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January

Joint Forum review of financial regulation

14 Jan 2010

The Joint Forum of financial supervisors has published Review of the Differentiated Nature and Scope of Financial Regulation: Key Issues and Recommendations.

This report analyses key issues arising from the differentiated nature of financial regulation in the international banking, insurance, and securities sectors. It also addresses gaps arising from the scope of financial regulation as it relates to different financial activities, with a particular focus on certain unregulated or lightly regulated entities or activities. The Joint Forum prepared this report at the request of the G-20 to help identify potential areas where systemic risks may not be fully captured in the current regulatory framework and to make recommendations on needed improvements to strengthen regulation of the financial system.
Annex 2 of the report (Fundamental Analysis of the Objectives of Financial Regulation) states: The objective of customer or stakeholder protection is not equivalent to the objective to reduce systemic risks. On the one hand, protecting customers may help to reduce systemic risk by for instance preserving market liquidity, while on the other this might increase systemic risks by undermining market discipline. To have financial supervisors put more emphasis on the objective of systemic risk reduction, the G-20 recommends in its 2009 report on Sound Regulation and Strengthening Transparency that 'as a supplement to their core mandate, the mandates of all national financial regulators, central banks, and oversight authorities, and of all international financial bodies and standard setters (IASB, BCBS, IAIS and IOSCO) should take account of financial system stability'.

The Joint Forum is a consortium of the Basel Committee on Banking Supervision, the International Organization of Securities Commissions, and the International Association of Insurance Supervisors that addresses issues common to the banking, securities, and insurance sectors, including the supervision of financial conglomerates. Click to Download the Joint Forum Report and Recommendations (PDF 986k).

Common financial reporting issues facing smaller companies

14 Jan 2010

During 2009 the US Public Company Accounting Oversight Board hosted a series of Forums on Auditing in the Small Business Environment.

Participants were auditors from smaller registered public accounting firms. At those Forums, the staff of the Division of Corporation Finance of the Securities and Exchange Commission reviewed common financial reporting issues facing smaller issuers that they have identified during their staff reviews of filings for smaller public companies. Click to download the SEC Staff Slide Presentation (PDF 267k) summarising some of the issues they have noted. Other SEC information for small businesses may be found here on the SEC's Website.

 

Two Bound Volumes of IFRSs for 2010

13 Jan 2010

The IASB plans to publish two types of Bound Volume (BV) of IFRSs for 2010: One will be the traditional BV including all pronouncements issued at the publication date, including those that do not become mandatory until after 2010 (will have a red cover and nicknamed the "Red Book"). The other will be a BV of only those pronouncements whose application is mandatory as of 1 January 2010 (will have a blue cover and nicknamed the "Blue Book")

To give an example, in November 2009 the IASB issued IFRS 9 Financial Instruments with an effective date of 1 January 2013. This new IFRS, together with its copious amendments to other IFRSs, will be consolidated in the 2010 Bound Volume (the Red Book), as it was issued before 1 January 2010. It will not be included in the new Blue Book, as its effective date means that it is not required for annual reporting periods beginning on 1 January 2010.

The IASB expects to release the Blue Book – titled Consolidated Without Early Application – around 20 January 2010. They expect to have a facility for placing orders for this volume shortly on IASB's Website.

 

Hearing on nomination of Michel Barnier

13 Jan 2010

Two committees of the European Parliament will hold joint hearings on the nomination of Michel Barnier as Commissioner for Internal Market and Services of the European Commission.

Mr Barnier has prepared written responses (PDF 156k) to questions posted in advance by the committees. His comments on accounting include:
In the area of financial information, one of my priorities will be the adoption by all of our partners, including the United States, of high-quality global accounting standards, in line with the recommendations of the G20. I would also like to improve the governance of the IASB significantly. As regards SMEs, I would like to put forward an ambitious proposal for the modernisation of accounting regulations. Lastly, with regard to the statutory audit of accounts, my priorities will be to enhance international cooperation in order to enable mutual recognition of supervisory systems in respect of [auditors], and potential adoption of the international [auditing] standards (ISA).

The EU has set up a special Website for Commissioner Confirmation Hearings. Click for Mr. Barnier's CV (PDF 76k).

FEE paper on bank provisioning and reserving

13 Jan 2010

The European Federation of Accountants (FEE) has published a paper Bank Provisioning and Reserving: A Comparison of Alternatives.

The paper is intended to help clarify the meaning of particular terms used by policy-makers, banks, regulators, accountants, and others in respect of bank provisioning and reserving, "since there is not yet a common understanding of what these terms are meant to cover". The paper is also intended to assist the readers of the recently issued joint EFRAG/FEE paper Impairment of Financial Assets: The Expected Loss Model (see IAS Plus News Story of 10 Dec 2009) by providing background information and an outline of the key terms of the various approaches and models that are currently being debated. FEE's announcement also notes that the paper "may also help to better understand the current discussions on impairment in relation to the proposals of the International Accounting Standards Board (IASB) for the impairment of financial assets". Click for:

 

Top 2009 financial reporting developments - USA

12 Jan 2010

Deloitte (United States) has a number of publications that review the top financial reporting developments of 2009. These cover accounting standards, financial reporting, regulatory updates and technical trends.

Financial Stability Board welcomes IASB progress

10 Jan 2010

The Financial Stability Board (FSB) met in Basel on 9 January 2010 to take forward its regulatory policy reform agenda and reaffirm the timelines for policy development and implementation in 2010. The meeting also agreed on a framework for strengthening adherence to international standards, and reviewed current conditions and adjustment in the financial system.

Regarding IFRSs, the Report of the Meeting (PDF 42k) states:

Strengthening accounting standards. As requested by the G20 Leaders, the FSB continues to monitor progress in implementing G20 and FSB recommendations for improved, converged accounting standards. FSB members welcomed the IASB's plan to continue its enhanced technical dialogue with prudential authorities and market regulators on financial institution reporting issues, and to conclude its full review of the financial instruments standard by the end of this year.

Deloitte IFRS newsletters in Spanish

09 Jan 2010

Deloitte (Colombia) has published the Spanish translation of the three IAS Plus Update publications.

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

Nuestra página de recursos en español: Clic.

 

Notes from the January 2010 IFRIC meeting

09 Jan 2010

The International Financial Reporting Interpretations Committee (IFRIC) met at the IASB's offices in London on Thursday and Friday 7 and 8 January 2010. We have posted preliminary and unofficial notes taken by Deloitte observers at the meeting.

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

 

THURSDAY 7 JANUARY 2010 (10:00-18:15)

Introduction

Active Committee projects

Review of tentative agenda decisions published in November 2009 IFRIC Update

Annual improvements – Deliberation of comments received

 

FRIDAY 8 JANUARY 2010 (09:00-12:30)

Staff recommendations for tentative agenda decisions

Administrative session

 

Click to go to the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

Deloitte IFRS newsletter in Spanish

08 Jan 2010

Deloitte (Colombia) has published the Spanish translation of the following IFRS publication: Boletín de Actualización IAS Plus – IFRS 9 Instrumentos financieros; Spanish version of: IAS Plus Update October 2009 – IFRS 9 Financial Instruments

You will find our resources in Spanish Here.

 

Correction list for hyphenation

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