News

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG seeks views on whether to endorse IFRS 2

09 Mar 2004

The European Financial Reporting Advisory Group has Invited Comments on its draft letter to the European Commission recommending that the Commission adopt IFRS 2 Share-based Payment for use in Europe.

Comments are due 5 April 2004.
News default Image

Review of restatements and other US financial reporting matters

09 Mar 2004

A report by the Huron Consulting Group titled 2003 Annual Review of Financial Reporting Matters analyses the leading causes and trends in financial restatements filed with the SEC for the five years 1999-2003. The report categorises the restatements based on the size and industry of the restating company and the nature of the underlying accounting error.

The report also reviews the actions taken during 2003 by the US Securities and Exchange Commission, the Public Company Accounting Oversight Board, the FASB, and the IASB. "In a world where our economy is global and the free flow and formation of capital across borders is good for all, uniformity in accounting standards should be a high priority.". We have posted the Report (PDF 230k) with the kind permission of the Huron Consulting Group.
2004mar.gif Image

Agenda for IASB March 2004 meeting

09 Mar 2004

The International Accounting Standards Board will meet Wednesday-Friday 17-19 March 2004 at its offices, 30 Cannon Street, London.

The announced Agenda is as follows:

AGENDA IASB MEETING 17-19 MARCH 2004

  • Accounting and Financial Reporting by Small and Medium-sized Entities
  • Business Combinations Phase I
  • Consolidation
  • Financial Instruments - Fair Value Option
  • Financial Instruments - Fair Value Hedge Accounting of a Portfolio Hedge of Interest Rate Risk (Macro Hedging)
  • Convergence - IAS 37 Provisions, Contingent Liabilities and Contingent Assets
  • Convergence - IAS 12 Income Taxes
  • IFRIC Issues
  • Post-employment Benefits
  • Reporting Comprehensive Income
  • Revenue Recognition
United Kingdom Image

UK will adopt six International Standards on Auditing

08 Mar 2004

The Auditing Practices Board of the United Kingdom and Ireland has Announced its intention to adopt six recent International Standards on Auditing as UK auditing standards effective for 2005.

The six standards relate to risk assessment, audit evidence, fraud, and quality control.

PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

PCAOB to vote on new registration deadline for non-US firms

07 Mar 2004

At its upcoming meeting on 9 March 2004, the US Public Company Accounting Oversight Board will consider a final vote on changing the registration deadline for non-US auditing firms.

The deadline under the existing rule is 19 April 2004. The PCAOB will vote on extending that to 19 July 2004. At the same meeting, the PCAOB will vote on an auditing standard for audits of internal control over financial reporting. More Info.
News default Image

Study on the future of the accounting profession

06 Mar 2004

Two years ago, The American Assembly, an arm of Columbia University in New York, began a project to determine whether America's current accounting model was able to deal effectively with contemporary business practices.

Members of the project steering committee include IASC Foundation Chairman Paul Volcker and IASB Chairman Sir David Tweedie. The project included numerous commissioned research papers and a national meeting from 13-15 November 2003 in which Mr. Volcker and IASB Vice Chairman Tom Jones participated. The report of that project, titled The Future of the Accounting Profession, has now been published. Click to Download the Report (PDF 836k) from the American Assembly website.
United Kingdom Image

Acceptability of IFRS for tax purposes in UK

05 Mar 2004

In our news story of 11 December 2003, we reported that UK Chancellor Gordon Brown told the House of Commons that "firms applying IAS will not have to submit a second and separate set of accounts to the Inland Revenue".

The Inland Revenue's Website now has details about what will be proposed. "Finance Bill 2004 will include measures to ensure that companies choosing to adopt International Accounting Standards (IAS) to draw up their accounts will receive broadly equivalent tax treatment to companies that continue to use UK GAAP." The website has a table comparing IAS and UK GAAP and "background on IAS/UK GAAP and why it is important for tax. This section gives details on why tax departs from the accounts and where IAS may lead to changes in the way items are accounted for, in particular the increased use of fair value accounting."
Australia Image

Analysis of ED 6 on exploration and evaluation costs

05 Mar 2004

The latest Deloitte Australian Accounting Alert, (PDF 126k), provides an overview of the requirements and practical implications of IASB ED 6 Exploration for and Evaluation of Mineral Resources.

Click for IASB Project Info.
SEC (old) Image

SEC commissioner speaks about IFRS-US GAAP convergence

04 Mar 2004

In a Speech to the Institute of International Bankers, SEC Commissioner Cynthia A.

Glassman provided an update on "our views on progress towards international accounting standards". An excerpt:

On the subject of international accounting standards, our goal is clearly convergence. The IASB has grown in stature and credibility, and its International Financial Reporting Standards ('IFRS') will become mandatory in the EU in 2005. Our Chief Accountant, Don Nicolaisen, tells me that his staff is spending a lot of time gearing up on IFRS and that all the large accounting firms are developing IFRS training programs in anticipation of the 2005 goal.

European Union (old) Image

The European Commission's strategy on accounting and auditing

04 Mar 2004

In an address to the Institute of Chartered Accountants in England and Wales in London earlier this week, Frits Bolkestein, Member of the European Commission in charge of the Internal Market, Taxation and Customs, spoke about The European Commission's Strategy on Accounting and Auditing.

His presentation covered use of IFRS in Europe, EU measures on statutory audits, and EU/US relations in this area. Download the (PDF 71k). An excerpt:

The Commission has promoted a strategy based on a principles-based approach to financial reporting, designed to reflect economic reality and give a true and fair view of the financial position and the performance of a company. At the heart of our strategy is the application, from 1 January 2005, of International Accounting Standards. I remain firmly committed to this strategy.... Nonetheless, as regards adoption and application of IAS a few stubborn issues remain to be resolved: in particular hedging of core deposits in the context of IAS 39 and the so-called 'insurance mismatch'. A European Consultative Group was recently set up to address these issues. Personally, I am still convinced that acceptable temporary solutions can be found in the short term, pending longer term work by the IASB. I have urged Sir David Tweedie to continue working in the short term with technical experts - around the clock if necessary - to try to find such appropriate solutions. One of the problems we have, unfortunately, is a lack of trust between the interested parties. Due process has not been optimal so far and must improve in future.

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.