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Notes from the IASB meeting 23 June 2005

27 Jun 2005

The IASB met at its offices in London on Wednesday and Thursday, 22-23 June 2005. We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate Web Page. .

The IASB met at its offices in London on Wednesday and Thursday, 22-23 June 2005. We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate Web Page.

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EFRAG seeks to be more 'proactive'

27 Jun 2005

The European Financial Reporting Advisory Group (EFRAG) has released a Position Paper (PDF 21k) on Proactive Accounting Activities in Europe: EFRAG and the National Standard Setters.

The objectives of the greater proactivity, as agreed by EFRAG and 17 European accounting standard setters, are:
  • EFRAG and the national standard-setters (NSS) should work much more closely together to improve the input from Europe to the global standard-setting process.
  • By working more closely together and pooling resources, Europe should become more involved in the IASB's work from an early stage.
  • Increased co-operation will encourage the development of common views and ensure, as far as is practicable, that the messages Europe gives the IASB are consistent.
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Webcast covers a range of IFRS/UK GAAP issues

26 Jun 2005

The Deloitte United Kingdom IFRS Centre of Excellence is running a monthly series of hour-long Internet-based IFRS technical updates, focusing on the most important international accounting standards and how they will affect UK companies.

The fourteenth session was run on Thursday 23 June 2005 and focused on the new Operating and Financial Review, company law and other regulatory changes, and draft guidance on IFRSs and distributable profits. To access the recording Click Here. The recording of each session will be available on this website for a period of at least 3 to 4 weeks from the date of the presentation. Links to past sessions may be found on our United Kingdom Page. The recording is no longer available online.
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IASB withdraws IFRIC 3 'Emission Rights'

25 Jun 2005

The IASB has voted to withdraw IFRIC 3 'Emission Rights', which had been issued in December 2004 and was scheduled to go into effect for annual periods beginning on or after 1 March 2005.

IFRIC 3 specifies that emission rights (allowances) granted by government are intangible assets that should be recognised in the financial statements in accordance with IAS 38 Intangible Assets and that as a participant produces emissions, it recognises a provision for its obligation to deliver allowances in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Some of the Board's constituents had expressed concern about a resulting 'accounting mismatch' because the intangible asset is measured at historical cost while the provision is measured at the market value of the allowances needed to settle it.

IFRIC discussed the matter at its 2-3 June 2005 meeting. That discussion included a staff analysis of a proposal by EFRAG for the development of a form of cash flow hedge accounting to reduce the volatility resulting from the timing of receipt of allowances. IFRIC had recommended that the Board consider these wider issues.

The Board also had before it a letter from the European Commission requesting that the effective date of IFRIC 3 be deferred. The Board concluded that while IFRIC 3 is the appropriate interpretation of the existing requirements of IAS 37 and IAS 38, the 'accounting mismatch' problem suggests the need for a more comprehensive consideration of the issue. Pending that consideration, IFRIC 3 has been withdrawn.

 

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Comment deadline on SME questionnaire is next week

24 Jun 2005

We remind IAS Plus visitors that the deadline for responding to the IASB's Staff Questionnaire on Possible Recognition and Measurement Modifications for Small and Medium-sized Entities (SMEs) is 30 June 2005. For information about the SME project click Here. .

We remind IAS Plus visitors that the deadline for responding to the IASB's Staff Questionnaire on Possible Recognition and Measurement Modifications for Small and Medium-sized Entities (SMEs) is 30 June 2005. For information about the SME project click Here.

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Hong Kong Exchange Chairman urges IFRSs globally

24 Jun 2005

In his (PDF 14k) Charles Lee, chairman of Hong Kong Exchanges and Clearing Ltd., gave a strong endorsement to the global use of International Financial Reporting Standards.

He noted that 36% of the turnover of the Hong Kong exchange is generated by international investors who are best served by a uniform global accounting language. An excerpt from Mr. Lee's comments:

Hong Kong has been a firm supporter of a universal accounting regime, and has participated fully in the work of the IASB. Hong Kong financial reporting standards issued by the Hong Kong Institute of Certified Public Accountants have been fully converged with the International Accounting Standards now known as International Financial Reporting Standards since 1 January 2005. This convergence in many instances requires a change in the accounting policy of listed companies, and has led in some cases to unexpected results....

The financial results of Hong Kong listed companies and the accounting language they use must be easily understood by investors and analysts around the globe, as well as those based in Hong Kong. A uniform accounting platform allows for the comparison of companies and their results in different jurisdictions and leads to greater confidence in the quality and value of our stocks.

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Two recommendations from EFRAG

23 Jun 2005

The European Financial Reporting Advisory Group has Recommended (PDF 18k) to the European Commission that the amendments to the Amendments to IAS 39 relating to cash flow hedge accounting of forecast intragroup transactions be endorsed for use in Europe.

EFRAG has also written to IFRIC supporting the proposal in IFRIC D15 Reassessment of Embedded Derivatives but with some suggestions for change.
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IFRS XBRL taxonomy information updated

23 Jun 2005

We have updated our page of information about the IFRS General Purpose XBRL Taxonomy to reflect new features and download links. .

We have updated our page of information about the IFRS General Purpose XBRL Taxonomy to reflect new features and download links.

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Notes from the IASB meeting 22 June 2005

23 Jun 2005

The IASB met at its offices in London on Wednesday and Thursday, 22-23 June 2005. We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate Web Page. .

The IASB met at its offices in London on Wednesday and Thursday, 22-23 June 2005. We have combined the preliminary and unofficial notes taken by Deloitte observers at the meeting in a Separate Web Page.

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Accounting convergence goal agreed at US-EU summit

23 Jun 2005

On 20 June 2005, at the United States-European Union summit meeting in Washington, the US and the EU jointly announced a series of undertakings designed to implement the Declaration on Enhancing Transatlantic Economic Integration and Growth.

One of the undertakings is "promoting convergence of accounting standards as soon as possible". Click to download:

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