS, and avoid unnecessary costs for smaller U.S. issuers. Some commentators object to providing optionality on the basis that it would lead to a "two-GAAP" world. My response is that we are already in a two-GAAP world. The Commission already permits foreign private issuers to report using IFRS. Furthermore, in light of the global nature of our capital markets, investors, public accountants and other market participants already need to know both U.S. GAAP and IFRS. Click for full text of the speech (link to the SEC website).

29 June 2011: Latest batch of editorial corrections to IFRSs released by the IASB

The IASB has posted to its website a new batch of Editorial Corrections to IFRSs. This batch makes editorial corrections and changes to IFRS for SMEs (issued July 2009), Conceptual Framework for Financial Reporting (issued September 2010), Bound Volume (Red Book) 2011, Bound Volume (Blue Book) 2011, IFRS 10 Consolidated Financial Statements (issued May 2011), IFRS 11 Joint Arrangements (issued May 2011), IAS 19 Employee Benefits (issued June 2011) and Presentation of Items of Other Comprehensive Income (issued June 2011).

29 June 2011: New edition of IFRSs in your pocket

We have published the tenth edition of our popular guide to IFRSs – IFRSs In Your Pocket 2011 (PDF 553k). This 134-page guide includes information about: The IASB organisation - its structure, membership, due process, contact information, and a chronology Use of IFRSs around the world, including updates on Europe, United States, Canada and elsewhere in the Americas, and Asia-Pacific Recent pronouncements - those which are effective and those which can be early adopted Summaries of current Standards and related Interpretations, as well as the Conceptual Framework for Financial Reporting and the Preface to IFRSs IASB agenda projects and active research topics IFRS Interpretations Committee current agenda topics Other useful IASB-related information We are pleased to grant permission for accounting educators and students to print copies of the PDF file for educational purposes. Please contact your local Deloitte practice office to request a printed copy. You will find Links to our Many Other IFRS Publications here.

29 June 2011: Malaysia exposes proposals for full convergence with IFRS

The Malaysian Accounting Standards Board (MASB) has issued an exposure draft, MASB Exposure Draft 75 IFRS-compliant Financial Reporting Standards (FRS) as part of achieving full convergence of Malaysian accounting requirements with with IFRS on 1 January 2012. The existing financial reporting framework in Malaysia is virtually the same as the IFRS framework except for IAS 41 Agriculture, IFRIC 15 Agreements for the Construction of Real Estate, different effective dates and additional transitional provisions in a limited number of standards. The proposed FRS standards contained in the Exposure Draft are equivalent to the IFRSs issued by the IASB. Therefore, MASB asserts that financial statements drawn up in accordance with the new IFRS-compliant FRS framework will be equivalent to financial statements that have adopted the IFRS framework. Under the proposals in the Exposure Draft, entities would be required to make, in the notes, an explicit and unreserved statement of compliance with both Financial Reporting Standards (FRSs) and International Financial Reporting Standards (IFRSs). The MASB has tentatively decided all entities, other than those which meet its definition of a 'private entity', will be required to apply the new IFRS-compliant FRS framework. However, a private entity would be permitted to apply the new IFRS-compliant FRS framework if it decides to do so. Click for MASB announcement (link to the MASB website).

28 June 2011: UK ASB tentatively revises forthcoming differential reporting framework

As part of its ongoing redeliberations, the UK Accounting Standards Board (ASB) has tentatively agreed to a number of amendments to its proposed revised differential reporting framework, to reduce its impacts on certain entities and extend its proposed application date. The ASB published its published its proposals for the future of financial reporting in the UK and Republic of Ireland in October 2010 (see our earlier story). The Exposure Drafts set out proposals for a three-tier reporting framework, with the aim of balancing the needs of preparers and users of accounts. At its meeting held on 16 June 2011, the ASB made the following tentative decisions: To remove from FRED 43 Application of Financial reporting Requirements and FRED 44 Financial Reporting Standard for Medium-sized Entities (FRSME), the requirement for publicly accountable entities to prepare accounts under EU-adopted IFRS. As a consequence the application of EU-adopted IFRS will not be extended beyond the current requirements in law. This measure will particularly assist certain charities that would otherwise be captured as having "public accountability" To change the principles for amending the IFRS for SMEs in developing the FRSME (to be applied by all entities other than those required to comply with EU-adopted IFRS and small companies), to permit or require accounting options that exist in current UK and Republic of Ireland Financial Reporting Standards at the transition date that align with EU-adopted IFRS To defer the proposed effective date of the proposals to 1 January 2014 (instead of 1 July 2013), to allow time for the creation of a new exposure draft of the FRSME. Click for the ASB meeting summary (link to the UK Financial Reporting Council website).

28 June 2011: Singapore Exchange releases sustainability reporting guide

The Singapore Exchange (SGX) has introduced a Sustainability Reporting Guide (the "Guide") for its listed companies. The release of the Guide follows a public consultation process that commenced in August 2010 regarding disclosure and accountability for operating and developing businesses in a sustainable manner (see our earlier story). Within the Guide, the Policy Statement sets out the principles and the Questions and Answers guide listed companies in extending their reporting beyond financial governance to sustainability aspects. The Guide references ISO 26000 Guidance on Social Responsibility and the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines for listed companies seeking detailed guidance on sustainability reporting. The Policy Statement and Sustainability Reporting Guide are applicable to Mainboard and Catalist companies listed on SGX. The Guide is not mandatory, but the SGX encourages all its listed companies to consider sustainability reporting as an integral part of good corporate governance and notes "conceivably, there will be progress towards mandatory reporting through regulations and rules in the future". Both Policy Statement and the Guide are available on www.sgx.com (link to SGX website). Click for SGX announcement (link to the SGX website).

28 June 2011: Agenda for IFRS Foundation Trustees meetings

The IFRS Foundation Trustees will meet in New York on Wednesday and Thursday, 13 and 14 July 2011. The tentative agenda is shown below. Agenda for the IFRS Foundation Meetings Wednesday and Thursday, 13 and 14 July 2011 Wednesday 13 July (13:00-14:15) Meeting with IFRS Foundation Monitoring Board Discussion of governance and strategy reviews Update on due process oversight, convergence work and IFRS use throughout the world Thursday 14 July (09:00-12:00) Report of the Due Process Oversight Committee Report from the IASB Chair Update on the IFRS for SMEs Report of the IFRS Advisory Council Chair Report of the Executive Committee on the status of the Strategy Review

28 June 2011: Singapore releases Accounting Standard for charities

The Singapore Accounting Standards Council (ASC) has issued an Charities Accounting Standard (CAS), which is tailored to meet the needs of the charity sector and its stakeholders. The ASC's new financial reporting framework for charities will apply to charities when they prepare their financial statements for financial periods beginning on or after 1 July 2011. Most charities can choose to adopt the Singapore Financial Reporting Standards (FRS) or the CAS based on their own needs and operations. In developing the CAS, the ASC took reference from the IFRS for SMEs, the Financial Reporting Standard for Smaller Entities (FRSSE) issued by the Accounting Standards Board of the United Kingdom, and other sources. Click for ASC announcement (link to the ASC website).

27 June 2011: XBRL taxonomy for sustainability reporting to be developed

Deloitte and the Global Reporting Initiative (GRI) have announced a collaboration to work on a new eXtensible Business Reporting Language (XBRL) taxonomy for sustainability reporting. The new XBRL taxonomy will enable organisations to deliver sustainability information in XBRL format, with the objective of enabling stakeholders to organise and access sustainability information in a much quicker and easier way. As with XBRL for financial reporting, the use of 'tagged' data will hopefully improve the quality and integrity of sustainability performance data, allowing investors, auditors and other report users to access and compare sustainability information without the need for excessive manual work. In related news, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) and ISACA (the organisation responsible for developing international information systems auditing and control standards) have recently published Leveraging XBRL for Value in Organizations. This publication provides guidance on how to leverage the value of XBRL through effective implementation. It includes discussion of non-financial reporting, noting the inherent ability of XBRL to communicate a wide array of types of data, which supports a range of key performance indicators (KPIs) for performance and sustainability reporting (including reporting under the GRI guidelines). Click for: GRI press release (link to the GRI website) IFAC press release on the IFAC/ISACA publication (link to IFAC website) Our Sustainability Reporting page Our XBRL page.

27 June 2011: Agenda for July 2011 IFRS Interpretations Committee meeting

The IFRS Interpretations Committee will meet at the IASB's offices in London on Thursday and Friday 7 and 8 July 2011. The meeting is open to the public and will be webcast. The tentative agenda is shown below. Agenda for the Interpretations Committee Meeting Thursday and Friday, 7 and 8 July 2011 Thursday 7 July (10:00h-17:30h) Introduction IAS 16 – Accounting for production phase stripping costs in the mining industry Review of tentative agenda decisions from the May meeting IAS 16 Property, Plant and Equipment – Cost of testing asset - element of cost IAS 19 Employee Benefits – Defined contribution plans with vesting conditions Items for Continuing Consideration IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment – Use of IFRIC 6 by analogy New items for initial consideration IFRS 3 Business Combinations – Business combinations involving newly formed entities: factors affecting identification of the acquirer IFRS 3 Business Combinations – Common control transactions IAS 27 Consolidated and Separate Financial Statements – Group reorganisations in separate financial statements IFRS 3 Business Combinations – Definitions of a business Friday 8 July (09:00h-10:45h) New items for initial consideration (continued) IFRS 8 Operating Segments – Aggregation of operating segments and identification of the chief operating decision maker IFRS 11 Joint Arrangements – Acquisition of an interest in a joint operation Administrative session – Committee work in progress

26 June 2011: Deloitte publications update

The following Deloitte publications are now available: Global Publications IFRS Industry Insights: Joint Arrangements in the Energy and Resources Industry (PDF 116k) IFRS in Focus — IASB issues Amendments to IAS 1 on Presentation of Items of Other Comprehensive Income (PDF 67k) Deloitte Comment Letter (PDF 24kb) on IFRS Interpretations Committee tentative agenda decisions: IAS 16 Property, Plant and Equipment (Cost of testing) and IAS 19 Employee Benefits (Defined contribution plans with vesting conditions) Deloitte (Canada) Le point sur les IFRS — Mai 2011 (PDF 93k) – French translation of IFRS on Point — IFRS Accounting Developments and Information: May 2011 Pleins feux sur les IFRS — L'IASB publie une nouvelle norme sur les informations à fournir sur les participations dans les autres entités (PDF 61k) – French translation of IFRS in Focus — IASB issues new standard on disclosure of interests in other entities Deloitte (Japan) Recorded Webcast Overview of the 'package of five' standards on consolidation, joint ventures and disclosure of interests in entities (in Japanese) — available for viewing until 31 December 2011 Japanese translation of IFRS in Focus — IASB issues Amendments to IAS 1 on Presentation of Items of Other Comprehensive Income (PDF 214k) Deloitte (Poland) Biuletyn MSSF 2011/04 (PDF 626k) – Summary of IASB projects aimed at improving the accounting of financial instruments and other related projects. We now maintain an archive of past editions of Biuletyn MSSF on our Poland country page Deloitte (United Kingdom) Insurance Accounting Newsletter — Issue 21, June 2011 (PDF 128k) — this issue is titled "Progress continues, divergence remains". Deloitte (United States) EITF Snapshot — June 2011 (PDF 96k)

24 June 2011: Trustees announcement regarding the IFRS Advisory Council membership

The membership terms for the IFRS Advisory Council are set to expire on December 2011. The Trustees of the IFRS Foundation has announced its plans regarding the future of the IFRS Advisory Council's memberships. The Trustees have agreed to extend the terms of the Advisory Council leadership. Chair Paul Cherry's term is extended two years, ending on 31 December 2013; vice chair Charles Macek's term is extend three years, ending in December 2014; and vice chair Patrice Marteau's term is extend one year, ending December 2012. In addition, the Trustees have agreed to keep the current representative membership model with some minor modifications. These modifications are (1) inviting regional standard-setting bodies; (2) more participation from academia, other internationally recognised professional bodies interested in financial reporting, and SME community; and (3) greater participation from developing markets and other economies adopting IFRS. Click for: IASB press release (link to IASB website)

24 June 2011: IAS Plus launches a new series of interviews with leading figures in global accounting and business

Today IAS Plus launches a new series of interviews with leading figures in global accounting and business with a far-reaching and detailed interview with Sir David Tweedie, outgoing Chairman of the IASB. As he steps down he provides insights into the highs and lows of his decade in the most challenging role in world accounting and some wise words for the future. Read more... Interviews will alternate with The Bruce Column on the Home Page on a regular basis.

24 June 2011: SME Implementation Group publishes its first Q&A guidance

The SME Implementation Group (SMEIG) has published its first final question and answer (Q&A) guidance on the IFRS for SMEs. Q&As are non-mandatory guidance. Q&A 2011/01 Use of the IFRS for SMEs in a Parent's Separate Financial Statements addresses whether a parent entity that itself does not have public accountability may present its separate financial statements in accordance with the IFRS for SMEs if it is part of a group that is required (or elects) to present consolidated financial statements in accordance with full IFRSs. SMEIG concludes that an entity is eligible to use the IFRS for SMEs if it does not have public accountability. A parent entity assesses its eligibility to use the IFRS for SMEs in its separate financial statements on the basis of its own public accountability without considering whether other group entities have, or the group as a whole has, public accountability. 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) Access to Q&A 2011/01 (link to IASB website) Our IAS Plus summary of the IFRS for SMEs

23 June 2011: PCAOB releases 2010 Annual Report

The 2010 Annual Report (PDF 2328k) of the US Public Company Accounting Oversight Board (PCAOB) reports that 2,397 firms were registered with the PCAOB, including 894 non-U.S. firms located in 86 jurisdictions. You can find our PCAOB page Here.

23 June 2011: Colombia takes a step closer to IFRSs and ISAs

The Colombian Consejo Técnico de la Contaduría Pública (Technical Council of Public Accountants) has submitted an official proposal to the Colombian Ministers of Finance and Commerce regarding the strategic direction of adopting international accounting and auditing standards in Colombia. On 13 July 2009, the Congress of the Republic of Columbia enacted Law No. 1314 concerning accounting, financial reporting and assurance. This law is called the "Law of Convergence" and states an intention to converge Colombian GAAP with international standards beginning from the year 2014 (proposed start year). The official proposal from Consejo Técnico de la Contaduría Pública (as the National Standard Setter for Colombia) would see the standards issued by the IASB (for accounting and financial reporting) and IFAC (for auditing) adopted as the Colombian norms. Whilst only a strategic direction document, the proposals are an important step towards Colombia adopting international standards in due course. Click for the text of the official proposal (PDF 404k, in Spanish).

23 June 2011: IASB to discuss mandatory application date of IFRS 9

The IASB has posted a Staff Paper on its website discussing the application date of IFRS 9. The paper is scheduled to be discussed at the IASB's meeting on 20-22 July 2011. The IASB stated in the Basis for Conclusions of IFRS 9 that it intended for the mandatory transition to all phases of the IAS 39 replacement project to occur concurrently, and that it may delay the effective date of the IAS 39 replacement project to better align with the effective date of the proposed insurance contracts guidance. Requests to review the mandatory effective date have also been received through the Request for Views and other outreach activities. The Staff Paper notes the impairment and hedging phases of the project to replace IAS 39 are not yet complete, nor is the insurance project, and the staff recommends that on the basis of current circumstances the IASB should move the mandatory effective date of IFRS 9 to annual periods beginning on or after 1 January 2015. IFRS 9 is currently required to be applied for annual reporting periods beginning on or after 1 January 2013. The full agenda for the July IASB meeting has not yet been formally announced. Click for access to the Staff Paper (link to the IASB's website).

23 June 2011: United States PCAOB explores audit report reform

The United States Public Company Accounting Oversight Board (PCAOB) has issued a 'concept release' discussing alternatives for changing the auditor's reporting model. The concept release presents several alternatives for changing the auditor's reporting model, seeking specific comment on these or other alternatives that could provide investors with more transparency in the audit process and more insight into the company's financial statements or other information outside the financial statements. The alternatives include: An auditor's discussion and analysis ('AD&A') – a supplemental narrative report to the auditor's report providing the auditor with the ability to discuss views regarding significant matters, such as audit risks identified in the audit, audit procedures and results, independence, and a discussion of the auditor's views regarding the company's financial statements (e.g. management's judgements and estimates, accounting policies and practices, and difficult or contentious issues) Required and expanded use of emphasis paragraphs – require inclusion of an expanded emphasis paragraph in all audit reports that would highlight the most significant matters in the financial statements and to identify where these matters are disclosed in the financial statements. Emphasis paragraphs could be required in areas of critical importance to the financial statements, including significant management judgements and estimates, areas with significant measurement uncertainty and other areas that the auditor determines are important for a better understanding of the financial statement presentation Auditor assurance on other information outside the financial statements – require auditors to provide assurance on information outside the financial statements, such as management’s discussion and analysis (MD&A) or other information (for example, non-GAAP information or earnings releases) Clarification of language in the standard auditor's report – clarifying language about what an audit represents and the related auditor responsibilities, in areas such as reasonable assurance, auditor's responsibility for matters such as fraud, financial statement disclosures and information outside of the financial statements, management's responsibility for the preparation of the financial statements, and auditor independence. The concept release notes the above alternatives are not seen as mutually exclusive, rather a revised auditor's report could include one or a combination of the alternatives, elements within the alternatives, or alternatives not currently presented. Comments on the concept release close on 30 September 2011. Click for PCAOB press release (link to the PCAOB website).

23 June 2011: Proposed professional education standard would remove mandatory university degree entry requirement

The International Accounting Education Standards Board (IAESB) has released for public exposure a proposed revision of International Education Standard (IES) 1, Entry Requirements to a Program of Professional Accounting Education. The key changes include: making the requirements more inclusive and broader in scope (necessitating a change in the title of IES 1 to Entry Requirements to Professional Accounting Education) adopting a principles-based approach focusing on allowing flexible access to professional accounting education, including removing reference to a recognised university degree programme or its equivalent and instead referring to it as example requiring that the entry level be high enough to provide assurance of an individual's likely success in the programme of professional accounting education, and making relevant information publicly available to help individuals make an informed decision in assessing their own chances of successfully completing professional accounting education providing guidance that IFAC member bodies justify their entry requirements in terms of the competences required to successfully complete professional accounting education. Comments on the document close on 21 September 2011. Click for IAESB press release (link to the IFAC website).

22 June 2011: IASB publishes proposals for amendments under its annual improvements project

The International Accounting Standards Board (IASB) has published to its website an exposure draft (ED) of proposed amendments to five International Financial Reporting Standards (IFRSs) under its annual improvements project. The IASB uses the annual improvements project to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project. The ED proposes that all of the amendments will be effective for annual periods beginning on or after 1 January 2013, although entities shall be permitted to adopt them earlier. Click for IASB Press Release (link to IASB website). IFRS Subject of amendment IFRS 1 First-time Adoption of IFRSs Repeated application of IFRS 1 Borrowing costs relating to qualifying assets for which the commencement date for capitalisation is before the date of transition to IFRSs IAS 1 Presentation of Financial Statements Clarification of requirements for comparative information Consistency with the updated Conceptual Framework IAS 16 Property, Plant and Equipment Classification of servicing equipment IAS 32 Financial Instruments: Presentation Income tax consequences of distributions to holders of an equity instrument, and of transaction costs of an equity transaction IAS 34 Interim Financial Reporting Interim financial reporting and segment information for total assets You can access the ED via the the 'Comment on a proposal' page on the IASB's website. The IASB requests comments on the ED by 21 October 2011.

22 June 2011: IASB webcast on the amendments to IAS 19

On June 16 the IASB published amendments to IAS 19 Employee Benefits. Next Monday, the IASB will give a webcast introducing the amended version of IAS 19 including a live question and answer session. For the convenience of participants in different time zones two slots have been scheduled. Monday, 27 June 2011 – Improvements to the accounting for post-employment benefits Webcasts will be held at 9.30am and 3.30pm, London time. Registration is available through the IASB's website.

21 June 2011: The Japanese Minister for Financial Services mentions deferred timing of mandatory IFRS adoption, reinstates US-GAAP option

The Japanese Minister for Financial Services, Shozaburo Jimi, has outlined a number of changes in relation to the possible adoption of International Financial Reporting Standards (IFRSs) in Japan. Japan has not yet made a decision on whether or not to mandatory adopt IFRSs, although voluntary adoption already started in 2010. The Business Accounting Council of Japan, with expanded members, will commence deliberation on the adoption question in later in June 2011. The key changes announced by the Minister include: Mandatory application of IFRS will not take place from the business year ending March 2015, at the very least, and a sufficient time period of five to seven years will be permitted for preparation if and after mandatory application of IFRSs is decided The currently legislated expiry date of the ability to use US GAAP for disclosure purposes, namely up to the business year ending on or before 31 March 2016, will be removed so that the firms will be able to continue their use of US GAAP beyond that date. As background to this change, the paper released by the FSA referred to various changes in the environment both in and out of Japan that have taken place since the issuance of the Interim Report in June 2009, including the release of the SEC work plan (February 2010), the announcement of a delay in the convergence programme by the IASB and FASB (April 2011), the US SEC staff report on the so-called 'condorsement' approach to the adoption of IFRS in the United States (May 2011), and domestic Japanese events such as the Great East Japan Earthquake and tsunami. Click for more information (link to the Japanese Financial Services Agency, also available in Japanese).

21 June 2011: Integrated reporting and sustainability reporting update

Following is a summary of recent developments in integrated reporting, sustainability reporting, and related topics: IIRC European roundtable. The Federation of European Accountants (FEE) hosted a European Roundtable on Integrated Reporting for the International Integrated Reporting Committee (IIRC) on Friday 17 June 2011. Topics discussed included how to operationalise integrated reporting (including possible linkages with XBRL), the necessary framework for integrated reporting, and governance of the IIRC. More information is available on the FEE website IFRS Advisory Council consideration of Integrated Reporting. The IFRS Advisory Council meeting currently being held (see agenda below) is receiving a presentation from the IIRC on integrated reporting. The Agenda Paper (PDF 548k, link to IASB website) provides a useful summary of the IIRC's plans and the likely timetable for the issue of the IIRC Discussion Paper Integrated reporting study. Harvard Business School has released the outcomes on a study of integrated reporting. To determine the extent to which corporate and investor behaviour is changing to contribute to a more sustainable society, the state of integrated reporting in 23 countries was analysed, classifying various countries by both the extent of investor interest in integrated reporting and the level of integrated reporting by companies in that country. The report can be accessed on the Harvard Business School website Report on 'natural capital'. The University of Cambridge Natural Capital Leaders Platform, a business-led programme addressing the impacts of natural capital loss and degradation on business and wider society, has released a report arising from the initial phase of its work. The report highlights the need to integrate the economic importance of natural capital into the investment community (following the 2010 TEEB study), which will likely require mandatory regulation with sector-specific sub-directives to help to create an even playing field within the market. The report also recommends incorporating natural capital into national economic indicators. The summary report is available on the University of Cambridge website (PDF 637k) Carbon reporting in the UK. The United Kingdom Department for Environment, Food and Rural Affairs (DEFRA) has launched a public consultation (link to DEFRA website) seeking views on whether regulations should be introduced to make it mandatory for some UK companies to report on their greenhouse gas (GHG) emissions or whether the Government should continue to encourage measuring and reporting of GHG emissions on a voluntary basis. The Carbon Disclosure Project (CDP) has responded (link to CDP website) supporting the introduction of regulations requiring British businesses to report their GHG emissions. Click for our Sustainability reporting page.

20 June 2011: SEC Chief Accountant discusses convergence

James L. Kroeker, Chief Accountant of the United States Securities Exchange Commission (SEC) has provided comment on the IFRS-US GAAP convergence process being undertaken by the IASB and FASB (the 'Boards'). In a recent speech given to the University of Southern California SEC and Financial Reporting Institute Conference, Mr Kroeker emphasised the need for the Boards to have adequate time to develop fully converged standards. An extract follows: "I believe it is critical that, as it relates to the MOU projects, that the Boards take all reasonable steps to maximize the prospect of converged, high-quality solutions. For example, currently the Boards are not aligned as it relates to their approaches to consideration of hedge accounting in the context of their financial instruments project. Numerous conceptual, operational and practical questions have been raised based upon proposals to date that should be considered jointly by both Boards. I believe that , in the long run, a measure of added time to provide for joint deliberations on a project as critical and as complex as hedge accounting will prove to be far more beneficial than any gains that are perceived in finalizing deliberations individually. In achieving high-quality, converged solutions, the Boards will inevitably be faced with difficult choices about how best to proceed. I continue to encourage the Boards to reconcile differences in the proposed standards and to work to reach converged and improved solutions to these difficult financial reporting issues. In monitoring the accounting standard-setting process, my focus tends to be on ensuring there is the appropriate balance between conceptual grounding and pragmatism in the standards being developed." Click for full text of the speech (link to the SEC website).

20 June 2011: Consultation on IASB's future agenda

The IASB has formally announced that it will be undertaking for the first time a public agenda consultation on its future work plan. In February 2010 the Trustees of the IFRS Foundation, the IASB's oversight body, announced enhancements to their governance arrangements, including the decision to undertake a three-yearly public consultation on the IASB's future technical agenda, in addition to consulting the Trustees and the IFRS Advisory Council annually on the existing and future agenda. A paper (link to IASB website) being considered at this week's IFRS Advisory Council Meeting (see below) outlines the expected timetable for the consultation process: July 2011: Discuss revised proposals with IFRS Foundation Trustees July 2011: Board discussion and finalisation of consultation proposals July 2011: Launch of Agenda Consultation, with a minimum 120 day comment period 30 November 2011: Consultation period ends Q1 2012: Publication of comment summary, start of Board discussions and consultation with the IFRS Advisory Council Q2 2012: Publication of Feedback Statement summarising what has been learnt from the agenda consultation The paper outlines the primary focus of the consultation will be a 'Request for Views' document which will consider the agenda from two perspectives: (1) the overall strategic direction and balance of the agenda, and (2) understanding the financial reporting needs of stakeholders and how these might be balanced with constraining factors such as stakeholder and IASB resource capacity and the IASB’s existing priorities. Click for IASB announcement (link to the IASB website).

20 June 2011: Agenda for IFRS Advisory Council Meeting

The IFRS Advisory Council is meeting in London on 20-21 June 2011. The agenda for the meeting is set out below. IFRS Advisory Council Meeting Agenda 20-21 June 2011, London Monday, 20 June 2011 Welcome and Chairman's preview Overview of last four months IASB Activities EFRAG's outreach on Leases and Revenue recognition SEC IFRS Workplan: status update The IASB's post-2011 agenda Council performance self-review Crosscutting issues (follow up from the November 2010 meeting) Translation issues Use of underlying earnings and non GAAP measures Who is implementing IFRSs – and how? (IFRS 'branding') Tuesday, 21 June 2011 Monitoring Board review Trustee strategy review Trustee and Monitoring Board reviews IFRS 'branding' Integrated reporting Click for access to the full agenda and agenda papers (link to IASB website).

17 June 2011: Deloitte publications update

The following Deloitte publications are now available: Global Publications IFRS Project Insights Update: Financial instruments - asset and liabilities offsetting (PDF 164k) IFRS Project Insights Update: Financial instruments - impairment (PDF 206k) IFRS Project Insights Update: Insurance contracts (PDF 129k) IFRS Project Insights Update: Leases (PDF 134k) IFRS Project Insights Update: Revenue recognition (PDF 359k) Deloitte (Colombia) IFRS industry insights — Abril 2011 — El proyecto de reconocimiento de ingresos ordinarios – Una actualización para la industria de telecomunicaciones (PDF 244k), the Spanish translation of IFRS industry insights — The Revenue Recognition Project – An update for the telecommunications industry IFRS industry insights — Abril 2011 — El proyecto de arrendamientos — Una actualización para la industria de fabricación (PDF 36k), the Spanish translation of IFRS industry insights — The Leases Project – An update for the manufacturing industry Boletín Heads Up Volumen 18, No. 15, Junio 2011 : ¿IFRS para todos? Documento del personal de la SEC explora el método de incorporación de los estándares internacionales eIn el sistema de presentación de reportes de los Estados Unidos (PDF 301k), a Spanish version of Heads Up Volume 18, Issue 15, June 1, 2011: IFRSs Anyone? SEC Staff Paper Explores Method of Incorporating International Standards Into U.S. Reporting System Deloitte (Germany) IFRS fokussiert: Vereinheitlichung der Vorschriften zur Ermittlung des beizulegenden Zeitwerts (PDF 469k) — German language newsletter explaining the IASB's new standard on fair value measurement Deloitte (Japan) Recorded Webcast Summary of the May 2011 IASB meetings (in Japanese) — available for viewing until 31 October 2011 Deloitte (New Zealand) Accounting Alert — Quarterly update (PDF 424k) — includes tables which outline new and revised pronouncements that either are to be applied for the first time at 30 June 2011, or which may be early adopted at that date Deloitte (United States) Heads Up — FASB Finalizes Guidance on Presentation of Comprehensive Income (PDF 121k), discusses ASU 2011-05, which revises the manner in which entities present comprehensive income in their financial statements.

17 June 2011: EFRAG Update with meeting summary for the June EFRAG TEG meeting

The European Financial Reporting Advisory Group (EFRAG) has released the June 2011 issue of its EFRAG Update newsletter. The EFRAG TEG meeting held on 8 to 10 June 2011 focused on: IASB new and revised standards related to Consolidation project — IFRS 10, IFRS 11, IFRS 12, revised IAS 27 and revised IAS 28. IASB forthcoming Amendments to IAS 1 and revised IAS 19 European outreach on the IASB's projects on Revenue Recognition and Leases IASB re-deliberations in the project Revenue from Contracts with Customers IASB re-deliberations in the project Leases IASB re-deliberations in the project Insurance Contracts EFRAG Proactive project Business Combinations under Common Control EFRAG Proactive project Disclosure Framework for the Notes to the Financial Statements EFRAG Proactive project The Role of the Business Model in Financial Reporting IFRS Foundation Report of the Trustees' Strategy Review FEE Discussion Paper on Combined Financial Statements Click for the EFRAG Update (PDF 377k, link to EFRAG website). Links to earlier issues are available here.

17 June 2011: AASB extends deadline for completion of questionnaire on intangible assets

Further to our earlier story, the Australian Accounting Standards Board (AASB) has announced an extension of the closing date for the AASB staff research questionnaire for preparers, advisors, auditors and regulators on initial accounting for intangible assets acquired in business combinations. The survey is a part of research being undertaken by AASB staff into the accounting for intangible assets under the aegis of the National Standard Setters (NSS) group and input received will be given to the IASB and FASB in relation to any future project they may undertake on intangible assets. The AASB is seeking input on a global basis and the deadline for completion of the questionnaire has been extended to Friday, 15 July 2011. Click for: AASB announcement (link to the AASB website) Questionnaire on the initial accounting for intangible assets (link to external survey site).

16 June 2011: IASB releases two new standards to complete two agenda projects

The IASB has amended two standards which are key planks in achieving its work plan, introducing new requirements on the presentation of comprehensive income and the accounting for employee benefits. The changes had their genesis in more extensive objectives under wider projects. The changes to the presentation of other comprehensive income (OCI) were 'spun out' of the wider project on Performance Reporting, which promised a major overhaul of the way the primary financial statements were presented. The OCI ED had originally itself proposed the mandatory presentation of other comprehensive income in one financial statement, but constituent comment proved the change to be too controversial to be included in the final amendments. Instead, the amendments to IAS 1 Presentation of Financial Statements retain the 'one or two statement' approach at the option of the entity and only revise the way other comprehensive income is presented: requiring separate subtotals for those elements which may be 'recycled' (e.g. cash-flow hedging, foreign currency translation), and those elements that will not (e.g. fair value through OCI items under IFRS 9). In addition, the FASB has issued corresponding guidance with the issuance of ASU 2011-05. While the boards' new guidance essentially converges the requirements for presenting OCI, there are still differences between U.S. GAAP and IFRSs concerning (1) what items are included in comprehensive income and (2) reclassification requirements. The amendments to employee benefits are somewhat more substantial, but might be considered a pragmatic subset of what the IASB had hoped to achieve when the overall project was included in the earlier stages of the convergence programme. Accounting for employee benefits, particularly pensions and other postretirement benefits, has long been a complex and difficult area and initial plans for a full review of pension accounting had to be deferred in light of competing priorities, ultimately leaving the IASB to proceed alone on improving specific aspects of the existing requirements of IAS 19 Employee Benefits. Prior to the amendment, IAS 19 permitted choices on how to account for actuarial gains and losses on pensions and similar items, including the so-called 'corridor approach' which resulted the deferral of gains and losses. The Exposure Draft proposed eliminating the use of the 'corridor' approach and instead mandating all remeasurement impacts be recognised in OCI (with the remainder in profit or loss) – and in fact had proposed extending these requirements to all long-term employee benefits (e.g. certain long service leave schemes). The final amendments make the OCI presentation changes in respect of pensions (and similar items) only, but all other long term benefits are required to be measured in the same way even though changes in the recognised amount are fully reflected in profit or loss. Also changed in IAS 19 is the treatment for termination benefits, specifically the point in time when an entity would recognise a liability for termination benefits. The final amendments do not adopt the equivalent US-GAAP requirements verbatim (which requires individual employees to be notified), but the recognition timeframe may be extended in some cases. Finally, various other amendments to IAS 19 may have impacts in particular areas. For instance, employee benefits not settled wholly before twelve months after the end of the annual reporting period would be captured as an 'other long term benefit' rather than a 'short term benefit', and whilst presented as a current item in the statement of financial position, would be measured differently under the amendments. Summary of the amendments Amendments to IAS 1 Presentation of Financial Statements Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax) Applicable to annual periods beginning on or after 1 July 2012, with early adoption permitted. Amended IAS 19 Employee Benefits Require recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements Introduce enhanced disclosures about defined benefit plans Modify accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits Clarification of miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features Incorporate other matters submitted to the IFRS Interpretations Committee Applicable on a modified retrospective basis to annual periods beginning on or after 1 January 2013, with early adoption permitted. Click for: IASB press release on the amendments to IAS 1 (link to IASB website) IASB press release on the amendments to IAS 19 (link to IASB website) Our summary of the Financial Statement Presentation project Our summary of the Employee Benefits project Our summary of the Termination Benefits project

16 June 2011: Further notes from the June IASB meeting

The IASB's regular monthly meeting was held on 13-15 June 2011 in London, much of it a joint meeting with the FASB. We've posted Deloitte further observer notes from the meeting (click through for direct access to the notes): Wednesday, 15 June 2011 Insurance Contracts (IASB-FASB) The next meeting of the IASB is scheduled for 18-22 July 2011. The tentative meeting originally scheduled for 1 July 2011 has been removed from the IASB's calendar. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

16 June 2011: Joint press release on IASB-EFRAG Meeting

The IASB and EFRAG have issued a press release on their joint meeting held on 14 June 2011 to discuss the completion of the IASB's work plan and the future agenda of the IASB. These meetings take place on a regular basis and are used to discuss European ideas and input into projects on the IASB's agenda. In addition to representatives from EFRAG, four European standard-setters were represented: France, Germany, Italy and the UK. The topics discussed were: Revenue recognition Leases Insurance contracts Financial instruments New standards on consolidation, joint arrangements and disclosures Timeline for completion of major projects Click for: Joint press release (link to IASB website) EFRAG's summary of main messages expressed by the EFRAG delegation (PDF 199k, link to EFRAG website) Meeting notes taken by Deloitte observers

16 June 2011: Deloitte comment letter on SME Implementation Group draft Q&As

Deloitte's IFRS Global Office has submitted a letter of comment on the following SME Implementation Group draft Q&As: Draft Q&A 2011/02: IFRS for SMEs Section 1, Issue 2 Captive insurance subsidiaries Draft Q&A 2011/03: Interpretation of 'traded in a public market' Draft Q&A 2011/04: Investment funds with only a few participants The comment letter expresses Deloitte's views on the above three draft Q&As on the interpretation of 'public accountability' in the context of the scope of the IFRS for SMEs, and addresses wider issues on the Q&A setting process. The following is an excerpt from the letter: In general, we question the appropriateness of these draft Q&As for the following reasons: as noted in paragraph BC75 of the IFRS for SMEs, local bodies, such as legislators and regulators, are best placed to judge how the concept of public accountability is viewed in their jurisdictions; and in determining the scope of the IFRS for SMEs, the Board decided upon a conceptual criterion. These draft Q&As could be read as adding rules to the concept. We also question 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. The Group's Terms of Reference and Operating Procedures were not subject to public comment, a regrettable deficiency that may impact the legitimacy of the product of the Group's deliberations. As the Q&As are considered IFRS related documents and are associated with the IASB, we believe that the due process steps followed in the development of an IFRIC Interpretation which include discussion and voting in a public meeting, public consultation on agenda items and positive approval of an Interpretation by the Board should be followed for these and any future Q&As. In addition, we note that Draft Q&A 2011/03 seeks to interpret a term ('traded in a public market') which exists in full IFRSs (IFRS 8, IAS 27 and IAS 33). We do not consider it appropriate for a Q&A on the IFRS for SMEs to address an issue which applies to other IFRSs as such guidance will, whether it is intended to or not, be interpreted as being applicable to those IFRSs. ... Click to Download our Comment Letter on SME Implementation Group draft Q&As (PDF 71k). All of our past comment letters are here.

16 June 2011: IIRC calls for participants in its Integrated Reporting Pilot Programme

The International Integrated Reporting Committee (IIRC) has called for expressions of interest from companies interested in participating in its Integrated Reporting Pilot Programme. The Pilot Programme is designed to assist the IIRC in the development of the Integrated Reporting framework over coming years. The IIRC hopes to test the principles and practicalities of Integrated Reporting through the Pilot Programme, with a view to creating a new global standard in Integrated Reporting in due course. The IIRC is intending to issue a Discussion Paper on Integrated Reporting in the third quarter of 2011. The Pilot Programme is being conducted in three phases. The deadline for lodgement of expressions of interest by companies willing to participate in all phases of the Pilot Programme is 30 June 2011, with expressions of interest for those wishing to join later stages of the programme closing on 29 July 2011. Click for more information (link to IIRC website).

15 June 2011: Further notes from the June IASB meeting

The IASB's regular monthly meeting was held on 13-15 June 2011 in London, much of it a joint meeting with the FASB. We've posted Deloitte further observer notes from the meeting (click through for direct access to the notes): Monday, 13 June 2011 (other sessions) Insurance Contracts (IASB-FASB) Whether to unlock the residual margin How to unlock the residual margin Allocation of the residual margin Acquisition costs revisited Tuesday, 14 June 2011 (other sessions) Meeting with EFRAG (IASB) Revenue recognition Leases Insurance contracts Financial instruments New standards on consolidation, joint arrangements and disclosures Timeline for completion of major projects Wednesday, 15 June 2011 Leases (IASB-FASB) Subleases Short-term leases Financial Instruments – Impairment (IASB-FASB) Alternate approach developed by the working group Revenue Recognition (IASB-FASB) Re-exposure of proposals (also see our earlier story) Investment Entities: Sweep issues (IASB) Effective date and early application Comment period Annual Improvements (IASB) Comment period Agenda Consultation: Proposed timetable (IASB) Notes from the additional session on insurance contracts held on Wednesday will be posted soon. The next meeting of the IASB is scheduled for 18-22 July 2011. The tentative meeting originally scheduled for 1 July 2011 has been removed from the IASB's calendar. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

15 June 2011: Revenue Recognition ED to be re-exposed

The IASB and FASB have decided to re-expose the Revenue Recognition ED. Although both Boards agreed that according to the criteria for the consultation process a re-exposure is not necessary, they supported a re-exposure since (a) a large number of changes were made and (b) revenues are the top line in the comprehensive income statement and everything else evolves from there. Also, the Boards feared that the publication of a staff paper would not receive the same attention. The document will only contain a few questions on the technical changes (mainly the questions from agenda paper 4C, paragraph 17 (all agenda papers are available here)). Other than that, the document will pose questions on clarity and consistency with Board decisions. The document will have a 120-day comment period. So far, no dissenting opinions have been indicated. Please click for: IASB press release (link to IASB website)

15 June 2011: 5th IFRS policy forum for the Asia-Oceania region

On 23 and 24 May 2011 the 5th IFRS International Forum took place in Kuta, Bali. Chairman of IASB Sir David Tweedie as well as other IASB Members, Warren McGregor and Tatsumi Yamada attended this event. Many jurisdictions in the Asia-Oceania region will be converging with the International Financial Reporting Standards (IFRS) over coming years. Some jurisdictions have already adopted the IFRS since 2005, while others such as Malaysia, Indonesia and Singapore have set the year 2012 as the target year for the full adoption/convergence of IFRS. The 2011 year is the crucial year for these jurisdictions moving to IFRS. The IFRS Regional Policy Forum was intended to bring together policy makers, regulators and national standards setters from jurisdictions in different stages of their IFRS adoption roadmap to share and learn from one another's experiences in adopting the global standards, both the challenges faced and in taking advantage of opportunities offered. The IASB has posted to its website a communiqué released after the Forum. It lists the following conclusions: Participants reaffirmed their commitment to the goal of ultimate adoption of IFRS and to achieve one global set of high quality accounting standard. Participants agreed that this goal may need to be facilitated through a process of convergence. Participants agreed that the accounting standard setters in Asia-Oceania region need to work together more closely to increase the regional voice and concerns. Participants agreed that local standard setter bodies will play a more important role as partner of IASB by proactively providing advice to the IASB of local issues and concerns. Participants agreed that the voice of Asia Oceania region should be increasingly important in shaping the future of IFRS. Participants share the similar concern that IFRS adoption is not just an accounting issue. To implement IFRS successfully, the support of the Government and other regulatory and policy bodies is critical. Participants shared the similar concern of the increasing awareness among investors demanding IFRS based financial statement. All participants agreed that it is very important that Taxation Law takes account of IFRS. Please click for: IASB press release (link to IASB website) Full Communiqué (PDF 12k, link to IASB website) IAS Plus page on activities of the Asian-Oceanian Standard-Setters Group (AOSSG)

15 June 2011: Notes from the June IASB meeting

The IASB's regular monthly meeting is being held on 13-15 June 2011 in London, much of it a joint meeting with the FASB. We've posted Deloitte observer notes from parts of days 1 and 2 of the meeting (click through for direct access to the notes): Monday, 13 June 2011 (IASB-FASB) Investment Property Education session on FASB project Leases - Lessor accounting Initial measurement of the residual asset Initial profit recognition Subsequent measurement of the residual asset Lease of a portion of the underlying asset Tuesday, 14 June 2011 (IASB-FASB) Financial Instruments – Classification and Measurement Education session on FASB model Leases Islamic (Shariah-compliant) leases Revenue Recognition Effect of the proposed model on telecoms (and other) companies Transition requirements Notes from the additional sessions on insurance (Monday and Tuesday) and asset and liability offsetting (Tuesday) will be posted soon. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

14 June 2011: Translations of IASB Publications and Technical Summaries

The IFRS Foundation has announced new and forthcoming translations of IASB publications. In the latest IFRS Translations Update (link to IASB website), the IFRS Foundation announced the following new and upcoming translations: Now available: German and Brazilian Portuguese translations of the 2010 Red Book of IFRSs Russian translation of both the 2011 IFRS Requirements and the IFRS for SMEs Requirements Spanish and Turkish translations of all 23 issued IFRS for SMEs training modules Coming soon: Romanian translation of the 2011 Red Book of IFRSs Georgian translation of the 2010 Red Book of IFRSs Serbian, Polish, Khmer and Mongolian translations of the IFRS for SMEs These translations can be accessed from the IASB's Available Translations page on the IASB website. In addition, the IFRS Technical Summaries in Japanese (link to IASB website) are also available.

14 June 2011: FASB Launches New Taxonomy Online Review and Comment System

Today, the US FASB launched a new system to provide transparency for users of eXtensible Business Reporting Language (XBRL) and to allow stakeholders to easily submit comments on the US GAAP Financial Reporting Taxonomy. The new Taxonomy Online Review and Comment System allows users to provide feedback in 'real time' by submitting comments directly on the entire Development Taxonomy. The system also includes "new search and navigation functions designed to efficiently find the tags that best meet the SEC's filer requirements". The FASB will host an IN FOCUS webcast on the Taxonomy Online Review and Comment System on Wednesday, 22 June, from 1:00 to 2:00 p.m. EDT (US). Click for: Development Taxonomy (link to FASB website). FASB press release (link to FASB website) FASB webcast: IN FOCUS: How to Use the XBRL 2011 US GAAP Financial Reporting Taxonomy (link to FASB website)

14 June 2011: EFRAG summary of the feedback received in the outreach on the Revenue Recognition and Leases projects

In May 2011, EFRAG and the European National Standard Setters jointly organised meetings in eight European cities in order to inform European constituents of, and obtain their feedback on, the direction taken by the IASB in its re-deliberations on the Revenue Recognition and Leases projects. The events focused only on those issues that had caused major concerns at the exposure draft stage and had been subsequently re-deliberated. EFRAG has now published an executive summary of the feedback received during the meetings with European constituents (PDF 63k, link to EFRAG website). Additionally, EFRAG staff prepared detailed feedback statements on each event for the convenience of the European constituents. These detailed feedback statements are available on EFRAG's website.

13 June 2011: Change to meeting agenda for current IASB meeting

The agenda for the IASB meeting in London on 13-15 June 2011 has been changed. A new session on Agenda Consultation: Proposed Timetable has been added to the agenda on Wednesday, 15 June. This session is scheduled for 2:20-2:35pm (London time). A revised summary of the agenda for the meeting can be found here. We maintain a summary of the agenda for the next scheduled IASB meeting, and details of future meeting dates, here. Also, the agenda for the meeting with the European Financial Reporting Advisory Group (EFRAG) has been announced: Tuesday, 14 June 2011 IASB-EFRAG Joint Meeting (08:00-10:30) Welcome and Introduction Revenue Recognition Leases Insurance Contracts Financial Instruments Consolidation, Joint Arrangements and Disclosures Timeline for Completion of Major Projects Field-testing

13 June 2011: Deloitte publications update

The following Deloitte publications are now available: Global Publications IFRS on Point — IFRS Accounting Developments and Information: May 2011 (PDF 85k) IFRS Project Insights Update: Insurance contracts (PDF 125k) Deloitte (Australia) Reduced Disclosure Requirements - Model Financial Statements (PDF 914k) – illustrative disclosures for entities adopting 'Reduced Disclosure Requirements' (RDR) at 30 June 2011, the Australian adopted alternative to the IFRS for SMEs Deloitte (Canada) Le point sur les IFRS – Avril 2011 (PDF 87k) – French translation of IFRS on Point — IFRS Accounting Developments and Information: April 2011 Pleins feux sur les IFRS – L'IASB publie une nouvelle norme sur les partenariats (accords conjoints) (PDF 69k) – French translation of IFRS in Focus — IASB issues new standard on joint arrangements Pleins feux sur les IFRS – L'IASB publie une nouvelle norme sur l'évaluation à la juste valeur et les informations à fournir (PDF 87k) – French translation of IFRS in Focus — IASB issues new standard on fair value measurement and disclosure Deloitte (China) Chinese translation of IFRS in Focus — IASB issues new standard on consolidation (Chinese, PDF 216k) Chinese translation of IFRS in Focus — IASB issues new standard on disclosure of interests in other entities (Chinese, PDF 174k) Chinese translation of IFRS in Focus — IASB issues new standard on fair value measurement and disclosure (Chinese, PDF 199k) Deloitte (Germany) IFRS fokussiert: (Nicht) Alles neu macht der Mai (PDF 297k) – German language newsletter explaining the IASB's "package of five" new and revised standards addressing the accounting for consolidation, involvements in joint arrangements and disclosure of involvements with other entities.

11 June 2011: IASB and ASBJ report on convergence

The IASB and the Accounting Standards Board of Japan (ASBJ) have announced their achievements under their August 2007 Memorandum of Understanding (MoU), known as the Tokyo Agreement, to improve International Financial Reporting Standards (IFRSs) and Japanese generally accepted accounting principles (GAAP) and to bring about their convergence. The announcement results from a meeting between the IASB and ASBJ held in Tokyo on 6-7 June 2011. Under the Tokyo Agreement, both boards agreed to seek to eliminate by 2008 major differences between Japanese GAAP and IFRSs, with the remaining differences to be removed on or before 30 June 2011. Whilst the target date of 2011 does not apply to any major new IFRSs now being developed that will become effective after 2011, both boards have agreed to work closely to ensure the acceptance of the international approach in Japan when the new standards become effective. The report discusses the progress made by the IASB and ASBJ in both short-term and other convergence projects. The convergence of IFRS with Japanese GAAP is seen by both boards as an important step on the path towards Japan's possible adoption of IFRSs, with a decision on adoption likely in 2012. A full summary of the convergence report is available on our Japan country page. Click for: IASB press release (link to IASB website). ASBJ press release (link to ASBJ website) Our Japan country page

10 June 2011: Updated agenda for the regular June IASB meeting

The IASB's regular monthly meeting is scheduled for 13-15 June 2011 in London, much of it a joint meeting with the FASB. Set out below is the agenda for the meeting (links are our project summary for each topic). Times are shown in London time (GMT+1). IASB Board Meeting Agenda 13-15 June 2011, London Monday, 13 June 2011 IASB-FASB Joint Meeting (11:30-18:30) Insurance Contracts Investment Property – Education session on FASB project Leases Tuesday, 14 June 2011 IASB Meeting (08:00-10:30) Meeting with EFRAG IASB-FASB Joint Meeting (10:45-18:30) Financial Instruments: Classification and Measurement – Education session on FASB model Leases Revenue Recognition Asset and Liability Offsetting Insurance Contracts Wednesday, 15 June 2011 IASB-FASB Joint Meeting (08:00-12:30) Asset and Liability Offsetting Financial Instruments – Impairment Revenue Recognition IASB Meeting (13:15-14:20) Consolidation: Investment entities – Sweep issues Annual Improvements Cycle 2009-2011 – Comment period

10 June 2011: ICAEW Accountancy Magazine discusses Monitoring Board review

The June edition of Accountancy Magazine includes an article discussing the IFRS Monitoring Board governance review issued in February 2011 (see our earlier story). The article, written by Colin Fleming, a director in Deloitte's Global IFRS Office, discusses the changing role of the IASB since its formation and the need for the governance and monitoring structures of the IFRS Foundation and IASB to adapt as IFRS use spreads. Mr Fleming also discusses the suggestion arising from the governance review to expand and diversify the Monitoring Board, how any expanded Board should vote, whether the Board should have an 'explicit ability' to place an item in the IASB's technical agenda and its role in the selection of the IASB Chair. An extract follows: The governance structure of the IFRS Foundation must facilitate achieving the ultimate goal of a single set of high-quality global financial reporting standards. It needs to support that goal while balancing the need for accountability to public authorities and the independence of the standard-setter. But the governance structure must also be seen to deliver accountability and independence in such a way that jurisdictions not already using IFRS can adopt the standards with the same degree of confidence that current users have. The governance review has already been identified as one of the issues identified as an important factor in the US Security and Exchange Commission's decision on whether to adopt the use of IFRS in the US later this year. Click for the full article (PDF 188k). The article is posted with the kind permission of the Institute of Chartered Accountants in England and Wales (ICAEW) and cannot be further reproduced without the permission of ICAEW.

9 June 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: 9 June 2011 – Paul Pacter: Developing accounting standards consistent with the CFA Institute's vision All Investor Perspectives are archived on the IASB's website.

9 June 2011: UK pensions industry disapproves of IFRSs

On 29 October 2010, the UK Accounting Standards Board (ASB) published its proposals for the future of financial reporting in the UK and Republic of Ireland. The Exposure Draft (ED) set out proposals for a three-tier reporting framework, which aims to balance the needs of preparers and users of accounts. The ED included pension schemes in its scope and suggested that they should be classified as tier 1 in the ASB tier structure. Tier 1 companies will have to report under International Financial Reporting Standards (IFRS). Deloitte (United Kingdom) has conducted a poll to find out whether the pensions industry supports the proposals of the ASB. The results showed that: 43% of respondents were of the opinion that no change is needed in financial reporting by pension schemes; 75% of all respondents said that not all pension schemes should be classified as publicly accountable entities (i.e. have to apply IFRSs); where one third of these (24% of all respondents) agreed that some schemes depending on other factors should be classified as publicly accountable; Asked on which criteria the decision of public accountability should be based if not all pension schemes are to be classified as publicly accountable, the respondents named a consideration of the number of members in the scheme (26%), the value of investment assets held (11%) and a combination of members, investment assets and the level of contribution income (53%). Please click for an overview of all results of the poll (PDF 22k) and our earlier story explaining the new tier structure proposed by the ASB.

9 June 2011: Special IASB meeting 1 July 2011

The IASB has announced a special IASB meeting on 1 July 2011. Further details and topics to be discussed have not been communicated yet.

8 June 2011: A Driving Wind for IFRS from Asia-Oceania

The Asian-Oceanian Standard-Setters Group (AOSSG) has published today "A Vision Paper of the Asian-Oceanian Standard-Setters Group 2011 – A Driving Wind for IFRS from Asia-Oceania". The paper describes activities of the AOSSG to date and future activities for the medium- and long-term. The AOSSG was founded in April 2009 as a platform for the standard setters of the region to discuss problems and share experiences in the convergence process, to participate in the development of IFRSs, and to make contributions to a single set of high quality global accounting standards. The AOSSG works towards being recognised as a flag-bearer of global standard setting and sees communication with the IASB and other bodies of the IFRS Foundation to enable the IASB to prioritise its strategic initiatives with better understanding of issues in the region as one of its roles. Please click for: AOSSG Vision Paper A Driving Wind for IFRS from Asia-Oceania (PDF 914k, link to AOSSG website) AOSSG Press Release (PDF 223k, link to AOSSG website) Our IAS Plus page covering the activities of the AOSSG

7 June 2011: Near Final Draft of amendments to IAS 1

The IASB has released a Near Final Draft (NFD) of amendments to IAS 1 Presentation of Financial Statements to change how components of other comprehensive income (OCI) are presented. The amendments: preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single statement of comprehensive income, or separate income statement and a statement of comprehensive income (rather than requiring a single continuous statement as was proposed in the exposure draft) require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified do not change the option to present items of OCI either before tax or net of tax, however tax associated with items that are presented before tax must be shown separately for each of the two groups of OCI items. The amendments are expected to be issued later this month and will apply to reporting periods beginning on or after 1 July 2012. Click for: Access to the NFD on the IASB's website (for subscribers only) Our comprehensive income project summary.

7 June 2011: Agenda for the regular June IASB meeting

The IASB's regular monthly meeting is scheduled for 13-15 June 2011 in London, much of it a joint meeting with the FASB. Set out below is the agenda for the meeting (links are our project summary for each topic). Times are shown in London time (GMT+1). IASB Board Meeting Agenda 13-15 June 2011, London Monday, 13 June 2011 IASB-FASB Joint Meeting (11:30-18:30) Insurance Contracts Leases Tuesday, 14 June 2011 IASB Meeting (08:00-10:30) Meeting with EFRAG IASB-FASB Joint Meeting (10:45-18:30) Financial Instruments: Classification and Measurement – Education session on FASB model Investment Property – Education session on FASB project Revenue Recognition Insurance Contracts Wednesday, 15 June 2011 IASB-FASB Joint Meeting (08:00-12:30) Asset and Liability Offsetting Financial Instruments – Impairment IASB Meeting (13:15-14:20) Consolidation: Investment entities – Sweep issues Annual Improvements Cycle 2009-2011 – Comment period

6 June 2011: Near Final Draft of amendments to IAS 19

The IASB has released a Near Final Draft (NFD) of amendments to its standard on accounting for pensions and other postretirement benefits (OPEB). This project forms part of the Memorandum of Understanding between the IASB and the FASB and represents the first step in a broader reconsideration of the accounting for pensions and OPEB. The IASB believes the amendments will yield significant improvements to the transparency and comparability of pension obligations. The following areas are affected by the amendments: recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements; disclosures about defined benefit plans; accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits; miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features; and other matters submitted to the IFRS Interpretations Committee. Access to the NFD on the IASB's website is for subscribers only. The publication of the amended IAS 19 is expected later this month.

6 June 2011: IVSC releases updated proposals on ethical principles for professional valuers

The International Valuation Standards Committee (IVSC) has released revised proposals for a Code of Ethical Principles aimed at providing better regulation of the global valuation profession. The exposure draft is an update to an initial set of proposals issued during 2010. Key changes include: expanding the guidance on the application of the five 'Fundamental Ethical Principles' (integrity, objectivity, professional competence and due care, confidentiality and professional behaviour) replacing the original material focusing on the application of the Fundamental Principles with guidance that has a broader context and generally avoids detailed rules requiring or forbidding specific actions removing some rules that dealt with the execution of a valuation assignment rather than ethical issues. Comments on the exposure draft are requested by 31 August 2011. Click for access to the exposure draft (link to IVSC website).

6 June 2011: Proposed guidance from AICPA on evaluating XBRL information

The XBRL Assurance Task Force of the AICPA Assurance Services Executive Committee (ASEC) has issued an exposure draft titled Proposed Principles and Criteria for XBRL-Formatted Information. The exposure draft includes a set of principles and criteria for preparers, reviewers, and practitioners to use in evaluating information formatted in eXtensible Business Reporting Language (XBRL). The exposure draft outlines the following four principles for use in evaluating the quality of XBRL-formatted information, designed to be applied in accordance with the requirements of the entity's reporting environment: Completeness – All required, and only permitted, information is formatted at the required levels Mapping – The elements selected are consistent with the meaning of the associated concepts in the source information Accuracy – The amounts, dates, other attributes (for example, monetary units), and relationships (order and calculations) in the instance document and related files are consistent with the source information Structure – XBRL files are structured in accordance with the requirements of the entity's reporting environment. Comments on the exposure draft are requested by 15 July 2011. Click for Press release (link to AICPA website).

6 June 2011: New appointments to the IFRS Interpretations Committee

The Trustees of the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), has announced appointments and reappointments to the IFRS Interpretations Committee. The new members of the Committee are as follows: Charlotte Pissaridou, Managing Director, Head of Accounting Policy for Europe, Middle East and Africa, Goldman Sachs International, UK (three-year term, replacing Jean-Louis Lebrun) Kazuo Yuasa, General Manager, IFRS Office, Corporate Finance Unit, Fujitsu Limited, Japan (one-year term, replacing Takatsugu Ochi, who has been appointed as a member of the IASB from 1 July 2011) In addition, five members of the Committee complete their term at the end of June 2011 and have been reappointed for a further three-year term. They are: Joanna Perry, Luca Cencioni, Jean Paré, Margaret Smyth and Scott Taub. Click for IFRS Foundation announcement (link to IASB website).

5 June 2011: Deloitte publications update

The following Deloitte publications are now available: Global Publications IFRS Industry Insights: The Revenue Recognition Project — An update for the manufacturing industry (PDF 484k) IFRS Project Insights Update: Financial instruments – hedge accounting (PDF 244k) IFRS Project Insights Update: Financial statement presentation - statement of comprehensive income (PDF 306k) IFRS Project Insights Update: Leases (PDF 135k) IFRS Project Insights Update: Revenue recognition (PDF 356k) Deloitte (Australia) Monthly Roundup May 2011 – highlights the new batch of standards forming the 'next wave', new Accounting alerts on topical issues for 30 June 2011 reporting and Trans-Tasman convergence. Deloitte (China) Chinese translation of IFRS in Focus — IASB issues new standard on joint arrangements (Chinese, PDF 184k) Deloitte (Japan) Japanese translation of IFRS Industry Insights: The Revenue Recognition Project — An update for the consumer business industry (Japanese, PDF 279k) Japanese translation of IFRS Industry Insights: The Leases Project — An update for the shipping industry (Japanese, PDF 265k) Japanese translation of IFRS Industry Insights: The Revenue Recognition Project — An update for the manufacturing industry (Japanese, PDF 277k) An article about the potential impacts of the IASB's leasing proposals on the real estate industry (Japanese, link to Deloitte Japan website) Deloitte (United States) Heads Up — SEC Staff Paper Explores Method of Incorporating International Standards Into U.S. Reporting System (PDF 118k) Accounting Roundup — May 2011 (PDF 323k)

3 June 2011: IFRS Foundation publishes proposed IFRS Taxonomy 'common-practice' enhancements

The IFRS Foundation has published for public comment an exposure draft of the IFRS Taxonomy 2011 interim release: common-practice concepts. The proposed interim release contains supplementary tags for the IFRS Taxonomy that reflect disclosures that are commonly reported by entities in their IFRS financial statements. The supplementary tags are intended to enhance the comparability of financial information, and are consistent with IFRSs and with the XBRL (eXtensible Business Reporting Language) architecture of the IFRS Taxonomy 2011. The supplementary tags result from the IFRS Foundation previously announced intention to extend the IFRS Taxonomy. This was partially a response to United Statements Securities Exchange Commission (SEC) concerns about the suitability of the existing IFRS Taxonomy 2011 for US filing purposes, together and the outcomes of an pilot XBRL study. The SEC has issued a 'no action' letter in which it states foreign private issuers that prepare their financial statements in accordance with IFRS as issued by the IASB are not required to submit XBRL information to the SEC until it endorses an IFRS Taxonomy it considers suitable. The proposals are open for comment until 2 August 2011. Click for IFRS Foundation announcement (link to IASB website). More information about XBRL is available on our XBRL page.

3 June 2011: Upcoming Canadian quarterly technical update webcast

Deloitte (Canada) is holding a quarterly technical update webcast on Tuesday, 21 June 2011. Discussion will include key issues related to reporting under IFRS (2011 represents the mandatory IFRS changeover for many entities in Canada) – including special tips and reminders for second quarter reporting and an update on recently issued new IFRS standards. Full details of the webcast are provided below: Topic: IFRS quarterly technical update webcast — Moving ahead in an IFRS world Date and time: Tuesday, 21 June 2011 2:00PM-3:00PM Eastern Daylight Time (GMT-05:00) More information: Click Here Registration: Click Here

3 June 2011: FASB launches educational webcast series

The Financial Accounting Standards Board (FASB) has announced the launch of an educational 'IN FOCUS' webcast series focusing on financial accounting and reporting developments of importance to the FASB's stakeholders, such as recently issued final standards, Exposure Drafts, or changes to the US GAAP Financial Reporting Taxonomy. The first in the series, entitled IN FOCUS: FASB Update for Nonpublic Entities (link to FASB website) will take place on Friday, June 17, from 1:00 to 2:40 p.m. EDT (US). The webcast will include topics such as the FASB's strategic review of standard setting for nonpublic entities, progress on the FASB-IASB convergence programme, and other active projects or recently-issued standards of interest to nonpublic entities. A subsequent webcast focused on the US GAAP Financial Reporting Taxonomy will be held on Wednesday, June 22, 2011. Continuing professional education (CPE) credit is available for those participating in the live broadcasts. Click for FASB announcement (link to FASB website).

3 June 2011: Notes from the special IASB-FASB meeting

The IASB held a special meeting in London on 31 May - 2 June 2011, much of which was a joint meeting with the FASB. We've posted the remaining Deloitte observer notes from the meeting (click through for direct access to the notes): Wednesday, 1 June 2011 (earlier sessions) Financial instruments – Hedge accounting (IASB) Macro hedge accounting – education session Asset and liability offsetting (IASB/FASB) Education session with representatives of ISDA Unit of account Collateral Leases (IASB/FASB) Lessee accounting: Subsequent measurement of foreign exchange differences Lessee accounting: Impairment of a lessee's right-of-use asset Lessee accounting: Revaluation of a lessee's right-of-use asset (IASB-only) Lessee accounting: Residual value guarantees Thursday, 2 June 2011 Financial instruments – Hedge accounting (IASB) Rebalancing the hedging relationship Discontinuing the hedging relationship Options as hedging instruments Net written options Financial Statement Presentation: Other Comprehensive Income (IASB) Effective date Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

2 June 2011: OECD guidance on minerals includes disclosure of amounts paid to governments

The Organisation for Economic Co-operation and Development (OECD) has published Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Guidance). Its stated objective of the guidance is to help companies respect human rights and avoid contributing to conflict through their mineral sourcing practices. The Guidance is also intended to cultivate transparent mineral supply chains and sustainable corporate engagement in the mineral sector with a view to enabling countries to benefit from their natural mineral resources and preventing the extraction and trade of minerals from becoming a source of conflict, human rights abuses, and insecurity. An annex to the Guidance illustrates a 'Model Supply Chain Policy for a Responsible Global Supply Chain of Minerals from Conflict-Affected and High-Risk Areas', which includes the following requirements: Regarding the payment of taxes, fees and royalties due to governments: We will ensure that all taxes, fees, and royalties related to mineral extraction, trade and export from conflict-affected and high-risk areas are paid to governments and, in accordance with the company's position in the supply chain, we commit to disclose such payments in accordance with the principles set forth under the Extractive Industry Transparency Initiative (EITI). While not legally-binding, the guidance states it reflects the common position and political commitment of adhering countries. The disclosure of payments to governments has been a vexed issue from a financial reporting perspective and is also of relevance in sustainability or integrated reporting. For instance, the IASB's Discussion Paper DP/2010/1 Extractive Activities sought constituent feedback on the so-called 'Publish What You Pay' (PWYP) proposals. Click for more information (link to OECD website).

1 June 2011: Notes from Day 1 of the special IASB-FASB meeting

The IASB is holding a special meeting in London on 31 May - 2 June 2011, much of which is a joint meeting with the FASB. We've posted Deloitte observer notes from the first day of the meeting (click through for direct access to the notes): Tuesday, 31 May 2011 (IASB/FASB) Insurance contracts - Reinsurance Definition of significant risk transfer Interdependent contracts Recognition of reinsurance contract Ceded risk adjustment Treatment of gains and losses Cession of residual / composite margin on underlying insurance contracts Revenue recognition Costs of products manufactured for delivery under long-term production programs Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

1 June 2011: Roundtables on Trustee strategy review – Registration for webcasts now open

As reported earlier, The Trustees of the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), published a report (link to IASB website, PDF 309k) on the strategy of the IFRS Foundation as it enters its second decade. The Trustees welcome comments by 25 July 2011 and will hold strategy review roundtables. Registration for these sessions is now available on the IASB website: Tuesday, 7 June in Tokyo Wednesday, 8 June in Hong Kong Monday, 13 June in New York Tuesday, 21 June and Wednesday, 22 June in London

1 June 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: 1 June 2011 – Patricia McConnell: Gross or net? That is the question All Investor Perspectives are archived on the IASB's website.