November

New NYSE and NASDAQ rules apply to foreign issuers

06 Nov 2003

The US Securities and Exchange Commission has approved new rules adopted by the New York Stock Exchange and NASDAQ aimed at strengthening of corporate governance standards for listed companies.

The standards relate to independence for directors and independent director oversight of processes relating to corporate governance, auditing, director nominations, and compensation. There are certain exemptions for foreign private issuers, but not with respect to audit committee requirements. There is also a delayed implementation date for foreign private issuers. The NASDAQ rules require companies to make a public announcement of an audit opinions with a going concern qualification. Click for:

Preliminary revised version of IAS 2 is available

05 Nov 2003

The IASB is making available on-line to subscribers the preliminary final texts of Standards being revised under the Improvements Project.

The Preliminary Final version of IAS 2, Inventories, is now available on IASB's Website. The IASB had previously posted Preliminary Final versions of IAS 33, Earnings Per Share, and IAS 10, Events after the Balance Sheet Date. You can purchase subscriptions on line.

Study of financial reporting in the mining industry

04 Nov 2003

Deloitte Touche Tohmatsu has published Financial Reporting in the Global Mining Industry, a survey of the financial reporting practices in 21 of the world's leading mining companies based on a review of their published annual financial statements and supplementary data.

The 21 companies are domiciled in 9 different countries and use 7 different accounting frameworks for preparing their financial statements. We looked at their reporting in many key areas: accounting for exploration costs and mine development, the amortisation of capitalised costs, impairment, provisions for costs to be incurred after mine closures, establishing fair values in a business combination, and reporting interests in joint ventures. We are pleased to make this report available without charge. Click to (PDF 1249k).

Agenda project pages updated

04 Nov 2003

We have updated the following agenda project pages to reflect Board deliberations at its October 2003 meeting: .

Agenda for the November 2003 IASB meeting

04 Nov 2003

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: .

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

We comment on ED 5 on insurance contracts

03 Nov 2003

The Deloitte letter of comment on Exposure Draft ED 5, Insurance Contracts, questions the approach of adopting an 'interim standard' that exempts entities within the scope of the draft standard from complying with certain parts of the IASB Framework and defers addressing recognition and measurement principles until a later date.

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).

Concerns about IFRIC D2 on decommissioning liabilities

03 Nov 2003

The Deloitte letter of comment on IFRIC Draft Interpretation D2, Changes in Decommissioning, Restoration and Similar Liabilities, agrees that guidance is needed but concludes that the proposal is not the most appropriate interpretation of IFRS.

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 begin adopting IFRS in 2004

03 Nov 2003

Speaking at a conference on IAS and Russian Integration into the World Economy, Tatyana Paramonova, First Deputy Chairman of the Russian Central Bank, said that the Central Bank has developed a programme for the Russian banking sector's transition to International Financial Reporting Standards.

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.

IASC Foundation trustees will meet on 4 November

02 Nov 2003

The trustees of the IASC Foundation will meet in Brussels on Tuesday, 4 November 2003. The agenda includes approval of the minutes, report of the chairman of the IASB, process for constitutional review, and the proficiency testing and education programme.

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.

ICAEW concern about IASB's approach to convergence

01 Nov 2003

In their comment letter to the IASB on , Disposal of Non-current Assets and Presentation of Discontinued Operations, the Institute of Chartered Accountants in England and Wales urged the IASB to focus its efforts on outstanding issues relating to the adoption of IFRS in 2005, rather than on convergence of IFRS and existing national GAAPs.

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:

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