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Public sector standards to be updated for harmonisation with IFRS

11 Aug 2003

We have posted the August 2003 edition of the IFAC Public Sector Committee Newsletter (PDF 35k).

The PSC develops accounting standards for national, regional, and local governments and their agencies based (to the extent appropriate in the public sector) on IFRS. At its July 2003 meeting, the PSC considered staff papers that outlined likely differences between existing International Public Sector Accounting Standards (IPSASs) and their equivalent IFRSs expected to be in place as at March 2004, and identified key IFRSs for which equivalent IPSASs had not yet been developed. The PSC directed its staff to prepare, for consideration at the next PSC meeting, a paper that would outline alternative ways of updating IPSASs to ensure they remain harmonised with IFRSs where appropriate for the public sector. Copies of PSC standards and proposals are available free of charge at PSC's Website. Click for More Information about the PSC.
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Changes to IASB's project timetables

10 Aug 2003

The IASB has made the following changes to its project Timetables: Final Standards resulting from the Improvements project moved to 4th quarter 2003. Final Standards on Amendments to IAS 32 and IAS 39 moved to 4th quarter 2003 (with a further revision in 1st quarter 2004 on macro hedging). Final Standards on Share-Based Payment moved to 1st quarter 2004. Exposure Draft on Business Combinations Phase II – Application of the Purchase Method moved to 4th quarter 2003. Concepts of Revenue, Liabilities, and Equity moved to an unspecified period after 1st quarter 2004. Exposure Draft on replacement of IAS 20 (Government Grants) – part of the IASB's Convergence Project – moved to an unspecified period after 1st quarter 2004. Exposure Draft on Consolidation Including SPEs to be issued in 2004 after 1st quarter. An Exposure Draft on Reporting Comprehensive Income (Performance Reporting) is still planned for 4th quarter 2003 but that is "subject to review in August 2003". .

The IASB has made the following changes to its project Timetables:

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Inaugural edition of EITF Roundup

08 Aug 2003

Deloitte & Touche (USA) has published the first newsletter in a new series called EITF Roundup.

The newsletter will be published after each meeting of FASB's Emerging Issues Task Force to provide an overview of the Issues discussed, consensuses reached, and administrative matters discussed at the EITF meeting. We have posted the August 2003 Edition summarising the 31 July 2003 EITF meeting. EITF Roundup complements our Accounting Roundup Series, which covers current accounting initiatives of the FASB, GASB, AICPA, SEC, and IASB. If you need more in-depth information on accounting standards than these newsletters provide, consider subscribing to our Technical Library: The Deloitte Accounting Research Tool. Technical Library is a comprehensive online library of accounting and financial disclosure literature, including official material and Deloitte & Touche interpretive guidance.
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IVSC proposes guidelines for valuing property under IFRS

07 Aug 2003

The International Valuation Standards Committee (IVSC) has published a Consultation Paper proposing guidance on the valuation of owner-occupied property under IAS 16 'Property, Plant and Equipment'.

The IVSC's goal is consistent measurement of property that is carried at revalued amount under IAS 16. Click for IVSC Press Release (PDF 41k) and IVSC Consultation Paper (PDF 164k).

John Edge, Chairman of the IVSC said:

Although IAS 16 allows property to be carried at fair value in the accounts, it has no guidance on how to arrive at that fair value. Yet the national accounting and valuation standards in those countries that currently permit revaluation of assets have some significant differences. For example, 'depreciated replacement cost' is defined differently in different countries. Or, in some countries owner-occupied property is valued as if vacant; in others, it is valued on the basis of a capitalised notional lease. This can lead to differing valuation conclusions although all will be reported as 'fair value'.

 

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Companies requiring "subcertifications" of financial information

06 Aug 2003

A survey of 555 corporate treasury and finance officials by the Association of Finance Professionals has found a substantial "trickle-down effect" of the CEO-CFO financial statement certifications required by the Sarbanes-Oxley Act of 2002. Over two-thirds of respondents from both public and private companies are required to certify the information they provide – most commonly account balances and specific disclosures in the notes to financial statements or MD&A.

Click to View the Survey Report (PDF 89k) on the AFP website or AFP Press Release. The AFP has 14,000 members worldwide.
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Latest Accounting Roundup newsletter is available

06 Aug 2003

We have posted the 5 August 2003 Edition of Accounting Roundup from Deloitte & Touche (USA).

Topics covered in this 13-page newsletter include a summary of the 31 July 2003 EITF meeting; FASB Staff Positions recently issued or proposed; summaries of recent FASB meetings; SEC's study on adoption of principles-based accounting standards; recent and proposed PCAOB rules; AICPA SOP 03-1 on Accounting and Reporting by Insurance Enterprises for Certain Nontraditional, Long-Duration Contracts and for Separate Accounts; IASB exposure drafts ED 4 and ED 5; and summaries of the July 2003 IASB and IFRIC meetings.
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Deloitte & Touche publication on non-GAAP financial measures

06 Aug 2003

In January 2003, the SEC adopted new rules that address public companies' disclosure of financial information calculated and presented on the basis of methodologies other than GAAP (click for SEC Press Release).

A new disclosure regulation, Regulation G, requires companies to provide certain disclosure whenever they publicly disclose or release non-GAAP financial measures. In June 2003 the SEC staff released "FAQs" relating to the new rules (see links in our News Story of 14 June 2003). Deloitte & Touche has published a brochure that summarises and clarifies significant provisions of the rules based on the FAQ and discussions with the SEC staff. Several sections of the brochure focus on foreign private issuers. Click here to download our 12-page brochure (PDF 132k).
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Non-listed companies in Germany will be permitted to use IFRS

05 Aug 2003

Non-listed companies in Germany will be permitted to use IFRS, rather than German GAAP, in preparing their consolidated financial statements starting in 2005. For both listed and non-listed companies, statutory (individual company) financial statements would continue to follow German GAAP, though IFRS accounts could be presented in addition.

These provisions were set out in a joint announcement by the German Ministries of Justice and Finance in February, updated in May, but not previously reported on IASPlus. Listed companies were already required to switch to IFRSs in their consolidated statements starting in 2005 under the European Accounting Regulation.

 

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A view on why companies want IFRSs

05 Aug 2003

In an article titled "The FASB and the Capital Markets" in The FASB Report (posted on FASB's Website), former FASB Board member John M.

"Neel" Foster discusses the importance of neutral financial reporting to the efficient functioning of capital markets. Regarding IFRS, Mr. Foster states:

Another indication of the importance of credible financial information can be found in the recent call for a single set of international accounting standards that could be used by everyone to raise capital in any country without reconciliation to U.S. generally accepted accounting principles (GAAP). Much of the clamor has occurred outside the U.S., and the reason this issue is so important to offshore companies is that they want to raise capital in the U.S., but some do not want to have to file under GAAP and other SEC disclosure requirements.

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Europe-Africa edition of July 2003 IASPlus newsletter

05 Aug 2003

We have posted the of our IASPlus Newsletter (PDF 273k).

Also, all past editions of our newsletter can be found on This Page.

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