May

April 2006 Accounting Roundup posted

07 May 2006

We have posted the (PDF 285k) published by Deloitte & Touche LLP (USA).

Topics covered in this issue include:

  • FASB developments including a final FSP on Determining the Variability to Be Considered in Applying Interpretation 46(R).
  • GASB developments including a Preliminary Views Document on Accounting and Financial Reporting for Derivatives.
  • AICPA developments including an AICPA Alert Updating the SEC's Position Regarding Changes to the Statement of Cash Flows Relating to Discontinued Operations; and Technical Practice Aids on Consolidation of Variable Interest Entities.
  • SEC developments including SEC approval of PCAOB's Rules Concerning Independence, Tax Services, and Contingent Fees; Final Report of the SEC Advisory Committee on Smaller Public Companies; and SEC plan for electronic notification of registration statement effectiveness.
  • International developments including IASB's Statement on Its Working Relationship With Other Standard Setters and the IASB Due Process Handbook.
You will find past issues of Accounting Roundup Here.

IASC Foundation 2005 annual report is available

06 May 2006

The IASC Foundation has published its report on its activities in 2005. The report also contains audited financial statements and other information, including a report on the IASB's activities.

To download the report from the IASB's website Click Here (PDF 863k).

Agreement between US SEC and China CSRC

04 May 2006

The United States Securities and Exchange Commission (SEC) and the China Securities Regulatory Commission (CSRC) announced today a new relationship to increase their co-operation and collaboration through an enhanced bilateral dialogue.

Meeting at SEC headquarters in Washington, D.C., SEC Chairman Christopher Cox and CSRC Chairman Shang Fulin presented terms of reference that establish the structure of this enhanced dialogue and discussion subjects for the agenda during 2006. Several aspects of the dialogue relate to financial reporting. The new dialogue has three primary objectives:
  • to identify and discuss securities markets regulatory developments of common interest, particularly those relevant to reporting requirements for public companies listed in one another's markets;
  • to improve cooperation and the exchange of information in cross-border securities enforcement matters; and
  • to continue and expand upon the existing program of training and technical assistance provided by the SEC to the CSRC.
In setting out the areas of dialogue for the agenda in 2006, the following regulatory issues for discussion were identified:
  • corporate governance reforms, including requirements for audit committees, auditor independence and internal controls over financial reporting;
  • convergence of national accounting standards with International Financial Reporting Standards; and
  • the use of information technology, including interactive data tagging systems, to enhance the usefulness of reported of financial information.
Click for Press Release (PDF 39k).

Textbook on Australian accounting standards

04 May 2006

Paul Pacter, a director in Deloitte's IFRS Global Office and webmaster of IASPlus, is co-author of a university textbook released in April 2006 – Australian Accounting Standards, published by John Wiley and Sons, Australia.

The focus of this 1,110-page text is on the application of accounting standards issued by the Australian Accounting Standards Board. The book has been written for intermediate and advanced financial reporting courses, at both undergraduate and postgraduate level. Paul's co-authors are Ruth Picker, Ken Leo, Keith Alfredson, Jeannie Radford, and Victoria Wise. For international orders, email custservice@johnwiley.com.au (cite ISBN-10: 047081148X). Paul is also co-author of another Wiley textbook Applying International Accounting Standards. The second edition of that book will be published later this year, retitled Applying International Financial Reporting Standards.

Joint forum report on regulatory and market differences

04 May 2006

The Joint Forum – a consortium of the global associations of bank, securities, and insurance regulators – has published Regulatory and Market Differences: Issues and Observations.

The report presents the findings of a review of differences in the regulatory approaches to risk across banking, securities, and insurance sectors. One section of the report discusses market practices and differences and similarities in regulatory reporting requirements.

The Joint Forum determined that cross-sectoral convergence in both market practice and regulatory approaches is occurring naturally and can be expected to continue as a result of a number of trends and developments highlighted in the paper. At the same time, however, the Joint Forum recognises that cross-sectoral convergence in regulatory approaches is not desirable in every instance. There may be good reasons for sectoral differences in regulatory approaches to the same risk.

Click to download:

Agenda for IFRIC meeting 11-12 May 2006

03 May 2006

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 11 May and Friday 12 May 2006. The agenda for the meeting is below:11-12 May 2006, London Thursday 11 May 2006 Introduction - Opening remarks; administrative matters; minutes of the March 2006 IFRIC meeting IAS 17 Leases – Recognition of contingent rentals Customer Loyalty Programmes - Discussion of text for a Draft Interpretation IAS 19 Post-employment Benefits - The effect of a minimum funding requirement on the asset ceiling – Discussion of text for a Draft Interpretation Service Concession Arrangements: Discussion of text for an Interpretation Friday 12 May 2006 IAS 39 – Securitisations: Derecognition of groups of financial assets IFRIC D17 - IFRS 2: Group and Treasury Share Transactions IFRIC D18 - Interim Reporting and Impairment – Review of responses and staff proposals Review of Tentative agenda decisions published in March 2006 IFRIC Update IFRS 2 Share-based Payment – Scope of IFRS 2: Share plans with cash alternative at the discretion of the entity IFRS 2 Share-based Payment – Share plans with cash alternative at the discretion of the employees: grant date and vesting periods IFRS 2 Share-based Payment – Fair value measurement of a post-vesting transfer restriction (including comment letters) Recommendations by Agenda Committee regarding requests for IFRIC agenda items IFRS 2 Share-based Payment – Employee benefit trusts IAS 18 Revenue – Up-front revenue recognition IAS 32 Financial Instruments: Presentation – Classification of a financial instrument as liability or equity IAS 32 Financial Instruments: Presentation – Puts and forwards held by minority interests IFRS 3 Business Combinations – Are puts or forwards received by minority interests in a business combination contingent consideration IAS 39 Financial Instruments: Recognition and Measurement – Definition of a derivative: Indexation on own EBITDA or own revenue IAS 32 Financial Instruments: Presentation – Foreign Currency Instruments exchangeable into Equity Instruments of the Parent Entity of the Issuer SIC 12 Consolidation - Special Purpose Entities – Relinquishment of control IAS 11 Construction Contracts/ IAS 18 Revenue – Allocation of profit in unsegmented contracts .

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 11 May and Friday 12 May 2006. The agenda for the meeting is below:

11-12 May 2006, London

Thursday 11 May 2006

Friday 12 May 2006

  • IAS 39 – Securitisations: Derecognition of groups of financial assets
  • IFRIC D17 - IFRS 2: Group and Treasury Share Transactions
  • IFRIC D18 - Interim Reporting and Impairment – Review of responses and staff proposals
  • Review of Tentative agenda decisions published in March 2006 IFRIC Update
    • IFRS 2 Share-based Payment – Scope of IFRS 2: Share plans with cash alternative at the discretion of the entity
    • IFRS 2 Share-based Payment – Share plans with cash alternative at the discretion of the employees: grant date and vesting periods
    • IFRS 2 Share-based Payment – Fair value measurement of a post-vesting transfer restriction (including comment letters)
  • Recommendations by Agenda Committee regarding requests for IFRIC agenda items
    • IFRS 2 Share-based Payment – Employee benefit trusts
    • IAS 18 Revenue – Up-front revenue recognition
    • IAS 32 Financial Instruments: Presentation – Classification of a financial instrument as liability or equity
    • IAS 32 Financial Instruments: Presentation – Puts and forwards held by minority interests
    • IFRS 3 Business Combinations – Are puts or forwards received by minority interests in a business combination contingent consideration
    • IAS 39 Financial Instruments: Recognition and Measurement – Definition of a derivative: Indexation on own EBITDA or own revenue
    • IAS 32 Financial Instruments: Presentation – Foreign Currency Instruments exchangeable into Equity Instruments of the Parent Entity of the Issuer
    • SIC 12 Consolidation - Special Purpose Entities – Relinquishment of control
    • IAS 11 Construction Contracts/ IAS 18 Revenue – Allocation of profit in unsegmented contracts

New IASC Foundation Trustee from Poland

03 May 2006

Alicja Kornasiewicz of Poland has been named a Trustee of the IASC Foundation, under which the IASB operates.

Mrs Kornasiewicz will complete the term of Jens Røder, who retired following the Trustees' meeting in March 2006. Mrs Kornasiewicz's term expires on 31 December 2007. Mrs Kornasiewicz is a member of the Board of CA IB Corporate Finance Gmbh, Vienna, and serves as CEO and Chairman of CA IB Group in Poland. She is also Chairman of the Supervisory Board of Bank BPH S.A., the third largest bank in Poland. Previously, until October 2000, Mrs Kornasiewicz was Secretary of State - First Deputy Minister of the Ministry of the State Treasury of Poland. Click for Press Release (PDF 53k). Click for Complete List of IASCF Trustees.

Agenda project pages updated

03 May 2006

We have updated the following agenda project pages to reflect the discussions and the decisions reached during the IASB's April Board meeting (24-26 April 2006) and the joint IASB-FASB meeting (27-28 April 2006). Business Combinations II Conceptual Framework Consolidations, including special purpose entities Financial Instruments - Comprehensive Financial Instruments Puttable at Fair Value Insurance Contracts Leases Liabilities and Equity Revenue Recognition .

We have updated the following agenda project pages to reflect the discussions and the decisions reached during the IASB's April Board meeting (24-26 April 2006) and the joint IASB-FASB meeting (27-28 April 2006).

Independent chair for IFAC's ethics advisory panel

02 May 2006

Richard Fleck has been appointed as the first independent chair of the Consultative Advisory Group (CAG) to the International Ethics Standards Board for Accountants (IESBA), an independent standard setter within the IFAC structure.

Mr. Fleck is a partner with the international law firm of Herbert Smith. His three-year term begins May 2006. Click for Press Release (PDF 82k).

PCAOB plan for 2006 audit firm inspections

02 May 2006

The US Public Company Accounting Oversight Board has released a statement regarding its approach to inspections of the independent auditing firms' audits of internal control over financial reporting.

Those inspections will begin this month. The PCAOB said its inspectors will evaluate:
  • the degree to which the audit of internal control over financial reporting and the audit of financial statements were performed as a single, integrated and mutually reinforcing process;
  • whether auditors use a top-down approach in which company-level controls were identified as the first step in planning the audit;
  • whether auditors properly assessed risk and used a risk-based approach to determine the nature, timing, and extent of internal control testing; and
  • whether auditors took full advantage of the opportunities available to use the work of others, such as the company's internal audit staff.
The 2006 inspections will include the annual inspections of the nine firms – eight US and one Canadian – that audit more than 100 public companies. In addition, the PCAOB will continue its three-year cycle of inspections of smaller firms that audit at least one public company, including non-US firms. In 2005, the PCAOB inspected 281 firms, including 16 non-US firms. Click for:

Correction list for hyphenation

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