News

IASB Exposure Draft (original) Image

IASB proposes revised definition of discontinued operations

25 Sep 2008

The IASB has issued an exposure draft of proposed amendments to IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'.

The proposals are 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. The proposals are the result of a joint project by the IASB and the US Financial Accounting Standards Board to develop a common definition of discontinued operations and require common disclosures about them. The FASB is publishing parallel proposals to amend its standards.

Click for Press Release (PDF 35k). The deadline for public comment is 23 January 2009. The ED may be downloaded without charge from IASB's Website.

 

IASB (International Accounting Standards Board) (blue) Image

Prabhakar Kalavacherla appointed to the IASB

24 Sep 2008

The Trustees of the International Accounting Standards Committee Foundation have announced the appointment of Prabhakar Kalavacherla ('PK') to the International Accounting Standards Board.

Mr Kalavacherla will join the IASB as a full time member on 1 January 2009 for the period ending on 30 June 2013. Mr. Kalavacherla, born in India, is a partner at KPMG LLP serving both as reviewing partner for IFRS financial statements and filings with the US Securities and Exchange Commission. He has worked extensively in India and in Europe and has specialised in technology and biotechnology. Mr Kalavacherla is a member of both the Institute of Chartered Accountants of India and the American Institute of CPAs.
Click here for Press Release (PDF 181k).

 

Currency (dk gray) Image

G7 statement on global financial market turmoil

23 Sep 2008

The Group of Seven Finance Ministers and Central Bank Governors released the following statement on global financial market turmoil.

Among other things, the statement urged more effective regulation. The G7 said: "We remain committed to full and rapid implementation of the Financial Stability Forum (FSF) recommendations to enhance the resilience of the global financial system for the longer term. We look forward to the FSF report this fall on progress made in strengthening prudential supervision and regulation, improving firms' risk management practices, enhancing disclosure and transparency, and strengthening accounting frameworks." Click to Download the G7 Statement (PDF 85k). Here is the link to our complete Credit Crunch Page.

 

Deloitte (secondary logo) Image

New comparison of IFRSs and US GAAP

23 Sep 2008

Deloitte's IFRS Global Office has published a new IFRSs and US GAAP – A Pocket Comparison as of 30 June 2008. Since the previous edition of this guide (March 2007), the IASB has issued substantially revised versions of IFRS 3 Business Combinations, IAS 1 Presentation of Financial Statements, and IAS 27 Consolidated and Separate Financial Statements.

In addition, IFRS 8 Operating Segments (which replaces IAS 14 Segment Reporting) was issued in November 2006. These new and revised Standards will not be effective until 2009. However, to provide the best guide to differences between IFRSs and US GAAP on an ongoing basis, the comparison table reflects the changes to these Standards and, in the case of IFRS 3 and IAS 27, the equivalent changes in US GAAP. Throughout the guide, we have also adopted the general terminology changes arising from IAS 1(2007). While this comparison is comprehensive, it does not attempt to capture all of the differences that exist or that may be material to a particular entity's financial statements. Our focus is on differences that are commonly found in practice. The significance of the differences enumerated in this publication – and others not included – will vary with respect to individual entities depending on such factors as the nature of the entity's operations, the industry in which it operates, and the accounting policy choices it has made. We are pleased to grant permission for accounting educators and students to make copies for educational purposes.
Click to view IFRSs and US GAAP – A Pocket Comparison (PDF 378k, 76 pages). There are permanent links to this and many other Deloitte IFRS publications on our Publications Page. There's also a link on our United States Page.

 

Heads Up Image

Heads Up on proposed changes to US consolidation model

23 Sep 2008

The latest issue of Heads Up is now available.

It discusses three exposure documents issued last week by the FASB proposing amendments to the derecognition guidance in Statement 140 and the consolidation model in Interpretation 46(R). The proposals would, among other things, eliminate 'qualifying special purpose entities' (QSPEs), modify the consolidation model in Interpretation 46(R), and expand the related required disclosures. The exposure drafts reflect the Board's response to the increased scrutiny by SEC, Congress, and financial statement users on the accounting and disclosures required by Statement 140 and Interpretation 46(R) in the wake of the recent deterioration in the global credit markets. Click to download the 22 September 2008 Heads Up (PDF 202k).

 

2008sep.gif Image

Agenda project pages updated for September meeting

22 Sep 2008

We have updated the following agenda project pages to reflect the discussions and decisions at the 16-19 September 2008 meeting of the International Accounting Standards Board.

2008sep.gif Image

Notes from day 4 of September 2008 IASB meeting

20 Sep 2008

The International Accounting Standards Board held its September 2008 meeting at the IASB's offices, 30 Cannon Street, London on Tuesday to Friday 16-19 September 2008. The meeting was open to public observation and was webcast.

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers at the meeting.

 

Deloitte Comment Letter Image

Our views on IASB's financial instruments discussion paper

20 Sep 2008

Deloitte has submitted a Letter of Comment on the IASB's Discussion Paper Reducing Complexity in Reporting Financial Instruments. In general, we express serious reservations about the possible approaches examined in the Discussion Paper.

As an alternative, our letter sets out an approach that, whilst still incorporating a mixed measurement attribute model, we believe would represent a significant improvement over the current guidance in IFRSs. Below are excerpts from our letter.

We welcome the IASB's efforts to improve financial reporting for financial instruments. We believe that current guidance under IFRS is complex and requires significant improvements to reduce the inherent complexity.

However, to meet the goal of improving reporting for financial instruments by reducing complexity it is important that complexity is properly defined and that any change made to existing Standards should not result in a mere shift of complexity from one constituent to another.

In addition, the DP fails to address important areas, notably scope and derecognition, of financial instruments accounting that also fall outside the IASB's other concurrent projects or, where they are within existing projects, these would be completed only with a significant time lag to the financial instruments project. We believe that guidance on these issues influences the assessments made on the proposals of the DP.

Furthermore, we do not agree with the implicit assumption of the DP that full fair value accounting would be the ultimate improvement to financial instruments accounting. We believe such a conclusion would be premature at this point. We believe that at the moment, amending existing Standards, possibly over a longer period, would be a feasible way to improve financial instruments accounting significantly for all constituents without undue costs or efforts.

Click to view Letter of Comment (PDF 243k). Past comment letters are Here.

European Union (old) Image

CEBS advice to EC on liquidity risk management

19 Sep 2008

The Committee of European Banking Supervisors has submitted to the European Commission the second part of its advice on liquidity risk management.

The advice consists of an analysis of specific issues listed by the Commission and challenges not currently addressed in the EEA and includes 30 recommendations, as follows:
  • CEBS's 30 recommendations on liquidity risk management are principles-based and subject to an overarching principle of proportionality.
  • The first 18 recommendations are targeted at credit institutions and investment firms established in the European Union to ensure that adequate liquidity risk management for both normal and stressed times is in place. In particular this should build on diversification of funding sources, appropriate liquidity buffers, robust stress tests and regularly tested contingency funding plans.
  • CEBS's last 12 recommendations target liquidity risk supervision. Supervisors should consider whether their requirements could be supplemented or replaced by internal methodologies developed by institutions, based on a thorough prior supervisory assessment. Enhanced coordination between supervisors should be pursued, notably through active use of colleges or through delegation of tasks.
Click to download:

 

Heads Up Image

Heads Up on credit derivatives and financial guarantees

19 Sep 2008

Deloitte & Touche LLP (United States) has published an issue of Heads Up discussing the FASB's recently issued Staff Position No. FAS 133-1 and FIN 45-4, which amend and enhance the disclosure requirements for sellers of credit derivatives and financial guarantees.

The new disclosures must be provided for reporting periods (annual or interim) ending after 15 November 2008. Click to download the 18 September 2008 Heads Up (PDF 106k).

 

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.