The exposure draft proposes a principles-based framework for the 'public interest' concept, which can be applied to standard-setting, governance processes, policy analysis, and regulatory issues. Although mainly designed for use by IFAC itself, IFAC considers it may also be useful to the accountancy profession as well as to policymakers, regulators, and business leaders.

IFAC considers that the accountancy profession, in serving the public interest, should be evaluated against three criteria:

• consideration of costs and benefits for society as a whole
• adherence to democratic principles and processes
• respect for cultural and ethical diversity.

Comments on the exposure draft are requested by 25 March 2011. Click for IFAC press release (link to IFAC website).

The International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) will hold a joint meeting in London on 12 November 2010.

Presented below is the agenda for the meeting.

IASB/EFRAG joint meeting 12 November 2010, London
Is there a June 2011 deadline? Revenue recognition Leases Financial instruments Hedge accounting Impairment Other financial instruments issues Consolidation Insurance Financial statements presentation (including OCI)

Click for EFRAG press release (link to EFRAG website).

The Trustees initiated this review as a result of the second Constitution Review that was completed earlier this year.

The Trustees are seeking views of stakeholders on four strategic fronts:

• the IFRS Foundation's mission
• governance
• the standard-setting process
• financing of the IFRS Foundation

The Trustees invite public comment on the consultation document by 31 December 2010 and expect to conclude the strategy review during their meeting in March 2011. Click for:

• IFRS Foundation press release (PDF 36k)
• Strategy review consultation document (PDF 46k)

 

This newsletter describes the recently published request for views that seeks input from stakeholders on the time and effort that will be involved in implementing the new IFRSs expected to be issued next year. The request for views asks questions about the appropriate transition methods and effective dates for the future standards and includes considerations relating to convergence with US GAAP and first-time adopters of IFRSs.

Click for:

• IFRS in Focus Newsletter – IASB issues request for views seeking input on transition and effective dates for certain IASB projects (PDF 97k)
• Past editions of IFRS in Focus
• our earlier story on the publication of the request for views

 

The topics discussed were as follows (click through to detailed Deloitte observer notes for that topic):

• IFRS 2 presentation
• IFRS 2 Share-based Payment – Vesting and non-vesting conditions
• Review of Tentative Agenda Decisions published in September IFRIC Update
• New Items for Initial Consideration

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

This IFRS Taxonomy release reflects Disclosures – Transfers of Financial Assets (Amendments to IFRS 7), which was issued by the IASB in October 2010.

Click for:

• IFRS Foundation press release
• IFRS Taxonomy interim release: Disclosures – Transfers of Financial Assets (Amendments to IFRS 7)
• IFRS Taxonomy 2010

 

The proposed ASU includes a comprehensive new model of accounting for financial assets and financial liabilities that addresses (1) recognition and measurement, (2) impairment, and (3) hedge accounting.

Although the FASB's proposed ASU is part of a joint project with the IASB, many respondents have expressed concern about the lack of convergence between the proposed ASU and the IASB's approach to the accounting for financial instruments.

Click for:

• Heads Up newsletter Constituents Share Views on the FASB's AFI Project (PDF 136k)
• Our Hedge Accounting page
• Our earlier story on the FASB proposed ASU

Of particular interest may be a research paper prepared on accounting issues associated with Islamic finance, including consideration of the application of IFRSs to Islamic finance transactions. An extract follows:

It is noted that in jurisdictions where Shariah interpretations espouse an approach that differ from IFRS requirements, standard-setters may have to accede to such interpretations, and allow or require departures from those requirements for Islamic financial transactions. Such departures may have implications on plans for convergence. This Paper concludes that the challenge to standard-setters and stakeholders is to enhance the cross-border comparability of Islamic financial transactions, while being mindful of religious sensitivities. Although IFRS may be touted as being internationally accepted, there is resistance by those who believe that some IFRS principles are irreconcilable with their interpretation of Shariah, and that separate financial reporting principles are warranted.

The website (including access to the research paper noted above) can be found at www.aossg.org. We maintain an AOSSG page Here.

The deadline for registration as participant or observer has now been extended until 15 November 2010.

 

• Current status - brief background and current steps being undertaken
• Key decisions and proposals - high-level summaries of decisions to date and any consultation documents published
• 'Thinking ahead' - key considerations for entities given the status of the project
• Next steps - forthcoming deadlines or due process steps to be undertaken and guidelines as to when the project may be finalised.

We've posted 17 separate documents, covering the key topics including revenue recognition, leases, insurance contracts, consolidation, financial instruments and more.

The documents will be updated on a regular basis as developments occur and represent a great way to stay in touch with particular IASB projects. Click here to access IASB Project Insights.