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October

Q&A report from recent Deloitte global financial reporting Dbriefs webcast

28 Oct 2011

On 18 October 2011, a Deloitte Dbriefs webcast on global financial reporting was held, entitled IFRS: Important Developments.

A 'Q&A Report' has been published containing a summary of audience questions submitted during the live webcast, together with suggested responses. Topics covered in the report include the IASB's projects on hedge accounting, revenue recognition, offsetting and investment entities, and the IASB's agenda consultation.

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Investor webcast by the IASB and the CFA Institute

28 Oct 2011

An investor webcast by the IASB and the CFA Institute will be held on 9 November 2011.

The IASB and the CFA Institute will discuss the IASB's first public agenda consultation, how the Board will decide what should be on its agenda and why investor input is crucial in that process.

Full details of the webcast are provided below:

Topic: Setting the IASB's Agenda for the Next Decade: Investor Update and Input Opportunity
Date and time: Wednesday, 9 November 2011
3:00pm GMT, which is 10:00am ET
More information and registration: Click Here

IFRS compliance, presentation and disclosure checklist for 2011

28 Oct 2011

Deloitte's IFRS Global Office has published the IFRS Compliance, Presentation and Disclosure Checklist for 2011. The checklist summarises the recognition, measurement, presentation and disclosure requirements set out in IFRSs in issue as of 30 June 2011.

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Remarks by IASB Chairman Hans Hoogervorst at the IFRS Conference: Latin America and the Caribbean

27 Oct 2011

On 27 October 2011, IASB Chairman Hans Hoogervorst addressed the IFRS Conference: Latin America and the Caribbean, in Sao Paulo, Brazil.

In his speech, he discussed the prospects for global accounting standards, Latin American adoption of IFRS, and the agenda and priorities of the IASB.

In regards to the prospects for global accounting standards, Chairman Hoogervorst commented that global accounting standards are needed to protect investors in a global financial market. He said that while IFRSs is now required or permitted to be used in many countries, there are a few important jurisdictions that have not adopted IFRSs, such as the United States, Japan, India and China. However, he believes its not a matter of "if" these jurisdictions will move to IFRSs, but of "when" and "how" it will occur.

Next on Latin American adoption of IFRS, Hoogervorst commented that full adoption of IFRSs is the right step to take and noted Brazil as "a textbook example of how to adopt". By accepting IFRSs fully "Brazilian companies are able to raise capital on markets across Asia, Europe and the Americas—including the United States. . . . The risk premium associated with unfamiliar financial reporting requirements is eliminated, thus reducing the cost of capital and attracting greater inward investment."

In conclusion, Hoogervorst discussed the future agenda and the four immediate priorities of the IASB in the coming year. First, the remaining convergence projects with the FASB need to be completed. He mentions that there will be revised proposals for both leasing and revenue recognition in the months ahead with the goal of completing these projects in 2012. He also mentions that the boards are working on a joint approach to financial instruments and insurance contracts. Second, the chairman gave a brief remark on the development of the IASB's post-convergence agenda, specifically the agenda consultation process aimed to solicit feedback to the IASB. The third priority of the IASB is to get the remaining jurisdictions to adopt IFRSs. Lastly, he says the IASB will work with those impacted by the IASB's work and "ensure that they have a sense of ownership and respect for the product that we are developing for investors globally."

Click for the speech transcript (PDF 361k, link to IASB website).

Initial organisations participating in integrated reporting pilot announced

26 Oct 2011

The International Integrated Reporting Committee (IIRC) has announced that over 40 companies from around the world have been chosen as the initial participants in the IIRC Pilot Programme Programme, with further participants expected.

The Pilot Programme is designed to run over a two year period and will involve a group of organisations who will work as a peer group network, exchanging knowledge and sharing experiences and participating in the development of the International Integrated Reporting Framework envisaged in the IIRC's Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century (see our earlier story).

The initial participants in the programme include a variety of organisations from many geographical regions (including Deloitte):

Pilot companyCountrySector
AB Volvo – Volvo Group Sweden Automobiles
Association of Chartered Certified Accountants United Kingdom Accounting
Aegon Group The Netherlands Financial Services
Akzo Nobel N.V. The Netherlands Chemicals
ARM Holdings plc United Kingdom Technology Hardware & Equipment
Atlantia S.p.A. Italy Industrial Goods & Services
BBVA Spain Banks
BWise b.v. The Netherlands Industrial Goods & Services
Chartered Institute of Building, The United Kingdom Professional Organization
Cliffs Natural Resources United States of America Basic Resources
CLP Holdings Limited China Utilities
CNDCEC Italy Accounting
DANONE France Food & Beverage
Deloitte LLP United Kingdom Accounting
Deloitte Netherlands The Netherlands Accounting
Diesel & Motor Engineering PLC Sri Lanka Industrial Goods & Services
Edelman United States of America Media
EnBW Energie Baden-Württemberg AG Germany Utilities
Enel Italy Electricity
eni S.p.A. Italy Oil & Gas
Eskom Holdings SOC Limited South Africa Utilities
Flughafen München GmbH Germany Industrial Goods & Services
Gold Fields South Africa Basic Resources
HSBC Holdings plc United Kingdom Banks
KPMG International Switzerland Accounting
LeasePlan Corporation N.V. The Netherlands Financial Services
Marks and Spencer Group plc United Kingdom Retail
mecu Limited Australia Banks
Microsoft Corporation United States of America Technology
N.V. Luchthaven Schiphol The Netherlands Industrial Goods & Services
National Australia Bank Limited Australia Banks
Natura Cosméticos Brazil Personal & Household Goods
Novo Nordisk Denmark Health care
PriceWaterhouseCoopers N.V. The Netherlands Accounting
Prudential Financial, Inc. United States of America Financial Services
Randstad Holding N.V. The Netherlands Industrial Goods & Services
State Nuclear Energy Corporation ROSATOM Russian Federation Utilities
Stockland Australia Real Estate
Takeda Pharmaceutical Company Limited Japan Health care
The Coca-Cola Company United States of America Food & Beverage
Vancity Canada Banks
Vestas Wind Systems Denmark Oil & Gas
Via Gutenberg Consultoria  em Entretenimento e Cultura Ltda Brazil Industrial Goods & Services
Click for IIRC press release (link to IIRC website).

Deloitte podcast on sustainability

26 Oct 2011

A new global Deloitte podcast explores sustainability reporting issues, building on the themes discussed in the recently issued publication 'Sustainability 2011 — A difficult coming of age'

In the podcast, Nick Main (Deloitte Global Leader for Sustainability & Climate Change Services) and Valerie Chort (National Leader of Corporate Responsibility and Sustainability, Deloitte & Touche LLP), offer their perspectives on the report, including such topics as some of the primary drivers of business engagement in the sustainability agenda, the progression of standards development in sustainability over the next 5-10 years, and the most significant downsides to not addressing the sustainability challenges, both for governments and for companies.

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Special IASB meetings in early November

26 Oct 2011

Following the joint meeting of the IASB and the ASBJ on 31 October - 1 November, the IASB will hold a special IASB meeting of the afternoon of 1 November 2001 (13:00-15:00).

The topic to be discussed is Leases. There will also be a special IASB meeting on 7 November 2011. An agenda has not yet been announced.

 

IAASB begins post-implementation review of clarified auditing standards

26 Oct 2011

The International Auditing and Assurance Standards Board (IAASB) has released a plan for a post-implementation review of the clarified International Standards on Auditing (ISAs).

The International Auditing and Assurance Standards Board (IAASB) has released a plan for a post-implementation review of the clarified International Standards on Auditing (ISAs).

The post-implementation review is the second phase of the IAASB's efforts to monitor the implementation of these standards, following the release of a progress report in November 2010. The primary objective post-implementation review is to gather information about the use of the clarified ISAs to assist the IAASB to determine what, if any, changes are needed:

  • in order to increase the consistency of practitioners' understanding of the ISAs
  • for the revised ISAs covered by the review to achieve the IAASB's goals in revising them in an efficient and effective manner.

The review is focused on whether the clarified ISAs are being consistently understood and implemented in a way that achieves the IAASB's goals in revising and redrafting them, rather than revisiting whether the clarified ISAs need to be further enhanced to achieve audit quality (although any such changes identified during the review will be considered by the IAASB).

The IAASB aims to gather information during 2012, summarise the information received in early 2013, and present the findings at the June 2013 IAASB meeting for discussion. This timing will assist the IAASB in determining its priorities for 2014 and its next three year strategic planning cycle (2015—2017).

Input for the purpose of the review is requested by the IAASB no later than 31 October 2012. Click for IAASB press release (link to IFAC website).

European Commission presents package of measures to support entrepreneurship and responsible business

26 Oct 2011

A responsible approach to business means more, and more sustainable, economic growth.

This is why the European Commission has presented a package of measures to support entrepreneurship and responsible business.

First, the Social Business Initiative is intended to help this emerging sector to fulfil its unexploited potential. This is complemented by an ambitious strategy for Corporate Social Responsibility to generate a higher level of trust and consumer confidence and improve companies' contribution to society's well-being. Both initiatives reinforce Commission efforts to engage with the private sector on social and environmental issues, especially relevant in times of public budget constraints.

The Commission is also proposing to improve transparency and promote sustainable business among multinationals. Mining and forestry companies would have to be more open about taxes, royalties and bonuses paid worldwide.

Finally, the Commission is proposing to simplify accounting rules for SMEs, potentially saving them up to 1.7 billion per year. The proposals would also reduce burdensome reporting obligations for listed companies, including SMEs, adding further to cost savings.

The proposals for revising the Accounting Directives and the Transparency Directive will now be passed on to the European Parliament and the EU's Council of Ministers for adoption. The Communication on Social Entrepreneurship forms the starting point for a number of legislative and non-legislative initiatives that are to be rolled out over the next two years. There will be a first opportunity to discuss them with stakeholders at the Conference on Social Economy and Social Business hosted by the Commission on 18 November 2011 in Brussels.

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Proposed amended requirements for breaches of the Code of Ethics for Professional Accountants

25 Oct 2011

The International Ethics Standards Board for Accountants (IESBA) has released for comment 'Proposed Changes to the Code of Ethics for Professional Accountants Related to Provisions Addressing a Breach of a Requirement of the Code'.

The proposals result from a project the IESBA agreed to undertake in response to a letter submitted to the IESBA by the International Organization of Securities Commissions (IOSCO) in response to an IESBA Exposure Draft issued in July 2008, which proposed new drafting conventions for the Code of Ethics for Professional Accountants (the Code).

The exposure draft proposes:

  • to introduce a modified requirement that a professional accountant take whatever actions that might be available as soon as possible to satisfactorily address the consequences of a breach of a provision of the Code and to determine whether to report the breach to those who may have been affected by the breach
  • in relation to independence requirements for audits, to require a firm to determine whether termination of the audit engagement is necessary or whether action can be taken to satisfactorily address the consequences of a breach such that the firm can still issue an audit opinion
  • to require documentation of all identified breaches, the actions taken with respect to the breaches, and all matters discussed with those charged with governance and, if applicable, with relevant regulators.

The IESBA proposes that the changes be effective for breaches identified on and after 1 January 2013.

The Consultation Paper is open for public comment until 23 January 2012. Click for IESBA press release (link to IFAC website).

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