June

IFAC (International Federation of Accountants) (lt gray) Image

IFAC standards for accountants in business

13 Jun 2007

The Professional Accountants in Business Committee of the International Federation of Accountants has released the following documents: An exposure draft of the Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, which sets out the objective, scope, and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance.

  • An exposure draft of the Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, which sets out the objective, scope, and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types. Comment deadline is 12 September 2007.
  • The first International Good Practice Guidance Defining and Developing an Effective Code of Conduct for Organizations. This guidance will assist professional accountants and their organizations in developing and implementing a code of conduct within a values-based culture.
  • An exposure draft of a proposed International Management Accounting Statement titled Project Appraisal Using Discounted Cash Flow. The Statement aims to support professional accountants in business in applying and promoting the use of discounted cash flow and net present value to evaluate investments. Comment deadline is 12 September 2007.
These documents may be downloaded without charge from IFAC's Website. Click for Press Release (PDF 89k).
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New Deloitte Guide to IAS 34

13 Jun 2007

The Deloitte IFRS Global Office has published the 2007 edition of Interim Financial Reporting: A Guide to IAS 34.

IAS 34 prescribes the minimum content for an interim financial report, and the principles for recognition and measurement in financial statements for a financial reporting period shorter than a full financial year. This guide provides an overview of the Standard, application guidance and examples, a model interim financial report, and an IAS 34 compliance checklist. Click to Download the Deloitte Guide to IAS 34  (PDF 531k, June 2007, 60 pages).

Contents of the Deloitte Guide to IAS 34

  • 1. Introduction and scope
  • 2. Content of an interim financial report
  • 3. Condensed or complete interim financial statements
  • 4. Selected explanatory notes
  • 5. Accounting policies for interim reporting
  • 6. General principles for recognition and measurement
  • 7. Applying the recognition and measurement principles
  • 8. Impairment of assets
  • 9. Measuring interim income tax expense
  • 10. Earnings per share
  • 11. First-time adoption of IFRSs
  • Model interim financial report
  • IAS 34 compliance checklist
SEC (old) Image

SEC staff presentation on accounting complexity, IFRS initiatives

12 Jun 2007

At a recent conference, James L Kroeker, Deputy Chief Accountant of the US Securities and Exchange Commission, spoke about complexity in financial reporting, the need to use judgement in identifying and applying the principles in accounting standards, and the importance of clear disclosure of the judgements made and the basis for those judgements.

He also spoke about the SEC's current initiatives regarding IFRSs. Click to Download Mr Kroeker's Remarks  (PDF 59k). Here is an excerpt:

The third major initiative that I want to briefly highlight is in the area of international financial reporting standards. Just a few short weeks ago the Commission issued a press release announcing the intention to issue a Proposing Release requesting comments on rule changes that would permit the use of IFRS (international accounting standards), as issued by the IASB, in financial reports filed with the SEC by foreign private issuers. In addition, the Commission expects to issue a Concept Release addressing whether US issuers should be provided the same option as their foreign counterparts. That is, the Concept Release will address the issue of whether US issuers should be permitted the option of moving away from US GAAP and applying IFRS. While the idea of allowing the use of international accounting standards is a new one, the impacts on investors, preparers, auditors and others could be significant. The opening up of the US capital markets to IFRS has the potential to shape the future of financial reporting and I encourage each of you to take the opportunity to provide input to the releases. I look forward to reading what I am certain will be many thought provoking and insightful responses.
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Agenda for IASCF Trustees meeting 2-3 July

11 Jun 2007

The Trustees of the International Accounting Standards Committee Foundation (IASCF), under which the IASB operates, will meet on Monday and Tuesday 2 and 3 July 2007 at the Hotel Intercontinental, Paseo De la Castellana 49, Madrid, Spain.

The agenda for the meeting is noted below.

AGENDA, IASC FOUNDATION TRUSTEES MEETING

2-3 July 2007, Madrid

Monday 2 July 2007 (10:30-16:30h)

  • Approval of April Minutes
  • Report of the IASB
    • Review of IASB Work programme and agenda proposal
    • Assessment of progress on MOU
    • Other IASB activities
  • Report of the SAC Chairman
  • Update on Trustee Oversight Matters
    • Development of Feedback Statements and Cost-Benefit Analyses
    • Framework for Interaction with the IASB
    • Other Oversight matters
  • Update on Long-Term financing
  • XBRL Activities and Development of a new IASC Foundation Structure
Tuesday 3 July 2007 (9:00-10:00h)
  • Meeting with 'Publish What You Pay' (PWYP) coalition regarding IFRS 8

 

 

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Specialised industry standards – IASB and FASB contrasted

10 Jun 2007

In his address at the 26th Annual SEC and Financial Reporting Institute Conference at the University of Southern California, FASB Chairman Robert H Herz spoke about Specialised Industry Accounting and Reporting: Too Much of a Good Thing?

Mr Herz's remarks include an update on many of the joint FASB-IASB projects. Also, he discussed the different approaches to specialised industry standards taken by the FASB and its predecessors in contrast to the IASB. Here is an excerpt:

So without judging whether and to what extent having lots of specialized industry accounting and reporting guidance is a good or bad thing, we might ask how we got to this current state in the U.S. For while there is a certain degree of industry specific accounting and reporting guidance in other parts of the world and in IFRS, it is no where as extensive and as differentiated as it is in our country. For example, UK GAAP does not include very much of it, relying instead on broader principles and practices that have evolved, in Australia and New Zealand they have deliberately tried to avoid special accounting for different industries, focusing instead on what they term 'sector neutral' accounting, and while IFRS encompasses some industry specific accounting and disclosures, such as that relating to financial institutions and for agriculture and they are working on accounting for insurance contracts and on accounting for extractive activities (oil and gas and mining), the IASB clearly does not intend to develop U.S. style industry specific guidance; nor do I think they believe that it is generally a good thing.
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IASB will meet with Analyst Representative Group

10 Jun 2007

Members of the International Accounting Standards Board will meet in public session with the Analyst Representative Group (ARG) on Wednesday 27 June 2007, 09:00h-16:00h at the Board's offices, 30 Cannon Street, London.

The ARG meets three times a year with five members of the IASB to provide the views of professional investors on financial reporting issues. Click for Information about the ARG. The agenda for the upcoming meeting includes the following topics:
  • Business Combinations
  • Leases
  • Insurance: Introduction to the Discussion Paper
  • Post-employment Benefits
  • XBRL
  • Financial Instruments: the Due Process Document

 

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Agenda for SAC meeting 25-26 June 2007

09 Jun 2007

The International Accounting Standards Board will meet with the Standards Advisory Council on Monday and Tuesday, 25 and 26 June 2007, at the Renaissance Chancery Court Hotel, 252 High Holborn, London.

Presented below is the agenda for the meeting, which is open to public observation.

25-26 June 2007, London

Monday 25 June 09:30-15:30

  • Opening remarks
  • Trustees remarks
  • Conceptual Framework - stewardship
  • Discussion of IASB work programme and convergence
    • Report from IASB Chairman
    • Questions from SAC

Tuesday, 26 June 2007 08:30-15:30

  • Financial instruments
  • Agenda proposals
  • Post-employment benefits
  • Business combinations
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

Near-final draft of customer loyalty program Interpretation

09 Jun 2007

The near-final draft of a forthcoming IFRIC Interpretation Customer Loyalty Programmes has been posted to the secure eIFRS Online Subscriber Area of the IASB's website.

The draft Interpretation is on the IASB's June 2007 meeting agenda for ratification. Click here for our Project Page.
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IASB June 2007 meeting agenda

08 Jun 2007

The International Accounting Standards Board will hold its June 2007 meeting at its offices, 30 Cannon Street, London, on Tuesday through Friday 19-22 June 2007. Presented below is the agenda for the meeting.

The Board will also meet with the Standards Advisory Council on Monday and Tuesday 25 and 26 June 2007 at the Renaissance Chancery Court Hotel, 252 High Holborn, London.

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19-22 June 2007, London

Tuesday 19 June 2007 (afternoon only)

Wednesday 20 June 2007

  • Technical plan
  • Post-employment Benefits
  • IFRIC – Approval of Interpretations:
    • IFRIC X Customer Loyalty Programmes The Board will be asked to ratify an Interpretation of IAS 18 Revenue addressing accounting by entities that grant customer loyalty awards to their customers. The Interpretation was approved by the IFRIC at its May meeting.
    • IFRIC X IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction The Board will also be asked to ratify an Interpretation of IAS 19 Employee Benefits addressing the limit on the recognition of an asset for a surplus in a defined benefit plan, minimum funding requirements and their interaction.
  • Proposed amendments to IAS 39 Financial Instruments: Recognition and Measurement - Identification of exposures qualifying for hedge accounting
  • Conceptual Framework – Objectives and Qualitative Characteristics

Thursday 21 June 2007 (afternoon only)

  • IFRS 1 First-time Adoption of International Financial Reporting Standards Cost of an Investment in a Subsidiary
  • Joint Ventures
  • Annual Improvements Process– Discussion of the following issues:
    • 1. Should IAS 1 Presentation of Financial Statements be amended to clarify whether derivatives that are not used for hedging be classified as current or non-current in the balance sheet?
    • 2. Should IAS 16 Property, Plant and Equipment be amended to require that the sale of assets that were previously held for rental be presented on a gross basis in the income statement in certain circumstances?
    • 3. Should the apparent inconsistency between IAS 20 Accounting for Government Grants and Disclosure of Government Assistance and IAS 39 Financial Instruments: Recognition and Measurement be amended to clarify whether interest should be imputed to nil or low interest loans received from a government?
    • 4. Should IAS 39 Financial Instruments: Recognition and Measurement be amended to make clear under what circumstances it is appropriate to classify financial instruments into or out of the category of financial asset or financial liability at fair value through profit or loss?
    • 5. Should IAS 39 Financial Instruments: Recognition and Measurement be clarified to explain whether the revised or the original effective interest rate of a debt instrument should be applied in the remeasurement of the instrument's carrying amount on the cessation of fair value hedge accounting?
    • 6. Should IAS 41 Agriculture be amended to require a post-tax discount rate to be used for calculating the fair value of biological assets?
    • 7. Should the additional impairment test required by IAS 28 Associates be preformed in accordance with IAS 36 Impairment of Assets or IAS 39 Financial Instruments: Recognition and Measurement?
    • 8. Should IAS 39 Financial Instruments: Recognition and Measurement be amended to classify prepayment penalties that are charged to a borrower as closely related to the underlying loan where the penalty only compensates the lender for the changes in the interest rate?
    • 9. Should IAS 41 Agriculture be amended to address an issue identified with the accounting for replanting obligations?
    • 10. Should IAS 41 Agriculture be amended to identify 'felled trees' as an example of agricultural produce rather than 'logs'?
    • The Board will also be asked to consider proposed wording to reflect the decisions it took at the May Board meeting in respect of advertising and promotions costs.

Friday 22 June 2007 (morning only)
Accounting Roundup Image

Accounting Roundup – May 2007

07 Jun 2007

We have posted the May 2007 Edition of Accounting Roundup published by Deloitte & Touche LLP (USA).

Topics covered in this issue include:

FASB Developments

  • FASB Clarifies Settlement of a Tax Position in an Interpretation 48 FSP
  • Interpretation 46(R) FSP Issued for Investment Companies
  • Hedge Accounting Project Added to Agenda

AICPA Developments

  • Employee Benefit Plan Technical Practice Aids Issued
  • Framework for AICPA Code of Professional Conduct Exposure Draft
  • Proposed Revisions to Peer Review Standards
  • Discussion Paper on Improving Clarity of ASB Standards

SEC Developments

  • Management Guidance Provided on Sarbanes-Oxley Section 404
  • Rule Changes Proposed on Capital Raising and Disclosure Requirements for Smaller Companies
  • Extension of Comment Period for Proposed Broker-Dealer Rules
  • SEC Provides Research Guides for Securities Laws and Public Companies
  • Auditor Independence Brochure Made Available
  • SEC Staff Warns Securities Industry Firms of Imposters

PCAOB Developments

  • Auditing Standard Approved
  • PCAOB Holds International Auditor Regulatory Institute

GASB Developments

  • Statement on Pension Disclosures Issued

FASAB Developments

  • Exposure Draft on Accounting for Federal Oil and Gas Resources

International Developments

  • IASB Preliminary Views on Accounting for Insurance Contracts
  • US and European Union Agree to Work to Eliminate Financial Reporting Reconciliation

Other Developments

  • OMB Issues 2007 A-133 Compliance Supplement
  • Treasury Department Announces Initiatives to Improve Financial Reporting and Auditing Profession
You will find past issues of Accounting Roundup Here.

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