May

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Belgium proposes to adopt IAS/IFRS in 2007

24 May 2003

The Belgian Commission for Accounting Standards (CBN/CNC) has recently proposed a comprehensive approach to adopting IAS/IFRS in Belgium by all Belgian entities starting in 2007: .

The Belgian Commission for Accounting Standards (CBN/CNC) has recently proposed a comprehensive approach to adopting IAS/IFRS in Belgium by all Belgian entities starting in 2007:

Consolidated annual accounts: CBN/CNC is proposing that IAS/IFRS be mandatory for all consolidated annual accounts starting from 2007. This would impact more than 600 Belgian non-listed entities that now prepare consolidated annual accounts. Until the EU IAS regulation comes into force in 2005 (which obliges listed entities to adopt IAS/IFRS in preparing their consolidated accounts), the CBN/CNC would reform its policy with respect to the use of non-Belgian GAAP. Specifically, it would make it easier for both listed and non-listed companies to get permission to use IAS/IFRS for their consolidated financial statements and would no longer allow a company to adopt US GAAP or any other GAAP in substitution for the Belgian GAAP. As a result, entities would be able to use IAS/IFRS for their consolidated annual accounts even before 2005.

Statutory annual accounts: CBN/CNC also has proposed an ambitious plan to converge the Belgian Accounting Law with IAS/IFRS as from 2007. Taking into account the scope and the importance of this harmonisation task, the CBN foresees putting all adaptations simultaneously into effect on 1 January 2007. The CBN/CNC indicated that the adaptations to the Belgian Accounting Law would be tackled pragmatically and that the Belgian context and the scope of the entities concerned would be taken into account explicitly.

Click here for the proposal in Dutch (PDF 169k) or French (PDF 165k).

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New DTT Australian Accounting Alert on international convergence

23 May 2003

We have posted two new Australian Accounting Alerts.

One deals with accounting for Australia's new tax consolidation system and the other with AASB's First Instalment on International Convergence.
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Notes from the third day of the IASB's May 2003 meeting

23 May 2003

We have combined our notes from all four days of the IASB meeting on 20-23 May 2003 into a Single Page. .

We have combined our notes from all four days of the IASB meeting on 20-23 May 2003 into a Single Page.

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Principales diferencias: IAS vs US GAAP

23 May 2003

We have posted Principales Diferencias: IAS vs US GAAP, the Spanish translation of our comparison of International Financial Reporting Standards and US GAAP.

We are pleased to grant permission for accounting educators and students to make copies for educational use. Click to (PDF 305k). You will find a complete list of available DTT publications relating to IFRS Here. Also, please visit our Spanish Language IASPlus Website.
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European Commission sets out priorities to improve audit quality

22 May 2003

The European Commission has published a 10-point plan for improving and harmonising the quality of independent audits throughout the EU.

Approximately two million European companies are required by statute to have an annual audit. To implement the plan, existing European legislation (particularly the 8th Directive) will be revised and extended. The plan is divided into short and medium-term priorities:

Short-Term Priorities (2003-2004)

  • Modernise the 8th Directive to include principles on public oversight, external quality assurance, auditor education and independence, code of ethics, auditing standards, disciplinary sanctions, and the appointment and dismissal of statutory auditors.
  • Create an EU Regulatory Committee on Audit, with power to adopt detailed binding auditing regulations (the present EU Committee on Auditing, renamed the Audit Advisory Committee, composed of representatives of Member States and of the profession, will become an advisory committee).
  • Strengthen public oversight of auditors at both the member State and EU levels.
  • Require International Standards on Auditing (ISAs) for all EU statutory audits from 2005.
Medium-Term Priorities (2004-2006)
  • Improve disciplinary sanctions.
  • Make audit firms and their networks more transparent, including disclosure requirements for audit firms.
  • Strengthen audit committees and internal controls.
  • Reinforce auditor independence and code of ethics (including seeking US recognition of the equivalence of the EU approach).
  • Remove restrictions on the establishment of EU audit firms and on cross-border provision of audit services.
  • Examine the economic impact of auditor liability regimes in member States.
Click for EC Announcement (PDF 79k) and Full Text of Plan (PDF 82k)
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Notes from the second day of the May 2003 IASB meeting

22 May 2003

We have combined our notes from all four days of the meeting of the International Accounting Standards Board on 20-23 May 2003 into a Single Page. .

We have combined our notes from all four days of the meeting of the International Accounting Standards Board on 20-23 May 2003 into a Single Page.

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Notes from the first day of the IASB meeting

21 May 2003

We have combined our notes from all four days of the meeting of the International Accounting Standards Board on 20-23 May 2003 into a Single Page. .

We have combined our notes from all four days of the meeting of the International Accounting Standards Board on 20-23 May 2003 into a Single Page.

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UK FSA chairman calls for global accounting standards

21 May 2003

In the 2003 Monetary Authority of Singapore Annual Lecture (PDF 33k), Sir Howard Davies, chairman of the UK Financial Services Authority (FSA), identified a comprehensive set of international accounting standards, enforced through high quality independent audits, as the number one item on his agenda for change to strengthen the international financial structure: Accounting standards are the foundation stone of the financial system, and of financial regulation. Without accounting numbers in which investors can have confidence, regulation cannot hope to be effective.

And those accounts must be audited objectively and independently.

Since the reformation of the International Accounting Standards Board three years ago a determined effort has been under way, led by Paul Volcker and David Tweedie, to complete the standard set and secure broad agreement to their acceptance around the world. They are now close to success, but there are some difficult obstacles still to be overcome, notably the question of the treatment of financial instruments (IAS 39). I very much hope an acceptable solution can soon be found. It would be a great pity if this opportunity were missed, and without satisfactory accounting for financial instruments IASs are unlikely to be accepted in the US.

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All listed companies in South Africa must follow IFRSs

20 May 2003

The JSE Securities Exchange South Africa (JSE) has approved substantial amendments to its listing rules that will require all companies listed on the exchange to comply with International Financial Reporting Standards (IFRS) for years commencing on or after 1 January 2005.

Previously, a company whose primary listing is on the JSE could elect to comply with either South African Statements of Generally Accepted Accounting Practices (SA GAAP) or IFRS. Under the amended JSE rules, a JSE GAAP Monitoring Panel will have the authority to sanction listed companies for non-compliance with either SA GAAP or IFRS.

 

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IFAC urges PCAOB to rely on international auditing standards

20 May 2003

In a Letter (PDF 117k) to the US Public Company Accounting Oversight Board (PCAOB), the International Federation of Accountants (IFAC) has urged the PCAOB to "seek public comment on the appropriateness of using International Standards on Auditing (ISAs) as a common base for issuers in the U.S." IFAC pointed out the benefits of adopting an internationally consistent approach to professional auditing standards.

IFAC noted that using ISAs as a common base would require auditors to both:
  • perform a financial statement audit in accordance with ISAs, and
  • perform additional procedures and report on additional matters in response to specific legal, regulatory, or other needs established at a national level.

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