ED 8 The proposed IFRS would replace IAS 14 Segment Reporting and align segment reporting with the requirements of FASB's SFAS 131 Disclosures about Segments of an Enterprise and Related Information.

Discussion Paper: Bases for Financial Reporting - Measurement on Initial Recognition The Paper analyses possible bases for measuring assets and liabilities on initial recognition.

ED 8 and the Discussion Paper may be downloaded from the IASB's Website.

GAO suggests that this may have been one factor in the reduced number of IPOs, increased number of companies 'going private', and shift among small companies from use of the largest audit firms, to mid-size and smaller audit firms. Examples cited in the report include:

• Of the companies that reported implementing section 404, public companies with market capitalisation of $75 million or less paid a median $1.14 in audit fees for every $100 of revenues compared to $0.13 in audit fees for public companies with market capitalisation greater than $1 billion.
• 81% of the small public companies that responded to the GAO survey had hired a separate accounting firm or consultant to assist them in meeting Section 404 requirements. Services provided included assistance with developing methodologies to comply with section 404, documenting and testing internal controls, and helping management assess the effectiveness of internal controls and remediate identified internal control weaknesses. These small companies reported paying fees to external consultants for the period leading up to their first section 404 report that ranged from $3,000 to more than $1.4 million.
• The number of public companies that went private has increased significantly from 143 in 2001 to 245 in 2004, with the greatest increase occurring in 2003.

The report includes recommendations for both SEC and PCAOB consideration, and comments from both of those organisations. Click to (PDF 1,012k), which is titled Sarbanes-Oxley Act: Consideration of Key Principles Needed in Addressing Implementation for Smaller Public Companies.

The roundtable will be held at the SEC's Washington, DC, headquarters on 12 June 2006. Particular emphasis will be placed on disclosures by mutual funds. Interactive data permits Internet users to search for and use individual items of information from financial reports, such as net income, executive compensation, or mutual fund expenses. Topics to be considered at the forum include:

• What investors and analysts are looking for in the new world of interactive data.
• How to accelerate the use of new software that permits the dissemination of interactive financial data.
• How best to design the SEC's requirements for company disclosures to take maximum advantage of the potential of interactive data.

Click for (PDF 34k).

ECOFIN noted that "the growing number of cross-border financial groups and the increasing international and cross-sector interlinkages in the financial markets call for further progress in the convergence of supervisory practices and cross-border cooperation among supervisory authorities in the EU. The Council underlines that supervisory convergence needs to be intensified to fully benefit from the FSAP [Financial Services Action Plan] and related measures and thus, to reap the benefits of an integrated financial market." ECOFIN asked the Committee of European Securities Regulators (CESR), the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), and the Committee of European Banking Supervisors (CEBS) to further strengthen their co-operation and day-to-day working arrangements. Click for:

• (PDF 236k).
• (PDF 68k).

You can find other comparisons of local GAAP and IFRSs Here.

123(R) Share-Based Payment: (PDF 2335k). This second edition reflects all authoritative guidance on FAS 123(R) issued as of 28 April 2006. It includes over 60 new questions and answers, particularly in the areas of earnings per share, income tax accounting, and liability classification. Our interpretations incorporate the views in SEC Staff Accounting Bulletin Topic 14 "Share-Based Payment" (SAB 107), as well as subsequent clarifications of EITF Topic No. D-98 "Classification and Measurement of Redeemable Securities" (dealing with mezzanine equity treatment). The publication contains other resource materials, including a GAAP accounting and disclosure checklist. Note that while FAS 123 is similar to IFRS 2 Share-based Payment, there are some measurement differences that are Described Here.

Comment deadline is 30 September 2006. To download the consultation document from the IASB's website Click Here (PDF 299k). Click for Press Release (PDF 44k).

Topics covered in this issue include:

FASB developments including a final FSP on Determining the Variability to Be Considered in Applying Interpretation 46(R). GASB developments including a Preliminary Views Document on Accounting and Financial Reporting for Derivatives. AICPA developments including an AICPA Alert Updating the SEC's Position Regarding Changes to the Statement of Cash Flows Relating to Discontinued Operations; and Technical Practice Aids on Consolidation of Variable Interest Entities. SEC developments including SEC approval of PCAOB's Rules Concerning Independence, Tax Services, and Contingent Fees; Final Report of the SEC Advisory Committee on Smaller Public Companies; and SEC plan for electronic notification of registration statement effectiveness. International developments including IASB's Statement on Its Working Relationship With Other Standard Setters and the IASB Due Process Handbook.

You will find past issues of Accounting Roundup Here.

To download the report from the IASB's website Click Here (PDF 863k).

Meeting at SEC headquarters in Washington, D.C., SEC Chairman Christopher Cox and CSRC Chairman Shang Fulin presented terms of reference that establish the structure of this enhanced dialogue and discussion subjects for the agenda during 2006. Several aspects of the dialogue relate to financial reporting. The new dialogue has three primary objectives:

• to identify and discuss securities markets regulatory developments of common interest, particularly those relevant to reporting requirements for public companies listed in one another's markets;
• to improve cooperation and the exchange of information in cross-border securities enforcement matters; and
• to continue and expand upon the existing program of training and technical assistance provided by the SEC to the CSRC.

In setting out the areas of dialogue for the agenda in 2006, the following regulatory issues for discussion were identified:

• corporate governance reforms, including requirements for audit committees, auditor independence and internal controls over financial reporting;
• convergence of national accounting standards with International Financial Reporting Standards; and
• the use of information technology, including interactive data tagging systems, to enhance the usefulness of reported of financial information.

Click for Press Release (PDF 39k).