August

Taiwan convergence project plan update

11 Aug 2008

In our news story of 9 January 2008, we posted the Project Plan Concerning the Convergence with IFRSs adopted by the Financial Accounting Standards Committee (FASC) of the Accounting Research and Development Foundation (ARDF) of Taiwan.

The ARDF has recently Updated its Project Plan (PDF 5k) to reflect progress on its convergence agenda. Click for our Taiwan Page.
Click to view the Project Plan Concerning the Convergence with IFRSs (PDF 31k).

 

Minutes of ARC meeting 11 July 2008

09 Aug 2008

In our News Story of 20 July 2008, we presented a brief summary of the discussions and decisions at the 11 July 2008 meeting of the European Commission's Accounting Regulatory Committee (ARC).

The Commission has now released the Summary Record (Notes) of the ARC Meeting (PDF 43k).

 

IASC Foundation publishes new IFRS taxonomy module manager

08 Aug 2008

The International Accounting Standards Committee (IASC) Foundation has released a new IFRS Taxonomy Module Manager (ITMM).

ITMM is an add-on for the IFRS Taxonomy 2008. It offers taxonomy users such features as:
  • The ability to combine taxonomy files with one another
  • An entry point that combines, for example:
    • Consolidated statement of financial position, by order of liquidity
    • Consolidated income statement, by function of expense
    • Consolidated statement of cash flows, using the direct method
  • An interactive graphical interface that guides the user through the selection of the necessary IFRS modules
  • An entry point (in the form of a schema or empty instance document) that is the starting point for entity-specific extension or direct filing
  • Ability to navigate across the IFRSs as well as the structure of financial statements
  • A normal mode for first-time users, and advanced settings (together with expert mode) for experienced users
Click here to Access ITMM on the IASCF website.

 

IFRSs for US companies – planning for adoption

07 Aug 2008

As full acceptance of IFRS in the United States nears, developing a plan around IFRS implementation is becoming increasingly important for companies to effectively position themselves for the future.

To help companies better understand the impact a move to IFRS will have on organisations, Deloitte has released the publication International Financial Reporting Standards for US Companies: Planning for Adoption. This publication provides an overview of key IFRS considerations, includes practical steps for US executives, and addresses key questions for US companies, including:
  • How can company leaders – especially in finance – begin to plan properly for tomorrow's IFRS world?
  • What impact will a transition to IFRS have on technical accounting, tax, process and statutory reporting, technology infrastructure, and organisational issues?
  • What about timing considerations for IFRS conversion activities?
Download the Publication (PDF 1,843k) to learn more.

 

Report on implementation of EU statutory audit directive

07 Aug 2008

The European Commission has published a report on where the 27 Member States stand with their implementation of the May 2006 Statutory Audit Directive, which had to be transposed into national law by 29 June 2008. Twelve Member States have completed the entire implementation of the Directive.

Most of the other Member States have transposed major parts of the Directive but are still missing some important provisions. Click for:

EC defers registration of non-EU audit firms from 30 countries

07 Aug 2008

The European Commission has granted a transitional period for the registration requirements for audit firms from 30 non-EU countries.

Those firms may continue their audit activities regarding non-EU companies listed on European markets without registering until 1 July 2010. However, transition will only be granted if the non-EU audit firms comply with the minimum information requirements necessary for investors in Europe. Audit firms from non-EU countries that do not fall under the transitional regime will be subject to full registration and oversight by the competent EU Member State. Click for Press Release (PDF 94k).

IASB proposes to amend IAS 33 Earnings per Share

07 Aug 2008

The IASB has proposed to amend IAS 33 Earnings per Share (EPS) to simplify the calculation of EPS and to converge the international standard and US GAAP.

The proposal is set out in an exposure draft (ED) titled Simplifying Earnings per Share. Comments are requested by 5 December 2008. Concurrently, the US Financial Accounting Standards Board has proposed to amend its EPS standard, SFAS 128 Earnings per Share. The IASB's proposal, if adopted, would supersede the version of IAS 33 issued in 2003 and amended in 2007 by IAS 1.

Among other things, the revisions to IAS 33 would:

  • Provide a clear principle to determine which shares and other instruments should be included in the EPS calculation. Under that principle, the weighted average number of ordinary shares includes only those instruments that give their holder the right to share currently in profit or loss of the period.
  • Clarify the EPS calculation for particular instruments, such as contracts to sell or repurchase an entity's own shares and participating instruments. The ED treats those contracts as if the entity had already repurchased the shares. Therefore, the entity would exclude those shares from the denominator of the EPS calculation.
  • Amend the calculation of diluted EPS for participating instruments and two-class ordinary shares. If a convertible financial instrument would have a more dilutive effect if conversion is assumed, then the entity would assume the more dilutive treatment for diluted EPS.
  • Simplify the EPS calculation for instruments that are accounted for at fair value through profit or loss. For such instruments (including the derivative component of a compound financial instrument), an entity would not adjust the numerator or denominator of the diluted EPS calculation.
Click for IASB Press Release (PDF 48k).

 

IASB proposes improvements to 8 IFRSs

06 Aug 2008

The IASB has issued an exposure draft (ED) of proposed amendments to eight International Financial Reporting Standards (IFRSs) as part of its 2008 Annual Improvements Project.

Most of the proposals would be effective for annual periods beginning on or after 1 January 2010, with earlier adoption permitted. However, the proposed effective date for those amendments arising from the revised IFRS 3 Business Combinations is 1 July 2009 (in line with the effective date of that standard and related changes to IAS 27 Consolidated and Separate Financial Statements).

The IFRSs and topics covered by the proposed amendments are:

IFRS

Subject of amendment

IFRS 2 Share-based Payment Scope of IFRS 2 and revised IFRS 3
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations Disclosures of non-current assets (or disposal groups) classified as held for sale or discontinued operations
IFRS 8 Operating Segments Disclosure of information about segment assets
IAS 7 Statement of Cash Flows Classification of expenditures on unrecognised assets
IAS 18 Revenue Determining whether an entity is acting as a principal or as an agent
IAS 36 Impairment of Assets Unit of accounting for goodwill impairment test
IAS 38 Intangible Assets Additional consequential amendments arising from revised IFRS 3
Measuring the fair value of an intangible asset acquired in a business combination
IAS 39 Financial Instruments: Recognition and Measurement

Scope exemption for business combination contracts
Application of the fair value option
Cash flow hedge accounting Bifurcation of an embedded foreign currency derivative

The IASB requests comments on the ED draft by 7 November 2008. Click for IASB Press Release (PDF 49k).

 

SEC holds fourth roundtable on IFRSs

06 Aug 2008

Deloitte & Touche LLP (United States) has published a Heads Up newsletter summarising the discussions at the SEC's fourth roundtable on IFRSs, held on 4 August 2008. Topics covered at the roundtable included panelists' experience with using IFRSs and US GAAP during the current financial crisis, the best way to develop stronger standards, and the direction of convergence efforts between the two sets of standards.

Click to Download the Heads Up Newsletter (PDF 114k).

Key Messages from the SEC Roundtable Participants:

  • IFRSs have held up quite well in the face of recent market turmoil. Some panelists believed that IFRSs outperformed US GAAP in many areas, such as off-balance-sheet transactions involving special-purpose entities, and have resulted in more robust, transparent disclosures.
  • Improvement is needed to the fair value reporting requirements under both IFRSs and US GAAP. Some panelists specifically pointed to the requirement under FASB Statement 157 Fair Value Measurements for an entity to consider its own credit standing when determining the fair value of its liabilities, and the resulting effect on the income statement.
  • Improving revenue recognition guidance under IFRSs should be a priority for standard setters.
  • Consistent application of accounting standards and financial statement presentation are important to investors.
  • The transition to IFRSs gives companies the opportunity to reassess their accounting policies and disclosures to ensure that their accounting reflects the true economics of the transactions and that their financial statements are sufficiently transparent.

Spanish translation of Global IFRS and Offerings Services newsletter

06 Aug 2008

We have posted the Spanish Translation of the May-June 2008 Deloitte Global IFRS and Offerings Services Newsletter.

Este boletín informa sobre los desarrollos recientes en la contabilidad US GAAP y de la SEC que son de interés para compañías que no son de los Estados Unidos. Esta es una traducción al español de la versión oficial en inglés del US Reporting Newsletter for Non-US Based Companies (May-June 2008).
Click to view Spanish Translation of the May-June 2008 Deloitte Global IFRS and Offerings Services Newsletter (PDF 528k).

 

Correction list for hyphenation

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