Heads Up on IASB-FASB leases discussion paper

31 Mar 2009

We have posted a new issue of the 'Heads Up' Newsletter: FASB and IASB Issue Preliminary Views on Lease Accounting: Boards Propose to Eliminate Operating Leases from Deloitte (United States).

This Heads Up reviews the Discussion Paper issued on 19 March 2009 jointly by the IASB and the FASB outlining the boards' preliminary views on a new lease accounting model. The model is based on the principle that all leases give rise to liabilities for future rental payments and assets (the right to use the leased asset) that should be recognised in an entity's statement of financial position. Comment deadline on the discussion paper is 17 July 2009.

Click for Heads Up Newsletter: FASB and IASB Issue Preliminary Views on Lease Accounting: Boards Propose to Eliminate Operating Leases (PDF 117k).

2008 IFRS compliance questionnaire in Spanish

31 Mar 2009

Deloitte Colombia has translated into Spanish the IFRS Compliance Questionnaire for 2008. The questionnaire summarises the recognition and measurement requirements in IFRSs at 31 October 2008, to assist in considering compliance with those pronouncements.

It is not a substitute for your understanding of such pronouncements and the exercise of your judgment. Users of the questionnaire are presumed to have a thorough understanding of the pronouncements and should refer to the text of the pronouncements, as necessary, in considering particular items in this questionnaire. The items in this questionnaire are referenced to the applicable sections of the IFRSs. Click to download:


IASB proposes a new income tax standard

31 Mar 2009

The IASB has invited comment an exposure draft proposing to replace IAS 12 'Income Taxes' with a new standard.

The proposed standard (set out in ED/2009/2 Income Tax) retains the basic IAS 12 approach to accounting for income tax, known as the temporary difference approach. The objective of that approach is to recognise now the future tax consequences of past events and transactions, rather than waiting until the tax is payable or recoverable. Although the proposed standard retains the same principle, the IASB proposes to remove most of the exceptions in IAS 12, to simplify the accounting and strengthen the principle in the standard. In addition, the IASB proposes a changed structure for the standard that will make it easier to use.
Comments on the exposure draft are due by 31 July 2009. The proposal also more closely aligns international standards with FASB Statement 109 Accounting for Income Taxes. Click for IASB Press Release on Income Tax (PDF 101k).

Proposals to change IAS 12 include:

  • A new definition of tax basis: 'the measurement under applicable substantively enacted tax law of an asset, liability, or other item'.
  • Tax basis determined assuming recovery of the carrying amount of the asset by sale, rather than management expectation of sale or use.
  • Deferred tax not recognised on initial recognition of an asset or liability whose recovery or settlement will have no effect on taxable profit.
  • Revised definitions of tax credit and investment tax credit.
  • On initial measurement, assets and liabilities that have tax bases different from their initial carrying amounts are disaggregated into (a) an asset or liability excluding entity-specific tax effects and (b) any entity-specific tax advantage or disadvantage. An entity would recognise and measure the former in accordance with IFRSs and recognise a deferred tax asset or liability for any resulting temporary difference between the carrying amount and the tax basis. If the consideration paid or received differs from the total recognised amounts of the acquired assets and liabilities (including deferred tax), an entity recognises the difference as an allowance against, or premium on, the deferred tax asset or liability.
  • The exception from recognising a deferred tax asset or liability arising from investments in subsidiaries, branches, associates and joint ventures will be restricted to investments in foreign subsidiaries, joint ventures or branches (no exception for associates).
  • Deferred tax assets would be recognised in full, with a valuation allowance to reduce the carrying amount to the highest amount that is more likely than not to be realisable. This is the FASB SFAS 109 approach. Under IAS 12 currently these are netted.
  • Uncertainty would be reflected by measuring current and deferred tax assets and liabilities using the probability-weighted average amounts of possible outcomes assuming that the tax authorities will examine the amounts reported to them by the entity and have full knowledge of all relevant information.
  • Where different tax rates apply to distributed and undistributed profits, current and deferred tax assets and liabilities would reflect the entity's expectations of future distributions.
  • Income tax expense would be allocated to the components of comprehensive income and equity using a SFAS 109 approach.
  • Deferred tax assets and liabilities would be classified as either current or non-current based on how the related non-tax asset or liability is classified. This would amend IAS 1, which currently treats all deferred tax to be classified as non-current.

Comment deadline – Financial Crisis Advisory Group

31 Mar 2009

We remind you that comments are due on 2 April 2009 on Request for Input from the Financial Crisis Advisory Group (FCAG).

FCAG is seeking responses to a set of questions to assist the FCAG in discussing accounting and reporting matters related to the financial crisis and making recommendations thereon to the IASB and the FASB.

Deloitte Canada 'Countdown' IFRS transition newsletter

31 Mar 2009

Deloitte Canada has published the March 2009 issue of their 'Countdown' IFRS transition newsletter, to discuss practical issues Canadian companies are facing in IFRS transition as well as to provide an update on recent IFRS events.

Articles in this issue include:
  • IFRS disclosures in management discussion and analysis (MD&A)
  • The 'Real Deal' – implementation of the financial instruments standards
  • Deloitte IFRS publications and events
  • International Round-up
Click below for: You will find more information about financial reporting in Canada on our Canada page.

Introduction to IFRSs (Danish)

31 Mar 2009

Deloitte Denmark has published IFRS – Introduction to International Financial Reporting Standards (Introduktion til de internationale regnskabsstandarder).

This 314-page book, in the Danish language, summarises each IFRS/IAS together with relevant interpretations (IFRIC/SIC) as well as the main differences between IFRS and Danish GAAP. The publication also includes a short introduction to key factors in a successful conversion to IFRSs as well as helpful checklists on key differences between IFRSs and Danish GAAP and on Danish accounting rules that must be applied even if the company is reporting under IFRSs. Click here to download IFRS - Introduction to International Financial Reporting Standards in Danish (PDF 5.015mb). To order a printed copy (ISBN: 978-87-89152-00-4) please send an email to

IASB issues derecognition exposure draft

31 Mar 2009

The IASB has invited comment an exposure draft of proposals to improve the IAS 39 requirements for derecognition of financial instruments.

Derecognition means removing a financial instrument from an entity's financial statements. This occurs if the entity no longer controls a financial asset or no longer has an obligation to settle a financial liability. The IASB is also proposing to enhance the disclosures currently in IFRS 7, especially in situations where an entity continues to have an ongoing involvement in a financial asset that would be derecognised under the proposals.

The derecognition exposure draft (ED/2009/3 Derecognition) is part of the IASB's comprehensive review of off-balance sheet activities; in December 2008, the IASB published ED 10 on Consolidation to tighten the requirements for identifying which entities a company controls, and therefore consolidates. The IASB will hold public roundtables to seek wider views on its derecognition and consolidation proposals (dates to be announced). Comments on the derecognition exposure draft are due by 31 July 2009. Click for IASB Press Release on Derecognition (PDF 22k).


Brief summary of the proposals

The proposed amendments would replace the approach to derecognition of financial assets in IAS 39 with an approach that is similar in that

  • it uses the same criteria for when a transferred part of a financial asset qualifies to be assessed for derecognition (with some additional guidance to address known application issues)
  • it uses a test of control (although unlike IAS 39 that test has primacy
  • many of the derecognition outcomes will be similar (the notable exceptions being transfers, such as repurchase agreements, involving readily obtainable financial assets).

However, the proposed approach is different from IAS 39 in that it does not combine elements of several derecognition concepts but rather focuses on a single element (control). As a result, unlike IAS 39, the proposed approach does not have:

  • a test to evaluate the extent of risks and rewards retained
  • specific pass-through requirements, or
  • a requirement for a transferor (in a transfer that fails derecognition) to recognise and measure a financial asset to the extent of its continuing involvement.


New IAS 34 Interim reporting guide and checklist

28 Mar 2009

Deloitte's IFRS Global Office has published an updated 76-page guide to IAS 34 'Interim Financial Reporting', as well as a checklist of the requirements of IAS 34 formatted to allow the recording of a review of interim financial statements, with a place to indicate yes/no/not-applicable for each item.

New IAESB education handbook

27 Mar 2009

The International Accounting Education Standards Board (IAESB) has released the 2009 edition of its 'Handbook of International Education Pronouncements'.

The Handbook contains the IAESB's eight International Education Standards (IESs), including the IAESB Framework for International Education Pronouncements and Introduction to International Education Standards, as well as three International Education Practice Statements. The handbook can be downloaded free of charge in PDF format from the IFAC website. Printed copies can be ordered now for shipment in early April.


Stay Tuned Online – IFRS and UK GAAP updates

27 Mar 2009

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRS and other financial reporting issues.

Each update lasts no more than an hour, and sessions are held three times a year, approximately at the end of March, July and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation. The topics covered in the 26 March 2009 Stay Tuned Online IFRS and UK GAAP Update:
  • latest developments in IFRSs
  • three current IASB projects: consolidation, revenue recognition, leases
  • IFRIC 17 Distributions of Non-cash Assets to Owners
  • IFRIC 18 Transfers of Assets from Customers
  • going concern and liquidity risk
  • UK developments
To access the recording click here.

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