The amendments will:

• Establish a system for public oversight of the auditing profession and for cooperation between Member States' authorities.
• Require application of International Standards on Auditing (ISAs) in European auditing. ISAs are issued by the International Auditing and Assurance Standards Board of IFAC. The EC press release announcing the Parliamentary vote said "adoption of these standards will be subject to strict conditions such as their quality and whether they are conducive to the European public good" – conditions similar to those required for IFRSs under the EU Accounting Regulation.
• Create an Audit Regulatory Committee to complement the revised legislation and allow the speedy adoption of necessary implementing measures.
• Require rotation, every seven years, of the key audit partner/statutory auditor. However, compulsory rotation of audit firms was rejected.
• Provide a basis for effective and balanced co-operation between regulators in the EU and with regulators in third countries, such as the US Public Company Accounting Oversight Board (PCAOB).
• Improve the independence of auditors by requiring listed companies to set up an audit committee (or a similar body) with clear functions to perform.

Parliament also asked the Commission to present an impact study on current national auditor liability rules and an analysis on the possible limitations of the financial liability in the auditing profession. Approval by ECOFIN is required before the revisions come into force, after which Member States will have two years to implement the provisions. Click for EC Press Release (PDF 22k). You will find all of our European Accounting News Here.

 

You will find past issues Here. Issues covered in the September 2005 edition include:

• Issue No. 04-13 Accounting for Purchases and Sales of Inventory With the Same Counterparty*
• Issue No. 05-1 Accounting for the Conversion of an Instrument That Becomes Convertible Only Upon the Issuer's Exercise of a Call Option
• Issue No. 05-7 Accounting for Modifications to Conversion Options Embedded in Debt Securities*
• Issue No. 05-8 Income Tax Consequences of Issuing Convertible Debt With a Beneficial Conversion Feature*
• Sale of Held-to-Maturity Securities and Other Hurricane Katrina Related Accounting Guidance

* Final Consensus Reached

The newsletter covers special issues relating to application of IFRSs in the United Kingdom, as well as a more general quarterly IASB update. You will find all Past UK iGAAP Newsletters and Alerts in a special section of our United Kingdom page.

IFRIC 6 considers the appropriate trigger for recognition of an obligation to contribute to the costs of disposing of waste equipment based on the entity's share of the market in a measurement period. The Interpretation is effective for annual periods beginning on or after 1 December 2005. You will find past issues of all IAS Plus Newsletters Here.

McDonough, the first Chairman of the US Public Company Accounting Oversight Board, has announced that he will step down not later than 30 November 2005. Click for (PDF 16k).

ED 26 proposes updates to 11 IPSASs to converge with the equivalent IFRSs issued by the IASB in December 2003 as part of the IASB's 'improvements project'. ED 26 is part of the IPSASB's program to converge IPSASs, which set out the requirements for financial reporting by governments and other public sector entities, and IFRSs, where the requirements of IFRSs are appropriate for the public sector. The following 11 standards are included in ED 26:

• IPSAS 1 Presentation of Financial Statements
• IPSAS 3 Net Surplus or Deficit for the Period, Fundamental Errors and Changes in Accounting Policies
• IPSAS 4 The Effect of Changes in Foreign Exchange Rates
• IPSAS 6 Consolidated Financial Statements and Accounting for Controlled Entities
• IPSAS 7 Accounting for Investments in Associates
• IPSAS 8 Financial Reporting of Interests in Joint Ventures
• IPSAS 12 Inventories
• IPSAS 13 Leases
• IPSAS 14 Events After the Reporting Date
• IPSAS 16 Investment Property
• IPSAS 17 Property, Plant and Equipment

Click here to Download ED 26 as a single document (PDF 3,552k). Alternatively, Click Here to go to the IPSASB web page where each of the 11 standards in ED 26 can be downloaded separately. Comments are requested by 31 January 2006.

Global Offerings Services is a global team of Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. Past GOs Newsletters are Here. Among the issues covered in the new edition are:

• Several new FASB Staff Positions
• A proposed interpretation of FAS 109 on uncertain tax positions
• Amendment of SEC delisting and deregistering rules
• Use of Forms S-8, 8-K, and 20-F by shell companies
• Securities offering reform
• Delayed SOX 404 compliance for non-accelerated filers
• A new PCAOB auditing standard on elimination of a material weakness
• New PCAOB ethics and independence rules
• Deloitte publications and webcasts of interest to foreign registrants

The IASB proposals would not only amend IFRS 3 Business Combinations but also amend IAS 27 Consolidated and Separate Financial Statements, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and IAS 19 Employee Benefits. The principal proposals are examined in detail in this newsletter. Several involve quite radical changes. Taken together, the exposure drafts would change the way entities account for business combinations and minority interests. They would also result in recognition of certain contingent assets and liabilities that are currently only required to be disclosed. If accepted, most of the proposed changes would come into effect from 1 January 2007. The IASB has requested comments on all the exposure drafts on or before 28 October 2005. You will find past issues of all IAS Plus Newsletters Here.

Just a gentle reminder that the deadline for commenting on the IASB's Proposed Policy on Technical Corrections is 30 September 2005. The IASB has proposed a 'fast track' process to deal with issues for which it is clear that the words in a standard do not properly convey the IASB's intention, even when considered with the basis for conclusions and any related guidance.

We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate September 2005 Meeting Notes Page.