News

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Australian Alert on IASB debt-equity proposals

28 Aug 2006

Deloitte (Australia) has published Accounting Alert 2006/08 Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation – Proposed Amendments to AASB 132.

Alert 2006/08 explores the IASB's proposals to amend the debt versus equity distinction in IAS 32 in relation to puttable instruments and obligations on liquidation.

In our view, the proposals lack sufficient scope to address the common investor confusion arising in the Australian context surrounding unit trusts, co-operatives and similar entities. Many of these entities may still classify their 'equity' as a liability, even if the proposals go ahead.

Affected entities have until 22 September 2006 to make a submission to the Australian Accounting Standards Board. Click to:
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IFRS presentation and disclosure checklist 2006

28 Aug 2006

On 20 August 2006, we posted Deloitte's new for the year ended 31 December 2006 in PDF format (PDF 1,181k).

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Agenda topics for IFRIC meeting 7-8 September 2006

26 Aug 2006

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 7 September and Friday 8 September 2006. The meeting agenda is set out below.7-8 September 2006, London Thursday 7 September 2006 (10:00 - 18:00) Opening remarks and administrative matters Service Concession Arrangements IAS 18 Revenue – Real Estate Sales IFRIC D17: IFRS 2 – Group and Treasury Share Transactions IFRS 2 Share-based Payment – Employee benefit trusts in the individual or separate financial statements of the sponsor Friday 8 September 2006 (09:00 - 12:30) IAS 18 Revenue – Upfront revenue recognition by a fund manager IAS 38 Intangible Assets – Update on accounting for catalogues and other marketing costs Recommendations regarding requests for IFRIC agenda items IAS 39 Financial Instruments: Recognition and Measurement – Testing of hedge effectiveness on a cumulative basis IFRS 7 Financial Instruments: Disclosures – Presentation of 'net finance costs' on the face of the income statement IAS 38 Intangible Assets – Classification of SIM cards IAS 38 Intangible Assets – Adoption of IAS 38 (rev 2004) IAS 11 Construction Contracts – Allocation of profit in unsegmented contracts Agenda Committee update .

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 7 September and Friday 8 September 2006. The meeting agenda is set out below.

7-8 September 2006, London Thursday 7 September 2006 (10:00 - 18:00)

Friday 8 September 2006 (09:00 - 12:30)
  • IAS 18 Revenue – Upfront revenue recognition by a fund manager
  • IAS 38 Intangible Assets – Update on accounting for catalogues and other marketing costs
  • Recommendations regarding requests for IFRIC agenda items
    • IAS 39 Financial Instruments: Recognition and Measurement – Testing of hedge effectiveness on a cumulative basis
    • IFRS 7 Financial Instruments: Disclosures – Presentation of 'net finance costs' on the face of the income statement
    • IAS 38 Intangible Assets – Classification of SIM cards
    • IAS 38 Intangible Assets – Adoption of IAS 38 (rev 2004)
    • IAS 11 Construction Contracts – Allocation of profit in unsegmented contracts
  • Agenda Committee update
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Nearly 700,000 e-learning downloads from IAS Plus

26 Aug 2006

As of 23 August 2006, -->693,777 Deloitte IFRS e-learning modules have been downloaded --> from IAS Plus by people in over 150 jurisdictions.

Deloitte's IFRS e-learning was launched at the end of January 2004. Many of the downloaded modules have multiple users because organisations are permitted to install them on their own servers for the internal use of their employees or students. In addition, hundreds of thousands of additional modules have been completed online and offline by Deloitte staff. You can always access IFRS e-learning without charge by clicking on the light bulb icon on the IASPlus home page. Thirty-five modules are now available covering virtually all IFRSs. Because of the complexity of accounting for financial instruments, there are three modules on IAS 32 and IAS 39 (a general introduction and special modules on hedge accounting and derecognition).
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IFRIC proposes guidance on pension accounting

25 Aug 2006

The International Financial Reporting Interpretations Committee (IFRIC) has published draft Interpretation D19 'IAS 19 – The Asset Ceiling: Availability of Economic Benefits and Minimum Funding Requirements'.

IFRIC D19 would clarify the interaction between statutory or contractual minimum funding requirements and the requirements of IAS 19 Employee Benefits.

The proposals clarify how to determine the limit on a pension plan asset that may be recognised in an employer's balance sheet as well as how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement.

IFRIC D19 may be downloaded from IASB's Website. Comment deadline is 31 October 2006. Click for Press Release (PDF 64k).

 

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EFRAG is forming a user advisory panel

24 Aug 2006

The European Financial Reporting Advisory Group (EFRAG) is seeking candidates for membership on a new User Panel that it plans to form.

The panel will be asked to provide input from the financial statement user community on draft EFRAG comment letters, endorsement advice to the European Commission, and other EFRAG activities. The User Panel will meet for one day every three months in Brussels. Candidates for the User Panel should be actively working as users of financial statements, including financial analysts and investors taking investment decisions. Applications should be sent to EFRAG at info@efrag.org no later than 20 September 2006. Click for User Panel Terms of Reference (PDF 27k).
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Where do IAS Plus visitors come from?

23 Aug 2006

Cumulatively, since we started tracking in May 2003, the top 10 jurisdictions from which visitors to IAS Plus come are United Kingdom, United States, Germany, Hong Kong, China, France, Australia, Malaysia, Italy, and The Netherlands.

An interesting phenomenon is the gradual shift in visitors away from Europe and more toward Asia-Pacific, where IFRSs are gradually being adopted. For example:
  • In July 2006 the top 10 visitor jurisdictions included Hong Kong, China, and Malaysia. None of those three was in the top 10 in July 2004.
  • In July 2004, the top 10 referrers included Google France and Google Italy. By July 2006 those two countries were replaced by Google Philippines and Google Malaysia. And Google Canada has replaced MSN: Canada has announced a plan to replace current Canadian GAAP with IFRSs.
Click here to view a Cumulative Map of Where our Visitors Have Come From over the past three years (PDF 43k).
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New IFAC paper on internal controls

23 Aug 2006

The International Federation of Accountants has published a paper on Internal Controls – A Review of Current Developments.

The paper, developed by IFAC's Professional Accountants in Business (PAIB) Committee, summarises key internal control frameworks, highlights recent legislative and other initiatives, and discusses the role of internal control in enhancing corporate governance.

"The paper finds that current views on internal controls support a principles- and market-based approach in which organizations make a commitment to develop internal control systems particular to their own specific internal and external environments. It also identifies the importance of the tone at the top and the culture and ethical framework throughout the organization to the effective implementation of an internal control system."

The paper may be downloaded without charge (registration required) from IFAC's Website. Click for Press Release (PDF 80k, 19 pages).
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Two publications from IFAC education board

22 Aug 2006

IFAC's International Accounting Education Standards Board has published two documents: Proposed new guidance outlining the knowledge and skills necessary to prepare professional accountants to perform competently in one or more information technology roles.

Those roles could include:
  • Assurance provider and evaluator, such as an internal financial or operational auditor or evaluator of information systems;
  • Manager of information systems, such as a knowledge manager or data center manager; and
  • Designer of business systems, alone or as part of team, such as a knowledge engineer, external advisor or consultant.
The proposal is in the form of an exposure draft entitled Information Technology for Professional Accountants. Click for Press Release (PDF 84k)
  • An information paper on Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs. The paper will serve as the basis for the development of an International Education Practice Statement on this topic. Click for Press Release (PDF 82k).
  • Both of the foregoing press releases have hyperlinks so you can obtain the underlying document from IFAC.
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    EU amends 4th and 7th directives

    20 Aug 2006

    > On 16 August 2006, the European Union published in the Official Journal of the EU a new Directive 2006/46/EC on the annual and consolidated accounts of certain types of companies, including banks, insurance undertakings, and other financial institutions.

    The new directive modifies the 4th and 7th company law directives ('accounting directives' 78/660/EEC and 83/349/EEC), and also the accounting directives for banks (86/635/EEC) and insurance undertakings (91/674/EEC). It establishes collective responsibility of board members for the financial statements and annual reports, enhances transparency in related parties?transactions and off-balance sheet arrangements, and, for publicly traded companies, introduces a requirement for a corporate governance statement. The size thresholds for exempting small and medium-sized entities from specified accounting and auditing rules were also raised. The new Directive comes into law 20 days after publication in the Official Journal. EU member states then have two years to enact the provisions of the new directive into their national legislation. Click for (PDF 63k).

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