The New Zealand Financial Reporting Standards Board is working toward adopting all IFRS applicable for 2005 adopters as NZ standards – incorporating guidance for public benefit entities – by June 2004. Those standards would be mandatory in 2007 and optional starting 2005. Towards that aim six exposure drafts were released at the end of 2003, and another seven in February 2004. We have posted three new IFRS publications from Deloitte New Zealand:

The 30 January 2004 edition of NZ Accounting Alert which summarises the six December 2003 EDs. A on First-time Adoption of IFRS in a New Zealand context (PDF 649k). which discusses a wide range of business issues relating to the conversion to IFRS in New Zealand (PDF 608k).

The trustees of the IASC Foundation will meet in public session at the IASB's offices in London on the morning of Tuesday 9 March 2004. The agenda includes a report from the IASB Chairman, constitutional review, education programme, and IASCF publications.

That auditing standard, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements, addresses both the work that is required to audit internal control over financial reporting and the relationship of that audit to the audit of the financial statements. Link to PCAOB Press Release.

The balance in question is the relationship of corporate governance (board structures and roles, internal controls, etc.) and corporate performance (strategy and value creation). The report includes analyses of corporate successes and failures in 27 case studies from 10 countries. It introduces the concept of the strategic scorecard and offers guidance on enterprise risk management, the acquisition process, and managing board performance. An appendix features a synopsis of recent international corporate governance developments. The report may be Downloaded from IFAC's Website free of charge. Click here for IFAC Press Release (PDF 54k).

Large US registrants must now begin to comply in their first financial year ending on or after 15 November 2004 (originally 15 June 2004). Link to Press Release and SEC Final Rules Release.

1, References in Auditors' Reports to the Standards of the Public Company Accounting Oversight Board. AS 1 requires that auditors' reports on engagements conducted in accordance with the PCAOB's standards state that the engagement was performed in accordance with the standards of the PCAOB. This replaces previously required references to generally accepted auditing standards. Click to (PDF 73k). Link to PCAOB Press Release.

We have created a new page in our Standards Section summarising the history and requirements of IFRS 2 Share-based Payment, issued by the IASB last week.

The model financial statements are intended to address the presentation and disclosure requirements of International Financial Reporting Standards (IFRS). They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific International Financial Reporting Standard. For the purposes of presenting the income statement, statement of changes in equity, and cash flow statement, the various alternatives allowed for under IFRS for those primary statements have been illustrated.

The agenda for the meeting is:

Monday morning:

• Meeting with the IASCF Trustees Constitution Committee

Monday afternoon (closed to the public):

• SAC's review of own operations and effectiveness

Tuesday morning:

• Accounting and financial reporting by small and medium-sized entities
• IASB Chairman's update

Tuesday afternoon:

• IASB Agenda planning and priorities
• Review of IASB internal procedures

The fair value option was added to IAS 39 by the recent Amendments to IAS 39. But after the amendments were published, some regulatory authorities in Europe questioned whether the Board intended the fair value option to be available for all financial instruments without any constraints. By vote of 11 to 3, the Board agreed in principle to propose amending IAS 39 to restrict the circumstances in which companies may choose the fair value option. The proposal will also include several other clarifications to IAS 39 for matters recently raised by the European Central Bank. Staff will develop an exposure draft for consideration by the Board at its March 2004 meeting.