The consultation paper – titled Auditing Complex Financial Instruments – recognises the strong demand from auditors and preparers for further guidance on auditing in situations of illiquid markets, which currently pose the greatest challenges for them. Current IAASB guidance is in International Auditing Practice Statement 1012 Auditing Derivative Financial Instruments. The consultation paper incorporates recent work by the UK Auditing Practices Board on the same topic, and asks specific questions about how that guidance might be adapted or supplemented for application in the international context. The consultation paper may be Downloaded from IAASB's Website. Comments are due by 15 January 2010.

 

Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

Click to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.
The Board will also hold a second Special Meeting on 16 October 2009 to discuss the IAS 39 project, as well as its Regular Monthly Meeting on 19-23 October 2009.

 

The objective of this first meeting in November is to establish and agree on a constitution for the AOSSG and to discuss and to provide input on several of the most recent draft proposals issued by the International Accounting Standards Board. The discussions will include views on the fair value measurement, the presentation of financial statements, revenue recognition, and IAS 39.

Standard-setters from at least 24 countries have confirmed that they are attending the AOSSG Meeting and will be signing the Memorandum of Understanding (MoU) of AOSSG. These include Australia, China, India, Japan, Hong Kong, Korea, Malaysia, New Zealand, Pakistan, Saudi Arabia, and Singapore.

Click for press release (PDF 65k). We will report on the activities of AOSSG on IAS Plus from time to time, and we have created a new AOSSG Page on IAS Plus where we will a keep a record of our AOSSG news.

 

A section of that report examines the accounting environment in Russia. For historical reasons, the Russian financial reporting has been determined by the state rather than the accounting profession. Russian Accounting Standards (RAS) tend to be a summarised version of IFRSs, with modifications and options that allow the financial statements to be consistent with tax laws and regulations. Doing Business in Russia 2009 includes information about which entities are required to be audited, where financial statements are filed, and recent trends toward voluntary publication of IFRS financial statements. Some differences between IFRSs and Russian Accounting Standards are noted – as summarised below. Here is our Russian Country Page.

Differences between Russian Accounting Standards and IFRSs The practical application of RAS results in some significant differences compared to IFRSs, in particular, the following: Financial statements are generally prepared on a historical cost basis with only limited use of revaluations The fair value concept is not widely applied, except for investments in market traded securities Finance leases may be capitalised,but usually are not Assets are not normally tested for impairment (except for intangible assets) The useful lives of fixed assets tend to be in line with the useful lives specified for tax purposes The assets and liabilities of an entity which has been acquired are measured and maintained at book value at the date of acquisition Goodwill on acquisition (positive and negative) is amortised over the shorter of 20 years or the life of the acquirer and is generally not subject to an annual impairment test Provisions (such as for bad debts) are generally not created Revenue or expenditure is only recognised after all the preceding primary documentation supporting the transaction has been received, in accordance with the tax rules Deferred tax is generally calculated using the income statement method, although the methodology differs There is no direct requirement to prepare consolidated accounts

Click to view Doing Business in Russia 2009 (PDF 2,330k, 80 pages).

We have now posted No 14:

• Bulletin No 14 (13 October 2009) discusses Section 18 of the IFRS for SMEs, which deals with intangible assets. Click to Download Bulletin 14 (PDF 162k).

We have many resources in Spanish Here.

 

This is a translation of the English-language Deloitte newsletter Insurance Accounting Newsletter No 7 – Filing for Divorce? (PDF 173k). These newsletters address the IASB's project to develop a comprehensive IFRS for insurance contracts.

Click to view Boletín Sobre la Contabilidad de Seguros No 7 (Español) – ¿Pidiendo el divorcio? (PDF 54k). We have many resources in Spanish Here.

 

A draft agenda has been posted on the IASB's website and is summarised below. The SAC provides a forum for the IASB to consult a wide range of interested parties affected by the IASB's work, with the objective of:

• advising the Board on agenda decisions and priorities in the Board's work,
• informing the Board of the views of the organisations and individuals on the Council on major standard-setting projects, and
• giving other advice to the Board or to the Trustees.

Standards Advisory Council Meeting Agenda 12-13 November 2009, London

Thursday 12 November 2009 (10:00am-17:45pm) Welcome and SAC Chairman's preview Overview of last four months IASB Activities Report of the Chair and Vice-Chairs of SAC Update on major projects that are the most challenging in terms of meeting the June 2011 deadline Other activities Financial Instruments project SAC Member activities – SAC members report on significant developments in their organisations relating to IFRSs Priorities for the IASB work plan post June 2011 Suggestion of topics for the IASB work plan assuming the June 2011 deadline for projects will be met Break-out sessions (report back Friday morning) Disclosures – reducing complexity Friday 13 November 2009 (9:15am to Noon) Priorities for the IASB work plan post June 2011 – Report back from Thursday's break-out sessions Constitutional Review

The present term of the TEG Chairman (Stig Enevoldsen) expires on 31 March 2010, and the terms of eleven of the twelve members of TEG members also expire on that date.

 

The newsletter considers the IFRS implications for a number of transfer pricing methods, including

• the comparable uncontrolled price (CUP) method
• the comparable uncontrolled transaction (CUT) method
• the resale price method (RPM)
• the cost plus method
• the comparable profits method (CPM)

Click to Download the Arm's Length Standard Newsletter (PDF 339k).