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Herdman, partner at Ernst & Young, has been appointed SEC Chief Accountant effective 8 October 2001. He has been the senior partner responsible for his firm's relationships with the SEC, FASB, and the AICPA. (PDF 33k).
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IASB announces dates of two additional meetings

19 Sep 2001

IASB will meet in London 21-25 January 2002 (the first two days with national standard setters) and 19-23 February 2002 (the first two days with SAC).

The October 2001 Meeting dates are now 16-20 October (the first two days with SAC) in Washington. IASC Foundation Trustees will meet 15 October in Washington; this will be their first public meeting.
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Comprehensive report on IASB meeting 10-13 September 2001

14 Sep 2001

We have combined the separate daily news reports for the four day meeting into one Comprehensive Report on the 10-13 September 2001 Meeting and have moved it to its own page.

We have also updated our individual project files for the following projects to reflect discussions at the meeting:
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SIC issues two draft Interpretations

13 Sep 2001

The Standing Interpretations Committee has invited comment on two draft Interpretations.

Comment deadline on both is 5 November 2001:
  • SIC D33, Consolidation and Equity Method – Potential Voting Rights, proposes that potential voting rights that are presently exercisable or convertible should be considered when assessing whether an enterprise controls or significantly influences another enterprise. All potential voting rights should be considered, including potential voting rights held by other enterprises.
  • SIC D34, Financial Instruments - Instruments or Rights Redeemable by the Holder, proposes that the issuer of a puttable instrument should classify the entire instrument as a liability. A puttable instrument is a financial instrument or a right that gives the holder the right to put the instrument or right back to the issuer for cash or another financial asset. The amount payable upon redemption is determined based on an index or other item that has the potential to increase and decrease. The consensus in SIC D34 will affect open-ended mutual funds and certain co-operative organisations by requiring them to present their unitholders' funds as liabilities.
  • SIC has also completed its discussions of SIC D27, Transactions in the Legal Form of a Lease and Leaseback, including comments received from the IASB. The SIC reaffirmed its consensus and is redrafting the Interpretation to focus on the principles involved.
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Growing support to adopt IAS 39 in Australia

11 Sep 2001

An Article in the Melbourne Age highlights the issues.

There's also a follow-up story.
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Four day IASB meeting begins today

10 Sep 2001

IASB will hold an open meeting today and tomorrow with the chairs of national standard-setters representing Australia, Canada, France, Germany, Japan, New Zealand, United Kingdom, and United States.

Issues to be discussed include first-time application of IAS, business combinations, share-based payments, and improvements to IASB Standards. The Board will then meet for three days (12-13 September) to deliberate various Technical Agenda Projects. Check back here each day for brief summaries of the discussions.
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IAS 40 and long-term leases of land

10 Sep 2001

As a result of IAS 40, Investment Property, Hong Kong Land Company, which prepares IAS financial statements, has switched to a cost/depreciation reporting model for investment properties from its prior full fair value model.

IAS 40, in combination with IAS 17.11, prohibits the revaluation of leased land. The effect of the change was to eliminate US$4.2 billion (81%) of shareholders' equity at 31 December 2000. In Hong Kong (and elsewhere, including China) nearly all land is leased from the government under long-term leases rather than owned outright. Hong Kong Land says it cannot reliably value the buildings apart from the land. In its first-half 2001 financial report, Hong Kong Land presented, in addition to its primary cost/depreciation model financial statements, supplementary financial information prepared "in accordance with IAS as modified by the revaluation of leasehold properties", with value changes reported in net profit or loss. This method increased net profit for 2000 from US$0.3 billion to US$2.2 billion. Revaluation of long leases of land was an issue considered by the IASC in developing IAS 40, but IASC concluded that it should reconsider IAS 17.11 separately and not as part of the investment property project. Click for Link to Hong Kong Land Website. IASB has indicated that it will be addressing long leases of land as part of its Improvements Project.
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Some facts about our last 15,000 visitors

06 Sep 2001

Which browser do they use? 89% use Internet Explorer (nearly 90% of those version 5.x) 10% use Netscape (nearly all of those version 4.x.

Netscape 6.x is just 0.09%) Which operating system?
  • Windows 98: 50%
  • Windows NT: 19%
  • Windows 2000: 15%
  • Windows 95: 14% (Total for Windows: 98%)
  • Macintosh: 0.3%
  • Others: 2%
  • FEI (Financial Executives International) (lt green) Image

    FEI conference to highlight international accounting issues

    04 Sep 2001

    The Current Financial Reporting Issues Conference organised by Financial Executives International is one of the major annual US symposiums on accounting and finance.

    The programme for this year's conference, to be held 12-13 November in New York, includes:
    • Keynote Address: "Global Accounting Standards" by Paul Volcker, Chairman, Trustees, IASC Foundation
    • A General Session on "Implications of IAS for US Companies and Capital Markets"
    In its response to the SEC Concepts Release on IAS, FEI said [click for full text (PDF 89k)]:

    FEI believes that US capital markets are better served by having foreign registrants use an investor-oriented accounting model like IAS in the primary financial statements rather than providing bits and pieces of financial data that reconcile to US GAAP supplementally. We also believe that the expanded use of IAS in world markets, which is much more likely to occur with SEC acceptance in the US, will further improve the comparability of financial results between US and foreign companies. We would therefore support the Commission's acceptance of IAS for use in US capital markets, provided that the following additional steps are taken:

    • Limit the choices of GAAP available to foreign registrants to two: US GAAP or IAS.
    • Require that foreign registrants comply fully with the same regulations that apply to US public companies, including reporting US or IAS GAAP financial statements for all interim periods.
    • Actively support processes that will accelerate the development of a single set of global accounting standards that will be used in all securities markets.
    • Ensure that US and foreign registrants are treated equally in all respects under federal securities laws, including the right of all registrants to follow IAS standards.
    • Require that these changes be effected over a time frame of no greater than five years and do not 'grandfather' existing foreign registrants.



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    FASB to discuss IASB initial agenda

    03 Sep 2001

    In an open meeting starting at 9:30 a.m.

    on Wednesday, 5 September 2001, the US Financial Accounting Standards Board will discuss the initial agenda of the International Accounting Standards Board and "the possibilities for cooperation between the FASB and the IASB on agenda topics of mutual interest".

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