November

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IASCF XBRL Advisory Council meeting

05 Nov 2008

The XBRL Advisory Council of the IASC Foundation will meet on 11 November 2008 at the IASB's offices in London.

The agenda includes discussion of the XBRL taxonomies for IFRSs and the IFRS for Private Entities.

 

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Accounting Roundup – October 2008

05 Nov 2008

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

Topics covered in this issue (PDF 363k, 31 pages) include:

FASB Developments

  • FASB Issues Guidance on Measuring Fair Value of Financial Assets in an Inactive Market
  • FASB Issues Exposure Draft on Subsequent Events
  • FASB Issues Exposure Draft on Going Concern
  • FASB and IASB Issue Discussion Paper on Financial Statement Presentation
  • FASB Decides to Propose FSP to Delay Effective Date for Interpretation 48 (Uncertain Tax Positions) for Private Entities
  • FASB and IASB Announce Joint Response to Credit Crisis
  • FASB's Valuation Resource Group Discusses Nine Fair Value Topics

AICPA Developments

  • AICPA Issues SAS on Communicating Internal-Control-Related Matters
  • AICPA Issues SSAE on Integrated Audits of Nonpublic Companies
  • AICPA Issues Exposure Draft on Conducting an Audit in Accordance With GAAS

SEC Developments

  • SEC Extends Comment Period for Proposed Rule Redefining Annuity Contracts
  • SEC Issues Letter Clarifying Impairment Guidance on Perpetual Preferred Securities
  • SEC Comments on Executive Compensation Disclosures
  • SEC Holds Roundtable on Transparent Disclosures
  • SEC Begins Study of Mark-to-Market Accounting

PCAOB Developments

  • PCAOB Proposes Seven Auditing Standards on Risk Assessment
  • PCAOB Discusses Accomplishments in 2008 and Priorities for 2009

FASAB Developments

  • FASAB Issues Standard on Reporting Gains and Losses Attributable to Changes in Pension Obligation Assumptions

International Developments

  • IASB Issues Amendments Permitting Reclassification of Financial Instruments
  • IASB Proposes Amendments to Financial Instrument Disclosure Requirements
  • IASB Reveals Steps in Response to Credit Crisis
  • IAASB Issues Seven Revised International Standards on Auditing
  • IAASB Issues Practice Alert on Auditing Fair Value
  • IFAC Provides View Regarding International Standards on Auditing SMEs

Other Developments

  • Considerations Regarding the Emergency Economic Stabilization Act of 2008
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IFRS in tourism, hospitality and leisure industries

05 Nov 2008

Deloitte (United States) has published 'IFRS in Tourism, Hospitality and Leisure: More Than Just Accounting'.

This report provides practical industry insights on IFRS and includes useful sections on:

  • Challenges and opportunities facing hospitality companies
  • The potential implications of IFRS relating to human resources, regulatory, tax, treasury, contract management, accounting and technology issues
  • Evaluating approaches to IFRS conversion
  • Planning for IFRS adoption

Click to download IFRS in Tourism, Hospitality and Leisure (PDF 535k).

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IASB governance proposed for G20 meeting agenda

04 Nov 2008

Leaders of the G-20 countries, which include the world's richest nations and biggest emerging economies, will meet in Washington on 15 November 2008 to discuss the global financial crisis, with a goal of agreeing on specific steps that should be taken in response.

Reuters and others have reported that the EU finance ministers have requested that the agenda for the meeting address, among other matters, the governance of the IASB. Here is an excerpt from the Reuters Report that lists the action steps recommended by the EU finance ministers:

Reconsider accounting and prudential standards to improve their mutual consistency, and how financial stability could be better incorporated into the mandate of standard setters like the International Accounting Standards Board. The IASB has already agreed to ease the impact of fair-value accounting rules on banks after pressure from EU leaders.

The G-20 members, which together account for 90 percent of the world economy, are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. The Managing Director of the International Monetary Fund, the President of the World Bank, the United Nations Secretary-General, and the Chairman of the Financial Stability Forum have also been invited to participate in the 15 November 2008 meeting.

 

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We ask FASB to wait for converged answers

03 Nov 2008

Deloitte & Touche LLP (United States) has submitted to the FASB two comment letters urging FASB not to proceed with the following proposed amendments to two FASB pronouncements – FAS 140 on derecognition and FIN 46(R) on consolidation – but, rather, to wait for completion of the joint FASB-IASB projects on the two topics:

  • The Proposed FASB Statement Accounting for Transfers of Financial Assets – an amendment of FASB Statement No. 140 would change FASB's current derecognition model.
  • The Proposed FASB Statement Amendments to FASB Interpretation No. 46(R) would change FASB's current consolidation model.
Here is an extract from the FAS 140 (derecognition) letter. The same point is made in the other letter:

Rather than issuing this proposed Statement as a final standard, the FASB should work with the IASB to develop a common derecognition model that can be applied by all entities reporting under either US GAAP or IFRSs. Currently, the two boards are expected to issue joint final standards by 2010. Therefore, if the FASB were to issue this proposed Statement as a final standard, US registrants would have to apply three different derecognition models within a short time frame, resulting in operational challenges for preparers.

Because derecognition and consolidation are inextricably linked, we also strongly encourage the FASB and IASB to concurrently develop a common consolidation principle. The derecognition and consolidation principles should be conceptually consistent, based on the concept of control, and consistent with the definitions of an asset and a liability being developed in the joint conceptual framework. We believe that such consistent principles are fundamental to more faithfully representing the assets and liabilities of a reporting entity.
Click to download:

 

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IASB and FASB plan roundtables on the financial crisis

03 Nov 2008

The IASB and the US Financial Accounting Standards Board have announced that the first of three public roundtable discussions to identify financial reporting issues highlighted by the global financial crisis will be held in London on 14 November 2008. The roundtables will provide an opportunity for the two boards to hear input from a wide range of stakeholders including users and preparers of financial statements, governments, regulators, and others.

The roundtables are intended to help the boards identify any accounting issues that may require the urgent and immediate attention. Dates for the second and third roundtables, to be held in Norwalk, CT USA and Tokyo, will be announced shortly. Click for IASB Press Release (PDF 158k).

 

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Agenda for Insurance Working Group meeting

02 Nov 2008

The IASB's Insurance Working Group will meet on 10 and 11 November 2008 at the Hesperia London Victoria Hotel (Tate Gallery, mezzanine floor) in London.

The meeting is open to public observation (registration required). The agenda is below.

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Insurance – 10-11 November 2008, London

10 November 2008

  • Introduction
    • Overview of papers for this meeting
    • Project planning
    • Update on other relevant projects
    • IASB Work Plan
    • IASB's response to the credit crisis
  • Measurement approaches – overview
    • Candidate measurement approaches
    • Candidate measurement approaches – tabular comparison
    • Overview of responses from the comment letters
    • Candidate measurement approaches – example
  • User needs
11 November 2008
  • Financial Statement Presentation
  • Changes in insurance liabilities
  • Discount rate
  • Field testing
  • Next steps and wrap up

 

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Analyst Representative Group meeting

02 Nov 2008

The IASB will meet with the Analyst Representative Group on 12 November 2008 09:00-17:00h at the IASB Offices, 30 Cannon Street, London.

The meeting is open to public observation. Topics on the agenda are:

AGENDA FOR THE ANALYST REPRESENTATIVE GROUP MEETING
12 November 2008, London

 

  • IASB Work Plan and Activities
  • The credit crisis
    • ED IFRS 7 – disclosures re liquidity risk and fair value measurement guidance hierarchy
    • Impairment of Available for Sale financial instruments
    • Illiquid market expert panel
    • Public consultation processes
    • Future IASB activity
  • Fair value measurement
  • Consolidation – impending exposure draft
    • Recognition principles
    • Disclosures
  • Derecognition
    • Proposed model
  • IASB interactions and consultations
  • Summary

 

 

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Perspective on accounting standards in Germany

01 Nov 2008

In a presentation at the London School of Economics on 28 October 2008, Liesel Knorr, president of the German Accounting Standards Board, described the structure and activity of her organisation.

She also outlined Germany's accounting professional, legal, and regulatory environment and the accounting issues that are currently important in Germany. With permission, we have posted Ms Knorr's Presentation (PDF 69k).

 

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IASB publishes fair value guidance

01 Nov 2008

The IASB has published educational guidance on the application of fair value measurement when markets become inactive.

The guidance consists of a summary document prepared by IASB staff and the final report of the expert advisory panel established to consider the issue:
  • The summary document sets out the context of the expert advisory panel report and highlights important issues associated with measuring the fair value of financial instruments when markets become inactive. It takes into consideration and is consistent with recent documents issued by the US FASB and the US SEC.
  • The report of the expert advisory panel identifies practices that experts use for measuring the fair value of financial instruments when markets become inactive and practices for fair value disclosures in such situations. The report provides useful information and educational guidance about the processes used and judgements made when measuring and disclosing fair value.
Here are links to:

 

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Newsletter on proposed improvements to IFRS 7

01 Nov 2008

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter explaining the Proposals to Improve Disclosures about Financial Instruments (IFRS 7).

The proposals are set out in an Exposure Draft of proposed amendments to IFRS 7 Financial Instruments: Disclosures. The proposals form part of the IASB's response to the credit crisis and follow recommendations of the Financial Stability Forum, which had the support of the Group of Seven (G-7) Finance Ministers. The proposals also reflect discussions by the IASB's Expert Advisory Panel on measuring and disclosing fair values of financial instruments when markets are no longer active. The ED, titled Improving Disclosures about Financial Instruments, may be downloaded without charge from the IASB's Website. The comment letter deadline is 15 December 2008 with a proposed effective date of 1 July 2009.
Click to view Proposals to Improve Disclosures about Financial Instruments (IFRS 7) (PDF 202k). You will find all Past IAS Plus Newsletters Here.

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