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2010

Agenda for the December 2010 IASB meeting

03 Dec 2010

The IASB's regular monthly meeting is scheduled for 13-17 December 2010 in London, part of it a joint meeting with the FASB.

You can access the agenda on our December 2010 IASB meeting page. We will also post Deloitte observer notes on this page as they are available.

 

We comment on ED/2010/8

02 Dec 2010

Deloitte has submitted a comment letter on Exposure Draft ED/2010/8 Insurance Contracts.

The amendment proposes a single IFRS that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. The proposed IFRS would apply to writers of both insurance and reinsurance contracts.

We welcome the model proposed in the ED because it offers improvements to the accounting for insurance contracts under existing IFRS practices. However, the ED includes a number of proposals that appear to move away from the ED's core principles and we recommend that the Board considers alternative solutions to address these areas to ensure consistency with the ED's core principles. Click to Download our Comment Letter (PDF 125k). All of our past comment letters are here.

November edition of IFRS on Point issued

02 Dec 2010

Deloitte's IFRS Global Office has published the November 2010 edition of IFRS on Point, which highlights the month's critical financial reporting developments.

IFRS on Pointis published monthly and provides a great way to catch up on the main IFRS-related news stories of the month.

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EFRAG issues its feedback statement on its proactive consultation

02 Dec 2010

The European Financial Reporting Advisory Group (EFRAG) issued a feedback statement on the public consultation on its Proactive work.

The feedback statement provides a summary of the comments received, along with EFRAG's responses and proposed actions.

EFRAG Chairman, Françoise Flores, comments: "We were very encouraged by the response and have heard loud and clearly the message that we need to ensure that our proactive work is focused, practical and reaches the widest possible audience. Our ambition remains for Europe to be at the forefront of developments in financial reporting."

Click for EFRAG press release (link to EFRAG website) and the feedback statement (PDF 860k).

Notes from special December IASB meeting

01 Dec 2010

The IASB met in London on 1 December 2010 for IASB and FASB special meeting.

The FASB staff joined the meeting via teleconference. The topics discussed were as follows:
  • Scope — short-term trade receivables
  • Scope — individual financial instruments
  • Allocation of expected losses
  • Good book/bad book consideration

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the meeting. The next IASB meeting will be a special meeting on Income Taxes scheduled for 3 December 2010.

Islamic finance: Strengthening the global financial market

01 Dec 2010

At the 18th World Congress of Accountants (WCOA) 2010 in Kuala Lumpur in November 2010 Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, delivered a keynote address titled 'Islamic Finance: Strengthening the Global Financial Market'.

The Congress discussed the challenges to the industry in the aftermath of the recent financial crisis. The Shariah Board in Islamic financial institutions provides an extra layer of oversight, and Islamic finance has continued its global expansion during the financial crisis, expanding at an average annual rate of 20 per cent and representing one of the fastest growing segments in the financial industry.

On financial reporting, Dr Zeti observed that applying the existing accounting frameworks and conventions to Islamic financial institutions may prove to be more challenging given the unique features of Islamic financial transactions such as the equity based and profit sharing contracts. She commended the work done by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in enhancing cross-border comparability of Islamic financial transactions and urged the International Accounting Standards Board (IASB) to engage in the process. At the same conference, IASB Chairman Sir David Tweedie had noted Islamic Accounting as one of the possible issues for the IASB's agenda post-2011.

Click for Dr Zeti's keynote address (link to website of the Malaysian Institute of Accountants).

IPSASB issues annual improvements

01 Dec 2010

The International Public Sector Accounting Standards Board (IPSASB) has completed its improvements project for 2010 with the release of Improvements to IPSASs – 2010. .

The International Public Sector Accounting Standards Board (IPSASB) has completed its improvements project for 2010 with the release of Improvements to IPSASs – 2010.

The 2010 improvements amend existing International Public Sector Accounting Standards (IPSASs). The amendments consist of two parts:

  • Part 1 - amendments that are drawn from the IASB document, Improvements to IFRSs issued in April 2009
  • Part 2 - amendments that relate to inconsistent references to standards, terminology and structure resulting from IPSASB's general review of existing IPSASs.

The amendments generally apply to periods beginning on or after 1 January 2012 and may be early adopted. Click for IFAC press release (link to IFAC website).

We comment on proposals to amend the Due Process Handbook

30 Nov 2010

Deloitte has submitted a comment letter on the IFRS Foundation Trustees' Invitation to Comment, The Annual Improvements Process: Proposals to amend the Due Process Handbook for the IASB.

We support the efforts to enhance the process for making improvements to IFRSs, including amendments to IFRSs to clarify guidance and wording or to correct unintended consequences, conflicts or oversights. We think that the criteria proposed in the Consultation Document are appropriate when identifying discrete issues in IFRSs that need to be resolved. However, we recommend that the remit of the IFRS Interpretations Committee be broadened so it can prepare draft amendments to IFRSs (including Implementation Guidance) to help ensure that urgent or emerging accounting issues are identified and addressed in a timely and efficient manner. Click to Download our Comment Letter (PDF 57k). All of our past comment letters are here.

We comment on Draft IFRIC Interpretation DI/2010/1

30 Nov 2010

Deloitte has submitted a comment letter on Draft IFRIC Interpretation DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine.

The IFRS Interpretations Committee has reached the conclusion that costs associated with a stripping campaign' should be accounted for as an additional component of an existing asset, and that this component should be written down over the reserves that directly benefit from the campaign.

We do not support the finalisation of this draft Interpretation. Much of the current apparent diversity in practice tends to be due to the underlying physical differences in mines and we are not convinced that the current practice produces results that are sufficiently inappropriate to warrant the publication of a final interpretation. We are also concerned about the Committee attempting to address specific issues on extractive activities on a piecemeal basis rather than through the IASB project. Click to Download our Comment Letter (PDF 90k). All of our past comment letters are here.

Updated convergence report and IASB work plan

30 Nov 2010

The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have published an updated Progress report on their convergence efforts.

The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have published an updated Progress report on their convergence efforts.

The report provides an update on progress under the Memorandum of Understanding between the IASB and FASB on the convergence of IFRSs and US generally accepted accounting principles (US GAAP) and confirms many of the decisions made at recent meetings of the boards.

The report confirms a target completion date of June 2011 or earlier for the following priority projects:

  • joint projects on financial instruments, revenue recognition, leases, the presentation of other comprehensive income, and fair value measurement
  • IASB projects on consolidation and insurance contracts.

In order to meet the June 2011 deadline, consideration of a number of other projects has been deferred until after June 2011, or timetables extended. This includes four joint projects, the investment company aspects of the consolidation project, and a number of independent projects of both boards.

The IASB has updated its Work Plan to reflect the above changes and provide more detail of the expected timing of pronouncements. A summary of the expected timing under the revised work plan is provided below (all pronouncements are finalised standards, unless otherwise noted):

Pronouncements expected by the end of calendar 2010

Pronouncements expected in the first quarter of 2011

Pronouncements expected in the second quarter of 2011

Projects deferred to after June 2011

  • Joint projects deferred as noted in the progress report - financial statement presentation (comprehensive project), financial statements with characteristics of equity, emissions trading schemes, conceptual framework (reporting entity)
  • Other projects - liabilities (replacement for IAS 37), income taxes, rate-regulated activities, extractive activities, common control, earnings per share, government grants and intangible assets.

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