Charlie McCreevy (bottom photo), who is an Irish Chartered Accountant, will be Commissioner for Internal Market and Services, replacing Frits Bolkestein. Among Mr. McCreevy's responsibilities will be accounting and financial reporting, including the implementation of IFRSs in Europe. The new Commission will take office on 1 November, subject to approval by the European Parliament. The Parliament can vote only on the whole body and not on individual Commissioners. The EC decision on endorsing IAS 39 is expected to be made by the current Commissioners before 1 November. Click for:

• (PDF 101k)
• (PDF 89k)

These model financial statements were developed to illustrate the typical disclosures that will be required of a United Kingdom listed company with subsidiaries and associates, reporting under IFRSs for both the company and consolidated financial statements, for 2005. Material that is included to meet specific UK requirements and specific references to UK GAAP have been highlighted on a yellow background. Otherwise, these model financial statements would be appropriate for entities following IFRSs in any country. The model financial statements are based on standards issued at 31 May 2004 that are expected to be effective for years beginning on or after 1 January 2005. They also reflect the proposed amendments to IAS 19 issued by the IASB in April 2004 on the assumption that they will be approved and become effective in 2005. Model IFRS financial statements and a disclosure checklist for 2003 are available Here.

Nicolaisen addressed a range of issues, including FASB and IASB cooperation:

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 support global convergence. It's in the best interest of investors.

In response to a question, Mr. Nicolaisen said that the Commission will undertake a study of the IFRS reconciliations to US GAAP that are submitted for 2005 and, based on the findings, will determine whether to eliminate the reconciliation. He indicated his hope that the reconciliation could be eliminated by the end of the current decade. Click for Full Text of Mr. Nicolaisen's Remarks (link to SEC website).

Those exposure drafts will incorporate (1) the decisions reached in the Boards' current joint purchase method procedures project (Phase II) and (2) the decisions previously reached in the Boards' separate Phase I projects, which led to the issuance of FASB Statement No. 141 Business Combinations, and IASB IFRS 3 Business Combinations. The common EDs will be similar in both wording and style (including the IASB style of highlighting principles in bold type). The expected issuance date of the EDs is now the fourth quarter of 2004. The FASB has just posted on its website a 156-page staff summary of tentative decisions reached in Phase II of the project. Because there is no comparable summary on the IASB's website and the Boards are working toward issuing nearly identical standards, the FASB summary should be of interest to those who are following the IASB project as well. Click to Download the FASB Summary (PDF 1,191k).

In the international area, the report notes, among other things, that the PCAOB has "hired an international affairs staff to advise the Board on international issues and facilitate dialogue with foreign regulators regarding oversight of registered non-US accounting firms." Click to the report (PDF 1,012k).

In the area of financial accounting and reporting, FEE would require, among other things, education in "international standards and national laws, regulations and standards appropriate to the preparation of company and consolidated financial statements and to methods of valuing balance sheet items, of computing profits and losses, reporting cash flows and changes in equity". Click for (PDF 173k).

The guide:

• Outlines the key features of IFRS 3.
• Provides illustrative examples to assist readers in applying the standard.
• Discusses the requirements of IAS 36 Impairment of Assets and IAS 38 Intangible Assets as they relate to business combinations.
• Includes:
  • Guidance on determining fair value for the purposes of accounting for business combinations;
  • An overview comparison between the requirements of IFRS and those of US GAAP;
  • A number of frequently asked questions; and
  • Illustrative disclosures.

Click to (PDF 1,894k*). _{*Because of the large file size, a white screen may appear for a while when downloading.}

Regarding the Commission's efforts in support of international convergence of accounting standards, the plan notes:

 

Companies and investors benefit when financial statements, accounting standards, and auditing procedures mean the same thing from country to country. When one set of high-quality standards is applied anywhere in the world, the cost of accessing capital markets is likely to be reduced, and information disclosed to investors in one country can be as relevant and meaningful to investors in other countries.

 

Click for Strategic Plan for 2004-2009 (PDF 1,783k).

Click for Deloitte's Letter.

This follows confirmation of the Australian equivalents to these Standards by the Australian Accounting Standards Board in mid-July. All Australian reporting entities must adopt IFRSs for reporting periods beginning on or after 1 January 2005. This will, in turn, require APRA to revise its prudential standards and statistical requirements for deposit-taking institutions and insurance companies. Click for (PDF 52k).