February

IOSCO urges clear disclosure of accounting framework

07 Feb 2008

The International Organization of Securities Commissions (IOSCO) – the consortium of the world's securities regulators – has published a statement urging publicly traded companies to provide investors with clear and accurate information on the accounting standards used to prepare their accounts.

In particular, IOSCO is concerned that, with the convergence of global accounting standards, investors may assume that all company accounts are generally comparable, even when they are prepared in accordance with quite different GAAPs. This commonly occurs where national standards assert that they are based on but do not fully implement International Financial Reporting Standards (IFRS). This could occur, for instance, if a jurisdiction:
  • adopts some but not all IFRSs as its national GAAP,
  • modifies an IFRS when adopting it,
  • delays adoption of a new or amended IFRS including Interpretations, or
  • changes the effective date or method of transition.
Click to Download the IOSCO Press Release, which includes the full text of the IOSCO Statement (PDF 32k). Here are the principles in the IOSCO Statement:

Companies preparing annual and interim financial statements on the basis of national standards that are modified or adapted from IFRS should include at least the following statements:

  1. A clear and unambiguous statement of the reporting framework on which the accounting policies are based;
  2. A clear statement of the company's accounting policies on all material accounting areas;
  3. An explanation of where the accounting standards that underpin the policies can be found;
  4. A statement that explains that the financial statements are in compliance with IFRS as issued by the IASB, if this is the case; and
  5. A statement that explains in what regard the standards and the reporting framework used differs from IFRS as issued by the IASB, if this is the case.

Accounting Roundup – January 2008

06 Feb 2008

We have posted the January 2008 Edition of Accounting Roundup published by Deloitte & Touche LLP (USA).

Topics covered in this issue include:

FASB Developments

  • FASB Issues FSP on Deferral of Interpretation 48 for Nonpublic Enterprises
  • FASB Approves Two Clarifications on Applying the Shortcut Method
  • FASB Launches Accounting Standards Codification for Verification
  • FASB Proposes Guidance on Measuring the Fair Value of Liabilities
SEC Developments
  • SEC Amends Proxy Rules to Facilitate Electronic Shareholder Forum
  • SEC Issues Clarification on Accounting Associated With the Streamlined Foreclosure and Loss Avoidance Framework
PCAOB Development
  • PCAOB Adopts Auditing Standard 6 on Evaluating Consistency of Financial Statements
GASB Development
  • FAF Requests Comments on Proposed Changes to the Oversight, Structure, and Operations of the FAF, FASB, and GASB
International Developments
  • IASB Revises Accounting for Business Combinations and Noncontrolling Ownership Interests
  • IASB Amends IFRS 2 on Share-Based Payments
  • IFRIC Proposes Guidance on Distributions of Noncash Assets to Owners
  • IFRIC Proposes Guidance on Accounting for Customer Contributions
Other Developments
  • GAO Issues Auditing Implementation Tool
  • Audit Firm CEOs Propose Framework for Principles-Based Accounting Standards
Click to view January 2008 Edition of Accounting Roundup (PDF 307k).
You will find past issues of Accounting Roundup Here.

 

МСФО в кармане. 2007 год – IFRSs in your Pocket in Russian

06 Feb 2008

Deloitte & Touche CIS (Russia) has published МСФО в кармане. 2007 год – a Russian translation of IFRSs in your Pocket 2007.

This pocket guide includes summaries of all IFRSs issued through 30 June 2007. Therefore, the summaries cover IASs through IAS 41 and IFRSs through IFRS 8, as well as Interpretations through IFRIC 12.
Click to view МСФО в кармане. 2007 год (PDF 1,427k, 72 pages).

 

Survey of IFRS presentation and disclosure practices in UK

06 Feb 2008

Deloitte & Touche (United Kingdom) has surveyed the presentation and disclosure practices under IFRSs of 100 UK listed companies, based on annual reports published between August 2006 and July 2007. The objectives of the survey were to determine:

  • How the disclosure requirements of IFRSs are interpreted in practice
  • The underlying trends in presentation of IFRS financial statements
  • The extent to which the format is still influenced by UK GAAP reporting requirements

Among the issues illustrated in the report are:

  • What is included in operating profit
  • Non-GAAP performance measures
  • Choice of SORIE or SOCIE in reporting changes in equity
  • Classifications in the cash flow statement
  • Accounting policy disclosures
  • Disclosures of critical judgements and key sources of estimation uncertainty
  • Segment reporting
  • Defined pension pension plans
  • Impairments
  • Associates and joint ventures
Click to download a Summary of Survey Findings (PDF 747k).

 

SEC and EC leaders meet

05 Feb 2008

At a meeting on 1 February 2008, US SEC Chairman Christopher Cox and the European Commissioner for the Internal Market and Services Charlie McCreevy held a wide-ranging discussion on topics of mutual interest, including the current market volatility, accounting standards, sovereign wealth funds, credit rating agencies, XBRL developments, and mutual recognition of securities regulation.

Click for Announcement (PDF 34k).

 

SEC begins a small business cost-benefit study of SOX 404

05 Feb 2008

The US Securities and Exchange Commission has launched a cost-benefit study of an upcoming auditor attestation requirement for smaller companies under Section 404(b) of the Sarbanes-Oxley Act of 2002. The study will collect and analyse 'real world' cost and benefit data from a broad array of companies currently complying with Section 404 under newly-issued guidance for companies and auditors.

In addition, the SEC proposed a further one-year extension of the Section 404(b) auditor attestation requirement for smaller companies – to financial years ending on or after 15 December 2009. The postponement would allow time for completion of the study. Click for SEC Announcement (PDF 38k).

 

IAS Plus Newsletter on 'distributions' and 'contributions'

05 Feb 2008

Deloitte's IFRS Global Office has published a special edition IAS Plus Newsletter on IFRIC D23 and IFRIC D24.

IFRIC D23 deals with distributions of non-cash assets and IFRIC D24 addresses assets contributed by customers. Both were published for comment on 17 January 2008, with comments due 25 April 2008.
Click to view IAS Plus Newsletter on IFRIC D23 and IFRIC D24 (PDF 105k). You will find all Past IAS Plus Newsletters Here.

 

IFRS Taskuopas 2007 – IFRSs in your Pocket in Finnish

05 Feb 2008

Deloitte & Touche (Finland) has published IFRS Taskuopas 2007 – a Finnish translation of IFRSs in your Pocket 2007.

This pocket guide includes summaries of all IFRSs including Interpretations issued through 30 June 2007. Because no major changes to IFRSs are expected to be applicable until 2009, this guide is an excellent summary of the current standards required for 2007 and 2008 reporting. However, there is also a summary of recent changes that will be effective in 2009.
Click to view IFRS Taskuopas 2007 (PDF 354k, 101 pages).

 

IAASB amends standards on review engagements

04 Feb 2008

The International Auditing and Assurance Standards Board (IAASB) has amended the following International Standards on Review Engagements (ISREs) to clarify to which engagements each respectively is to be applied:

  • ISRE 2400 Engagements to Review Financial Statements; and
  • ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
ISRE 2410 is amended to apply not only to reviews by the entity's auditor of interim financial information but also to the auditor's reviews of historical financial information.
ISRE 2400 is amended to restrict its scope to a review of any historical financial information performed by a practitioner who is not the entity's auditor. Click for Press Release (PDF 30k).

 

Model financial statements using Hong Kong standards

04 Feb 2008

Deloitte (China) has published Financial Reporting in Hong Kong – Illustrative Financial Statements and Disclosure Checklist 2007.

Click to Download the Book (PDF 2,589k, 336 pages). This book contains:
  • Model 2007 annual report for a listed company that complies with Hong Kong Financial Reporting Standards (virtually identkical to IFRSs) and the Hong Kong Companies Ordinance and Listing Rules
  • Comprehensive presentation and disclosure checklist
  • Overview on HKFRSs
  • Special guidance and examples for applying HKFRS 7 (identical to IFRS 7)
This book complements Financial Reporting in Hong Kong, which Deloitte (China) published in January 2008.

 

Correction list for hyphenation

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