Deloitte Canada IFRS transition newsletter

30 Nov 2008

Deloitte Canada has published the November 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 in Deloitte.

This edition of Countdown focuses on:

  • IFRS Disclosures in Management's Discussion and Analysis (MD&A)
  • Tax Accounting in an IFRS Environment
  • Launch of our Countdown and IFRS Transition Survey
  • SEC Release of the Proposed IFRS Roadmap
  • An Update on Current IFRS events

Click below for:

What's new in financial reporting for December 2008?

30 Nov 2008

Deloitte (Australia) has published 'What's New in Financial Reporting for December 2008?' This publication provides a high level overview of new and revised financial reporting requirements that need to be considered for periods ending on 31 December 2008.

Entities can use this listing to perform a quick check that all the new financial reporting requirements have been fully considered as part of their December 2008 reporting close process. The information was last updated on 30 October 2008 for developments to that date.

The information is organised as follows:

  • overview of the big picture issues for financial reporting at December 2008
  • tables of new and revised accounting pronouncements, categorised as follows:
    • IFRS-equivalent Standards and guidance
    • domestic Standards
    • amending Standards
    • Interpretations
    • pronouncements approved by the IASB/IFRIC where an equivalent pronouncement has not been issued by the AASB Corporations Act 2001 developments
    • other developments.

Click to view: What's New in Financial Reporting for December 2008? (PDF 172k).

Credit crunch challenges for directors

29 Nov 2008

The United Kingdom Financial Reporting Council (FRC) has published two alerts to directors on the corporate reporting challenges arising from current economic conditions.

Because of the global liquidity squeeze, directors and audit committees may need to spend more time planning the year-end activities, reviewing key assumptions and models used in financial reporting, and reviewing the significant accounting and disclosure judgements. In response to those challenges, the FRC has published:

The purpose of the documents is to assist directors by identifying key questions that they may wish to consider when preparing for the year-end and in meeting their responsibilities in relation to annual reports and accounts. These documents do not impose any new requirements on UK companies or their auditors. These publications are copyright by the FRC and are posted on IAS Plus with the kind permission of the FRC.

Financial crisis roundtable on 3 December

28 Nov 2008

On 3 December 2008 in Tokyo, the IASB and FASB will jointly hold their final public roundtable on the accounting challenges posted by the current market conditions.

The Boards are gathering views from constituents on the most urgent accounting issues and how to approach them. The first roundtable was held in London on 14 November 2008 (click for Our notes from this Roundtable) and the second was at the FASB's offices on 25 November 2008. There will be two afternoon sessions at the Tokyo roundtable – the first from 13:30 - 15:30 and the second from 16:00 - 18:00. Click here to download the Agenda Papers from the IASB's website. There's a comprehensive Credit Crunch page on IAS Plus.


Four recent IFRS Insights newsletters

28 Nov 2008

We have posted four recent IFRS Insights newsletters from Deloitte & Touche LLP (United States). IFRS Insights provides news on the latest developments on IFRSs, practical suggestions for companies addressing IFRSs, updates on the regulatory environment, and references to relevant tools and resources.

Below are the download links and key features of the four new editions.

IFRS Insights Volume 6 (November 2008) (PDF 361k)

  • A feature about the Securities and Exchange Commission's proposed IFRS roadmap
  • An article about IFRS and tax considerations related to share-based compensation plans
  • A brief overview of IAS 17 Leases
  • Preview of results from a recent IFRS poll
IFRS Insights Volume 5 (October 2008) (PDF 347k)
  • A feature about which US companies may be eligible to use IFRS
  • An article that looks at merger and acquisition considerations for IFRS
  • A brief overview of IFRS 3 Business Combinations
  • A real IFRS case study
IFRS Insights Volume 4 (September 2008) (PDF 910k)
  • An update on the proposed IFRS roadmap and rule changes from the Securities and Exchange Commission
  • An article about developing an IFRS Center of Excellence
  • A brief overview of IFRS 2 Share-based Payment
  • A Question & Answer section focusing on IFRS and the oil and gas industry
IFRS Insights Volume 3 (August 2008) (PDF 548k)
  • An update on convergence efforts
  • A summary on the SEC Roundtable held on August 4, 2008
  • An article that explores the technology and systems implications of IFRS
  • A brief overview of IAS 16 Property, Plant and Equipment
  • A Question & Answer section on IFRS lessons from the European Union

Click to view all previous issues of IFRS Insights.

Reminder about upcoming comment deadline

28 Nov 2008

We remind you that comments are due on 5 December 2008 on Exposure Draft: Simplifying Earnings per Share, which was issued 7 August 2008.

Among other things, the proposed 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 more information on IASB Exposure Draft: Simplifying Earnings per Share.

Common professional qualifications

28 Nov 2008

Nine of Europe's accountancy institutes have formed the Common Content Project to bring their professional qualifications closer together. One of the driving forces behind the project has been the globalisation of accounting and auditing regulation, so that a significant part of the relevant learning outcomes are IFRS/ISA based.

Common Content qualifications focus on the five service areas of professional accountants:
  • assurance and related services
  • performance measurement and reporting
  • strategic and business management
  • financial management
  • taxation and legal services
The nine institutes are from France, Germany, Ireland, Italy, Netherlands, and United Kingdom. The nine institutes have recently completed a 'rigorous self-assessment process by each Institute and a detailed review by teams from other Institutes' to confirm that each Institute has met the requirements for its continued membership in the project. Click for:


Revised IAS 39 reclassification amendments

27 Nov 2008

The IASB has issued an updated version of the recent Reclassification Amendments to IAS 39 'Financial Instruments: Recognition and Measurement' and IFRS 7 'Financial Instruments: Disclosures' (issued on 13 October 2008) to clarify the effective date of the amendments.

Following publication of the amendments, and in response to requests, the IASB subsequently clarified the effective date requirements at its meeting in October, as follows:

Any reclassification made on or after 1 November 2008 takes effect from the date of reclassification. However, any reclassification before 1 November 2008 can take effect from 1 July 2008 or a subsequent date. A reclassification cannot be applied retrospectively before 1 July 2008.

The clarification was published in the October issue of IASB Update and on IAS Plus, and it has now been incorporated in the revised version of the amendments, which can be downloaded from the IASB's website.

IFRIC 17 on distributions of non-cash assets

27 Nov 2008

The International Financial Reporting Interpretations Committee has issued IFRIC 17 'Distributions of Non-cash Assets to Owners'.

IFRIC 17 Distributions of Non-cash Assets to Owners clarifies that:

  • a dividend payable should be recognised when the dividend is appropriately authorised and is no longer at the discretion of the entity
  • an entity should measure the dividend payable at the fair value of the net assets to be distributed
  • an entity should recognise the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss
  • an entity to provide additional disclosures if the net assets being held for distribution to owners meet the definition of a discontinued operation.


  • applies to pro rata distributions of non-cash assets except for common control transactions.
  • is to be applied prospectively
  • is effective for annual periods beginning on or after 1 July 2009. Earlier application is permitted.


Click for the Press Release (PDF 51k).

Report of 6 November 2008 ARC meeting

26 Nov 2008

The Summary Report of the 6 November 2008 meeting of the EC Accounting Regulatory Committee has been released.

At that meeting, among other things, the ARC voted to recommend that the following pronouncements be endorsed for use in the EU:

Click to view the Summary Report of the 6 November 2008 Meeting (PDF 39k).

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