EFRAG and OIC to hold outreach meeting on proactive discussion papers

29 Feb 2012

The European Financial Reporting Advisory Group (EFRAG) and the Italian standard setter (Organismo Italiano di Contabilità, OIC) will hold an outreach meeting on 15 March 2012 in Milan regarding discussion papers Accounting for business combinations under common control and Improving the Financial Reporting of Income Tax.

The meeting is designed to gather feedback from users in Italy and neighboring countries on the topics developed in the discussion papers. The feedback will then be used by the EFRAG, OIC and the ASB in future work with the IASB that relates to income taxes and business combinations under common control. Registration is requested by 6 March 2012.

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

Additional roundtable on investment entities proposals to be held in the United States

29 Feb 2012

The Financial Accounting Standards Board (FASB) has announced the FASB and International Accounting Standards Board (IASB) will hold an additional public roundtable meeting on Friday, March 16, 2012 to discuss the joint investment entities project.

The additional meeting has been scheduled to accommodate all interested participants and will be held from 1:30pm to 3:30pm (US EDT) at the FASB offices in Norwalk, CT. Discussion at the additional roundtable will be limited to the investments entities proposals and will follow the previously announced session being held on the same day.  The first roundtable is longer to allow discussion of the FASB’s exposure draft Real Estate — Investment Property Entities (Topic 973) which develops accounting guidance for entities focused on investing in real estate properties.

The additional roundtable was announced on the FASB's homepage (link to FASB website).

Proposed revisions to Code of Ethics

29 Feb 2012

The International Ethics Standards Board for Accountants (IESBA) has released proposed changes to the definition of "engagement team" in the IESBA 'Code of Ethics for Professional Accountants' (the Code) to avoid any perceived incompatibility between the Code and the International Standards on Auditing (ISAs).

The proposals address comments received by the International Auditing and Assurance Standards Board (IAASB) on its Exposure Draft (ED) on ISA 610 Using the Work of Internal Auditors. A number of respondents to that ED pointed out the perceived inconsistency between the independence requirements for external auditors under the Code and the use of internal auditors to perform external audit procedures. The proposed IESBA changes clarify that individuals in an internal audit function providing direct assistance to auditors do not meet the definition of the engagement team under the Code.

The proposals are open for comment until 31 May 2012. Click for IESBA announcement (link to IFAC website).

Notes from the February IASB meeting

28 Feb 2012

The IASB is holding its regular monthly meeting on 27 February – 2 March 2012 in London, part of it a joint meeting with the FASB. We have posted Deloitte observer notes from the impairment session held on Tuesday.

Click through for direct access to the notes:

Tuesday, 28 February 2012

Notes from the remaining sessions on Monday (insurance contracts) and Tuesday (insurance contracts and classification and measurement of financial instruments) will be posted soon.

You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

IVSC to tackle valuation of derivative instruments

28 Feb 2012

The International Valuation Standards Council (IVSC) has launched a project on the valuation of financial derivatives.

The types of derivative instrument that will be addressed by the project are equity derivatives, fixed income derivatives, credit derivatives, foreign exchange derivatives, commodity derivatives and hybrid derivatives. The intention is to examine the factors that influence the value of these instruments and how these are reflected in the models most commonly used for valuing them.

The IVSC Standards Board has formed an expert working group comprising of representatives of some of the major banks including UBS, Deutsche Bank and HSBC, independent consultants and buy side investors to advise it on the project.

An exposure draft is anticipated in the (Northern) autumn of 2012. Click for more information (link to IVSC website).

EFRAG report on implementation of IFRS 10, IFRS 11 and IFRS 12

27 Feb 2012

The EFRAG has issued a feedback report regarding field-tests on implementing IFRS 10, IFRS 11 and related disclosures in IFRS 12.

The field-tests were conducted by members of EFRAG and the European National Standards Setters. The tests were conducted in two separate questionnaires which gathered feedback from participates on issues arising from implementation of the new requirements and the estimate of expected costs and benefits preparers experienced.

Participants described certain benefits related to the implementation of IFRS 10 and 11, including (1) IFRS 10 provided "a single basis for consolidation and a uniform approach for all types of entities including 'special purpose entities'" and (2) IFRS 11 would eliminate "the existing accounting option for interests in jointly controlled entities."

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Update on Ukraine’s IFRS transition

24 Feb 2012

In June 2011 the changes in law "On accounting and financial reporting in Ukraine" were signed by the President of Ukraine. In accordance with such changes, public interest entities (Public Joint Stock companies, banks, insurance companies, and other companies that operate in financial markets) are required to prepare financial statements in accordance with IFRS.

The Cabinet of Ministers of Ukraine may provide an additional list of entities subject to reporting under IFRS.

In December 2011, the National Bank of Ukraine, Ministry of Finance and Ministry of Statistics issued a joint letter clarifying the adoption of IFRS in Ukraine. Banks are required to use 1 January 2011 as date of transition to IFRS. All other entities subject to IFRS adoption may choose either 1 January 2011 or 1 January 2012 as a date of transition to IFRS. Financial statements for 2011 are to be prepared based on Ukrainian Accounting Standards. All other entities may voluntary choose IFRS as their reporting framework.

Click for our Ukraine country page

AAOIFI issues two drafts on Islamic accounting

24 Feb 2012

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is an Islamic international autonomous non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia'a standards for Islamic financial institutions and the industry. Recently, the AAOIFI has published an exposure draft (ED) and a consultation paper.

The ED topic is about the proposed standard for a new investment in real estate. The consultation paper discusses the revision of two existing standards for investment accounts. Islamic financial transactions are particularly influenced by the consideration of the interest prohibition; conventional accounting standards are therefore sometimes difficult to apply to those financial transactions. Comments for both drafts are due 8 April 2012.

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IFRS Foundation appoints Ronald Arculli as a Trustee

23 Feb 2012

The Trustees of the IFRS Foundation have announced the appointment of Ronald Arculli as a Trustee.

Mr Arculli currently serves as the chairman of Hong Kong Exchanges and Clearing Limited, which operate the Hong Kong Stock Exchange. In addition, he is a member of the Hong Kong government's executive council.

Mr Arculli term is effective immediately and will end on 31 December 2014. He is allowed to renew his term once.

Click for IFRS foundation press release (link to IASB website).

IASB and FASB to host webcast on revised revenue exposure draft

23 Feb 2012

A one-hour webcast by the IASB and the FASB will be held on 29 February 2012 to discuss the main issues from the outreach on the revised exposure draft Revenue from Contracts with Customers (November 2011).

Details of the webcast are provided below:

Topic: Revised exposure draft Revenue from Contracts with Customers (November 2011)
Date and time: Wednesday, 29 February 2012 16:00 GMT
More information and registration: Click Here

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