May

Notes from May IFRS Interpretations Committee meeting

06 May, 2011

The IFRS Interpretations Committee met in London on 5-6 May 2011. We have posted Deloitte observer notes from the topics discussed at the meeting, as follows (click through for direct access to the notes for that particular topic):

Thursday 5 May 2011

Friday 6 May 2011

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

GRI starts work on updated sustainability reporting guidelines, issues new proposed sector supplements

06 May, 2011

The Global Reporting Initiative (GRI) has recently announced a number of new developments.

The Global Reporting Initiative (GRI) publishes a 'Sustainability Reporting Framework', widely used by entities in reporting on their sustainability performance. The Framework includes Sustainability Reporting Guidelines (currently in their third version, or "G3 Guidelines") which entities can follow in preparing sustainability reports.

The GRI has recently announced:

  • Commencement of the process of developing the fourth generation of the Sustainability Reporting Guidelines ("G4"). The GRI is seeking comments on GRI's current guidance and suggestions for new topics for G4, and hopes to publish a draft of the guidelines in August 2011. Click for announcement (link to GRI website)
  • A second draft of the 'Media Sector Supplement', a tailored version of the G3 Guidelines for the media sector. Feedback on the second draft closes on 4 August 2011. Click for announcement (link to GRI website)
  • The final public comment period for the 'Oil and Gas Sector Supplement', a tailored version of the G3 Guidelines for the sector. Feedback closes on 420 July 2011. Click for announcement (link to GRI website).

 

The darkening glass – Study on translation questions and IFRSs

05 May, 2011

The Institute of Chartered Accountants of Scotland (ICAS) has posted to its website a study on translation issues in connection with IFRSs. The authors explore the question whether a truly global accounting system is possible considering the fact that translations into different languages and ways of thinking are necessary to achieve this.

The study revealed the following results:

  • Translation is not impossible. The impact of translation problems can be reduced with the help of translation strategies and solutions.
  • Exact equivalence is impossible. Especially when concepts have to be translated that are not part of an (accounting) culture the results will seldom be meaningful.
  • Some translation problems are caused by different language structures.
  • Different language families will have different translation problems.
  • Official translations (e.g. by the European Commission) can vary from official translations by the IFRS Foundation.
  • Some translation strategies (e.g. omitting or adding words for clarification) might give rise to concerns by standard setters or regulators.

The authors of the study arrive at the following conclusions:

  • Standard setters must be aware of translation difficulties and should consider them if possible when drafting standards.
  • Translating principles might be more difficult than translating rules.
  • Everybody must be aware of the limits of translation.
  • Some slight differences between original text and translation will always remain.
  • Translators must not only have an excellent knowledge of source language and target language, but also of source accounting culture and target accounting culture.
  • Accounting educators must be aware of the difficulties of understanding translated concepts.

Please click for the full text of the study on the ICAS website.

Notes from the special 4 May IASB-FASB meeting

05 May, 2011

The IASB and FASB held a meeting in London on 4 May 2011. We've posted Deloitte observer notes from the meeting (click through for direct access to the notes for each topic):

The IASB and FASB held a meeting in London on 4 May 2011. We've posted Deloitte observer notes from the meeting (click through for direct access to the notes for each topic):

Wednesday, 4 May 2011

  • Insurance Contracts
    • Background material on unbundling
    • Unbundling goods and services
    • Unbundling investment components

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

European event on considering the effects of accounting standards – programme available

05 May, 2011

As reported earlier, the European Financial Reporting Advisory Group (EFRAG) and the UK Accounting Standards Board (ASB), along with the European Commission (EC), are hosting an event on 16 May in Brussels as a follow up to their Discussion Paper Considering the Effects of Accounting Standards published in January 2011. The programme for this event is now available.

Please click for the announcement on the EFRAG's website. Registration as a participant is still possible (until 9 May).

 

Agenda for May IASB-FASB special meeting on 11-12 May 2011

05 May, 2011

The IASB and FASB are holding a special joint meeting in London on 11-12 May 2011.

You can access the agenda on our May 2011 IASB meeting page.  We will also post Deloitte observer notes on this page as they are available.

Climate Disclosure Standards Board responds to financial institutions research

04 May, 2011

The Climate Disclosure Standards Board (CDSB) has published a report entitled Financial Institutions, Taking Greenhouse Gas Emissions into Account.

The report was commissioned and funded by the UK Department of the Environment, Food and Rural Affairs (DEFRA). The report is part of DEFRA's research into the contribution that greenhouse gas reporting makes to the UK achieving its climate change objectives. The report presents the results of an investigation into how financial institutions take account of environmental considerations in making investment decisions.

The report recommends reporting policies should be introduced requiring, at the minimum:

  • Companies to disclose their carbon emissions strategies and management programmes
  • Relevant information disclosures to be audited in the same way as are company financial reports
  • Financial institutions of all types to disclose the adjudged effect of taking environmental considerations into account on portfolio risk levels.

The Climate Disclosure Standards Board (CDSB) was formed at the 2007 annual meeting of the World Economic Forum in response to increasing demands for standardised reporting guidelines on the inclusion of climate change information in mainstream reports. One of the responses the CDSB intends is to develop its existing Climate Change Reporting Framework to further align with accounting models with which organisations and investors are already familiar. As quoted in the paper "It is difficult to comprehend something that is not in companies' accounting models".

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Roundtables on Trustee strategy review – Registration for webcasts now open

04 May, 2011

As reported earlier, The Trustees of the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), published a report on the strategy of the IFRS Foundation as it enters its second decade.

The Trustees welcome comments by 25 July 2011 and will hold strategy review roundtables on 7 June in Tokyo, 8 June in Hong Kong, 13 June in New York, and 21-22 June in London. Registration for these roundtables is now possible. Please go the IASB website for registration and further information.
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Guide to corporate ecosystem valuation released

04 May, 2011

The World Business Council for Sustainable Development (WBCSD) has launched a Corporate Ecosystem Valuation (CEV) Guide.

The Economics of Ecosystems and Biodiversity study (TEEB) introduced the concept of ecosystem valuation as a practical and influential aid to decision-making (see our earlier story). Going forward, ecosystem valuation is expected to be more consistently incorporated into public policies, regulations, and political decisions. Ecosystem values are also expected to be increasingly considered by the finance sector and business-to-business customers as they assess the biodiversity and ecosystem-related risks and opportunities of investments and supply chains.

The CEV Guide to Corporate Ecosystem Valuation is designed to "operationalise" TEEB's key messages and recommendations by providing a practical approach for their effective application at the company level.

The International Integrated Reporting Committee (IIRC) is working towards presenting an integrated reporting proposal to the G20 later in 2011 and the work of TEEB and the WBCSD may complement the proposals presented.

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Notes from the special April IASB-FASB meeting – Session on insurance contracts

03 May, 2011

The IASB and FASB held an additional meeting in London on 27 April 2011. We've now posted Deloitte observer notes on the insurance contracts discussion of the meeting (click through for direct access to the notes the topic):

Wednesday, 27 April 2011

  • Insurance Contracts (IASB/FASB joint meeting)
    • Eligibility requirements
    • Discounting of the pre claims obligation
    • Treatment of acquisition costs
    • Premium allocation patterns and onerous contract test

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

Correction list for hyphenation

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