He will take over from Gerrit Zalm, who currently serves as Chairman and whose term was expiring this year, after the Trustees' meeting on 7 and 8 July 2010. Mr Padoa-Schioppa briefly served as Chairman of the Trustees from January 2006 to May 2006, when he was asked to become Italy's Minister of Economy and Finance. From 1998 to 2005, he was a member of the first Executive Board of the European Central Bank. He is currently President of Notre Europe and Chairman of Promontory Europe. Click for Monitoring Board Announcement(PDF 298k).

 

In the area of financial reporting, President Obama urged renewed 'efforts to enhance transparency and increase disclosure by our large financial institutions'. He said that greater transparency and disclosure will 'promote market integrity and reduce market manipulation'. Click to download President Obama's Letter to the G20 (PDF 114k).

The ED was issued on 5 November 2009. The ED proposes to modify the way impairment losses are recognised on financial assets measured at amortised cost.

• Current standard: IAS 39 recognises impairment of financial assets using an 'incurred loss model'. An incurred loss model assumes that all loans will be repaid until evidence to the contrary (known as a loss or trigger event) is identified. Only at that point is the impaired loan (or portfolio of loans) written down to a lower value.
• Proposed standard: The model proposed in the ED is an 'expected loss model'. Under that model, expected losses are recognised throughout the life of a loan or other financial asset measured at amortised cost, not just after a loss event has been identified. The expected loss model avoids what many see as a mismatch under the incurred loss model – front-loading of interest revenue (which includes an amount to cover the lender's expected loan loss) while the impairment loss is recognised only after a loss event occurs.

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

 

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

 

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

 

Given the increased adoption of IFRS as the de facto accounting language worldwide, the importance of having a high-quality, consistent approach to IFRS has never been more evident.

The leaders of the Group of 20, who represent 19 of the world's largest national economies plus the European Union, have called for the world to coalesce around a single set of financial reporting standards by June 2011, and IFRS is undergoing a series of changes to become that single set of standards. While the acceptance of IFRS is widespread, it is not yet universal. However, the trend is continuing, with more countries, such as Brazil, Canada, and Korea, adopting IFRS in the next few years. The two most recent and notable actions in line with this trend came from the United States and Japan, which are home to 40 percent of the Global Fortune 500 companies. Japan's Financial Services Authority decided in December 2009 to permit voluntary use of IFRS, while the Securities and Exchange Commission in the United States in February published a plan for making a decision on the adoption of IFRS in 2011. In light of the changing IFRS landscape, clients globally, as well as Deloitte member firm professionals in all functions and virtually all geographies, are likely to be affected by IFRS over the next few years.

The new Deloitte team has taken a fresh look at Deloitte-branded IFRS publications, and has enhanced format and content to make them even more informative as well as more multifaceted. Among the new suite of publications being launched are:

• IFRS in Focus: This newsletter will cover important accounting developments and provide commentary to help member firm practitioners understand how they will be affected.
• IFRIC Review: This new communication tool will examine matters discussed at the IASB's IFRS Interpretations Committee. The publication will offer insights on issues discussed during these meetings.
• Industry-Focused Publications: As developments unfold in connection with IFRS, the insights of industry leaders will be leveraged through these publications, highlighting issues and opportunities pertaining to specific industries.

Click for Information about the IFRS Foundation on IAS Plus

 

• Consolidation
• Insurance Contracts
• Joint Ventures
• Leases

 

Following the joint meeting, the IASB held a Board meeting on its own to discuss Joint Ventures. Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.