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2002

Australia, New Zealand, UK invite comments on ED 2

22 Nov 2002

The accounting standard setters in Australia, New Zealand, and the United Kingdom have all issued exposure drafts inviting comments on whether adoption of IASB ED 2, Share-Based Payment, is appropriate in their respective countries: Australia ED 108, New Zealand ED 93, and United Kingdom FRED 31.

Our news story of 19 November reported similar action by the FASB in the United States.

IFRIC will meet in London 25-26 November

22 Nov 2002

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on 25 and 26 November 2002 to discuss the following issues: Decommissioning and rehabilitation funds: accounting by the contributor. Emission rights: does an emission rights scheme give rise to a net asset or liability or a separate asset and liability; if a separate asset and liability are recognised, what are their natures. Hyperinflation: IFRIC will discuss conceptual and practical issues in relation to IAS 29, Financial Reporting in Hyperinflationary Economies.

IFRIC intends to submit its views to the Board for it to consider in the Improvements and Convergence Projects.
  • IAS 19–money purchase plan with guaranteed minimum: application of IAS 19 to plans that would be defined contribution plans but for the existence of a minimum return guarantee.
  • IAS 19–multi-employer plan exemption: possible guidance on when the exemptions in IAS 19 from defined benefit accounting for multi-employer plans are available.
  • IAS 37–changes in decommissioning charges: should the effect of changes in the discount rate and estimated cash flows be capitalised or recognised in profit or loss.
  • Possible amendment to SIC 12, Consolidation–Special Purpose Entities: to clarify the meaning of a "majority" of benefits and risks in SIC 12.10(c) and (d).
  • Rights of use: whether to account for such contracts as leases.
  • Ukraine will require IFRS in 2003 for all companies

    21 Nov 2002

    All companies in Ukraine will be required to prepare their financial statements using International Financial Reporting Standards starting in 2003. At present, only banks in Ukraine are required to follow IFRS.

    FASB identifies short-term convergence issues

    21 Nov 2002

    The FASB has decided to include the following issues within the scope of FASB's Short-term International Convergence Project: Classification of liabilities on refinancing Classification of liabilities due on demand due to violation of debt covenant Asset exchanges – recognition of gain/loss on exchanges of similar productive assets and intangibles Voluntary change in accounting policies Financial instruments – implications of IASB amendments to IAS 32 and 39 Discontinued operations – differences in definition and timing of remeasurement Accounting for costs associated with exit or disposal activities Inventories – idle capacity and spoilage Distinction between changes in accounting policies and changes in accounting estimates Income taxes – differences in application of the temporary difference approach to accounting for income taxes Financial reporting in hyperinflationary economies Joint ventures – differences in definition and use of proportionate consolidation Interim financial reporting – discrete period vs.

    integral approach.
  • Research and development – capitalisation of development costs to be capitalized under certain circumstances.
  • Tanzania will require IFRS in 2004 for listed companies

    20 Nov 2002

    Effective from 1 July, 2004, the National Board of Accountants and Auditors adopted the International Financial Reporting Standards (IFRSs) and International Accounting Standards, issued by the International Accounting Standards Board (IASB), and International Standards of Auditing (ISAs), issued by the International Federation of Accountants (IFAC), as Tanzanian standards.

    At the same time, the Board continued in force the following Tanzania Financial Accounting Standards (TFASs) and Tanzania Statements of Recommended Practice (TSRPs) that do not have counterpart International standards:

    Tanzania Financial Accounting Standards (TFASs)

    • TFAS No. 12 Director's Report
    • TFAS No. 16 Accounting for Extractive Industries
    • TFAS No. 23 Accounting for Value Added Tax (VAT)
    • TFAS No. 24 Public Sector Accounting

    Tanzania Statements of Recommended Practice (TSRPs)

    • TSRP 2 Accounting for Non-Governmental Organizations
    • TSRP 3 Governance in the Public Sector - An Accounting Officer's Perspective

    SEC proposes auditor independence rules

    20 Nov 2002

    The US Securities and Exchange Commission has proposed Rules pursuant to the Sarbanes-Oxley Act that would: Require auditors to retain specific types of records. Require certain disclosures and reports by auditors and set conditions under which auditing firms would not be considered independent for purposes of performing audits of public company financial statements.

    Among other things, the proposed rules cover prohibited services, partner rotation, approval of non-audit services by the audit committee, auditor communications with audit committees, and public disclosure of audit and non-audit fees and services.

    FASB seeks comments on IASB ED 2 on share-based payment

    19 Nov 2002

    The US Financial Accounting Standards Board has issued an Invitation to Comment seeking constituents' views on accounting for the fair value of employee stock options.

    The FASB document explains the similarities of and differences between the IASB's recently issued exposure draft on Share-Based Payment and the accounting for stock-based compensation under FASB Statement 123. FASB's Invitation to Comment is available on FASB's Website. The comment period ends on 1 February 2003. Click for FASB's News Release (PDF 13k).

    ED 2 on share-based payment can now be downloaded

    18 Nov 2002

    As of today, ED 2 'Share-Based Payment' may be downloaded without charge from the IASB's website.

    There are three separate documents. Comments are due 7 March 2003.

    Click for Project Information.

    Chinese version of comparison of IFRS and PRC GAAP

    18 Nov 2002

    We have published the Chinese translation of GAAP Differences in your Pocket: IAS and GAAP in the People's Republic of China.

    This booklet identifies and explains over 100 differences between International Financial Reporting Standards and Chinese GAAP. It also includes a comprehensive foreword that reviews the development of financial reporting standards in China. Click to (PDF 683k). You can download the English version on our Publications Page. You will also find, on that page, our comparison of IFRS and United States GAAP. We are pleased to grant permission to accounting educators and students to make copies of those publications for educational use.

    Agenda project pages updated

    18 Nov 2002

    We have updated our agenda project pages to reflect the IASB's discussion of the following topics at its November 2002 meeting: Business Combinations–Phase II Convergence Topics Improvements Project Insurance–Phase I Revenue Recognition and Liabilities .

    We have updated our agenda project pages to reflect the IASB's discussion of the following topics at its November 2002 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.