April

Free access to basic IFRSs

20 Apr 2009

The International Accounting Standards Board has begun making available on its website, without charge, access to the versions of IFRSs (including interpretations) published in the most recent bound volume of IFRSs and the application guidance that is an integral part of those standards.

Free registration is required. The illustrative examples, implementation guidance, and bases for conclusions that accompany, but are not part of, the standards are available only to subscribers. The free standards are available in the following languages:
  • Dutch 2008
  • English 2009
  • French 2008
  • German 2008
  • Italian 2008
Each standard is a separate PDF file. You can access the standards on the IASB's Website Here for the English version and Here for the Translations. Also available are unofficial summaries of each standard, available in several languages.

 

IAS Plus Newsletter – Leases discussion paper

19 Apr 2009

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Boards Issue Preliminary Views on Lease Accounting.

On 19 March 2009, the IASB and the US Financial Accounting Standards Board jointly issued a Discussion Paper (DP) outlining their preliminary views on a new accounting model for leases from the perspective of lessees. The models in both boards' current standards is often criticised because lessees do not recognise their property rights or obligations under many leases even though those rights and obligations meet the definitions of assets and liabilities. The DP discusses various issues associated with lessor accounting, but the boards had no preliminary views on them (and, consequently, they are not dealt with in this newsletter). The IASB has requested comments on the DP by 17 July 2009. The newsletter includes a table summarising the preliminary views of each board as presented in the DP. It also includes a more detailed discussion on key topics in the DP.
Click for Newsletter.
Past issues of all IAS Plus newsletters are Here.

 

IAS Plus Newsletter – Derecognition exposure draft

19 Apr 2009

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – New Derecognition Model Proposed for Financial Instruments.

On 31 March 2009, the IASB published an exposure draft ED/2009/3 Derecognition: Proposed amendments to IAS 39 and IFRS 7. The ED proposes to replace the existing guidance on derecognition of financial assets and financial liabilities in IAS 39 Financial Instruments: Recognition and Measurement and the related disclosures required by IFRS 7 Financial Instruments: Disclosures. The ED also sets out an alternative derecognition model preferred by a minority of Board members. Comments are due by 31 July 2009. The Board plans public round-table discussions over the coming months to seek constituents' input and to explain the interaction between the proposals in the ED and the recent proposals on consolidation set out in ED 10 Consolidated Financial Statements.
Click for Newsletter.
Past issues of all IAS Plus newsletters are Here.

 

IASB employee benefits working group will meet

17 Apr 2009

The IASB's Employee Benefits Working Group will meet Tuesday 28 April 2009 from 10:00 to 17:00 at the Millennium Gloucester Hotel (Kensington Suite), 4-18 Harrington Gardens, London.

The entire agenda focuses on disclosure issues. Specific agenda topics are:
  • Welcome, introduction, and update on recent activities
  • Disclosures – General
    • Overview
    • Objectives
    • Materiality
    • Level of aggregation/disaggregation
  • Defined benefit plan asset disclosures
    • Fair value disclosures
    • Other disclosure issues
  • Risk disclosures
    • Alternative presentations of risks
  • Multi-employer plan disclosures
The meeting is open to public observation.

 

Investment professionals strongly favour one global GAAP

16 Apr 2009

91% of the 1,574 Chartered Financial Analysts responding to a CFA Institute survey support worldwide companies using a single set of accounting standards to prepare general purpose financial statements. 64% of respondents believe companies should use IFRSs as promulgated by the IASB, which maintains sole authority to make changes or exceptions to the standards.

Regarding a possible approach to adopting IFRSs in the United States, respondents were split, with 50% preferring a staged adoption approach as proposed in the US SEC roadmap, while 47% prefer adoption at the same date for all filers. Respondents were also divided on who should be responsible for ensuring consistent enforcement across countries – with 50% preferring a single global enforcement body and 47% preferring enforcement at the country level. Click for:

 

Comment deadline – IASB request for views

16 Apr 2009

We remind you that comments are due on 20 April 2009 on the IASB's Request for Views on Proposed FASB Amendments on Fair Value Measurement and Impairment Requirements.

On 19 March 2009, the IASB requested views on what were, then, two proposed FASB Staff Positions. The FASB has since adopted the two proposals as final FSPs, along with a third related FSP dealing with disclosures, as follows:
  • FSP FAS 157-4, which provides guidance on determining fair value when market activity has decreased
  • FSP FAS 115-2 and FAS 124-2, which addresses other-than-temporary impairments for debt securities
  • FSP FAS 107-1 and APB 28-1, which discusses fair value disclosures for financial instruments in interim periods
See the IAS Plus News Story of 14 April 2009 for more information. Also, Deloitte United States has published a Heads Up Newsletter (PDF 141k) titled FASB Issues Guidance on Measuring Fair Value When Market Activity Declines, Other-Than-Temporary Impairments, and Interim Fair Value Disclosures discussing the three FSPs. Further, on 7 April 2009 the IASB issued a Statement saying:

'Initial reports regarding new or additional divergences between IFRSs and US GAAP being created by these FSPs appear to be overstated. A preliminary review of the FASB's decisions by IASB staff indicates that FASB's objectives and approach on the application of fair value when a market is not active appear to be broadly similar to those in IFRSs.'

 

New IPSASB public sector standards handbook

16 Apr 2009

The International Public Sector Accounting Standards Board (IPSASB) has published the 2009 Handbook of International Public Sector Accounting Pronouncements. The IPSASB develops International Public Sector Accounting Standards (IPSASs) intended for national, state, and local governments and their agencies, as well as international public sector bodies.

The 2009 IPSASB Handbook contains all pronouncements of the IPSASB as of 31 December 2008. The handbook can be downloaded free of charge (two PDF files) from the IFAC Online Bookstore (www.ifac.org/store). Printed copies can be ordered now for immediate shipment – free of charge, except for a US$25.00 shipping cost.

 

IASB amends 12 IFRSs

15 Apr 2009

The IASB has issued 'Improvements to IFRSs' – a collection of amendments to twelve International Financial Reporting Standards – as part of its program of annual improvements to its standards. The IASB uses the annual improvements project to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The latest amendments were included in exposure drafts of proposed amendments to IFRSs published in October 2007, August 2008, and January 2009. Most of the amendments are effective for annual periods beginning on or after 1 January 2010, although entities are permitted to adopt them earlier.

During its deliberations of comments received on the exposure draft of Proposed Improvements to IFRSs published in August 2008, the IASB decided to postpone reconsideration of two IAS 39 issues (relating to the fair value option and bifurcation of an embedded foreign currency derivative) until more analysis could be completed. Consequently, with the document published today, all the other issues included in the three exposure drafts have been finalised or removed from the IASB's agenda.

The following table lists the IFRSs and topics addressed by the amendments. Click for IASB Press Release (PDF 45k).

 

IFRSSubject of amendmentEffective for annual periods beginning

IFRS 2 Share-based Payment

Scope of IFRS 2 and revised IFRS 3

1 July 2009

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Disclosures of non-current assets (or disposal groups) classified as held for sale or discontinued operations

1 January 2010

IFRS 8 Operating Segments

Disclosure of information about segment assets

1 January 2010

IAS 1 Presentation of Financial Statements

Current/non-current classification of convertible instruments

1 January 2010

IAS 7 Statement of Cash Flows

Classification of expenditures on unrecognised assets

1 January 2010

IAS 17 Leases

Classification of leases of land and buildings

1 January 2010

IAS 18 Revenue

Determining whether an entity is acting as a principal or as an agent

None – amendment to non-mandatory guidance

IAS 36 Impairment of Assets

Unit of accounting for goodwill impairment test

1 January 2010

IAS 38 Intangible Assets

Additional consequential amendments arising from revised IFRS 3

Measuring the fair value of an intangible asset acquired in a business combination

1 July 2009

IAS 39 Financial Instruments: Recognition and Measurement

Treating loan prepayment penalties as closely related embedded derivatives

Scope exemption for business combination contracts

Cash flow hedge accounting

1 January 2010

IFRIC 9 Reassessment of Embedded Derivatives

Scope of IFRIC 9 and revised IFRS 3

1 July 2009

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

Amendment to the restriction on the entity the entity that can hold hedging instruments

1 July 2009

 

Accounting implications of carbon emissions trading

15 Apr 2009

The Australian government has published an exposure draft of proposed legislation that would establish a 'Carbon Pollution Reduction Scheme' that would be effective from 1 July 2010. Under the proposal, organisations with facilities in specified sectors (stationary energy, transport, etc) that emit more than 25,000 tonnes of CO2-equivalent will be required to surrender an emissions permit for each tonne of CO2-equivalent produced in that year.

The legislation will create a 'cap and trade' scheme. The Government will set the volume of allowable emissions (the cap) and the market will determine the price of the permits based on supply and demand. Deloitte Australia has published Australian Accounting Alert 2009/3 (PDF 447k) that examines the potential effects of the legislation on current financial reporting. Such effects may include:
  • Reassessment of impairment models – Is the legislation an impairment trigger? How does it affect the measurement of recoverable amount?
  • Provisions and contingent liabilities – The legislation may affect the recognition and measurement of provisions, for example, s provision for the rehabilitation of waste disposal sites
  • Impact of contractual 'carbon clauses' on the valuation of derivatives and hedging
  • Disclosure of significant adjustments and estimation uncertainties
  • Accounting for emission rights. In this regard, the Alert notes:

    There is currently no formal guidance at international or Australian levels on how to account for permits issued under emission trading schemes. IFRIC 3 Emission Rights was withdrawn in June 2005 by the IASB because of a lack of symmetry between the recognition and measurement of the permit asset and the emissions obligation. The IASB and Australian Accounting Standards Board have both added the accounting for emission rights to their respective agendas; however an exposure draft is not expected from the IASB until mid 2009. At the March 2009 meeting, the IASB agreed that free permits or allowances should be recognised as an asset and measured at fair value. However, the Board could not agree on how the credit arising from the recognition of the asset should be treated (as revenue or a performance obligation liability) – this will be debated at a future meeting.

  • Disclosures under Australian Stock Exchange rules – The ASX requires disclosure of how an entity manages its material business risks

 

Heads Up on FASB fair value FSPs

15 Apr 2009

Deloitte United States has published a Heads Up Newsletter titled FASB Issues Guidance on Measuring Fair Value When Market Activity Declines, Other-Than-Temporary Impairments, and Interim Fair Value Disclosures.

The newletter discusses three recently issued Staff Positions (FSPs):

  • FSP FAS 157-4, which provides guidance on determining fair value when market activity has decreased
  • FSP FAS 115-2 and FAS 124-2, which addresses other-than-temporary impairments for debt securities
  • FSP FAS 107-1 and APB 28-1, which discusses fair value disclosures for financial instruments in interim periods
Click for Heads Up Newsletter (PDF 141k).
See also the IAS Plus News Story of 14 April 2009.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.