One vacancy remains. Click here for More Info about the IASCF.

Discussions on Tuesday 10 January will focus on fair value measurement and day-one gains. The agenda is available on the IASB's Website. The meeting is open to public observation.

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday 12 January and Friday 13 January 2006. The agenda for the meeting is below:

Thursday 12 January 2006 Introduction - Opening remarks; administrative matters; minutes of the December 2005 IFRIC meeting Hedging Inflation Risk - Presentation IFRIC D15 Reassessment of Embedded Derivatives – Staff proposal for a final Interpretation Review of Tentative Agenda Decision IFRS 6 Exploration for and Evaluation of Mineral Resources - Application of 'full cost method' Recommendations by Agenda Committee regarding requests for IFRIC agenda items: Separate financial statements issued before consolidated financial statements Liability/equity classification Service Concession Arrangements - Project plan; double recognition of revenue Friday 13 January 2006 (Morning Only) IFRIC Handbook – Staff proposals for a draft Handbook Customer Loyalty Programmes – Staff proposal for a draft Interpretation Recommendations by Agenda Committee regarding requests for IFRIC agenda items (continued from Thursday): IFRS 3 Business Combinations – Puts held by minority interests

The current standard requires the auditor to perform certain specified procedures. The proposed standard would extend current practice by requiring the auditor to obtain an understanding of the nature and business rationale of an entity's related party relationships and transactions sufficient to identify, assess, and respond to the risks of material misstatement resulting from them. It also places greater emphasis on the difficult task for the auditor of attempting to identify related party relationships and transactions not identified or disclosed by management. The revision also places new emphasis on evaluating the effects of related party relationships and transactions on the financial statements, even in circumstances where the financial reporting framework does not establish related party accounting or disclosure requirements. Comments on the exposure draft are due by 30 April 2006. Click for:

• IAASB Press Release (PDF 83k).
• Exposure Draft (PDF 214k).

The conference will also provide a forum for discussion of implementation issues. Click for Press Release (PDF 65k).

FEE notes that the European Commission has adopted the following wording (reported in our news story of 23 December 2005): "in accordance with International Financial Reporting Standards as adopted by the EU" or "in accordance with IFRSs as adopted by the EU". FEE also urges that the following three disclosures be included:

• It should be strongly encouraged to provide an explanation in the notes to the accounts as to how companies' accounting policies depart from full IFRS to enable investors to compare the results of companies within and outside the EU.
• It should be encouraged that companies also state that they are in compliance with full IFRS (additional disclosure, not as the legal financial reporting framework).*
• It should be strongly encouraged to provide an explanation of how companies are in compliance with 'International Financial Reporting Standards as adopted by the EU' or 'IFRSs as adopted by the EU' and full IFRS as issued by the IASB in cases where the two frameworks are recognised to be different.

*In this regard, paragraph 14 of IAS 1 Presentation of Financial Statements as endorsed for use in Europe states: "An entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes." Click for (PDF 157k).

This 38-page edition summarises the final guidance issued by standard setters through November of 2005, with links to guidance finalised in December. Many of the items are effective or will be effective in the near future. For each item, there is a hyperlink within the PDF file to supporting information. The following items are included with respect to International Financial Reporting Standards:

• SEC Rule, First-time Application of International Financial Reporting Standards
• IFRS 7 Financial Instruments: Disclosures and Amendments to IAS 1 Presentation of Financial Statements: Capital Disclosures
• IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
• IFRIC 6 Liabilities Arising from Participating in a Specific Market: Waste Electrical and Electronic Equipment
• Amendment to IAS 39 Financial Instruments: Recognition and Measurement – The Fair Value Option
• Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Cash Flow Hedge Accounting of Forecast Intragroup Transactions
• Amendment to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4 Insurance Contracts
• Amendments to IFRS 1 First-time Adoption of IFRSs and IFRS 6 Exploration for and Evaluation of Mineral Resources
• Withdrawal of IFRIC 3 Emission Rights

Here is the link to All Past Issues of Accounting Roundup.

We wish you a very happy new year.

The new strategic direction is intended to elevate all of its member firms' businesses to be the standard of excellence, thus strengthening their market differentiation. For fiscal 2005 DTT member firms had aggregate revenues of US$18.2 billion, a 10.9% increase over the US$16.4 billion reported last year. This marks the third consecutive year of double-digit growth from continuing operations. Fiscal 2005 also marked the 12th consecutive year that Deloitte member firms have posted aggregate revenue increases. Click for:

• (PDF 3,312k)
• (PDF 170k)

The newsletter reports the decisions made at the November-December 2005 meeting of the International Public Sector Accounting Standards Board (IPSASB). The IPSASB replaced IFAC's Public Sector Committee (PSC) in November 2004. It develops standards for accounting and financial reporting by national, regional, and local governments and related governmental agencies. Those standards are generally based on IFRSs, and profit-oriented government business enterprises are required to comply directly with IFRSs. The IPSASB's current work programme includes an ongoing project on 'Convergence with International Financial Reporting Standards (IFRSs) issued by the IASB'. One IPSASB convergence issue relates to IFRIC's project on accounting for Service Concessions (public-private partnerships). Because IFRIC's draft Interpretations do not address accounting by grantors of service concessions, the IPSASB will work with national standard setters to explore the potential for coordinating national and international guidance on accounting by public sector entities involved in service concession arrangements. Click:

• Download IPSASB Update December 2005 (PDF 146k)
• More Information about the IPSASB, including links for downloading all earlier editions of the Public Sector Update newsletter.