February

Update on use of IFRS by foreign issuers in Canada

22 Feb 2003

In June 2002 we reported that the Canadian Securities Administrators (CSA) had Proposed (PDF 8k) that certain eligible foreign issuers would be allowed to submit financial statements prepared using IFRS (or several specified national GAAPs), without reconciliation to Canadian GAAP.

The CSA also proposed that Canadian companies registered with the US SEC could use US GAAP, with a reconciliation to Canadian GAAP for the first two years in which US GAAP is used. The CSA has announced that its consideration of the comments on the proposal is nearing completion and that it expects to publish a revised proposal for comment by mid-2003.

Update of UK Convergence Handbook is available

21 Feb 2003

The Institute of Chartered Accountants in England and Wales has issued the third update of its Convergence Handbook, originally published in November 2000. The Handbook compared IAS and UK GAAP.

This new update, which replaces all previous updates, reflects the effects of standards and exposure drafts issued by the IASC, the IASB, and the UK Accounting Standards Board up to the end of December 2002. Click to download the (PDF 170k).

IASB announces effective date of improvements to existing IAS

21 Feb 2003

At its meeting in London, the Board agreed that the effective date for all of the Improvements standards will be 1 January 2005. Earlier application will be encouraged.

Publication of these standards is expected to commence in the middle of 2003.

Notes from the second day of the February IASB meeting

21 Feb 2003

We have consolidated all of our notes from the 19-21 February 2003 IASB meeting onto a Single Web Page. .

We have consolidated all of our notes from the 19-21 February 2003 IASB meeting onto a Single Web Page.

IASB updates its project timetables

20 Feb 2003

Information posted in the timetable on IASB's website indicates the following changes: Improvements: final standards in 2nd quarter 2003 (was 1st quarter) Deposit-Taking, Lending, and Securities Activities: Disclosure and Presentation: exposure draft in 3rd quarter 2003 (was 2nd quarter) Reporting Performance: exposure draft in 4th quarter 2003 (was 1st half) Business Combinations Phase II (Application of the Purchase Method): exposure draft in 2nd quarter 2003 (was 1st quarter) Insurance Contracts Phase I: exposure draft in 2nd quarter 2003 (was 1st quarter) Concepts: Liabilities, Equity, and Revenue Recognition: exposure Draft in 3rd quarter 2003 and final Standard 2004 (a timetable had not been announced previously) Convergence Topics: Short-term Issues: exposure Draft in 3rd quarter 2003 and final Standard 2004 (a timetable had not been announced previously).

The IASB has not yet established a timetable for the non-short-term issues in its Convergence Project.

Notes from the first day of the February IASB meeting

20 Feb 2003

We have consolidated all of our notes from the 19-21 February 2003 IASB meeting onto a Single Web Page. .

We have consolidated all of our notes from the 19-21 February 2003 IASB meeting onto a Single Web Page.

Latest Deloitte & Touche (US) Accounting Roundup

19 Feb 2003

You can now download the 18 February 2003 edition of Accounting Roundup, a newsletter published by Deloitte & Touche (US).

Among the topics covered are new EITF consensuses; FASB Staff Positions; SEC studies on SEC enforcement actions, credit rating agencies, and disciplinary actions against securities professionals pursuant to the Sarbanes-Oxley Act; software revenue recognition; accounting by health-care organisations; AcSEC projects; and the 4 February PCAOB meeting.

United States: Stock options get political (again)

19 Feb 2003

Members of the US Congress are lining up for and against the recognition of the fair value of stock options as employee compensation expense.

Members of Congress have sent letters to the FASB In Favour (PDF 460k) and Against (PDF 1,354k) expense accrual. The IASB has Proposed that all share-based payment transactions (including employee options) should be recognised in the financial statements, using a fair value measurement basis. An expense should be recognised when the goods or services received are consumed. The same recognition and measurement standards would apply to both public and non-public companies. The US FASB has invited comments on the IASB proposal. The current US standard (Statement 123) gives companies an option, in most cases, to accrue an expense or to disclose in the notes the amount that would have been accrued. Both of the Congressional letters refer to the IASB proposal.

New DTT guide to transition to IFRS – property companies

19 Feb 2003

European companies with investments in real estate will be particularly affected by the transition to IAS 40, Investment Property, because (a) the fair value accounting model, with value changes to P&L, is different from what most companies do today, (b) the methodology for measuring fair value differs from current practice, and (c) the definition of investment property in IAS 40 is broader than the traditional definition.

This new guide from Deloitte & Touche's UK practice (published February 2003) contains guidance for property companies on the areas they need to consider when planning to implement the IAS 40. While focused on the transition from UK GAAP to IFRS, the issues identified in this guide are equally applicable to companies in other EU countries as they make their plans for the transition. Click to (PDF 242k).

New DTT guide to transition to IFRS – manufacturing companies

18 Feb 2003

From 1st January 2005 onwards, virtually all European companies with securities listed in the European Union must prepare consolidated accounts in accordance with International Financial Reporting Standards (IFRS).

As a result, all affected entities will have to apply IFRS in 2004 to report comparative figures. This means that in 2003, while still reporting under their national GAAP, companies will need to run systems in parallel to be sure that the systems are ready for IFRS reporting in 2004 and to appreciate the changes to the figures arising under IFRS. A new guide – Manufacturing: The Future for UK Automotive and Aerospace Industries under IAS – from Deloitte & Touche's UK practice walks manufacturers through the impacts of IFRS on their accounts, preparing companies for the changes ahead. While focused on the transition from UK GAAP to IFRS, this guide will be of considerable benefit to companies in other EU countries as they make their plans for the transition. Click to (PDF 336k).

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