Major sections include updates on FASB, GASB, SEC, and PCAOB; an international update; and some new Deloitte & Touche guidance materials.

This 31-page quarterly review edition includes articles from issues of Accounting Roundup dated 20 January through 1 April 2003, updated where appropriate. Links have been added to locations where additional information can be found for each topic.

It is helpful for the auditor to discuss financial statements that state they have been prepared in accordance with IFRSs and a national financial reporting framework with management and those charged with governance. The purpose of the discussion is to advise management and those charged with governance of the possibility of a qualified opinion or adverse opinion on compliance with one or both of the financial reporting frameworks, given that the ability to simultaneously comply fully with IFRSs and a national financial reporting framework is unlikely. IAPS 1014 supplements guidance provided in International Standard on Auditing 700, The Auditor's Report on Financial Statements. The IAASB has also released two exposure drafts regarding assurance engagements and audits of small business. All IAASB documents are available without charge on the IAASB's Web Pages. Click for IFAC News Release.

Glassman presented a comprehensive update on the SEC's implementation of the Sarbanes-Oxley Act.

The meeting will be held at the IASB's offices in London. Agenda topics are as follows (click for Details):

• Extractive Industries
• Joint Ventures
• Business Combinations – Phase II
• Amendments to IAS 32, Financial Instruments: Disclosure and Presentation
• Amendments to IAS 39, Financial Instruments: Recognition and Measurement
• Insurance Contracts – Phase I
• Improvements Project
• Convergence
• Share-Based Payment
• IFRIC Update
• First-Time Adoption of IFRSs (if required, the Board will discuss matters arising from the Board's review of a pre-ballot draft of the final Standard)

The comparison identified 81 differences between IFRS and US GAAP that existed at that time. We have prepared a Status Report as of April 2003 on what, if anything, is being done by either the IASB or the FASB relating to those differences (plus several others subsequently added to the list). [Note: This item has become out of date. You can find our GAAP Comparisons Here, including the latest IFRS-US comparison.]

We have posted the comment letter of the European Financial Reporting Advisory Group (EFRAG) to the IASB on ED 3, Business Combinations, and the IASB's proposed amendments to IAS 36 and IAS 38.

The SIC Interpretations have not yet been adopted under the law, but that is expected to happen soon.

 

We have updated our Chronological and Topical project pages for IFRIC agenda projects to reflect discussions at the April 2003 IFRIC meeting.

However, we are concerned with some aspects, such as the subsequent accounting for contingent liabilities, the prohibition on amortising goodwill in all circumstances, the proposed treatment for 'negative goodwill', and the determination of cash-generating units. We are also concerned with the timing of the various projects on business combinations. An exposure draft on application of the purchase method, being developed jointly with the FASB, is expected in the second quarter of 2003, with a final IFRS in 2004. Based on the IASB's tentative decisions in that project, certain principles may contradict or significantly alter the decisions in ED 3. Therefore, we suggest that it may be advantageous to delay issuance of a final Standard until completion of the project on the application of the purchase method – to minimise any confusion with the issuance of two standards on business combinations within a short period of time.