The ED proposes that all gains and losses resulting from changes in 'own credit' for those financial liabilities that an entity chooses to measure at fair value should be recognised as a component of 'other comprehensive income', not in profit or loss. Such gains or losses would be presented using a 'two-step approach':

1. As a first step, an entity would present the full change in fair value in profit or loss.
2. In the second step, the portion relating to changes in an entity's own credit risk would be presented as an offsetting entry in profit or loss and presented in OCI.

 

This batch includes editorial corrections and changes to IFRS 9 Financial Instruments (issued November 2009), Bound Volume 2010, and Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (issued January 2010).

Click for IASB Editorial Corrections webpage.

 

IFRSs will be added to the CPA exam in 2011, regardless of whether the Securities and Exchange Commission acts to permit or require US registrants to use IFRSs.

Click for article, "Test Your Knowledge of International Standards".

 

Click for:

• Annual Improvements 2009-2010
• Conceptual Framework – Qualitative Characteristics (Sweep Issues)
• Consolidation
• Emissions Trading
• Insurance Contracts
• Joint Ventures
• Leases
• Management Commentary
• Replacement of IAS 39: Hedge Accounting
• Revenue Recognition

 

Under the proposals in the Exposure Draft, expected losses on loans (or other financial assets measured at amortised cost) are recognised throughout the life of the loan (or other asset), and not just after a loss event has been identified. Click for:

• Information about the November 2009 Exposure Draft
• More Information about the EAP

 

We urge the Boards to consider the adverse effect that is likely to have on the effectiveness of the Boards' due process procedures." The letter said:

Our member companies are extremely concerned with the 10+ Exposure Drafts (EDs) that are in final stages and will be released for public comment through the third quarter of 2010. During any single period in time in its 38-year history, the FASB has had no more than 3 or 4 significant EDs out for public comment. Moreover, it would be reasonable to characterize a majority of the historical exposure documents as evolutionary proposals rather than the more fundamental changes in accounting and reporting paradigms as are proposed in the forthcoming EDs. In addition, there are numerous interdependencies among the standards that further complicate the analysis.

Click for FEI CCR Letter to FASB and IASB (PDF 239k).

 

On 11 May 2010, the IASB issued an exposure draft (ED) proposing to amend the way the fair value option in IAS 39 Financial Instruments: Recognition and Measurementis applied with respect to financial liabilities. The ED proposes that all gains and losses resulting from changes in 'own credit' for those financial liabilities that an entity chooses to measure at fair value should be recognised as a component of 'other comprehensive income' (OCI), not in profit or loss. Such gains or losses would be presented using a 'two-step approach':

1. As a first step, an entity would present the full change in fair value in profit or loss.
2. In the second step, the portion relating to changes in an entity's own credit risk would be presented as an offsetting entry in profit or loss and presented in OCI.

 

This 132-page guideincludes information about:

• IASB structure and contact details
• IASB due process
• Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada
• Summaries of each IASB Standard and Interpretation, as well as the Framework and the Preface to IFRSs
• Background and current status of all current IASB projects
• IASC and IASB chronology
• Update on IFRS-US GAAP convergence
• 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.

 

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