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2010

Notes from special December IASB meeting

03 Dec 2010

The IASB met in London on 3 December 2010 for a special meeting.

The topics discussed were as follows:

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the meeting. The next meeting (IASB/FASB joint) will be a special meeting on Financial Instruments: Impairment scheduled for 8 December 2010.

Three Deloitte publications issued

03 Dec 2010

Deloitte's Singapore Office has published Changes to the financial reporting framework in Singapore, which provides an update of the recent changes in the Singapore financial reporting framework. In The top 10 issues mining companies will face in the coming year, Deloitte professionals look ahead to 2011 and consider the trends that will affect the mining industry.

Finally, the IFRS Global Office issued IFRS Project Insights – Income Taxes, which provides an update on the Income Tax project. Click for:

Live webcasts on Management Commentary

03 Dec 2010

On Thursday 16 December staff of the IASB will present two webcasts about the IFRS Practice Statement Management Commentary which is expected to come out this month.

Management commentary is a narrative report that provides a context for the related financial statements. The Practice Statement will provide a broad, non-binding framework for the presentation of management commentary that relates to financial statements that have been prepared in accordance with International Financial Reporting Standards (IFRSs).

Singapore issues SFRS for Small Entities

02 Dec 2010

The Singapore Accounting Standards Council (ASC) has issued the Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities).

 

The SFRS for Small Entities is based on the IFRS for SMEs. The main differences are the references to Singapore Financial Reporting Standards (SFRS) instead of IFRS, as well as the description of the scope and applicability of the SFRS for Small Entities. The ASC has stated in its accompanying 'Statement on Applicability' that these changes do not constitute a deviation from the IFRS for SMEs.

An entity is eligible to the apply the SFRS for Small Entities if it is not publicly accountable, publishes general purpose financial statements for external users, and meets the definition of a 'small entity' (for each of the previous two consecutive financial reporting periods, with amended application to newly incorporated entities). An entity qualifies as a small entity if it meets at least two of the three following criteria:

  • total annual revenue of not more than S$10 million
  • total gross assets of not more than S$10 million
  • total number of employees of not more than 50.

 

The standard applies (as an option) as an alternative framework to the Singapore Financial Reporting Standard (SFRS) for the preparation and presentation of general purpose financial statements of entities for financial reporting periods beginning on or after 1 January 2011. Click for ASC press release (link to ASC website).

United States publication focuses on the value of an IFRS Center of Excellence

02 Dec 2010

Deloitte (United States) has published 'CFO insights: Cut costs and drive value with an IFRS Center of Excellence'.

As CFOs throughout the world prepare for a shift from local GAAP to IFRSs, there is an opportunity for CFOs to improve the efficiency of preparation, consistency, and reliability of their company's financial reports by establishing an IFRS Center of Excellence. The publication is available here (PDF 89k).

EFRAG issues its feedback statement on its proactive consultation

02 Dec 2010

The European Financial Reporting Advisory Group (EFRAG) issued a feedback statement on the public consultation on its Proactive work.

The feedback statement provides a summary of the comments received, along with EFRAG's responses and proposed actions.

EFRAG Chairman, Françoise Flores, comments: "We were very encouraged by the response and have heard loud and clearly the message that we need to ensure that our proactive work is focused, practical and reaches the widest possible audience. Our ambition remains for Europe to be at the forefront of developments in financial reporting."

Click for EFRAG press release (link to EFRAG website) and the feedback statement (PDF 860k).

We comment on ED/2010/8

02 Dec 2010

Deloitte has submitted a comment letter on Exposure Draft ED/2010/8 Insurance Contracts.

The amendment proposes a single IFRS that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. The proposed IFRS would apply to writers of both insurance and reinsurance contracts.

We welcome the model proposed in the ED because it offers improvements to the accounting for insurance contracts under existing IFRS practices. However, the ED includes a number of proposals that appear to move away from the ED's core principles and we recommend that the Board considers alternative solutions to address these areas to ensure consistency with the ED's core principles. Click to Download our Comment Letter (PDF 125k). All of our past comment letters are here.

November edition of IFRS on Point issued

02 Dec 2010

Deloitte's IFRS Global Office has published the November 2010 edition of IFRS on Point, which highlights the month's critical financial reporting developments.

IFRS on Pointis published monthly and provides a great way to catch up on the main IFRS-related news stories of the month.

Click for:

Islamic finance: Strengthening the global financial market

01 Dec 2010

At the 18th World Congress of Accountants (WCOA) 2010 in Kuala Lumpur in November 2010 Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, delivered a keynote address titled 'Islamic Finance: Strengthening the Global Financial Market'.

The Congress discussed the challenges to the industry in the aftermath of the recent financial crisis. The Shariah Board in Islamic financial institutions provides an extra layer of oversight, and Islamic finance has continued its global expansion during the financial crisis, expanding at an average annual rate of 20 per cent and representing one of the fastest growing segments in the financial industry.

On financial reporting, Dr Zeti observed that applying the existing accounting frameworks and conventions to Islamic financial institutions may prove to be more challenging given the unique features of Islamic financial transactions such as the equity based and profit sharing contracts. She commended the work done by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in enhancing cross-border comparability of Islamic financial transactions and urged the International Accounting Standards Board (IASB) to engage in the process. At the same conference, IASB Chairman Sir David Tweedie had noted Islamic Accounting as one of the possible issues for the IASB's agenda post-2011.

Click for Dr Zeti's keynote address (link to website of the Malaysian Institute of Accountants).

IPSASB issues annual improvements

01 Dec 2010

The International Public Sector Accounting Standards Board (IPSASB) has completed its improvements project for 2010 with the release of Improvements to IPSASs – 2010. .

The International Public Sector Accounting Standards Board (IPSASB) has completed its improvements project for 2010 with the release of Improvements to IPSASs – 2010.

The 2010 improvements amend existing International Public Sector Accounting Standards (IPSASs). The amendments consist of two parts:

  • Part 1 - amendments that are drawn from the IASB document, Improvements to IFRSs issued in April 2009
  • Part 2 - amendments that relate to inconsistent references to standards, terminology and structure resulting from IPSASB's general review of existing IPSASs.

The amendments generally apply to periods beginning on or after 1 January 2012 and may be early adopted. Click for IFAC press release (link to IFAC website).

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