The proposal would amend one aspect of IAS 12 Income Taxes. Under IAS 12, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects to recover an asset by using the asset or by selling the asset. In some cases, it is difficult and subjective to assess whether recovery will be through use or through sale. To provide a practical approach in such cases, the proposed amendment would introduce a presumption that an asset is recovered entirely through sale unless the entity has clear evidence that recovery will occur in another manner.

We appreciate the fact that the Board is trying to address the difficult practical issues that can arise when calculating and measuring deferred taxes associated with assets that are remeasured or revalued at fair value. However, we do not support the proposed exception to the principles in IAS 12 (see box below). Click to Download our Comment Letter (PDF 58k). All of our past comment letters are Here.

Although we agree that additional guidance would be useful in this area, we do not support the introduction of an exception to the existing principles of IAS 12. Instead, we recommend the Board provides additional implementation guidance to illustrate how the existing principles within IAS 12 should be applied. In developing this implementation guidance, the Board should consider an approach based on an entity's underlying business model, an approach that we believe to be consistent with the current requirements in IAS 12.52.

Specifically, the notice has been amended to include specific guidance to issuers regarding additional GAAP measures required by IFRS.

The topics discussed were as follows:

• Financial Instruments: Impairment

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

Translation is a necessary and vital part of achieving the IFRS Foundation's mission to develop a single set of high-quality global accounting standards for use around the world. It is in the interest of any country adopting or using IFRSs or the IFRS for SMEs that the translated IFRSs are of a high quality. Moreover, the translation of IFRSs is often also an important component in a country's decision to adopt IFRSs. The IFRS Translations Update gives an overview of recently published and upcoming translations:

• Recently published translations:
  • Spanish translation of the 2010 Red Book
  • French translation of the requirements of the standards
  • French translation of IFRS for SMEs
  • Korean 2010 XBRL taxonomy
  • Japanese 2010 Red Book
• Upcoming translations:
  • Arabic 2010 XBRL taxonomy
  • Arabic translation of the 2010 Red Book (by the end of this year)
  • German 2010 Red Book (in the first quarter of 2011)
  • Polish translation of the 2010 Red Book (by the second quarter of 2011)
  • Traditional Chinese 2010 Red Book (will be published on the Taiwanese Financial Supervisory Commission's website as the standards become available)
  • Other projects in progress include the Brazilian Portuguese 2010 Red Book and IFRS for SMEs, and the Serbian IFRS for SMEs.
• Russian translation update: The requirements of the standards that have been issued since the 2009 Red Book, IFRS for SMEs, and the Training Modules for IFRS for SMEs have all been translated into Russian and are awaiting review by the expert review committee which is currently being finalised. Throughout 2011 the Russian translation will continue to be updated in support of IFRS adoption in Russian-speaking countries.

Click for:

• IFRS Translation Update (link to IASB website)

The report was produced by the Monitoring Group into the so-called 'IFAC Reforms' aimed at strengthening the international auditing and assurance standards process to bolster public confidence in the work of auditors and in the financial reporting process.

You can access the agenda on our November 2010 IASB meeting page. We will also post Deloitte observer notes on this page as they are available.

The VRG met on 1 November 2010 and discussed the four issues listed below. Deloitte (United States) has published the 8 November 2010 edition of the Heads Up Newsletter (PDF 126k) explaining the four issues:

• VRG Issue No. 2010-05: Fair Value Measurement of Contingent Consideration in a Business Combination
• VRG Issue No. 2010-06: Application of the Multiperiod Excess Earnings Method and the Greenfield Method to Intangible Assets
• VRG Issue No. 2010-07: Proposed Accounting Standards Update, How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test
• VRG Issue No. 2010-08: Measurement Uncertainty Analysis Disclosure and Possible Alternatives

 

The appointments were confirmed at the IFAC Council meeting being held in Kuala Lumpur, Malaysia. A number of new associates were also admitted to the organisation (from Bosnia and Herzegovina, Croatia, Republic of Macedonia, Russia and Sri Lanka).

Click for IFAC press release (link to IFAC website).

The exposure draft proposes a principles-based framework for the 'public interest' concept, which can be applied to standard-setting, governance processes, policy analysis, and regulatory issues. Although mainly designed for use by IFAC itself, IFAC considers it may also be useful to the accountancy profession as well as to policymakers, regulators, and business leaders.

IFAC considers that the accountancy profession, in serving the public interest, should be evaluated against three criteria:

• consideration of costs and benefits for society as a whole
• adherence to democratic principles and processes
• respect for cultural and ethical diversity.

Comments on the exposure draft are requested by 25 March 2011. Click for IFAC press release (link to IFAC website).

The International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) will hold a joint meeting in London on 12 November 2010.

Presented below is the agenda for the meeting.

IASB/EFRAG joint meeting 12 November 2010, London
Is there a June 2011 deadline? Revenue recognition Leases Financial instruments Hedge accounting Impairment Other financial instruments issues Consolidation Insurance Financial statements presentation (including OCI)

Click for EFRAG press release (link to EFRAG website).