News

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Regulators to share information on IFRSs

06 Oct 2005

The International Organization of Securities Commissions (IOSCO) is establishing a system for participating IOSCO members and other independent enforcement organizations to share information and consult in order to maximize co-ordination and convergence of the transition to and implementation of IFRSs.

While each national regulator will retain the right to deal with an issue on its own, the system will facilitate consistency by cataloguing, in a database, decisions made by regulators concerning application of IFRSs. This will provide a reference source for input to future regulatory decisions. Participating regulators will also contact each other to discuss particular decisions. IOSCO's announcement said:

On an ongoing basis, IOSCO will monitor issues related to the implementation of IFRS for indicators of issues that should be referred to the International Accounting Standards Board or the International Financial Reporting Interpretations Committee for consideration. IOSCO anticipates that the database will be operational by the second half of 2006. At this stage it is not intended for the catalogue of decisions to be publicly accessible.

Click for IOSCO Press Release (PDF 123k).
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IASB seeks comments on Draft Technical Correction

05 Oct 2005

The IASB has invited comments on Draft Technical Correction (DTC) 1 Proposed Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates–Net Investment in a Foreign Operation.

Comments are due 31 October 2005. If confirmed, these amendments would be the first to be issued under the Board's proposed new IASB Proposed Policy on Technical Corrections. DTC 1 provides that if a monetary item that forms part of a reporting entity's net investment in a foreign operation is denominated in the functional currency of the foreign operation, an exchange difference arises in the reporting entity's separate financial statements and in the foreign operation's individual financial statements. That exchange difference is reclassified to the separate component of equity in the financial statements in which the foreign operation is consolidated, proportionately consolidated, or accounted for using the equity method. DTC 1 can be downloaded from the IASB's Website.
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Commissioner McCreevy will speak on IFRSs

05 Oct 2005

European Internal Market Commissioner Charlie McCreevy will deliver the keynote speech on the subject of IFRS: No Pain, No Gain? at the official opening of the new offices of the European Federation of Accountants (FEE) on 18 October 2005. Click for (PDF 23k). .

European Internal Market Commissioner Charlie McCreevy will deliver the keynote speech on the subject of IFRS: No Pain, No Gain? at the official opening of the new offices of the European Federation of Accountants (FEE) on 18 October 2005. Click for (PDF 23k).

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New Deloitte IFRS-US GAAP comparison

04 Oct 2005

We have posted the new Deloitte (PDF 265k) as of 1 September 2005. While this 32-page comparison is comprehensive, it does not attempt to capture all of the differences that exist or that may be material to a particular entity's financial statements.

Our focus is on differences that are commonly found in practice. The significance of these differences – and others not included in this list – will vary with respect to individual entities depending on such factors as the nature of the entity's operations, the industry in which it operates, and the accounting policy choices it has made. You will find other comparisons of IFRSs and local GAAPs Here.
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New IAASB standard on audit documentation

02 Oct 2005

The International Auditing and Assurance Standards Board (IAASB) has approved a revised International Standard on Auditing (ISA) 230 Audit Documentation.

ISA 230 establishes clear responsibilities for the auditor to assemble the final audit file on a timely basis (generally within 60 days after the date of the auditor's report) and sets out specific rules regarding deletions, modifications, or additions to audit documentation after the date of the auditor's report. There are new documentation requirements for those very rare occasions when an auditor finds it necessary to depart from the requirement of a standard in order to achieve the objective of the audit. There is also a new requirement that the auditor not delete or discard audit documentation after the final audit file has been assembled until after the retention period – ordinarily not less than five years from the date of the auditor's report or, if later, the date of the group auditor's report. ISA 230 is effective for audits of financial periods beginning on or after 15 June 2006. The standard may be downloaded without charge from IFAC's Website. Click for Press Release (PDF 83k).
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EFRAG seeks to extend business combinations deadline

01 Oct 2005

The European Financial Reporting Advisory Group (EFRAG) has written to the IASB asking that the IASB extend "probably by two months" the comment period for the Exposure Drafts of proposed amendments to IFRS 3 'Business Combinations' and related amendments to IAS 19, IAS 27 and IAS 37.

An extract from the letter follows:

The exposure drafts contain a number of proposals that will have a fundamental effect on the financial statements and/or have potentially widespread implications for other aspects of accounting. For that reason it is vitally important that the IASB's constituents study the proposals carefully before responding to them....

The nature of the drafts themselves compounds this problem because it is often not clear from the text why a particular proposal had been made. For example, faced with radical proposals for change it is reasonable to start by asking what is wrong with what we have now and how will the changes proposed benefit users of the financial statements. However, in the main the Basis for Conclusions as drafted does not help in answering those questions. This makes it more difficult to evaluate the proposals.

Click to download EFRAG's Letter to the IASB (PDF 24k).

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IFRS model financial statements in Chinese

30 Sep 2005

We have posted the Chinese language version of our for the year ended 31 December 2005 (PDF 632k).

These model financial statements were developed to illustrate the typical financial statement presentation and disclosures that are required of a company with subsidiaries and associates, presenting its consolidated financial statements under IFRSs for 2005 (not a first-time adopter, for which special requirements apply under IFRS 1). You will find the English language version Here.
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Deloitte comments on technical corrections proposal

30 Sep 2005

Deloitte has submitted its (PDF 12k).

In general, we favour having a 'fast-track' process to deal with issues for which the words in a standard do not properly convey the Board's intentions. We recommend that additional guidance be provided so that issues that require considerable time and thought are not treated as 'technical corrections', and we express concern about the likely time it will take for processing the corrections and what the appropriate accounting should be in the meantime. Here is IASB's Proposed Technical Corrections Policy (PDF 39k).
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Special iGAAP newsletter on new UK regulations

30 Sep 2005

The Deloitte (United Kingdom) IFRS Centre of Excellence has published a special edition of the iGAAP Newsletter on (PDF 76k).

The new regulations result from the introduction of IFRSs in the United Kingdom and relate, among other things, to summary financial statements, the operating and financial review, adjustments of corresponding amounts, and distribution provisions for investment companies. You will find all Past UK iGAAP Newsletters and Alerts in a special section of our United Kingdom page.
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New FASB Investor Task Force

30 Sep 2005

The US Financial Accounting Standards Board has formed an (PDF 17k), an advisory group that will provide the FASB with sector-specific insight and expertise from the professional investment community on relevant accounting issues.

The IASB has a similar body – its Analyst Representative Group (ARG). The ARG meets three times a year with five members of the IASB to provide the views of professional investors on financial reporting issues. The 'Chairman's Page' in the July 2005 issue of Insight, the IASB's quarterly newsletter (available to subscribers on the IASB's Website), contains a comprehensive description of the ARG and a list of its 15 members.

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