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New Global Offerings Services newsletter

13 May 2005

We have posted the (PDF 305k).

Global Offerings Services is a global team of Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. Past GOs Newsletters are Here.
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EFRAG supports proposed amendments to IFRSs 1 and 6

12 May 2005

EFRAG has invited comments (by 31 May 2005) on its Draft Letter to the IASB concerning the IASB's proposed small amendments to IFRS 6 and IFRS 1. The amendments would clarify that an entity that both (a) adopts IFRSs for the first time before 1 January 2006 and (b) applies IFRS 6 before that date is exempted not only from providing comparative prior-period disclosures but also from applying the recognition and measurement requirements of IFRS 6 in the prior comparative period.

EFRAG supports the IASB proposal.
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New comprehensive China accounting standards section

12 May 2005

Please visit our new section presenting a Comprehensive Overview of Chinese Accounting Standards (CAS), including: .

Please visit our new section presenting a Comprehensive Overview of Chinese Accounting Standards (CAS), including:

  • History of development of CAS
  • China Accounting Law
  • English translations of all standards
  • English translation of the comprehensive Accounting System for Business Enterprises
  • Accounting guidelines for specific industries
  • Other accounting pronouncements
  • Accounting System for Financial Institutions
  • Accounting System for Small Business Enterprises
  • China's movement towards convergence with IFRSs and challenges
We will announce additions to this section in the coming months.
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IASCF invites nominations for SAC chairman

11 May 2005

The Trustees of the IASC Foundation, under which the IASB operates, have invited applications for a part-time chairman of the IASB's Standards Advisory Council (SAC).

Heretofore, under the IASCF constitution, the Chairman of the IASB was also formally the chair of SAC, though one of the SAC members has presided at the meetings. The Trustees are changing this to have an independent SAC chairman. The deadline for applications is 8 June. Click for Press Release (31k).
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Guidance for auditing first-time adoption of IFRSs

10 May 2005

The United Kingdom Auditing Practices Board (APB) has published Draft Bulletin 2005/3 setting out further interim guidance for auditors on first-time application of IFRSs in the United Kingdom and the Republic of Ireland.

In August 2004 the had APB published preliminary guidance on issues that may arise when companies make the transition from UK/Irish GAAP to IFRSs. The new Bulletin reflects a number of additional issues, including the auditor's review of interim financial information in the first year of adoption of IFRSs. The Bulletin notes:

In spite of the progress made in resolving many of the legal and regulatory issues there are some remaining uncertainties. In particular, the specific wording to be used in the auditor's report when describing the financial reporting framework is still under debate. The wording used in the draft Bulletin is "those IFRSs adopted for use in the European Union" but there is a continuing discussion within Europe on the best term to use. The APB favours a consistent approach to this matter within Europe and accordingly this Bulletin is being issued as interim guidance and the description of the financial reporting framework used in it may be changed if there is a European consensus for a different description.

Click to download:

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SEC will make comment letters public

10 May 2005

Starting 12 May 2005, the US Securities and Exchange Commission will begin publicly releasing comment letters and response letters sent to registrants relating to disclosure filings made after 1 August 2004 and reviewed by the Division of Corporation Finance and the Division of Investment Management.

The letters will be released individually through the SEC's EDGAR system at www.sec.gov not earlier than 45 days after the review of the disclosure filing is complete.
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Deloitte Australia welcomes AASB convergence proposal

10 May 2005

Deloitte Australia has today issued a (PDF 24k) welcoming the Australian Accounting Standards Board's decision to issue an exposure draft that would fully converge AASB 3 Business Combinations with IFRS 3. Under the AASB proposal, business combinations involving entities under common control would be removed from the scope of AASB 3, as would certain Australian-specific requirements.

As a result, common control business combinations will be accounted for in the same manner under AASB 3 and IFRS 3. Deloitte Australia has been a long-term critic of the AASB's scope amendments to IFRS 3 when originally creating the local Australian standard, most recently in this (PDF 509k).
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What exactly is convergence?

10 May 2005

We have posted an article titled What Exactly Is Convergence? (PDF 198k) by Paul Pacter, IAS Plus webmaster.

Paul's article discusses different national and regional approaches to converging local GAAP with IFRSs and the progress in various countries around the world. It was published in a special issue of the International Journal of Accounting, Auditing and Performance Evaluation devoted to "the new value-relevant global financial reporting model" (copyright 2005 by Inderscience and posted with the kind permission of the publisher).
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IASB European 'Roadshow' dates announced

09 May 2005

The IASB is organising a series of 'Roadshows' jointly with national standard setters in a number of European countries.

Typically, each event will include a three-hour meeting of several Board and staff members with 20 or so CFOs and CAOs and a press briefing. The focus of the discussion will be the Board's current and future projects. The schedule is as follows:

  • The Hague, Netherlands – Monday 6 June 2005
  • Frankfurt, Germany – Wednesday 8 June 2005
  • Copenhagen, Denmark – Thursday 9 June 2005
  • Helsinki, Finland – Friday 10 June 2005
  • Rome, Italy – Monday 13 June 2005
  • Brussels, Belgium – Wednesday 15 June 2005
  • Vilnius, Lithuania – Wednesday 15 June 2005
  • Vienna, Austria – Friday 17 June 2005
  • Oslo, Norway – Monday 27-Tuesday 28 June 2005
  • Lisbon, Portugal – Thursday 30 June-Friday 1 July 2005
  • Zurich, Switzerland – Monday 4-Tuesday 5 July 2005
  • London, United Kingdom – Friday 8 July 2005
  • Stockholm, Sweden – Tuesday 13 September 2005
  • Dublin, Ireland – Expected in September 2005
  • Paris, France – Expected in September 2005
  • Athens, Greece – To be confirmed
  • Warsaw, Poland – Expected in September 2005
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EFRAG recommends that the EC not endorse IFRIC 3

07 May 2005

The European Financial Reporting Advisory Group (EFRAG) has submitted its advice to the European Commission on IFRIC Interpretation 3 'Emission Rights' recommending that the Commission not endorse IFRIC 3 for use in Europe.

EFRAG's primary reason is that:

 

[IFRIC 3] creates a measurement mismatch (whereby some items are measured at cost (IAS 38 and IAS 20) and others at fair value (IAS 37)) and a reporting mismatch (whereby some gains and losses are reported in profit and loss (IAS 37 and IAS 20) and others in equity (IAS 38)) ....

EFRAG believes that application of IFRIC 3 will not always result in relevant financial information because in certain cases it does not faithfully represent the economic reality. EFRAG also believes that the disadvantages that would arise from endorsing the interpretation outweigh the advantages of guidance on the accounting of emission rights schemes. EFRAG has therefore concluded that IFRIC 3 does not meet all of the requirements of the Regulation EC No. 1606/2002 of the European Parliament and of the Council on the application of International Accounting Standards....

For the reasons given above we believe that it is not in the European interest to adopt IFRIC 3 in its present form. EFRAG therefore recommends that the EU Commission should not endorse IFRIC 3 Emission Rights.

Click to Download EFRAG's Letter (PDF 303k). EFRAG has also posted on its Website its draft comment letter on IFRIC D15 Reassessment of Embedded Derivatives.

 

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