News

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Global tax implications of IFRSs in Spanish

21 Oct 2008

Deloitte (Colombia) has published Implicaciones tributarias globales de los Estándares Internacionales de Información Financiera.

Click to view Implicaciones tributarias globales de los Estándares Internacionales de Información Financiera (PDF 2,447k).
This is a translation of the Deloitte English language publication Global Tax Implications of IFRSs.

 

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Joint letter to US SEC supporting fair value measurements

21 Oct 2008

On 15 October 2008 the Center for Audit Quality, CFA Institute, Consumer Federation of America, and the Council of Institutional Investors issued a Joint Letter to US SEC Chairman Christopher Cox urging the SEC not to override the fair value guidance recently issued by the Financial Accounting Standards Board, FSP FAS 157-3 Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active (FSP).

The letter states:

A move by the SEC to suspend fair value accounting would be a disservice to the capital markets, would be inconsistent with the views of investors, would harm the credibility and independence of the standards setting process, and would run counter to fundamental notice and comment principles. With third quarter financial statements now in process and year-end 2008 imminent, such a change could jeopardize already-fragile investor confidence.

No one disputes that these are trying economic times. However, the current crisis of liquidity, credit, and confidence was not caused by fair value accounting; rather, sound accounting principles helped expose the problem. Fair value accounting with robust disclosures provides more accurate, timely, and comparable information to investors than amounts that would be reported under other alternative accounting approaches.
Click to view the Joint Letter to US SEC Chairman Christopher Cox (PDF 60k).
Click to go to our comprehensive page of Credit Crunch Information.
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US SEC to hold roundtable on mark-to-market

20 Oct 2008

The US Securities and Exchange Commission will host the first of two roundtables on 'mark-to-market' accounting and current market conditions on 29 October 2008, at 9:00 am EDT.

The roundtables will provide input to the SEC as part of a Congressionally mandated study pursuant to the Emergency Economic Stabilization Act of 2008. The date and time of the second roundtable will be announced at a later date. The roundtable will consist of two panels. The first panel will discuss the interaction between mark-to-market accounting for financial institutions and the current economic situation. The second panel will focus on potential improvements to the current accounting model and implications of possible changes. The panels will include investors, accountants, standard setters, regulators, business leaders, and other interested parties. Representatives from the FASB, IASB, and PCAOB will be present as observers. The panel discussions will focus on:
  • The effects of mark-to-market accounting on financial reporting by financial institutions.
  • Potential market behavior effects from mark-to-market accounting.
  • The usefulness of mark-to-market accounting to investors and regulators.
  • Aspects of the current accounting standards that can be improved.
Click for SEC Press Release (PDF 48k).

 

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Agenda project pages updated for October meeting

19 Oct 2008

We have updated the following agenda project pages to reflect the discussions and decisions at the 13-17 October 2008 meeting of the International Accounting Standards Board.

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Credit crisis audit considerations

19 Oct 2008

The US Public Company Accounting Oversight Board will meet with its Standing Advisory Group on 22-23 October 2008 in Washington.

One of the issues that the advisory group will discuss is audit considerations relating to the current economic environment. The agenda paper for this topic discusses possible considerations in upcoming audits, including:
  • Fair value measurements
  • Other than temporary impairment
  • Credit derivatives
  • Going concern
  • Pensions/other postretirement benefits
  • Receivables
  • Inventory
  • Other asset impairments
  • Disclosures

Click to download the agenda paper for this topic: Emerging Issue - Audit Considerations in the Current Economic Environment (PDF 177k).

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Notes from day 5 of the October 2008 IASB meeting

18 Oct 2008

The International Accounting Standards Board held its regular October 2008 meeting at the IASB's offices, 30 Cannon Street, London on Monday to Friday 13-17 October 2008. The meeting was open to public observation and was being webcast.

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

 

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Joint IASB-FASB advisory group on credit crisis

18 Oct 2008

The International Accounting Standards Board and the US Financial Accounting Standards Board (FASB) will create a global advisory group of regulators, preparers, auditors, investors, and other users of financial statements to help ensure that reporting issues arising from the global economic crisis are considered in an internationally co-ordinated manner.

The two Boards will be Meeting jointly on 20 and 21 October, at which time they will discuss the initial topics for the advisory group to consider. Click for Press Release (PDF 100k).

 

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Keidanren wants IFRSs in Japan

17 Oct 2008

Nippon Keidanren (the Japan Business Federation) has issued a Statement on the Future Directions of Accounting Standards in Japan in which they urge the adoption of IFRSs in Japan.

The Keidanren proposes that IFRSs be required in the consolidated financial statements of listed companies after a three-year phase-in period. Unlisted companies, and those listed companies that do not prepare consolidated financial statements, would be permitted to use IFRSs. The Keidanren statement points out that Japan is 'the only country among the major capital markets which has not officially announced the adoption of IFRS'.

Excerpt from Statement by the Keidanren – Proposal Towards Adopting IFRS:

A. Publish a Roadmap Including Adoption of IFRS Having had the U.S. announcement this year, Japan became the only country among the major capital markets, which has not officially announced the adoption of IFRS. Some of the Japanese companies have already begun the study of IFRS preparing for future adoption. Japan should accelerate the discussion of the future direction of accounting standards and set out a concrete Roadmap as soon as possible, indicating the adoption of IFRS. It is important to mention in the Roadmap the necessary conditions in adopting IFRS, such as, checking the direction of discussions of mid-long term projects at the IASB, adequate governance of the IASB, and progress in the ASBJ-IASB convergence project.

B. Scope of Application of IFRS For the near term, it is appropriate to permit the use of IFRS for listed companies as an option. In the future, because we think it is necessary to have a single set of accounting standards, for the purpose of securing reliability and convenience for the investors, Japan should require all listed companies to apply IFRS for preparing their financial statements. In that case, there should be, at least, three years of preparation period. It is also important make decisions taking into account to maintain and heighten Japan's international presence.

Click to view Statement on the Future Directions of Accounting Standards in Japan (PDF 23k)

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Notes from day 4 of the October 2008 IASB meeting

17 Oct 2008

The International Accounting Standards Board is holding its regular October 2008 meeting at the IASB's offices, 30 Cannon Street, London on Monday to Friday 13-17 October 2008. The meeting is open to public observation and is being webcast.

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

 

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Buckle Up (On the Road to IFRS in the US)

16 Oct 2008

Deloitte (United States) has published Buckle Up (On the Road to IFRS).

International Financial Reporting Standards have quickly become a priority for US companies now that the Securities and Exchange Commission (SEC) has proposed an IFRS road map and rules changes. This book, the eleventh in our 'Straight Talk' series, helps executives understand the implications of IFRS and their role in addressing the associated changes. The publication also offers practical suggestions to help companies navigate through these important issues. "Today's decisions will determine the direction and speed of your transition. It can be a smooth ride, but could also become a roller coaster or a train wreck." Click to download Buckle Up (On the Road to IFRS) (PDF 3,661k).

 

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