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2009

FCAG will meet on 15 December

08 Dec 2009

The Financial Crisis Advisory Group (FCAG) will meet on 15 December 2009 10:00am to 14:15pm GMT at the Crowne Plaza–The City Hotel in London to discuss the IASB's and FASB's actions in response to the FCAG's July 2009 report, as well as other developments in the standard-setting and regulatory environments.

The meeting is open to public observation and will be webcast (click for Meeting Information on IASB's website). The IASB and FASB jointly formed the FCAG to consider financial reporting issues arising from the global financial crisis. Following six meetings that took place from January to July 2009 (you will find the IAS Plus notes from these meetings Here), FCAG issued its Final Report (PDF 377k) on 28 July 2009. The group comprises recognised leaders from the fields of business and government with a broad range of experience in international financial markets.

AICPA's SEC/PCAOB conference

08 Dec 2009

The American Institute of CPAs is holding its 37th Annual National Conference on Current SEC and PCAOB Developments in Washington on 7-9 December 2009, simulcast in four other cities.

Securities and Exchange Commission Chief Accountant James L Kroeker spoke on 7 December 2009. His remarks covered the following broad topics:
  • Accounting standards convergence
  • Principles for addressing changes to accounting standards
  • Recent developments in accounting standards
  • PCAOB oversight
  • Municipal securities and the GASB.

Regarding the SEC's Proposed Roadmap for the potential use of IFRSs by domestic US registrants (issued for comment November 2008), Mr Kroeker said that the Commission continues to study the issues raised in letters comment. He did not indicate a timetable for completion of that review. Click here for Mr Kroeker's Remarks (PDF 48k). Excerpts relating to the SEC's roadmap are below.

 

Just over a year ago, in a proposed 'roadmap', the Commission sought public comment on a proposed approach with respect to a possible path to greater use of IFRS in the US and suggested a number of milestones that the Commission might consider as important in making that evaluation. That public comment period ended in April of this year, and the staff has spent considerable time over these last few months focusing our attention on the very insightful input we received through that comment process, as well as evaluating potential courses of action....

While there are a number of operational, structural and transitional challenges that must be addressed, I believe the fundamental focus of our evaluation of implementing a set of high quality international standards must be on the impact to investors. I believe that implementing a single set of global accounting standards for US issuers can, and must, be done only in a manner that is beneficial to US capital markets and consistent with the SEC's mission of protecting investors. As we continue to evaluate such a monumentally important initiative, I believe we must carefully consider and fully understand and address issues, such as:

  • US Investor understanding of and perspectives on IFRS;
  • The development and application of IFRS for use as the single set of globally accepted accounting standards for US issuers;
  • The impact on the US regulatory environment;
  • Preparer considerations, including, among other matters, changes to accounting systems, changes to contractual agreements, corporate governance considerations, and litigation contingencies;
  • Human capital readiness; and
  • The role of the FASB in achieving the goal of a single global standard.

 

 

EU and other IFRS 'enforcers' meet in Paris

08 Dec 2009

At a conference organised by the Committee of European Securities Regulators (CESR), securities market regulators from 33 countries, representatives from the International Accountings Standards Board, and auditors met at CESR's offices in Paris on 3 and 4 December 2009 to discuss enforcement of IFRSs.

Participants included staff from regulators in the EU and the European Economic Area (EEA), and representatives of IFRS enforcers from ten other countries: Brazil, China, Egypt, India, Japan, Mexico, South Africa, Turkey, Switzerland, and the USA. Participants shared experiences on how enforcement systems have been set up in different jurisdictions with the objective of enhancing the consistent application of IFRSs around the globe for the protection of investors. Click for CESR Press Release (PDF 175k).

 

Deloitte resources for 2009 year-ends

07 Dec 2009

The 2009 versions of three mainstay Deloitte IFRS publications have been released and are available for download on www.iasplus.com in both PDF and Microsoft Word formats.

  • Deloitte's IFRS Illustrative Financial Statements for 2009. The model financial statements are intended to illustrate the presentation and disclosure requirements of IFRSs.They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard.
  • Deloitte's IFRS Presentation and Disclosure Checklist for 2009. The checklist is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item.
  • Deloitte's IFRS Compliance Questionnaire for 2009. This questionnaire summarises recognition and measurement requirements in IFRSs issued on or before 30 June 2009 and may be used 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.
  • Newsletter on IFRIC 19 on debt-equity swaps

    06 Dec 2009

    Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IFRIC Clarifies Accounting for Debt for Equity Swaps.

    On 26 November 2009, the International Financial Reporting Interpretations Committee issued IFRIC Interpretation 19 Extinguishing Liabilities with Equity Instruments following its approval by the IASB. IFRIC 19 applies when a debtor extinguishes a liability fully or partly by issuing equity instruments to the creditor. It is effective for annual periods beginning on or after 1 July 2010. This IAS Plus Update newsletter explains IFRIC 19 and provides three computational examples. Past issues of all of our IFRS newsletters are Here.

     

    Lessons from the initial XBRL submissions

    06 Dec 2009

    Deloitte United States has published a Heads Up Newsletter titled Lessons Learned From Reviewing the Initial Submissions of Interactive Data (XBRL) Files.

    The US SEC rules requiring submission of XBRL files became effective for the first quarterly filing for a period ended on or after 15 June 2009 for domestic and foreign registrants using US GAAP that have a worldwide public float of more than $5 billion. Since then, over 1,000 XBRL exhibits have been submitted to the SEC in the first phase-in group under the SEC rules. This Heads Up newsletter, which is based on analyses of the submissions both by Deloitte and by the SEC staff, identifies lessons learned from the initial XBRL submissions and makes recommendations that are intended to help registrants avoid problems with their interactive data file submissions. Here is a summary of the recommendations – the newsletter has detailed guidance on each one:

    Mapping, Element Selection, and Extension Elements

    • Avoid creating unnecessary extension elements.
    • Use appropriate context references instead of creating extension elements.
    • Provide a definition for all extension elements and debit/credit balance attribute information for monetary extension elements where required.
    • Be consistent in the use of extension elements.
    • Avoid selecting elements that are overly broad or overly narrow.
    • Do not select deprecated elements when mapping.
    • Be diligent about documenting selected elements and the reasons for their selection.

    Tagging

    • Ensure all amounts are entered correctly (ie, as a positive or negative balance) and that decimal attributes are correctly set.
    • Be aware that converting information in financial statement tables to an XBRL format introduces complexity and may require additional time and resources.
    • Be sure to tag parenthetical amounts shown on the face of the financial statements.

    Other Recommendations

    • Obtain sufficient knowledge about EDGAR Filer Manual requirements.
    • Establish a sustainable and repeatable process for creating interactive data files concurrently with preparation of the traditional financial statements.
    • Do not overemphasize trying to conform the rendering of the interactive data exhibit to the presentation of the traditional financial statements.
    • Perform an EDGAR test filing before transmitting the live submission.
    • Be sure to post a complete interactive data file on the corporate Web site in the required time frame.
    • Use the 'Amendment Flag' element correctly.

    Click for  Heads Up Newsletter: Lessons Learned From Reviewing the Initial Submissions of Interactive Data (XBRL) Files (PDF 125k)

    Newsletter on amendment to IFRIC 14

    05 Dec 2009

    Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IASB Amends IFRIC 14.

    On 26 November 2009, the IASB amended IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction to remedy an unintended consequence of IFRIC 14 where entities were in some circumstances not permitted to recognise as an asset voluntary prepayments of minimum funding contributions. The newsletter explains the amendment and provides a numerical example. Past issues of all of our IFRS newsletters are Here.

     

    Agenda for December 2009 IASB meeting

    05 Dec 2009

    The IASB will hold its December 2009 regular monthly meeting at its offices in London on Tuesday to Friday 15-18 December2009. The meeting will be open to public observation and will be webcast.

    Presented below is the agenda for the meeting.

     

    IASB Board Meeting Agenda -- 15-18 December 2009, London

    Tuesday 15 December 2009 (11:00-16:30 GMT)

    Wednesday 16 December – Joint Meeting with FASB (08:00-18:30 GMT)

    Thursday 17 December 2009 – Joint Meeting with FASB (08:00-13:45 GMT)

    Friday 18 December 2009 (09:00-13:30 GMT)

    Eight IFRSs await EU endorsement

    04 Dec 2009

    The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement of IFRSs under the EU Accounting Regulation.

    Click to download the Endorsement Status Report as of 2 December 2009 (PDF 120k). The latest update reflects the Endorsement on 1 December 2009 of the following by the European Commission:
    • IFRIC 18 Transfers of Assets from Customers
    • IFRS 7 Amendment – Improving Disclosures About Financial Instruments
    • IFRIC 9 and IAS 39 Amendment – Embedded Derivatives
    The following eight IASB pronouncements await European Commission endorsement for use in Europe:

    Standards

    • IFRS 9 Financial Instruments
    Interpretations Amendments
    You can always find the endorsement status report Here.

     

    EU will create 3 financial supervisory authorities

    04 Dec 2009

    The Council of Finance and Economics Ministers of the European Union, meeting in Brussels on 2 December 2009, agreed on a general approach on draft regulations that would create three new authorities for the supervision of financial services in the EU, namely:

    The draft regulations are part of a package of proposals to reform the EU framework for the supervision of banking, insurance, and securities markets in the wake of the global financial crisis. The framework envisions the three new European supervisory authorities working in tandem with a network of member state supervisors. The regulations will require approval of the European Parliament. The Council hopes to have the regulations approved some time during 2010. Click for Press Release (PDF 277k). See also our February 2009 Story EC plans to strengthen supervisors and standard-setters .

     

    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.