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August

Tax impact of adopting IFRS: UK Alert

31 Aug 2003

Deloitte & Touche (United Kingdom) has published the first in a series of Alerts describing tax implications of adopting International Financial Reporting Standards.

The Alert notes: "The Inland Revenue position is that they do not believe IAS requires wholesale tax changes but there are circumstances where it is, or would be, 'good policy' to depart from following the accounts for tax purposes. " Click to Download (PDF 421k). Future Alerts will focus on transfer pricing and financial instruments, among other issues.

Calendar of important dates

26 Aug 2003

IASB watchers returning from their summer holidays may find the following recap of upcoming dates helpful: 17-19 September: IASB Board meeting, London 22 September: Meeting of the IASB and World Standard Setters, London 23 September: Meeting of the IASB and its partner national standard setters, London 30 September-1 October: Meeting of the IFRIC, London 22-24 October, IASB Board meeting, Toronto 24 October: Comment deadline on ED 4, Disposal of Non-Current Assets and Reporting of Discontinued Operations 31 October: Comment deadline on ED 5, Insurance Contracts 14 November: Comment deadline on ED, Hedge Accounting for a Portfolio Hedge of Interest Rate Risk .

IASB watchers returning from their summer holidays may find the following recap of upcoming dates helpful:

  • 17-19 September: IASB Board meeting, London
  • 22 September: Meeting of the IASB and World Standard Setters, London
  • 23 September: Meeting of the IASB and its partner national standard setters, London
  • 30 September-1 October: Meeting of the IFRIC, London
  • 22-24 October, IASB Board meeting, Toronto
  • 24 October: Comment deadline on ED 4, Disposal of Non-Current Assets and Reporting of Discontinued Operations
  • 31 October: Comment deadline on ED 5, Insurance Contracts
  • 14 November: Comment deadline on ED, Hedge Accounting for a Portfolio Hedge of Interest Rate Risk

IASB publishes "macro hedging" exposure draft

21 Aug 2003

The IASB has issued an exposure draft on 'Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk', proposing a "macro hedging" amendment to IAS 39. The ED would permit an entity to use fair value hedge accounting for a net portfolio hedge of interest rate risk if specified conditions are met.

This amendment was not among the Amendments to IAS 39 that the Board had proposed in July 2002.

The Board has determined that this change is of a magnitude that warrants the solicitation of public comment. Comment deadline is 14 November 2003.

The Board will issue an amended IAS 39 without the macro hedging proposal by the end of 2003.  A second version of IAS 39 revised, reflecting the final macro hedging decision, is planned for March 2004.

We have prepared a IAS Plus newsletter (PDF 31k) summarising the proposals in the exposure draft.

Click for IASB Press Release (PDF 42k). You can download the ED directly from the IASB's Website (PDF 258k).

 

Stay up to date on China with our new newsletter

19 Aug 2003

We have begun posting China Today on our China Page.

China Today is a newsletter published periodically by the Chinese Services Group of Deloitte & Touche (USA) to provide updated information on business, finance, and tax issues in Greater China.

Donald Nicolaisen Named SEC Chief Accountant

16 Aug 2003

The US Securities and Exchange Commission has named Donald T.

Nicolaisen as the Commission's Chief Accountant. Mr. Nicolaisen is currently a senior partner at PricewaterhouseCoopers LLP. The SEC's Announcement said: "Mr. Nicolaisen will oversee the Commission's accounting policy initiatives and lead the SEC's efforts with national and international standard-setters on critical accounting and auditing issues, including international convergence and efforts to adopt principles-based accounting standards."

Progress toward convergence in Australia

15 Aug 2003

We have posted the following two new Australian Accounting Alertsfrom Deloitte & Touche (Australia): (PDF 83k) (PDF 32k) .

We have posted the following two new Australian Accounting Alertsfrom Deloitte & Touche (Australia):

IASB announces September meeting agenda

14 Aug 2003

The following projects are on the Agenda for discussion at the IASB's meeting at its offices in London on 17-19 September 2003: Business Combinations Phase I Business Combinations Phase II Consolidation and Special Purpose Entities Convergence Extractive Industries Amendments to IAS 32 and IAS 39 IFRIC Update Improvements to IFRS Revenue Recognition Share-based Payment Small and Medium-Sized Entities .

IASB and FASB converging on purchased in-process R&D

14 Aug 2003

In its project on purchase method procedures, the US FASB has tentatively decided to eliminate the requirement in FASB Interpretation No.

4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method, to charge to expense certain in-process research and development assets acquired in a business combination. The IASB's proposed amendments to IAS 38 clarify that, in a business combination, an acquirer must recognise separately from goodwill "any of the acquiree's in-process research and development projects that meet the definition of an intangible asset".

IASB will host a world accounting standard setters meeting

14 Aug 2003

The IASB will host a meeting with representatives of world accounting standard setters on Monday, 22 September 2003, from 09:00 to 18:00 at the Renaissance Chancery Court Hotel in London.

The meeting is open to public observation. The agenda for that meeting includes:
  • Financial reporting by small and medium-sized entities. A technical discussion of the IASB project and the proposed approach to SME reporting. Short plenary session introducing the topic, followed by breakout sessions.
  • Convergence, harmonisation, and first-time adoption of IFRSs. Specific issues likely to be encountered in moving to IFRSs, including business combinations, hedge accounting, and tangible and intangible assets. Includes a discussion of the role of national standard-setting bodies and how they can be involved in the IASB process.
  • Reporting comprehensive income. A technical discussion of the proposed reporting format developed by the IASB. Short plenary session introducing the topic and case study, followed by breakout sessions.
  • IASB update and concluding remarks.

US GAO report on consolidation in the accounting profession

13 Aug 2003

A new report by the US General Accounting Office on Public Accounting Firms: Mandated Study on Consolidation and Competition (PDF 1,992k) includes a survey of independent auditors of SEC-registered companies.

Based on responses from 47 firms, the GAO found:

  • 49% of the accounting firms said that changes in and growing complexity of accounting and auditing standards had a "great upward influence" on their costs in the past decade, and 51% said those factors had a "moderate upward influence".
  • 28% of the accounting firms said that changes in and growing complexity of accounting and auditing standards had a "great upward influence" on their fees in the past decade; 64% said those factors had a "moderate upward influence"; and 7% said they had "little or no influence".
  • 37% of the accounting firms said that changes in and growing complexity of accounting and auditing standards had a made it "much harder" to maintain audit quality in the past decade; 57% said those factors made it "somewhat harder" to maintain quality; and 7% said they had "little or no effect" on audit quality.

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