A Brussels event will be organised by EFRAG and the European Commission. The purpose of the events is stimulating debate in Europe and collecting European views. Please click for more information in the EFRAG press release (link to EFRAG website).

"At the beginning of the crisis, in 2007 and 2008, a lack of transparency regarding exposures to subprime mortgages created a situation of uncertainty about the financial positions of banks," Maijoor says in his speech and continues "in the more recent months of the financial crisis a lack of transparency from banks on their exposures to sovereign debt and related instruments are generating new suspicions about the conditions of individual banks."

Transparency on financial performance and positions will restore trust into markets and banks, Maijoor claims, and IFRSs have contributed to both the quality and quantity of the information provided as part of the financial statements presented by listed companies. However, IFRSs need to be applied correctly to serve the end of transparency, and national supervisory authorities and ESMA have to and will ensure consistent enforcement across the EU.

As you will understand, we are currently looking at how banks are applying IFRS for the valuation of sovereign debt. It is very important for ESMA that financial institutions apply IFRS correctly, and are consistent in their valuations of sovereign debt exposures. This especially holds for the upcoming annual financial statements.

In July 2011, ESMA published a public statement on disclosures related to sovereign debt to be included in IFRS financial statements.

Click for:

• full text of Steven Maijoor's speech (link to ESMA website)
• IAS Plus overview of accounting developments in Europe

 

In August 2011 the IASB issued the Exposure Draft Investment Entities. The ED provided criteria and guidance to determine whether an entity is an investment entity. The draft proposed that an investment entity measure its investments in controlled entities at fair value through profit or loss in accordance with IFRS 9 Financial Instruments.

EFRAG believes that the parent of an investment entity should be permitted to retain the fair value accounting that is applied by its investment entity subsidiary to controlled entities. EFRAG also encourages IASB to carry out an impact assessment to better understand better the practical implications of any amendments to IAS 28 Investments in Associates and Joint Ventures.

Please click for EFRAG's press release containing a link to the draft comment letter (link to EFRAG website).

The agenda for the meeting is set out below.

IFRS Advisory Council Meeting Agenda 10-11 October 2011, London

Monday, 10 October 2011 Welcome and Chairman’s preview Overview of last four months IASB activities (financial instruments, insurance contracts, leases and revenue recognition) Trustees review of the IFRS Interpretation Committee Trustees due process oversight committee Trustee strategy review and Monitoring Board review Raising the profile of the Council / working with the Trustees The IASB’s agenda consultation How to deal with the conceptual issues at stake at the present juncture Tuesday, 11 October 2011 Insurance contracts Revenue recognition XBRL update World Bank review of standards IFRS 'branding' IFRS Foundation education activities

Click for access to the full agenda and agenda papers (link to IASB website).

This guide is a two-volume set of all IFRSs and IASs issued by the IASB at 1 July 2011, with cross-references and other annotations added for references to other IFRSs, including IASs and IFRIC and SIC interpretations. The guide also includes illustrative examples, implementation guidance, bases for conclusions and dissenting opinions published in appendices to the IFRSs. This two-volume guide may be purchased for £90 plus shipping on the IASB's Website. Discounts are available for bookshops/agents, multiple copies, students/academics and residents of middle and low income countries.

You will find more information and ordering details here.

Mr Seidenstein joined the (then) IASC Foundation in 2000 and has managed the operation of the Foundation, work related to strategy, governance and policy, and financing.

 

The Trustees have begun a search process for his successor, who will have the title of Executive Director. Click for press announcement (link to IASB website).

In December 2010, the IASB issued amendments to IAS 12 introducing a rebuttable presumption that an asset is recovered entirely through sale unless the entity has clear evidence that recovery will occur in another manner. In September 2011, the Interpretations Committee received a request to clarify whether the list of cases in which that presumption can be rebutted is exhaustive.

The Interpretations Committee decided not to add this item to its agenda arguing that IAS 12 is sufficiently clear and that diversity in practice on the rebuttal of the presumption should not emerge. However, the rejection notice also contains guidance on the subsequent accounting if the presumption is rebutted.

EFRAG therefore believes that the rejection notice is in effect an interpretation. In EFRAG's view, rejection notices should not be written as though they were authoritative guidance and should not result in a change in accounting practice.

Please click for EFRAG's press release containing a link to the draft comment letter (link to EFRAG website).

EFRAG is in particular looking for candidates from Central and Eastern Europe and for candidates with a user background. The deadline for candidates to submit their candidatures has now been extended until 10 October 2011.

Please click for more information on the EFRAG website.