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SEC Chief Accountant welcomes actions by FASB and IASB

21 Dec 2003

The Chief Accountant of the US Securities and Exchange Commission welcomed the publication by the Financial Accounting Standards Board (FASB) of proposals that would modify several aspects of American accounting standards to be consistent with the guidance on those issues currently included in international accounting standards.

The Chief Accountant also welcomed the release by the IASB of revised IASs 32 and 39. Click for (PDF 34k).

Report of the third day of the IASB meeting

20 Dec 2003

The IASB met in London 17-19 December 2003. We have moved our notes from the IASB meeting on 19 December 2003 to a Separate Page. .

The IASB met in London 17-19 December 2003. We have moved our notes from the IASB meeting on 19 December 2003 to a Separate Page.

IASB publishes 13 revised IAS

19 Dec 2003

The International Accounting Standards Board has published 13 revised International Accounting Standards reflecting changes resulting from the Improvements Project.

The revised standards mark the near-completion of the Improvements project. The completion of these improved standards brings the IASB closer to its commitment to have a platform of high quality, improved standards in place by the end of March 2004. The IASB has set itself this deadline to ease the implementation of its standards in the many countries, including those of the European Union, that will be adopting international standards from 2005.

The revised standards issued are:

  • IAS 1 Presentation of Financial Statements
  • IAS 2 Inventories
  • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
  • IAS 10 Events after the Balance Sheet Date
  • IAS 16 Property, Plant and Equipment
  • IAS 17 Leases
  • IAS 21 The Effects of Changes in Foreign Exchange Rates
  • IAS 24 Related Party Disclosures
  • IAS 27 Consolidated and Separate Financial Statements
  • IAS 28 Investments in Associates
  • IAS 31 Interests in Joint Ventures
  • IAS 33 Earnings per Share
  • IAS 40 Investment Property

The Board also withdrew IAS 15 Information Reflecting the Effects of Changing Prices.

Click here for IASB Press Release (PDF 39k).

Revised versions of IAS 32 and IAS 39 released

19 Dec 2003

The IASB has published the final texts of the revised versions of IAS 32 and IAS 39 on financial instruments.

IASB subscribers may download them from the IASB's Website. Click for IASB Press Release (PDF 81k).

IAS 39 is expected to be further revised in first quarter 2004 to reflect the Board's decisions regarding macro hedging.


New edition of Accounting Roundup posted

19 Dec 2003

We have posted the 16 December 2003 Edition of Accounting Roundup, a Deloitte newsletter that summarises selected recent accounting and financial reporting developments and provides Internet links to related content where appropriate.

Accounting Roundup is published periodically as developments warrant. This issue includes about recent and proposed FASB Staff Positions, issues relating to FAS 133 and FIN 46, and summaries of recent activity at FASB, GASB, AICPA, SEC, PCAOB, and IASB.

Report of the first day of the IASB meeting

19 Dec 2003

The IASB met in London 17-19 December 2003. We have moved our notes from the IASB meeting on 17 December 2003 to a Separate Page. .

The IASB met in London 17-19 December 2003. We have moved our notes from the IASB meeting on 17 December 2003 to a Separate Page.

Report of the second day of the IASB meeting

19 Dec 2003

The IASB met in London 17-19 December 2003. We have moved our notes from the IASB meeting on 18 December 2003 to a Separate Page. .

The IASB met in London 17-19 December 2003. We have moved our notes from the IASB meeting on 18 December 2003 to a Separate Page.

All IAS have been adopted or proposed in the Philippines

17 Dec 2003

With the recent issuance of two exposure drafts by the Philippine Accounting Standards Council, every existing International Accounting Standard has now either been adopted virtually word for word or proposed for adoption in the Philippines.

The last two exposure draft are the equivalents of IAS 30 (disclosures by financial institutions) and IAS 41 (agriculture). In addition to these two, the Philippine exposure drafts of the following standards have not yet been issued as final Statements of Financial Accounting Standards: IAS 12 (income taxes), IAS 19 (employee benefits), IAS 26 (employee benefit plans), IAS 29 (hyperinflation), IAS 32 and IAS 39 (financial instruments), and IAS 40 (investment property).

FASB publishes four "convergence" exposure drafts

16 Dec 2003

The US Financial Accounting Standards Board has published four exposure drafts that would result in US accounting standards converging to existing International Financial Reporting Standards.

Under the four EDs:

  • Voluntary changes in accounting policies would be required to be applied retrospectively rather than by cumulative effect adjustment as currently required.
  • Three changes are proposed for calculating earnings per share.
  • A gain or loss would be recognised on the exchange of similar productive assets based on the fair value of the exchange unless the exchange lacks commercial substance.
  • Abnormal amounts of idle capacity and spoilage costs would be excluded from the cost of inventory and expensed as incurred.
Additional information:

FASB Chairman speaks out on convergence

15 Dec 2003

Convergence of IFRS and US GAAP was one of the major themes in a presentation by FASB Chairman Robert H.

Herz at last week's AICPA Conference on Current SEC Developments. Another major theme was undue political pressure on controversial topics such as accounting for stock options. Below is an excerpt from Mr. Herz's comments. Click to Download the Full Text (PDF 72k).

While getting the [IASB and the FASB] to agree on a common answer to particular issues can be quite challenging, that is not, in my view, the greatest hurdle facing international convergence. Rather, the biggest challenge and potential obstacle thus far has seemed to come from particular constituent groups who have lobbied heavily against particular proposals from either the FASB or the IASB that would move our standards closer together. We have seen this here with the campaign in Congress and elsewhere by the hi-tech lobby against expensing stock options and in Europe with certain financial institutions who have lobbied the European Commission and national governments against the introduction in Europe of international standards on the accounting for financial instruments that are in many respects similar to those in U.S. GAAP. Let's be clear, convergence is a two-way street. If you are truly in favor of international convergence, then inevitably there will be changes on both sides. Convergence does not mean convergence to my way, rather it must mean convergence to the better approach. And while U.S. GAAP may be more highly developed and tested than international standards, we don't have a monopoly on all the right answers. Indeed in some cases, the international folks have addressed a subject more recently than we have and may have come up with a higher quality approach. And in some cases (like revenue recognition), neither U.S. GAAP nor international standards are particularly good in my view and thus we need to work together to find a better approach.

So can we get to convergence? I believe so but it will take time, a lot of hard work, and a relentless determination. And, as I just suggested, the biggest potential obstacle I see is the political one. That is whether the politicians on either side of the Atlantic will have the vision and political will to restrain themselves from intervening into what are supposed to be the independent and objective processes of either the FASB or the IASB each time a powerful lobbying group asks them to block a particular proposal they don't like.

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