News

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

New EFRAG planning and resource committee

09 Apr 2009

The European Financial Reporting Advisory Group (EFRAG) Supervisory Board has appointed an interim Planning and Resource Committee (PRC) as part of EFRAG's restructuring.

The role of the PRC will be to set the agenda for proactive work that results in the issuance of discussion papers, position papers, and other outputs. The PRC will provide guidance on the allocation of resources from EFRAG and National Standard Setters (NSS) to proactive projects and will monitor the progress of the work concerned. Members of the interim PRC are:
  • Peter Sampers - Member of the EFRAG Supervisory Board, Chair of the PRC ad interim
  • Angelo Caso - Chair of the OIC (Italian Standard Setter)
  • Ian Mackintosh - Chair of the UK ASB
  • Jean-Francois Lepetit - Chair of the ANC (French Standard Setter)
  • Hans Van Damme - Member of the EFRAG Supervisory Board
  • Stig Enevoldsen - Chairman of EFRAG TEG
Click for Press Release (PDF 60k).

 

Currency (dk gray) Image

G20 Declaration and IASB response

08 Apr 2009

The Declaration on Strengthening the Financial System issued by the leaders of the Group of 20 (G20) following their meeting in London on 2 April 2009 calls on the accounting standard setters to improve standards for determining the fair values of financial instruments in illiquid markets and to take other actions regarding complexity of financial reporting, provisioning, and off balance sheet financing, among other matters:

Accounting standards

We have agreed that accounting standard setters should take action by the end of 2009 to:

  • reduce the complexity of accounting standards for financial instruments;
  • strengthen accounting recognition of loan-loss provisions by incorporating a broader range of credit information;
  • improve accounting standards for provisioning, off-balance sheet exposures and valuation uncertainty;
  • achieve clarity and consistency in the application of valuation standards internationally, working with supervisors;
  • make significant progress towards a single set of high quality global accounting standards; and
  • within the framework of the independent accounting standard setting process, improve involvement of stakeholders, including prudential regulators and emerging markets, through the IASB's constitutional review.

The IASB has responded to the G20 leaders' recommendations and, at the same time, to Recent Decisions taken by the US Financial Accounting Standards Board (FASB). Here are excerpts:

  • The IASB's response to the G20: 'The IASB is committed to taking action on each of the items recommended by the G20 by the end of 2009, the target date suggested by the G20, in order to ensure globally consistent and appropriate responses to the crisis.'
  • The IASB's response to the FASB actions: 'Initial reports regarding new or additional divergences between IFRSs and US GAAP being created by these FSPs appear to be overstated. A preliminary review of the FASB's decisions by IASB staff indicates that FASB's objectives and approach on the application of fair value when a market is not active appear to be broadly similar to those in IFRSs.'

Click for:

IASB Press Release (PDF 106k).

Declaration on Strengthening the Financial System (PDF 137k)

Accounting Roundup Image

Accounting Roundup – first quarter 2009 review

08 Apr 2009

We have posted Accounting Roundup: First Quarter in Review–2009, prepared by the Accounting Standards and Communications Group of Deloitte LLP (USA). This newsletter provides brief descriptions of pronouncements affecting accounting, financial reporting, and corporate governance issued during 1Q-2009 by standard setters and regulators including FASB, EITF, AICPA, SEC, FASAB, PCAOB, GASB, IASB, IFRIC, and IAASB.

This quarterly review consists of articles, adapted as necessary, from issues of Accounting Roundup published in January and February 2009, as well as new articles for the month of March. There's also information about upcoming Dbriefs Webcasts. You will find past issues Here. International and IFRS-related developments covered in this edition of Accounting Roundup are:
  • IASB Amends Financial Instrument Disclosures
  • IASB Proposes Amendments to IFRIC Interpretations 9 and 16
  • IASB Issues Amendments to Clarify Accounting for Embedded Derivatives
  • IASB Proposes Amendments to Derecognition Requirements for Financial Instruments
  • FASB and IASB Issue Discussion Paper on Lease Accounting
  • IASB Proposes New Consolidation Standard
  • IASB Proposes Changes to Income Tax Accounting
  • FASB and IASB Issue Discussion Paper on Revenue Recognition
  • IFRIC Issues Interpretation on Customer Contributions
  • IASC Foundation Publishes 2009 IFRS XBRL Taxonomy for Public Comment
  • IASB Reexposes Proposed Standard on Related Parties

 

Poland Image
pocket2008polish.gif Image

IFRSs in your Pocket 2008 in Polish

08 Apr 2009

Deloitte Poland has published Sygnalizujemy właściwy kierunek: Praktyczny przewodnik po MSSF 2008 – IFRS in your Pocket 2008 in Polish.

This publication is a translation into Polish of the English language IFRSs in your Pocket 2008 guide updateed to October 2008, and additionally includes a comparison between IFRSs and the accounting requirements of the Polish Accounting Act. As a member of the European Union, Poland requires all listed companies preparing consolidated financial statements to use IFRSs. Poland also requires all banks preparing consolidated financial statements, whether or not listed, to use IFRSs. Some other companies are permitted to use IFRSs in their consolidated or separate financial statements – those that are listed or have filed for admission to public trading and a parent company that is, itself, a subsidiary of an entity that prepares its consolidated financial statements using IFRSs. Other companies follow Polish Accounting Standards.

 

Clock (green) Image

Comment deadline – discussion paper on presentation

07 Apr 2009

We remind you that comments are due on 14 April 2009 on the Discussion Paper: Presentation of Financial Statements, which was published jointly by the IASB and the FASB on 16 October 2008. The project is about how best to portray assets, liabilities, income, expense, cash flows, and related information in financial statements.

It does not address how those items are recognised or measured. The DP proposes fundamental changes in the appearance of financial statements, both in their structure and the level of detail presented. Some of the key changes include:
  • The line items presented, descriptions used and order of presentation would be aligned between the statements of financial position, comprehensive income, and cash flows.
  • The financial statements would be segregated into business activities (sub-categorised into operating and investing), financing activities, income taxes, and discontinued operations.
  • Items would be classified in the financial statements based on a 'management approach', with further sub-classifications then required.
  • A reconciliation would be required between the statement of cash flows and the statement of comprehensive income.

 

Deloitte Comment Letter Image

Deloitte comments on SEC IFRS 'Roadmap'

07 Apr 2009

Deloitte & Touche LLP (United States) has submitted to the US Securities and Exchange Commission its views on the SEC's proposed Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers.

The letter expresses support for allowing foreign registrants to use IFRSs and for the convergence efforts of the IASB and the FASB. But the letter suggests that there are some areas of the Roadmap that require further consideration by the SEC before it is adopted. Click for:

An excerpt from the Deloitte letter:

We support the steps that the SEC has already taken toward the acceptance of IFRSs in the U.S. capital markets, including allowing foreign private issuers to use IFRSs in their SEC filings without a reconciliation to U.S. GAAP. In our view, IFRSs are of high quality and are sufficiently comprehensive to provide transparent financial information. We also support a standard-setting process that addresses the ongoing needs of financial statement users and makes relevant improvements to standards. To that end, we are supportive of the convergence efforts of the IASB and FASB in developing the highest quality standards.

As with any important policy decision, the Commission will need to consider and weigh various factors in deciding whether to mandate IFRSs for all U.S. issuers. More specifically, the Commission will need to consider recent developments relating to the financial crisis, including the loss in confidence in the U.S. capital markets, the development of capital market alternatives outside the United States, and the impact on global competitiveness. Also, there have been ongoing questions about U.S. financial reporting, including the complexity of U.S. GAAP and the need to have standards that are less reliant on detailed rules and bright lines. While some may argue that, in light of recent events, this is not the time to make fundamental changes in financial reporting requirements, we believe that these very events reinforce the need to rethink the approach to financial reporting.

We support the objective in the proposed roadmap of transitioning all U.S. issuers to IFRSs but have a number of observations and recommendations regarding how the proposed roadmap can be improved. The most important of these recommendations are (1) the current need for the SEC to be more definitive about its plan to transition all U.S. issuers to IFRSs in the future and (2) the removal of the significant disincentives for early adopters of IFRSs.
dttcompass.jpg Image

Deloitte International Tax Source

07 Apr 2009

The Deloitte International Tax Source (DITS) is likely to be of interest to visitors to IAS Plus – who come from over 200 jurisdictions around the world.

DITS is a comprehensive one-stop web database for international tax rates, information, and analysis key to doing business in a cross-border environment. DITS provides access to:
  • Tax rates for more than 60 jurisdictions, including:
    • Corporate and historical income tax rates,
    • Domestic withholding rates,
    • Withholding tax rates for dividends, interest, and royalties for in-force and pending tax treaties, and
    • Indirect tax rates (VAT/GST/sales tax).
  • Comparative data on holding companies
  • Comparative data on transfer pricing policies
  • An executive library of:
    • International Tax and Business Guides and Highlights
    • A wide range of global tax publications
    • Tax tools
    • Live interactive webcasts led by Deloitte professionals
DITS is free, easy to use, and always available. Access the Deloitte International Tax Source at www.dits.deloitte.com/. There's a short video overview Here to introduce you to DITS.

 

Currency (dk gray) Image

G20 leaders support global accounting standards

07 Apr 2009

The Communiqué Issued by the Leaders of the Group of 20 (G20) following their meeting in London on 2 April 2009 calls on "the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and achieve a single set of high-quality global accounting standards".

This recommendation builds on the recommendation in the Final Report of G20 Working Group 1 Enhancing Sound Regulation and Strengthening Transparency (PDF 720k), issued 25 March 2009, which also recommends adoption of a single set of accounting standards globally. The report also recommends greater involvement of representatives of emerging market economies in the IASCF/IASB structure.

Recommendation 23: The IASB should enhance its efforts to facilitate the global convergence towards a single set of high-quality accounting standards by sharing the experience of countries that have completed this process and by providing technical assistance. — Responsibility: IASB — Timeline: Fall 2009 — Monitoring: Expanded FSF

The long-term benefits likely to result from the use of a harmonized set of international accounting standards are considerable, in particular from a market transparency and cost perspective. While adapting IFRS according to national circumstances rather than fully complying with them may be appropriate in some cases to take into account country-specific characteristics of markets, it also voids some of the benefits of a global set of accounting standards.

The Working Group recommends that the IASB facilitate the transition towards a single set of high-quality global standards globally by sharing the experience of countries that have completed this process and by providing global assistance.

Click for Communiqué Issued by the Leaders of the G20 (PDF 174k).

ukinsurancenewsletter.gif Image

IFRS insurance accounting newsletter

06 Apr 2009

Deloitte (United Kingdom) has published the second edition of its monthly newsletter focussing on the joint IASB and FASB project to develop a new, comprehensive, global financial reporting standard for insurance.

This issue focuses on the estimate of insurance cash flows. The IASB plans to publish an exposure draft for comment in the second half of 2009 and a final standard in 2011. This newsletter provides an update on progress being made by the IASB and FASB in their joint project. Click to download Issue 2 of the Insurance Accounting Newsletter (PDF 130k). There are permanent links all issues of the newsletter on IAS Plus Insurance Project Page.

 

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

11 IFRSs await EU endorsement

06 Apr 2009

The European Financial Reporting Advisory Group (EFRAG) 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 Report as of 3 April 2009 (PDF 132k). With the recent endorsement of IFRIC 12 Service Concession Arrangements, there are currently 11 IASB pronouncements awaiting European Commission endorsement for use in Europe, as follows:

Standards

  • IFRS 1 First-time Adoption of IFRS – Restructured standard (2008)
  • IFRS 3 Business Combinations (2008)

Interpretations

  • IFRIC 15 Agreements for the Construction of Real Estate
  • IFRIC 16 Hedges of a Net Investment in a Foreign Operation
  • IFRIC 17 Distributions of Non-cash Assets to Owners
  • IFRIC 18 Transfers of Assets from Customers

Amendments

  • IAS 27 Consolidated and Separate Financial Statements (2008)
  • IAS 39 Amendments for Eligible Hedged Items
  • IAS 39 Amendments for Reclassification of Financial Assets
  • IFRS 7 Amendment – Improving Disclosures About Financial Instruments
  • IFRIC 9 and IAS 39 Amendment – Embedded Derivatives

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.