August

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Deloitte's iGAAP 2009 Chinese version volume 2

04 Aug 2009

Deloitte Taiwan has published the second volume of iGAAP 2009 Chinese Version.

This three-volume set, in traditional Chinese, includes all the content of iGAAP 2009 English Version. The Chinese version is organised as follows:
  • Volume 1: Preface, Framework, IAS 1, IAS 8, IAS 16, IAS 40, IAS 38, IAS 36, IAS 2, IAS 12, IAS 18, IAS 19, IFRS 2, IFRS 8, IAS 26
  • Volume 2: Includes all of the iGAAP chapters relating to financial instruments (IAS 32, IAS 39, IFRS 7) and insurance contracts (IFRS 4)
  • Volume 3: IAS 37, IAS 23, IAS 21, IFRS 5, IAS 7, IAS 10, IAS 24, IAS 27, IFRS 3, IAS 28, IAS 31, IAS 33, IAS 34, IAS 11, IAS 20, IAS 29, IAS 41, IFRS 1
The third volume will be published on 14 August 2009;. For information about purchasing iGAAP 2009 Chinese Version, please send an email to fltsai @ deloitte.com.tw.

 

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Additional IFRIC conference call meeting

04 Aug 2009

The IFRIC will hold a conference call meeting on 4 August 2009 between 12:00 and 13:00pm London time to discuss debt to equity swaps.

Click here for Information on listening to the conference call.

 

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55% of US CFOs unsure of IFRS impact

04 Aug 2009

A survey has found that 55% of US financial executives are unsure how their companies might be affected by a transition to IFRSs despite indications that the United States will likely adopt IFRSs in the coming years.

The survey was developed by Robert Half Management Resources and conducted by an independent research firm. The survey includes responses from 1,400 chief financial officers (CFOs) from a stratified random sample of US companies with 20 or more employees. CFOs were asked, 'If the United States adopts International Financial Reporting Standards, how familiar are you with how your company will be impacted?' Their responses:
  • Very familiar 8%
  • Somewhat familiar 31%
  • Somewhat unfamiliar 12%
  • Not familiar at all 43%
  • Don't know/no response 6%
Click to Download the Report (PDF 167k), which is titled International Financial Reporting Standards for the United States: Making the Talent Transition. The report includes a table of 'lessons learned from IFRS adoption in other countries' and a transition case study. The report is copyright by Robert Half Management Resources, and we are grateful to them for giving us permission to post it on IAS Plus.

 

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US SEC official discusses IFRSs

04 Aug 2009

Speaking at the annual meeting of the American Accounting Association in New York on 3 August 2009, Wayne Carnall, Chief Accountant of the Division of Corporation Finance of the US Securities and Exchange Commission, discussed issues relating to the use of IFRSs by SEC registrants.

Among the points Mr Carnall made:
  • In November 2007, the SEC voted to allow foreign registrants to use IFRSs without a reconciliation to US GAAP. Since then, only 137 of the more than 1,000 foreign registrants have chosen to use IFRSs.
  • The number of foreign registrants in the United States has been declining over the past few years, including a two-thirds drop in European registrants. Mr Carnall attributed the decline primarily to cost-benefit reasons.
  • In November 2008, the SEC invited comment on a proposed Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by US Issuers, Mr Carnall pointed out that the draft Roadmap was 'far from being a proposal' and, at this point, there is 'no date certain' regarding use of IFRSs by US domestic registrants. Mr Carnall expressed disappointment that the SEC received fewer than 250 comments on a proposal that could significantly affect all 12,000 SEC registrants.
  • In November 2008, concurrent with the proposed Roadmap, the SEC also proposed to permit voluntary early adoption for a limited group of large US registrants (based on industry and size) for periods ending after 15 December 2009 (filings in 2010). Mr Carnall said the responses 'did not indicate much support for the option'.
  • Mr Carnall noted that there continue to be 'significant and fundamental differences between IFRSs and US GAAP' both in terms of the written standards and how the standards are implemented.
  • He expressed concern that IFRSs might become regionalised or localised by differing local interpretations or modifications. The goal, he said, should be one common standard around the world.
  • Mr Carnall noted that there is no SEC prohibition for a US registrant to publish IFRS financial statements in addition to US GAAP statements – yet no company is doing that. If the market demanded it, or if companies saw that IFRS financial statements might improve their access to capital, they would likely be publishing IFRS financial statements voluntarily. He noted a reluctance of companies to invest resources into IFRSs (systems, training, etc) until the SEC gives a date certain.

 

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Four IASCF Trustees reappointed

03 Aug 2009

The Monitoring Board of the International Accounting Standards Committee Foundation has approved the reappointment of four IASCF Trustees for a second three-year term expiring on 31 December 2012:

  • David Sidwell, Former Chief Financial Officer, Morgan Stanley; Director, UBS; Board Member, Federal National Mortgage Association (United States)
  • Luigi Spaventa, Former Chairman, Commissione nazionale per le societa e la orsa (CONSOB); Professor Emeritus, University of Rome (Italy)
  • Paul Tellier, Former President and CEO, Bombardier and CN; former Clerk of the Privy Council and Secretary of the Cabinet; Director Rio Tinto plc and Rio Tinto Ltd.; Director McCain Foods and Chairman, Global Container Terminals (GCT) (Canada)
  • Jeff van Rooyen, Chief Executive, Uranus Investment Holdings; former Vice Chairman, Executive Committee, International Organization of Securities Commissions (IOSCO); former CEO, South African Financial Services Board (South Africa)
Click here for Complete List of Trustees.

 

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All Canadian registrants must use IFRSs

03 Aug 2009

The Canadian Securities Administrators (CSA) has concluded that all registrants should be required to use IFRSs for financial years beginning on or after 1 January 2011 regardless of whether the registrant fits the definition of a publicly accountable enterprise established by the Canadian Accounting Standards Board (AcSB).

The CSA's conclusion is set out in CSA Staff Notice 33-314 International Financial Reporting Standards and Registrants (PDF 31k).

Notice 33-314 also contains the following disclosure guidance on the changeover to IFRSs: As we set out in our previous notice, changing from current Canadian GAAP to IFRS will be a significant undertaking that may materially affect a registrant's reported financial position and results of operations. Registrants will need to provide comparative information for reporting periods in their first year under IFRS. For example, a registrant's financial statements for its year ended December 31, 2011 must include comparative IFRS information for the period ended December 31, 2010. Registrants will need to maintain appropriate records to prepare this comparative information. In addition, registrants with financial years ending December 31 will be required to prepare their working capital calculations on a basis consistent with IFRS beginning on January 1, 2011.
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Over half of US SMEs want separate standards

03 Aug 2009

A Deloitte survey has found that more than half (51%) of small and mid-size private company respondents (revenues less than US$1 billion) support separate accounting standards for private and public companies.

Deloitte surveyed finance professionals from 225 private companies in June 2009 to gather data and information about the challenges of current US GAAP and the level of interest in the IFRS for SMEs. Financial professionals of private companies from various industries and sizes responded. Two-thirds of the companies had 20 or fewer employees, and 42% had sales less than US$100 million. Highlights of the survey report include:
  • 51% of SME respondents believe that there should be separate accounting standards for public and private companies.
  • 43% of SME respondents are not aware of the IASB's standard IFRS for SMEs, indicating the need for more education.
  • SME respondents view fair value measurement (42%), accounting for income taxes (23%), and consolidations (10%) as the top areas of US GAAP in need of simplification.
  • 10% of SME respondents either currently use IFRSs or would consider adopting the IFRS for SMEs in the near term, while 63% would adopt when required.
Click to Download the Deloitte Survey Report (PDF 156k).

 

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IFAC asks G20 to adopt global standards

03 Aug 2009

The International Federation of Accountants (IFAC) has urged G20 leaders, at their 23-24 September 2009 meeting in Pittsburgh, Pennsylvania, USA, to encourage adoption and implementation of global accounting, auditing, and auditor independence standards.

IFAC also asks that further steps be taken to enhance the governance of the International Accounting Standards Board. IFAC's letter also includes recommendations on enhancing corporate governance, strengthening of the accountancy profession in developing countries, and developing new tools and metrics to achieve global sustainability. IFAC also asks the G20 to facilitate debate to resolve issues between financial reporting – designed to communicate business performance to investors – and prudential reporting-used to monitor and maintain financial stability. Click for:
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Extra IASB Board meeting 4 August 2009

03 Aug 2009

The IASB will hold an additional Board meeting by teleconference on Tuesday 4 August 2009 to discuss Post-employment Benefits – transitional provisions for a short-term amendment to the discount rate requirements in IAS 19. The meeting will start at 11:00am and is expected to last 15-30 minutes.

Observers will not be admitted to the meeting room, but the meeting will be available on line via a live audio webcast.
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FCAG recommendations on standard-setting

02 Aug 2009

The Financial Crisis Advisory Group (FCAG) – a high level group of recognised leaders with broad experience in international financial markets formed jointly by the IASB and the US FASB – has published its recommendations related to accounting standard-setting activities, and other changes to the international regulatory environment following the global financial crisis.

The report of the FCAG articulates four main principles and contains a series of recommendations to improve the functioning and effectiveness of global standard-setting. The chief areas addressed in the report are:
  • Effective financial reporting
  • Limitations of financial reporting
  • Convergence of accounting standards
  • Standard-setters' independence and accountability
The principles and a summary of the recommendations are set out in an appendix to the Press Release (PDF 30k). The FCAG will reconvene in December to review the progress made on its recommendations. Click to Download the Report (PDF 377k). Here is the link to our broade range of Information Relating to IFRSs and the Credit Crunch.

 

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