This is the Asia-Pacific edition, which includes all of the general IASB/IFRS update information plus jurisdiction updates for that region. Our Europe-Africa and Americas editions will be published soon. Special features of this edition include summaries of our comment letters on business combinations and share-based payment, status reports on each IASB agenda project, and updates on events in Europe and the United States.

Heretofore, for over 60 years, the American Institute of CPAs has promulgated auditing standards in the United States. The Financial Accounting Standards Board will continue to set accounting standards. All auditors of public companies will need to follow PCAOB standards. On an interim basis, compliance with existing generally accepted auditing standards is required. The PCAOB said its standard setting process will continue to involve participation, dialogue and open observation by a large and diverse group of participants. The PCAOB's auditing standards will include matters of quality control, professional ethics, and independence of auditors from companies whose financial statements they audit. Though the PCAOB has authority to regulate all auditors – American or foreign – of all public companies in the United States, the extent to which PCAOB auditing standards would apply to foreign auditors remains to be addressed. The PCAOB also voted to finance its operations by fees paid by publicly traded companies in proportion to their size. Auditing firms will also pay fees to fund the PCAOB's auditor registration system.

We have updated our summaries of accounting standards activity in China, India, Japan, New Zealand, Singapore, Taiwan, and Vietnam.

The following standards have now been approved (Nos. 02, 03, 04, and 14 effective for 2002 reporting, the others for 2003 reporting):

• VAS 01, Framework
• VAS 02, Inventories
• VAS 03, Tangible Fixed Assets
• VAS 04, Intangible Fixed Assets
• VAS 06, Leases
• VAS 10, The Effects of Changes in Foreign Exchange Rates
• VAS 14, Revenue and Other Incomes
• VAS 15, Construction Contracts
• VAS 16, Borrowing Costs
• VAS 24, Cash Flow Statement

You can download a Comprehensive Summary of the New VAS (PDF 187k) prepared by VACO-Deloitte Touche Tohmatsu. Click here for Vietnam Information.

In summary (see pages 2 and 55 to 58 for details):

• From financial years beginning on or after 1 January 2004, companies on the Nextprime and Nexteconomy segments must publish quarterly reports.
• In the second quarterly report for the financial year beginning on or after 1 January 2004, the company must publish a note describing the relevant effects of switching to IFRS on a later date on the IFRS opening balance sheet and the income of the current period. This information should be updated in subsequent quarters as needed. This only applies to entities that have not already published their latest annual consolidated financial statements in accordance with IFRS.
• Auditors must perform a limited review on the second quarter report.

McDonough as its nominee to be the new Chairperson of the five-member Public Company Accounting Oversight Board (PCAOB) established pursuant to the Sarbanes-Oxley Act of 2002. Mr. McDonough is President of the New York Federal Reserve Bank. His background is in banking and government. The Commission made this selection after consultation with the Federal Reserve Chairman and the Secretary of the Treasury. Click for SEC Press Release. Background on PCAOB. Link to PCAOB Website.

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.