The focus of this 1,236-page text is on the analysis, illustration, and application of IFRSs. The textbook has been written for intermediate and advanced financial reporting courses, at both undergraduate and postgraduate level, and aligns with the knowledge expectations of the accounting profession. Paul's co-authors are Keith Alfredson, former chairman of the Australian Accounting Standards Board (AASB); Ruth Picker, IFRIC member and a technical partner of Ernst & Young; Ken Leo and Jeannie Radford, both of Curtin University of Technology; and Victoria Wise of Victoria University. (ISBN: 9780470808238). Outline of the book:

PART 1 FRAMEWORK

• Chapter 1: The IASB: history, current structure and processes
• Chapter 2: The conceptual Framework of the IASB PART 2 ELEMENTS
• Chapter 3: Contributed equity: capital, reserves and accumulated profits
• Chapter 4: Revenue Recognition
• Chapter 5: Provisions and contingencies
• Chapter 6: Financial instruments
• Chapter 7: Share based payments
• Chapter 8: Income tax
• Chapter 9: Inventories
• Chapter 10: Property, plant and equipment
• Chapter 11: Intangible assets
• Chapter 12: Business combinations
• Chapter 13: Impairment of assets
• Chapter 14: Leases PART 3 DISCLOSURE
• Chapter 15 Principles of disclosure
• Chapter 16: Presentation of financial statements
• Chapter 17: Cash flow statements
• Chapter 18: Segment reporting PART 4 ECONOMIC ENTITIES
• Chapter 19: The nature of economic entities
• Chapter 20: Consolidated financial statements - wholly owned subsidiaries
• Chapter 21: Consolidated financial statements - intragroup transactions
• Chapter 22: Consolidated financial statements - minority interest
• Chapter 23: Consolidated financial statements - indirect ownership interests
• Chapter 24: Consolidated financial statements - foreign currency translation
• Chapter 25: Accounting for investments in associates
• Chapter 26: Interests in joint ventures

The Committee comprises representatives of the national central banks and banking supervisory authorities of the European Union and the ECB.

Assessment criteria. First, the report puts forward ten criteria deemed important from the perspective of financial stability with which accounting standards should be consistent. The selected criteria are: reliance on principles-based accounting standards; use of reliable and relevant values; recognition of the allocation and magnitude of risks; provision of comparable financial statements; provision of clear and understandable financial statements; portrayal of the financial situation of banks (solvency, profitability, liquidity); alignment of accounting rules and sound risk management practices; promotion of a forward-looking recognition of risks; avoidance of negative and promotion of positive externalities, in particular regarding the behaviour of banks; and enhancement of market confidence and corporate governance. Positive findings.The report analyses IFRSs based on these criteria. Positive features of the IFRSs from a financial stability point of view identified in the report include: the overall increase in comparability and transparency, which enhances the level playing field between financial institutions and strengthens market discipline; the provision of early warning signals on exposures or risks, which is relevant both for the risk management function of financial institutions and for effective market discipline; and the use of a principles-based framework, which provides for an adequate degree of flexibility in implementation. Concerns.Then the report identifies areas where concerns could arise from a financial stability perspective. These include: the reliability of 'fair' values: fair values should be accurately measured and appropriately documented, so as to avoid an inappropriate upfront recognition of gains that are unrealisable and behaviour that is based on accounting figures rather than on the underlying economic factors; the economic basis for hedge accounting: the accounting framework should reflect the underlying economic situation and adequately take into account strictly documented risk management practices, as this would further encourage better risk management; provisioning: the provisioning regime should not be conducive to increasing pro-cyclicality, but should encourage the use of methods that are aimed at identifying credit losses already inherent in a particular credit portfolio at the present time.

Click for:

• ECB Report (PDF 852k)
• ECB Press Release (PDF 63k)

The revision reflects the PCAOB's experience with the first two years of auditors' implementation of the internal control provisions of the Sarbanes-Oxley Act, The revised standard is designed to focus the auditor on the most important matters, increasing the likelihood that material weaknesses will be found before they cause material misstatement of the financial statements. At the same time, the proposed standard would eliminate audit requirements that the PCAOB has concluded are unnecessary to achieve the intended benefits. It would also provide direction on how to scale the audit for a smaller and less complex company. Comment deadline is 26 February 2007, Any final standard adopted must be submitted to the Securities and Exchange Commission for approval. Click for:

• Proposed Revised Auditing Standard (PDF 385k)
• Press Release (PDF 76k).

Previously, non-accelerated filers (companies that do not meet the Exchange Act definition of either an accelerated filer or a large accelerated filer) were scheduled to begin including both management's assessment and an auditor's attestation to management's assessment on the effectiveness of the filers' internal control over financial reporting in their annual reports for fiscal years ending on or after 15 July 2007.

• The extended date for providing management's assessment of internal controls is annual reports for fiscal years ending on or after 15 December 2007.
• The new date for compliance with the auditor attestation requirement is fiscal years ending on or after 15 December 2008.

Deferred implementation of the auditor's attestation report requirement will provide smaller public companies and their auditors with additional time to consider the anticipated revisions to Auditing Standard No. 2, as well as any implementation guidance that the PCAOB plans to issue for auditors of smaller companies. Click for SEC Press Release (PDF 53k).

Global Offerings Services is a global team of Deloitte practitioners assisting non-US companies and non-US practice office engagement teams in applying US and International accounting standards (that is, US GAAP and IFRSs) and in complying with the SEC's financial reporting rules. The GOs Newsletter is an update on relevant GAAP, regulatory, and other matters, webcasts, and publications. Click for Newsletter (PDF 115k) Past GOs Newsletters are Here.

• Amendments to IAS 23 Borrowing Costs
• Amendments to IAS 39
• Annual Improvements Project – 2006
• Business Combinations Phase 2
• Conceptual Framework
• Consolidation
• Employee Benefits Including Pensions
• Financial Instruments – Comprehensive Project
• Financial Statement Presentation
• Intangible Assets
• IFRS for Small and Medium-sized Entities

We have combined all of the preliminary and unofficial notes taken by Deloitte observers at the meeting on our December 2006 Meeting Notes Page.

The statement outlines expectations for directors and management of banks and savings associations as well as bank examiners related to the development and assessment of the ALLL estimate. This revision expands the scope of the policy statement to include credit unions. In addition, the agencies have also issued a set of frequently asked questions (FAQs) to assist institutions in complying with GAAP and ALLL supervisory guidance. Click to download:

• Policy Statement (PDF 1,539k)
• Questions and Answers (PDF 847k)

• IPSAS 22 Disclosure of Financial Information about the General Government Sector (PDF 137k). IPSAS 22 establishes requirements for governments that choose to disclose information about the general government sector and that prepare their financial statements under the accrual basis of accounting. IPSAS 23 is effective for annual periods beginning on or after 1 January 2008, earlier application encouraged. Press Release (PDF 60k).

• IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers) (PDF 240k). IPSAS 23 addresses:
  • Recognition and measurement of revenue from taxes
  • Recognition of revenue from transfers, which include grants from other governments and international organisations, gifts. and donations
  • How conditions and restrictions on the use of transferred resources are to be reflected in the financial statements
  IPSAS 23 is effective for annual periods beginning on or after 30 June 2008, earlier application encouraged. Press Release (PDF 60k).

These guidelines are intended to be used by credit institutions when preparing prudential reports to be sent to any European Union Supervisory Authority according to the IASs/IFRSs endorsed by the European Commission.

Click for Guidlines (PDF 344k).