Update on integration of European capital markets

15 Dec 2003

An inter-agency monitoring group within the European Commission has published its second interim report on progress toward regulating European securities markets at the EU level.

Currently, those markets are generally regulated at the member state level, though steps have already been taken to centralise the regulatory process. Adoption of IFRS in Europe is part of the centralisation programme. Click to (PDF 156k).

Explain impact of IFRS starting in 2003

11 Dec 2003

In its Letter of Comment on a consultation paper, Draft Recommendation for Additional Guidance Regarding the Transition to IFRS, issued by the Committee of European Securities Regulators, the Institute of Chartered Accountants in England and Wales has urged companies to explain the impact of switching from UK GAAP to IFRS as soon as reasonably practicable.

The Institute recommends that companies begin the process in their 2003 annual report by including narrative on the preparation process.

IFRS will be acceptable to tax authorities in Britain

11 Dec 2003

In his Annual Pre-Budget Report to the House of Commons, the UK Chancellor of the Exchequer Gordon Brown announced the following -->"deregulations: firms applying international accounting standards will not have to submit a second and separate set of accounts to the Inland Revenue.

For firms with turnovers below £5.6 million there will now be no independent audit requirement."

Model Hong Kong GAAP financial statements for 2003

11 Dec 2003

We have posted to our Hong Kong Page model financial statements and a presentation and a disclosure checklist for 2003 under Hong Kong generally accepted accounting principles.

Nearly all of the Hong Kong SSAPs and Interpretations issued in the past four years are identical to the counterpart International Financial Reporting Standard. Click to download:

Is a whole new business reporting model needed?

11 Dec 2003

The Institute of Chartered Accountants in England & Wales has published New Reporting Models for Business, a report aimed at widening debate on how businesses should report to their various stakeholders.

The report examines issues such as whether a new conceptual framework is needed; the degree to which business reporting can serve multiple stakeholders and a broad range of decision-making needs; reporting on intangibles; and transparency and commercial confidentiality. The report does not put forward its own new reporting model, but rather it analyses the models that have already been proposed and raises a series of questions for further discussion and research. The 11 models analysed are:
  • The Balanced Scorecard (Kaplan and Norton)
  • The Jenkins Report (AICPA)
  • Tomorrow's Company (RSA/Tomorrow's Company)
  • The 21st Century Annual Report (ICAEW)
  • The Inevitable Change (ICAS)
  • Inside Out (ICAEW)
  • Value Dynamics (Arthur Andersen)
  • GRI (Global Reporting Initiative®)
  • Unseen Wealth (Brookings Institution)
  • ValueReporting® (PricewaterhouseCoopers)
  • The Hermes Principles (Hermes Pensions Management)
The report notes:

None of these models, whatever their merits, has so far succeeded in commanding general support. At present, they provide a collection of interesting and challenging ideas, many of which seem to have little prospect of widespread implementation....

Some may feel that more wide-ranging reforms should take second place for the foreseeable future to such pressing concerns as the improvement and implementation of IFRS. But the criticisms of business reporting referred to in this report did not suddenly appear at the height of the bull market and they will not disappear as and when companies are using a common set of international accounting standards. When these issues have been dealt with, the fundamental questions that the reformers raise will still need to be addressed. Indeed, unless they are addressed it might not be possible to restore or maintain confidence in business reporting.

Click for:

South Africa supplement to IFRS in your Pocket

11 Dec 2003

Deloitte South Africa has published a (PDF 131k) to IFRS in your Pocket.

The supplement summarises the differences between South African Statements of Generally Accepted Accounting Practice and IFRS. Following completion of the harmonisation process, those differences relate to the effective dates of the standards, additional disclosures required by South African GAAP, and elimination of certain alternatives allowed under IFRS.

PCAOB rules for inspection of non-US audit firms

10 Dec 2003

The US Public Company Accounting Oversight Board has invited comment on proposed rules relating to the inspection and investigation of non-US public accounting firms.

The Board also proposed extending the registration deadline for non-US firms by 90 days to 19 July 2004. The proposed inspection rule would permit the PCAOB to rely on the work of non-US oversight systems in other jurisdictions, based on a sliding scale: the more independent and more rigorous a local oversight system, the greater the PCAOB's reliance on that system. The non-US inspecting entity's would be expected to follow an inspection work program that meets certain requirements. Click for Press Release (PDF 114k). When available, the text of the proposed rules will be posted here on PCAOB's Website.

IFRIC project summaries updated

10 Dec 2003

We have updated the following summaries of IFRIC agenda projects to reflect the deliberations and decisions reached at IFRIC's meeting on 2-3 December 2003: IAS 17, Leases: Rights of Use of Assets IAS 17, Leases: Service Concession Arrangements IAS 19, Employee Benefits: Allocation of Benefits to Periods of Service IAS 19, Employee Benefits: Money Purchase Plans with Minimum Guarantee IAS 29: First-time Adoption of IAS 29 IAS 37, Provisions: Changes in Decommissioning Liabilities IAS 38, Intangible Assets: Emission Rights IAS 41: Fair Value Measurement Issues in Agriculture .

Agenda for next week's IASB meeting

09 Dec 2003

The IASB will meet at its offices in London on 17-19 December 2003. The following Agenda topics will be discussed: .

The IASB will meet at its offices in London on 17-19 December 2003. The following Agenda topics will be discussed:


Steps toward IFRS convergence in New Zealand

09 Dec 2003

The New Zealand Financial Reporting Standards Board has issued two exposure drafts as part of the process to converge with International Financial Reporting Standards.

A new edition of the Deloitte New Zealand Accounting Alert newsletter (Issue #16) describes ED NZ IAS-1: Presentation of Financial Statements, and ED NZ Interpretation SIC-29: Disclosure Service Concession Arrangements.

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.