Deloitte letter on day 1 profit disclosures

02 Jun 2005

Deloitte has submitted a (PDF 34k).

The proposed drafting would be included in IFRS 7 Financial Instruments: Disclosures, scheduled for release later this month.

We generally agree with the proposed drafting of the "Day 1 gain or loss" disclosures to be included in IFRS 7 Financial Instruments: Disclosures. However, we believe an entity should be required to determine categories of instruments for which the "Day 1 gains or losses" issue is relevant (for example, derivative commodity contracts and structured financial products). A requirement to describe these categories should be inserted into IFRS 7.

EFRAG staff comments on day 1 profit disclosures

02 Jun 2005

EFRAG staff has submitted comments to the IASB on the drafting of "day 1 profit disclosures" to be included in the forthcoming IFRS 7 Financial Instruments: Disclosures.

To meet the deadline for comments, EFRAG's Letter (PDF 16k) was not discussed by EFRAG's Technical Experts Group and was not subject to a public consultation process. It is, however, based on advice from EFRAG's Financial Instruments Working Group.

SEC Chairman Donaldson will step down

02 Jun 2005

US Securities and Exchange Commission Chairman William H.

Donaldson, 74, has resigned effective 30 June 2005. He was appointed in 2003. "When I assumed the Chairmanship of the Securities and Exchange Commission roughly two and one-half years ago, public confidence was severely undermined, reflecting the corporate and financial scandals that had shaken the nation. Thanks to the dedicated efforts of the many professionals who serve at the SEC, this period has represented an extraordinarily active and effective time for the Agency. It may well be remembered as the most consequential and productive period in the Commission's history since its founding in 1934", Mr. Donaldson said.

Statistics database updated

02 Jun 2005

We have updated our Database of Statistics that, we believe, provide clear evidence of the globalisation of the world's capital markets and of the need for global financial reporting standards. .

We have updated our Database of Statistics that, we believe, provide clear evidence of the globalisation of the world's capital markets and of the need for global financial reporting standards.

New Accounting Roundup newsletter posted

02 Jun 2005

We have posted the (PDF 1,534k) from Deloitte & Touche (United States).

This issue includes:
  • FASB developments - including a proposed GAAP hierarchy and decisions at FASB meetings on 21, 22, 27 April and 11, 17 May
  • AICPA developments - including an exposure draft on the meaning of 'present fairly'
  • SEC developments - including guidance on internal controls and announcement on release of staff response letters
  • PCAOB developments - including guidance on audits of internal controls
  • International developments - including IASB's proposed amendment to IFRS 6 and IFRIC D16 and D17
All past issues of Accounting Roundup are Here.

EFRAG proposed views on IFRICs 16 and 17

01 Jun 2005

The European Financial Reporting Advisory Group has invited comments on its preliminary views on IFRIC D16 Scope of IFRS 2 and on IFRIC D17 IFRS 2 – Group and Treasury Share Transactions.

Comments are requested by 27 June 2005. You will find the draft letters on EFRAG's Website. Summaries of Draft Interpretations are Here.

Challenges in adopting IFRSs

01 Jun 2005

We have posted a presentation titled Learning the Language: Challenges Being Encountered in the Adoption of IFRS (PDF 32k) by Piet Hoogendoorn, Chairman of the Deloitte Touche Tohmatsu Board of Directors, at a conference in Dubai on 29 May 2005. In addition to discussing the challenges of IFRSs, such as interpretation, consistent application, enforcement, and education, Mr.

Hoogendoorn reviewed the benefits of using IFRSs. An excerpt:

This brings us to one of the greatest benefits of IFRS – that it should ultimately lower the cost of capital. First, because the internal costs of compliance – all the accounting systems necessary to maintain the same basic information according to different accounting standards – will be reduced. More of the company's productive capacity can be spent on being productive, rather than on compliance. Second, because investors, analysts, and regulators will have to know only one or two accounting languages, they should be able to price securities more efficiently. As they become familiar with the language of IFRS, and as more companies report using IFRS, users, especially analysts, will be able to compare companies from different countries directly, without making rough and ready adjustments.

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