August

IASB (International Accounting Standards Board) (blue) Image

New issue of the IASB's Investor Perspectives

24 Aug 2010

In April 2010, the Trustees of the IFRS Foundation and the IASB launched a programme to enhance investors' participation in the development of International Financial Reporting Standards (IFRSs). One of the enhancements is a newsletter for investors. Board members Stephen Cooper, Patrick Finnegan and Patricia McConnell publish timely updates on financial reporting matters.

A new issue of the Investor Perspectives is now available:

All Investor Perspectives are archived on the IASB's website.

Click for previous news article, July 13, 2010.

2010aug.gif Image

Notes from special August IASB meeting

24 Aug 2010

The IASB met in London on 24 August 2010 for a second special meeting for the month.

The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting. The next IASB meeting is currently scheduled for 13-17 September 2010.

Spanish Publications Image

Two publications available in Spanish

23 Aug 2010

We have posted the following Spanish language publications from Deloitte (Colombia).

Russia Image

New law promotes adoption of IFRS in Russia

23 Aug 2010

The State Duma of the Russian Federation has passed a Law On Consolidated Financial Statements which had remained untouched since almost the end of 2004. On 17 December 2004 the State Duma actually approved the law in the second reading but no attempts to hold the third and final reading of the law were made. The final reading of the draft law finally took place on 7 July 2010, and Russia's President Dmitry Medvedev recently signed it into law.

The law applies to banks, insurance companies, and all companies that have securities accepted to trades at domestic exchanges. It requires these entities to produce, submit to regulators and publish financial statements in accordance with the International Financial Reporting Standards (IFRS). The Law states that IFRS statements are to be produced in addition to statements under the Russian Accounting Standards (RAS) and not in their stead.

Requirements formulated in the new Law will come into effect following a formal recognition from the Government and Central bank. The Law does not present a mechanism or a timeline for such recognition, but it is expected to take place some time between 2012 and 2015.

More information about the financial reporting framework in Russia is available on our IAS Plus country page for Russia.

IFRS IC (IFRS Interpretations Committee) (blue) Image

Agenda for 2-3 September 2010 Interpretations Committee meeting

22 Aug 2010

The IFRS Interpretations Committee will meet at the IASB's offices in London on Thursday and Friday 2 and 3 September 2010 (morning only on 3 September). The meeting is open to the public and will be webcast.

The tentative agenda is available on our meeting page for the meeting.

IASB (International Accounting Standards Board) (blue) Image

IASB staff draft of IFRS on Fair Value Measurement

20 Aug 2010

The IASB has posted to its website a staff draft of a forthcoming IFRS on fair value measurement, reflecting the tentative decisions made to date by the IASB and the FASB.

The IASB's initial exposure draft on fair value measurement was issued in May 2009 and has been followed up a number of requests for information and feedback, including an additional limited scope exposure draft issued in June 2010.

The IASB is not requesting comments on the staff draft, but notes the FASB issued a nearly identical proposed Accounting Standards Update (ASU) Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. Accordingly, constituents may wish to comment on the proposals by submitting a comment letter to the FASB prior to the end of the comment period for the proposed ASU (7 September 2010).

The IASB and FASB expect to jointly consider comments received in developing a joint standard, which is expected to be issued early in 2011. Click for:

FASB (old) Image

FASB posts staff draft of ASU on insurance contract costs

20 Aug 2010

The FASB has posted a staff draft of the Final Accounting Standards Update (ASU) Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the FASB Emerging Issues Task Force).

The draft ASU results from the July EITF meeting, where the EITF reached a final consensus on which costs incurred during the acquisition of new or renewal insurance contracts are eligible to be deferred and subsequently amortised ('deferred acquisition costs' (DAC)). In relation to a comparison with IFRS, the draft ASU notes:

The guidance on deferred acquisition costs under IFRS is limited and is subject to significant judgment. IFRS neither prohibits nor requires the deferral of acquisition costs, nor does it prescribe which acquisition costs are deferrable, the period and method of their amortization, or whether an insurer should present deferred acquisition costs as an asset or as a reduction in insurance liabilities.

Click for:

 

FASB (old) Image
Webcast (mid blue) Image

FASB webcast on revenue recognition project

20 Aug 2010

On Thursday 26 August 2010, the FASB will hold a webcast to discuss the potential effects of the Exposure Draft Revenue from Contracts with Customers on current practices relating to accounting for real estate transactions.

The Exposure Draft is open for public comment until 22 October 2010. The live webcast is offered free of charge. Viewers will have the opportunity to email questions to panelists during the event.
  • Topic: Revenue Recognition Project: Potential Effects on the Real Estate Contracts
  • Date and time: 26 August 2010, 2:00pm Eastern Daylight Time
  • More information about the revenue project on IAS Plus: Click Here

 

Webcast (mid blue) Image

Upcoming Deloitte webcast on lease accounting exposure draft

20 Aug 2010

On Friday 10 September 2010, Deloitte (United States) will present a live webcast on the exposure draft Leases.

The webcast will discuss:

  • Key provisions and concepts for lessor and lessee accounting
  • Potential implications for organisations' operations and accounting systems
  • Timelines for the comment letter process, roundtable discussions, final draft, and adoption.

There is no charge to attend the web presentation, but you need to register to participate. Details:

  • Topic: FASB's Exposure Draft on Lease Accounting: A Closer Look at the Proposed Guidance
  • Date and time: 10 September, 2:00pm EDT (US)
  • More information about the leases project on IAS Plus: Click Here
New Zealand Image

Update on New Zealand deferred tax issue

19 Aug 2010

We posted an earlier story regarding issues arising in New Zealand related to deferred tax accounting for certain buildings for which tax depreciation had been removed by a tax law change. The effect of the tax law change is resulting in many New Zealand companies recognising a deferred tax liability in respect of existing buildings, significantly impacting profits. These issues are related to the IASB's current consideration of an exemption to the principles of IAS 12 Income Taxes for certain revalued assets.

The New Zealand Financial Reporting Standards Board (FRSB) recently held a meeting where the issue was further discussed. The FRSB considered, but ultimately rejected, a proposal to modify the New Zealand equivalent of IAS 12 to permit an exemption from the recognition of deferred taxes on affected buildings. This decision was communicated to the New Zealand Accounting Standards Review Board (ASRB) and an updated Communiqué was issued on 18 August 2010 confirming that deferred tax should be recognised in many instances.

In respect of a possible departure from IFRSs, the Communiqué states:

...this would mean that NZ IFRS is no longer aligned with IFRS, and so the financial statements for profit-oriented entities would not comply with both local and international accounting standards - thereby undermining the fundamental objective of New Zealand's adoption of IFRS.

Therefore, while the Boards acknowledge the serious concerns that have been raised about the accounting impact of the recent tax changes for entities to comply with NZ IAS 12, the suggestion to make changes to (or provide exemptions from) the standard is not a viable solution, both because of time constraints and the wider implications for the New Zealand financial reporting framework.

Click for:

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.