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Six Deloitte publications issued

13 Dec 2010

Deloitte's Asia-Pacific IFRS Centre of Excellence in Hong Kong has published Hong Kong Financial Reporting Standards – Illustrative Annual Financial Statements 2010, illustrating disclosures in force for December 2010 year ends and beyond. Deloitte (United States) has published a new Heads Up newsletter summarising some of the feedback received in the comment letters to the FASB's exposure draft on revenue recognition and feedback from the roundtable discussions on the exposure draft as well as a Heads Up newsletter on the deferral of the effective date of disclosures about troubled debt restructurings. We have also posted the December 2010 edition of EITF Snapshot, the November 2010 edition of Accounting Roundup and the December 2010 edition of Australia Accounting Alert.

New exposure draft from IAESB

13 Dec 2010

The International Accounting Education Standards Board (IAESB) has released for public exposure a proposed revision of International Education Standard (IES) 7 'Continuing Professional Development: A Program of Lifelong Learning and Continuing Development of Professional Competence'.

The proposed redrafting aims to assist the ongoing worldwide development of continuing professional development systems and compliance mechanisms.

Comments on the exposure draft are requested by 8 March 2011. Click for IAESB press release (link to IFAC website).

'IFRS at a critical crossroad'

13 Dec 2010

The IASB has posted to its website a section of the keynote speech entitled 'Regulatory Reform and IFRS at a Critical Crossroad' at the FEI conference, given by IFRS Foundation Trustee Harvey Goldschmid.

In his speech Mr. Goldschmid describes two basic scenarios that are probable if the US Securities and Exchange Commission (SEC) comes to a negative decision on IFRS adoption:

"First, the coalition of nations supporting IFRS could break apart. Rather than two sets of accounting standards, IFRS and U.S. GAAP, we could go back to pre-2000 fragmentation. Many national accounting systems would exist. The cost, in terms of lack of transparency and comparability, higher accounting expenses, etc., would be extremely large.

The second basic scenario is even worse from a U.S. perspective. The coalition in support of IFRS could hold and the U.S. would become isolated. The U.S. would no longer play the large and constructive role it now plays in IFRS development and oversight. I believe that without active U.S. participation the overall quality of the international accounting standards would deteriorate. Remember, there is less concern about transparency and investor protection in some other parts of the world."

Click for keynote speech excerpt (link to IASB website).


New issue of the IASB's Investor Perspectives

11 Dec 2010

In April 2010, the Trustees of the IFRS Foundation and the IASB launched a programme to enhance investors' participation in the development of International Financial Reporting Standards (IFRSs).

One of the enhancements is a newsletter for investors. Board members Stephen Cooper, Patrick Finnegan and Patricia McConnell publish timely updates on financial reporting matters. For the new issue of the Investor Perspectives they have been joined by Paul Pacter, IASB member and former webmaster of IAS Plus:

All Investor Perspectives are archived on the IASB's website.

Updated agenda for the December 2010 IASB meeting

10 Dec 2010

The IASB has made additional revisions to its agenda for its monthly meeting being held in London from 13 to 17 December 2010. The asset and liability offsetting discussion and the discussion on impairment have been swapped with each other.

Impairment will now be discussed on Thursday morning and offsetting on Tuesday afternoon. In addition, changes were made to the start times for Tuesday's sessions. Click here to view the updated agenda.

Deadline reminder – ED on Leases

10 Dec 2010

We remind you that comments on the Exposure Draft Leases are due on 15 December 2010.

The proposals in the ED would result in a consistent approach to lease accounting for both lessees and lessors – a 'right-of-use' approach.

IASB publishes exposure draft on hedge accounting

09 Dec 2010

The International Accounting Standards Board (IASB) has published for public comment an exposure draft on the accounting for hedging activities.

The exposure draft proposes requirements designed to enable companies to better reflect their risk management activities in their financial statements, and, in turn, help investors to understand the effect of those activities on future cash flows.

The proposed model is principle-based, and is designed to more closely align hedge accounting with risk management activities undertaken by companies when hedging their financial and non-financial risk exposures.

Summary of the ED proposals

  • A new hedge accounting model which combines a management view that aims to use information produced internally for risk management purposes and an accounting view that seeks to address risk management issue of the timing of recognition of gains and losses
  • Look only at whether a risk component can be identified and measured, as opposed to determining what can be hedged by type of item (financial or non-financial)
  • Base qualification for hedge accounting on how entities design hedges for risk management purposes and permit hedging relationships to be adjusted without necessarily stopping and potentially restarting hedge accounting
  • Treat the time value premium of a purchased option as a cost of hedging, which will be presented in other comprehensive income (OCI)
  • Extending the use of hedge accounting to net positions (to improve the link to risk management)
  • A comprehensive set of new disclosures that focus on the risks being hedged, how those risks are being managed and the effect of hedging those risks upon the primary financial statements

The exposure draft forms part of the IASB's overall project to replace IAS 39 Financial Instruments: Recognition and Measurement, and when its proposals are confirmed they will be incorporated into IFRS 9 Financial Instruments. The exposure draft does not include consideration of portfolio macro hedge accounting which the IASB will continue to discuss.

The exposure draft ED/2010/13 Hedge Accounting is open for comment until 9 March 2011. The IASB intends to finalise and issue the proposals during the first half of 2011.

Click for:


Deloitte IFRS Podcast on financial instruments: hedge accounting exposure draft

09 Dec 2010

We've released a podcast where Andrew Spooner, lead IFRS financial instruments partner, and Kush Patel, senior manager and recent IASB Practice Fellow, discuss the IASB's exposure draft on hedge accounting.

They discuss the key changes that are proposed and provide an insight into the likely effect they will have in practice. The discussion is chaired by Robert Bruce. The podcast is available for download here (35:18 mins 33 mb) or via iTunes; it is one of a series that will be posted to IAS Plus. All podcasts of the series are available here.


Updated agenda for the December 2010 IASB meeting

08 Dec 2010

The IASB has substantially revised its agenda for its monthly meeting for December 2010 being held at the IASB offices in London from 13 to 17 December 2010. Meeting times and topics have been amended and a short meeting will now be held on Thursday.

Click here to view revised agenda.


Notes from special December IASB meeting

08 Dec 2010

The IASB met in London on 8 December 2010 for a special joint meeting with the FASB.

The topics discussed were as follows:

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the meeting. The next IASB meeting is scheduled for 13-17 December 2010.

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