News

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Propuesta para un Proyecto de NIIF para las PyME

27 Apr 2007

The IASB has published the Spanish translation of the Exposure Draft of a Proposed International Financial Reporting Standard for Small and Medium-sized Entities – Propuesta para un Proyecto de NIIF para Pequeñas y Medianas Entidades.

Electronic copies of the Exposure Draft may be downloaded from IASB's Website (until the comment period closes). The ED, Implementation Guidance, and Basis for Conclusions have all been translated. Hard copies are available soon to purchase from the IASCF for £23 each. Comments are due by 1 October 2007. French and German translations are forthcoming.
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European Parliament resolution opposing IFRS 8

27 Apr 2007

The Economic and Monetary Affairs Committee of the European Parliament has proposed a Parliamentary resolution that expresses significant concerns about the adoption of IFRS 8 Operating Segments in Europe.

The resolution also:
  • calls on the European Commission to urgently carry out an in-depth impact assessment before endorsing the standard; and
  • states that, should the Commission fail to carry out the assessment, Parliament will carry out its own impact assessment.

Among the Committee's concerns about IFRS 8 are the following:

  • Changing from IAS 14 to IFRS 8 is a move "from a regime which clearly defines how listed EU companies should define and report on segments to an approach that permits management itself to define operating segments as management finds suitable and which furthermore requires a lower level of disclosure".
  • IFRS 8 should, but does not, include a defined measure of segment profit or loss, as IAS 14 does.
  • IFRS 8 does not require companies to use IFRS measures in their disclosures about operating segments, which may have a negative impact on the comparability of financial information and thus may pose difficulties for users (for example, investors).
  • Adopting IFRS 8 would "import into EU law an alien standard [SFAS 131] without having conducted any impact assessment".
Click to download the Draft Resolution (PDF 89k) proposed by the Economic and Monetary Affairs Committee of the European Parliament. Voting on the resolution by was postponed until the Parliament's September meeting.
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UK-US will share information on application of IFRSs

26 Apr 2007

The United Kingdom Financial Reporting Council (FRC), the US Securities and Exchange Commission (SEC), and the UK Financial Services Authority (FSA) have signed a protocol for implementing the Work Plan that was agreed in August 2006 between the SEC and the Committee of European Securities Regulators (CESR) for sharing information on the application of International Financial Reporting Standards by issuers listed in the UK and the US.

The staff of the FRC and the SEC will share, on a confidential basis, information on the application of IFRSs in the financial statements of issuers listed in the UK and registered with the SEC. The FRC is charged with reviewing issuers' published financial statements in the UK. Click for:
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Notes from the joint IASB-FASB meeting April 2007

25 Apr 2007

The International Accounting Standards Board and the US Financial Accounting Standards Board held a joint meeting on Monday and Tuesday 23-24 April 2007 in London.

Click here for the Preliminary and Unofficial Notes Taken by Deloitte Observers at the meeting. Among other things, the Boards reached agreement on a revised standard on business combinations.
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IFRSs in your Pocket 2007

25 Apr 2007

We have published the sixth edition of our popular guide to IFRSs – IFRSs In Your Pocket 2007.

This 100-page guide  includes information about:
  • IASB structure and contact details.
  • Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada.
  • Summaries of each IASB Standard (through IFRS 8 and the amendment to IAS 23) and Interpretation (through IFRIC 12), as well as the Framework and the Preface to IFRSs.
  • Background and tentative decisions on all current IASB projects.
  • IASC and IASB chronology.
  • Update on IFRS-US GAAP convergence.
  • Other useful IASB-related information.
We are pleased to grant permission for accounting educators and students to print copies of the PDF file for educational purposes. Please contact your local Deloitte practice office to request a printed copy. You will find Links to our Many Other IFRS Publications here.
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US SEC announces next steps re IFRSs

25 Apr 2007

The United States Securities and Exchange Commission has announced two steps it intends to take relating to the acceptance of International Financial Reporting Standards (IFRSs).

  • The Commission plans to issue a Proposing Release this summer requesting comments on proposed changes to the Commission's rules to allow the use of IFRSs in financial reports filed by foreign private issuers registered with the Commission. Foreign private issuers would be given a choice between IFRSs and US GAAP. The proposal would address eliminating the current requirement that IFRS filers include a reconciliation to US GAAP amounts beginning in 2009.
  • In addition, the Commission plans a Concept Release relating to issues surrounding the possibility of treating US and foreign issuers similarly in this respect by also providing US issuers the alternative to use IFRSs.
Comments on both would be due in the autumn. Click for SEC Press Release (PDF 34k).
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US domestic companies use IFRSs?

24 Apr 2007

In his remarks earlier this month at the 32nd Annual Conference of the International Organization of Securities Commissions (IOSCO) in Mumbai, US SEC Commissioner Roel Campos spoke about the possibility that the SEC would permit or even require US domestic companies to use IFRSs.

He also expressed some concern that most of the foreign SEC registrants that had been expected to submit IFRS financial statements for 2005 had, instead, submitted financial statements that are identified as conforming to "home country adaptation of IFRSs". Click to download the Remarks of Commissioner Compos (PDF 62k). Presented below are excerpts relating to both matters:

US companies using IFRSs?

The good news is that the SEC is absolutely committed to doing what we can to facilitate meeting the goals of roadmap. To reiterate my theme, I think there has been increased focus on the roadmap given the fact that globalization issues have moved to the forefront over the past year. From the standpoint of the US, we hosted an IFRS roadmap roundtable at our SEC headquarters a few weeks ago. It was designed in large part to raise the profile of the roadmap in the US. At the roundtable, our Chairman Chris Cox and EU Internal Markets Commissioner Charlie McCreevy both affirmed their commitment to eliminating the need for reconciliation between IFRS and US GAAP. So, the US is serious about the roadmap and the timeline, and we're trying to make it work.

I should also point out some provocative new ideas that were bandied about at the roundtable. These ideas definitely moved beyond the main topic about when the SEC would accept IFRS financial statements without reconciliation. In particular, there was a discussion about whether US companies – not just foreign private issuers – should be given a choice to use IFRS or US GAAP. Given that the roadmap contemplates that foreign private issuers have such a choice, it certainly raises a legitimate question about whether US companies should also have that choice. Interestingly, when the question was put to Don Nicolaisen, who was spurred on by Chairman Cox, he responded by stating that the SEC should consider requiring that all US companies use the same standard as foreign companies, and not merely giving them a choice.

Conforming to home country adaptations of IFRSs

In many cases, financial statements prepared in accordance with home country adaptation of IFRS did not also contain a reference by both the company and its auditor that the financial statements also complied with IFRS in the form issued by the IASB. Indeed, the roadmap contemplated that we would see filings of financial statements prepared using IFRS as promulgated by the IASB. However, various jurisdictions have not accepted IFRS exactly as promulgated by the IASB, and have instead made various changes thereto. Consequently, we have seen filings containing financial statements based upon national jurisdictional adaptations of IFRS. These financial statements certainly fit within the SEC's filing requirements, but without the reference to IFRS as promulgated by the IASB, they do not appear to be financial statements that fit under the one set of global accounting standards that we wrote about in the roadmap.
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Special newsletter on borrowing cost amendments

24 Apr 2007

Deloitte's IFRS Global Office has published a special edition of our IAS Plus Newsletter titled IASB Issues Revised Standard on Borrowing Costs.

On 29 March 2007 the IASB amended IAS 23 Borrowing Costs to eliminate the option to recognise all borrowing costs immediately as an expense. To the extent that borrowing costs relate to the acquisition, construction, or production of a qualifying asset, the revised IAS 23 requires that they be capitalised as part of the cost of that asset. All other borrowing costs should be expensed as incurred. The amendments eliminate the main difference in the fundamental accounting recognition principle between IFRSs and US GAAP in this area, although significant measurement differences remain. The revised Standard applies to borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after 1 January 2009. Earlier application is permitted. 
Click for Newsletter.
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Reminder about upcoming comment deadline

23 Apr 2007

We remind you that the deadline is 27 April 2007 for responding to the Exposure Draft: Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards.

The Exposure Draft proposes to allow a parent to use a 'deemed cost' to measure its investment in subsidiaries when it first adopts IFRSs. This deemed cost can be determined by reference to the parent's investment in the net assets of the subsidiary or the fair value of the parent's investment. In addition, the proposals would alleviate the need to restate the pre-acquisition accumulated profits of the subsidiary in accordance with IFRSs for the purposes of classifying dividends.
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IASB/IASCF budget proposal for 2008 is £16.0 million

23 Apr 2007

The International Accounting Standards Committee Foundation, under which the IASB operates, has published its draft budget for calendar year 2008.

Part A of the budget statement describes the IASB's progress to date.
Part B describes the principles underlying the 2008 budget. The proposed 2008 budget calls for total spending (IASB and IASCF) of £16.0 million (compares to a budget of £14.9 million for 2007 and estimated actual of £13.4 million for 2006). The budget calls for 45 full-time equivalent technical staff persons for 2008 (compares to 40 for 2007 and 32.5 for 2006). Click to Download the Draft Budget (PDF 132k) from the IASB website.

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