October

IFRS illustrative financial statements for 2009

04 Oct 2009

We have posted Deloitte's IFRS Illustrative Financial Statements for 2009.

This posting is a pre-production version of these model financial statements, which means that they do not have full formatting or covers. We expect to post a final 'production version' by the end of October 2009.

IFRS Illustrative Financial Statements for 2009 – What's New

In these 2009 model financial statements, we have illustrated the impact of the adoption of a number of new and revised Standards and Interpretations as follows:

  • IAS 1 (as revised in 2007) Presentation of Financial Statements
  • IFRS 8 Operating Segments
  • Improving Disclosures about Financial Instruments (Amendments to IFRS 7 Financial Instruments: Disclosures)
  • Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (adopted in advance of effective date of 1 January 2010)
  • Amendments to IAS 7 Statement of Cash Flows (adopted in advance of effective date of 1 January 2010)
  • IFRS 3 (as revised in 2008) Business Combinations
  • IAS 27 (as revised in 2008) Consolidated and Separate Financial Statements
  • IAS 28 (as revised in 2008) Investments in Associates
  • IFRIC 13 Customer Loyalty Programmes
  • Amendments to IAS 38 Intangible Assets (part of 'Improvements to IFRSs 2008')
  • Amendments to IAS 40 Investment Property (part of 'Improvements to IFRSs 2008')
  • Amendments to IAS 20 Accounting for Government Grants and Disclosure of Government Assistance (part of 'Improvements to IFRSs 2008')
  • Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures regarding reclassifications of financial assets
The following new and revised Standards and Interpretations have also been adopted in these financial statements. However, their adoption did not have any significant impact on the amounts reported but may impact the accounting for future transactions or arrangements:
  • Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
  • Amendments to IFRS 2 Share-based Payment – Vesting Conditions and Cancellations
  • IAS 23 (as revised in 2007) Borrowing Costs
  • Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation
  • Amendments to IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items
  • IFRIC 15 Agreements for the Construction of Real Estate
  • IFRIC 16 Hedges of a Net Investment in a Foreign Operation
  • IFRIC 17 Distributions of Non-cash Assets to Owners (adopted in advance of effective date of 1 July 2009)
  • IFRIC 18 Transfers of Assets from Customers (adopted in advance of effective date of transfers of assets from customers received on or after 1 July 2009)
  • Various Improvements to IFRSs (2008)
  • Various Improvements to IFRSs (2009)
Click to view IFRS Illustrative Financial Statements for 2009 (Word file, Zipped 702k). Our comprehensive page of IFRS model financial statements and related checklists is Here.

 

Global IFRS and Offerings Services newsletter

04 Oct 2009

We have posted Deloitte's US Reporting Newsletter for Non-US Based Companies June-August 2009 Edition – includes news through 15 August 2009.

The newsletter is developed by Deloitte's Global IFRS and Offerings Services (GIOS) team – Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US GAAP and IFRSs and in complying with the SEC's financial reporting rules. The GIOS Newsletter is an update on relevant GAAP, regulatory, and other matters, webcasts, and publications, with hyperlinks to source material. 

In this issue of the GIOS newsletter:

IFRS Matters

  • IASB Issues Exposure Draft on Fair Value Measurements
  • IASB Issues IFRS for Small and Medium-Sized Entities
  • IASB Seeks Feedback on Impairment Model
  • IASB Publishes Discussion Paper on Accounting for Credit Risk in the Measurement of Liabilities
  • IASB Amends Accounting for Share-Based Payments
  • IASB Proposes Guidance on Management Commentary
  • IASB Issues Exposure Draft and FASB Initiates Deliberations on New Classification and Measurement Requirements for Financial Assets and Financial Liabilities
  • IASB Proposes Guidance on Rate-Regulated Activities
  • IASB Amends the Retrospective Application of IFRSs for First-Time Adopters
  • Tips on Applying IFRS
  • IFRS Tools

US GAAP Matters

  • FASB Issues Exposure Draft on Allowance for Loan Losses Disclosures
  • Updated Roadmap Released on Accounting for Business Combinations
  • Statement 167 Adoption Issues — Insights for the Asset Management Industry
  • EITF Approves Guidance on Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance
  • EITF Issues Draft Abstracts on Revenue Arrangements With Multiple Deliverables and Software Revenue Recognition
  • Topic D-110 Announced
  • SEC's Division of Corporation Finance Updates the Financial Reporting Manual
  • New Roadmap Released on SEC Reporting for Business Combinations and Related Topics
  • FASB Continues Deliberations on Financial Instruments and Decides on Presentation
  • Highlights of SEC Regulations Committee's April 2009 Meeting Released
  • Highlights of SEC Regulations Committee's June 2009 Meeting Released

Other Matters

  • PCAOB Adopts New Standard on Engagement Quality Review
  • SEC Proposes Rule on Municipal Securities Disclosure
  • SEC Issues Final Rule Adopting Updated EDGAR Filer Manual
  • SEC Proposes Say-on-Pay and Proxy Disclosure Rules and Approves Discretionary Broker Voting Rule
  • AICPA Issues Exposure Draft on Quality-Control Standards
  • Financial Crisis Advisory Group Issues Report
  • SEC Investor Advisory Committee Sets Agenda
  • FASB Responds to CIFiR Recommendations
  • SEC's Division of Corporation Finance Issues Compliance and Disclosure Interpretations

Click to view US Reporting Newsletter for Non-US Based Companies June-August 2009 Edition (PDF 182k).

Important change for US revenue recognition

02 Oct 2009

Deloitte (United States) has published an issue of the Heads Up newsletter discussing the EITF's recently finalised Issue 08-1, Revenue Arrangements With Multiple Deliverables, which will significantly change the accounting for revenue recognition for arrangements with multiple deliverables.

Entities will be able to separately account for individual deliverables for many more revenue arrangements. By removing the criterion that entities must use objective and reliable evidence of fair value in separately accounting for deliverables, the EITF expects the recognition of revenue to more closely align with the economics of certain revenue arrangements. Click to Download this Issue of Heads Up (PDF 158k).

Issue 08-1 will replace all references to 'fair value' in ASC 605-25 (FASB Codification section relating to multiple deliverables) with references to 'selling price' to clarify that the selling-price measure in Issue 08-1 is not a market-participant measure as required by ASC 820 (previously known as Statement 157). The selling price of an item is an entity-specific measure that represents the amount an entity would sell that item for in a stand-alone transaction with a customer.

Issue 08-1 must be applied prospectively to revenue arrangements entered into or materially modified in fiscal years beginning on or after 15 June 2010, but the vendor may elect to adopt it retrospectively. IFRSs do not include the type of guidance on multiple deliverables as is in Issue 08-1, but IASB and FASB currently are working on a joint project on Revenue Recognition. A Discussion Paper was issued in December 2008.

 

Deadline reminder – IFRIC D25

02 Oct 2009

We remind you that comments are due on 5 October 2009 on IFRIC Draft Interpretation D25: Extinguishing Financial Liabilities with Equity Instruments.

The Draft Interpretation was issued on 6 August 2009. It addresses the appropriate accounting under IFRSs when a creditor agrees to accept an entity's shares or other equity instruments to settle the financial liability fully or partially. IFRIC D25 proposes that:
  • an entity's equity instruments are part of any 'consideration paid' to extinguish a financial liability.
  • the equity instruments should be measured at either their fair value or the fair value of the financial liability extinguished, whichever is more reliably determinable.
  • any difference between the carrying amount of the financial liability extinguished and the initial measurement amount of those equity instruments should be included in the entity's profit or loss for the period.

 

Additional IASB Board meeting 6 October

02 Oct 2009

The IASB has announced that the Board will hold an additional meeting on Tuesday 6 October 2009 to discuss its project to replace IAS 39.

The meeting will be held in two sessions:
  • A morning session from 11:00 to 13:00h London time
  • An afternoon session from 17:00 to 19:30h London time

The meeting is not open to public observation, but it will be webcast.

The agenda:

 

NIIF para PYMES impreso en español se publica

02 Oct 2009

The printed version of the Spanish translation of the IFRS for SMEs is now available.

Norma Internacional de Información Financiera para Pequeñas y Medianas Entidades (NIIF para las PYMES) 2009 may be ordered for £20 plus shipping, with substantial discounts for students, full time academics, and academic institutions; purchasers in middle income and low income countries; and multiple copies. Click for Information and Ordering Details on IASB's website.

 

PCAOB defers audit firm reporting

01 Oct 2009

The US Public Company Accounting Oversight Board has deferred the effective date of new rules and forms that require reporting by registered public accounting firms.

The rules and forms were approved by the US Securities and Exchange Commission on 13 August 2009 and were previously scheduled to take effect on 12 October 2009 – see IAS Plus News Story of 15 August 2009. The PCAOB is postponing the effective date to 31 December 2009 to resolve technical issues related to deploying the PCAOB's new Web-based system for processing and publishing filings on the new forms. The postponement will not affect the timing of the first annual reports required from registered firms, which will still be due on 30 June 2010 for the 12-month period ending 31 March 2010.

 

We comment on pensions discount rate ED

01 Oct 2009

Deloitte Touche Tohmatsu has submitted comments on IASB Exposure Draft (ED) 2009/10 Discount Rate for Employee Benefits, which was published 21 August 2009. IAS 19 Employee Benefits requires an entity to determine the rate used to discount employee benefits with reference to market yields on high quality corporate bonds.

However, when there is no deep market in corporate bonds, an entity is required to use market yields on government bonds instead. The global financial crisis has led to a widening of the spread between yields on corporate bonds and yields on government bonds. As a result, entities with similar employee benefit obligations may report them at very different amounts. The ED proposes to eliminate the requirement to use yields on government bonds. Instead, entities would estimate the yield on high quality corporate bonds. In view of the urgency of the issue and the limited scope of the proposals the IASB set a shortened period for comments on the ED. The IASB intends to permit entities to adopt the amendments that arise from this ED in their December 2009 financial statements. 

An excerpt from our letter of comment on the ED:

We believe it is appropriate for the Board to proceed with the proposed amendment relating to the determination of the discount rate for employee benefit obligations, while keeping, for the time being, the general principle of determining this discount rate by reference to market yields on high quality corporate bonds. The urgency to act on the matter is justified by the significant increase of the spread between the yield on high quality corporate bonds and on government bonds as a result of the financial crisis. However, as explained in our detailed comments, we believe further clarifications are required to ensure that the amendment is applied consistently by entities. In particular, we believe that the Board should clearly establish the objective of estimating the discount rate in the absence of a deep market for high quality corporate bonds.

Click to download our letter on the ED Discount Rate for Employee Benefits (PDF 38k). All past letters comment are Here.

 

Deloitte Canada Countdown IFRS transition newsletters

01 Oct 2009

Deloitte Canada has published the September 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 Transition – Where are we now?
  • 'The Real Deal' – real issues and solutions on IFRS transition relating to First Interim Financial Statements
  • SEC to refocus on IFRS roadmap
  • Deloitte IFRS Publications and Events and How to Access Them
  • An Update on Current IFRS News – including various important EDs or Discussion Papers
Click below for: You will find more information about financial reporting in Canada on our Canada Page.

 

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