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News

IFAC (International Federation of Accountants) (lt gray) Image

IFAC guidance on developing a business plan for SMEs

26 May 2006

The International Federation of Accountants' Professional Accountants in Business Committee has released an information paper that provides guidance on developing a business plan for small and medium entities (SMEs), including how to develop a corporate values statement and manage business risks.

The principles and practices in the paper, entitled Business Planning Guide: Practical Application for SMEs, were designed primarily, but not exclusively, for management operating in SMEs and for the small- and medium-sized accounting practices that service them. Click for Press Release (PDF 55k). You can download the paper without charge from IFAC's On-line Store.
Australia Image

Australia establishes a financial reporting panel

26 May 2006

The Australian Government has appointed the members of a new Financial Reporting Panel (FRP).

The FRP was established under the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 to resolve disputes between the Australian Securities and Investment Commission and a company in relation to the application of accounting standards in its annual financial reports. Click for (PDF 109k).
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Notes from third day of IASB May 2006 meeting

26 May 2006

The International Accounting Standards Board is holding its May 2006 Board meeting at its offices in London on Tuesday through Friday 23-26 May 2006. You will find all of the preliminary and unofficial Notes Taken by Deloitte Observers here. .

The International Accounting Standards Board is holding its May 2006 Board meeting at its offices in London on Tuesday through Friday 23-26 May 2006. You will find all of the preliminary and unofficial Notes Taken by Deloitte Observers here.

IASB Exposure Draft (original) Image

IASB exposure draft on borrowing costs

25 May 2006

The IASB has published an exposure draft proposing to amend IAS 23 'Borrowing Costs' as part of its short-term convergence project with the US Financial Accounting Standards Board (FASB).

The objective of the convergence project is to reduce differences between the IASB's International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP).

The Exposure Draft proposes to require an entity to capitalise borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset as part of the cost of that asset.

The option of immediately recognising those borrowing costs as an expense, which is in the current version of IAS 23, would be removed.

Deadline for comments on the exposure draft is 29 September 2006. Click for IASB Press Release (PDF 57k). The exposure draft may be downloaded without charge from the IASB Website.

 

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Notes from day two of IASB May 2006 meeting

25 May 2006

The International Accounting Standards Board is holding its May 2006 Board meeting at its offices in London on Tuesday through Friday 23-26 May 2006. You will find all of the preliminary and unofficial Notes Taken by Deloitte Observers here. .

The International Accounting Standards Board is holding its May 2006 Board meeting at its offices in London on Tuesday through Friday 23-26 May 2006. You will find all of the preliminary and unofficial Notes Taken by Deloitte Observers here.

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG 2005 annual review

25 May 2006

The European Financial Reporting Advisory Group (EFRAG) has published its Annual Review for 2005 (PDF 1,540k).

EFRAG identifies the following among its 'most notable accomplishments':
  • Enhanced role through entering into the formal 'Working Arrangement' with the European Commission
  • An official IASB invitation to meet regularly with IASB Board Members on the convergence project
  • Setting up of the 'Pro-active Accounting Activities in Europe' project in partnership with national standard setters
EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG appoints performance reporting advisory group

25 May 2006

The European Financial Reporting Advisory Group (EFRAG) has appointed a Pan-European Advisory Group on Performance Reporting as part of its programme pro-active accounting activities.

The project will be led jointly by the Spanish Standard Setter (ICAC) and EFRAG. Click for EFRAG Announcement (PDF 48k).
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Notes from day one of IASB May 2006 meeting

24 May 2006

The International Accounting Standards Board is holding its May 2006 Board meeting at its offices in London on Tuesday through Friday 23-26 May 2006. You will find all of the preliminary and unofficial Notes Taken by Deloitte Observers here. .

The International Accounting Standards Board is holding its May 2006 Board meeting at its offices in London on Tuesday through Friday 23-26 May 2006. You will find all of the preliminary and unofficial Notes Taken by Deloitte Observers here.

PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

PCAOB proposes rules for reporting by accounting firms

24 May 2006

The US Public Company Accounting Oversight Board has proposed rules for annual and special reporting of information and events by registered public accounting firms.

Nearly 1,700 accounting firms are registered with the PCAOB, of which about 40% are non-US firms. The proposed rules implement Section 102(d) of the Sarbanes-Oxley Act of 2002, which provides that each registered accounting firm must submit an annual report to the Board, and may also be required to report more frequently. The reporting framework proposed by the PCAOB includes two types of reporting obligations:
  • First, the proposal would require each registered firm to provide basic information once a year about the firm and the firm's issuer-related practice over the most recent 12-month period.
  • Second, the proposal identifies certain events that, if they occur with respect to a registered firm, must be reported by the firm within 14 days.
In addition, the PCAOB has proposed rules that, in certain circumstances, would allow a successor firm to succeed to the registration status of a predecessor firm following a merger or other change in the registered firm's legal form. Click to download the (PDF 58k). The full text of the proposed rules may be downloaded from http://www.pcaobus.org/Rules/Rulemaking_Docket.aspx. Comments are due 24 July 2006.
SEC (US Securities and Exchange Commission) (dark gray) Image

SEC 2005 annual report

23 May 2006

We have posted the (PDF 1,526k).

The report includes sections on (1) Management Discussion and Analysis; (2) Performance; and (3) Financial Statements, including report of independent auditors, management's response to the audit opinion, and the Inspector General's summary of management challenges. A few items of interest:
  • 74 new foreign private issuers registered US$250 million of securities in 2005 (compared to 63 and $146 million in 2004; 50 and $163 million in 2003; and 70 and $147 million in 2002)
  • 'Milestones for international regulatory cooperation' include:
    • Eliminating GAAP reconciliation requirement for foreign issuers
    • Bilateral regulatory dialogues (China, Japan, EC, CESR)
    • IOSCO MOU on Enforcement Cooperation and Information Sharing
    • IOSCO initiatives on cross-border cases and financial fraud
  • The SEC made 438 requests to foreign securities regulators for enforcement assistance and received 315 requests for assistance from foreign regulators
  • 51% of the approximately 15,000 registered companies had their disclosures reviewed by the SEC (compared to 23% in 2003 and 22% in 2004)
  • 37% of the approximately 35,000 registered investment companies (including mutual funds) had their disclosures reviewed by the SEC (compared to 10% in 2003 and 57% in 2004)
  • 29% of SEC enforcement cases relate to financial reporting and disclosures
  • 99% of enforcement cases were successfully resolved in favour of the SEC
  • Number of on-line searches of SEC EDGAR database: 2002 96.9 million; 2003 141.5 million; 2004 288.9 million; 2005 379.0 million

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