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IASC/IASB chronology posted

31 Jan 2002

We have compiled a Chronology of the history of IASC and IASB.

We intend to update it from time to time.

Agenda for February SAC meeting

30 Jan 2002

IASB will discuss the following matters with the Standards Advisory Council on 18-19 February (click for More Info): Amendments to IAS 39, Financial Instruments: Recognition and Measurement Business combinations First-time application of IFRS Improvements to existing IASB Standards .

IASB will discuss the following matters with the Standards Advisory Council on 18-19 February (click for More Info):

  • Amendments to IAS 39, Financial Instruments: Recognition and Measurement
  • Business combinations
  • First-time application of IFRS
  • Improvements to existing IASB Standards

IASB comment deadline - reminder

30 Jan 2002

Comments on the following proposals are due 15 February 2002: Exposure Draft of Preface to IASB Standards Proposed changes to IASC Foundation Constitution .

Comments on the following proposals are due 15 February 2002:

Russian GAAP Update

29 Jan 2002

The Russian Ministry of Finance sets accounting regulations for non-financial institutions. Entities governed by the Central Bank of the Russian Federation (CBRF) are banks and credit institutions.

The CBRF has responsibility for setting their accounting and reporting principles, closely monitor their activity on a regular basis, setting minimum capital requirements and other obligatory prudential ratios, and issuing licenses. The CBRF has declared the following general accounting principles:

  • Going concern
  • Continuity of accounting principles
  • Prudence
  • Recognition of income and expenses on a cash basis
  • Substance over form
  • True and fair view of the financial statements

The main difference between Russian Accounting Standards (RAS) and IAS for banks and credit institutions is that income and expenses are accounted for on a cash basis under RAS. Income is recognised when cash (or other consideration) is received and expenses are recorded at the date the payment is made, with some exceptions. Services paid for are recorded in the income statement on receipt of formal supporting documents confirming that services have been received.The CBRF has announced that it will require the use of IAS for all banks from 2004, however, this proposal has not yet been finalised. In addition, an instruction on calculating and recording provisions against possible losses on loans, securities, other assets and off-balance sheet commitments was made obligatory for all credit institutions operating in the Russian Federation.

As for non-financial companies, following a decision to move to IAS in 1998, the Ministry of Finance of the Russian Federation continues to update and issue new RAS modelled on IAS. However, most RAS (or PBU as they are called in Russian) still differ in many significant respects from IAS. Recently, a new PBU was issued 'Accounting for Loans and Costs of Borrowings' effective 1 January 2002. In addition, revisions have been made to PBU on 'Accounting for Inventory', effective 1 January 2002 and 'Accounting for Property, Plant and Equipment' effective for all financial statements issued in 2001.

Country information updated for six European jurisdictions

29 Jan 2002

Reports on recent standard-setting activity in Denmark, France, Germany, Italy, Russian Federation, and The Netherlands. .

Reports on recent standard-setting activity in

FASB considers project on revenue and liability recognition

29 Jan 2002

The US FASB has invited comments on whether it should undertake a proposed new project on the recognition of revenues and liabilities.

FASB's invitation notes that "the IASB also has indicated that it expects to consider adding a project on liabilities and revenue recognition to its technical agenda.". Click for FASB Website.

IASB will propose to correct an IAS 19 anomaly

29 Jan 2002

When applying IAS 19, Employee Benefits, in a falling equity market, in some situations enterprises will report an asset and a gain as a consequence of an actuarial loss.

IASB finds this "an unacceptable consequence of applying IAS 19" and has therefore decided to prepare an Exposure Draft of a small amendment to IAS 19 to ensure that no such gains would be recognised. The draft is expected to be published at the end of February. Click for IASB Press Release (PDF 10k).

Summary of IASB meeting with national standard setters

28 Jan 2002

On 21-22 January, IASB met with the chairs of its liaison national standard-setters to discuss the following topics.

Click here for a Detailed Summary of the Discussions:
  • Accounting by small and medium-sized entities and in emerging economies
  • Possible amendments to IAS 32 and IAS 39
  • First-time application of IAS
  • Improvements project
  • Responses to the Report of the Joint Working Group of Standard Setters on Financial Instruments

US Public Oversight Board votes to cease operations

28 Jan 2002

The US Public Oversight Board (POB) – which since 1977 has been the independent, private-sector oversight body for the accounting profession – has voted to terminate operations not later than 31 March 2002. The decision (by a ) (27k) was made as a result of a (PDF 43k) issued by Harvey Pitt, Chairman of the SEC – precipitated by the Enron case – that seemed to suggest the SEC's "proposals for changing the system of self-regulation of the accounting profession do not include a place for the POB".

The POB communicated its views to the SEC in a dated 21 January (PDF 38k). Mr. Pitt's Reply of 22 January (GIF 25k) expressed regret at the POB's decision, saying that "the issues, I think, are too important for the POB simply to walk away". A number of countries have set up or are considering a professional self-regulatory structure similar to that in the United States. The POB reaffirmed its decision to close in a (PDF 36k).

New SEC statement on disclosure requirements

28 Jan 2002

The US SEC has issued a statement on disclosure requirements for public companies that applies to both domestic and foreign registrants.

The statement sets forth the Commission's views regarding certain disclosures that should be considered by public companies while preparing annual reports for the year recently ended. The disclosure areas are liquidity and capital resources including off-balance sheet arrangements; certain trading activities that include non-exchange traded contracts accounted for at fair value; and effects of transactions with related and certain other parties. Click here for (167k) and here for the (PDF 11k).

Correction list for hyphenation

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