The site hosting company has advised us that problems are likely to continue for a while.

The International Valuation Standards Committee has posted the following Exposure Drafts of valuation guidance on the IVSC Website:

• Valuation of Agricultural and Rural Properties
• Reviewing Valuations
• Personal Property
• Valuation of Mortgage Portfolios for Securitisation Purposes.

Click for Information about IVSC.

Disaggregation would entail separate disclosure of categories of periodic costs (current service costs; interest cost; the expected return on assets; actuarial gains and losses) and non-periodic costs (past service costs; gains and losses on settlements and curtailments). AIMR represents 58,000 investment professionals in over 100 countries. Click for Link to AIMR Letter.

and the U.K. Using data for nearly 9,000 companies in 31 countries from 1990 to 1999, the researchers identified measures of the extent to which insiders can manage the 'accounting' component of reported earnings to smooth or mask the firm's economic performance -- for the insiders' own benefit. The study, titled "Investor Protection and Earnings Management: An International Comparison", highlights an important link between legal institutions and the quality of accounting earnings reported to market participants. To download the latest version of the paper, Click Here.

However they are split over which standards, with investors from Western Europe, Eastern Europe, Africa, and Asia favouring IAS and those from North America and Latin America favouring US GAAP. The study also found that 'accounting disclosure' is the single most significant factor affecting their investment decisions. Another interesting finding: investors strongly favour expensing stock options, with over 90% supporting such a change in all parts of the world except North America, where it is 67% in favour.

• Click for Press Release (PDF 11k)
• You can download the full report at the McKinsey Website.

Click to Download (PDF 302k). Among other conclusions: "The Enron Board of Directors knowingly allowed Enron to engage in high risk accounting practices."

The FRC proposal, which is subject to the Government's support for necessary amendments of the Corporations Act, would mean that, from 1 January 2005, the accounting standards applicable to reporting entities under the Act will be the standards issued by the International Accounting Standards Board. After that date, audit reports will refer to companies' compliance with IASB standards. Click for:

• FRC Bulletin (PDF 15k)
• Link to FRC Website
• IASB Press Release (PDF 21k)

Pitt summarised the Commission's key initiatives in the area of accounting and disclosure as follows:

• A proposed framework for oversight of the accounting profession
• CEO and CFO certification of financial statements
• Actively assisting FASB in retaining its independence and addressing key issues on a more timely basis and in a way that will better adapt to changing business environments and emphasise overall accuracy
• Requiring companies to discuss the effects of their critical accounting policies
• Reminders to companies to disclose off-balance sheet financing arrangements, and about the appropriate use of, and limitations on, pro forma financial information
• Enforcement actions underscoring that technical compliance with GAAP, without more, can still produce insufficient disclosure
• Accelerated reporting of insider transactions, including company loans
• Tripling the number of items that companies must report currently, and to accelerate those disclosures
• Accelerating the deadline for annual reports from 90 to 60 days, and quarterly reports from 45 to 30 days.

IASB's exposure draft on Amendments to IAS 32 and IAS 39 may now be Downloaded without charge; comment deadline is 14 October 2002. The ED on Improvements is also available at this same link, comment deadline 16 September 2002.

IFRIC has announced the Agenda for its upcoming meeting on 23-24 July 2002.