We have updated the following jurisdiction pages for news about recent accounting standards setting activity: Australia, China, Denmark, Hong Kong, Malaysia, Pakistan, Philippines, Singapore, Taiwan, Thailand.

Also you can Download the Full Text of the Act (PDF 230k).

The proposal discusses how that approach might improve the quality and transparency of financial reporting and affect development of future standards. Comments are requested by 3 January 2003. FASB has scheduled a roundtable discussion on the topic for 16 December 2002. The proposal can be downloaded at www.fasb.org. Here's their Press Release (PDF 13k). Referring indirectly to International Accounting Standards, FASB Chairman Robert H. Herz stated:

The FASB is committed to improving US financial accounting standards. Many believe that moving to broader, more principles-based accounting standards such as those used in other parts of the world would facilitate better reporting in the United States. Others, however, are concerned that a principles-based approach could reduce the comparability of financial information and leave too much room for judgment by companies and auditors.

Click for Link to SEC Release.

The agenda will include Revenue Recognition Concepts; Linkage of Assets and Liabilities (the linkage question arises when the accounting treatment for two or more transactions or contracts differs depending on whether they are accounted for separately or together); Consolidation and Special Purpose Entities; Business Combinations - Phase II; Convergence Topics; Insurance Contracts; and possibly Performance Reporting. The following week (28-29 October) the Board will meet with the chairs of its eight partner national standard-setters.

The US SEC is proposing that both domestic and foreign registrants include the following new disclosures in their Exchange Act filings:

• The number and names of the "financial experts" serving on the company's audit committee and that they are independent of management, as determined by the company's board of directors.
• Whether the company has adopted a code of ethics for its senior officers, or if not, why not; and any amendments to or waivers from the code.
• A company would be required to file, in its annual report, an internal control report of management stating: 1. management's responsibilities for establishing and maintaining adequate internal controls and procedures for financial reporting for the company, 2. management's conclusions about the effectiveness of the company's internal controls and procedures for financial reporting as of the end of the company's most recent fiscal year, and 3. that the company's registered public accountant has attested to, and reported on, management's evaluation of the company's internal controls and procedures for financial reporting. Click for SEC Release.

The IASB has postponed the issuance of an Exposure Draft on Activities of Financial Institutions to the second quarter of 2003, with a final Standard now planned for some time in 2004.

However, a number of property companies in Hong Kong have expressed significant concerns about IAS 40. The main issue of concern is reporting changes in the fair value of an investment property as part of profit or loss. Both the HKSA Council and its Financial Accounting Standards Committee concluded that the HKSA should await completion of IASB's Performance Reporting project before taking the matter up again.

 

Click to go to:

• Our Comment Letter Page.
• IAS 39 Amendments Page.

This issue covers stock options, convergence of FASB and IASB standards, special purpose entities, principles-based approach to standard setting, audits of investment companies, revenue recognition with multiple deliverables, accounting by state and local governments, and a summary of the September IASB meeting.