News

United Kingdom Image

All UK companies will be permitted to use IFRS

18 Jul 2003

The United Kingdom Department of Trade and Industry has approved a regulation that permits, starting January 2005, all British companies to use International Financial Reporting Standards as an alternative to UK accounting standards.

European law already requires listed companies to use IFRS from 2005 in preparing their consolidated accounts. In the UK, that requirement will be extended so that, starting January 2005:
  • publicly traded companies in the UK will also be permitted to use IFRS in their individual accounts; and
  • other companies and limited liability partnerships in the UK will be permitted to use IFRS in both their individual and consolidated accounts. Click for Press Release (PDF 16k).
European Union (old) Image

EC will propose immediate adoption of all IAS except 32 and 39

17 Jul 2003

In an announcement following the meeting of its Council of Finance Ministers (see story below dated 16 July), the European Commission urged the IASB and representatives of the banking and insurance industries "to pursue an active and open dialogue to reach an acceptable solution on IAS 32 and 39": "The Commission will be proposing to the Accounting Regulatory Committee in its meeting on 16th July that the EU endorse immediately all existing IAS, except IAS 32 and 39. If the Committee supports the Commission's proposal, the Commission intends to formally endorse all existing IAS except 32 and 39 in September. "IAS 32 and 39 are still being reviewed by the International Accounting Standards Board to ensure that they will provide a sufficiently rigorous solution for the accounting treatment of financial instruments for banks and insurance companies.

IAS 32 and 39 can then be reconsidered when available."
European Union (old) Image

Europe adopts a single prospectus

17 Jul 2003

The European Parliament and Council of Ministers have approved a new Directive on prospectuses, which will simplify the process of raising capital in the EU.

A "single passport" approved by the regulatory authority in one member state will be valid throughout Europe. The Directive covers only initial disclosure requirements at the time of capital raising. Conditions for admission to listing and ongoing financial reporting remain subject to existing European and national requirements. Press Release (PDF 13k).
News default Image

SEC will soon issue a report on principles-based standards

17 Jul 2003

US SEC Commissioner Cynthia A.

Glassman devoted a considerable portion of a Presentation in Washington yesterday to principles-based accounting standards. She noted:

The Commission soon will be releasing its report on moving towards a more principles-based approach to setting standards for financial reporting. It is a topic that the international accounting community is dealing with as well. . . . . . . Complying with the complicated maze of rules and interpretations that comprise Generally Accepted Accounting Principles seems to have become an end unto itself, rather than a means of providing useful information to investors and other end-users. Even worse, aggressive interpretation, technical compliance and gamesmanship have in too many instances replaced full disclosure and transparency as the guiding principles for financial reporting.

European Union (old) Image

EC Accounting Regulatory Committee endorses IAS minus 32/39

17 Jul 2003

By unanimous vote, the Accounting Regulatory Committee of the European Commission endorsed all extant International Accounting Standards for use in Europe other than IAS 32 and IAS 39 (and related Interpretations SIC 5, 16, and 17).

The IASB is currently deliberating amendments to those two standards, and – as noted in our earlier news stories of 15-17 July – the EC wants to consider the revised standards for endorsement. Click for ARC Meeting Summary (PDF 21k). The ARC recommendation does not cover IFRS 1, First-Time Adoption of IFRS, which will be considered separately by the ARC at a future meeting.
News default Image

Enforcement of IFRS in Europe

17 Jul 2003

In a presentation on How Accountants Fit in Creating a Single Capital Market (PDF 44k) delivered at the annual meeting of the Institute of Chartered Accountants in England and Wales, Michel Petite, the EC's Director-General of Legal Service, reviewed the issues that the EU is facing in ensuring rigorous enforcement of IFRS throughout Europe, including the 10 new countries that will join the EU on 1 May 2004. Financial reporting standards require that all the members of the Enlarged EU have in place the appropriate institutional oversight for their enforcement.

But the current structure of enforcement varies widely between member states. . . . In some member states, securities regulators are the accounting enforcers (like in France and Italy); in others, that function is exercised by a review panel (like in the UK with the Financial Reporting Review Panel); in others stock exchanges have some responsibility in this respect.
European Union (old) Image

Adoption of IAS 32 and 39 may be delayed in Europe

16 Jul 2003

Following discussion of measures for implementing the EU IAS Regulation 1606/2002, the Council of Finance Ministers (ECOFIN) issued a public announcement suggesting that IAS 32 and IAS 39 might not be adopted immediately in Europe: .

Following discussion of measures for implementing the EU IAS Regulation 1606/2002, the Council of Finance Ministers (ECOFIN) issued a public announcement suggesting that IAS 32 and IAS 39 might not be adopted immediately in Europe:

The Council asks the Commission to request the IASB to continue its dialogue with representatives of European industries in order to find a satisfactory and timely solution for the revised IAS 32 and 39 in view of their envisaged application.... The Council agrees with the Commission regarding the importance of an immediate adoption of all existing IAS, with IAS 32 and 39 as soon as possible thereafter. The adoption of future standards must respect the quality criteria set out in the IAS Regulation and be conducive to the European public good.

Under Regulation 1606/2002, an Accounting Regulatory Committee appointed by the EC must endorse IASB standards for use in Europe. The ARC meets today (16 July 2003). Click for Full Text of ECOFIN Announcement (PDF 207k. The IAS discussion is on pages 14 and 15.)
FASB (old) Image

FASB standards are now available on line without charge

16 Jul 2003

The US Financial Accounting Standards Board has made the full text of all of its Statements of Financial Accounting Standards issued since the FASB's inception in 1973 available on its website in PDF format without charge for personal, non-commercial purposes.

Each Statement is accompanied by a status page and (in most cases) a summary. The Statements are presented as originally issued – without shading to indicate amendments made by subsequent pronouncements. Statements that are completely superseded are so identified.
European Union (old) Image

European Commission debates IFRS today and tomorrow

15 Jul 2003

The recognition of IFRS for financial reporting by listed companies in Europe will be discussed by two key European Commission groups that are meeting in Brussels over the next several days – the EU Council of Finance Ministers and the EU Accounting Regulatory Committee: At their meeting on 15 and 16 July, the EU Council of Finance Ministers (ECOFIN) will discuss implementation measures for the IAS Regulation 1606/2002 adopted by the European Union in June 2002. The Background Paper (PDF 159k) notes that the Council will have an exchange of views on the implementation of Regulation 1606/2002 at the request of the French delegation.

France has recently circulated a paper setting out what it considers to be problematic issues with regard to IAS 32 and 39. A press conference will be held following the ECOFIN meeting.
  • The second meeting this week will be that of the EC's Accounting Regulatory Committee (ARC), which is charged under the IAS Regulation with "endorsing" IFRS for use in Europe. The ARC has already met several times and meets again on 16 July. While it has not yet made any final implementation decisions on IASB standards, the ECOFIN paper notes that "important issues have been discussed, for example the necessary high quality of translation of all IAS into all EU languages and the question of the quality of IAS 32 and 39 in their current form (which is a topic of interest, especially for banks and insurance companies)".
    • Australia Image

    DTT Australian discussion paper on first-time adoption

    14 Jul 2003

    The Australian Accounting Standards Board has embarked on a program to expose and then adopt, over the next 12 months, over 30 Australian Accounting Standards that are intended to be converged with the equivalent IFRS.

    Correction list for hyphenation

    These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.