August

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SEC Chief Accountant comments on IAS

17 Aug 2001

Lynn Turner made his final speech as Chief Accountant of the US SEC at the annual meeting of the American Accounting Association in Atlanta, Georgia on 13 August.

Comments relating to IAS included these:
  • Regarding possible changes to the existing requirement that IAS registrants reconcile IAS earnings to US GAAP, Mr. Turner said: "I don't see a lot happening there.... Investors need to have information on an 'apples-to-apples' basis. We should do nothing at this point in time."
  • The SEC has sent a letter to IASB asking IASB to add revenue recognition to its agenda. IASB Chairman Sir David Tweedie has replied that he would present the request to the IASB at its next meeting.
  • The SEC has prepared an analysis of reconciling items in IAS filings and has sent it to IASB.
  • Mr. Turner expressed concern about a letter written to IASB by a major Swiss multinational corporation stating that if the IASB adopts a standard that is more rigorous than a US standard, for example, in the area of business combinations or stock option accounting, then the company would propose to abandon IAS and switch to US GAAP. Commenting further on this letter in another presentation at the same meeting, Mr. Turner said:

I find this disappointing as it means that there are some out there who believe we should have standards based on the lowest common denominator (or some would say based on what gives them the answer they most desire) rather than international standards that are the 'best of breed'. However, I am not surprised. I always wondered if some of those advocating the use of international standards failed to recognize and give appropriate credit to the fact that we in the US have the world's largest, most liquid capital markets because we do in fact have the 'best of breed' financial reporting today. This in turn has provided companies with capital at the lowest possible cost that has been used to generate jobs and an improved global economy.

But ultimately, it will be the market that determines whose product works the best. I hope the IASB avoids the race to the 'bottom' with its product, as some have recommended. I also hope that those people whose foresight seems myopic and shortsighted, who believe that no standard should be any 'tougher' or more rigorous than what we establish in the US, realize they are really saying, 'Let's be done with the IASB now that it appears they are going to develop higher quality standards, and just look to the FASB for standard setting.'

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Harvey Pitt confirmed as SEC Chairman

17 Aug 2001

The US Senate has confirmed Harvey Pitt, 56, as chairman of the US Securities and Exchange Commission for a term expiring 5 June 2007. Mr.

Pitt was a partner in the New York law firm of Fried, Frank, Harris, Shriver & Jacobson and was SEC General Counsel 1975-78.
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Australia issues proposed harmonisation and convergence policy

16 Aug 2001

The Australian Accounting Standards Board has issued Exposure Draft 102, International Convergence and Harmonisation Policy.

Among other things, the proposal sets out AASB's:
  • international convergence objective,
  • harmonisation objective,
  • work program strategies, and
  • international liaison and monitoring strategies.
Comments are due 28 September.
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IASB formally announces its initial agenda

16 Aug 2001

IASB has announced that the following projects will constitute its initial technical agenda: .

IASB has announced that the following projects will constitute its initial technical agenda:

IASB Initial Technical Agenda

Projects intended to provide leadership and promote convergence:

Projects intended to provide for easier application of IAS: Projects to improve existing IAS:

The Board also identified 16 additional topics that are being studied by one or more national standard setters. The Board expects to consider adding these projects to its agenda in the future:

Projects that IASB Expects to Undertake in the Future

  • Accounting Measurement
  • Extractive Industries
  • Financial Instruments: Comprehensive Project
  • Accounting for Leases
  • Income Taxes
  • Accounting by Small and Medium Sized Entities and in Emerging Economies
  • Business Combinations: Phase Two

  • Consolidation Policy
  • Definitions of Elements of Financial Statements
  • Derecognition Beyond IAS 39
  • Employee Benefits
  • Impairment
  • Intangible Assets
  • Liabilities and Revenue Recognition
  • Management Discussion and Analysis
  • Revaluations of Certain Assets

Click here for IASB Press Release (PDF 51k).

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Official Arabic translation of IAS being developed

06 Aug 2001

The IASB has appointed a review committee to undertake an official Arabic translation of International Accounting Standards.

The Big Five accounting firms along with the Accounting and Auditing Organization for Islamic Financial Institutions (AOFI) were invited to join this Committee. The Committee's first meeting was held in Beirut, Lebanon on 22 March, 2001. Two partners of DTT, Mr. Joseph El Fadel (D&T;, Beirut) and Mr. Abbas Ali Mirza (D&T;, Dubai), participated in this meeting, and in subsequent meetings Mr. Musa Dajani (D&T;, Dubai) will also represent the firm on this Committee. D&T; Middle East has already produced an Arabic translation of IAS. The Committee has chosen this unofficial version as one of the versions to be used in finalising the official Arabic translation of IAS approved by the IASB.
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Europe-Africa edition of IASPlus newsletter is published

01 Aug 2001

The July 2001 Europe-Africa Edition of our newsletter is out.

Eleven of its 25 pages are devoted to IAS news from Europe, Africa, and the Middle East.
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Six new country updates are posted

01 Aug 2001

We have updated the country information pages for Austria, Denmark, Germany, Israel, South Africa, and Spain. .

We have updated the country information pages for Austria, Denmark, Germany, Israel, South Africa, and Spain.

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.