News

EU formally adopts revised IAS 24/amendment to IFRS 8 and amendments to IFRIC 14

20 Jul 2010

The European Union has published the Commission Regulation (EC) No 632/2010 (Revised IAS 24 Related Party Disclosure and Amendment to IFRS 8 Operating Segments) and the Commission Regulation (EC) No 633/2010 (Amendments to IFRIC 14 Prepayments of a Minimum Funding Requirement) endorsing the amendments adopted by the IASB in November 2009. Thus currently only three IASB pronouncements await endorsement action.

Deloitte comment letter on the fair value option for financial liabilities

17 Jul 2010

Deloittes' IFRS Global Office has submitted a letter of comment to the IASB on Exposure Draft 2010/4 Fair Value Option for Financial Liabilities.

Below is an excerpt from the letter:

We agree with the Board's objective to address the issue of own credit risk in the measurement of financial liabilities and further agree with the Board's decision to retain the basic model contained in IAS 39 Financial Instruments: Recognition and Measurement for classifying and measuring financial liabilities. However, we disagree with the Board's conclusion that credit risk can be identified following the approach set out in IFRS 7 Financial Instruments: Disclosures. The Board needs to articulate clearly the principle that underlies the mechanics of identification of credit risk and we believe that it is only the changes in fair value due to changes in one's own credit risk that should be identified separately and reported in other comprehensive income (OCI). In our view, own credit risk represents the risk that a reporting entity will not perform its financial obligations under a contract.

All of our past letters of comment to the IASB are Here.

Click for: ED 2010/14, Fair Value Option for Financial Liabilities (IASB website).

CESR members elect new Chair and Vice Chair

17 Jul 2010

On 16 July 2010, the members of the Committee of European Securities Regulators (CESR) elected Carlos Tavares, Chairman of the Comissão do Mercado de Valores Mobiliários at the CMVM, as Chair of CESR and Jean Guill, Director General of the Commission de surveillance du secteur financier (CSSF), as Vice Chair of CESR.

Click for: CESR Press Release (PDF 137k) (ESMA website).

Canadian Securities Administrators publishes results of its continuous disclosure review program

17 Jul 2010

On 7 July 2010, the Canadian Securities Administrators (CSA) published CSA Staff Notice 51-3324 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2010.

The Notice summarizes the results of the CSA's continuous disclosure (CD) review program, which included the following issue-oriented reviews:

Certification
IFRS Transition Disclosure
Executive Compensation
Mining Technical Disclosure
Oil and Gas Technical Disclosure
Going Concern
Asset Impairment
Forward-Looking Information
Press Releases
Defined Benefit Pension Plans
Complaints

You will find more information about financial reporting in Canada on our Canada Page.

Click for: CSA Staff Notice 51-3324 Continuous Disclosure Review Program Activities for the fiscal year ended March 31.

Deloitte comment letter on conceptual framework for financial reporting

16 Jul 2010

Deloitte's IFRS Global Office has submitted a letter of comment to the IASB on Exposure Draft 2010/2 Conceptual Framework for Financial Reporting – The Reporting Entity.

Below is an excerpt from the letter:

We generally agree with the proposals. In particular, we agree with the proposed definition of a reporting entity and with the requirement that a parent should present consolidated financial statements when it controls another entity. However, we do not believe that it is appropriate to define the concept of control as part of this chapter of the Conceptual Framework.

We agree with the conclusion that parent-only financial statements may provide useful information. However, we do not believe that the Conceptual Framework should specify the timing and the manner in which parent-only financial statements should be presented in relation to consolidated financial statements.

All of our past letters of comment to the IASB are Here.

Click for: ED 2010/12 Conceptual Framework for Financial Reporting - The Reporting Entity (IASB website)

US reform act introduces new disclosures for payments to governments, puts pressure on IASB on PWYP disclosures

16 Jul 2010

The US Senate has passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act, subject to Presidential approval, introduces a large number of reforms to the US financial system in regulation, investor and consumer protection, corporate governance and reporting.

The Act also introduces new disclosures in relation to extractive activities around amounts paid to governments. The Act requires:

Public Disclosure. Requires public disclosure to the United States Securities and Exchange Commission (SEC) of payments made to the US and foreign governments relating to the commercial development of oil, natural gas, and minerals
SEC Filing Disclosure. The SEC must require those engaged in the commercial development of oil, natural gas or minerals to include information about payments they or their subsidiaries, partners or affiliates have made to the US or a foreign government for such development in an annual report and post this information online.

These reforms effectively introduce the 'Publish What You Pay' (PWYP) proposals which are currently being considered as part of the IASB's Extractive Activities project. There have already been calls for the IASB to adopt the equivalent requirements in the Discussion Paper as soon as possible. Any response by the IASB would be limited by its due process requirements, including in the first instance a decision by the IASB to take the Extractives Activities project onto its agenda.

This development may make constituent comment on the IASB Discussion Paper more important. IASB DP/2010/1 Extractive Activities is open for comment until 30 July 2010.

Related information: Our Extractives Activities project page

IFRS insurance accounting newsletter

15 Jul 2010

Deloitte (United Kingdom) has published the July 2010 issue of Insurance Accounting Newsletter. This issue is titled Last minute convergence and focuses on the discussions of the three special meetings and the normal Board monthly meeting in June 2010 during which the Boards resolved a number of major longstanding disagreements.

The expected publication date of the Exposure Draft is July 2010 and further public Board meetings are not expected to take place before the Boards vote on the ED. Click to download Issue 16 of the Insurance Accounting Newsletter (PDF 125k). There are permanent links all issues of the newsletter on Here.

Proposed international auditing standard on using the work of internal auditors

15 Jul 2010

The International Auditing and Assurance Standards Board (IAASB) has proposed a revised International Standard on Auditing (ISA) that addresses the external auditor's responsibilities relating to using internal auditors' work during an audit.

The proposed standard, ISA 610 Using the Work of Internal Auditors, aims to enhance the external auditor's performance by providing a stronger framework for evaluating and using the work and assistance of an entity's internal auditors. Click here for IAASB Press Release (IFAC website), which includes a link to download the proposal. Comments are due by 15 November 2010.

Agenda for July 2010 IASB meeting has been changed

14 Jul 2010

The agenda for the July 2010 IASB meeting has been changed. There have been changes to the agenda and running order on Thursday 22 July 2010 and Friday 23 July 2010. Consolidations will now be an IASB-only meeting.

We have updated our page with the Next Meeting Agenda accordingly.