March

Acceptability of IFRS for tax purposes in UK

05 Mar 2004

In our news story of 11 December 2003, we reported that UK Chancellor Gordon Brown told the House of Commons that "firms applying IAS will not have to submit a second and separate set of accounts to the Inland Revenue".

The Inland Revenue's Website now has details about what will be proposed. "Finance Bill 2004 will include measures to ensure that companies choosing to adopt International Accounting Standards (IAS) to draw up their accounts will receive broadly equivalent tax treatment to companies that continue to use UK GAAP." The website has a table comparing IAS and UK GAAP and "background on IAS/UK GAAP and why it is important for tax. This section gives details on why tax departs from the accounts and where IAS may lead to changes in the way items are accounted for, in particular the increased use of fair value accounting."

Analysis of ED 6 on exploration and evaluation costs

05 Mar 2004

The latest Deloitte Australian Accounting Alert, (PDF 126k), provides an overview of the requirements and practical implications of IASB ED 6 Exploration for and Evaluation of Mineral Resources.

Click for IASB Project Info.

SEC commissioner speaks about IFRS-US GAAP convergence

04 Mar 2004

In a Speech to the Institute of International Bankers, SEC Commissioner Cynthia A.

Glassman provided an update on "our views on progress towards international accounting standards". An excerpt:

On the subject of international accounting standards, our goal is clearly convergence. The IASB has grown in stature and credibility, and its International Financial Reporting Standards ('IFRS') will become mandatory in the EU in 2005. Our Chief Accountant, Don Nicolaisen, tells me that his staff is spending a lot of time gearing up on IFRS and that all the large accounting firms are developing IFRS training programs in anticipation of the 2005 goal.

The European Commission's strategy on accounting and auditing

04 Mar 2004

In an address to the Institute of Chartered Accountants in England and Wales in London earlier this week, Frits Bolkestein, Member of the European Commission in charge of the Internal Market, Taxation and Customs, spoke about The European Commission's Strategy on Accounting and Auditing.

His presentation covered use of IFRS in Europe, EU measures on statutory audits, and EU/US relations in this area. Download the (PDF 71k). An excerpt:

The Commission has promoted a strategy based on a principles-based approach to financial reporting, designed to reflect economic reality and give a true and fair view of the financial position and the performance of a company. At the heart of our strategy is the application, from 1 January 2005, of International Accounting Standards. I remain firmly committed to this strategy.... Nonetheless, as regards adoption and application of IAS a few stubborn issues remain to be resolved: in particular hedging of core deposits in the context of IAS 39 and the so-called 'insurance mismatch'. A European Consultative Group was recently set up to address these issues. Personally, I am still convinced that acceptable temporary solutions can be found in the short term, pending longer term work by the IASB. I have urged Sir David Tweedie to continue working in the short term with technical experts - around the clock if necessary - to try to find such appropriate solutions. One of the problems we have, unfortunately, is a lack of trust between the interested parties. Due process has not been optimal so far and must improve in future.

Global accounting standards as a tool for promoting democracy

04 Mar 2004

US Secretary of State Colin Powell took the opportunity of a recent Speech on democratic political development in Asia to urge the adoption of global accounting standards as a tool for promoting Asian democracy: "Private American business can help by promoting universal 'best practice' accounting and auditing standards.

Perhaps by teaching others, we can raise our own standards as well."

EFRAG endorses the 'improved' IASs

04 Mar 2004

The European Financial Reporting Advisory Group (EFRAG) has concluded that the revised IASs resulting from IASB's Improvements Project "meet the requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards" and, in a Letter to the European Commission (PDF 68k), said: "We believe that it is in the European interest to adopt the revised IASs and, accordingly, we recommend their adoption." .

The European Financial Reporting Advisory Group (EFRAG) has concluded that the revised IASs resulting from IASB's Improvements Project "meet the requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards" and, in a Letter to the European Commission (PDF 68k), said: "We believe that it is in the European interest to adopt the revised IASs and, accordingly, we recommend their adoption."

Update on Deloitte's IFRS e-learning

03 Mar 2004

We launched Deloitte's IFRS e-learning on 22 January 2004. We are making this education system available in the public interest without charge.

To date, over 12,000 modules have been downloaded by over 1,600 individual users from 115 countries – all in just six weeks. Click for Review. Here's an update on content:

  • On 1 March 2004 we posted the new IAS 16 module.
  • All modules are now based on the final IASs as revised in the Improvements Project (modules affected are IASs 1, 2, 8, 17, 21, 27, 28, 31, and 40)
  • Next modules due for release (planned for the end of March 2004) are IAS 7 and IAS 10

IAS 39 agenda project page expanded

03 Mar 2004

We have created separate sections on our IAS 39 revisions agenda project page for the Macro Hedging Amendments and the Fair Value Option Amendments. .

We have created separate sections on our IAS 39 revisions agenda project page for the Macro Hedging Amendments and the Fair Value Option Amendments.

Links to IFRS-related websites updated

02 Mar 2004

We have tested the links to IFRS-related websites on our comprehensive Links Page and fixed some broken ones.

If you find any errors or have an additional link to suggest, please Email Us.

Sarbanes-Oxley – Deloitte's point of view

02 Mar 2004

Dealing with the mandates of the Sarbanes-Oxley Act has proved something of a scramble for public companies.

And not just US companies, because the 1,400 non-US SEC registrants have to comply, and so do the thousands of foreign subs of US registrants. In the course of assisting with hundreds of section 404 readiness and other Sarbanes-Oxley-related projects, we have learned numerous lessons and gained valuable insights. The Deloitte (USA) publication (PDF 517k) reveals Deloitte's point of view on Sarbanes-Oxley compliance. Compliance is just one step on the bridge to excellence. Corporate leaders who embrace the "spirit of the law" – strong ethics, good governance, reliable reporting – can get a re-energized company and reassured investors.

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