February

Irish CAs support IFRS for SMEs in place of FRSs

17 Feb 2010

Chartered Accountants Ireland has announced its support for changes in accounting standards proposed by the Accounting Standards Board (ASB) that would see Irish and UK GAAP replaced by a three-tiered approach, whereby companies would apply one of the following:

  • EU-endorsed IFRSs - for 'publicly accountable' entities
  • IFRS for SMEs - for non-publicly accountable entities
  • Financial Reporting Standard for Smaller Entities (FRSSE) – optional for 'small' entities as defined in the Companies Acts

The proposal is contained in a Consultation Document issued by the ASB in August 2009. In announcing support for the IFRS for SMEs, Aidan Lambe, Chartered Accountants Ireland Director of Technical Policy, said: "The position whereby we have had differing accounting frameworks in use in Ireland since the adoption of IFRS was ultimately unsustainable in the long run. By producing this standard, the IASB has greatly facilitated the ASB in attempting to resolve this issue." Click for CAI Press Release (PDF 95k).

Notes from February 2010 IASB meeting day 1

16 Feb 2010

The IASB is holding its February 2010 monthly Board meeting at its offices in London on Monday to Friday, 15-19 February 2010.

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

IASCF Trustees complete Constitution Review Part 2

15 Feb 2010

The Trustees of the IASC Foundation, the oversight body of the IASB, have completed part two of the 2008-2010 Constitution Review – announcing a number of changes aimed at enhancing public accountability, stakeholder engagement, and operational effectiveness.

The changes include:

  • Introduction of three-yearly public consultations on the IASB's technical agenda: In addition to consulting the Trustees and its advisory council annually on the existing and future agenda, the IASB will undertake a three-yearly public consultation on its future technical agenda.
  • Emphasis on adoption of IFRSs: The Constitution will emphasise that convergence is a strategy aimed at promoting and facilitating the adoption of IFRSs, but is not an objective by itself.
  • A commitment to a 'principle-based' approach: The Constitution will call for IFRSs 'based upon clearly articulated principles'.
  • Specific designation of investors: The new Constitution specifically identifies investors as a target audience for financial information (in addition to other participants in the world's capital markets and other users of financial information).
  • A requirement for due process and the introduction of an emergency procedure: The Constitution will include a provision for an accelerated due process only in the most exceptional circumstances and only after approval by at least 75 per cent of the Trustees.
  • Creation of vice chairs for both the Trustees and the IASB: The new Constitution will establish the possibility of two vice chairs for both the Trustees and the IASB. This will both ease the burden on the chair, and give the option of wider geographical distribution in the leadership.
  • Improved language to account for a broad range of stakeholders, both by type and location: The Constitution will note the need to 'take account of, as appropriate, the needs of a range of sizes and types of entities in diverse economic settings'.
  • Reduction in duration of possible second term of IASB members to ensure practical experience: While the Constitution will still permit the possibility of a second term for IASB members, the Trustees have reduced the second term from five years to three for IASB members not serving as the chair or a vice chair.
  • Names in use across the organisation to be streamlined: The names in use across the organisation will be more closely aligned with the standards. The IASC Foundation will become the IFRS Foundation, as soon as the practical arrangements can be made. The interpretations committee and advisory council will be known as the IFRS Interpretations Committee and IFRS Advisory Council, respectively. Stakeholders supported retaining the name of the IASB, and the Trustees concurred.

The changes take effect 1 March 2010. Click for IASCF Press Release (PDF 109k).

We disagree with three IFRIC draft agenda decisions

13 Feb 2010

In letters to the International Financial Reporting Interpretations Committee, Deloitte Touche Tohmatsu has disagreed with the IFRIC's tentative decisions, in January 2010, not to take onto the IFRIC's agenda three requests for an interpretation, as follows:

Japan moves toward full IFRS adoption

13 Feb 2010

In our News Story of 10 February we reported on a conference on international developments in accounting and auditing that was hosted by the European Commission in Brussels on 8 February 2010. One of the presenters at that conference was made by Mr Masamichi Kono, Deputy Director General of the Supervisory Bureau of the Financial Services Agency of Japan.

He explained the Japanese step-by-step roadmap toward the full adoption of IFRSs for listed companies by 2015 or 2016, including the voluntary early adoption that has already started from 1 April 2009. Click to Download Mr Kono's Presentation (PDF 145k).

 

Deloitte IFRS newsletter in Spanish

12 Feb 2010

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication:

You will find our resources in Spanish Here.

 

Hong Kong FRS presentation/disclosure checklist

12 Feb 2010

Deloitte's Asia-Pacific IFRS Centre of Excellence in Hong Kong has published the IAS 36 – Interaction with transition requirements of IFRS 8.

This checklist is intended to aid entities reporting under Hong Kong Financial Reporting Standards (HKFRSs) in determining whether or not they comply with the presentation and disclosure requirements of HKFRSs and the applicable Hong Kong Companies Ordinance. The checklist also includes disclosures required by The Stock Exchange of Hong Kong in relation to the preparation of an annual report by a listed entity. This checklist complements HKFRS Illustrative Annual Financial Statements for 2009 (PDF 1,214k) issued in January 2010. This checklist covers the presentation and disclosure requirements effective for the year ended 31 December 2009. It also covers the presentation and disclosure requirements of certain Standards and Interpretations in issue at 15 November 2009 that are not effective for periods beginning on 1 January 2009. Earlier application of those Standards and Interpretations that are not yet mandatorily effective is generally permitted. This checklist does not address the requirements of HKFRSs in relation to the recognition and measurement.
Click to view HKFRS Presentation and Disclosure Checklist for 2009 (PDF 2,393k).

 

Reducing Financial Reporting Risk

11 Feb 2010

Deloitte United States has published Reducing Financial Reporting Risk: It's More than Fixing Financial Controls.

This 'white paper' distills the evaluation of financial reporting risk into three major components:
  • People and organisational considerations
  • Process and policy considerations
  • Systems and information considerations
By posing probing questions to those with oversight of these areas, a CFO can develop a clearer view of the organization's current state of financial reporting risks and can champion improvements designed to reduce reporting risk as well as improve the effectiveness of the process. Click to download Reducing Financial Reporting Risk: It's More than Fixing Financial Controls (PDF 1,292k).

 

Notes from Special 10 Feb 2010 meeting

11 Feb 2010

The IASB and FASB held a special joint meeting on 10 February 2010 at the IASB's offices in London.

Click to view the preliminary and unofficial Notes Taken by Deloitte Observers at the Meeting.

 

IFRS insurance accounting newsletter

11 Feb 2010

Deloitte (United Kingdom) has published the February 2010 issue of Insurance Accounting Newsletter.

This issue is titled Road to Convergence and focuses on the discussions held in the three hour long joint IASB-FASB meeting of 19 January and the subsequent FASB meeting on 27 January. The long awaited exposure draft is finally taking shape and although a few issues remain unresolved, the road to convergence for insurance accounting is in sight. The expected publication date of the Exposure Draft is May 2010 with a comment period until September 2010. Click to download Issue 11 of the Insurance Accounting Newsletter (PDF 105k).

 

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