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ESMA replies to IASB agenda consultation

24 Nov, 2011

The European Securities and Markets Authority (ESMA) has posted to its website a comment letter on the IASB's Agenda Consultation 2011.

Even though ESMA believes that this concultation can provide additional input for the agenda setting process, it does not "consider the consultation to be the basis on which to determine what projects, and the scope of these, the IASB should work on for the coming years".

Apart from requesting a period of calm in changes to accounting standards (which has been asked for in many comment letters to the IASB) and pointing out that the major projects the IASB is currently working on (revenue recognition, leases, insurance contracts, financial instruments) will "go well beyond 2011", ESMA comments that the IASB has pressing business on its hands that does not need to be consulted about.

Three aspects ESMA mentions specifically:

  • A fundamental debate consisting of conceptual and practical issues on what constitutes performance is necessary and should be undertaken by the IASB as soon as possible;
  • The IASB should restart its Financial Instruments with Characteristics of Equity project identifying the characteristics that should be present in an instrument for it to be classified as either an equity or a liability instrument; and
  • We urge the Board to provide guidance in the area of Business Combinations Between Entities Under Common Control and Extractive Industries.

Please click for:

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IASB podcast on insurance contracts

23 Nov, 2011

The IASB has made a podcast on the current state of debate in the IASB/FASB joint project on insurance contracts available.

Patrick Finnegan, IASB member, and Joanna Yeoh, Technical Manager, report on developments in the project following the IASB meeting on 15 November 2011 and joint IASB/FASB meeting on 16 November 2011. To listen to the podcast, please click here (link to IASB website).

Click for our insurance contracts project page.

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IASB and IFAC agree to collaborate on public and private accounting standards

22 Nov, 2011

The IASB and the International Federation of Accountants (IFAC) have issued a Memorandum of Understanding (MoU), agreeing to co-operate in developing private and public sector accounting standards.

This MoU was developed to ensure greater consistency in the boards' standard-setting activities. In the MoU, the boards lay out a 'communication and co-operation process' which provides information on meetings, projects, crises, programs, soliciting feedback and more.

Click for IASB press release (link to IASB website).

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Updated EFRAG 'endorsement status report'

21 Nov, 2011

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 for the Endorsement Status Report as of 18 November 2011. Currently, the following thirteen 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 IFRS 7 Financial Instruments: Disclosures
  • 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
  • IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
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Latest batch of editorial corrections to IFRSs released by the IASB

21 Nov, 2011

The IASB has posted to its website a new batch of Editorial Corrections to IFRSs.

This batch makes editorial corrections and changes to ED/2011/4 Investment Entities (issued August 2011), IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (issued March 2004), IFRS 7 Disclosures – Transfers of Financial Assets (Amendments to IFRS 7) (issued October 2010), IFRS 9 Financial Instruments, IFRS 13 Fair Value Measurement (issued May 2011), IAS 19 Employee Benefits (issued June 2011), Bound Volume (Red Book) 2011, Bound Volume (Education) 2011, Bound Volume (Blue Book) 2012 and IFRS for SMEs (issued July 2009).

Details of the editorial corrections are available available on the IASB's website.

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EFRAG draft comment letter on government loans

18 Nov, 2011

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on the IASB Exposure Draft ED/2011/5 'Government Loans (Proposed amendments to IFRS 1)'.

EFRAG is supportive of what the proposed amendments are trying to achieve, but it believes that the Board should limit the scope of the proposed transitional relief to entities that, under their previous GAAP, accounted for government loans as liabilities.

Comments on the letter are invited by 27 December 2011. The draft comment letter can be downloaded via the press release on EFRAG's website.

Click for our earlier story on the issuance of ED/2011/5.

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Final notes from the November IASB meeting

17 Nov, 2011

The IASB's regular monthly meeting was held on 15-16 November 2011 in London, part of it a joint meeting with the FASB. We have posted Deloitte observer notes from the remaining session held on Wednesday.

Click through for direct access to the notes:

Wednesday, 16 November 2011 (other sessions)

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

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Deloitte comment letter on agenda consultation

17 Nov, 2011

Deloitte's IFRS Global Office has submitted a letter of comment to the International Accounting Standards Board (IASB) on its Request for Views on its Agenda Consultation 2011.

In the comment letter, we agree with the agenda and highlight several key points in the Board's strategic direction:

We agree with the Board that, as an immediate priority, it must dedicate all necessary resources to completion of the projects on revenue from contracts with customers, leases, insurance contracts and financial instruments. Given the scale of these four projects, a realistic allocation of significant resources to other projects can be made only once these priority projects have been substantially completed.

The continued development and refinement of the Conceptual Framework for Financial Reporting (2010) is critical to provide a clear set of principles to underpin individual standards. The Framework should, however, remain a ‘living document’ to be assessed as new standards are developed. In this way, the Framework can evolve as the global financial reporting environment changes.

The development of a clear framework for disclosures in financial statements is critical and urgent. This should be undertaken separately from, and with more urgency than, any project on presentation.

Click for our Comment Letter on Request for Views on its Agenda Consultation 2011.

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Additional notes from the November IASB meeting

16 Nov, 2011

The IASB's regular monthly meeting was held on 15-16 November 2011 in London, part of it a joint meeting with the FASB. We have posted Deloitte observer notes from the insurance session held on the first day of the meeting, along with most of the sessions from the second day.

Click through for direct access to the notes:

Tuesday, 15 November 2011 (other sessions)

Wednesday, 16 November 2011

Notes from Wednesday's joint session on Insurance Contracts will be posted soon.

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

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Notes from the November IASB meeting

15 Nov, 2011

The IASB's regular monthly meeting was held on 15-16 November 2011 in in London, part of it a joint meeting with the FASB. We have posted Deloitte observer notes from most of the sessions held on on the first day of the meeting, covering the following topics: annual improvements, operating segments, IFRS 10 — transitional requirements, IFRS 9 — targeted improvements, offsetting — effective dates, and leases.

Click through for direct access to the notes:

Tuesday, 15 November 2011 (other sessions)

Notes from the session on Insurance contracts will be posted soon.

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

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