June

Insurance Steering Committee approves a draft DSOP

21 Jun 2001

At its meeting 12-15 June, IASB's Insurance Steering Committee (ISC) reached agreement on a final Draft Statement of Principles that it will submit to IASB by the end of October.

Prior to this meeting, ISC's tentative conclusions on accounting for insurance contracts were all in the assumed context of a future standard that would require full fair value for financial instruments. Because ISC believes that the Financial Instruments Project is viewed by the IASB as a long-term project, ISC has decided to propose to IASB a "non-fair value" version of the asset/liability model for accounting for insurance contracts. Click here for More Detailed Information. Click to download Deloitte Touche Tohmatsu's International Insurance News, June 2001 (PDF 39k).

IASB's initial agenda is taking shape

20 Jun 2001

We have updated our list of Potential Items for IASB's Initial Technical Agenda based on Board discussions at the April and May meetings.

Discussions continue in June and July (which will include assignment of priorities to the projects), and the Board will consult with the Standards Advisory Council regarding its agenda on 23-24 July. [Note: The list was further updated to reflect decisions at the July 2001 IASB meeting.]

Canadian Institute favours harmonisation with US GAAP

18 Jun 2001

The Accounting Standards Oversight Council of the Canadian Institute of Chartered Accountants has concluded that the goal of harmonization with U.S.

standards should continue to be the top priority for the Accounting Standards Board (AcSB), which it oversees. Converging with "internationally developed common standards" should also be an objective.

Changes to IASB June meeting agenda

17 Jun 2001

The Agenda for IASB's 26-28 June Meeting will no longer include transition to IAS as the primary basis of accounting.

The 28th June session will be closed to public observation so the Board can discuss administrative matters.

Changes to IASB website

16 Jun 2001

The IASB Website has been redesigned and reorganised.

A new slogan, The Crucible of Convergence, has been adopted. [Note: Slogan was changed on 21 June to Leadership... Partnership... Convergence.]

Testimony at US hearing on capital markets and IAS

07 Jun 2001

Paul Volcker, chairman of the Trustees of the IASC Foundation, testified before the US House Subcommittee on Capital Markets: If markets are to function properly and capital is to be allocated efficiently, investors require transparency and must have confidence that financial information accurately reflects economic performance.

Investors should be able to make comparisons among companies in order to make rational investment decisions. In a rapidly globalizing world, it only makes sense that the same economic transactions are accounted same manner across various jurisdictions.

Page added for IASB Preface Project

07 Jun 2001

We have added to this website a page for IASB's project on the Preface to IASB Standards. .

We have added to this website a page for IASB's project on the Preface to IASB Standards.

IASC Trustee Volcker will testify on IAS to US Congress

06 Jun 2001

Paul Volcker, the former US Federal Reserve Board chairman who currently chairs the Trustees of the IASC Foundation, will testify on Thursday before the US House of Representatives Subcommittee on Capital Markets.

The subcommittee is holding a hearing on Promotion of International Capital Flow through Accounting Standards. The subcommittee is concerned about lack of comparability of financial information disclosed in international capital markets. In announcing the hearing, the subcommittee chair, Congressman Richard Baker, said: "Without harmonization of accounting standards from country to country, investors face uncertainty when evaluating investment opportunities and companies face costly compliance when filing financial disclosures."

Make note of IASB's new address, phones, email:

05 Jun 2001

Mailing address: International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Phones, Fax, Email: Main Phone: +44 20 7246 6410 Fax: +44 20 7246 6411 General Email: iasb@iasb.org.uk Board Members: Use IASB Main Phone: +44 20 7246 6410 Publications Orders: (these remain unchanged): Phone: +44 20 7427 5929 Fax: +44 20 7353 0562 Email: publications@iasb.org.uk Technical Director +44 20 7246 6460 Director of Operations (Tom Seidenstein) +44 20 7246 6450, tseidenstein@iasb.org.uk Website: http://www.iasb.org Direct Staff Email: first initial plus surname @ iasb.org.uk .

Mailing address:

International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom

Phones, Fax, Email:

Main Phone: +44 20 7246 6410 Fax: +44 20 7246 6411 General Email: iasb@iasb.org.uk Board Members: Use IASB Main Phone: +44 20 7246 6410 Publications Orders: (these remain unchanged):

  • Phone: +44 20 7427 5929
  • Fax: +44 20 7353 0562
  • Email: publications@iasb.org.uk
Technical Director +44 20 7246 6460 Director of Operations (Tom Seidenstein) +44 20 7246 6450, tseidenstein@iasb.org.uk Website: http://www.iasb.org Direct Staff Email: first initial plus surname @ iasb.org.uk

IASB subcommittee is working on Improvements Project

04 Jun 2001

In response to its request, IASB has received hundreds of ideas for possible Improvements to existing IAS.

The Board has appointed a subcommittee of IASB members (Robert Herz, Gilbert Gelard, Jim Leisenring, and Warren McGregor) to consider all proposed improvements. The subcommittee is expected to report to the Board at its June meeting. Regarding elimination of choices, IASB has identified the following nine choices as areas for possible change:

Accounting Issue

Current Choices

Inventories

FIFO/Average or LIFO

Correction of fundamental errors relating to prior periods

Restate or cumulative effect in earnings

Adjustments resulting from changes in accounting policies

If impracticable to restate, adjust retained earnings or cumulative effect in earnings

Foreign exchange losses from a severe devaluation or depreciation

Expense or capitalisation

Translation of goodwill and fair value adjustments on acquisition of a foreign entity

Closing rate or rate at transaction date

Measurement of minority's portion of identifiable assets and liabilities acquired

Fair value or carrying amount

Borrowing costs

Expense or capitalise

Investments in associates/subsidiaries in parent entity accounts

Cost or equity method or IAS 39

Reporting a venturer's interest in jointly controlled entities

Proportionate consolidation or equity method

EU Council adopts IAS 39 amendments to Directives

02 Jun 2001

Meeting in Brussels 30-31 May, the Council of the European Union unanimously approved an amendment to Directives 78/660/EEC, 83/349/EEC and 86/635/EEC as regards the valuation rules for the annual and consolidated accounts of certain types of companies as well as of banks and other financial institutions.

The amendments were presented by the Commission in February 2000 with a view to making it possible for companies to apply IAS 39, Financial Instruments: Recognition and Measurement, facilitating the valuation of certain financial instruments at fair value instead of historical cost. The European Parliament had approved the amendments earlier this month. The EU's announcement said:

The application of the standard will ensure that the financial impacts of the use of financial instruments are reflected in company financial statements appropriately and with full transparency. This standard has been prepared by a private accounting standard setter (IASB) and will become operative in 2001. The Community endeavours by this directive to facilitate the use of the standard by companies right from the beginning, since otherwise serious problems would be created. The directive now also contains amendments to the Banks Accounts Directive, in addition to the 4th and 7th Company Law Directives.

As regards the general legislative environment, the Commission has also presented, last February, a proposal for a regulation for a mandatory application of International Accounting Standards for listed companies by 2005.

Click for EC Press Release (PDF 24k).

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