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Two CEBS reports on European bank disclosures

25 Jun 2009

The Committee of European Banking Supervisors (CEBS) has published two reports assessing banks' disclosures (a) in their 2008 audited annual reports on activities and exposures affected by the financial crisis and (b) under Basel Committee Pillar 3 (market discipline). Assessment of 2008 annual report disclosures.

The analysis covers 23 large banks with cross-border activities. CEBS found 'a significant increase of disclosures compared to the previous analyses.... At the same time CEBS identifies a number of areas within the CEBS good practices – mostly in the context of accounting-related disclosures – where disclosures could be further improved, including disclosures on fair value measurement and related methodologies'. CEBS intends to develop a set of high-level disclosure principles to help banks prepare disclosures covering areas or activities that warrant particular attention or that are under stress.
  • Assessment of 2008 Pillar 3 disclosures. CEBS analysed the Pillar 3 disclosures provided by 25 banks relating to a bank's risk profile and capital adequacy. CEBS found that 'banks have notably enhanced the level of quantitative and qualitative information regarding credit risk and securitisation activities; however there are specific areas where further improvements could be made':
    • the composition and characteristics of own funds
    • the back testing information for credit risk and market risk
    • the quantitative information on credit risk mitigations and counterparty credit risk
    • the granularity of information on securitisations
  • Click to download:


    Insurance working group meets next week

    25 Jun 2009

    The IASB's Insurance Working Group will meet on Monday and Tuesday 29 and 30 June 2009 at the Guoman Tower Hotel (Tower 1 Suite), St Katharine's Way, London.

    The meeting is open to public observation. The agenda is shown below. Agenda papers are Here.

    Insurance Working Group Agenda -- 29-30 June 2009, London

    Monday 29 June (10:00 to 17:00)

    • Introduction
    • Overview of papers for this meeting
    • Project planning
    • Update on other relevant projects
    • IASB and FASB Work Plan
    • Update on Financial Instruments
    • Users' input
    • Measurement
      • Overview
      • Measurement - tabular comparison of the candidates
      • Measurement - key issues on measurement
      • Measurement - measurement approaches for insurance contracts
      • Measurement - the IAS 37 model for insurance contracts
      • Measurement - Current exit price
    Tuesday 30 June (09:00 to 16:00)
    • Measurement (continued)
    • Presentation and Disclosure
    • Update on IAA activities
    • Acquisition costs
    • Field tests
    • Next steps and wrap up



    IASB invites comments on expected loss model

    25 Jun 2009

    The IASB has published a Request for Information on the feasibility of using an expected loss model for the impairment of financial assets.

    Impairment is one of the issues that the IASB is addressing in the second phase of its Comprehensive Review of IAS 39.
    • Incurred loss model. The current model in IAS 39 requires an entity to account for credit losses in financial assets only if an event (or a combination of events) has occurred that has a negative effect on future cash flows and that effect can be reliably estimated (this is known as the incurred loss model). A feature of that model is that an entity is not permitted to consider the effects of future expected losses. The financial crisis has highlighted this as an area of concern.
    • Expected loss model. At the request of the G20 leaders and others, the IASB is examining the expected loss model as an alternative. The expected loss model requires an entity to make an ongoing assessment of expected credit losses, which may require earlier recognition of credit losses. Proponents argue that this would better reflect the way that financial assets are priced and the way some companies manage their business.
    The IASB invites responses to its Request for Information by 1 September 2009. Click for:


    We comment on 13 IFRIC tentative agenda decisions

    24 Jun 2009

    Deloitte has submitted comments on 13 IFRIC tentative decisions not to add an item to its agenda.

    In all cases, we agree with IFRIC's proposed decision. In the following two cases we make additional comments or recommendations to the IFRIC staff about how best to explain the reasons for the decision:
    • Meaning of significant and prolonged for the purpose of assessing impairment of financial instruments.
    • Impairment of an investment in an associate.
    Click to download a Zip File of Our Letters (ZIP 1,384k) .


    iGAAP 2009 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained

    24 Jun 2009

    Deloitte LLP (United Kingdom) has developed iGAAP 2009 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained (Fifth Edition), which has been published by LexisNexis. This publication is the authoritative guide for financial instruments accounting under IFRSs.

    The 2009 edition expands last year's edition with further interpretations, examples, discussions from the IASB and the IFRIC, and updates on comparisons of IFRSs with US GAAP for financial instruments. It includes updated and extensive guidance on reclassifications, fair valuation in illiquid markets, and the recent amendment to IFRS 7 Improving Disclosures about Financial Instruments. It also includes extracts from 2008 annual reports illustrating the application of IFRS 7. iGAAP 2009 Financial Instruments: IAS 32, IAS 39 and IFRS 7 Explained (Fifth Edition) (992 pages, June 2009) can be purchased through You will find a permanent link to this and many other Deloitte IFRS publications on our IFRS Publications Page.


    Chinese translation of newsletter on fair value measurement

    24 Jun 2009

    Deloitte China has published the Chinese translation of the IAS Plus Update newsletter Exposure Draft Proposes Expanded Guidance on Fair Value Measurement.

    Click for:

    You will find links to these and many other IFRS materials in Chinese on our China Page.


    IFRS Questions and Answers in Chinese: Volumes 2 and 3

    24 Jun 2009

    Deloitte & Touche in Taiwan has published the second and third books of a three-volume series IFRS Questions and Answers in Chinese:

    • Volume 2 (220 pages) covers IAS 1, IAS 7, IAS 8, IAS 21, IAS 23, IAS 19, IAS 26, IAS 16, IAS 40, IAS 36 and IFRS 8.
    • Volume 3 (296 pages) covers IAS 11, IAS 17, IAS 24, IAS 33, IAS 34, IAS 41, IFRS 4, IAS 32, IAS 39, IFRS 7, IFRIC 12, IAS 37, IAS 10 and IFRS 1.
    • Volume 1 (214 pages) was released in February 2009 (see our Taiwan Page). It covers IFRS 2, IFRS 3, IFRS 5, IAS 2, IAS 12, IAS 18, IAS 20, IAS 27, IAS 28, IAS 31, and IAS 38.

    In explaining each Standard, the books include a few examples and condensed analysis of GAAP difference between IFRSs and Republic of China GAAP. You can purchase the books by email to IFRS Questions and Answers in Chinese: Volumes 2 and 3. The Deloitte Taiwan website has a page with More Information on each of the books.

    IASB webcasts on fair value measurement ED

    23 Jun 2009

    On Tuesday 30 June 2009, the IASB will host two live webcasts to introduce its 28 May 2009 exposure draft Fair Value Measurement.

    The ED proposes guidance on how fair value should be measured where it is required by existing standards. It does not propose to extend the use of fair value measurements in any way. It would add disclosure requirements about how fair values were determined. The proposed definition of fair value (FV) is identical to the definition in US FASB Statement 157, and the supporting guidance is also largely consistent with US GAAP. Comment deadline is 28 September 2009. The webcasts will include presentations followed by a Q&A session where registered participants can send in questions for the IASB staff to answer. Each webcast, including the question and answer session, is expected to last around one hour. Details of the webcasts:
    • Webcast Topic: Exposure Draft on Fair Value Measurement
    • Date: Tuesday, 30 June 2009
    • Times: 9:30am (London time) and again at 3:30pm (London time)
    • Presenters: Stephen Cooper, Member of the Board; Hilary Eastman, Project Manager; and Henri Venter, Assistant Project Manager,
    • Project Page on IASB Website – with links to register for the webcast
    • Project Page on IAS Plus


    IASCF publishes its 2008 annual report

    23 Jun 2009

    The International Accounting Standards Committee Foundation (IASCF), under which the IASB operates, has published its annual report for 2008. The report includes a comprehensive account of the activities of the IASCF and the IASB during 2008, as well as audited financial statements and details on the funding of the organisation.

    Here is the link to Download from the IASB's Website.


    Analyst Representative Group will meet 24 June 2009

    23 Jun 2009

    The IASB will meet with the Analyst Representative Group on Wednesday, 24 June 2009, 9:30am to 4:30pm at the IASB Offices, 30 Cannon Street, London.

    The meeting is open to public observation. Topics on the agenda are:
    • Work plan update
    • Financial statement presentation
    • Cash flows
    • Derecognition
    • Financial instruments
    • Revenue recognition

    Click for Analyst Representative Group (ARG) on the IASB's website.


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