2009

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Global economic outlook – 1st quarter 2009

14 Jan 2009

Deloitte Research has put out its first quarter Global Economic Outlook, which notes that the world economy is experiencing a 'nearly synchronous' decline in growth, a rapid drop in commodity prices, and a serious downturn in trade due to continuing credit constraints.

But the most surprising event of the worldwide financial crisis may be the change in mindset about what the proper role of government is in the economy. Governments are navigating a new landscape, contemplating the unmentionable, and taking actions once thought inconceivable. There is almost too much to absorb. In this issue of the quarterly Global Economic Outlook (PDF 4,210k), Deloitte Research global economists attempt to make sense of what is going on, in addition to providing their usual outlook for the near term future. Here is what to expect in this report:
  • Analysis of some of the risks and opportunities stemming from the global crisis
  • Views on how the emerging markets are faring in this crisis
  • A look at how monetary policy is working, or not working, during the current crisis
  • Outlooks on nine major countries/regions beginning with the US economic downturn and the efficacy of the policy responses, both past and future. We also look at the economics of the Eurozone, the United Kingdom, Russia, India, China, Japan, Latin America, and the Middle East
The IAS Plus page on international financial reporting issues relating to the global financial crisis is Here.
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Comments invited on 2009 IFRS XBRL taxonomy

13 Jan 2009

The International Accounting Standards Committee Foundation has invited comments, by 12 March 2009, on the near final version of the IFRS XBRL Taxonomy 2009. The Taxonomy is a translation of International Financial Reporting Standards as issued at 31 December 2008 into XBRL (eXtensible Business Reporting Language).

The XBRL computer language has been developed specifically for automating the reporting of business information. XBRL allows companies, regulators, investors, analysts, and others using the IFRS Taxonomy 2009 to file, access, and compare IFRS financial data more easily. The near final version of the IFRS Taxonomy 2009 may be downloaded without charge from http://go.iasb.org/IFRS-Taxonomy-2009-review. The IASCF expects to release the final version in early April 2009, when it will also be freely available. Click for Press Release (PDF 44k).

 

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Reminder about upcoming comment deadline

13 Jan 2009

We remind you that comments are due on 15 January 2009 on an exposure draft on Investments in Debt Instruments, which was issued on 23 December 2008. The exposure draft proposes to amend IFRS 7 Financial Instruments: Disclosures to provide additional disclosures on all investments in debt instruments, other than those classified in the fair value through profit or loss category.

The proposals would require an entity to state in tabular form the fair value, amortised cost, and amount at which the investments are actually carried in the financial statements. The amendments would also require an entity to also disclose the effect on profit or loss if all debt instruments had been accounted for at fair value or at amortised cost.

 

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Agenda for 19-23 January 2009 IASB meeting

13 Jan 2009

The International Accounting Standards Board will hold its regular January 2009 meeting at the IASB's offices, 30 Cannon Street, London on Monday to Friday 19-23 January 2009. The meeting is open to public observation and is being webcast.

Presented below is the agenda for the meeting.

IASB Board Meeting Agenda - 19-23 January 2009, London

Monday 19 January 2009 (afternoon only)

Tuesday 20 January 2009

Wednesday 21 January 2009

Thursday 22 January 2009

Friday 23 January 2009 (morning only)

 

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Two Heads Up newsletters from Deloitte USA

10 Jan 2009

The National Office Accounting Standards and Communications Group of Deloitte (United States) has published two Heads Up newsletters that may be of interest to IAS Plus visitors:

  • FASB Expands Disclosures About Postretirement Benefit Plan Assets (PDF 124k) This newsletter discusses the recently issued FASB Staff Position No. FAS 132(R)-1, Employers' Disclosures About Postretirement Benefit Plan Assets, which amends FASB Statement No. 132(R), Employers' Disclosures About Pensions and Other Postretirement Benefits. The FSP requires more detailed disclosures about employers' plan assets, including employers' investment strategies, major categories of plan assets, concentrations of risk within plan assets, and valuation techniques used to measure the fair value of plan assets.
  • SEC Says Fair Value Is Fair: Study Finalized on Mark-to-Market Accounting (PDF 158k). This newsletter discusses the SEC's report and recommendations to Congress regarding mark-to-market (MtM) accounting. The report responds to the congressional mandate in Section 133 of the Emergency Economic Stabilization Act of 2008 that the SEC conduct a study on MtM accounting standards in consultation with the Federal Reserve Board and the secretary of the Treasury. See also the IAS Plus News Story of 5 Jan 2009.

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    AMF recommendations for 2008 financial statements

    09 Jan 2009

    The Autorité des Marchés Financiers (AMF), the French securities regulator, has posted the English text of its Recommendations Regarding Financial Statements for 2008.

    As an EU member state, France requires companies whose securities trade on a regulated market to use International Financial Reporting Standards in their consolidated financial statements. Click here for the Recommandations de l'AMF en vue de l'arrêté des comptes 2008 (French version, PDF 369k) and English Version (PDF 236k). The AMF recommendations for 2008 financial statements are presented in ten sections as follows:
    1. First-time application of IFRS 7 Financial Instruments: disclosures
    2. IAS 39 Financial instruments: recognition and measurement
    3. IAS 36 Impairment of assets
    4. IAS 19 Employee benefits
    5. IAS 1 Presentation of financial statements – classification of debts as current or non-current
    6. Business combinations and consolidation
    7. IFRS 5 Non-current assets held for sale and discontinued operations
    8. IFRS 8 Operating segments
    9. New standards and interpretations
      • Application of standards and interpretations in the European Union
      • Annual amendments
      • IFRIC 11 IFRS 2 – Group and treasury share transactions
      • IFRIC 12 Service concession arrangements
      • IFRIC 13 Customer loyalty programmes
      • IFRIC 14 The limit on a defined benefit asset, minimum funding requirements, and their interaction
      • IFRIC 15 Agreements for the construction of real estate
    10. European proposal concerning exemption from consolidation
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    Newsletter on embedded derivatives assessment

    09 Jan 2009

    Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Proposed Amendments Regarding the Assessment of Embedded Derivatives on Reclassification. The newsletter explains the IASB's proposals, published 22 December 2008, to clarify the requirements of IAS 39 Financial Instruments: Recognition and Measurement and IFRIC 9 Reassessment of Embedded Derivatives.

    The proposals, if finalised, would make clear that reclassifications of financial assets under the October 2008 amendments to IAS 39 trigger a (re)assessment for embedded derivatives.

    The turnaround time for the exposure draft is very short. Comments are required by 21 January and, if finalised, the amendments would be effective for years ending on or after 15 December 2008. Therefore, you will need to monitor the progress of the project so that the final requirements are incorporated in financial statements for December 2008 and subsequent accounting periods.
    Click for IAS Plus Update Newsletter (PDF 115k)
    Here are Links to Past IAS Plus Newsletters.
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    Newsletter on proposed debt investment disclosures

    08 Jan 2009

    Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Additional Disclosures Proposed for Investments in Debt Instruments. The newsletter explains the IASB's proposals to amend IFRS 7 Financial Instruments: Disclosures to provide additional disclosures on all investments in debt instruments, other than those classified in the fair value through profit or loss category.

    The proposals would require an entity to state in tabular form the fair value, amortised cost, and amount at which the investments are actually carried in the financial statements. The amendments would also require an entity to also disclose the effect on profit or loss if all debt instruments had been accounted for at fair value or at amortised cost.

    The turnaround time for the exposure draft is very short. Comments are required by 15 January and, if finalised, the amendments would be effective for years ending on or after 15 December 2008. Therefore, you will need to monitor the progress of the project so that the final requirements are incorporated in financial statements for December 2008 and subsequent accounting periods.
    Click for IAS Plus Update Newsletter.
    Here are Links to Past IAS Plus Newsletters.

     

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    IASCF trustees will meet next week in New Delhi

    08 Jan 2009

    The Trustees of the IASC Foundation, under which the IASB operates, will meet at the Oberoi Hotel in New Delhi, India, on 15-16 January 2009. The portion of the meeting open to public observation begins at 11:00am on 15 January and continues for the rest of that day.

    The agenda for the public session is as follows:

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    New Delhi, India, 15 January 2009 (Public Session)

    • Constitution Review 2008 – next steps
    • Funding Status and Resource Requirements
    • IASCF's Publications Activities
    • Report of the IASB Chairman
    • Report of the Due Process Oversight Committee
    • XBRL Review

     

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    Most EU financial institutions have not reclassified assets

    08 Jan 2009

    A study by the Committee of European Securities Regulators (CESR) has found that many banks in the European Union have chosen, up to now, not to use the option that the IASB added to IAS 39 in October 2008 to permit reclassification of some financial instruments out of the fair-value-through-profit-or-loss and available-for-sale categories.

    CESR reviewed the application of the reclassification amendment by financial institutions within the EU in their third quarter interim financial statements and interim management statements. CESR's analysis covered all 22 financial institutions in the FTSE Eurotop 100 index and 78 other financial institutions. The 100 companies are based in 21 EU member states. CESR found:
    • More than half of the financial companies concerned did not reclassify any financial instruments in their 3rd quarter 2008 financial statements.
    • For the companies in the FTSE Eurotop 100 index almost two thirds of these companies did not reclassify any financial instruments in any of the categories.
    CESR's report also responds to a request from the European Commission for CESR's views on accounting issues in addition to reclassification:
    • Fair value option. CESR believes that 'there is a need to examine the effects of the use of the fair value option in more detail within a short timeframe', including whether reclassification should be permitted for financial assets measured using the fair value option.
    • Embedded derivatives. CESR welcomes the IASB's recent ED on amendments to IFRIC 9 and IAS 39 and encourages the IASB and the FASB to work together to assess whether further clarification is needed relating to embedded derivatives. 'Furthermore, CESR would recommend that the IASB provides guidance on the main types of synthetic structures covered and on which factors are important for issuers in determining whether an embedded derivative exists and if so, whether it should be measured separately. This clarification should also state that embedded financial guarantee-types do not need to be separated out.'
    • Impairment of available-for-sale items. CESR recommends the IASB examines the issues surrounding impairment for available for sale financial instruments.
    CESR's report also recommends that 'the IASB should develop due process procedures – including public consultation – that, in rare circumstances, would enable it to 'amend its standards in response to emergency circumstances'. Click to Download the CESR Report (PDF 97k).

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