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FRC proposes enhancements to company reporting and audit

11 Jan 2011

The UK's Financial Reporting Council (FRC) has published recommendations aimed at improving the dialogue between company boards and their shareholders.

The FRC's report, 'Effective Company Stewardship: Enhancing Corporate Reporting and Audit', contains seven key recommendations including the recommendations that companies should take advantage of technological developments to increase the accessibility of the annual report and its components and that there should be greater investor involvement in the process by which auditors are appointed. The overall aim of the recommendations is to provide more balanced and comprehensive information to investors. Click for FRC press release and the FRC's report (both links to FRC website).


Two surveys amongst German small and medium-sized entities on the IFRS for SMEs

11 Jan 2011

The Accounting Standards Committee of Germany (ACSG) has published the results of two surveys amongst German small and medium-sized entities on their assessment of the IFRS for SMEs.

The first survey that resulted in the Final Report of the Survey on the IFRS for SMEs among German SMEs asked 4.000 non-listed companies regarding the need for the IFRS for SMEs in Germany and their assessment of the requirements of the IFRS for SMEs compared to those under the German Accounting Modernisation Act. The final question was whether the SMEs participating in the survey would consider applying the IFRS for SMEs in their single and/or consolidated accounts if it were legally possible in the future. 14% of the responding entities answered with "yes", 83% with "no". 73% of those who answered with "no" stated that they prefer German GAAP, 17% percent preferred full IFRSs and 10% cited "other reasons".

The second survey that resulted in the Final Report of the Survey on the IFRS for SMEs among German "small" publicly traded entities targeted 342 "small" listed companies (with sales up to 130 million Euro) and analysed their assessment of the IFRS for SMEs in general, compared to full IFRS and advantages or disadvantages in potentially applying the IFRS for SMEs. The survey showed that a majority of the participating publicly traded entities see the IFRS for SMEs as a sensible regulatory alternative that should be available to them. This is in clear contrast to the IASB's intention to exclude publicly traded entities from the scope of the standard.

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IASB podcast on the Insurance Contracts project

11 Jan 2011

The IASB has posted to its website a podcast on the latest developments concerning the insurance contracts project.

Warren McGregor, IASB member, summarises the discussions at the joint December Board meeting, considers the feedback received on the exposure draft/discussion paper and provides an overview of the planned discussions in January.

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Spanish translation of Deloitte's newsletter on lease accounting in the retail industry

11 Jan 2011

Deloitte (Colombia) has published Contabilidad en la industria minorista. Surge un nuevo punto de vista sobre la contabilidad del arrendamiento.

This is a spanish translation of Accounting in the Retail Industry: A new view of lease accounting emerges, published in September 2010.

Click for Contabilidad en la industria minorista. Surge un nuevo punto de vista sobre la contabilidad del arrendamiento (PDF 216k).

ESMA becomes operational

11 Jan 2011

The Board of Supervisors (BOS) of the European Securities and Markets Authority (ESMA) held its inaugural meeting today.

The meeting consisted of the election of Carlos Tavares as Vice-Chairman of ESMA. Tavares will be acting as the Chair of ESMA until the elected Chair of ESMA takes office. Also during the meeting, the BOS adopted rules and procedures that defined how ESMA will function and set up the Management Board. The ESMA also confirmed that all existing Level 3 measures issued by CESR will remain valid in their original status under ESMA.

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Notes from January IFRS Interpretations Committee meeting

11 Jan 2011

The IFRS Interpretations Committee met in London on 6-7 January 2011. We have posted Deloitte observer notes from the topics discussed at the meeting, as follows (click through for direct access to the notes for that particular topic):

Newsletter on amendments to IFRS 1 related to severe hyperinflation

10 Jan 2011

Deloitte's IFRS Global Office has published an IFRS in Focus Newsletter – IASB issues amendments to IFRS 1 on first-time adoption of IFRSs after period of severe hyperinflation.

The amendments provide guidance for entities emerging from severe hyperinflation that are either resuming the presentation of IFRS-compliant financial statements or presenting IFRS-compliant financial statements for the first time.

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Malaysia proposes 'Reduced Disclosure Requirements' for certain entities

10 Jan 2011

The Malaysian Accounting Standards Board (MASB) has issued an exposure draft proposing to introduce a framework known as 'Financial Reporting Standards — Reduced Disclosure Requirements' (FRS-RDR) which would allow entities that meet specified criteria to provide lesser disclosures than those required under the existing Financial Reporting Standards (FRS) framework.

The proposed disclosures under the FRS-RDR would be the minimum required in the financial statements of eligible entities, which include non-publicly accountable subsidiaries, associates and jointly-controlled entities of a non-private entity. Recognition and measurement requirements under the FRS-RDR framework would be identical to the FRS framework to allow consolidated financial statements to be more easily prepared. MASB is working towards full convergence of FRS with IFRSs as issued by IASB by 1 January 2012.

'Reduced Disclosure Requirements' have recently been implemented in Australia and are being considered in New Zealand, but for all non-publicly accountable entities, rather than just related entities of non-private entities as is being proposed in Malaysia. In March 2010, the MASB issued an exposure draft on the possible adoption of the IFRS for SMEs for other private entities, in lieu of the existing Private Entity Reporting Standards (PERSs).

Comments on the exposure draft are requested by 31 January 2011. Click for press release (link to MASB website).

Agenda for the January 2011 IASB meeting

10 Jan 2011

The IASB will hold its monthly meeting for January 2011 at the IASB offices in London from 17 to 20 January 2011. The second, third and fourth days of the meeting are joint meetings with FASB.

You can access the agenda on our January 2011 IASB meeting page. We will also post Deloitte observer notes on this page as they are available


IAASB seeks input on future strategy and work program

10 Jan 2011

The International Auditing and Assurance Standards Board (IAASB) has released for comment its Proposed Strategy and Work Program for 2012—2014.

The proposed program is grouped into the following topic areas:

  • Developing and revising IAASB Standards:
  • Maintaining a commitment to the International Standards on Auditing (ISAs) and the audit (including having input into the IASB's projects and their impacts on auditing standards)
  • Enhancing public confidence through the development or revision of assurance and other standards that address demands of users of financial information, including greenhouse gas statements, XBRL, prospective information and integrated reporting
  • Responding to concerns about implementation of IAASB Standards
  • Ongoing outreach and other communication activities to promote adoption of IAASB Standards.

In addition, a number of consultation documents are expected over the coming weeks as the result of the IAASB's December 2010 meeting.

Comments on the Consultation Paper are requested by 4 April 2011. Click for press release (link to IFAC website).

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