The following projects will be on the agenda of the IASB meeting to be held at the Board's offices in London on 17-19 November 2003:

• Insurance Contracts Phase I
• Business Combinations Phase I
• Business Combinations Phase II
• Share-Based Payment - Tax Issue
• Pensions
• Leases

Instead, we prefer that the IASB address these issues in a comprehensive project to establish proper recognition and measurement principles for insurance contracts. We also disagree with the insertion of a 'sunset clause' in relation to this exemption. In addition, without adequate guidance on how to determine the fair value of insurance contracts, we suggest the Board reconsider the usefulness of the fair value disclosures proposed. Click to the Deloitte letter of comment on ED 5, Insurance Contracts (PDF 163k).

In our view, IFRS should be interpreted differently to achieve a conceptually better and more operable approach that at the same time converges with US GAAP. Click to the Deloitte letter of comment on IFRIC D2 (PDF 74k).

Russian banks are required to adopt IFRS starting 1 January 2004. However, Ms. Paramonova noted that "the transition is a very difficult process as for almost 70 years the whole system of accounting was geared towards a centralised planned economy." Banks will have a two-year transition period to convert to IFRS. Starting on 1 January 2006, the Central Bank will begin evaluating and enforcing compliance.

Also, European Union Internal Market Commissioner Frits Bolkestein will meet with Paul Volcker, Chairman of the IASC Foundation Trustees, on Monday, 3 November 2003 to discuss the implementation of IFRS in Europe.

The Institute also challenged the IASB's underlying approach to convergence, as "it is not apparent that in developing ED 4 the Board has considered the merits of relevant GAAP other than the US Standard SFAS 144." Click for:

• (PDF 74k) and
• (PDF 36k).

The MOU is the first global multilateral information-sharing arrangement among securities regulators and sets a new international benchmark for cooperation critical to combating violations of securities and derivatives laws. The MOU provides for the exchange of basic information in investigating cross-border violations, including bank, brokerage, and client identification records. Information provided through the MOU may be used to enforce compliance with securities and derivatives laws and regulations, including through civil and criminal prosecutions. Currently, regulators from 23 countries have signed the MOU. Others are expected. All signatories must first undergo an IOSCO screening process.

• Click for IOSCO Announcement (PDF 122k)
• Click for US SEC Press Release (PDF 34k)
• Click for FEE Website

The Technical Committee and the IASB have developed ongoing arrangements for the Technical Committee to provide input on IASB projects as they are developed and initiated and to monitor IASB work on an ongoing basis. IOSCO welcomes the efforts of accounting standard setting bodies towards convergence of international accounting standards. Looking ahead, IOSCO encourages the IASB and national standard setters to continue to work cooperatively and expeditiously to achieve convergence in order to facilitate cross-border offerings and listings and encourages regulators to address the broader issues of consistent interpretation, application and enforcement of accounting standards.

The new guidance is included in an updated version of International Auditing Practice Statement 1005 (PDF 79k), The Special Considerations in the Audit of Small Entities.

The approach envisions cooperation with appropriate non-US auditor oversight authorities. The plans described in the briefing paper include:

A framework to permit varying degrees of reliance on a firm's home country system of inspections, based on a sliding scale: the more independent and robust a home country system, the higher the reliance on that system. This framework also would involve the PCAOB in inspecting, on behalf of a non-US regulatory agency, US firms that audit or play a substantial role in the audit of public companies in the non-US jurisdiction. A modification to the PCAOB's registration form to permit, where applicable, the inclusion of certain information about a non-US firm's home country oversight system, to facilitate coordination between the PCAOB and non-US oversight systems. A 90-day extension of the Board's deadline for non-U.S. firm registration, which will give non-US firms a reasonable amount of time to understand and prepare for registration.

Click to Download the Briefing Paper (PDF 49k).