Heads Up on new SEC XBRL requirements

29 Dec 2008

On 17 December 2008, the US Securities and Exchange Commission voted to issue two final rules that will require registrants (other than investment companies) and mutual funds to provide financial information and risk/return summary information, respectively, in an interactive data format in certain filings with the SEC.

Such information will be made interactive through use of eXtensible Business Reporting Language (XBRL). The National Office Accounting Standards and Communications Group of Deloitte (United States) has published a Heads Up Explaining the New XBRL Requirements (PDF 114k). The table below summarises the phase-in of requirements for XBRL data.

Phase-In GroupPeriods* Ending on or After
Domestic and foreign registrants using US GAAP that have a worldwide public float of more than $5 billion 15 June 2009
All other domestic and foreign large accelerated filers using US GAAP 15 June 2010
All remaining registrants using US GAAP and foreign private issuers using IFRSs as issued by the IASB 15 June 2011

*Generally, an entity's first interactive data submission will be included as an exhibit to a quarterly report on Form 10-Q, or an annual report on Form 20-F or Form 40-F, as applicable.

Deloitte Canada IFRS transition newsletter

27 Dec 2008

Deloitte Canada has published the December 2008 issue of their 'Countdown' IFRS transition newsletter, to provide a snapshot of where we are now as far as Canada's transition to IFRSs is concerned – both in Canada and at Deloitte.

This edition of Countdown focuses on:

  • A recap of 2008 IFRS transition news and events
  • Deloitte IFRS publications and activities
  • Countdown and IFRS Transition Survey
  • An Update on Current IFRS events – including various important Exposure Drafts or Discussion Papers

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Accounting Roundup – 2008 Year in Review

26 Dec 2008

We have posted the 2008 Year in Review Special Edition of Accounting Roundup published by Deloitte & Touche LLP (USA).

This 87-page newsletter (PDF 911k) summarises the final accounting, auditing, and regulatory guidance issued by the FASB, IASB, FASAB, GASB, EITF, SEC, PCAOB, AICPA, and CAQ throughout the year. The newsletter points out that we expect the FASB to issue two proposed FSPs in December that would address accounting for other-than-temporary impairments and disclosures for certain financial instruments that must be analysed for impairment. [Note: Both have now been issued for comment, with a deadline of 30 December 2008 on the former and of 15 January 2009 on the latter.] These proposals are being fast-tracked and FASB expects to finalise and make them effective for this year's reporting season. The FASB is also expected to issue an FSP shortly that will discuss whether an embedded credit derivative must be separated from its host contract. The contents of the 2008 Year in Review Accounting Roundup are organised topically as follows:

  • Fair Value
  • Impact of Current Market Environment on Financial Reporting
  • Business Combinations
  • Employee and Director Compensation and Benefits
  • Financial Instruments and Derivatives
  • Income Taxes
  • Insurance
  • Investment Companies
  • Not-for-Profit Accounting Matters
  • Other Accounting
  • Other SEC Matters
  • Other Auditing
  • Convergence of US GAAP and IFRSs
  • International
  • Appendix A: SEC Disclosure Guidance - Recently Issued Standards
  • Appendix B: Abbreviations
  • Appendix C: Glossary of Standards
  • Appendix D: Significant Adoption Dates

Links to all issues of Accounting Roundup are here.

CAQ guidance on mortgage loan modifications

25 Dec 2008

The AICPA's Center for Audit Quality (CAQ) issued a 20-page white paper titled 'Application of SFAS 114 to Modifications of Residential Mortgage Loans that Qualify as Troubled Debt Restructurings'.

The white paper (PDF 98k) discusses the application of SFAS 114 Accounting by Creditors for Impairment of a Loan–an Amendment of FASB Statements No 5 and 15 to modifications of residential mortgage loans that qualify as troubled debt restructurings. The paper is nonauthoritative and does not establish new GAAP. Rather, articulates certain existing requirements of GAAP literature as well as common accounting practices related to the specific issues discussed, with the objective of helping preparers and auditors understand the application of existing GAAP to residential mortgage loans.


12 IASB pronouncements await EU endorsement

25 Dec 2008

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments.

Click to download the Endorsement Status Report as of 23 December 2008 (PDF 89k). Currently, there are 12 IASB pronouncements are awaiting European Commission endorsement for use in Europe (including 3 awaiting EFRAG advice and 8 awaiting an ARC recommendation), as follows:


  • IFRS 1 First-time Adoption of IFRS – Restructured standard (2008)
  • IFRS 3 Business Combinations (2008)


  • IFRIC 12 Service Concession Arrangements
  • IFRIC 15 Agreements for the Construction of Real Estate
  • IFRIC 16 Hedges of a Net Investment in a Foreign Operation
  • IFRIC 17 Distributions of Non-cash Assets to Owners


  • IAS 27 Consolidated and Separate Financial Statements (2008)
  • IAS 32 and IAS 1 Amendments for Puttable Instruments and Obligations Arising on Liquidation
  • Improvements to IFRSs – 2007 (affects various standards)
  • IFRS 1 and IAS 27 Cost of an Investment in a Subsidiary, Jointly-Controlled Entity, or Associate
  • IAS 39 Amendments for Eligible Hedged Items
  • IAS 39 Amendments for Reclassification of Financial Assets

IFRS e-Learning in Spanish

24 Dec 2008

The many visitors to IAS Plus for whom Spanish is their first language may be interested to know that Deloitte is in process of translating our IFRS e-Learning into Spanish.

Approximately 20 of the current 37 modules have been translated. These are under review and we are hopeful that they can be released in the first quarter of 2009. Translation of the remaining 17 modules has begun, but it's a bit premature for us to suggest a likely release date. Like the English language version, Deloitte's Spanish IFRS e-Learning will be made available to the public without charge.


IASB exposure draft on embedded derivatives

24 Dec 2008

The IASB has proposed to amend IAS 39 'Financial Instruments: Recognition and Measurement' to clarify the accounting treatment for embedded derivatives.

The proposals are set out in an exposure draft Embedded Derivatives, on which the IASB invites comments by 21 January 2009. The exposure draft can be downloaded from the IASB's website. The IASB is issuing this ED to prevent any diversity in practice developing as a result of the amendments made to IAS 39 in October 2008 to permit the reclassification of particular financial assets. The proposals published today would require all embedded derivatives to be assessed, including those embedded in reclassified instruments, and, if necessary, separately accounted for in financial statements. Click for press release (PDF 44k).


IASB proposes new debt investment disclosures

24 Dec 2008

The IASB has proposed to amend IFRS 7 'Financial Instruments: Disclosures' to provide additional disclosures on all investments in debt instruments, other than those classified in the fair value through profit or loss category.

The proposals would require an entity to state in tabular form the fair value, amortised cost, and amount at which the investments are actually carried in the financial statements.

The amendments would also require an entity to also disclose the effect on profit or loss and equity if all debt instruments had been accounted for at fair value or at amortised cost.

The IASB believes that the proposed disclosures will 'allow greater comparability between investments in debt instruments held with and by different entities, and so enhance investors' confidence in the financial markets'. The FASB is making similar disclosure proposals.

The proposals are set out in an exposure draft Investments in Debt Instruments, on which comments are due by 15 January 2009. The exposure draft can be downloaded from the IASB's website. Click for press release (PDF 50k).

Mary Schapiro nominated to chair the US SEC

22 Dec 2008

US President-elect Barack Obama will nominate Mary L Schapiro as the new chair of the US Securities and Exchange Commission.

Ms Schapiro is currently the CEO of the Financial Industry Regulatory Authority (FINRA), the largest non-governmental regulator for all securities firms doing business with the US public. She previously served as an SEC Commissioner from 1988 to 1993. Mr Obama's announcement said the following about Mary Schapiro:

Mary is known as a regulator who's both smart and tough – so much so that she's been criticized by the same industry insiders who we need to get tough on. For years, she's used her position to educate investors about market risks, warn seniors and employers about retirement scams, and call for increased regulation of mortgage brokers long before this housing crisis hit. I know that Mary will provide the new ideas, new reforms, and new spirit of accountability that the SEC desperately needs so that fraud like the Madoff scandal doesn't happen again.

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IASB outlines recent responses to credit crisis

21 Dec 2008

The IASB has issued a press release detailing the steps it has taken recently to address financial reporting issues arising from the global credit crisis, in response to recommendations made by the G20 leaders last month.

Those steps include:

  • Improved accounting for off balance sheet items — Issued an ED on consolidation. Also, further proposals on off balance sheet items, covering the derecognition of assets and liabilities, are due to be published towards the end of the first quarter of 2009.
  • New disclosure requirements related to impairment — The IASB and the US Financial Accounting Standards Board (FASB) are both proposing changes to converge their disclosure requirements for impairments. FASB has already released its ED, and the IASB will do so next week.
  • Acceleration of efforts to address broader issues of impairment on a globally consistent basis — Joint study by the two boards' staff is under way, with a report due in January.
  • Ensuring consistent treatment of accounting for particular credit-linked investments between US GAAP and IFRSs — FASB will issue mandatory guidance.
  • Ensuring embedded derivatives are assessed and separated if financial assets are reclassified — IASB will publish a fast-track ED next week.
  • Considering fully other issues related to financial instruments, including the fair value option, raised at the recent series of roundtables in London, New York, and Tokyo.

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