IASB and Japan agree on convergence project

21 Jan 2005

The IASB and the Accounting Standards Board of Japan (ASBJ) will launch a joint project to reduce differences between IFRSs and Japanese accounting standards.

Specific elements of the agreement, as noted in the Press Release (PDF 17k) include:

  • Identify and assess differences in existing standards on the basis of the boards' respective conceptual frameworks or basic philosophies with the aim of reducing those differences where economic substance or market environments such as legal systems are equivalent.
  • Address the differences in their respective conceptual frameworks at a future time to be agreed by the boards.
  • The boards will consider their respective due process requirements in arriving at agreement.
  • The ASBJ will undertake a study to get an overall picture of major differences between Japanese accounting standards and IFRSs and will identify topics to be discussed.
  • Adopt a phased approach to the comparative reviews of differences in individual standards.
  • The scope of the first phase is standards in place as of 31 March 2004, excluding the following topics, which will be addressed in subsequent phases:
    • standards under review or intended to be reviewed in the joint projects between the IASB and the US Financial Accounting Standards Board (FASB).
    • standards that are divergent owing to differences in the respective conceptual frameworks or basic philosophies.
    • standards recently developed.
    • standards whose requirements are subject to legal restrictions or those currently considered inapplicable in Japan.

Notes from day two of the IASB's January 2005 meeting

21 Jan 2005

We have combined on a Single Page our notes from the IASB's regular monthly meeting in London on 19-21 January 2005. .

We have combined on a Single Page our notes from the IASB's regular monthly meeting in London on 19-21 January 2005.

US Senate will monitor IASB-FASB convergence

20 Jan 2005

The Chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, which has responsibility for oversight of the SEC and US financial institutions, has announced that the Committee's tentative agenda for 2005 will include " -->harmonisation of accounting standards between the FASB and IASB -->".

Click for (PDF 26k).

Summary of ARC December 2004 meeting

20 Jan 2005

The European Commission has released (PDF 44k) of the 20 December 2004 meeting of its Accounting Regulatory Committee.

The summary includes the following:
  • The ARC voted to recommend that the Commission endorse IFRS 2 Share-based Payment for use in Europe, with certain consequential amendments to previously endorsed IFRSs. ARC's weighted voting result (321 total potential votes) was that 23 Member States (302 votes) voted in favour of endorsing IFRS 2; one Member State (12 votes) abstained because of a reservation on the translation; and one Member State (7 votes) was not present.
  • An update on possible amendments to IAS 39
  • Views of Member States regarding the IASCF Constitution Review – including the comment that "the Chairman said that there is a growing concern in political circles about the IASB's lack of democratic accountability and the way it is carrying out its work".
  • The Accounting Regulatory Committee and the Contact Committee of the Accounting Directives would be merged from the beginning of 2005.
  • The ARC will next meet on 25 February 2005. Other 2005 meetings are planned for 8 April, 27 May, 8 July, 30 September, 28 October, and 2 December.

Notes from day one of the IASB's January 2005 meeting

20 Jan 2005

We have combined on a Single Page our notes from the IASB's regular monthly meeting in London on 19-21 January 2005. .

We have combined on a Single Page our notes from the IASB's regular monthly meeting in London on 19-21 January 2005.

Web-based technical update on IASs 7 and 19, IFRS 5

20 Jan 2005

The Deloitte London IFRS Centre of Excellence is running a monthly series of hour-long Internet-based IFRS technical updates, focusing on the most important international accounting standards and how they will affect UK companies.

The ninth Webcast was run on 20 January 2005 2004 and covered IAS 7 Cash Flow Statements, IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, and the recent amendment to IAS 19 Employee Benefits. To access the recording Click Here. The recording of each session will be available on this website for a period of at least 3 to 4 weeks from the date of the presentation. Links to past sessions may be found on our United Kingdom Page. The recording is no longer available online.

EFRAG recommends adoption of IFRIC 2 in Europe

18 Jan 2005

The European Financial Reporting Advisory Group has recommended that the European Commission adopt IFRIC 2 Members' Shares in Co-operative Entities and Similar Instruments for use in Europe.

Click for EFRAG Letter (PDF 13k).

NIA urges simplified disclosure of IFRS transition

18 Jan 2005

Australia's National Institute of Accountants has (PDF 15k) that Australian companies clearly explain the impact of adopting IFRSs to their shareholders.

Australia is adopting IFRS 'equivalents' effective in 2005. While Australian accounting standards require companies to explain the impact of moving to IFRSs in their financial statements, based on a review of disclosures made by companies whose financial years ended in mid-2004, the NIA believes that "most shareholders would have some difficulty understanding what the changes mean."

European insurers favour IAS 39 full fair value option

17 Jan 2005

In a (PDF 279k), the Comité Européen des Assurances (the European Insurance Association) has expressed its support for allowing European companies following IFRSs to measure financial assets and liabilities at fair value with the fair value changes recognised in measuring profit or loss (the IAS 39 'fair value option').

Currently, IAS 39 as adopted by the European Commission prohibits European companies from applying the fair value option to liabilities. The CEA press release notes that "most European insurers make frequent use of this option for both financial assets and liabilities as a tool for providing more relevant information and simplifying the processes. They have been preparing for IAS 39 in the version including the unlimited fair value option."

'Q4 in Review' Accounting Roundup is posted

16 Jan 2005

We have posted (PDF 1,136k) – a quarterly edition of the Accounting Roundup newsletter from Deloitte & Touche LLP (USA) that summarizes selected recent accounting and financial reporting developments and provides Internet links to related content.

The articles included in this edition were drawn primarily from issues of Accounting Roundup published in the fourth quarter of 2004, and have been updated where appropriate.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.