Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July, and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation. The topics covered in the July 2010 webcast:

• Latest IFRS developments
• IFRS 3(2008) – now in force
• ED/2010/6 Revenue from Contracts with Customers
• New UK Corporate Governance Code
• Other UK GAAP developments

To access the recording Click Here. There is a permanent link on our UK Country Page.

 

The ED proposes that companies disclose sensitivity information ('measurement uncertainty analysis') about all 'Level 3' fair value measurements included in financial statements - not just for financial instruments, but also other items such as investment properties, biological assets and property, plant and equipment measured on the revaluation basis.

The questionnaire is targeted at users of financial statements, particularly analysts, and requests feedback in areas such as:

• The usefulness of 'measurement uncertainty analysis' to different categories of assets and liabilities
• How measurement uncertainty analysis information is used - 'worst case' or 'best case' scenarios, or for other uses
• Whether information presented by class of asset and liability is sufficient
• Additional disclosures that would be useful.

The deadline to complete the questionnaire is 7 September 2010. The questionnaire can be accessed on the IASB website. More information on the proposals is available in our IFRS in Focus newsletter (PDF 60k) and our Fair value measurement project page.

The guide has been published by the CICA's Canadian Performance Reporting Board and is available online at www.cica.ca/cpr. More information on IFRS in Canada can be found on our Canada country page.

The board will set Bhutanese accounting and auditing standards in line with international standards. So far there is no defined Bhutanese GAAP. The provision of the Companies Act of Bhutan (2000) that listed companies must present their financial statements in compliance with GAAP is usually construed to mean India GAAP. The AASBB will also develop plans for the formation of chartered institutes and chartered accountants qualification in the country and harmonise financial reporting formats.

The purpose of these examples is to illustrate the use of the IFRS Taxonomy in financial statements, in accordance with the XBRL architecture outlined in The IFRS Taxonomy Guide. Click Here to access the illustrative examples in XBRL on the Foundation's website.

 

Click to download the Endorsement Status Report as of 26 July 2010 (PDF 122k). Currently, the following two IASB pronouncements await endorsement action:

• IFRS 9 Financial Instruments
• Improvements to IFRSs

You can always find the endorsement status report Here.

 

The proposed standard would supersede PCAOB AU Section 330, The Confirmation Process, which establishes the requirements for and provides guidance on the confirmation process in audits.

An extract from the newsletter:

It appears likely that the provisions in the proposed standard expanding required confirmation procedures will result in (1) an overall increase in confirmation requests being sent by auditors and therefore needing to be responded to by confirming parties and (2) requests being made of confirming parties for confirmation of data or information that may not have been historically requested.

Click for:

• Heads Up Newsletter PCAOB Issues Proposed Standard on Audit Confirmations (PDF 128k)
• PCAOB Exposure Draft (PDF 295k)
• Heads Up archive
• Our PCAOB page

 

Mr Jean-Claude Trichet, President of the European Central Bank and Chairman of the Group of Governors and Heads of Supervision, said that "the agreements reached today are a landmark achievement to strengthen banking sector resilience in a manner that reflects the key lessons of the crisis."

The proposals change the treatment of various accounting balances, including an override of local GAAP in favour of IFRSs in relation to some intangibles. Some IFRS-related extracts from the proposals follow:

Allow IFRS treatment where different from national GAAP (eg software) A level playing field is established through an option to use IFRS in determining the level of intangible assets if national GAAP results in a wider range of assets (eg certain software assets) being classified as intangible. Definition of the leverage ratio For all derivatives (including credit derivatives), apply Basel II netting plus a simple measure of potential future exposure based on the standardised factors of the current exposure method. This ensures that all derivatives are converted in a consistent manner to a "loan equivalent" amount... [This] would also strengthen the treatment of derivatives relative to the purely accounting based measure (and provide a simple way of addressing differences between IFRS and GAAP). Forward looking provisioning While capital focuses on unexpected losses, the Committee also has developed a concrete proposal to operationalise the expected loss approach to provisioning proposed by the IASB. The Committee sent a comment letter to the IASB on 30 June 2010 in which it spelled out its proposed approach. The Committee has been in close dialogue with the IASB on this topic.

The Committee is expected to finalise the regulatory buffers before the end of this year. The Governors and Heads of Supervision agreed to finalise the calibration and phase-in arrangements at their meeting in September. Click for:

• Annex summarising the key broad agreements of the Governors and Heads of Supervision (PDF 47k)
• Press release (link to Bank for International Settlements website)
• Our credit crunch page
• Our IAS 39 impairment and provisioning page

 

The podcast is available on the IFRS Foundation website. Our Deloitte observer notes from the meeting are available here.

Among the potential macro-prudential tools suggested as additions to the UK's economic policy framework, is forward-looking loss provisioning. The dynamic provisioning system employed by Spain during the financial crisis is offered as a useful practical example. This system links loss provisions to the credit cycle, so banks are forced to hold higher provisions when credit is growing strongly. The IASB has discussed a dynamic provisioning model, but has decided against it in favour of its expected loss model. Click for:

• Consulation document A new approach to financial regulation: judgement, focus and stability (PDF 1.307k)
• Press release (PDF 44k)
• Our credit crunch page
• Our IAS 39 impairment and provisioning page