November

EITF Snapshot for November 2010

22 Nov 2010

We have posted the November 2010 edition of EITF Snapshot summarising the 19 November 2010 meeting of FASB's Emerging Issues Task Force.

EITF Snapshot, published by Deloitte & Touche LLP (USA), enables readers to identify relevant topics and to understand quickly the meeting's outcome. Past issues can be downloaded Here.

This EITF Snapshot covers the following issue discussed by the EITF at the meeting:

  • Issue 09-H Health Care Entities: Revenue Recognition – Final consensus
  • Issue 10-A How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test – Final consensus
  • Issue 10-D Fees Paid to the Federal Government by Pharmaceutical Manufacturers – Final consensus on one issue; consensus-for-exposure on a second issue
  • Issue 10-E Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate – No consensus reached
  • Issue 10-F Accounting for Legal Costs Associated With Medical Malpractice and Similar Claims – No consensus reached
  • Issue 10-G Disclosure of Supplementary Pro Forma Information for Business Combinations – Final consensus

Initial EITF consensuses (known as 'consensuses-for-exposure') are exposed for a comment period after ratification by the FASB. At its first scheduled meeting after the comment period, the EITF considers comments received and, as warranted, affirms its consensuses-for-exposure as final consensuses. Those consensuses are then provided to the FASB for final ratification.

Click for EITF Snapshot — November 2010 (PDF 104k).

EC consultation on disclosure of non-financial information by companies

22 Nov 2010

The Services of the Internal Market and Services Directorate General of the European Commission are conducting a public consultation in order to gather stakeholders' views on ways to improve the disclosure by enterprises of non-financial information (e.g. social and environmental).

In recent years, there have been calls to improve the comparability, reliability, and relevance of information disclosed by enterprises. A better focus on sustainability issues by companies and investors could help European companies respond to, and derive business opportunities from, long-term global challenges, such as increased global competition, resource shortages, climate change, and the fight against poverty. Better disclosure of social and environmental information could enhance the accountability of enterprises, and so contribute to higher levels of trust in business on the part of citizens. On the other hand disclosure of more non-financial information may unduly increase the administrative burden of companies, adding to the length of annual reports which are already considered by many to be too long.

In this context, the EC is conducting the consultation that can be accessed here.

Webcast on Framework-based teaching of principle-based standards

19 Nov 2010

On Tuesday 7 December 2010 the IFRS Foundation will hold a webcast designed for those teaching IFRSs with focus on Framework-based teaching of principle-based accounting standards.

Topic: Framework-based teaching of principle-based standards
Date and time: Tuesday, 7 December 2010, 10:00 - 11:30 GMT and repeated 15:00 - 16:30 GMT
More information on the webcast and registration: Click here
More information on IAS Plus: Summary of the IFRS Framework

Notes from Day 3 of November IASB meeting

19 Nov 2010

The International Accounting Standards Board (IASB) is holding its regular November meeting in Norwalk, United States.

Day 3 of the meeting, held on 18 November 2010, was joint meeting with the United States Financial Accounting Standards Board (FASB). We have also posted the notes from the late session of Day 2 of the meeting where the conceptual framework was discussed.

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

  • Conceptual Framework — the Reporting Entity
    • Entity versus proprietary perspective
    • Requirement for combined financial statements
    • Revised project timeline
  • Emission Trading Schemes
    • Recognition of a liability for excess emissions in excess of initial allocation and measurement of liabilities in an emission trading scheme
    • Initial and subsequent measurement of purchased allowances (assets) (cap and trade scheme)
    • Balance sheet presentation of assets and liabilities in a cap and trade scheme
  • Fair Value Measurement
    • Premiums and discounts in a fair value measurement (including blockage factors)
    • Measurement uncertainty analysis disclosure
    • Portfolios of financial instruments
    • Measuring the fair value of own equity

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

Model financial statements for Australian 'Reduced Disclosure Requirements'

19 Nov 2010

Deloitte (Australia) has published Reduced Disclosure Requirements - Model Financial Statements.

In July 2010, the Australian Accounting Standards Board (AASB) released AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements to implement its revised differential reporting regime.

The AASB has decided not to implement the IFRS for SMEs in the Australian context at this time. Instead, eligible entities can elect to adopt the 'Reduced Disclosure Requirements' (RDR), which requires entities to follow the recognition and measurement requirements of all Australian Accounting Standards (which are equivalent to IFRSs), but with reduced disclosure requirements. This publication illustrates the disclosures required to comply with the RDR.

Click for:

 

FAF announces post-implementation review process

19 Nov 2010

The Board of Trustees of the Financial Accounting Foundation (FAF), the oversight body of the US Financial Accounting Standards Board (FASB), announced a new process for conducting post-implementation reviews of the financial accounting and reporting standards issued by the FASB.

The new FAF process is designed to be independent of the standard-setting process.

The FAF review staff will study significant accounting standards to assess whether the intended financial reporting objectives underlying those standards are being met. The review staff will report to the Trustees and FAF president. The review staff will test the initial review process by selecting one standard. The test is expected to be completed by midyear 2011. Click for FAF press release (link to FAF website).

According to the Due Process Handbook the IASB's post-implementation review process is currently as follows:

After an IFRS is issued, IASB members and staff hold regular meetings with interested parties, including other standard-setting bodies, to help understand unanticipated issues related to the practical implementation and potential impact of its provisions. The IFRS Foundation also fosters educational activities to ensure consistency in the application of IFRSs. After a suitable time (usually two years), the IASB may consider initiating studies in the light of:

  • its review of the IFRS's application,
  • changes in the financial reporting environment and regulatory requirements, and
  • comments by the IFRS Advisory Council, the IFRS Interpretations Committee, standard-setters and constituents about the quality of the IFRS.

Those studies may result in items being added to the IASB's agenda. Click for an overview of the IASB's standard setting process (link to IASB website).

Accountancy Age Award for Ken Wild

18 Nov 2010

Ken Wild has been awarded the 2010 Accountancy Age Award for Outstanding Industry Contribution.

Accountancy Age lauds him as "as one of London's finest technical minds" and praises his "dedication to core principles that has helped him build a reputation for integrity".

Ken Wild was a partner at Deloitte for 26 years until his retirement in 2010, for much of that time he led the UK firm's technical department and, more recently, the Global IFRS Leadership Team. Mr Wild was also a member of the ASB from 1994 to 2003 and IFRIC from 2003 to 2009. He also helped maintain IAS Plus and has written numerous articles and books on accounting. He is currently a Fellow, Judge Business School, Cambridge University, where he lectures on financial reporting in the School's masters' programmes.

IFRIC Review newsletter issued

18 Nov 2010

The November 2010 edition of IFRIC Review has been issued.

The IFRIC Review newsletter examines matters discussed at the IASB's IFRS Interpretations Committee (IFRIC). The November edition (PDF 77k) discusses the IFRIC meeting held on 4-5 November 2010.

 

Japanese translation of our IFRS in Focus newsletter on IFRS 9

18 Nov 2010

Deloitte's IFRS Centre of Excellence in Japan has published a Japanese translation of the following IFRS in Focus newsletter: IASB issues revisions to IFRS 9 for financial liability accounting.

Click for IASB issues revisions to IFRS 9 for financial liability accounting (Japanese translation, PDF 214k). Here is the English Version (PDF 82k).

The Japan Center of Excellence IFRS web pages are Here (in Japanese).

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.