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Our views on Management Commentary ED

02 Mar 2010

Deloitte Touche Tohmatsu has submitted to the IASB our Letter of Comment on Exposure Draft 2009/6: Management Commentary.

The ED, issued on 23 June 2009, proposes non-mandatory guidance for preparing and presenting a 'management commentary' – sometimes called 'management's discussion and analysis' or 'operating and financial review'. We support finalising the ED as a guidance document:

We believe that management commentary is an important element of financial reporting and provides decision-useful information to the users. The recent financial crisis has highlighted that users benefit from explanatory information in addition to the financial statements which helps evaluate an entity's financial position, financial performance and cash flows. We are supportive of the Board establishing high-level principles to facilitate comparability amongst entities reporting under IFRSs and to enhance the usefulness of their financial reporting.

We agree with the IASB that the status of any final document should be that of non-mandatory guidance. However, for the avoidance of any doubt, we suggest that the IASB should clarify that an entity's ability to claim compliance with IFRS in its financial statements does not depend on following this non-mandatory guidance on management commentary (BC 46 of the ED could imply otherwise).

Accordingly, we support issuance of the ED as a final guidance document, with some clarifications noted below. Given the very high-level nature of the guidance, there may be requests for providing further guidance with respect to management commentary. In view of the Board's current agenda, we believe the Board should resist such requests in the near term and only consider such requests in the future in coordination with regulators around the world tasked with oversight over financial reports provided to investors.

Click for our comment letter (PDF 25k).
All of our past letters of comment to IASB, IFRIC, IASCF, IASC, and SIC are Here. Click here to go to our Management Commentary Project Page.


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IASB webcast on IAS 37 replacement

02 Mar 2010

The IASB will host a live webcast on the project to replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as follows:

  • Webcast Topic: IASB project to replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets
  • Date and Time: Wednesday, 3 March 2010 at 10:00am London time and repeated at 3:00pm London time
  • Host: Robert Garnett, IASB member, and Joan Brown, IASB project manager
  • More Information and Registration: Click Here
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Deloitte UK iGAAP Newsletter

02 Mar 2010

We have added a new resource on IAS Plus – the iGAAP Newsletter published quarterly by Deloitte (United Kingdom).

This newsletter covers the activities of the IASB and the UK Accounting Standards Board (ASB). Each issue has a special theme. For example, the December 2009 issue focuses on the IFRS for SMEs and the future of UK GAAP. In addition, in each issue there are updates on the activities of the IASB and the ASB, project timetables for both boards, links to new Deloitte publications, an interview of someone involved with IFRSs, and a table showing IFRSs issued but not yet effective or endorsed by the European Union.


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Deloitte IFRS training – power and utility

01 Mar 2010

Deloitte (United States) has organised a three-day IFRS training program specifically designed for Power and Utility companies to learn about key accounting issues and practical considerations related to IFRS implementation.

The event will take place 17-19 May 2010 in Chicago, Illinois USA. Topics will include:
  • Current IFRS landscape
  • Environmental Issues: Emissions and RECS
  • Regulatory accounting
  • Inventory
  • Employee benefits and share-based payments
  • Business combinations
  • Income taxes and tax implications when converting to IFRS
  • Contingencies
  • Decommissioning provisions and asset retirement obligations
  • Financial instruments, derivatives, hedging and investments
  • Consolidation, associates and joint ventures
  • Long-lived assets and impairments
  • Intangible assets and leasing
  • First-time adoption and financial statement presentation
  • IFRS adoption: Steps to implementation and downstream implications
  • Regulatory reporting
This workshop will be led by utility specialists from Deloitte's Financial Accounting & Reporting Services practice that have experience with IFRSs and will focus on specific areas for utility companies to consider as they assess their implementation and transition requirements. The session is appropriate for financial management and accounting personnel of utility companies. Click here for More Information On Line. Here is the Workshop Brochure (PDF 646k).


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Deadline reminder – management commentary

01 Mar 2010

We remind you that comments are due today (1 March 2010) on Exposure Draft (ED): Management Commentary.

The ED was issued on 23 June 2009. The ED proposes non-mandatory guidance for preparing and presenting a 'management commentary' – sometimes called 'management's discussion and analysis' or 'operating and financial review'. [Apologies for this late reminder.]
Click to view our previous story on exposure draft: management commentary.


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EU Parliament hearings discuss accounting

28 Feb 2010

The European Parliament's Special Committee on Financial, Economic and Social Crisis (CRIS) held a hearing on 25 February 2010 to examine financial regulation and supervision in Europe.

Accounting standards were among the issues discussed.
  • Bank of France governor Christian Noyer stressed 'the need for accounting standards to take account of the real risks'.
  • Bettina Corves-Wunderer, CFO of Allianz Italy said that 'untransparent and insufficiently harmonised accounting standards had also led to procyclical behaviour'.
Click to download Committee Press Release(PDF 126k).


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Deloitte Dbriefs webcast on IFRSs and tax

27 Feb 2010

Many US companies still consider conversion to IFRSs as a faraway event.

But there are many ways tax executives can lay groundwork today that makes for smoother transition tomorrow. Deloitte (United States) will host a webcast on 29 March 2010 that will discuss:
  • Regulatory developments from the SEC, how they impact your conversion timeline and steps you can take to prepare
  • Tax implications of IFRS conversion in the U.S. and abroad, including global tax and treasury planning
  • Tax operations, including education and training, data blueprinting, and supporting software
  • Broader tax implications of IFRS conversion and how the tax function can drive value and potential funding opportunities for the process
There is no cost to participate, but you must register. Details:
  • Webcast Topic: IFRS and Tax – Driving Value through Advanced Preparation
  • Date and Time: Monday, 29 March 2010 2:00pm to 3:00pm US EDT
  • Host: Rita Benassi, Partner – Deloitte Tax LLP


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Agenda for special IASB and IASB-FASB meetings

26 Feb 2010

The IASB and FASB will hold special joint meetings on 3 March 2010 and 11 March 2010, in advance of their regular monthly meeting on 15-19 March 2010. At both the 3 March special meeting, the IASB will also discuss several of its agenda projects separately from FASB.

You can access the agenda on our 3 March 2010 and 11 March 2010 special joint meeting pages. We will also post Deloitte observer notes on this page as they are available
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Agenda for 4-5 March 2010 IFRIC meeting

26 Feb 2010

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 4 and 5 March 2010 (morning only on 5 March).

The meeting is open to the public and will be webcast. The tentative agenda is shown below.

Agenda for the IFRIC Meeting

Thursday and Friday, 4 and 5 March 2010

Thursday 4 March 2010 (10:00-18:00h London time)

  • Introduction
  • IAS 16 Property, Plant and Equipment – Accounting for production phase stripping costs in the mining industry
  • IFRS 2 Share-based Payment – Vesting and non-vesting conditions
  • Review of Tentative Agenda Decisions published in January 2010 IFRIC Update
    • IAS 21 The Effects of changes in Foreign Exchange Rates – Determination of functional currency of investment holding company
    • IAS 32 Financial Instruments: Presentation – Debt/equity classification of instruments with obligation to deliver cash at the discretion of shareholders
    • IAS 36 Impairment of Assets – Transition provisions for IFRS 8 amendment
    • IAS 39 Financial Instruments Recognition and Measurement – Unit of account for forward contracts with volumetric optionality
  • Annual Improvements – 2008-2010 Cycle
    • Comment analysis for minor issues:
      • Accounting policy changes in the year of adoption (IFRS 1)
      • Clarification of statement of changes in equity (IAS 1)
      • Transition requirements for amendments made as a result of IAS 27R to IAS 21, IAS 28 and IAS 31
      • Fair value of award credit (IFRIC 13)
      • Accounting policy changes in the year of adoption (IFRS 1)
      • Clarification of statement of changes in equity (IAS 1)
      • Transition requirements for amendments made as a result of IAS 27R to IAS 21, IAS 28 and IAS 31
      • Fair value of award credit (IFRIC 13)
    • IFRS 3 Business Combinations – Unreplaced and voluntarily replaced share-based payment awards (comment letter analysis)
    • IFRS 3 Business Combinations – Measurement of NCI (review of examples)
    • IFRS 5 Non.current Assets Held for Sale and Discontinued Operations – Loss of significant influence over an associate or jointly controlled entity (comment letter analysis)
    • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – Change in terminology to the qualitative characteristics
    • IAS 40 Investment Property – Change from fair value model to cost model
  • Staff Recommendations for Tentative Agenda Decision
    • IFRS 1 First-time adoption of International Financial Reporting Standards – Accounting for costs included in self-constructed assets on transition
    • IFRS 5 Non.current Assets Held for Sale and Discontinued Operations – Reversal of impairment losses relating to goodwill
    • IAS 12 Income Taxes – Tax effect of distributions to equity holders
    • IAS 1 Presentation of Financial Statements – Comparative information

Friday 5 March (09:00-12:30h London time)


  • Staff Recommendations for Tentative Agenda Decision (continued from Thursday, if needed)
  • Annual Improvements 2009 – 2011 Cycle
    • IFRS 1 First-time Adoption of International Financial Reporting Standards – Hard wire dates
    • IFRS 3 Business Combinations – Contingent consideration and first-time adoption
    • IFRS 8 Operating Segments – Determination of scope
    • IAS 21 The Effects of Changes in Foreign Exchange Rates – Repayment of investment/CTA
    • IAS 26 Accounting and Reporting by Retirement Benefit Plans – Valuation of plan assets
    • IAS 34 Interim Financial Reporting – Consistency in disclosure of total segment assets
  • Administrative Session – IFRIC work in progress


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Special IASB meetings 3 and 11 March 2010

25 Feb 2010

The IASB and FASB will hold special joint Board meetings at the offices of the IASB in London as follows (agendas and timings to be announced):

  • Wednesday 3 March 2010
  • Thursday 11 March 2010
The special IASB meeting that had been tentatively announced for Wednesday 2 March 2010 will not be held.


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