2005

Sir David Tweedie (50x80) Image

The most influential person in the accounting profession

07 Jan 2005

IASB Chairman Sir David Tweedie heads the list of the 50 Most Influential Figures in the Accounting Profession in the UK in Accountancy Age, 6 January 2005. Sir David has chaired the IASB since its inception in 2001. Before that he chaired the UK Accounting Standards Board (1990-2000) and was a UK representative on the International Accounting Standards Committee, predecessor of the IASB.

He was also a university lecturer and KPMG technical partner in his native Scotland.
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40% of audit firms registered with PCAOB are non-US

07 Jan 2005

As of 5 January 2005, 1,415 public accounting firms have registered with the US Public Company Accounting Oversight Board (PCAOB) to be allowed to audit the financial statements of US public companies.

Of those, approximately 540 (nearly 40%) are non-US audit firms from more than 70 countries. The Board has approved a budget of US$136.1 million for calendar 2005. The budget projects a 50% staff increase by the end of 2005 over the 261 staff at the end of 2004. Click for:
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IASC-IASB chronology is updated

06 Jan 2005

We have updated our Chronology of the IASC and IASB to reflect events that transpired during 2004. The chronology covers events from 1966 to date. .

We have updated our Chronology of the IASC and IASB to reflect events that transpired during 2004. The chronology covers events from 1966 to date.

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ASBJ issues stock options exposure draft

06 Jan 2005

On 28 December 2004, the Accounting Standards Board of Japan issued Exposure Draft No.3 Accounting Standard for Stock Options and Others.

Like IFRS 2 Share-based Payment, ED3 proposes to require an entity to recognise compensation expense for stock options issued to employees based on grant-date fair value, spread over the vesting period as consideration for receiving goods or services. ED3 also proposes to require an entity to account for its grant of stock options to non-employees based on the fair value of either the stock options or the goods or services acquired. In the balance sheet, stock options would be presented as 'stock acquisition rights' classified as 'mezzanine' between liability and equity until exercised. ED3 covers equity-settled share-based payment transactions but does not cover cash-settled share-based payment transactions. In addition, ED3 proposes to allow unlisted companies to measure options at their intrinsic value if they cannot reliably estimate fair value. The standard would be effective for financial years beginning on or after 1 April 2006. Comment deadline is 28 February 2005. Here is the Link to the ED in Japanese.
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Newsletter from Deloitte Global Offerings Services

06 Jan 2005

We have posted the November-December 2004 edition of the – a US reporting newsletter for non-US based companies (PDF 323k).

Deloitte's Global Offerings Services group comprises a global team of practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (i.e., US GAAP and IFRS) and in complying with the SEC's financial reporting rules. Links to past GOs Newsletters are Here.
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FEI top 10 financial reporting issues for 2005

06 Jan 2005

Financial Executives International has compiled a list of the Top 10 Financial Reporting Challenges for 2005.

While the list is written primarily in a US reporting context, nearly all of the challenges on the list relate to IASB projects as well:
  • Stock Options (SFAS 123 and IFRS 2).
  • Internal Controls.
  • Revenue recognition (a joint IASB-FASB project).
  • Uncertain tax positions (FASB and IASB are working to converge their income tax standards).
  • Unremitted foreign earnings (FASB and IASB are working to converge their income tax standards).
  • Business Combinations (a joint IASB-FASB project).
  • Inventory costs (FASB has issued Statement 151 in late 2004 to converge with IAS 2).
  • Off-balance-sheet arrangements disclosures.
  • XBRL (an IFRS Taxonomy has been developed).
  • MD&A; guidance (an IASB research project).
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EU publishes endorsed IFRSs

05 Jan 2005

The European Union has published Commission Regulations in the Official Journal of the European Union on 31 December 2004, thereby formally making certain improved IASs and new IFRSs part of European law.

The regulations are:

 

  • Commission Regulation (EC) No 2238/2004 of 29 December 2004 amending Regulation (EC) No 1725/2003 adopting certain IFRSs (the ones revised in the IASB's Improvements Project) in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as regards IASs IFRS 1, IASs Nos 1 to 10, 12 to 17, 19 to 24, 27 to 38, 40 and 41 and SIC Nos 1 to 7, 11 to 14, 18 to 27, and 30 to 33. The regulation includes the Full Text of the Following Standards (PDF 1,410k): IASs 1, 2, 8, 10, 16, 17, 21, 24, 27, 28, 31, 33, and 40.
  • Commission Regulation (EC) No 2237/2004 of 29 December 2004 amending Regulation (EC) No 1725/2003 adopting certain IFRSs in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as regards IAS No 32 and IFRIC 1. The regulation includes the Full Text of the Following Standard and Interpretation (PDF 323k): IAS 32 and IFRIC 1.
  • Commission Regulation (EC) No 2236/2004 of 29 December 2004 amending Regulation (EC) No 1725/2003 adopting certain IFRSs in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standards (IFRSs) Nos 1, 3 to 5, International Accounting Standards (IASs) Nos 1, 10, 12, 14, 16 to 19, 22, 27, 28, 31 to 41 and the SIC Nos 9, 22, 28 and 32. The regulation includes the Full Text of the following Standards and Interpretations (PDF 1,028k): IFRSs 3, 4, and 5 and IASs 36 and 38.

Please note that 'full text' means the body of the standard and does not include the introduction, implementation guidance, or basis for conclusions.

Here is the Link to Standards and Interpretations Previously Adopted by the EC. All of the standards and interpretations are available in all of the official EU languages in the Official Journal.

 

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ASBJ comments on CESR 'equivalence' assessment

05 Jan 2005

The Accounting Standards Board of Japan has submitted its (PDF 205k) to the Committee of European Securities Regulators' October 2004 Concept Paper on Equivalence of Certain Third Country GAAP and on Description of Certain Third Countries' Mechanisms for Enforcement of Financial Information.

CESR had developed the paper in response to a request from the European Commission for advice on equivalence of Canadian, Japanese, and United States GAAPs with IFRSs. The ASBJ's response suggests that:

The global assessment of the equivalence of third country GAAP should not be conducted on a basis of whether third country GAAP is identical to IAS/IFRS or not. Rather than that, the rationality underlying the differences should be considered.

You will find EFRAG's response in our news story of 4 January 2005.
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Deloitte member-firm revenue is US$16.4 billion in 2004

04 Jan 2005

Composite revenue results of the member firms of Deloitte Touche Tohmatsu for fiscal 2004 show an 8.6 percent increase over 2003. After excluding divested practices, revenue growth for the continuing businesses was 11.1 percent.

Composite revenue reported was US$16.4 billion compared with US$15.1 billion in FY03. For the first time ever, member firms from Europe/Middle East/Africa and Asia-Pacific/Japan contributed half of this, and member firm tax practices led the way with 60 percent growth in the last two years. Click for Press Release.
EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG comments on CESR 'equivalence' assessment

04 Jan 2005

The European Financial Reporting Advisory Group (EFRAG) has submitted its letter to the Committee of European Securities Regulators (CESR) in response to CESR's October 2004 Concept Paper on Equivalence of Certain Third Country GAAP and on Description of Certain Third Countries' Mechanisms for Enforcement of Financial Information.

CESR had developed the paper in response to a request from the European Commission for advice on equivalence of Canadian, Japanese, and United States GAAPs with IFRSs. The EC also asked CESR to describe the mechanisms existing in those countries and others for the enforcement of standards for financial information. The concept paper sets out the basis on which CESR will approach its analysis. EFRAG's response expresses support for CESR's objectives but also notes that:

The meaning of 'significant differences' in accounting standards could be clarified by improving the definition in the concept paper. We believe it is important to find and evaluate all existing differences between IAS/IFRS and third country GAAP, to be able to conclude whether these can result in 'significant differences'. Differences may have very different impacts on different entities within one industry and may also have different impacts on entities in different industries. We understand the practical difficulties, but we are concerned that equivalence may be assessed at a too high level and therefore differences that might lead to significant differences may not be assessed at all. We therefore recommend a more thorough analysis of the differences.

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