Canada proposes audit convergence with ISAs

26 Nov 2005

The Canadian Auditing and Assurance Standards Board (AASB) has issued an invitation to comment on its proposed new standard-setting approach for the period 1 April 2006 to 31 March 2009. The proposed new approach envisions the convergence of Canadian Auditing and Assurance standards with the International Standards on Auditing (ISAs) and pronouncements of the International Auditing and Assurance Standards Board (IAASB) in the medium term.

Comments requested by 14 March 2006. Click to Download the Invitation to Comment titled Auditing and Assurance Standards in Canada–Maintaining high standards in a global environment: A new standard-setting approach (PDF 516k).

IFRS model financial statements - investment trusts

25 Nov 2005

Deloitte, in conjunction with the Association of Investment Trust Companies (AITC), has developed model consolidated annual IFRS financial statements for 2005 for investment trust company (ITC) groups.

The model statements assume, consistent with AITC recommendations, that equity and fixed-income investments are measured at fair value through profit and loss. Some investments are also classified as available for sale for illustrative purposes. These model statements do not illustrate an ITC parent company's separate financial statements. While they also do not illustrate an ITC's interim financial statements, many of the accounting issues faced will be common to both interim and annual financial statements. Click to download Deloitte's for the year ended 31 December 2005 (PDF 328k). You will find other model IFRS financial statements Here.

EU formally adopts various IFRSs

25 Nov 2005

By publication in the Official Journal of the European Union on 24 November 2005, (PDF 123k) of 8 November 2005 has been brought into law.

Regulation 1910/2005 amends Regulation (EC) No 1725/2003 (the 'Accounting Directive') to formally adopt the latest revisions to the following International Financial Reporting Standards: IFRSs 1 and 6; IASs 1, 16, 19, 24, 38, and 39; and IFRIC Interpretations 4 and 5.

SEC Commissioner discusses convergence

24 Nov 2005

In remarks at a conference sponsored by the Danish Ministry of Economic and Business Affairs in Copenhagen, US SEC Commissioner Cynthia A.

Glassman discussed various SEC initiatives affecting foreign issuers, including accounting convergence and the SEC's reconciliation. Click to (PDF 66k). An excerpt:

No speech to an international audience would be complete without a reference to the goal of international convergence of accounting standards. Since October 2002, the Financial Accounting Standards Board, the standard setter for U.S. GAAP, and the International Accounting Standards Board, the standard setter for IFRS, have been engaged in a project to converge U.S. GAAP and IFRS. I support the goals of this project, and was pleased to see a first draft of a joint standard on business combinations published in June.4 Although there will undoubtedly be transition issues, having one standard will be more efficient for issuers and more useful for investors.

Reconciliation is the other critical issue on the international front. As you well know, the Commission requires companies that use IFRS to reconcile their financial statements to U.S. GAAP in their filings with us. Don Nicolaisen, the Commission's former Chief Accountant, proposed a 'roadmap' to achieving the acceptance of IFRS in the U.S. without reconciliation. Under the roadmap, consistent interpretation, application and enforcement of IFRS around the world is a prerequisite to the Commission's consideration of eliminating the reconciliation requirement. Our staff has already begun a survey, but because IFRS is being implemented in many countries for the first time this year, the analysis is in its infancy. The staff will continue, however, to pursue the roadmap towards the elimination of the reconciliation requirement as quickly as possible.

IFRIC 7 on hyperinflation

24 Nov 2005

The International Financial Reporting Interpretations Committee has issued Interpretation 7 'Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies'.

IFRIC 7 contains guidance on how an entity would restate its financial statements pursuant to IAS 29 in the first year it identifies the existence of hyperinflation in the economy of its functional currency. The Interpretation is effective for annual periods beginning on or after 1 March 2006. Earlier application is encouraged. Click for:


Agenda for the IFRIC meeting 1 December

24 Nov 2005

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 1 December 2005 (one day only).

The agenda for the meeting is below:

Thursday 1 December 2005

  • Introduction and Administrative Matters
  • D16 Scope of IFRS 2 - Proposals for final Interpretation
  • Possible Draft Interpretation - Interim Reporting and Impairment of Goodwill and Investments in Equity Instruments
  • Recommendations by the Agenda Committee regarding requests for IFRIC agenda items.

International Accounting Education Standards Board

24 Nov 2005

At its meeting last week, the IFAC Council approved, effective immediately, changes to IFAC's Constitution that included changing the name of the Education Committee to the International Accounting Education Standards Board (IAESB).

The change was seen as necessary to reflect the Education Committee's authority to independently set standards and the equivalent level of legitimacy between it and other international standard setters. For information about the IAESB's pronouncements, proposals, and current activities, visit their website:

Advisory group on IASCF trustee selection

24 Nov 2005

The Trustees of the International Accounting Standards Committee (IASC) Foundation, under which the IASB operates, have formed a Trustee Appointments Advisory Group to help them in nominating and appointing qualified and interested individuals as Trustees.

Members of the Advisory Group are:
  • Jane Diplock, Chairman of the Executive Committee, International Organization of Securities Commissions
  • Roger Ferguson, Chairman, Financial Stability Forum
  • Donald Kaberuka, President, African Development Bank
  • Haruhiko Kuroda, President, Asian Development Bank
  • Luis Alberto Moreno, President, Inter-American Development Bank
  • Rodrigo de Rato y Figaredo, Managing Director, International Monetary Fund
  • Jean-Claude Trichet, President, European Central Bank
  • Paul Wolfowitz, President, World Bank
The ultimate decision on appointments rests with the Trustees. However, the Trustees will explain to the members of the Advisory Group the rationale for any decision contrary to reservations expressed by members of the Advisory Group. The Advisory Group will meet at least once annually, either in person or by conference call. The Chairman of the IASCF Trustees (currently Paul A. Volcker) will chair the meetings of the Advisory Group. Click for IASCF Press Release (PDF 70k).

Australian model special purpose financial report

23 Nov 2005

We have added to our Australia Page a downloadable model special purpose financial report.

In Australia, financial reports for periods beginning on or after 1 January 2005 must be prepared in conformity with Australian equivalents to IFRSs (A-IFRSs). This model illustrates a special purpose report on first-time adoption of A-IFRSs. Other model financial reports for 2005 on our Australia page are Annual Consolidated Financial Report, Concise Annual Report, and Half-yearly Financial Report.

New Global Offerings Services newsletter

23 Nov 2005

We have posted the (PDF 130k).

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.

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