2011

ESMA Consultation Paper on materiality

10 Nov, 2011

The European Securities and Markets Authority (ESMA) has published a consultation paper entitled Considerations of materiality in financial reporting.

The apparent differing views regarding the practical application of the concept of materiality amongst preparers, auditors, possibly users of the financial reports and, in some instances, accounting enforcers is a recurring theme of discussions at the European Enforcers Coordination Sessions (a forum in which all European National Enforcers of financial information meet to exchange views and discuss experiences of enforcement of IFRS). ESMA has therefore decided to publish a consultation paper in order to seek comments from interested parties on their understanding of various aspects of materiality in an effort to contribute to a consistent application of this important concept in financial reporting.

The consultation paper is structured around the chapters IFRS provisions, Characteristics of Primary Users and the Objective of Financial Reports, Attributes of the information, Errors, omissions and misstatements and aggregation, Note disclosures, and Interim reports - each with detailed analyses and questions. An annex to the paper (Annex II) provides a list of IFRS references to materiality and a list of selected references to users of financial statements in IFRS.

Responses to the consultation paper should be submitted by 29 February 2012.

Please click for:

DPOC publishes working draft of protocol for due process oversight

10 Nov, 2011

The IFRS Foundation Trustees' Due Process Oversight Committee (DPOC) has posted to their website a working draft of a protocol for due process oversight.

This document creates a framework for the Trustees to use when (1) reviewing the effectiveness of due process and (2) monitoring the IASB's compliance with due process.

The DPOC will publish a final draft of the operating protocol in 2012 for public comment, along with proposed enhancements to the Due Process Handbook.

Please click here to view the working draft on the IASB's website.

Summary of the October 2011 Trustees' meeting

10 Nov, 2011

The Trustees of the IFRS Foundation have announced the conclusions of their meeting in Paris, France on 13 October 2011.

The Trustees discussed their own regional outreach activities, especially in Europe, and received reports of the Chair of the IASB and the Chair of the IFRS Advisory Council. They also reviewed feedback received in response to the publication of the preliminary conclusions of the Trustees’ strategy review.

The Trustees also discussed the progress made in relation to the appointment of a new Chair of the IFRS Foundation Trustees. A shortlist of candidates has been agreed by the Trustees and the Monitoring Board and the candidates were interviewed in the third quarter of 2011. The Trustees will now submit their preferred candidate for approval by the Monitoring Board.

Please click here to read the summary on the IFRS Foundation's website. An audio recording of the meeting can be accessed by clicking here.

ESMA publishes 'Review of European enforcers on the implementation of IFRS 8'

10 Nov, 2011

The European Securities and Markets Authority (ESMA) has released a Report on its post-implementation review of IFRS 8 Operating Segments.

The Report discusses the application of IFRS 8 requirements by European issuers, and explores the areas posing significant challenges to investors, preparers and/or enforcers. The Report also provides ESMA’s tentative recommendations to enhance the application of the standard.

The conclusions reached by European enforcers in the Report are that '(i) the implementation of IFRS 8 resulted in a fairly similar level of information compared to its predecessor IAS 14 and that (ii) there is homogeneity in the issues faced by European enforcers when enforcing this standard. This stems from a combination of weaknesses in the standard and a failure to fully comply with its requirements by issuers.'

Please click here to read the Report on the ESMA website.

IASB issues response to G20 conclusions

09 Nov, 2011

The IASB has released an updated response to the conclusions reached at the G20 Leaders Summit held in Cannes, France on 3-4 November 2011.

In the response document, the IASB details its progress in the following areas:

  • Completed its review of off balance sheet financing
  • Completed its reform of fair value measurement requirements
  • Completed the first phase of the reform of financial instruments accounting
  • Completed the majority of projects described by its Memorandum of Understanding with the FASB
  • Significantly enhanced its outreach and stakeholder engagement activities

Click for Update of response to G20 conclusions (link to the IASB website).

Notes from the special November IASB meeting

08 Nov, 2011

The IASB held a supplemental meeting on 7 November 2011 in London. We have posted Deloitte observer notes from the meeting.

Click through for direct access to the notes:

Monday, 7 November 2011

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting. The next IASB meeting is scheduled to occur on 15-16 November 2011.

IFRS Illustrative Financial Statements for 2011

08 Nov, 2011

Deloitte's Global IFRS Office has released International Financial Reporting Standards — Model financial statements with no early application.

These model financial statements illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) for the year ended 31 December 2011 by an entity that is not a first-time adopter of IFRSs. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard.

The model financial statements illustrate the impact of a number of new and revised Standards and Interpretations that are mandatorily effective on 1 January 2011. However, they do not illustrate the impact of early adoption of new and revised Standards and Interpretations that are not yet mandatorily effective on 1 January 2011 (e.g. IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities).

Click for IFRS Model Financial Statements for 2011 (without early application) (PDF file, 1,506k)

Conclusions of the Trustees' Due Process Oversight Committee meeting

08 Nov, 2011

The IFRS Foundation Trustees' Due Process Oversight Committee (DPOC) has posted to their website a summary of the conclusions of their meeting on 11 October 2011.

The committee discussed:

  • Development of a protocol for due process oversight
  • Post-implementation review planning
  • Agenda consultation
  • Review of the IFRS Interpretations Committee
  • Correspondence with third parties
  • Due process oversight of standards
  • Oversight of XBRL activities
  • Interaction with national and regional accounting standard-setters

Please click here to read the notes on the IFRS Foundation's website.

Reappointment of three Trustees of the IFRS Foundation

08 Nov, 2011

The Monitoring Board of the IFRS Foundation has approved the reappointment of three IFRS Foundation Trustees.

  • Clemens Börsig (Europe),
  • Robert Glauber (Vice-Chairman and acting Co-Chairman of the Trustees, North America) and
  • Noriaki Shimazaki (Asia-Oceania).

Their respective terms will now expire in December 2014. Please click for an updated list of all Trustees of the IFRS Foundation. The IFRS Foundation has published a short press release (link to IASB website).

IIRC to hold webcast on integrated reporting

08 Nov, 2011

The International Integrated Reporting Committee (IIRC) is holding a webcast on integrated reporting on 15 November 2011.

The webcast will start at at 08:00am GMT and will last for one hour.

Topics will include an overview of the rationale behind the move towards integrated reporting, initial proposals for the development of an International Integrated Reporting Framework, and the next steps towards its creation and adoption.

Click for more information and registration (link to webcast registration).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.