IFRS Insights (PDF 397k) is a newsletter on IFRSs aimed at US companies. This issue includes:

• The latest FASB and IASB convergence activities; a detailed table with the target date for each convergence project is included
• Technology considerations related to the SEC's "dual-reporting" requirements
• An overview of the financial statement presentation project
• An industry update for power and utilities companies

We have Permanent Links to all IFRS Insights on our USA country page.

 

Although this is not a joint project with the IASB, the FASB intends to consider how the proposed improvements are similar to or different from IFRS.

When the IASB and FASB decided in June 2010 to amend their convergence workplan, the IASB's derecognition project was removed from the current priority list to be reconsidered again sometime after June 2011. Prior to this workplan change, the IASB had issued ED/2009/3 Derecognition, which would have changed the way in which repos where accounted for, proposing to treat these transactions as sale transactions.

Constituents overwhelmingly disagreed with the proposed approach as described in the ED, noting these transactions were almost universally perceived as financing and that their treatment as sale transactions would increase volatility in profit or loss that had no economic substance. The IASB and FASB had also debated alternative accounting treatments for repos in light of this constituent feedback before deferring the project.

Click for:

• Summary of FASB meeting on 28 July 2010 (link to FASB website)
• Our derecognition project page (summary of discussions on repos and derecognition in general)

 

The IASB considered four alternatives of how to move forward with the project:

• a "fast-tracked" standard,
• an interim solution for pending initial adopters of IFRS while later considering a longer term solution,
• an amendment to IFRS 1 to permit the continued use of previous national GAAP for rate regulated activities for first time adopters, or
• continue with the existing project under its current timeframe.

The IASB finally agreed to continue its current project under the existing timeframe without amending IFRS 1.

The IAASB is the independent standard-setting board supported by IFAC. Prof. Schilder's reappointment is for the period 2012–2014.

 

Click for IFAC press release (link to IFAC website). Background information about the IAASB is available on our IAASB page.

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.