The 'Blue Ribbon' Panel is currently seeking input on the preparation of private company financial statements in the United States.

As noted in our earlier story, the 'Blue Ribbon' Panel appears to prefer a 'home grown' alternative to the possible adoption of the IFRS for SMEs in the United States. The ICAEW's comment letter recommends the Panel reconsiders the IFRS for SMEs. An extract follows:

We note... that the Panel has already decided not to consider any IFRS-based approaches, and to focus exclusively on US GAAP based options. We understand that the reason for this is that even if IFRS were to be adopted for US companies, adoption would not in fact take place for at least five years... we believe that there is a case for considering the IFRS for SMEs as an option even if IFRS is not adopted for US listed companies in the near future. If IFRS is in fact adopted, either in five years' time or at some later date, the experience that will have been gained through familiarity with the IFRS for SMEs would facilitate the eventual transition process. The Panel may therefore wish to reconsider its exclusion of any option based on IFRS, and in particular the IFRS for SMEs.

Click for:

• ICAEW comment letter (link to ICAEW site)
• Our earlier story on US private company reporting (14 September 2010)
• Our earlier story on the 'Blue Ribbon' Panel request for comments (6 August 2010)
• Our IFRS for SMEs page.

 

Click for:

• Spanish version: Contratos de seguro (PDF 85k)
• English version: Insurance Contracts (PDF 105k).
• Our summary of the IASB's project on Insurance contracts
• Past issues of IFRS in Focus in English

 

Similarly, extensions of the exemptions in the Australian equivalents to IAS 28 and IAS 31 are also proposed.

Click for:

• German version: IFRS fokussiert - IASB gibt Standardentwurf zur Leasingbilanzierung heraus (PDF 488k).
• English version: IASB issues Exposure Draft on Lease Accounting (PDF 111k).
• Our summary of the IASB's project on leases
• Past issues of IFRS in Focus
• Our Germany country page
• IAS Plus in German translation: www.iasplus.de

 

The DP is part of the FASB's joint project with the International Accounting Standards Board (IASB). In July 2010, the IASB issued an Exposure Draft (ED) without the FASB after it became clear that agreement between the two standard setters could not be reached on all points in question. The proposed international financial reporting standard (IFRS) would apply to all insurance contracts written by both insurance companies and noninsurance companies. The FASB DP now published is a wrap-around invitation to comment on the IASB ED and asks stakeholders to provide input about the following:

• Whether the IASB's proposal would be a sufficient improvement to U.S. GAAP to justify the cost of change;
• Whether the project goals of improvement, convergence, and simplification would be more effectively achieved by making targeted improvements to existing U.S. GAAP (rather than issuing comprehensive new guidance); and
• Certain critical accounting issues for which the preliminary views of the FASB differ from the IASB's ED.

Comments on the DP are due on 15 December 2010. Click for:

• FASB press release (link to FASB website)
• Access to the DP on the FASB's website
• FASB podcast about the DP (link to FASB website)
• IAS Plus summary of the IASB ED on insurance contracts
• Access to the ED on the IASB's website

 

 

A 'Q&A Report' has been published containing a summary of audience questions submitted during the live webcast and our suggested answers. Topics covered include the IASB's proposals on financial statement presentation, revenue recognition and leases.

The next global financial reporting Dbriefs webcast is scheduled for the next quarter. Click for:

• Q&A Report (PDF 45kb)
• Archive recording of the webcast (registration required).
• Dbriefs program information.

 

Details of the convention outline are below:

• October 6 — Morning Sessions The morning sessions will feature speakers from the IASB, SEC and some companies who have filed XBRL data with the SEC. The focus will be on practical issues.
• October 6 — 1PM – 4PM – IFRS Taxonomy Workshop – led by Eric Cohen, CPA The workshop will provide hands-on experience with using the IFRS XBRL taxonomy
• October 7 — 8:30AM – 10:00PM Understanding XBRL This seminar will provide a thorough introduction to the basics of XBRL – what it is, how it works, how it is used, etc.
• October 7 — 10:30AM – 4:30PM Quality and Assurance Workshop – Led by Efrim Boritz, PhD, FCA This research oriented workshop will explore the risks involved in XBRL tagging and how those risks might be addressed.

 

Mr. Golden's initial term will expire 30 June 2012, as he will be serving the remainder of the term vacated by Chairman Herz, who is stepping down as of 1 October. The press release notes the following in regards to the two remaining open positions on the FASB:

As announced by the FAF Trustees on August 24, 2010, the FASB will return to a seven-member structure. The Board of Trustees is engaged in processes to recruit and evaluate candidates for the two additional seats and to evaluate candidates for appointment as FASB Chairman. FASB member Leslie F. Seidman will assume the role of Acting Chairman as of October 1, 2010, as previously announced.

Click here to go to the FAF press release (link to the FAF website).

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-G Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts – Final consensus
• Issue 09-H Health Care Entities: Revenue Recognition – Consensus-for-exposure
• Issue 10-A How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test – Consensus-for-exposure
• Issue 10-B Accounting for Multiple Foreign Currency Exchange Rates – No consensus reached
• Issue 10-C Reporting Loans to Participants by Defined Contribution Pension Plans – Final consensus
• Issue 10-E Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate – No consensus reached
• Issue 10-G Disclosure of Supplementary Pro Forma Information for Business Combinations – Consensus-for-exposure

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 September 2010 EITF Snapshot.