This newsletter briefly describes key regulatory and professional developments that have recently occurred and provides links to locations where additional information can be found on each topic. This issue includes updates on activities of FASB, SEC, PCAOB, and IASB. You will find past issues Here.

We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.

"EFRAG supports the IASB conclusion that an expense should be recognised even though the share-based payment transaction does not require the entity to sacrifice any cash or other assets." Click to Download EFRAG's Letter (PDF 40k).

The CCDG has also approved revised standards comparable to the revised IAS 32 and IAS 39. The new standards issued by the CCDG contain a few departures from the equivalent revised IASs:

FRS 16 Property, Plant and Equipment allows for one-off revaluations prior to 1996 to be carried as cost. FRS 17 Leases allows leasehold land to be classified as a finance lease if it meets the criteria in the standard. FRS 27 Consolidated and Separate Financial Statements, FRS 28 Investments in Associates, and FRS 31 Interests in Joint Ventures do not require that the parent must produce consolidated financial statements that comply with IFRSs in order to be exempt from consolidation or applying the equity method.

These improved FRSs will be effective for financial periods beginning on or after 1 January 2005. There's more information at the CCDG Website.

We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.

EFRAG has released the following documents:

• Preliminary Views on Endorsement of IFRS 4 Insurance Contracts – comments requested by 18 May 2004 (PDF 38k).
• Preliminary Views on Endorsement of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – comments requested by 18 May 2004 (PDF 38k).
• Final Comments on ED 6 Exploration for and Evaluation of Mineral Resources as submitted to the IASB (PDF 48k).

 

The purpose of the standard is to provide users of financial reports with relevant and reliable information about the impacts of changes in accounting policies in the period leading up to full adoption of Australian equivalents of IFRSs. The disclosures must be made by all entities, including not for profit entities, for interim and annual reporting periods ending on or after 30 June 2004. Click for (PDF 25k). You can download a PDF Version of AASB 1047 from the AASB's Website.

We have combined onto a Single Page our notes from (a) the IASB meeting on 21 April 2004, (b) the IASB and FASB joint meeting on 22-23 April 2004, and (c) the IASB meeting with chairs of its partner national standard setters on 26-27 April 2004.

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Tuesday and Wednesday, 4-5 May 2004. The agenda for the meeting is set out below.

AGENDA – IFRIC MEETING 4-5 MAY 2004 IAS 11: Combining and Segmenting Construction Contracts IAS 17: Accounting for Service Concession Arrangements IAS 27 - Applying IAS 27 to Agents and Delegates IAS 32: Members' Shares in Co-operative Entities IAS 41 Agriculture IFRIC D3: Determining Whether an Arrangement Contains a Lease IFRIC D4: Decommissioning, Restoration and Environmental Rehabilitation Funds IFRS 2 - Accounting for Employee Share Ownership Plans

The British securities regulator has proposed to allow non-UK companies to submit only IFRS or US GAAP financial statements (see our news stories of 26 and 27 January 2004). Three Japanese groups (securities regulator, accounting standard setter, and professional accountancy body) have issued a nine-page electronic document Evolving Japanese GAAP: High Quality Accounting Standards to make the case that "Japanese GAAP is equivalent to IFRS" and, therefore, should be allowed. Click to Download (PDF 590k).