August

IFRS in Focus newsletter highlights due process improvements from the IASB's Agenda Consultation process

02 Aug, 2011

Deloitte's Global Office has issued 'IFRS in Focus — IASB issues request for views on agenda consultation'.

The IFRS in Focus Newsletter provides an overview of the IASB's Agenda Consultation 2011 (see also our earlier story), noting the important enhancement it provides to the IASB's due processes:

 

The agenda consultation reflects that, for the first time in its history, the IASB is able to look at its agenda in a comprehensive and critical manner. In the past it has always been playing catch-up, dealing with inherited issues following IOSCO directives, the issues following European transition in 2005, the convergence issues with US Standard-setters and the financial crisis agenda. Now the IASB can set its own agenda based on the needs of stakeholders.

 

Click for IFRS in Focus — IASB issues request for views on agenda consultation (PDF 67k).

Emerging Economies Group established

02 Aug, 2011

On 26 July 2011, the Emerging Economies Group (EEG) of the International Accounting Standards Board (IASB) was established in Beijing. EEG founding members are all emerging economies from the G20 and Malaysia.

The establishment of the EEG by the IFRS Foundation is intended to further enhance the influence of emerging economies in the development process of IFRSs and is a response of the IASB to the G20 recommendation to introduce more involvement from emerging economies into its standard setting. The EEG's activities will mainly focus on pointing out specific issues from emerging economies to the IASB via a regular communication mechanism. The IASB believes this will strengthen the global acceptance of IFRSs and ultimately facilitate the IASB's mission to set up a single set of high quality global accounting standards.

The subject of the first EEG meeting was fair value measurement in emerging economies.

Please click for:

Stay Tuned Online – IFRS and UK GAAP update

01 Aug, 2011

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRSs and other financial reporting issues.

Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July, and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation. The topics covered in the July 2011 webcast:
  • Subsidiaries, associates and joint arrangements
  • Fair value measurement
  • IAS 1 and IAS 19
  • UK developments
  • Other IFRS developments

To access the recording click here. There is a permanent link on our UK Country Page.

Notes from the IASB special meeting on 28 July 2011

01 Aug, 2011

The IASB held a special meeting on 28 July 2011 in London.

We have posted Deloitte observer notes from the meeting (click through for direct access to the notes):

Thursday, 28 July 2011

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

IASB releases 'Effect Analysis' on joint arrangements

01 Aug, 2011

The IASB has published a report which presents an analysis of the effects of IFRS 11 Joint Arrangements (and related disclosures included in IFRS 12 Disclosure of Interests in Other Entities), including the IASB's expectations of how the IFRS will affect the accounting for current and new joint arrangements according to their structure and legal forms.

The report provides an overview of joint venture activity in various jurisdictions and industry sectors, outlines the effects of IFRS 11 on financial statements, provides a cost benefit analysis and compares IFRS 11 with US GAAP requirements.

The summary section of the report notes:

  • On the basis of the data gathered by the IASB, the IASB believes IFRS 11 will not lead to a change for a large number of the arrangements within the scope of the IFRS. This is because most joint arrangement activity is dealt with through arrangements that do not involve the establishment of an entity and, as a result, parties will continue recognising assets, liabilities, revenues and expenses arising from those arrangements as they did when applying IAS 31
  • The IASB expects that most of the arrangements structured through 'separate vehicles' will be 'joint ventures'
  • IFRS 11 will lead to changes for those entities currently using proportionate consolidation when accounting for joint ventures (the IASB estimates this is approximately half of the entities with interests in jointly controlled entities). To a lesser extent, IFRS 11 will also lead to changes for entities with interests in those jointly controlled entities that will be classified as 'joint operations' in accordance with IFRS 11 and that are currently being accounted for using the equity method
  • The IASB's assessment is that IFRS 11 will bring significant and sustained improvements to the reporting of joint arrangements, by reflecting the underlying economics of the arrangements and requiring disclosure of better information about an entity's involvement with joint arrangements
  • The IASB believes the improvements in terms of comparability and transparency outweigh the costs involved in applying IFRS 11. The most significant costs for preparers will occur at transition, due to the assessment of existing joint arrangements and explaining changes to users.

The IASB expects the report will useful to jurisdictions which prepare regulatory impact assessments as part of their process of adopting IFRS 11. Click for 'Effect analysis – IFRS 11 Joint Arrangements and disclosures for joint arrangements included in IFRS 12 Disclosure of Interests in Other Entities' (link to the IASB website, PDF 252k).

Conclusions of the July 2011 Trustees' meeting

01 Aug, 2011

The IFRS Foundation Trustees have posted to their website a summary of the conclusions of their quarterly meeting in New York on 13 and 14 July 2011.

Please click here to read the notes on the IFRS Foundation's website (PDF 207KB).
The IFRS Foundation Trustees met in public session and Deloitte observers attended these meetings. Their detailed notes have already been made available to you on 15 July 2011.

 

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