News

Accounting experts debunk IFRS myths

21 Oct 2010

CFO.com recently published an article that provides some interesting perspectives on IFRS.

The article identifies seven misconceptions about IFRS, many of which deal with convergence and the adoption of IFRS in the United States. A group of IFRS experts debunk those misconceptions. You can access this article here (link to CFO.com website).

Monitoring Board – IFRS Foundation Trustees Meeting

21 Oct 2010

On Thursday 28 October 2010, the Monitoring Board and IFRS Foundation Trustees will meet in New York.

Topics to be discussed are:

Report from the Monitoring Board on recent activities
Report from the IFRS Foundation on recent activities
Budget 2011 and financing strategy
Strategy planning post completion MoU projects

The meeting is taking place between 2:30 - 4:00pm New York time (7:30 - 9:00pm London time) and will be webcast. More information and registration: click here (link to IASB website).

Deadline reminder – EDs on Revenue and Removal of Fixed Dates

21 Oct 2010

We remind you that comments on the Exposure Drafts Revenue from Contracts with Customers and Removal of Fixed Dates for First-time Adopters are due on 22 October 2010 and 27 October 2010, respectively.

The ED on revenue aims at improving financial reporting of revenue from contracts with customers and related costs. If adopted, the proposal would create a single revenue recognition standard for International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP) that would be applied across various industries and capital markets.

The ED on fixed dates would amend IFRS 1 by replacing references to a fixed transition date of 1 January 2004' with the date of transition to IFRSs'. As a result, entities adopting IFRSs for the first time would not have to restate derecognition transactions that occurred before the date of transition to IFRSs.

New Heads Up on effective dates of FASB projects

21 Oct 2010

This Heads Up discusses the FASB's recently issued discussion paper (DP), Effective Dates and Transition Methods.

The objective of the DP is to obtain feedback from the FASB's stakeholders on (1) the time and effort they would need to adopt several new and significant accounting and reporting standards and (2) the dates those new standards should be effective.

On 19 October, the FASB and IASB published documents seeking views on when new financial reporting standards resulting primarily from their work to improve and achieve convergence of International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP) should become effective.

Click to download:

Heads Up newsletter Input Sought on Transition and Effective Dates for Certain FASB Projects (PDF 98k)
Access to the discussion paper (link to FASB website)
Our previous story on FASB/IASB documents issued

Notes from Day 2 of the October IASB meeting

20 Oct 2010

The IASB met in London on Wednesday 20 October for the second day of its regular monthly meeting.

The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

AICPA IFRS Readiness Survey 2010

20 Oct 2010

The American Institute of Certified Public Accountants (AICPA) has published its IFRS Readiness Survey 2010 showing that the movement within the U.S. accounting profession toward IFRS has been on hold since May 2010.

The IFRS Readiness Survey is a semi-annual survey of AICPA members that is used to gauge the level of knowledge members have about IFRS, their knowledge needs and the progress their organizations are making towards implementing IFRS.

According to the survey, basic familiarity with IFRS has remained stable since May 2010 at 45% and the number of companies and firms actively preparing for adoption or ready for adoption has remained about the same at 13.5%. 38% of respondents indicated they are delaying implementation while waiting for SEC action.

The largest proportion of respondents support adoption of IFRS, and a majority of members believe a 2015-2016 adoption target would allow enough time for implementation, if the SEC decides in 2011 to require IFRS at a future time. Last week's AICPA comment letter to the SEC on IFRS adoption reflects this view.

Click for AICPA press release and access to the IFRS Readiness Survey 2010 (links to AICPA website).

UK survey on narrative reporting

20 Oct 2010

Deloitte (United Kingdom) has released a new publication entitled Swimming in words, the latest annual survey of narrative reporting in the United Kingdom.

The survey analyses the narrative reporting of 130 listed companies, split into two categories, being investment trusts and other companies. It includes a review of:

how compliance with the disclosure requirements of the UK Companies Act 2006, the Listing Rules, the Disclosure and Transparency Rules and the Combined Code varied
the extent to which companies have adopted the UK Financial Reporting Council's revised guidance on going concern and liquidity
the use of the UK Accounting Standards Board's Reporting Statement: Operating and Financial Review.

The UK Department for Business, Innovation and Skills (BIS) issued a consultation paper on the future of narrative reporting in the United Kingdom in August 2010. The consultation period closed on 19 October 2010 and Deloitte has provided the results of the 2010 survey to BIS.

Main findings

the average length of the annual reports of UK listed companies is now over 100 pages for the first time (at 101 pages), more than double the average length of 44 pages recorded in 1996 when the surveys commenced
93%, 94% and 90% of corporates provided the required information about the environment, employees, and social and community issues respectively. These percentages were a significant improvement on the 2009 equivalents of 87%, 89% and 70%
90% of companies clearly identified key performance indicators, an increase from 84% in 2009. The average number of key performance indicators was seven
4% of companies (2009: 7%) had received a modified audit report relating to going concern. While it is positive that this number has decreased, more companies named the state of the economy as a key business risk. Three quarters of companies did so in 2010 compared with 63% of companies in 2009
35% (2009: 32%) of companies fully complied with the UK's Combined Code on Corporate Governance.

Click for Swimming in words - Surveying narrative reporting in annual reports (PDF 6,619k).

Notes from Day 1 of the October IASB meeting

20 Oct 2010

The IASB met in London on Tuesday 19 October for the first day of its regular monthly meeting.

The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):

Effective Dates And Transition
Annual Improvements to IFRSs – 2009-2011
Extractive Activities – discussion of comments received on the Discussion Paper
Other Comprehensive Income – comment letter summary
Financial Instruments: Hedge Accounting
- Interaction between hedge accounting and the own use' scope exception
- Hedged items: risk components
- Disclosures
Leases – update on outreach activities.

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

FASB webcast on insurance contracts

20 Oct 2010

The FASB has released a recorded webcast ('webinar') on the FASB's recently issued Discussion Paper Preliminary Views on Insurance Contracts.

The webinar discusses why the FASB issued the discussion paper and discusses how and why the FASB's preliminary view on certain accounting issues differs from the IASB's exposure draft on insurance contracts.