October

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AICPA launches new IFRS newsletter

08 Oct 2008

The American Institute of Certified Public Accountants has launched a new monthly newsletter on IFRSs called IFRS Report.

IFRS Report includes brief summaries of articles from a wide range of publications and other resources and provides links back to the original sources. You can Subscribe Here free of charge by providing a valid email address.

The first issue, published on 2 October 2008, covers the following topics:

IFRS Update

  • Foundation publishes guide to XBRL version of IFRS
  • US accountants intrigued by, wary of IFRS
  • IFRS shift will be challenging, rewarding
International Watch
  • European politicians urge changes to fair-value accounting rules
  • US move makes Japan reconsider adopting IFRS
Market Highlights
  • Senate approves rescue plan; House expected to vote again
Regulatory Developments
  • SEC issues clarifications of fair-value rules
  • IASB to discuss fair-value, off-balance-sheet accounting
IFRS at work
  • BYU accounting program prepares for shift to IFRS
AICPA News
  • Discuss IFRS with your peers through IFRS blog
  • Call for volunteers to work on convergence of international accounting standards

 

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Accounting Roundup – third quarter 2008 review

08 Oct 2008

We have posted Accounting Roundup: Third Quarter in Review–2008, prepared by the Accounting Standards and Communications Group of Deloitte LLP (USA).

This newsletter provides brief descriptions of pronouncements affecting accounting, financial reporting, and corporate governance issued during 3Q-2008 by standard setters and regulators including FASB, EITF, AICPA, SEC, FASAB, PCAOB, GASB, IASB, and IFRIC. This quarterly review consists of articles, adapted as necessary, from issues of Accounting Roundup published in July and August 2008, as well as new articles for the month of September. There's also information about upcoming Dbriefs Webcasts. You will find past issues Here. International and IFRS-related developments covered in this edition of Accounting Roundup are:
  • IASB Issues Additional Guidance on Hedge Accounting
  • IFRIC Issues Interpretation on Construction of Real Estate
  • IFRIC Issues Interpretation on Hedges of a Net Investment in a Foreign Operation
  • IASB Issues Proposed Amendments to IAS 33 on Earnings per Share
  • IASB Issues Proposed Amendments to Eight IFRSs
  • IASB Issues Exposure Draft on Discontinued Operations
  • IASB Issues Exposure Draft on IFRS 1 Exemptions
  • IFAC Reissues Auditing Standard on Related Parties
  • IFAC Issues Exposure Draft of IPSAS 5 on Borrowing Costs
  • IFAC Issues Proposal on Code of Ethics for Accountants
  • IASC Foundation Issues Discussion Document on Constitution Review
  • IASB Issues Draft Document From Expert Advisory Panel
Click to view Accounting Roundup: Third Quarter in Review–2008 (PDF 1,221k, 56 pages).

 

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ECOFIN conclusions on accounting valuations

08 Oct 2008

Our News Story of 7 October noted that the Eurogroup and EU Economic and Finance Ministers Council (ECOFIN) would be discussing accounting valuation issues at its meeting in Luxembourg on 6 and 7 October 2008. ECOFIN has adopted a broad range of Conclusions on a Coordinated EU Response to the Economic Slowdown.

Here is the conclusion on asset valuation:

On asset valuation, revised standards are urgently awaited from the International Accounting Standards Board; otherwise, persistent concern about the accounting treatment of assets will continue to undermine investor confidence.

Click to view Conclusions on a Coordinated EU Response to the Economic Slowdown (PDF 143k).

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Additional ECOFIN conclusions on accounting

08 Oct 2008

Our story immediately below reports on a conclusion that the Eurogroup and EU Economic and Finance Ministers Council (ECOFIN) reached on accounting valuation issues at its meeting in Luxembourg on 6 and 7 October 2008. ECOFIN has also published another set of conclusions titled Immediate Responses to Financial Turmoil that addresses, among many other things, several financial instruments accounting issues.

Specifically, ECOFIN makes recommendations on mark-to-market valuation rules and reclassification rules for financial instruments:

We underline the necessity of avoiding any distortion of treatment between US and European banks due to differences in accounting rules. We take note of the flexibility in the application of mark to market valuation under IFRS as outlined in recent guidance from the IASB. Ecofin strongly recommends that supervisors and auditors in the EU apply this new guidance immediately. We also consider that the issue of asset reclassification must be resolved quickly. To this end, we urge the IASB and the FASB to work together on this issue and welcome the readiness of the Commission to bring forward appropriate measures as soon as possible. We expect this issue to be solved by the end of the month, with the objective to implement as of the third quarter, in accordance with the relevant procedures.

Click to view Immediate Responses to Financial Turmoil (PDF 116k).

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Deloitte Alert on credit market turmoil

07 Oct 2008

Deloitte (United States) has published a Financial Reporting Alert on Potential Counterparty Default and Other Accounting Considerations Related to the Credit-Market Turmoil.

Deloitte Financial Reporting Alert 08-14 (PDF 70k) addresses the impact that recent market events, such as the bankruptcy of Lehman Brothers Holdings Inc. and the credit-standing deterioration of other financial institutions, may have on an entity's financial statements. This alert focuses on the following:
  • The impact of possible counterparty default on an entity's derivative contracts that are (1) designated as hedging instruments in cash flow or fair value hedging relationships and/or (2) accounted for under the normal purchases and normal sales exception criteria defined in Statement 133,1 as amended.
  • Other accounting considerations associated with counterparty default (or potential default), highlighted in Appendix A of the Alert.
  • Other accounting considerations arising from the current turmoil in the credit markets, highlighted in Appendix B of the Alert.
Although this Alert highlights a number of items preparers and auditors should consider, it is neither a comprehensive checklist nor a complete analysis. Organizations should consider their own facts and circumstances and monitor ongoing developments to determine the impact of market conditions on their financial statements. Consultation with independent accountants also may be advisable in certain circumstances.

 

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IAASB alert on fair value accounting estimates

07 Oct 2008

The staff of the International Auditing and Assurance Standards Board (IAASB) has released an audit practice alert Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment.

The alert was developed following consultation with the IAASB's Task Force on Fair Value Auditing Guidance, which is considering the need for new or modified guidance in light of current marketplace issues. The purpose of the alert is to highlight areas within the International Standards on Auditing (ISAs) that are particularly relevant in the audit of fair value accounting estimates in times of market uncertainty. The practice alert may downloaded free of charge from the IFAC Website.

 

European Union (old) Image

19-point plan emerges from EU G8 heads of state summit

07 Oct 2008

The heads of state of the four EU G8 member states (France, Britain, Germany and Italy) met on 4 October 2008 at the Elysee Palace in Paris in a 'mini-summit' on global financial problems.

The four national leaders were joined by the head of the European Central Bank and the President of the European Commission. At the end of the meeting, the leaders issued a 19-Point Plan (PDF 102k) with recommendations on various matters discussed at their meeting. Point number nine dealt with accounting:

9. We will ensure that European financial institutions are not disadvantaged vis-à-vis their international competitors in terms of accounting rules and of their interpretation. In this regard, European financial institutions should be given the same rules to reclassify financial instruments from the trading book to the banking book including those already held or issued. We urge the IASB and the FASB to work quickly together on this issue in accordance with their recent announcement. We also welcome the readiness of the Commission to bring forward appropriate measures as soon as possible. This issue must be resolved by the end of the month.
The IASB has already announced that it intends immediately to reconsider the current prohibition in IAS 39 against reclassifying financial instruments (see 'step 3' in our News Story of 4 October 2008).
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ECOFIN agenda includes accounting valuations

07 Oct 2008

The Eurogroup and EU Economic and Finance Ministers Council (ECOFIN) is meeting in Luxembourg on 6 and 7 October 2008.

The Agenda (PDF 115k) includes discussion of accounting valuation issues:
Financial stability and financial supervision
Ministers will continue discussions which took place at the Informal ECOFIN of Nice of 12-13 September 2008 on Financial Stability and Financial supervision. They will be looking at the need for a full and timely implementation of the October 2007 roadmap, and in particular the need to pursue the work to improve transparency in the banking sector and to make swift progress on accounting valuation at international level.
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Agenda for 20-21 October 2008 IASB-FASB meeting

06 Oct 2008

The International Accounting Standards Board will hold a joint meeting with the US Financial Accounting Standards Board at the FASB's offices in Norwalk, Connecticut USA on 20-21 October 2008. Presented below is the agenda for the meeting.

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Guide de Référence sur les IFRS 2008 (IFRSs in your Pocket 2008)

06 Oct 2008

Deloitte (Canada) has published Guide de Référence sur les IFRS 2008, a translation into French of our popular IFRSs in your Pocket 2008 guide.

The content of this 109-page booklet is the same as the English version, which means that it includes information about:
  • IASB structure and contact details.
  • IASB due process.
  • Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada.
  • Summaries of each IASB Standard (through IFRS 3 and the amendment to IAS 27) and Interpretation (through IFRIC 14), as well as the Framework and the Preface to IFRSs.
  • Background and current status of all current IASB projects.
  • IASC and IASB chronology.
  • Update on IFRS-US GAAP convergence.
  • Other useful IASB-related information.
Click to download Guide de Référence sur les IFRS 2008 (PDF 593k). Pocket guides in English and other languages are Here.

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