The report contains 2004 pension assumption data for 356 companies in 25 countries. 82% of the survey participants report under FAS 87 Employers' Accounting for Pensions; 11% under IAS 19 Employee Benefits; 6% under FRS 17 Retirement Benefits (UK and Ireland); and the remaining 1% percent under other national standards. The US retirement plan data on FAS 87 assumptions is derived from information reported in corporate annual reports. The non-US information was collected using a survey form. The report includes tables showing by country, among other things:

• Background economic data - Bond yields and CPI+.
• Discount rates are used to calculate the present value of pension obligations and the service and interest cost portion of pension expense.
• Expected rates of return on assets.
• Salary increase assumptions.
• Spread between the average discount rate and salary increase by country.
• Estimated social security increase, in those countries where the plan formula takes into account social security.
• Estimated pension increases, in those countries where either pensions are required to increase or there is a substantive commitment to provide increases.
• Whether pension assets are measured at 'market value' or 'market-related value' (the latter reflecting a smoothing of the value of assets over a period up to five years).
• Average asset allocation.
• Funded status based on projected benefits and also accumulated benefits.

The report may be purchased from www.watsonwyatt.com then click 'Research' then 'Research Reports'.

Nominations are sought by 15 February 2006.

This issue covers the following accounting and financial reporting developments:

• FASB Statements 123(R) Share-Based Payment; 153 Exchanges of Nonmonetary Assets; 152 Accounting for Real Estate Time-Sharing Transactions; and 151 Inventory Costs.
• FASB proposed FSPs: FIN 46(R)-b and EITF 85-24-a.
• Developments at the GASB, AICPA, SEC, PCAOB, IASB, and IFRIC.

Past issues of Accounting Roundup can be found Here.

Agendas are or will be posted on the IASB Website Meetings Diary.

That (PDF 365k, 37 pages, 13 December 2005) focused on speeches dealing with financial accounting and reporting in accordance with US GAAP. Deloitte & Touche (USA) have published a second Heads Up with additional highlights of the AICPA Conference. This (PDF 219k, 20 pages, 23 December 2005) focuses on the speeches and other comments at the Conference that dealt with (1) securities offering reform, (2) current and proposed SEC filing rules and regulations, (3) XBRL, (4) current and proposed PCAOB initiatives, and (5) two specific accounting matters – block discounts and warrants to nonemployees.

Click for (PDF 44k).

We have updated the following agenda project pages to reflect the discussions and decisions at the December 2005 meeting of the International Accounting Standards Board:

• Accounting Standards for Small and Medium-sized Entities
• Conceptual Framework
• Fair Value Measurement
• Financial Instruments Puttable at Fair Value
• Insurance Contracts
• Joint Ventures
• Short-term Convergence – Income Taxes

To date the CASB has adopted 26 Chinese auditing standards. Seventeen exposure drafts are currently outstanding, and five more will be issued soon. The CASB has made amendments to some of the ISAs and also has issued Chinese standards to deal with matters not covered in the ISAs. In the joint statement, the Ministry of Finance states its intention to "eliminate, over time, as the environment in China changes, those differences between Chinese auditing standards and the ISAs that still exist". Click to (PDF 987k).

Comment deadline is 31 March 2006. While the issues addressed in the consultation generally do not relate to accounting, the following point is noted regarding a study on the implications of IFRSs on profit distribution:

On 13 August 2005, the Commission published a call for tender for a feasibility study on alternative to capital maintenance regime as established by the Second Company Law Directive and the examination of the implications of the new EU-accounting regime on profit distribution. The terms of reference of the feasibility study will be re-examined by the members of the Advisory Group on Company Law and Corporate Governance and a further call for tender will be published in early 2006.

Click to download:

• (PDF 109k)
• (PDF 86k)

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to the EU Regulation 1606/2002/EC (the 'IAS regulation'):

• "in accordance with International Financial Reporting Standards as adopted by the EU" or
• "in accordance with IFRSs as adopted by the EU".

This wording has been posted to the Commission's website as part of the (PDF 29k).