News

PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

PCAOB adopts new auditing standards on risk assessment

05 Aug 2010

The Public Company Accounting Oversight Board (PCAOB) today adopted eight auditing standards related to an auditor's assessment of and response to audit risk.

The eight standards are:
  • Auditing Standard 8 (AS No. 8) - Audit Risk
  • Auditing Standard 9 (AS No. 9) - Audit Planning
  • Auditing Standard 10 (AS No. 10) - Supervision of the Audit Engagement
  • Auditing Standard 11 (AS No. 11) - Consideration of Materiality in Planning and Performing an Audit
  • Auditing Standard 12 (AS No. 12) - Identifying and Assessing Risks of Material Misstatement
  • Auditing Standard 13 (AS No. 13) - The Auditor's Responses to the Risks of Material Misstatement
  • Auditing Standard 14 (AS No. 14) - Evaluating Audit Results
  • Auditing Standard 15 (AS No. 15) - Audit Evidence
The standards, if approved by the Securities and Exchange Commission, will become effective for audits of fiscal periods beginning on or after December 15, 2010. Click here for more details and to view this and other news releases on the PCAOB website.

 

IFRS for SMEs (mid blue) Image

IFRS Foundation appoints members of the SME Implementation Group

05 Aug 2010

The IFRS Foundation today announced the membership of the newly created SME Implementation Group.

The mission of the Group is to support the international adoption of the IFRS for Small and Medium-sized Entities (IFRS for SMEs) and to monitor its implementation.
The Group has two main responsibilities:
  • to develop non-mandatory guidance for implementing the IFRS for SMEs in the form of questions and answers that will be made publicly available on a timely basis; and
  • to make recommendations to the IASB if and when needed regarding amendments to the IFRS for SMEs.

Although members of the group do not act as country representatives, the Trustees of the IFRS Foundation have sought to ensure a balanced geographical distribution in selecting its members. The members of the Group will serve a renewable term of two years from July 2010; the chairman is the IASB member Paul Pacter.

Click for:

 

Turkmenistan Image

Accounting and audit reforms in Turkmenistan

05 Aug 2010

According to a press release of the state news agency of Turkmenistan (THD) the President of Turkmenistan issued a Decree approving the programme for reforming the national accounting and audit system during a meeting of the Cabinet of Ministers of Turkmenistan, which was held on 9 July 2010.

The document was issued to facilitate implementing the 2011-2030 National Social and Economic Development Programme of Turkmenistan and bring the national accounting and audit system in compliance with international standards and requirements of market economy. According to the programme, national accounting and auditing standards will be developed in compliance with international standards (IFRSs, ISAs) as well as the specifics of the economic system of Turkmenistan.

In accordance with the Decree:

  • all enterprises, institutions and organisations irrespective of the form of ownership (except for banks) from January 1, 2013 are to ensure phased transition and from 1 January 2014 full transition of the national accounting and audit system to international financial reporting standards (IFRS);
  • from January 1, 2011 the banking institutions in the country are to ensure transition to international financial reporting standards (IFRS), prepare the financial reports for 2011 in compliance with international standards and ensure conducting financial statement audit on a yearly basis in compliance with international standards starting from the financial reports prepared for 2011.

The measures to be taken to implement the accounting and audit reform programme include updating and developing the relevant regulatory framework, training and advanced training specialists and introducing best international practice through cooperation with leading financial institutions of the world.

Click for:

IASB (International Accounting Standards Board) (blue) Image
EFRAG (European Financial Reporting Advisory Group) (dk green) Image

IASB/EFRAG convergence meeting

04 Aug 2010

On 26 August 2010 the International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) will meet in London.

These meetings take place twice a year and are used to discuss European ideas and input into projects on the IASB's agenda. The meeting will be open to public observation.
You can access the agenda on our August 2010 IASB/EFRAG meeting page.  We will also post Deloitte observer notes on this page as they are available
Spanish Publications Image

IFRS publication in Spanish

03 Aug 2010

We have posted the following Spanish language IFRS in Focus publication from Deloitte (Colombia).

Accounting Roundup Image

Accounting Roundup – July 2010

03 Aug 2010

We have posted the July 2010 Edition of Accounting Roundup (published by Deloitte & Touche LLP (United States). The newsletter covers United States and international accounting and auditing matters, including IASB-FASB convergence.

Topics covered in this issue include:

Contingencies

  • FASB Proposes Guidance on Expanded Disclosures for Certain Loss Contingencies
Foreign Currency Matters
  • Foreign Currency Exchange Accounting Implications of Recent Government Actions in Venezuela
  • EITF Deliberates the Accounting for Multiple Foreign Currency Exchange Rates (Issue 10-B)
Intangibles — Goodwill and Other
  • EITF Deliberates How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test (Issue 10-A)
Plan Accounting — Defined Benefit Pension Plans
  • FASB Ratifies Consensus-for-Exposure on Accounting for Participant Loans in Employee Benefit Plan Financial Statements (Issue 10-C)
Presentation of Financial Statements
  • FASB and IASB Propose Sweeping Changes to Financial Statement Presentation
Receivables
  • FASB Enhances Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses
Industry Accounting
  • EITF Reaches Final Consensus on Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts (Issue 09-G)
  • EITF Deliberates Revenue Recognition for Health Care Entities (Issue 09-H)
  • EITF Reaches Final Consensus on Presentation of Insurance Claims and Related Insurance Recoveries for Health Care Entities (Issue 09-K)
  • EITF Reaches Final Consensus on Measuring Charity Care for Disclosure for Health Care Entities (Issue 09-L)
  • EITF Reaches Consensus-for-Exposure on Accounting for Certain Fees Associated With Recently Enacted Health Care Legislation (Issue 10-D)
Other Accounting
  • FASB Issues "Pre-Release" of 2011 U.S. GAAP Reporting Taxonomy for Public View
  • AICPA Issues Various Technical Practice Aids
  • Dodd-Frank Wall Street Reform and Consumer Protection Act Signed Into Law
Other SEC Matters
  • SEC Issues Proposed Rule on Mutual Fund Distribution Fees
  • SEC Issues C&DIs on Use of Credit Ratings
  • SEC Updates Financial Reporting Manual
  • SEC Publishes Concept Release on the U.S. Proxy System
  • CAQ Releases Highlights of SEC Regulations Committee's April 6 Meeting
Other Auditing
  • ASB Issues Interpretation 8 of AT Section 101
  • ASB Issues Proposed SAS to Revise Applicability of SAS 116
  • ASB Issues Proposed SAS on Letters for Underwriters and Certain Other Requesting Parties
  • ASB Issues Proposed SAS on Interim Financial Information
  • ASB Issues Proposed SSARS on the Applicability of SSARSs
  • PCAOB Issues Proposed Standard on Audit Confirmations
  • PCAOB Issues Staff Practice Alert on Using the Work of Other Auditors and Engaging Assistants From Outside the Firm
GASB Matters
  • GASB Issues Guidelines for Reporting of SEA Performance Information
Click for July 2010 Accounting Roundup (PDF 379k). You will find past issues of Accounting Roundup Here.

 

2010aug.gif Image

Notes from special August IASB meeting

03 Aug 2010

The IASB met in London on 3 August 2010 for a special meeting related to the Financial Instruments project.

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

The IASB has tentatively scheduled a further special meeting on Tuesday 24 August 2010 to continue discussions on the Financial Instruments project.

IIRC (International Integrated Reporting Committee) (green) Image

International Integrated Reporting Committee (IIRC) formed to pursue sustainability accounting framework

03 Aug 2010

The Prince's Accounting for Sustainability Project (A4S) and the Global Reporting Initiative (GRI) have announced the formation of the International Integrated Reporting Committee (IIRC). The IIRC aims to create a globally accepted framework for accounting for sustainability, bringing together financial, environmental, social and governance information in an "integrated" format.

The IIRC brings together a cross section of representatives from civil society and the corporate, accounting, securities, regulatory, NGO, IGO and standard-setting sectors. It comprises a Steering Committee and a Working Group. The Steering Committee is chaired by Sir Michael Peat, Principal Private Secretary to TRH The Prince of Wales and the Duchess of Cornwall. Membership of the IIRC Steering Committee includes Sir David Tweedie (IASB Chairman), Robert H. Herz (FASB Chairman), Jane Diplock, (Chairperson, IOSCO Executive Committee), Robert Bunting (IFAC President), Jim Quigley (Chief Executive Officer of Deloitte), and many others.

More information about the IIRC follows:

Purpose of the IIRC

The IIRC is being created to respond to the need for a concise, clear, comprehensive and comparable integrated reporting framework structured around the organisation's strategic objectives, its governance and business model and integrating both material financial and non-financial information.

The objectives for an integrated reporting framework are to:

  • support the information needs of long-term investors, by showing the broader and longer-term consequences of decision-making
  • reflect the interconnections between environmental, social, governance and financial factors in decisions that affect long-term performance and condition, making clear the link between sustainability and economic value
  • provide the necessary framework for environmental and social factors to be taken into account systematically in reporting and decision-making
  • rebalance performance metrics away from an undue emphasis on short term financial performance
  • bring reporting closer to the information used by management to run the business on a day-to-day basis.

Role of the IIRC

The role of the IIRC is to:

  • raise awareness of this issue and develop a consensus among governments, listing authorities, business, investors, accounting bodies and standard setters for the best way to address it
  • develop an overarching integrated reporting framework setting out the scope of integrated reporting and its key components
  • identify priority areas where additional work is needed and provide a plan for development
  • consider whether standards in this area should be voluntary or mandatory and facilitate collaboration between standard-setters and convergence in the standards needed to underpin integrated reporting
  • promote the adoption of integrated reporting by relevant regulators and report preparers.

Click for press release (PDF 66k). The IIRC website can be accessed at www.integratedreporting.org

European Union (old) Image

CESR publishes report on trends, risks and vulnerabilities in financial markets

03 Aug 2010

The Committee of European Securities Regulators (CESR) has published a report on trends risks, and vulnerabilities that are directly relevant to securities markets regulators. Over the last decades, financial markets have been transformed by the rapid development of new financial instruments, the rise of new categories of key market participants, and a supportive technological environment. More recently, fundamental areas of the financial sectors have experienced a severe crisis. Going forward, CESR would like to contribute more to the understanding of these trends and risks and communicate its insights to the general public through regular reports.

The following findings, which are supported by thirteen detailed key trends, risks and vulnerabilities, are highlighted in the report:

  • In light of some global positive signs [...] a tendency to downplay the severity of the current crisis may emerge, accompanied by a reluctance to recognize the need for financial reforms. There is therefore a risk that urgently required regulatory measures are neither fully considered nor implemented in an appropriate way.
  • In fact, there are non negligible risks of a new deterioration in securities markets ahead [...]. [However, an] improvement has apparently been fuelled by the implementation of tough fiscal adjustment programmes in most European countries and the authorities' commitment to carry out stress tests in a significant number of European financial institutions and disclose the results.
  • The persistency of severe strains in the financial system was particularly evident in the fact that banks were still relying on the ECB's deposit facility for amounts which significantly exceed those observed in the aftermath of the Lehman default.
  • The financing requirements of countries and companies may become an issue in the near term.

Click for press release (PDF 120k). The report itself is available on CESR's website (PDF 3,310k). We have more information on the financial crisis on our credit crunch page.

Spanish Publications Image

IFRS publication in Spanish

02 Aug 2010

We have posted the following Spanish language IFRS in Focus publication from Deloitte (Colombia).

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.