In its Earnings Announcement, Esprit cited the following reasons for adopting IFRSs:

• The Group operates internationally in four continents and has diverse international shareholders. The Group believes adoption of internationally recognized accounting standards will allow its financial statements to be better understood by its shareholders, the capital markets and the other users globally;
• Many of the Group's peers in Europe will be adopting IFRS from 2005 onwards under European Union rules; and
• Many of the Group's subsidiaries, particularly in Europe which accounts for approximately 80% of the Group's turnover and profits, have historically prepared their financial statements in accordance with IFRS. Consistently using IFRS throughout the Group will lead to efficiencies and is cost effective.

Mr. John Poon, Deputy Chairman and Group CFO, said: "We adopted International Financial Reporting Standards this year for better quality disclosure which is an essential element of good corporate governance. As an international company with operations worldwide and a diverse international shareholder base, we believe adopting an internationally recognized accounting standard will improve transparency and allow our financial statements to be better understood by our shareholders, the capital markets and other users globally."

The draft discusses various approaches to valuing plant and equipment and provides guidance for valuations that meet the requirements of accounting standards, particularly IAS 16 Property, Plant and Equipment. The draft points out that the measurement objective for financial reporting purposes is generally market value, defined as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion". The draft notes that "although the concept, use, and application of non-market bases of value may be appropriate under certain circumstances, the valuer is responsible to ensure that if such value is to be found and reported, it will not reasonably be construed as a representation of market value". Comments are due 31 October 2004.

The comment periods on two documents end next week:

• D9 Employee Benefit Plans with a Promised Return – 21 September 2004
• Discussion Paper: SMEs – 24 September 2004

You can download the letter from EFRAG's Website.

Domestic companies would continue to use the standards set by the Malaysian Accounting Standards Board. Currently, approximately 930 companies are listed on Bursa Malaysia, of which four are foreign.

Nicolaisen addressed a range of issues including international ones. Here is the Link to Mr. Nicolaisen's Remarks on the SEC website. An excerpt:

The International Arena: The FASB and IASB support moving toward a single conceptual framework that would be used by both Boards. The work of these two Boards, and other national standards setters involved in the IASB process, is an important part of building and maintaining an effective global financial reporting infrastructure. I also support global convergence. It's in the best interest of investors.

For a summary of D8, Click Here.

The two sections relate to (a) the prohibition on hedge accounting for core deposits and (b) the fair value option. The purpose of EFRAG's meeting is to consider whether IAS 39 with these two sections 'carved out' would "lead to a technically robust, sound, and consistent solution. The aim is not to evaluate whether the carve-out solution in principle is the preferred option." EFRAG invites interested parties to provide comments on the carve-out proposal by 21 September 2004.

The European Financial Reporting Advisory Group (EFRAG) will meet with representatives of all European national standard setters in Brussels on 6 October 2004. The main agenda items will be the IASB projects on measurement, concession arrangements, and the IASB's exposure drafts proposing amendments to IAS 39. The meeting will take place at FEE, Rue de la Loi 83, 1040 Brussels.

Click to (PDF 53k). Deloitte's overall view:

We believe the draft Interpretation is an appropriate and practical interpretation of IAS 32 Financial Instruments: Disclosure and Presentation and support its issuance. We note the draft Interpretation addresses two significant matters of principle – adopting a portfolio approach (BC14-BC16) and reclassification (BC17). While we are cautious about the ramification such an interpretation may have when applied by analogy, we note that these issues are currently being addressed in the IASB's project on the distinction between debt and equity. Pending further consideration by the IASB, we believe the IFRIC's approach is appropriate under current IFRS.

You will find all past Deloitte comment letters to IASB/IASC Here.