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Comparisons of UK GAAP with French and German GAAP

24 Nov 2001

Deloitte & Touche has published comparisons of UK GAAP with GAAP in France and in Germany.

Batch 6 of IAS 39 guidance is published

21 Nov 2001

IASB has published its sixth batch of IAS 39 Guidance developed by the Board's IAS 39 Implementation Guidance Committee (IGC).

This batch includes 17 Q&A; and two examples. One of the examples addresses the particularly difficult issue of applying hedge accounting when a bank or other financial institution manages its interest rate risk on an enterprise-wide basis. Another example focuses on internal derivatives. IASB has indicated that IGC has not scheduled further meetings. IASB is developing some amendments to IAS 39.

IFAD's "GAAP 2000" report is being updated

19 Nov 2001

The International Forum for Accountancy Development is updating and expanding its GAAP 2000 survey of national accounting rules.

The study highlights instances where a country's rules either do not allow or do not require the IAS accounting treatment. Approximately 60 countries will be included in the report for 2001, compared to 53 in the 2000 report. Also, the revised report will cover approximately 80 accounting and disclosure requirements, compared to 60 in the 2000 report. The new report is expected to be released in December 2001. Here is More Information about IFAD including the complete GAAP 2000 Report in PDF format.

IASB begins "soft launch" of insurance accounting proposals

17 Nov 2001

IASB has released three sections of a Draft Statement of Principles (DSOP) on Insurance Contracts.

The sections deal with the scope of the project, definition of an insurance contract, recognition and derecognition principles, and measurement objectives. The DSOP was developed by a steering committee for consideration by the IASB. While the draft is not a formal IASB discussion document, IASB has invited those who wish to comment to send their views directly to the project manager. You can download the draft on IASB's Website. IASB plans to post further sections of the DSOP as drafting is completed.

EU Directives amended to allow IAS 39 compliance

16 Nov 2001

The Parliament and Council of the European Union have amended the EU Directives to permit European companies to comply with IAS 39 and the Directives.

Click to Download the Amended Directives (PDF 118k). Under the revised directives, originated loans, held-to-maturity investments, and non-derivative/non-trading financial liabilities must be carried at amortised cost. We maintain a comprehensive European Resource Page documenting recent IAS-related events in Europe. We have just added to that page links to the Lists of Members of the new European Securities Committee and European Securities Regulators Committee.


IFAC adopts new auditor independence rules

16 Nov 2001

The IFAC Board has approved new independence rules for accountants performing assurance engagements, effective in 2004. IFAC expects to post the new guidance on its Website at the end of November.

IFAC comprises 153 professional accountancy bodies in 113 countries.

Preliminary summary of decisions at SIC meeting

15 Nov 2001

At its meeting in London 12-13 November, SIC reached the following decisions: D27 (Lease/Leaseback): Agreed to delete paragraph 9 dealing with the classification of fees and resubmit to IASB D28 (Business Combination Measurement): Agreed to resubmit to IASB and keep "date of change of control" rather than "exchange date".

Staff will discuss individually with board members to try to convince them that IASB should reconsider its tentative decision at its October meeting to measure consideration at "exchange date".
  • D29 (Service Concessions): Agreed to some minor editorial changes.
  • D30 (Presentation Currency): Agreed to the consensus basically as drafted. There was considerable debate about using end-of-period rates vs. average rates. There was no debate about restatement in the situation of hyperinflation.
  • D31 (Barter Transactions): Agreed to the consensus basically as drafted. Agreed to keep "occurs frequently" but confirmed deletion of "expected to continue to occur".
  • D32 (Website Costs): Agreed to consensus but reverted back to the original draft instead of applying it based on an incremental, marginal approach.
  • D33 (Potential Voting Rights, or PVR): Agreed to consensus as drafted. Agreed to clarify that PVR is one of many considerations in assessing whether control exists. Agreed that unless the PVR is considered in substance a financing transaction (for instance, A sells 20% of its investment in B to C and enters into a forward to buy it back at a fixed price, in which case the amount under the forward is part of A's ownership in consolidation, not minority interest), the forward or option while it is outstanding is a derivative under IAS 39.
  • D34 (Puttable Instruments): Confirmed the consensus but agreed to delay for one year the effective date for certain enterprises
  • Timetable is emerging for IASB's agenda projects

    15 Nov 2001

    Based on comments made at the October meetings of the Board, Advisory Council, and Trustees, here is our assessment of the IASB's timetable for its nine agenda projects: TIMETABLE FOR IASB'S AGENDA PROJECTS Preface to IFRS Exposure Draft issued 8 Nov.

    2001; comments due 15 Feb. 2002; IASB aims to publish a final Preface in the second half of 2002.

    Improvements Projects

    IASB aims to issue approximately 12 Exposure Drafts in the first half of 2002 (separate Exposure Drafts for revisions to each IAS).

    First-Time Application of IFRS

    IASB aims to issue an Exposure Draft in the first half of 2002.

    Business Combinations

    IASB aims to issue an Exposure Draft of proposed revisions to IAS 22 in the first half of 2002.

    Share-Based Payment

    IASB will not discuss this project at its next two meetings, suggesting that an Exposure Draft is not likely until the second half of 2002.

    Disclosure and Presentation of Activities in Financial Institutions

    IASB may issue an Exposure Draft some time during 2002.

    IAS 39 Amendments

    IASB may issue an Exposure Draft some time during 2002.

    Performance Reporting

    IASB will discuss a Draft Statement of Principles in 2002 and may issue that document for comment as a pre-Exposure Draft discussion document.

    Insurance Contracts

    IASB will discuss a Draft Statement of Principles in 2002, but whether it will issue that document for comment or publish an Exposure Draft is undecided.

    Decision expected on SEC Concept Release early in 2002

    14 Nov 2001

    Speaking in New York on 12 November at the Current Financial Reporting Issues Conference organised by Financial Executives International, John Morrissey, Deputy Chief Accountant of the US SEC, stated that the SEC's review of IAS for filing in the US will be a "hot topic" at the SEC during 2002.

    In February 2000, the SEC issued a Concept Release regarding the suitability of IAS for financial statements filed with the Commission.

    Agenda project pages updated

    13 Nov 2001

    We have updated our agenda project pages for the following projects to reflect discussion at the Board's October meeting: Business Combinations Improvements Project Performance Reporting Share-Based Payments SIC D27. .

    We have updated our agenda project pages for the following projects to reflect discussion at the Board's October 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.