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News

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

Updated EFRAG endorsement status report

01 Aug 2006

The European Financial Reporting Advisory Group has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations, and amendments.

Click to download the Endorsement Status as of 25 July 2006 (PDF 28k). Currently, the following IASB pronouncements have not yet been endorsed for use in Europe:
  • IFRIC 8 Scope of IFRS 2
  • IFRIC 9 Reassessment of Embedded Derivatives
  • IFRIC 10 Interim Financial Reporting and Impairment

 

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Summary of ARC 7 July 2006 meeting

01 Aug 2006

The European Commission has posted a (PDF 39k).

Matters discussed include:
  • Roundtable on Consistent Application of IFRSs (click for Info on the Roundtable)
  • IFRIC working procedures and due process (see our news story of 7 May 2006.
  • Equivalence between IFRSs and third country GAAP, in particular US GAAP
  • IASB financing
  • Update on the Commission's project to consolidate the various Regulations by which IFRSs have been endorsed in the past into a single Regulation containing all endorsed IFRSs
  • Creation of a 'Standards Advice Review Group'. The ARC summary states:

    "The creation of the Group was foreseen in the Commission-EFRAG Working Arrangement signed earlier this year. It had not been possible to formally adopt EFRAG as a technical committee of the Commission and this working arrangement had been the alternative, suitable compromise."

  • Service concession arrangements
  • Segment reporting
The next ARC meeting is planned for 26 September 2006.
IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

Updated summary of issues not added to IFRIC agenda

01 Aug 2006

We have updated our Summary of Issues Not Added to IFRIC's Agenda to reflect IFRIC's final decision in July 2006 not to add the following topic to its agenda: IAS 17 Leases – Recognition of contingent rentals The IFRIC did not finalise its rejection of a topic related to IFRS 2 Share-based Payment – Fair value Measurement of Post-vesting Transfer Restrictions, which the IFRIC had proposed to reject in March 2006. Instead, the IFRIC re-exposed its reasons for rejection in the July 2006 Edition of IFRIC Update (downloadable from the IASB website). .

We have updated our Summary of Issues Not Added to IFRIC's Agenda to reflect IFRIC's final decision in July 2006 not to add the following topic to its agenda:

  • IAS 17 Leases – Recognition of contingent rentals
The IFRIC did not finalise its rejection of a topic related to IFRS 2 Share-based Payment – Fair value Measurement of Post-vesting Transfer Restrictions, which the IFRIC had proposed to reject in March 2006. Instead, the IFRIC re-exposed its reasons for rejection in the July 2006 Edition of IFRIC Update (downloadable from the IASB website).
IFAC (International Federation of Accountants) (lt gray) Image

Revised definition of 'network firm' in IFAC ethics code

01 Aug 2006

IFAC's International Ethics Standards Board for Accountants (IESBA) has revised the Code of Ethics for Professional Accountants by updating the definition of a network firm.

Network firms are required to be independent of an audit client of another firm within the network. Under the revised definition, a network firm is a firm or entity that belongs to a network. A firm can be a sole practitioner, partnership, or corporation of professional accountants or an entity that controls or is controlled by such parties. A network is a larger structure:
  • that is aimed at co-operation, and
  • that is clearly aimed at profit or cost sharing or shares common ownership, control or management, common quality control policies and procedures, common business strategy, the use of a common brand-name, or a significant part of professional resources.
The revised definition is effective for assurance reports dated on or after 31 December 2008. Click for the IFAC Press Release (PDF 79k), which includes a link to download the revisions.
SEC (US Securities and Exchange Commission) (dark gray) Image

US SEC expands disclosures about executive compensation

01 Aug 2006

The US Securities and Exchange Commission has adopted changes to the rules requiring disclosure of executive and director compensation, related person transactions, director independence and other corporate governance matters, and security ownership of officers and directors.

The changes would affect disclosure in proxy statements, annual reports, and registration statements, as well as the current reporting of compensation arrangements. The rules would require that most of this disclosure be provided in plain English. Click for (PDF 69k). In announcing the new disclosure requirements, SEC Chairman Christopher Cox said:

With more than 20,000 comments, and counting, it is now official that no issue in the 72 years of the Commission's history has generated such interest. The better information that both shareholders and boards of directors will get as a result of these new rules will help them make better decisions about the appropriate amount to pay the men and women entrusted with running their companies. Shareholders need intelligible disclosure that can be understood by a lay reader without benefit of specialized expertise or the need for an advanced degree. It's our job to see that they get it.

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

IAASB guidance for national modifications to ISAs

31 Jul 2006

The International Auditing and Assurance Standards Board (IAASB) has published 'A Guide for National Standard Setters that Adopt the IAASB's International Standards but Find It Necessary to Make Limited Modifications'.

The guide is non-authoritative. The IAASB has issued it in the interest of seeking a common understanding among national standard setters, regulators, and the public, regarding the circumstances that the IAASB believes should exist before a national standard setter may assert that its standards conform to the IAASB's International Standards.
Click to Download the Policy Guide from the IAASB's website (PDF 174k).

 

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IAS Plus Newsletters for July 2006

31 Jul 2006

The July 2006 IAS Plus Quarterly Newsletter has been published.

The newsletter reports on the 2nd quarter 2006 activities of the IASB, the IFRIC, and the IASC Foundation, and also on worldwide issues and events relating to international financial reporting. The Asia-Pacific edition has the same 28-page news content as the Global Edition plus 10 more pages of accounting standards updates for the Asia-Pacific region. You will find all Past IAS Plus Issues Here. Sign up for Free Subscription by Email.
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Webcast on latest developments in IFRSs and UK GAAP

30 Jul 2006

For the past two years, the Deloitte United Kingdom IFRS Centre of Excellence has been running a series of hour-long Internet-based IFRS technical updates, focusing on the most important IFRSs and how they will affect UK companies.

Starting with July 2006, these webcasts will be conducted two or three times each year and will focus on the latest developments in IFRSs and UK GAAP. The eighteenth session was run on Thursday 27 July 2006. The content for this webcast was:
  • recent IASB proposals (IFRS 2, IAS 14, IAS 32, IAS 1, IAS 23)
  • narrative reporting update (OFRs, EBRs)
  • recent IFRIC and UITF activity (IFRICs 8 to 10)
  • IFRS 7 Financial Instruments: Disclosures (practical issues)
  • other UK matters (proposed pension disclosures, group accounts exemption, auditors' remuneration disclosure)
To access the recording Click Here. The recording is no longer available online.
PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

PCAOB alert on stock option accounting and auditing

29 Jul 2006

The US Public Company Accounting Oversight Board has issued the first in a new series of Audit Practice Alerts issued by the Board's staff.

These alerts will highlight new, emerging, or otherwise noteworthy circumstances that may affect how auditors conduct audits under the existing requirements of PCAOB standards and relevant laws. The PCAOB has issued Staff Audit Practice Alert No. 1 addresses "Matters Relating to Timing and Accounting for Options Grants". It was prompted by recent reports and disclosures about issuer practices related to the granting of stock options, including the backdating of such grants. The alert advises auditors that these practices may have implications for audits of financial statements or of internal control over financial reporting and discusses factors that may be relevant in assessing the risks related to these matters. Click for:
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Heads Up newsletter on IASB-FASB concepts paper

29 Jul 2006

Deloitte & Touche LLP (United States) has published a special issue of the (PDF 90k) summarising an IASB Discussion Paper and a related FASB Preliminary Views document, Conceptual Framework for Financial Reporting: Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information.

These documents, identical in all significant respects, are the first in a series of expected publications that are part of a joint project to replace the two boards' separate conceptual frameworks. The IASB Discussion Paper and the FASB Preliminary Views document can be downloaded from the boards' websites: www.iasb.org and www.fasb.org.

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