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2007

We comment to IASB on risks eligible for hedge accounting

18 Dec 2007

We have submitted to the IASB our Comments on the Exposure Draft: IAS 39 Exposures Qualifying for Hedge Accounting.

Overall we are supportive of the proposals.

We support the Board's intention to clarify IAS 39 Financial Instruments: Recognition and Measurement in the areas of what risks are eligible for hedge accounting and what portion can be designated as a hedged item. As the amendments' objective is to provide clarity in what is a qualifying hedge accounting relationship it is important that the finalisation of the amendments on risks and portions is very clear. We currently have concerns that some of the drafting is not clear enough and also that the amendments may have unintended consequences for other hedge accounting designations beyond the intended scope of the amendments. We draw this to your attention as well as our proposals to make the amendments clearer and other drafting comments in the answers to the questions in the Appendix to this comment letter.

Click to view Comments on the Exposure Draft: IAS 39 Exposures Qualifying for Hedge Accounting (139k). You will find all past Deloitte letters of comment to the IASB and the IASC Here.

 

Notes from fourth day of December 2007 Board meeting

17 Dec 2007

The International Accounting Standards Board held its December 2007 meeting at the Board's offices, 30 Cannon Street, London, on Tuesday to Friday, 11-14 December 2007.

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the meeting.

New Global Offerings Services newsletter

15 Dec 2007

We have posted the November 2007 Edition of the Deloitte Global Offerings Services Newsletter.

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. The GOs Newsletter is an update on relevant GAAP, regulatory, and other matters, webcasts, and publications, with hyperlinks to source material. Click to view November 2007 Edition of the Deloitte Global Offerings Services Newsletter (PDF 147k). Past GOs Newsletters are Here.

 

Guía Rápida NIC/NIIF 2007 (Spain)

14 Dec 2007

Deloitte (Spain) has published Guía Rápida NIC/NIIF 2007 – a Spanish translation of IFRSs in your Pocket 2007.

It includes forewords from Ken Wild (Deloitte Global IFRS Leader) and Manual Arranz (Deloitte Spain IFRS Leader); a description of the IASB structure; biographies of IASB members; an IASC/IASB chronology; use of IFRSs around the world; summaries of all IFRSs including Interpretations up through 30 June 2007; brief summaries of IASB agenda projects; and more.

Click to view Guía Rápida NIC/NIIF 2007 (PDF 692k, 116 pages).

FASB webcast on IFRS convergence

14 Dec 2007

The US Financial Accounting Standards Board (FASB) is launching a series of periodic webcasts focusing on topics of importance to its constituents.

The first is scheduled for Tuesday, 8 January 2008, and will feature a panel of experts discussing international convergence of accounting standards. The live webcast is offered free of charge. Viewers will have the opportunity to email questions to panelists during the event. The webcast will be archived on the FASB website for access by the public.

FASB webcast on IFRS convergence:

  • Title of Webcast: Towards a Global Reporting System: Where Are We and Where Are We Going?
  • Date and Time: 8 January 2008, 10:30 AM to 11:30 AM US EST
  • Panelists: Robert Herz, Chairman of the FASB; Peter Bridgman, Senior Vice President and Controller of PepsiCo; Greg Jonas, Managing Director of Moody's Investors Service; and Sam Ranzilla, a Partner at KPMG LLC. Moderated by Wall Street Journal reporter David Reilly.
  • Topic: The panel will cover topics that include steps necessary to ensure a successful transition to IFRS; how this transition will provide better information to investors; and progress made by the FASB and the International Accounting Standards Board (IASB) to create a common set of high-quality global accounting standards.
  • Email Notification Service: To subscribe to an email notification service for future FASB webcasts, send an email to Join-fasb-webcast@listserv.lists.fasb.org. (It is not necessary to include any additional information in the subject line or body of your email.)

 

Notes from third day of December 2007 Board meeting

14 Dec 2007

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the meeting.

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the meeting.

Revised ED on 'deemed cost' of investments

13 Dec 2007

The IASB published for public comment a revised exposure draft (ED) of proposed amendments to IFRS 1 'First-time Adoption of IFRSs' and IAS 27 'Consolidated and Separate Financial Statements'.

The revised ED – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate – responds to comments received on a related exposure draft published in January 2007.

The proposals address concern that retrospectively determining cost in accordance with IAS 27 on first-time adoption of IFRSs cannot, in some circumstances, be achieved without undue cost or effort. Under the revised proposal:

  • Entities, in their separate financial statements, would be allowed to use a 'deemed cost' option for determining the cost of an investment.
  • That 'deemed cost' could be either fair value (determined in accordance with IAS 39 Financial Instruments: Recognition and Measurement) or the carrying amount under previous national standards.
  • The 'deemed cost' option to would apply to jointly controlled entities and associates as well as subsidiaries.
  • A new parent would be required to measure cost using the carrying amounts of the existing entity at the date when the new parent is formed.

Comment deadline on the revised ED is 26 February 2008. Click for:

 

Group cash-settled share-based payment transactions

13 Dec 2007

The IASB has published for comment an exposure draft of proposed amendments to IFRS 2 'Share-based Payment' and to IFRIC 11 'IFRS 2 – Group and Treasury Share Transactions'.

The proposals would provide guidance on how a group entity that receives goods or services from its suppliers (including employees) should account for the following arrangements, known as group cash-settled share-based payment transactions:

  • Arrangement 1 – the entity's suppliers will receive cash payments that are linked to the price of the equity instruments of the entity.
  • Arrangement 2 – the entity's suppliers will receive cash payments that are linked to the price of the equity instruments of the entity's parent.

Either way, it is the entity's parent that has an obligation to make the required cash payments to the entity's suppliers, not the entity itself.

The proposed amendment to IFRS 2 clarifies that IFRS 2 applies to such arrangements even if the entity that receives goods or services from its suppliers has no obligation to make the required share-based cash payments. Under the proposal, the entity should measure the goods or services in accordance with the requirements for cash-settled share-based payment transactions.

Comment deadline is 17 March 2008. Click for:

 

Notes from second day of December 2007 Board meeting

13 Dec 2007

The International Accounting Standards Board held its December 2007 meeting at the Board's offices, 30 Cannon Street, London, on Tuesday to Friday, 11-14 December 2007.

Click here to go to the Preliminary and Unofficial Notes Taken by Deloitte Observers at the meeting.

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