The proposal, if adopted, will cause significant changes to the way businesses across the Asia-Pacific region prepare their financial statements. Topics that will be discussed include:

• an overview of the proposed new rules, including changes in the measurement of tax balances, particularly 'uncertain tax positions'
• key issues and impact areas for your business
• what you need to do now to prepare for the transition.

To register for the webcast, Click here.

To help achieve those goals, the G20 report calls on the accounting standard setters to improve standards for determining the fair values of financial instruments in illiquid markets and to take other actions regarding complexity of financial reporting, provisioning, and off balance sheet financing, among other matters. Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – G20: Implications for IFRSs (PDF 100k). The newsletter focuses in depth on G20 issues that affect financial reporting and highlights areas in which the International Accounting Standards Board and IASC Foundation Trustees are already active or have announced plans to address the G20's recommendations. The newsletter also discusses the accounting-related recommendations of two working groups that the G20 established in November 2008:

• Working Group 1: Enhancing Sound Regulation and Strengthening Transparency
• Working Group 2: Reinforcing International Cooperation and Promoting Integrity in Financial Markets

 

Highlights of the survey report include:

• 75% of respondents supported or strongly supported a movement toward a single set of high-quality accounting standards, such as IFRSs.
• 62% of respondents agreed or strongly agreed that the SEC should establish a date (the so-called 'date certain') for requiring US companies to use IFRSs.
• Over half (56%) of respondents surveyed indicated that the SEC should extend the option for early use of IFRSs to a broader group of US companies than outlined in the current SEC roadmap.
• 64% of respondents stated that no budget has yet been allocated for IFRS conversion, in contrast to the quarter (25%) who have budgeted for assessment and readiness, or all aspects of conversion.
• 56% of financial executives described the proposed SEC timeline to be 'about right' or could be accelerated further.
• Over half (54%) of survey respondents indicated some or sufficient in-house knowledge of IFRSs, while 40% acknowledged no in-house IFRS knowledge or experience.

 

Click for:

• Chinese Translation of Heads Up: FASB and IASB Issue Preliminary Views on Lease Accounting (PDF 351k).
• Here is the English Version (PDF 86k.

 

The ED seeks to clarify certain aspects of IAS 12 and reduce the income tax accounting differences between IFRSs and US GAAP. The comment deadline is 31 July 2009, with a final standard expected in 2010. Deloitte (United States) has published a Heads Up Newsletter (PDF 98k) highlighting the significant changes proposed for income tax accounting under IFRSs and comparing the proposals with existing practice under US GAAP.

 

The FSPs are effective for interim and annual periods ending after 15 June 2009, with limited earlier application permitted. The IASB has solicited views on the FSPs in their draft form – comments due 20 April 2009. Click for:

• FASB Press Release on Final FSPs (PDF 67k)
• Links to FASB website to download:
  • FSP FAS 157-4
  • FSP FAS 107-1 and APB 28-1
  • FSP FAS 115-2 and FAS 124-2
• Deloitte (United States) 'Breaking News' Heads Up Newsletter (PDF 150k) about the three final FSPs.
• Information about the IASB's Request for Views on the FASB proposals.

 

While we agree with many of the proposals in the discussion paper, we have identified a number of issues that we feel are essential to the development of a financial statement presentation model that provides useful information for users and can be practically implemented by preparers, including those noted below:

Cohesiveness objective. While we support the cohesiveness objective, the subjectivity involved in determining the appropriate classification (that is, operating, investing, and financing) of certain items may lead to inconsistent practices among similar entities (or for similar items within the same entity). Therefore, more detailed descriptions of the classification categories and further clarity regarding the parameters to be used in determining the appropriate classification of financial statement items would be beneficial for preparers and users. Further, the Boards need to address and potentially develop specific requirements and disclosures in accounting for changes in the category classification of items from one period to another. The management approach to classification of financial information. The management approach is appropriate because it provides management the ability to classify an entity's financial information based on the manner in which the underlying assets and liabilities are used, rather than specific rules dictating the presentation. However, there are certain practical concerns with such an approach, including a potential reduction in comparability of financial information among entities with similar operations and potential difficulties in determining classification due to the subjective nature of such an approach. Direct method of presenting operating cash flows. The Boards should consider additional analysis to understand the benefits to users of presenting cash flows using the direct method and such benefits outweigh the cost. Reconciliation schedule. We are concerned the proposed schedule (reconciling non-cash items and comprehensive income) may distract users from information that is relevant and create an unnecessary burden for preparers. Further, we are concerned this information, in addition to the information provided in the statement of cash flows under the direct method, is no different than the information presented under the indirect method of presenting cash flows.

Click for:

• Comment Letter
• Information about the Discussion Paper
• Past Deloitte Comment Letters to the IASB

 

On 11 March 2009 the FCAG published an Invitation to Comment requesting responses to seven questions to assist FCAG in discussing accounting and reporting matters related to the global financial crisis and making recommendations thereon to the IASB and the US FASB. This will be the FCAG's fourth meeting. You can find the IAS Plus notes from the earlier meetings Here (FASB website).

 

Presented below is the agenda for the meeting. The Financial Crisis Advisory Group will meet on Monday 20 April 2009 in London. The IASB will not meet in public session on Tuesday 21st.

IASB Board Meeting Agenda -- 22-24 April 2009, London

Wednesday 22 April 2009 Management Commentary Discontinued Operations (Amendments to IFRS 5) Post-employment Benefits Insurance Contracts Earnings per Share Thursday 23 April 2009 IFRS 1 - Additional Exemptions for First-time Adopters Rate-regulated Activities Liabilities - Amendments to IAS 37 Financial Instruments – FASB amendments on fair value measurement and other-than-temporary impairments Friday 24 April 2009 (morning only) Amendment to IFRS 2 – Group cash-settled share-based payment Technical Plan IFRS for Small and Medium-sized Entities Sweep issues Financial Instruments – Measurement of financial instruments

 

Currently, FASB Statement 162 The Hierarchy of Generally Accepted Accounting Principles identifies various sources of US GAAP and arranges them in a hierarchy for users to apply. Once the Codification is in effect, all of its content would carry the same level of authority. The proposal would apply to financial statements of nongovernmental entities that are presented in accordance with GAAP. Further information can be found Here on FASB's website. Comment deadline is 8 May 2009.