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September

European Outreach Meetings on the IASB Agenda Consultation

30 Sep 2011

The European Financial Reporting Advisory Group (EFRAG), in partnership with European National Standard Setters, will organise outreach events on the IASB consultation on its future work programme published in July 2011. The events will be held throughout Europe in October and November.

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).

Speech of ESMA Chair on transparency touches on the valuation of sovereign debt

30 Sep 2011

In a speech entitled Market Transparency – Does it prevent crisis? given at the Austrian Financial Market Authority Supervision Conference in Vienna, Steven Maijoor, Chairman of the European Securities and Markets Authority (ESMA), spoke about similarities between the credit crunch and the current European sovereign debt crisis and how transparency can be an answer to the lack of trust in banks and markets. .

"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:

 

IASB provides update on expected release of documents in the coming months

30 Sep 2011

The IASB has announced more definitive timing of the expected release of documents from a number of its current projects.

In a work plan update provided in the most recent IASB Update, the IASB notes the expected timing as follows:

Expected timingPronouncements to be issued
Mid-October 2011
  • Release of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (summary of draft Interpretation)
  • Narrow-scope exposure draft amending IFRS 1 First-time Adoption of International Financial Reporting Standards to allow for the prospective application of paragraph 10A of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance for first-time adopters (project summary)
November 2011
December 2011
First quarter 2012

The update does not extend to other projects for which pronouncements may be issued before the end of 2011 under the previously announced work plan, e.g. financial instruments impairment and insurance contracts.

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Upcoming Dbriefs webcast: Important IFRS Developments

29 Sep 2011

A Global Financial Reporting Dbriefs Webcast is scheduled to be held on Tuesday, 18 October 2011, discussing the unprecedented pace of standard-setting developments at the International Accounting Standards Board (IASB).

The topics to be covered include:

  • The IASB's timeline for the issuance of exposure drafts and new accounting standards
  • An update on the revenue recognition project
  • Recent developments including the issuance of the IASB's agenda consultation and the exposure draft on investment entities.

Full details of the webcast are provided below:

Topic: IFRS: Important Developments
Date and time: Tuesday, 18 October 2011
9:00-10:00am London time (GMT +1), which is 4:00-5:00pm Hong Kong Time (GMT +8)
Host: Randall Sogoloff, Leader – Global IFRS Communications
Presenters: Philip Barden, Partner – UK IFRS Centre of Excellence
More information: Click here
Registration: Click here

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

EFRAG draft comment letter on the IASB's ED Investment Entities

29 Sep 2011

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on IASB's ED Investment Entities.

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).

Agenda for IFRS Advisory Council Meeting

29 Sep 2011

The IFRS Advisory Council is meeting in London on 10-11 October 2011.

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).

Guide through IFRSs 2011

28 Sep 2011

The IFRS Foundation has published A Guide through International Financial Reporting Standards IFRSs July 2011.

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.

'Changing of the guard' continues with resignation of IFRS Foundation COO

28 Sep 2011

The Trustees of the IFRS Foundation have announced that Tom Seidenstein, Chief Operating Officer of the IFRS Foundation, will step down from his role at the end of the year in order to return to the United States.

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).

EFRAG draft comment letter on the Interpretations Committee's tentative agenda decision on IAS 12

27 Sep 2011

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on the Interpretations Committee's tentative rejection decision on IAS 12 Income Taxes.

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).

Call for EFRAG TEG Applicants — deadline for submissions extended

27 Sep 2011

The present mandate period for seven of the twelve members of EFRAG's Technical Expert Group (EFRAG TEG) expires on 31 March 2012. In order to fill the vacancies, EFRAG is looking for candidates from a wide range of backgrounds and geographical origins and welcomes all applications.

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.

 

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