February

European Union (old) Image

EU regulators will study reporting requirements

12 Feb 2006

The three main committees of European Union financial regulators – the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS), and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) – have published a common cross-sector work programme for 2006. The main goal of this supervisory cooperation is to enhance consistency in implementing EU legislation across financial sectors.

The work programme includes an examination of reporting requirements, including IFRSs:

The Committees will request input from relevant market participants to take stock of potential inconsistencies in reporting requirements stemming from sectoral EU directives applying to European supervised entities and market participants, taking into account IFRS. The Committees aim at presenting a first result of this inventory within the second half of 2006. Based on this inventory, future work may be proposed.

Click for (PDF 33k) and related (PDF 108k). CESR, CEBS, and CEIOPS are sometimes referred to as the '3 Level 3' regulators or '3L3'.
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IFAC paper on auditing sustainability reports

11 Feb 2006

The International Federation of Accountants (IFAC) has issued a consultation paper that explores the assurance aspects of the Global Reporting Initiative's (GRI's) proposed new Sustainability Reporting Guidelines (G3).

The GRI, which develops global reporting guidelines on the economic, environmental, and social performance of organisations, has released draft guidelines designed to enhance the comparability, clarity, ease of use, and assurability of sustainability reports. IFAC's consultation paper, Assurance Aspects of G3 - The Global Reporting Initiative's 2006 Draft Sustainability Reporting Guidelines, explores issues in the proposed G3 Guidelines that specifically relate to assurance reporting. The paper is aimed primarily at professional accountants with some familiarity with sustainability assurance. IFAC requests comments by 31 March 2006. Click to download:
EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG concerns on IASB measurement paper

11 Feb 2006

The European Financial Reporting Advisory Group (EFRAG) has invited comments on its draft response to the IASB Discussion Paper Measurement Bases for Financial Accounting - Measurement on Initial Recognition.

In its draft response, EFRAG expresses "a number of fundamental concerns regarding the reasoning and conclusions reached in the paper", including the following:
  • The paper's exclusive focus on initial measurement in isolation from subsequent measurement.
  • The "basic assumption... that perfect markets (or at the very least active and liquid markets that involve low transaction costs) exist for every asset and liability". In EFRAG's view this is the exception rather than the norm.
  • The necessity to decide on financial statement concepts of financial performance and financial position before addressing measurement issues.
  • Lack of evidence for the superiority of market value measurement objectives over entity-specific measurement objectives. "If the arguments in the paper are the only arguments in favour that exist and have been expressed in the paper in the best way possible, we do not understand how the paper could have reached the conclusions it has."
Click to download EFRAG's Draft Letter (PDF 100k). EFRAG requests comments by 1 May 2006.
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Interview on a range of IFRS and SME issues

10 Feb 2006

We have posted an Interview with Paul Pacter (PDF 399k), Deloitte director and IAS Plus Webmaster, published in The Accountant (Malta) Winter 2005 issue.

The interview covered IASB standards for small and medium-sized entities and other IFRS-related issues including 'balance-sheet orientation', user needs, relevance vs. reliability, the 'stable platform' of IFRSs, and prospects for change over the next ten years. Paul has also written about Accounting Standards in 2015 (PDF 267k) in A Plus, the magazine of the Hong Kong Institute of CPAs.
United States & European Union (old) Image

Eliminating the IFRS reconciliation in the USA

10 Feb 2006

European Union Internal Markets Commissioner Charlie McCreevy and US Securities and Exchange Commission Chairman Christopher Cox met in Washington on 8 February 2006. They discussed, among other things, progress toward eliminating the need for reconciliation between International Financial Reporting Standards and US Generally Accepted Accounting Principles (GAAP) in SEC filings by non-US IFRS issuers.

Both the EC and the SEC agreed that, for the reconciliation to be eliminated, regulatory procedures need to be in place in a non-US SEC registrant's home country to ensure that IFRSs are applied and interpreted faithfully and consistently. Work on those procedures in the EU is underway. Click for:
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New Global Offerings Services newsletter

10 Feb 2006

We have posted the (PDF 228k).

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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Special IAS Plus newsletter on operating segments

10 Feb 2006

On 19 January 2006, the IASB published Exposure Draft 8 Operating Segments.

ED 8 would replace IAS 14 and align segment reporting with the requirements of FASB's SFAS 131 Disclosures about Segments of an Enterprise and Related Information. Deloitte has published a (PDF 69k) explaining ED 8. You will find links to all past IAS Plus newsletters Here.
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Agenda for Standards Advisory Council meeting

09 Feb 2006

The Standards Advisory Council will meet at the Renaissance Chancery Court Hotel in London on Monday and Tuesday, 27-28 February 2006. Presented below is the agenda for the SAC meeting.

The February 2006 Board meeting agenda is Here.

27-28 February 2006, London

Monday, 27 February 2006

  • Introductory remarks - new Chairman of Trustees
  • Report from Trustees
  • Discussion of operations and consultation procedures
    • The agenda setting process, including setting priorities and cost/benefit analysis
    • Consultation with constituents - including SAC, national standard-setters, analysts, preparers, etc
    • Implementation and interpretations
  • Discussion of IASB work programme and convergence
    • Report from IASB Chairman
    • Work programme
    • Convergence with US GAAP
  • Business Combinations

Tuesday, 28 February 2006 (morning only)

  • Conceptual Framework
Accounting Roundup Image

January 2006 Accounting Roundup posted

07 Feb 2006

We have posted the (PDF 309k) published by Deloitte & Touche LLP (USA).

Topics covered in this issue include:

  • FASB Developments including a proposed statement on fair value option for financial instruments; and proposed FSP on classification of employee share options.
  • EITF Developments including accounting for stripping costs in the mining industry.
  • GASB Developments including a proposed statement on pollution remediation obligations.
  • AICPA Developments including technical practice aids on nonregistered investment partnerships; and a pSSAE on reporting on internal control.
  • SEC Developments including proposed changes to the disclosure requirements for executive compensation; and SEC incentives for companies to file financial data using XBRL.
You will find past issues of Accounting Roundup Here.
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New Australian Accounting Alert on operating segments

07 Feb 2006

Deloitte (Australia) has published Operating Segments Exposure Draft Issued (PDF 27k).

This Accounting Alert provides an Australian perspective on some of the key proposals and their impacts. Links to all past Australian Accounting Alerts are Here.

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