May

SEC statement and report on internal controls

17 May 2005

The US Securities and Exchange Commission has released a statement about the first year's experience in applying the internal control provisions (Section 404) of the Sarbanes-Oxley Act.

The two main conclusions in the Commission's statement are:
  • Compliance with Section 404 is producing benefits, including a heightened focus on internal controls at the top levels of public companies.
  • Implementation in the first year also resulted in significant costs, and the process can be made more effective and efficient.
In April, the Commission asked the SEC staff to consider whether additional guidance and clarification of certain issues was appropriate. The staff has now released a Staff Statement on Management's Report on Internal Control Over Financial Reporting to provide such guidance. In releasing the staff report, the Commission noted that "there is a zone of reasonable conduct by companies that should be recognised as acceptable in the implementation of Section 404." Also, the US Public Company Accounting Oversight Board staff has issued related question-and-answer guidance. Click to download:

Notes from Board meeting 16 May 2005

17 May 2005

We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the IASB's May 2005 Board meeting onto a Separate Page. .

We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the IASB's May 2005 Board meeting onto a Separate Page.

CILEA sees a key need for IASB SME standards

17 May 2005

The Board of the Committee for Integration of Latino Europe and America (CILEA), a body representing 24 economic and accounting professional organisations of 18 Latin European and American countries, has called on the IASB to develop standards for small and medium-sized entities "to stimulate the creation and the development of a basic entrepreneurial activity" and, at the same time, "assure an effective corporate control system to guarantee the reliability of accounting data." Click for Press Release (PDF 325k). .

The Board of the Committee for Integration of Latino Europe and America (CILEA), a body representing 24 economic and accounting professional organisations of 18 Latin European and American countries, has called on the IASB to develop standards for small and medium-sized entities "to stimulate the creation and the development of a basic entrepreneurial activity" and, at the same time, "assure an effective corporate control system to guarantee the reliability of accounting data." Click for Press Release (PDF 325k).

Benefits for Australia in EC-SEC agreement

14 May 2005

The Australian Securities & Investments Commission (ASIC) has expressed support for the agreement between the US Securities and Exchange Commission (SEC) and the European Commission on a 'roadmap' toward eliminating the current SEC reconciliation between IFRSs and US GAAP.

ASIC sees this as beneficial for Australia because Australian companies listed in the United States would no longer have to prepare the reconciliation. Further, since Australia has adopted IFRS equivalents, "it will also encourage US investment in the Australian capital market and facilitate Australian companies access to US finance if IFRS and US GAAP financial reports are determined to be convergent and provide comparable high quality financial reporting. Click for (PDF 44k).

 

CFA Institute corporate governance manual

13 May 2005

CFA Institute has published The Corporate Governance of Listed Companies: A Manual for Investors, a comprehensive guide to help analysts and investors around the world assess a company's corporate governance policies and the associated risks they need to consider before making investment decisions.

The manual also can be used by securities issuers to develop a better understanding of what investors are looking for in well-governed companies. Specifically, the manual lists what investors and shareowners should consider in terms of board practices, management practices, and shareowner rights as they evaluate whether the company's corporate governance structure creates risks that could affect shareowner wealth. Click to download:

*Copyright 2005 CFA Institute. Reproduced and republished from The Corporate Governance of Listed Companies: A Manual for Investors with permission from CFA Institute. All rights reserved.

Where did our most recent visitors come from?

13 May 2005

Are you curious where the most recent visitors to IAS Plus came from? Take a Look at a Map in Real Time.

Allow a few seconds for download. If you think there's no interest in IFRSs in the United States, check this map during US business/evening hours.

New Global Offerings Services newsletter

13 May 2005

We have posted the (PDF 305k).

Global Offerings Services is a global team of Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. Past GOs Newsletters are Here.

EFRAG supports proposed amendments to IFRSs 1 and 6

12 May 2005

EFRAG has invited comments (by 31 May 2005) on its Draft Letter to the IASB concerning the IASB's proposed small amendments to IFRS 6 and IFRS 1. The amendments would clarify that an entity that both (a) adopts IFRSs for the first time before 1 January 2006 and (b) applies IFRS 6 before that date is exempted not only from providing comparative prior-period disclosures but also from applying the recognition and measurement requirements of IFRS 6 in the prior comparative period.

EFRAG supports the IASB proposal.

New comprehensive China accounting standards section

12 May 2005

Please visit our new section presenting a Comprehensive Overview of Chinese Accounting Standards (CAS), including: .

Please visit our new section presenting a Comprehensive Overview of Chinese Accounting Standards (CAS), including:

  • History of development of CAS
  • China Accounting Law
  • English translations of all standards
  • English translation of the comprehensive Accounting System for Business Enterprises
  • Accounting guidelines for specific industries
  • Other accounting pronouncements
  • Accounting System for Financial Institutions
  • Accounting System for Small Business Enterprises
  • China's movement towards convergence with IFRSs and challenges
We will announce additions to this section in the coming months.

IASCF invites nominations for SAC chairman

11 May 2005

The Trustees of the IASC Foundation, under which the IASB operates, have invited applications for a part-time chairman of the IASB's Standards Advisory Council (SAC).

Heretofore, under the IASCF constitution, the Chairman of the IASB was also formally the chair of SAC, though one of the SAC members has presided at the meetings. The Trustees are changing this to have an independent SAC chairman. The deadline for applications is 8 June. Click for Press Release (31k).

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.