News

IOSCO (International Organization of Securities Commissions) (dark gray) Image

New chairman of IOSCO Technical Committee

03 Jun 2004

The International Organization of Securities Commissions (IOSCO) has elected Andrew Sheng, Chairman of the Securities and Futures Commission of Hong Kong, as the new Chair of its Technical Committee.

IOSCO's Technical Committee, comprising representatives of 15 government agencies that regulate large, developed, and internationalised securities markets, deals with regulatory matters including financial reporting, disclosure matters, and International Financial Reporting Standards. In our news story of 24 May 2004 we reported two projects that have just been initiated by the Technical Committee relating to interpretation and enforcement of IFRSs.
European Union (old) Image

EC report on implementation of IFRSs in Europe

02 Jun 2004

The (PDF 148k) on the European Commission's Action Plan for Financial Services, which was presented to the 2 June 2004 meeting of the Council of Economics and Finance Ministers, provides an update on the implementation of IFRSs in Europe, including the following commentary on IAS 39: On IAS 39, discussions continue between the IASB and interested parties. On 21 April, the IASB re-exposed the fair value option in IAS 39. Further discussions relate to the presentation of cash flow hedges and the possible application of a third type of hedge.

On IAS 32, the Interpretation Committee of the IASB, IFRIC, is working on a draft interpretation regarding the treatment of cooperative shares that will be exposed for further comments in the near future. It is the Commission's intention to take stock of the ongoing discussions between the IASB and the European banking industry on IAS 39 at a next meeting of the Accounting Regulatory Committee, planned on 14 June.
Hong Kong Image

Hong Kong adopts IAS 32 and IAS 39

01 Jun 2004

The Hong Kong Society of Accountants has adopted HKAS 32 Financial Instruments: Disclosure and Presentation and HKAS 39 Financial Instruments: Recognition and Measurement, effective 2005. These are the same as IAS 32 (revised 2003) and IAS 39 (revised 2004) except for certain transition provisions.

HKAS 32 and 39 are available on the HKSA Website.
News default Image

Joint Forum report on financial disclosure

01 Jun 2004

The Joint Forum has published a report, Financial Disclosure in the Banking, Insurance and Securities Sectors: Issues and Analysis examining the progress to date by regulators and other standard-setters in the area of financial disclosures and the progress made by financial firms in adopting certain enhanced disclosure recommendations published in 2001. The Joint Forum was established in 1996 by the Basel Committee on Banking Supervision, the International Organization of Securities Commissions, and the International Association of Insurance Supervisors to deal with issues common to the banking, securities, and insurance sectors.

The report notes that a number of IASB projects are expected to improve disclosures by financial firms, including Financial Risk Disclosures, IFRS 4, and Insurance Contracts Phase II. Click to download:
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

Interpretations Committee will meet this week in London

01 Jun 2004

The International Financial Reporting Interpretations Committee (IFRIC) will meet on 3 and 4 June 2004 at the offices of the IASB in London.

The agenda:

AGENDA OF THE IFRIC MEETING 3-4 JUNE 2004

Constitution review (old) Image

IASC Foundation meetings and hearings this week

01 Jun 2004

Deloitte Chief Executive Officer Bill Parrett and Deloitte Global IAS Leader Ken Wild are among the participants in a public hearing on the review of the IASC Foundation Constitution to be conducted by the Foundation's Constitution Committee at Baruch College in New York City on Thursday 3 June 2004. The Constitution Committee is chaired by IASCF Chairman Paul Volcker.

The Constitution Committee will also meet in public session with the Constitution Subcommittee of the IASB's Standards Advisory Council at the Intercontinental Barclay Hotel in New York on Wednesday 2 June. On Friday 4 June, the IASCF Trustees will meet in public session at the Intercontinental Barclay Hotel in New York, including (from 8:45-11:30am) a joint meeting with the Trustees of the Financial Accounting Foundation, which oversees the FASB. Click for
  • Details of the Trustees' meetings on the IASB website and
  • Information about the Constitution Review.
News default Image

Most EU countries favour endorsing IAS 39 now

31 May 2004

The European Commission has recently posted the (PDF 31k) of the 30 April 2004 meeting of the Accounting Regulatory Committee.

With regard to endorsement of IAS 39 for use in Europe, those notes say, in part:

 

Most Member States opposed postponing the date of application of IAS 39. Many reasons were invoked: advanced state of preparedness of companies, impact on European financial markets, impact on international agenda (convergence, etc.). One regulator stated that it was a matter of credibility for European capital markets to respect the deadline of 1.1.2005 set by the IAS Regulation.

Most Member States considered that progress had been made regarding both IAS 32 and IAS 39, whilst recognising that some important issues were still outstanding (e.g. insurance mismatch, hedging provisions, fair value option). One Member State added that since the perfect solution was out of sight, Member States should go forward since standard setting is an evolutionary process. Another Member indicated that it was not closing the door to any solution, while remaining very supportive of the position of the banking industry and hopeful that substantial progress could be achieved rapidly. Many Member States invited EFRAG to deliver its endorsement advice on IAS 39. The Chairman of EFRAG informed Member States that the Technical Expert Group was preparing its draft endorsement advice to the Commission.

Many Member States stressed that the situation had become critical in terms of timing for the endorsement of IAS 39 and that the market needed certainty. Nonetheless, all Member States agreed to last efforts being made before the end of May, suggesting that a mechanism be put in place to allow the Commission to consult them before taking a final decision. The Chairman indicated that another meeting of the ARC would be held early or mid-June for this purpose.
Deloitte Comment Letter Image

Deloitte comments on IASCF Constitution review

31 May 2004

Our firm will be participating in the hearings that the trustees of the IASC Foundation will hold later this month as part of their Review of the IASCF Constitution.

News default Image

Joint IASB-ASB-FASB advisory group on comprehensive income

30 May 2004

Three accounting standards setting bodies are jointly forming an advisory group to assist in their project on Reporting Comprehensive Income -- also known as performance reporting.

The three are the International Accounting Standards Board, the United Kingdom Accounting Standards Board, and the United States Financial Accounting Standards Board. The advisory group will have about 20 members, most of whom will be professionals with significant experience and responsibility for preparing, analysing, auditing, or regulating financial statements. Nominations for membership on the advisory group should be submitted by 25 June 2004. Click for More Information (PDF 24k).
United Kingdom Image

UK FSA CEO urges acceptance of IAS 39 in Europe

30 May 2004

In a recent Speech (PDF 199k) at the 2004 Financial Services Authority Conference in London, FSA Chief Executive John Tiner urged that European banks and other listed companies accept IAS 39 and focus on ensuring a smooth transition to IFRSs in 2005. An excerpt from Mr Tiner's remarks: It is no secret that IAS 39 in particular is not a perfect standard and that the EU financial services sector has misgivings about potential volatility in earnings.

However, especially in recent months there has been a full and transparent debate about the major concerns and I believe all parties have worked hard and collaboratively to understand and, where appropriate, accommodate these. It is my impression that there is a growing belief that it is better to accept the standard as it is currently drafted for use in 2005 and seek to improve it after that. The FSA shares that view. We are concerned that EU listed companies do not yet know how they will be required to account for the most important financial assets and liabilities on their balance sheets and the billions, or perhaps even trillions, of Euros in financial instruments not on the balance sheets. And we are only a few months from the start date. It is more important to have certainty at this stage than to strive for perfection.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.