IFRS Insights provides news on the latest developments on IFRSs, practical suggestions for companies addressing IFRSs, updates on the regulatory environment, and references to relevant tools and resources. This issue includes:

• Updates on SEC activity and FASB/IASB convergence efforts
• Share-based Payments: Accounting differences between US GAAP and IFRSs
• Technical Corner: IFRS 9 Financial Instruments
• IFRS Survey: A look at the numbers

 

• Elke Koenig – former member of the executive board and chief financial officer (CFO) of Hannover Re Group (Germany). Dr Koenig has served as a senior financial executive in the insurance industry. From 2002 to 2009 she served as CFO of Hannover Re Group, a leading international reinsurance group. Previously she spent twelve years as a member of the senior management of Munich Re, with specific responsibility for the group's accounting and controlling activities. She is currently serving in non-executive capacities as chairperson of Hannover Finanz GmbH and as a member of the supervisory board of Deutsche Hypothekenbank Actiengesellschaft. Dr Koenig has been a member of the CFO Forum of European insurers, where she has been actively engaged in the IASB's project on insurance contracts.
• Darrel Scott – CFO of the FirstRand Banking Group (South Africa). Mr Scott is CFO of the FirstRand Banking Group, one of the largest financial institutions in South Africa. He has responsibility for both statutory and regulatory financial reporting under the Basel II Accords. He serves on various governance, risk, operations and strategic committees of the Group. Mr Scott is also a member of the IASB's International Financial Reporting Interpretations Committee (IFRIC), a position from which he will resign to become an IASB member, and was formerly a member of the IASC Foundation's Standards Advisory Council (SAC).

Dr Koenig and Mr Scott will begin their five-year terms as full-time members of the IASB in July and October 2010 respectively. The appointments fill vacancies that will be created by the retirement of Robert Garnett and Gilbert Gelard on 30 June 2010. A search is ongoing for a replacement for Jim Leisenring, who also retires at the end of June 2010. Click for Press Release (PDF 28k).

 

The paper – Pro-active Paper on the Definition of an Asset (PDF 336k) – is intended to serve as input to the IASB in its deliberation on the development of the Conceptual Framework Phase B.

Current definition of an asset in the IASB Framework: An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Proposed new definition: An asset of an entity is a present economic resource to which the entity has a right or other access that others do not have.

The paper tests a dozen arrangements against the two definitions: cash on hand, an account receivable, an assembled workforce, goodwill, a lottery ticket, an offer of future discounts to potential customers, know-how/knowledge acquired as a result of research expenditures, an improved position in the market/new customer relationship resulting from marketing efforts, contracts, a licence to operate in a restricted market, a deferred tax item for an unused tax loss, and a planned transaction. While the first six arrangements were also tested by the IASB/FASB staff, the last six arrangements were solely chosen and analysed by the EFRAG/ANC project staff.

 

(As of 20 Jan 2010 there were 926 non-US audit firms registered with the PCAOB.) The PCAOB said it conducted inspections of one or more registered firms in 33 jurisdictions as of December 2009. At the same time, the PCAOB noted that in 2009 it was denied access to information necessary to conduct inspections in China, Finland, France, Germany, Greece, Ireland, the Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom. Discussions are continuing with the relevant authorities in those jurisdictions in an effort to resolve their objections to PCAOB inspections. The PCAOB has announced the 28 jurisdictions in which the PCAOB plans to conduct inspections in 2010, including all of those in which access was denied in 2009. Click for PCAOB Announcement (PDF 40k) with active hyperlinks to additional information.

 

All are open to public observation. Board and IFRIC meetings are webcast. Details, including agenda, of the meetings may be found (in due course) on the IASB's Website (click on 'meetings diary').

IASB-FASB Special Joint Board Meeting Date: Wednesday 10 February 2010 (Noon to 14:00pm GMT) Location: IASB Boardroom, London Meeting of the IASB/FASB Joint International Group on Financial Statement Presentation and Financial Institutions Advisory Group Date: Friday 12 February 2010 Location: The Financial Accounting Standards Board, Norwalk , CT USA IASB Regular Monthly Board Meeting - February 2010 Date: Monday-Friday 15-19 February 2010 (16-18 February will be joint with FASB) Location: IASB Boardroom, London Standards Advisory Council Meeting Date: Monday-Tuesday 22-23 February 2010 Location: Renaissance Chancery Court Hotel, London Meeting of IASB representatives with the Analyst Representative Group Date: Wednesday 24 February 2010 Location: IASB Boardroom, London Expert Advisory Panel on Impairment of Financial Assets) Date: Thursday-Friday 25-26 February 2010 Location: IASB Board Room, London IASB-FASB Special Joint Board Meeting Date: Tuesday-Wednesday 2-3 March 2010 Location: IASB Boardroom, London International Financial Reporting Interpretations Committee Meeting Date: Thursday-Friday 4-5 March 2010 Location: IASB Boardroom, London IASB-FASB Special Joint Board Meeting Date: Thursday 11 March 2010 Location: IASB Boardroom, London IASB Regular Monthly Board Meeting - March 2010 Date: Monday-Friday 15-19 March 2010 (15-17 March will be joint with FASB) Location: IASB Boardroom, London IASB-FASB Joint Board Meeting Date: Monday-Wednesday 22-24 March 2010 Location: IASB Boardroom, London

 

The newsletter is now organised by topic rather than by standard-setter. Topics covered in this issue include:

Business Combinations FASB Issues ASU on Not-for-Profit Mergers and Acquisitions Consolidation FASB Votes to Finalize Deferral of Statement 167 for Certain Investment Funds FASB Clarifies Scope of Decrease-in-Ownership Provisions in ASC 810-10 FASB Issues ASU on Variable Interest Entities Contingencies IASB Reexposes Proposals for the Measurement of Liabilities in IAS 37 Earnings per Share FASB Issues Guidance on Accounting for Distributions to Shareholders With Components of Stock and Cash Fair Value Measurements and Disclosures FASB Issues ASU on Improving Disclosures About Fair Value Measurements AICPA Publishes Draft Issues Paper on Fair Value Measurements and Disclosures About Certain Issues Pertaining to Not-for-Profit Entities Financial Instruments FASB Deliberates Approach to Accounting for Credit Impairment and Interest Income Income Taxes French Business Tax Law Change Stock Compensation FASB Issues ASU on Escrowed Share Arrangements and the Presumption of Compensation Transfers and Servicing FASB Issues ASU on Accounting for Transfers of Financial Assets Industry Accounting FASB Updates Oil and Gas Reserve Estimation and Disclosure Requirements Other Accounting Financial Reporting Considerations Related to Venezuela's Currency Exchange Controls and Highly Inflationary Status FASB Proposes Amendments to Subsequent-Events Disclosure Requirements FASB Publishes Revised Notice to Constituents About the Codification FASB Issues Technical Corrections to SEC Content AICPA Issues Technical Practice Aids SEC Matters SEC Approves Interpretive Guidance on 'Climate-Change' Disclosures SEC Approves PCAOB Auditing Standard 7 SEC Issues Compliance and Disclosure Interpretations on Non-GAAP Measures SEC Issues Final Say-on-Pay Rules for TARP Companies SEC Issues Compliance and Disclosure Interpretations on Proxy Disclosure Enhancements Other Auditing PCAOB Issues Staff Guidance ASB Proposes Various Statements on Auditing Standards AICPA Issues Guidance on Compilation and Review Engagements AICPA's GAQC Issues Statement on Compliance Audits GASB Matters GASB Issues Final Statement on OPEB Measurements GASB Issues Final Statement on Chapter 9 Bankruptcies Other International FCAG Issues Letter to G-20 on IASB and FASB Progress IASB Issues Limited Exemption Amendment to IFRS 1

Click to view Accounting Roundup — January 2010. You will find past issues of Accounting Roundup Here.

 

The IASB and FASB held a special Joint Board meeting at the IASB's offices in London on Tuesday 2 February 2010. Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

This 2,918-page book sets out comprehensive guidance for entities reporting under IFRSs. The Guide:

• focuses on the practical issues faced by reporting entities;
• explains clearly the requirements of IFRSs;
• adds interpretation and commentary where IFRSs are silent, ambiguous or unclear; and
• provides many illustrative examples.

The Guide deals comprehensively with those new Standards that apply for periods beginning in 2009 and also covers those further pronouncements issued by the IASB up to 30 June 2009 that will apply from 2010. This edition of the manual includes new material dealing with:

• IFRS 6 Exploration for and Evaluation of Mineral Resources;
• the revised version of IFRS 1 First-time Adoption of International Financial Reporting Standards (November 2008);
• the amendment to IFRS 2 Group Cash-settled Share-based Payment Transactions (June 2009);
• the amendment to IFRS 7 Improving Disclosures about Financial Instruments (March 2009);
• the amendment to IAS 39 Eligible Hedged Items (July 2008);
• the amendments to IAS 39 and IFRS 7 Reclassification of Financial Assets (October 2008);
• the amendments to IFRIC 9 and IAS 39 Embedded Derivatives (March 2009);
• Improvements to IFRSs issued in April 2009;
• IFRIC 17 Distributions of Non-cash Assets to Owners;
• IFRIC 18 Transfers of Assets from Customers; and
• additional examples and guidance on issues arising in practice.

Orders may be placed via www.lexisnexis.co.uk/deloitte or call +44 (0) 845 370 1234. Click for Descriptive Booklet about This and Related iGAAP Publications for 2010 (PDF 248k).

 

On 28 January 2010, the IASB amended IFRS 1 First-time Adoption of International Financial Reporting Standards to exempt first-time adopters of IFRSs from providing the additional disclosures introduced in March 2009 by Improving Disclosures about Financial Instruments (Amendments to IFRS 7). The amendment gives first-time adopters the same transition provisions that Amendments to IFRS 7 provides to current IFRS preparers. The amendment is effective on 1 July 2010, with earlier application permitted. This newsletter explains the amendment. Click to view IAS Plus Update Newsletter – Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (PDF 75k). Past issues of all of our IAS Plus newsletters are Here.

 

Our summary now includes over 175 issues:

• IFRS 2 Share-based Payment – Transactions in which the manner of settlement is contingent on future events
• IFRS 4 Insurance Contracts and IAS 32 Financial Instruments: Presentation – Scope issue for REITs
• IAS 18 Revenue – Receipt of a dividend of equity instruments
• IAS 27 Consolidated and Separate Financial Statements – Combined financial statements and redefining the reporting entity
• IAS 27 Consolidated and Separate Financial Statements – Presentation of comparatives when applying the 'pooling of interests' method
• IAS 32 Financial Instruments: Presentation – Application of the 'fixed for fixed' condition
• IAS 38 Intangible Assets – Amortisation method