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Heads Up newsletter on SEC issues

26 Dec 2005

In our news story of 14 December 2005 we posted a special edition of Deloitte's Heads Up newsletter summarising the accounting highlights of the SEC and PCAOB Conference sponsored by the American Institute of CPAs, held 5-7 December 2005 in Washington.

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IAS 39 amendment fully adopted in Europe

24 Dec 2005

The European Commission has published the amendment of IAS 39 for Cash Flow Hedge Accounting of Forecast Intragroup Transactions in the Official Journal of the European Union, making it fully endorsed for use in Europe.

Click for (PDF 44k).
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Agenda project pages updated

24 Dec 2005

We have updated the following agenda project pages to reflect the discussions and decisions at the December 2005 meeting of the International Accounting Standards Board: Accounting Standards for Small and Medium-sized Entities Conceptual Framework Fair Value Measurement Financial Instruments Puttable at Fair Value Insurance Contracts Joint Ventures Short-term Convergence – Income Taxes .

We have updated the following agenda project pages to reflect the discussions and decisions at the December 2005 meeting of the International Accounting Standards Board:

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China moves toward adoption of ISAs

23 Dec 2005

The Chinese Auditing Standards Board (CASB) and the International Auditing and Assurance Standards Board (IAASB) have released a joint statement in which the CASB states its intention to converge Chinese auditing standards with the IAASB's International Standards on Auditing (ISAs).

To date the CASB has adopted 26 Chinese auditing standards. Seventeen exposure drafts are currently outstanding, and five more will be issued soon. The CASB has made amendments to some of the ISAs and also has issued Chinese standards to deal with matters not covered in the ISAs. In the joint statement, the Ministry of Finance states its intention to "eliminate, over time, as the environment in China changes, those differences between Chinese auditing standards and the ISAs that still exist". Click to (PDF 987k).
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EC to study IFRSs and profit distribution

23 Dec 2005

The European Commission's Internal Market Directorate has invited public comment on future priorities for the Action Plan on the Modernisation of Company Law and Corporate Governance.

Comment deadline is 31 March 2006. While the issues addressed in the consultation generally do not relate to accounting, the following point is noted regarding a study on the implications of IFRSs on profit distribution:

On 13 August 2005, the Commission published a call for tender for a feasibility study on alternative to capital maintenance regime as established by the Second Company Law Directive and the examination of the implications of the new EU-accounting regime on profit distribution. The terms of reference of the feasibility study will be re-examined by the members of the Advisory Group on Company Law and Corporate Governance and a further call for tender will be published in early 2006.

Click to download:
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Wording for stating compliance with IFRSs in EU

23 Dec 2005

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to the EU Regulation 1606/2002/EC (the 'IAS regulation'): "in accordance with International Financial Reporting Standards as adopted by the EU" or "in accordance with IFRSs as adopted by the EU". This wording has been posted to the Commission's website as part of the (PDF 29k). .

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to the EU Regulation 1606/2002/EC (the 'IAS regulation'):

  • "in accordance with International Financial Reporting Standards as adopted by the EU" or
  • "in accordance with IFRSs as adopted by the EU".
This wording has been posted to the Commission's website as part of the (PDF 29k).
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Board and Trustee appointments

22 Dec 2005

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The Trustees of the IASC Foundation, under which the IASB operates, have made the following announcements with respect to appointments of members of the International Accounting Standards Board and Foundation trustees: [Click for the IASCF Press Release (PDF 83k).]

International Accounting Standards Board

  • IASB Chairman Sir David Tweedie has been reappointed to a five-year term as Chairman of the Board. His current term expires 30 June 2006.
  • The terms of four other members of the IASB expire on 30 June 2006: Hans-Georg Bruns, Warren McGregor, Geoffrey Whittington, and Tatsumi Yamada. Each of them is eligible for reappointment. However, Professor Whittington has indicated that he is not seeking reappointment.
IASCF Trustees
  • Tommaso Padoa-Schioppa, a founding member of the Executive Board of the European Central Bank, will replace Paul Volcker as Chairman of the Board of Trustees of the IASC Foundation, effective 1 January 2006.
  • In addition to Mr. Padoa-Schioppa, the following new Trustees have been appointed:
    • Marvin Cheung, retired Chairman of KPMG Hong Kong, Hong Kong SAR, People's Republic of China
    • Samuel DiPiazza, CEO, PricewaterhouseCoopers, United States
    • Liu Zhongli, President, Chinese Institute of Certified Public Accountants; former Minister, Ministry of Finance, People's Republic of China
    • William McDonough, former Chairman, US Public Company Accounting Oversight Board, United States; former President, Federal Reserve Bank of New York
    • Sir Bryan Nicholson, outgoing Chairman, Financial Reporting Council, United Kingdom
    • T. V. Mohandas Pai, Member of the Board and Chief Financial Officer, Infosys Technologies Limited; Chairman of the Board, Progeon Limited, India
    • Junichi Ujiie, Chairman, Nomura Holdings Inc, Japan.
  • Max Dietrich Kley, a member of the Supervisory Board of BASF AG and a current IASCF trustee, has been reappointed as an IASCF trustee for a three-year term.
  • After these appointments and reappointment, one of the 22 Trustee positions remains vacant, and the Trustees are now completing arrangements to fill that vacancy. When the final position is filled, there will be eight Trustees from Europe, six from North America (four from the United States), six from the Asia/Oceania region, and one each from Africa and South America.
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Special IAS Plus newsletter on IFRIC 7

22 Dec 2005

In November 2005, the International Financial Reporting Interpretations Committee issued Interpretation 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies.

IFRIC 7 contains guidance on how an entity would restate its financial statements pursuant to IAS 29 in the first year it identifies the existence of hyperinflation in the economy of its functional currency. The Interpretation is effective for annual periods beginning on or after 1 March 2006. Earlier application is encouraged. Deloitte has published a (PDF 51k) explaining IFRIC 7. You will find links to all past IAS Plus newsletters Here.
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New European Group of Auditors' Oversight Bodies

22 Dec 2005

The European Commission has formed a European Group of Auditors' Oversight Bodies (EGAOB).

The goal of EGAOB is to ensure effective coordination of new public oversight systems of statutory auditors and audit firms that each EU Member State is required to establish under the October 2005 amendments to the 8th Company Law Directive. The new Group may also provide technical input to the preparation of possible measures of the Commission implementing the Directive, such as endorsement of the International Standards on Auditing or assessment of third countries' public oversight systems. Click for:
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IFRIC staff summary of service concessions project

22 Dec 2005

At the November 2005 IFRIC meeting, IFRIC members directed staff to prepare a summary of decisions made to date on the service concessions project.

The project summary has now been Posted on the IASB's Website. The summary outlines the project objective and background, the IFRIC's deliberations leading to the publication of Draft Interpretations 12, 13, and 14, and the IFRIC's post-exposure deliberations on the draft Interpretations.

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