March

Coming soon – IFRS e-Learning in Spanish

13 Mar 2009

We are pleased to provide this early announcement that, within the next several months, Deloitte will be launching a Spanish version of the IFRS e-Learning site.

The site will initially include Spanish versions of approximately 20 of the existing IFRS e-Learning modules, with the remaining modules being added as translation is completed. All will be publicly available without charge, in the public interest, accessible from IAS Plus.

Es un placer anunciar anticipadamente que dentro de unos meses Deloitte lanzará la versión en español de la plataforma de formación IFRS e-Learning. La plataforma incluirá inicialmente las versiones en español de aproximadamente 20 de los módulos de IFRS e-Learning, siendo los restantes módulos añadidos cuando la traducción esté finalizada. Todo el material estará disponible y será de acceso gratuito, al ser de interés público, accesible a través de IAS Plus.

Revised agenda for March 2009 IASB meeting

13 Mar 2009

The IASB has released a revised agenda for its March 2009 meeting (below).

The session on Annual Improvements to IFRSs (previously scheduled for Tuesday 17 March) will now take place at 17:00h on Monday 16 March. Also, Financial Instruments Update has been added to the agenda on Tuesday morning 17 March. Further, representatives of the Board will meet with representatives of the European Financial Reporting Advisory Group on Monday 16 March from 11:00 to 13:00.

IASB Board Meeting Agenda16-20 March 2009, London

Monday 16 March 2009

  • Annual Improvements 2009
    • IFRIC 9 Reassessment of Embedded Derivatives – Scope of IFRS 3 (as revised in 2008)
    • IFRIC 16 Hedges of a Net Investment in a Foreign Operation – Amendment to the restriction on the entity that can hold hedging instruments
    • IAS 39 Financial Instruments: Recognition and Measurement – Scope exemption for business combination contracts

Tuesday 17 March 2009

Wednesday 18 March 2009

Thursday 19 March 2009

Friday 20 March 2009 (morning only)

We have concerns about related party proposals

12 Mar 2009

Deloitte has submitted a Letter of Comment on the IASB's exposure draft (ED) on 'Relationships with the State (Proposed amendments to IAS 24)'.

The ED proposes to simplify the disclosure requirements that apply to state-controlled entities under the existing IAS 24 Related Party Disclosures. An excerpt from our letter:

We agree that state-controlled entities may have difficulties in identifying all entities controlled, jointly controlled or significantly influenced by the same state. However, we are concerned that the proposed exemption as set out in the 2008 exposure draft is too broad. In addition, we have a number of concerns in relation to the revised definition of a related party.

Click for:

IFRS on embedded derivatives on reclassification

12 Mar 2009

The IASB has amended IFRIC 9 and IAS 39 to clarify the accounting treatment of embedded derivatives for entities that make use of the Reclassification Amendment issued by the IASB in October 2008. The reclassification amendment allows entities to reclassify particular financial instruments out of the 'fair value through profit or loss' category in specific circumstances.

These amendments to IFRIC 9 and IAS 39 clarify that on reclassification of a financial asset out of the 'fair value through profit or loss' category, all embedded derivatives in the reclassified instrument have to be assessed and, if necessary, separately accounted for in financial statements.

The amendments apply retrospectively and are effective for annual periods ending on or after 30 June 2009. Click for the IASB Press Release (PDF 22k).

 

Accounting legislation introduced in US Congress

11 Mar 2009

Proposed legislation – titled the 'Federal Accounting Oversight Board Act of 2009' and numbered as HR 1349 – has been introduced in the United States House of Representatives. The bill would establish a Federal Accounting Oversight Board (FAOB) that would be required to approve and oversee accounting principles and standards for the purposes of the financial reporting requirements of Federal financial regulatory agencies. The bill has been referred to the House Committee on Financial Services, which must decide whether to send it to the floor of the House for general debate and could amend it before doing so.

Under the proposal, the FAOB would consist of five members:

  • The Chairman of the Board of Governors of the Federal Reserve System (who would serve as FAOB chairman)
  • The Secretary of the Treasury
  • The Chairman of the Securities and Exchange Commission
  • The Chairman of the Federal Deposit Insurance Corporation
  • The Chairman of the Public Company Accounting Oversight Board

Click to download HR 1349 as introduced (PDF 178k). Here is the link to the webpage to follow progress of the bill. Below is an excerpt from the bill.

In approving and overseeing such accounting principles and standards, the FAOB shall consider –

  1. the extent to which accounting principles and standards create systemic risk exposure for
    1. the United States public;
    2. the United States financial markets; and
    3. global financial markets;
  2. the extent to which various accounting principles and standards resolve questions concerning liquid and illiquid instruments;
  3. whether certain accounting principles and standards should apply to distressed markets differently than well-functioning markets;
  4. the balance between investors' need to know a value of a company or financial institution's balance sheet at any given time versus financial regulators' responsibility to examine a company or financial institution's capital and value on both a liquidation and going concern basis;
  5. the accuracy and transparency of financial statements;
  6. the ability of investors and regulators to accurately judge the current and long term financial condition of companies and financial institutions from their financial statements;
  7. the need for accounting principles and standards to take into account the need for financial institutions to maintain adequate reserves to cover expected losses from assets held by such institution;
  8. the extent to which accounting principles and standards can improve the usefulness of financial reporting by focusing on the characteristics of relevance and reliability and on the qualities of comparability and consistency;
  9. the extent to which such principles and standards can be kept current to reflect changes in methods of doing business and changes in the economic environment; and
  10. any other factors that the FAOB considers appropriate.

Comment deadline on related party ED

11 Mar 2009

We remind you that comments are due on 13 March 2009 on the IASB's re-exposure draft 'Relationships with the State (Proposed amendments to IAS 24)'.

Click for more information on the revised exposure draft.

Agenda for 23-24 March IASB-FASB joint meeting

11 Mar 2009

The International Accounting Standards Board will hold a joint meeting with the US Financial Accounting Standards Board on Monday and Tuesday, 23-24 March 2009, at the Crowne Plaza, London - The City Hotel, 19 New Bridge Street, London, EC4V 6DB.

The meeting is open to public observation. Presented below is the agenda for the meeting.

IASB and FASB Joint Board Meeting Agenda23-24 March 2009, London

Monday 23 March 2009 (afternoon only)

  • Work Plan Review – Discussion of both Boards' work plans
  • Financial Statement Presentation
  • Consolidation and Derecognition

Tuesday 24 March 2009

  • Financial Instruments – Comprehensive new standard
  • Conceptual Framework
  • Provisioning
  • Fair value measurement
  • Financial instruments with the characteristics of equity

New IFRS insurance accounting newsletter

11 Mar 2009

Deloitte (United Kingdom) has launched a new monthly newsletter focusing on the joint IASB and FASB project to develop a new global financial reporting standard for insurance.

The IASB's project was begun by its predecessor, the IASC, and continued by the IASB. The IASB's first output was IFRS 4 Insurance Contracts – an interim standard, issued in 2004, aimed mainly at first-time adopters of IFRSs, with guidance on how existing IFRSs should be applied to insurance contracts. Since then, the IASB has been working on a new, comprehensive standard, with a discussion paper published in May 2007. In October 2008, the FASB decided to join in the IASB's insurance contracts project, with the goal of a single global insurance accounting standard. The goal is to publish an exposure draft for comment in the second half of 2009 and a final standard in 2011. The new Deloitte monthly newsletter will provide an update on progress being made by the IASB and FASB in their joint project. Click to download Issue #1 of the Insurance Accounting Newsletter (PDF 244k).

 

CEBS invites comments on financial reporting

11 Mar 2009

The Committee of European Banking Supervisors (CEBS) has invited comments on proposed amendments to the Guidelines on Financial Reporting (FINREP). Comments are due 10 June 2009.

CEBS will hold a public hearing on 27 May 2009 at its offices in London. The original FINREP was issued in December 2005 with the goals of increasing the comparability of financial information reported to different supervisors within the EU, increasing the cost-effectiveness of supervision across the EU, reducing reporting burden on cross-border credit institutions, and removing a potential obstacle to financial market integration. CEBS is proposing to amend FINREP to 'streamline financial reporting and achieve a greater degree of harmonisation'. Click for CEBS Press Release (PDF 20k).

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