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March

IASB publishes Request for Information on rate regulation

Mar 28, 2013

The IASB has issued a Request for Information (RFI) seeking comments from stakeholders to identify high-level overviews of rate-regulatory schemes that should be included as part of the scope in the development of a discussion paper.

The rate regulation project was originally added to the IASB's technical agenda in December 2008, and an exposure draft was published on July 22, 2009. Comments received on the exposure expressed divergent views. No consensus was ever reached and the project was therefore suspended in September 2010.

The IASB has reactivated this project as part of its response to the Agenda Consultation 2011. The RFI is an early step the IASB is taking to reactivate the project. The RFI, along with other research, will be used in the development of a discussion paper (DP). The goal of the DP is "to identify what information about the consequences of rate regulation would be most useful for users of IFRS financial statements and whether the IASB should develop specific guidance for accounting for those consequences."

Summary of questions asked in the Request for Information
Question 1 — What types of goods or services are subject to the rate regulation described for consideration in the DP?
Question 2 — What are the objectives of the rate regulation and how do they influence the interaction among the rate regulator, the rate-regulated entity, and the customer?
Question 3 — What sort of rights or obligations does the regulation create?
Question 4 — In relation to the rights or obligations identified in the comments to Question 3, how does the rate-regulated entity enforce its rights, or how does the rate regulator enforce the settlement of the rate-regulated entity's obligations?
Question 5 — How does the rate regulation ensure the recovery or reversal of under- or over-recoveries of allowable costs (i.e., variance amounts) (if applicable)? Are these mechanisms effective in recovering or reversing those amounts within the targeted timeframe?

The comment deadline was May 30, 2013.

More information is available on the IASB's Web site.

IFRS XBRL taxonomy for 2013 is available

Mar 27, 2013

The IFRS Foundation has published the IFRS Taxonomy 2013. The IFRS Taxonomy is a translation of IFRSs into XBRL (eXtensible Business Reporting Language).

The 2013 taxonomy is consistent with IFRSs as issued by the IASB as of January 1, 2013, and IFRS for Small- and Medium-sized Entities as issued on July 9, 2009. It also contains XBRL tags for all IFRS disclosure requirements.

Click here to access the IFRS Taxonomy files and accompanying materials on the IFRS Foundation's Web site.

PCAOB proposes rule containing framework for reorganizing auditing standards

Mar 26, 2013

The PCAOB has issued a proposed rule, "Proposed Framework for Reorganization of PCAOB Auditing Standards and Related Amendments to PCAOB Auditing Standards and Rules" to provide “a potential framework for reorganizing the Board's existing interim and PCAOB-issued auditing standards into a topical structure with a single integrated numbering system. The proposed reorganization is intended to present the standards in a logical order that generally follows the flow of the audit process.”

Comments on the proposed rule are due by May 28, 2013. For more information, see the press release on the PCAOB's Web site.

Updated IASB work plan

Mar 26, 2013

After its March meeting, the IASB updated its work plan. The timing of expected milestones in a number of projects has been changed, and a number of new, expected project steps and narrow-scope projects have been added.


Summary of changes

Details of the changes are:

Updates to major projects

Newly added narrow-scope projects

Updates to narrow-scope projects

    A large number of due process documents are expected in the second or third quarter. Projects for which exposure drafts are expected in the second quarter include insurance contracts, leases, and rate-regulated activities (interim IFRS). In addition, the finalized IFRSs on revenue recognition is expected by the end of June 2013, and a discussion paper on the IASB's conceptual framework project is also expected within the same time frame. In addition, due process documents for a number of other projects are expected in the second or third quarter.

    Click for the IASB work plan dated March 25, 2013 (link to the IASB's Web site). We have updated our project pages to reflect the updated work plan and other known developments.

    Limited amendments to IAS 19 proposed

    Mar 25, 2013

    The IASB has published ED/2013/4, "Defined Benefit Plans: Employee Contributions (Proposed amendments to IAS 19)." The proposed amendments aim to clarify the accounting for employee contributions set out in the formal terms of a defined benefit plan if the contributions are linked to service. Comments are requested by July 25, 2013.

    The narrow-scope IASB project that led to issuing this exposure draft (ED) arose out of requests made to the IFRS Interpretations Committee seeking clarification of paragraph 93 of IAS 19, Employee Benefits. That paragraph refers to the accounting for employee contributions set out in the formal terms of a defined benefit plan. The question was whether employee contributions in respect of service should in all cases be attributed to periods of service as a negative benefit in accordance with IAS 19, paragraph 70.

    The IASB discussed the matter during its February 2013 meeting and came to the conclusion that contributions from employees or third parties that are linked solely to the employee’s service rendered in the same period in which they are paid may be treated as a reduction in the service cost and accounted for in that same period instead of attributing the contributions to periods of service in accordance with paragraph 70.

    As an example of contributions that may be treated as a reduction in the service cost, the ED cites contributions that are a fixed percentage of the employee’s salary, when the percentage of the employee’s salary does not depend on the employee’s number of years of service to the employer.

    The IASB also decided to specify in paragraph 93 that the negative benefit from employee contributions when these are not recognized as a reduction in the service cost in the same period in which they are payable is attributed to periods of service consistently with the application of the gross benefit in accordance with paragraph 70 to ensure consistent attribution of the net benefit.

    If finalized, the amendments would apply retrospectively whereby the exact date will only be determined after exposure. Comments must be submitted to the IASB no later than July 25, 2013.

    Please click for:

    SMEIG February 2013 meeting summary

    Mar 22, 2013

    The SME Implementation Group (SMEIG) met on February 4 and 5, 2013, to analyze possible amendments to "IFRS for SMEs" that are based on the responses to the June 2012 Request for Information "Comprehensive Review of the IFRS for SMEs." A summary of the meeting is now available.

    The meeting summary provides the SMEIG’s recommendations and additional analysis to the issues set out in its June 2012 Request for Information. The IASB will consider the recommendations by the SMEIG when developing an exposure draft of proposed changes to the IFRS for SMEs.

    The SMEIG meeting summary is available on the IASB's Web site.

    March 2013 IASB meeting notes — Part 3 (concluded)

    Mar 22, 2013

    The IASB's March meeting was held in London on March 19–21, 2013. Deloitte observer notes are posted from Wednesday's session on the conceptual framework (presentation and disclosure, elements of financial statements, and capital maintenance).

    Click for direct access to the notes:

    Wednesday, March 20, 2013

    • Conceptual framework (IASB)
      • Presentation and disclosure.
      • Elements of financial statements.
      • Capital maintenance.

    You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

    March 2013 IASB meeting notes — Part 2 (continued)

    Mar 21, 2013

    The IASB's March meeting was held in London on March 19–21, 2013. Deloitte observer notes are posted from Thursday's sessions on IAS 19 (defined benefit plans: employee contributions), annual improvements 2010–2012, IAS 1 (assessment of going concern), revenue recognition, and put options written on non-controlling interests.

    Click for direct access to the notes:

    Thursday, March 21, 2013

    You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

    IFRS Foundation appoints Trustee from Saudi Arabia

    Mar 21, 2013

    The IFRS Foundation has announced the appointment of Dr. Abdulrahman Al-Humaid as a Trustee of the IFRS Foundation. He is the first Trustee from the Middle East region.

    Dr. Al-Humaid chairs the Committee for Adopting International Accounting Standards of the Saudi Organization of Certified Public Accountants (SOCPA). He was Chairman of the SOCPA's Accounting Standards Committee from 1996 until 2002.

    Saudi Arabia requires IFRSs for banking and insurance companies and is considering full convergence. The SOCPA has approved an IFRS transition plan that will require listed entities to report using the "national standards that are closely converged with full IFRSs." In addition, unlisted entities will be required to report under IFRS for SMEs as adopted in Saudi Arabia. A specific date for the IFRS transition plan has not yet been established.

    Dr. Al-Humaid’s appointment begins with immediate effect. His term will expire on December 31, 2015, and can be renewed once for a further three-year period.

    Click here for the IFRS Foundation press release on the IASB's Web site.

    March 2013 IASB meeting notes — Part 1

    Mar 20, 2013

    The IASB's March meeting was held in London on March 19–21, 2013. Deloitte observer notes are posted from Tuesday's sessions on IAS 41 (bearer biological assets), "IFRS for SMEs," conceptual framework, and fair value measurement.

    Click for direct access to the notes:

    Tuesday, March 19, 2013

    You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

    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.