January

Updated EFRAG 'endorsement status report'

23 Jan, 2012

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments.

Click to download the Endorsement Status Report as of 20 January 2012 (PDF 191k).

Currently, the following 14 IASB pronouncements await endorsement action:

  • IFRS 9 Financial Instruments
  • IFRS 10 Consolidated Financial Statements
  • IFRS 11 Joint Arrangements
  • IFRS 12 Disclosures of Interests in Other Entities
  • IFRS 13 Fair Value Measurement*
  • IAS 27 Separate Financial Statements (2011)
  • IAS 28 Investments in Associates and Joint Ventures (2011)
  • Amendments to IAS 12 Deferred tax: Recovery of Underlying Assets*
  • Amendments to IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters*
  • Amendments to IAS 1 Presentation of Items of Other Comprehensive Income
  • Amendments to IAS 19 Employee Benefits
  • Amendments to IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities#
  • Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities#
  • IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine*

* Indicates EFRAG has issued its final endorsement advice for this pronouncement since the previous report, final steps to endorsement will now proceed.

# Added since previous report

You can always find the endorsement status report here.

IFRS Foundation issues exposure draft of updated XBRL taxonomy

20 Jan, 2012

The IFRS Foundation has published an exposure draft of the IFRS Taxonomy 2012. The proposed taxonomy is consistent with IFRSs, including IASs and the IFRS for SMEs.

The IFRS Taxonomy 2012 is a translation of IFRSs as issued at 1 January 2012 into XBRL (eXtensible Business Reporting Language).

The proposed taxonomy includes 'common practice' extensions, which were derived from an analysis of IFRS financial statements and are designed to diminish the need for preparers to customise the taxonomy to fit their individual business. The need for these extensions originally arose from United Statements Securities Exchange Commission (SEC) concerns about the suitability of the existing IFRS taxonomy for US filing purposes and the outcomes of a pilot XBRL study conducted in 2011.

The proposed taxonomy is open for comment until 17 March 2012. Click for more information (link to IASB website). The United States Financial Accounting Standards Board (FASB) has also recently announced the 2012 US GAAP taxonomy.

Change of date for investment entities roundtable in Norwalk

20 Jan, 2012

The International Accounting Standards Board (IASB) has announced a change of date for the upcoming roundtable on investment entities to be held in Norwalk, CT.

The roundtable will now be held on Friday 16 March 2012 (9:00am-12:30pm EST), it was previously scheduled for 20 March 2012. The deadline for registration for the roundtable was also brought forward to 24 February 2012 (previously 28 February 2012).

Click for more information (link to IASB website). See also our original story about the roundtables with details of dates and registration deadlines for all roundtables.

EFRAG draft comment letter on IFRS 10 transition guidance

19 Jan, 2012

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on IASB Exposure Draft ED/2011/7 'Transition Guidance (Proposed amendments to IFRS 10)'.

The proposed amendments address the transition guidance in IFRS 10 Consolidated Financial Statements by clarifying when retrospective application is required.

EFRAG is supportive of the proposed amendments because they provide clear and consistent guidance on the transition requirements of IFRS 10. EFRAG also agrees with the ED's trade-off between preparer costs and user benefits.

Comments on the letter are invited by 9 March 2012. The draft comment letter can be downloaded via the press release on EFRAG's website.

See our previous story on IASB Exposure Draft ED/2011/7 Transition Guidance (Proposed amendments to IFRS 10).

Notes from the January IFRS Interpretations Committee meeting

18 Jan, 2012

Deloitte observer notes are now available from the IFRS Interpretations Committee meeting held in London on 17–18 January 2012.

The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):

Tuesday 17 January 2012

Wednesday 18 January 2011

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

IASB releases agenda for its January meeting

17 Jan, 2012

The IASB will be holding its January 2012 meeting on 25-27 January 2012, much of it a joint meeting with the FASB.

You can access the agenda on our January 2012 IASB meeting page.  We will also post Deloitte observer notes on this page as they are available.

FRC issues an update responding to country and currency risk in financial reporting

17 Jan, 2012

The UK Financial Reporting Council (FRC) has issued An Update to Directors of Listed Companies: Responding to increased country and currency risk in financial reports.

The Update was issued due the current economic uncertainties in numerous countries. The Update aims to provide issues to UK listed companies that may occur when responding to the increasing country and currency risk when filing their annual and semi-annual financial reports. The Update notes the following:

The issues Directors could consider include, where relevant:

  • The company's exposure to country risk, direct or to the extent practical indirect, through financial instruments but also in terms of exposure to trading counterparties (customers and suppliers);
  • The impact of austerity measures being adopted in a number of countries on the company's forecasts, impairment testing, going concern considerations, etc.;
  • Possible consequences of currency events that are not factored into forecasts but may impact reported exposures and sensitivity testing of impairment or going concern considerations; and
  • A post balance sheet date event requiring enhanced disclosures to avoid misleading investors. [Footnote omitted]

The Update also suggests that additional guidance should be considered, such as the ESMA's statement Sovereign Debt in IFRS Financial Statements (see our earlier story).

Click for:

Deloitte publication update

16 Jan, 2012

A reminder that you can access all the latest IFRS related Deloitte newsletters on the 'Publications' tab on the home page, including the latest edition of our Model financial statements.

The most recent publications include:

The page also highlights that Deloitte's 2011 Model Financial statements that reflect the early application of new and revised Standards are now available. 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 and the impact of the early application of new and revised Standards 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 and amendments to IAS 1, IAS 12, and IAS 19). 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.

Click for IFRS Model Financial Statements for 2011 including early adoption.

Notes from the IFRS Foundation Trustees meeting

12 Jan, 2012

The IFRS Foundation Trustees held a meeting in Singapore on 12 January 2012.

We have posted Deloitte observer notes from the meeting (click through for direct access to the notes):

Thursday, 12 January 2012

Click here to go to the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

IAASB feedback statement on disclosure consultation

11 Jan, 2012

The International Auditing and Assurance Standards Board (IAASB) has released a 'Feedback Statement' on the responses to its January 2011 Discussion Paper 'The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications'. The Discussion Paper solicited views and perspectives of different stakeholder groups on the challenges arising as financial reporting continues to evolve to meet the changing needs of users.

The Feedback Statement presents a summary of the range of views on some of the more significant challenges faced by participants across the entire financial reporting supply chain, including the impact of trends in financial reporting, applying materiality to disclosures, evaluating misstatements generated by disclosures, the availability of audit evidence to support disclosures, and work effort.

To address some of the issues identified respondents have called for more auditing guidance in certain identified areas. However, the majority of the respondents were of the view that some of the more important issues could not be addressed by the IAASB on its own, but would require international collaboration and cooperation, particularly with both the accounting standard setters—including the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB), and regulators.

The need for a 'Disclosure Framework' is a recurring theme in recent times. For instance, our comment letter (PDF 126k) on the IASB's Agenda Consultation noted the "development of a clear framework for disclosures in financial statements is critical and urgent".

Click for IAASB press release (link to IFAC website).

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