Full convergence with IFRSs in Singapore by 2012

31 May 2009

The Singapore Accounting Standards Council has decided to fully converge Singapore Financial Reporting Standards with IFRSs by 2012. The fully-converged standards would apply to all Singapore-incorporated companies listed on the Singapore Stock Exchange.

This was announced in an address by Mr Tharman Shanmugaratnam, Singapore Minister for Finance, at an IFRS conference in Singapore on 27 May 2009. Click to Download Mr Shanmugaratnam's Address (PDF 85k). Here is an excerpt:

Singapore's Convergence Roadmap

As an international business and financial centre, Singapore has a strong stake and interest in the development of IFRS as the global accounting standard. We have long been an advocate for a single global accounting standard, and since 2002, Singapore has embarked on a strategy of closely modeling our Singapore Financial Reporting Standards or SFRS after the IFRS – deviating from IFRS only in very specific and exceptional instances where there are strong reasons backed by economic and business substance arguments.

Singapore companies have generally been 'IFRS-ready' and 'IFRS-compliant' in a substantive manner for a number of years now. With our experience implementing IFRS, Singapore is thus well placed to play an active role in the development of IFRS as the global accounting standard. The Singapore Accounting Standards Council has therefore decided to take a key step forward in its strategic directions, to work towards the full convergence of the SFRS with the IFRS for Singapore incorporated companies listed on the Singapore Stock Exchange by 2012.


Deloitte Canada Countdown IFRS transition newsletters

31 May 2009

Deloitte Canada has published the May 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:
  • Managing Costs on Transition to IFRS
  • The 'Real Deal' – real issues and solutions on IFRS transition relating to impairment
  • Just Released – CSA Staff Notice 52-324 Issues Relating to Changeover to IFRS
  • Deloitte Publications and Events and How to Access Them
  • An Update on Current IFRS events – including various important ED's or Discussion Papers
Click below for: You will find more information about financial reporting in Canada on our Canada Page.

European survey of users' information needs

30 May 2009

The European Financial Reporting Advisory Group (EFRAG) and the French national standard-setter (Conseil National de la Comptabilité) have jointly issued a report of a recent survey about the needs of users of financial statements in Europe.

32 user organisations in 10 countries took part in the survey. Users were almost unanimous in finding financial statements and management commentary the most useful sources of financial information. Amongst the improvements that users would like to see were:
  • more stability in reporting standards.
  • improved comparability.
  • simpler presentations that highlight key data and key disclosures.
  • better disclosure of risk management information.
  • more or better quality prospective information.
  • more highlighting of trends in growth and profitability.
Click to Download the Report (PDF 1,704k).


IASB webcasts on income tax exposure draft

30 May 2009

On 3 June 2009, the IASB will host two live webcasts introducing the exposure draft (ED) Income Tax.

The ED was published on 31 March 2009, with comments due 31 July 2009. The ED proposes to replace IAS 12 Income Taxes with a new standard that retains the 'temporary difference' approach in IAS 12. 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, strengthen the principle in the standard, and restructure the standard. Details of the webcasts:
  • Webcast Topic: IASB Exposure Draft on Income Tax
  • Date: Wednesday, 3 June 2009
  • Times: 9:30am (London time) and again at 3:30pm (London time)
  • Presenters: Robert Garnett, Member of the IASB, and Anne McGeachin, Senior Project Manager


IFRSs and private company reporting in the United States

29 May 2009

The Deloitte United States Center for Corporate Governance has published International Financial Reporting Standards: What it Means for Private Company Reporting.

This publication discusses the movement toward IFRSs and its implications for private company financial reporting in the United States. It also discusses some financial reporting issues that may be unique to private companies (also known as small and medium-sized entities, or SMEs), and the efforts of the IASB to develop a set of global standards geared specifically to private companies, the IFRS for SMEs. Finally, the paper discusses the potential benefits and challenges of using either IFRSs or IFRS for SMEs, as well as, some key questions and considerations for private company financial statement users and preparers. Also included is a comparison of financial reporting under proposed IFRS for SMEs with US GAAP in selected areas. Click to: Here is an excerpt from the report:

The benefits of global standards are not limited to public companies, as markets are also becoming integrated for private companies, both large and small. More and more private companies are looking to do business across borders and obtain financing from foreign sources. Reduced complexity, greater transparency, increased comparability, and improved efficiency are all potential benefits of IFRS and IFRS for Private Entities*. Both IFRS and IFRS for Private Entities also may reduce the burden of financial reporting on private companies, thereby reducing compliance costs.

Not only might private companies benefit from a common set of reporting standards, but the users of their financial statements, particularly those in different jurisdictions, would likely benefit as well. Users such as lenders, vendors, customers, venture capitalists, and non-management owners will need to understand only one set of standards in their dealings with private companies in different jurisdictions....

IFRS or IFRS for Private Entities may be a welcome alternative to US GAAP for many private companies. The factors that drive the choice of a reporting standard, however, are unique to each company's objectives and growth strategies. In making the choice, private companies will likely benefit from carefully evaluating the options and measuring the potential costs and benefits.

*Shortly after this publication went to press, the IASB decided that the final name of the standard will be IFRS for SMEs.


Stay Tuned Online – IFRS and UK GAAP update

29 May 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 IFRSs and other financial reporting issues.

Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July and November. (This particular webcast is an added one because of the number of recent IASB publications.) 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 28 May 2009 Stay Tuned Online IFRS and UK GAAP Update:
  • ED Income Tax
  • ED Derecognition: proposed amendments to IAS 39 and IFRS 7
  • DP Preliminary Views on Revenue Recognition in Contracts with Customers
  • DP Leases: Preliminary Views.
To access the recording Click Here. There's a permanent link on our UK Country Page.


IFRS insurance accounting newsletter

28 May 2009

Deloitte (United Kingdom) has published the May 2009 edition of its monthly newsletter focussing on the joint IASB and FASB project to develop a new, comprehensive, global financial reporting standard for insurance.

This issue covers in detail the key tentative decisions made by the IASB at its 22 April 2009 meeting. They were:
  • require insurers to recognise revenue when they generate new business.
  • the new business revenue, together with the acquisition expenses incurred to secure it, will provide the elements for the initial calibration of the residual margin or the recognition of day one loss.
Click to download May 2009 Edition of the Insurance Accounting Newsletter (PDF 240k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.


IPSASB reaffirms its IFRS convergence strategy

28 May 2009

At its 18-21 May 2009 in Washington DC, the International Public Sector Accounting Standards Board (IPSASB) reaffirmed its commitment to its global IFRS convergence program and the development of standards dealing with financial instruments.

The IPSASB confirmed that it will continue its full consultation on three financial instruments exposure drafts issued on 23 April 2009 rather than defer the process to wait for completion of current IASB financial instruments projects. The three IPSASB exposure drafts (which may be downloaded at are:
  • ED 37 Financial Instruments: Presentation
  • ED 38 Financial Instruments: Recognition and Measurement
  • ED 39 Financial Instruments: Disclosures
The IPSASB will consider any changes ultimately adopted by the IASB in due course. Comments on EDs 37-39 are due by 31 July 2009. Click for IPSASB Press Release (PDF 33k).


Two special IASB meetings in June

28 May 2009

The IASB will hold two special Board meetings in June, in addition to its regular monthly 15-19 June meeting, as follows:

  • Monday 1 June 2009, 16:30 to 18:00 (London time)
  • Friday 5 June 2009, 13:00 to 15:30 (London time)
The sole agenda topic of both meetings is the IASB's Comprehensive Financial Instruments Project to develop a replacement for IAS 39. Both meetings will be webcast.


IASB proposes to amend IFRIC 14

28 May 2009

The IASB has published an exposure draft of proposed amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

The proposed amendments are aimed at correcting an unintended consequence of IFRIC 14. As a result of the interpretation, entities are in some circumstances not permitted to recognise as an asset some prepayments for minimum funding contributions. The ED proposes to correct the problem. Comments on the ED are due 27 July 2009. Click for Press Release (PDF 96k).


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.