The ED was issued 25 September 2008. It proposes to revise the definition of discontinued operations and require additional disclosure about components of an entity that have been disposed of or are classified as held for sale.

Click to view Special Edition IAS Plus Newsletter – Proposed Amendments regarding Discontinued Operations (IFRS 5) (PDF 95k). You will find all Past IAS Plus Newsletters Here.

 

Topics that will be covered include an analyst's view of financial reporting priorities; FSF recommendations on risk disclosures, valuations, and off balance sheet vehicles; the professional practice view of IFRSs; valuations in light of the credit crunch; the year ahead for IFRSs; implications of IFRSs for directors and auditors; complexity of standards; and IFRSs and regulation.

 

The ED was issued 25 September 2008. It proposes:

• to exempt companies from retrospective application of IFRSs for oil and gas assets using the full cost method and for operations subject to rate regulation.
• to exempt companies with existing leasing contracts accounted for in accordance with IFRIC 4 from reassessing the classification of those contracts according to IFRSs when the same classification has previously been made in accordance with national GAAP.

Click to view Special Edition IAS Plus Newsletter – Additional Exemptions Proposed for First-time Adopters (IFRS 1) (PDF 93k). You will find all Past IAS Plus Newsletters Here. 

 

The study examines:

• the resultant changes in financial reporting, in terms of the additional disclosures and the impact of IFRSs on profit and equity;
• the costs involved in implementation of IFRSs;
• the most problematic international accounting standards for adopters; and
• the usefulness of the resulting IFRS information from the perspective of preparers and users.

ICAS hopes that the study will aid companies implementing international standards in the future. Both the full report and an executive summary may be downloaded from the ICAS website:

• Executive Summary (PDF 344k)
• Full Report (PDF 4,451k)

 

The areas of focus will be:

• Measurement and disclosure of financial instruments (IAS 39/IFRS 7)
• Impairment of assets (IAS 36)
• Assets and obligations relating to employee benefit plans (IAS 19/IFRIC 14)
• Non-current assets held for sale and discontinued operations (IFRS 5)

Further, the SIX Swiss Exchange has updated its Admission Board Circular Nr. 6 (PDF 167k), which identifies IFRS issues that have led to discussions with or actions against issuers in the past.

Click for the Communiqué (PDF 59k).

The TPA covers balance sheet classification, disclosures, debt covenants, subsequent events and going-concern considerations, among other things. Click for all of our Credit Crunch Information.

 

A few key items:

Trustees had been expected to consider the comments received to Phase 1 of the Constitution Review – relating to the proposed Monitoring Group and the size and composition of the IASB. However, the analysis of comments was not yet complete, and discussion was deferred. Regarding Phase 2 of the Constitution Review, Trustees agreed to publish a consultation document inviting comment on which issues should be addressed in Phase 2, for a 120-day comment period, without waiting for completion of Phase 1. The detailed notes downloadable above identify some of the issues that will be proposed for inclusion. Trustees issued a Press Release (PDF 179k) expressing their unanimous support for the approach that the IASB Announced on 3 October 2008 to accelerate its response to the credit crisis, including suspension of normal due process to eliminate certain differences with US GAAP. Trustees approved an update to the IASB Due Process Handbook. The report of the IASB Chairman was divided into two main sections: (a) IASB response to the credit crisis and (b) updating of the IASB-FASB Memorandum of Understanding. Response to the credit crisis will include 'very fast-track' amendments on: consolidation, derecognition, financial instruments disclosures, and reclassifications out of fair value through P&L. Trustees received a report on the IFRS for Private Entities (SMEs) and expressed strong support for the project. Trustees decided that whether the IASB should establish formal cooperative relationships with bodies that set standards other than accounting standard should be an issue in Phase 2 of the Constitution Review, though Trustees' initial reactions were negative. Regarding funding, £14 million of funding for 2008 has been raised out of a budget of £16 million. Due to the current global credit crisis, there is a risk of loss of funding to IASCF of approximately £500,000 due to attrition of donors.

Click here do download the Notes Taken by Deloitte Observers at the Meeting (PDF 78k).

Among other things, the Parliament:

• 'Expresses doubts as regards the desirability of setting up the Monitoring Group at this stage, before the second phase of the consultation process of the review of the governance of the IASB is launched'
• Calls for the Monitoring Group, if established, 'to be involved in setting the agenda for the IASB'
• 'Deplores the fact that Parliament was not consulted about the establishment of an International Accounting Advisory Group'
• Seeks 'political accountability' of members of the Monitoring Group
• Believes that membership of the Monitoring Group should be permitted 'only after a commitment to introduce IFRS as the domestic standard'. [IAS Plus comment: Two of the proposed Monitoring Group members, the commissioner of the Japan Financial Services Agency and the chair of the US SEC, would not be eligible under this criterion]
• 'Calls for a memorandum of understanding to be concluded between Parliament, the Council and the Commission so as to define the conditions of association of the legislators with the work of the monitoring group, if such a group is established at this stage'
• 'Instructs its President to forward this resolution to the Council, the Commission, the European Central Bank, and the Committee of European Securities Regulators and the governments and parliaments of the Member States'

Click to view Resolution on the IASCF Review of the Constitution, Public Accountability, and Composition of the IASB (PDF 25k).

Topics to be discussed are presented below.

Meeting of Representatives of the IASB and EFRAG13 October 2008, London Credit Crisis Fair value measurement Disclosures Consolidations Derecognition Distinguishing equity from liabilities Financial Statement Presentation The IASB/FASB project Update on PAAinE project IASC Foundation Trustees meeting Update on other PAAinE (Proactive Accounting Activities in Europe) work Pensions Possible new projects IASB/FASB Memorandum of Understanding

 

The FSP clarifies the application of FASB Statement No. 157 Fair Value Measurements in a market that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. Click to view FASB Staff Position 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active (PDF 31k). Click here for all of our Credit Crunch Information.