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Papers from UK conceptual framework public meeting

08 Oct 2006

On 21 September 2006, the United Kingdom Accounting Standards Board (ASB) hosted a public meeting on the proposals in the IASB's and FASB's joint preliminary views discussion paper 'The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information'.

The roundtable was chaired by Ian Mackintosh, Chairman of the ASB. To provide a context for the roundtable, the ASB prepared a background paper discussing some of the issues arising from the preliminary views paper. That paper and other papers and presentations of roundtable participants have been posted to The ASB's Website.
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Wording of audit reports on IFRS-compliant statements

07 Oct 2006

The United Kingdom Auditing Practices Board has published Bulletin 2006/6 Audit Reports on Financial Statements in the United Kingdom.

Bulletin 2006/6 provides illustrative examples of both unmodified and modified auditor's reports of financial statements of companies incorporated in the United Kingdom for periods commencing on or after 1 April 2005. The updated examples of auditors' reports included in the Bulletin take account of the revised standard formulation for expressing compliance with IFRSs as adopted by the European Union. The sample audit reports include reports on:
  • Group financial statements that are prepared using 'IFRSs as adopted by the European Union'
  • Group financial statements that comply with both 'IFRSs as adopted by the European Union' and 'IFRSs as issued by the International Accounting Standards Board' (sometimes called 'dual reporting').
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Heads Up on FASB's new pensions standard

06 Oct 2006

In our news story of 30 September 2006 we reported on FASB Statement No. 158 Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans.

Deloitte & Touche LLP (United States) has published a new edition of the Heads Up newsletter summarising FASB's new standards. Statement 158 requires most publicly-traded companies to fully recognise an asset or liability for the overfunded or underfunded status of their benefit plans in financial statements for years ending after 15 December 2006. For non-public entities, the effective date is fiscal years ending after 15 June 2007. Click to Download the Heads Up Newsletter (PDF 120k).
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PCAOB standards-setting priorities for 2007

06 Oct 2006

The Standing Advisory Group of the US Public Company Accounting Oversight Board (PCAOB) met on 5 October 2006. At that meeting, PCAOB Chief Auditor Thomas Ray outlined the PCAOB's standards-setting priorities for 2007: Four standards projects PCAOB is currently working on: Revision of AS 2 An Audit of Internal Control Over Financial Reporting Performed in Conjunction With an Audit of Financial Statements Principles of Reporting – this standard would reflect FASB Statement 154 Accounting Changes and Error Corrections, including the FAS 154 hierarchy of generally accepted accounting principles. Engagement Quality Review Risk Assessment, including fraud risk assessment Projects beginning over the next year: Related Parties (including consideration of fraud risk factors) Confirmations (including consideration of fraud risk factors) Specialists (including how specialists are used in fair value measurements) Activities removed from the priority list (these were on the 2006 list): Communications with Audit Committees Quality Control Standards Codification of PCAOB standards and authority of PCAOB interim standards Mr.

Ray also noted that the PCAOB is evaluating the need for revisions to or guidance on existing auditing standards on auditing estimates, auditing fair values, and using the work of specialists – all of which are pertinent to the audit of fair value measurements – in light of FASB Statement No. 157 Fair Value Measurements. Click to (PDF 38k).
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Accounting Roundup – September 2006

06 Oct 2006

We have posted the (PDF 329k) published by Deloitte & Touche LLP (USA).

Topics covered in this issue include:

FASB Developments

  • FASB Issues New Pension Standard, Statement 158
  • FASB Issues Statement No. 157 Fair Value Measurements
  • FSP on Planned Major Maintenance Activities
EITF Developments
  • EITF Meeting of 7 September 2006
GASB Developments
  • Statement on Accounting for Sales and Pledges of Receivables and Future Revenues
  • GASB Adds Project to Technical Plan to Enhance Disclosure Requirements of Governmental Pension Plans
AICPA Developments
  • Exposure Draft Proposing New and Revised Interpretations Under Rule 101 Independence
SEC Developments
  • SAB 108 Provides Guidance on Materiality
  • OCA Expresses Its Views on the Appropriate Application of the Stock Option Accounting Literature
  • SEC Moves Forward with Its Commitment to XBRL
International Developments
  • IFRIC Publishes Proposed Guidance on Customer Loyalty Programs
Other Developments
  • Interagency Guidance Issued on Nontraditional Mortgage Products
You will find past issues of Accounting Roundup Here.
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IASC Foundation trustees will meet 26-27 October 2006

05 Oct 2006

The Trustees of the IASC Foundation, under which the IASB operates, will meet in Washington on 26 and 27 October 2006. The agenda of the public portion of the meeting (from 11:15am to 5:00pm on Thursday 26 October) is as follows: Opening/Approval of June Minutes Review of effectiveness of Trustee oversight IASC Foundation position on XBRL Report from IASB Chairman Report from IFRIC For more information: see the IASB Website. .

The Trustees of the IASC Foundation, under which the IASB operates, will meet in Washington on 26 and 27 October 2006. The agenda of the public portion of the meeting (from 11:15am to 5:00pm on Thursday 26 October) is as follows:

  • Opening/Approval of June Minutes
  • Review of effectiveness of Trustee oversight
  • IASC Foundation position on XBRL
  • Report from IASB Chairman
  • Report from IFRIC
For more information: see the IASB Website.
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IASB launches redesigned website

05 Oct 2006

The IASB has redesigned its Website "to help stakeholders follow the development of those items that are on the IASB's work programme and make it easier for users of financial reports to participate in the development of International Financial Reporting Standards".

Click for Press Release (PDF 50k), which describes the new features. Because of the IASB's changes, we have removed from the IAS Plus home page our links to pages on the old IASB website that had comprehensive lists, with download links, for IASB Update, IFRIC Update, IASB meeting observer notes, IFRIC meeting observer notes, IASB Exposure Drafts, IFRIC Draft Interpretations, IASB Discussion Papers, and IASB Invitations to Comment. The Update newsletters are no longer available without subscription. The observer notes and meeting summaries and some of the comment documents are now available on a project by project basis. Go to the Work Plan Page, click on an individual project, and on that project page you will find links to meeting summaries and observer notes. There is also a page with links to Documents Open to Comment.
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Agenda for October 2006 IASB meeting

05 Oct 2006

The International Accounting Standards Board will hold its October 2006 Board meeting at its offices, 30 Cannon Street, London, on Monday through Friday 16-20 October 2006. Presented below is the preliminary agenda for the meeting.

The IASB will also hold a joint meeting with the US Financial Accounting Standards Board at FASB's offices in Norwalk, Connecticut USA on Monday and Tuesday, 23 and 24 October 2006. The joint meeting agenda has not yet been announced.


16-20 October 2006, London

Monday 16 October 2006

Tuesday 17 October 2006 Wednesday 18 October 2006 Thursday 19 October 2006 Friday 20 October 2006
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Study of auditors' liability in the EU

04 Oct 2006

The European Commission has published an independent study on the economic impact of current EU rules on auditors' liability regimes and on insurance conditions in EU member states.

The study analyses the structure of the auditing market and its possible development in the future, describes the existing limitations in the insurance market for international audits, examines the economic needs for limiting auditors' liability, and compares several possible methods for limiting liability. Key conclusions of the study (not necessarily the views of the Commission) are:
  • The international market for statutory audits of large and very large companies is highly concentrated and dominated by the Big-4 networks. The likelihood of new entrants into this market is very limited in the coming years. Additionally, under the current circumstances, middle-tier firms are unlikely to become a major alternative if a Big-4 network fails.
  • The level of auditor liability insurance available for higher limits has fallen sharply in recent years. The remaining source of funds to face claims may essentially be the income of partners belonging to the same international network. Constantly large claims might therefore put at risk an entire network.
  • The failure of a network could lead to difficult consequences for the wider economy like a significant reduction in large company statutory audit capacity possibly creating serious problems for companies whose financial statements need to be audited.
  • A limitation on auditor liability would reduce this risk. While there exist a number of variants of statutory audit liability limitation, the diversity of circumstances in terms of both audits and company size is such that it is unlikely that a one-size-fits-all EU-wide approach is the most useful.
The Commission intends to issue a report based on this study before the end of 2006, and to invite comments. Click for:
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New IFACnet knowledge base for accountants in business

03 Oct 2006

The International Federation of Accountants (IFAC), in collaboration with 13 member organisations, has developed a web-based knowledge base for professional accountants in business, to be known as IFACnet –

The objective is "to provide one-stop access to leading-edge articles, good practice guidance, and tools and techniques for accountants employed in commerce, industry, the public sector, education, and the not-for-profit sector". IFACnet will include information on strategy, budgeting and planning, corporate governance, risk management, and professional development. IFACnet includes shared electronic resources from IFAC and the 13 participating organisations. Expansion is planned for 2007. There is no fee to use IFACnet, although certain search results may identify documents or publications available for purchase. Click for Press Release (PDF 92k).

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