That was a few years ago now and Hoogervorst has now stepped up to the chairmanship of the IASB. But his ability to express the nub of the issue in clear, unequivocal and logical terms is unabated. The morning he took over the IASB chair he issued a statement which, in amongst many positive things, referred back to his time as Dutch Minister of Finance and as Chairman of the Dutch securities and market regulator. This is what he said: 'It was during this time that I developed a strong belief in the importance of transparency and openness in financial reporting. Indeed, during the crisis I spoke out in favour of maintaining the highest levels of transparency in financial reporting, much to the annoyance of those, (and there were many), who believed at the time that the accounting could be neutered in order to "protect" investors and the markets from being spooked'.

So it should have come as no surprise during his first public speech as IASB Chairman in Zurich in the same week, to find him making the same point. The accounting during the crisis may not have been perfect but using accountants as scapegoats for failures in the system was just not on. He constantly emphasised that the fatal flaws had been in economic standards rather than accounting standards, such as gaming the Basel capital ratios.

He talked of the priorities: revenue recognition, lease accounting, and financial instruments. All familiar sticking points in recent months but he engaged them with vigour. He signalled the publication of a consultation paper to look at what should be on the post-convergence agenda up ahead. And he underlined the way that future projects would be chosen: what was urgently required and what would be the best use of the IASB's resources.

And he treated the vexed issue of the US decision to go for IFRS or not with skill, charm and understanding. But he thought in the end it would be hard for the US, a member of the G20 nations which have repeatedly signed up to the idea of one global accounting language, not to do so. If a global language is to come about it is pretty well bound to be IFRS and if the US wants to remain a leader in international financial reporting then it would be hard to understand why they might want to go it alone. IFRS, he pointed out, had already linked the rising economic giants of the East with the longer established economies of the West. IFRS was all about economic growth and globalisation.

This was good persuasive stuff. And it was expressed with force and a smile. The Hoogervorst method, so familiar from the FCAG experience, was there: Explain the logic and leave no wriggle-room for those who propose a different, and lesser, answer.

Then, in answering a question, he took his style to a different level. He had touched upon the problem of impairment and the pressing issue of Greek government bonds during his speech. But in the questions afterwards the topic was opened up again. And it became clear that he felt that it was time for the EU to endorse IFRS 9, which has languished in the in-tray for a couple of years now. And the reason he was suggesting this should be done was not so that they could continue some tit-for-tat squabble over the technical issues involved. It was because, as he elaborated, it would be of enormous use in easing problems over Greek debt.

With that one single suggestion he elevated the debate to another plane and showed where the accounting high ground of the future would be situated. It was not going to be in the field of arcane technical matters, which only the technocrats would comprehend and then argue over them for months and years. The Hoogervorst future is at the heart of the widest economic and business issues. The global stature of the IASB will be reinforced further and take its place at the table where it will become even more obvious that financial reporting is at the heart of economic progress.

Robert Bruce
July 2011

Related links

• The IAS Plus Interviews — Hans Hoogervorst, New IASB Chairman (July 2011)
• The Bruce Column — Hans Hoogervorst and Ian Mackintosh: Some insights into their thinking (October 2010)
• Profile of Hans Hoogervorst
• Our financial instruments page
• Our global financial crisis page

The key changes concern

• allowing greater flexibility in measuring practical experience,
• permitting supervisors or mentors to direct an aspiring professional accountant's experience, and
• requiring practical experience to be recorded in a verifiable and consistent form.

Comments on the document close on 8 October 2011. Click for IAESB press release (link to the IFAC website).

Click for:

• The Bruce Column — Moving to centre stage

The IASB formed the FIWG in September 2004 to examine and question the fundamentals of IAS 39 within the context of the IASB's Framework, with the goal of "improving, simplifying, and ultimately replacing IAS 39" but it has not met since the beginning of December 2009 which is shortly after IFRS 9 was first published. That means the members of the FIWG only met to discuss phase I of the IASB's project for replacing IAS 39 (classification and measurement of financial assets), however, there has been no working group meeting so far during the phases II to IV.

Please click for FIWG Meeting Info on the IASB's Website.

A revised summary of the agenda for the meeting can be found here.

Global Publications

• New Global Insurance Webcast Continuing divergence and unavoidable delay - slides and a recording of the webcast are available on our Insurance project page
• IFRS Industry Insights: The Revenue Recognition Project — An update for the consumer business industry (PDF 83k). This publication provides an update on the Revenue Recognition project for the consumer business industry.

Deloitte (Australia)

• Monthly Roundup — June 2011 edition – Summary of financial reporting developments during June 2011

Deloitte (Canada)

• Pleins feux sur les IFRS — L'IASB publie une nouvelle norme sur la consolidation (PDF 71k) – French translation of IFRS in Focus — IASB issues new standard on consolidation
• Pleins feux sur les IFRS — L'IASB modifie la comptabilisation des avantages postérieurs à l'emploi (PDF 76k) – French translation of IFRS in Focus — IASB amends accounting for post-employment benefits

Deloitte (Hong Kong)

• HKFRS Financial Reporting Update – HKICPA issues new standards on consolidation, joint ventures and disclosures (PDF 193k)

Deloitte (Japan)

• Japanese translation of IFRS Industry Insights: The Revenue Recognition Project — An update for the telecommunications industry (Japanese, PDF 300k)
• Japanese translation of IFRS Industry Insights: Joint Arrangements in the Energy and Resources Industry (Japanese, PDF 323k)

Deloitte (United States)

• Heads Up — SEC Staff Publishes Observations on Interactive Data (XBRL) Submissions (PDF 107k)
• Accounting Roundup: Second Quarter in Review – 2011 (PDF 491k)

Click through for direct access to the notes for that particular topic:

Thursday 7 July 2011

• IAS 16 Property, Plant and Equipment – Accounting for production phase stripping costs in the mining industry
• Items for continuing consideration
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment: Use of IFRIC 6 by analogy
• Review of Tentative Agenda Decisions published in May IFRIC Update
  • IAS 16 Property, Plant and Equipment: Cost of testing asset
  • IAS 19 Employee Benefits: Defined contribution plans with vesting conditions
• New items for initial consideration
  • IFRS 3 Business Combinations: Common control transactions and business combinations involving newly formed entities
  • IAS 27 Consolidated and Separate Financial Statements: Group reorganisations in separate financial statements
  • IFRS 3 Business Combinations: Definition of a business

Friday 8 July 2011

• New items for initial consideration (continued)
  • IFRS 11 Joint Arrangements: Acquisition of an interest in a joint operation
  • IFRS 8 Operating Segments: Aggregation of operating segments and identification of the chief operating decision maker
• Administrative session
  • Committee work in progress
  • Review of statistics of the Committee's activity

Click here to go to the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

A Global Financial Reporting Dbriefs Webcast is scheduled to be held on Wednesday, 27 July 2011, discussing the unprecedented pace of standard-setting developments at the International Accounting Standards Board (IASB).

The topics to be covered include:

• The updated timeline for the issuance of new accounting standards
• The recent tentative decisions on the major convergence projects
• The new standard on Fair Value Measurements and revised standards on Post-employment Benefits and Presentation of Items of Other Comprehensive Income, with key insights for an effective transition.

Full details of the webcast are provided below:

Access to recordings and other materials from past webcasts is available on our IFRS Webcasts page.