June

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The 2008 IFRSs CD-ROM is now available

06 Jun 2008

The CD-ROM of 2008 IFRSs is now available for purchase from the IASC Foundation for £80 plus shipping.

There are discounts for academics/students, middle income and low income countries, and multiple orders. The CD includes all IFRSs, IASs, and IFRIC and SIC Interpretations approved at January 2008, as well as all the latest IASB Exposure Drafts, IFRIC draft Interpretations, and Discussion Papers issued at 31 March 2008. You can order online at http://buy.iasb.org or send an Order Form by fax or mail.
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FASB may consider replacing FAS 109 with IAS 12 Revised

05 Jun 2008

In an interview published by BNA, FASB Director of Planning and Support Sue Bielstein said that the FASB staff plans to ask FASB to consider issuing an IASB-drafted rewrite of IAS 12 Income Taxes rather than proposing revisions to the US standard – FAS 109 Accounting for Income Taxes.

Ms Bielstein suggested that FASB may discuss this proposal before the end of this month.

 

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New IASB panel of valuation of financial instruments

05 Jun 2008

The IASB has formed an expert advisory panel on valuation of financial instruments in inactive markets, in response to Recommendations made by the Financial Stability Forum (FSF).

The new panel will assist the IASB in:
  • reviewing best practices in the area of valuation techniques, and
  • formulating any necessary additional practice guidance on valuation methods for financial instruments and related disclosures when markets are no longer active.
Organisations participating in the panel include AIG (American International Group); Basel Committee on Banking Supervision; BNP Paribas; Capital International Research Inc.; Citigroup; Deloitte; Deutsche Bank; Ernst & Young; Financial Stability Forum; Fitch Ratings; Goldman Sachs; HSBC; International Association of Insurance Supervisors; International Organization of Securities Commissions (IOSCO); KPMG; Pioneer Investments; PricewaterhouseCoopers; Swiss Re; and UBS. FASB will have a staff observer. The first meeting of the panel will take place on 13 June 2008 in private session. A summary of the meeting will be presented to the IASB at its June 2008 meeting and will be published on its website. More Information on IASB's website. The following related resources are available on our Credit Crunch Page:

 

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FASB announces changes to technical staff leadership

04 Jun 2008

The US Financial Accounting Standards Board has announced the following changes to its technical staff leadership.

The changes are effective immediately:
  • Russ Golden, formerly FASB Director of Technical Application & Implementation Activities, is the Technical Director with overall responsibility for staff work on all standards-level projects, including both major projects and implementation activities. He will continue to chair the EITF.
  • Ron Lott, formerly a Senior Technical Advisor for the FASB, is assuming the newly created position of Research Director. He has overall responsibility for the Conceptual Framework project and for research activities, including FASB's new Financial Accounting Standards Research Initiative.
  • Sue Bielstein, formerly the FASB Director of Major Projects and Technical Activities, is the Director of Planning and Support.
Click for FASB Announcement (PDF 36k).

 

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Heads Up on proposed FASB credit derivatives disclosures

04 Jun 2008

The US FASB has issued a proposed FASB Staff Position (FSP) to amend disclosure requirements for entities that sell credit derivatives or financial guarantees.

Comments are requested by 30 June 2008. The disclosures would be effective for financial years and interim periods ending after 15 November 2008. Deloitte &Touche LLP (USA) has published a Heads Up Newsletter (PDF 89k) describing the proposal. You can Download the Proposed FSP (PDF 38k) from FASB's website. Regarding convergence with IFRSs, the proposed FSP states:

In August 2005, the IASB issued IFRS 7, Financial Instruments: Disclosures. The scope of IFRS 7 includes all financial instruments, not just derivative instruments. The FASB decided to limit the scope of this proposed FSP to credit derivatives because of the near-term need to address the lack of disclosures about the potential exposure and cash flow effects associated with those derivatives. The FASB may consider in the future a longer term project to improve disclosures about all financial instruments and to achieve greater convergence with IFRS 7.

 

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IOSCO communique

04 Jun 2008

The International Organization of Securities Commissions (IOSCO) has released the Final Communique of its 33rd Annual Conference held 26-29 May 2008 in Paris.

At the Conference, Christopher Cox, Chairman of the US Securities and Exchange Commission, was elected as Chairman of IOSCO's Technical Committee. The Technical Committee comprises 15 IOSCO members that regulate some of the world's larger, more developed and internationalised markets. A key objective of the Committee is to develop practical responses to major regulatory issues relating to the operation of securities markets and to establish principles and set standards. The Technical Committee oversees IOSCO's activities in the area of accounting.
Click to view Final Communique of its 33rd Annual Conference (PDF 86k)
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IOSCO to review audit services issues

04 Jun 2008

The Audit Services Task Force of the IOSCO Technical Committee will expand the scope of its work over the next year to include a number of audit services-related issues.

Specifically, the Task Force will focus on the following audit related issues:
  • Transparency and governance of audit firms, including the intersection of governance with both firm viability and audit quality.
  • The scope of audit reports, including varying levels of assurance in different circumstances, the possibility of enhanced disclosure of the bases for different levels of assurance, and the potential role of joint audits.
  • Potential expansion of allowable organisational structures and forms to allow for greater firm viability and industry competition.
Here is the IOSCO Press Release (PDF 68k). The Task Force also released a paper intended to assist IOSCO members in considering and preparing for potential contingencies involving audit firms that may affect the delivery of audit services in the global capital markets. Click to download Technical Committee Paper: Contingency Planning for Events and Conditions Affecting Availability of Audit Services (PDF 134k).
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IOSCO publishes recommendations to address 'subprime crisis'

04 Jun 2008

The International Organization of Securities Commissions (IOSCO) has published the final report of its Technical Committee's Task Force on the Subprime Crisis.

The report contains an analysis of the underlying causes of the crisis, the implications for international capital markets, and recommendations that address the issues facing securities regulators. The report includes recommendations by the Technical Committee for future IOSCO work to counter these issues in three areas, including accounting. These are:
  • Issuer transparency and investor due diligence.
  • Firm risk management and prudential supervision.
  • Valuation and accounting issues.
You will find additional information about the 'subprime crisis' on our Credit Crunch Page.
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New data on foreign companies registered with the US SEC

03 Jun 2008

We have updated our Database of Statistics that, we believe, provide clear evidence of the globalisation of the world's capital markets and of the need for global financial reporting standards.

The latest updates reflect 2007 US SEC data on foreign registrants:

Number of non-US companies registered with the US Securities and Exchange Commission:

  • 1,058 companies from 52 jurisdictions at 31 December 2007
  • 1,145 companies from 53 jurisdictions at 31 December 2006
  • 1,236 companies from 53 jurisdictions at 31 December 2005
  • 1,240 companies from 55 jurisdictions at 31 December 2004
Detailed 31 December 2007 data: Additionally, 684 foreign companies whose securities trade in the US claim exemption from SEC registration because they are registered in, and file comparable information in, their home jurisdiction or another jurisdiction. Here is the latest data available: List at 21 June 2005 (PDF 399k).

 

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Quarterly update on accounting matters in South Africa

02 Jun 2008

Deloitte (South Africa) publishes a quarterly newsletter Technically Speaking that provides insights, guidance, and summaries of issues that are affecting the accounting, auditing, and regulatory environment in South Africa, as well as other matters of general interest.

You can find links to them on our South Africa Page. Here is the link to download the May 2008 Issue (PDF 515k). Among the IFRS-related points covered are:
  • Latest Exposure Drafts issued by the IASB
  • Amendments proposed to IFRS 2 and IFRIC 11 – Group and Treasury Share Transactions
  • Revisions to IFRS 3 Business Combinations and IAS 27 Consolidated and Separate Financial Statements
  • IFRS 7 and its liquidity risk disclosure requirements
  • IFRS Issues:
    • Can a condensed interim financial report be described as 'complying with IFRSs'?
    • Inclusion of bank overdrafts within cash equivalents
  • Wave farewell to the US GAAP reconciliation

 

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