Fair value measurement comprehensive project summary published
July 2, 2010 - A comprehensive project summary, prepared by the International Accounting Standards Board (IASB) staff, has been published on the fair value measurement project page. (IASB.org)
The IASB and FASB embark on additional outreach activities on their Financial Statement Presentation Project
July 1, 2010 - The IASB and FASB started today their programme of extended outreach to stakeholders on the joint project on financial statement presentation by posting a staff draft of proposed standards on their respective websites. (IASB.org)
Differences Will Remain After Convergence Project
Differences will remain after the FASB and the IASB’s convergence project is complete. A CFO.com article highlights six of these differences.
IASC Foundation to become IFRS Foundation on 1 July 2010
June 30, 2010 - On 1 July 2010 the IASC Foundation will formally change its name to the IFRS Foundation. The change represents the next step in a process to simplify the names in use across the organisation announced following the conclusion of the Constitutional Review in 2010. (IASB.org)
FASB, IASB Propose Common Standard for Fair Value Measurement and Disclosure
FASB and the IASB on Tuesday issued separate exposure drafts intended to develop common requirements for measuring fair value and for disclosing information about fair value measurements in U.S. GAAP and IFRS. (Journal of Accountancy)
Move to Expected-Loss Model Would be Costly
The IASB has proposed a move from the incurred-loss to an expected-loss model for recognizing loan losses. Accountancy Age reports that banks believe implementation would be complicated and expensive.
Standard Setters Propose Fair Value Changes
WebCPA reports on exposure drafts issued by the FASB and IASB on fair value measurements and disclosures.
G20 Re-Emphasizes Support of Global Accounting Standards
Accountancy Age reports on latest communication from G20 leaders on global accounting standards.
IASB and FASB update to G20 Leaders on modified convergence strategy
June 24, 2010 - The IASB and the FASB today wrote to the G20 Leaders outlining their modified strategy for completing their convergence work. The modified strategy retains the target completion date of June 2011 or earlier for the MoU projects for which the boards believe the need for improvement is the most urgent. (IASB.org, FASB.org)
Planning for IFRS
CFO.com columnist Bruce Pounder outlines planning techniques for an uncertain future.
6 July - Live webcast on IAS 39 replacement project
On 6 July 2010 IASB staff will be hosting a webcast on the IAS 39 replacement project. Discussion topics will include an update on the main outcomes of the Expert Advisory Panel and next steps in the impairment phase, an update on the hedge accounting phase, and a general update on timing for the project. (IASB.org)
Volunteers needed to develop questions on IFRS for Uniform CPA Examination
June 18, 2010 - The AICPA Examinations Team is seeking professionals with solid skills and knowledge in International Financial Reporting Standards to develop questions (“items”) on IFRS for the Uniform CPA Examination.
Tommaso Padoa-Schioppa to return as Chairman of the Trustees following the July Trustees’ meeting
The Monitoring Board today announced that it has approved the appointment of Tommaso Padoa-Schioppa, former Italian Minister of Economy and Finance, as Chairman of the Trustees. (IASC Foundation)
FASB Proposal Generates Negative Comments
Compliance Week’s Tammy Whitehouse reviews early comment letters received on the FASB’s proposed changes to financial instrument accounting.
Tweedie’s reconciliation proposal is not convergence
IASB Chairman David Tweedie has proposed a reconciliation model to bridge the gap between U.S. and International financial instrument reporting. An Accountancy Age article provides an overview, but notes that reconciliation is not the same as convergence.
IASC Foundation Annual Report 2009 published
June 17, 2010 - The 2009 Annual Report of the IASC Foundation has been published today and is available for download from the IASB website. (IASC Foundation)
AICPA to Host International Business, Accounting, Auditing and Tax Conference
Scheduled for June 23-24 at the JW Marriott in Washington, D.C., the conference is designed for CPAs in audit, tax and consulting; chief financial officers; controllers; and tax directors with international responsibilities.
PCFRC Releases Meeting Highlights, Differential Accounting for Private Companies Discussed
At their April meeting, the Private Company Financial Reporting Committee (PCFRC) met with the Financial Accounting Standards Board (FASB). Issues discussed included nonpublic entity considerations in the standard setting process and prioritization of convergence projects. (PCFR.org)
Survey: Investors Do Not Want Full Fair Value Model
Accountancy Age reports on a PwC survey. Respondents (analysts and investors) said that they preferred a mixed measurement model for valuing financial instruments.
FASB Chairman Talks about Convergence
Compliance Week’s Tammy Whitehouse writes about FASB Chairman Robert Herz’s recent speech at a conference at the University of Southern California.
EFRAG Investigation: IFRS for SMEs
A European Financial Reporting Advisory Group (EFRAG) investigation finds that IFRS for SMEs are incompatible with EU directives in multiple areas. Accountancy Age reports on the study and provides a link to the EFRAG report.
Stephen Cooper: Revenue recognition and your mobile phone
The IASB and FASB will shortly issue an exposure draft of a revised standard for revenue recognition. (IASB.org Investor Perspectives)
FASB Proposals Could Have Been Tougher on Banks
Bloomberg’s Jonathan Weil writes about FASB’s proposals for financial instrument accounting.
Who is on the list of candidates to replace the IASB Chairman?
Accountancy Age reports on the search for a replacement for IASB Chairman Sir David Tweedie.
Volker Critical of Financial Instrument Convergence
Accountancy Age reports that Paul Volker, senior economic adviser to the Obama administration, said that the IASB and FASB need to come together on financial instrument reform.
What’s ahead for private company reporting?
Dan Noll, AICPA Director Accounting Standards, led a discussion regarding IFRS for Small and Medium-sized Entities and the future of private entity reporting at an AICPA conference. WebCPA provides coverage of the session.
CPAs Facing Significant Changes
Robert Harris, Chairman of the AICPA, discussed the “changing landscape” facing the profession. WebCPA reports on Harris’ address at the AICPA’s Practitioners Symposium & Tech + Information Technology Conference.
AICPA's IFRS Backgrounder updated through SEC work plan
Get an introduction to the movement behind adoption of IFRS for public companies throughout the world. The AICPA’s recently updated IFRS Backgrounder walks you through the regulators, standard setters and others who play a critical role and the timeline of convergence and adoption activities, including the SEC’s announcement of its work plan.
Private Business Recognize Benefit of Greater Transparency
Emirates Business 24/7 reports on a Grant Thornton International Business Report that covered over 7,400 business owners in several countries.
IFRS Interpretations Committee podcasts for download
June 4, 2010 - Following on from the success of the Board meeting audio summaries ('podcasts'), the IFRS Interpretations Committee (formerly called the IFRIC) is also trialing podcasts.
IFRS in the U.S.
Will the U.S. ever be converged completely? Colleen Cunningham explores the question in the Corporate Finance Insider.
IASB and FASB issue statement on their convergence work
June 2, 2010 - The IASB and the FASB today announced their intention to prioritise the major convergence projects to permit a sharper focus on issues and projects that they believe will bring about significant improvement and convergence between IFRSs and US GAAP. Joint FASB and IASB Letter to G-20 (IASB.org)
Replacement for IASB Chair Needs Wide Skill Set
Accountancy Age writes about the search for a replacement for Sir David Tweedie. The ideal replacement would be adept at both political and technical matters.
Banks Express Concern about FASB Proposals
CFO.com reports that banks are questioning the logic of proposals in FASB’s exposure draft on accounting for financial instruments.
Accounting Departments Stretched Dealing with Change
Finance and accounting staffs are becoming weary dealing with the amount of change, and more is coming. CFO Magazine writes about the pace of change and how some companies are coping.
Leases on the Balance Sheet
CFO.com reports on the FASB/IASB’s joint lease project. An exposure draft is expected in June.
IASB Proposes Changes for Other Comprehensive Income Reporting
WebCPA writes about the IASB’s recently issued exposure draft Presentation of Items of Other Comprehensive Income (Proposed amendments to IAS 1)
ICAEW Expresses Concerns About FASB Financial Instrument Proposals
The Institute of Chartered Accountants in England and Wales has expressed concerns about classification and measurement proposals in the exposure draft, according to an Accountancy Age article.
FASB Proposes Comprehensive Changes to Financial Instruments Accounting
FASB on Wednesday issued a much anticipated exposure draft intended to improve accounting for financial instruments. (Journal of Accountancy)
IASB proposes improvements to the presentation of items of Other Comprehensive Income
May 27, 2010 - The International Accounting Standards Board (IASB) today published for public comment proposals to improve the consistency of how items of Other Comprehensive Income (OCI) are presented. (IASB.org)
Request for comment: FASB Financial Instruments Exposure Draft
May 27, 2010 - On 26 May 2010 the FASB released a proposed Accounting Standards Update (ASU) that contains proposals for a new comprehensive standard on financial instruments. (IASB.org)
Thursday 10 June – Live webcast on Lease accounting
On Thursday 10 June IASB staff will present a live webcast to provide updates to the proposals on accounting for lease contracts. (IASB.org)
User questionnaire for Fair Value Option exposure draft
On 24 May 2010 the International Accounting Standards Board (IASB) produced a questionnaire for financial statement users on its May 2010 exposure draft Fair Value Option for Financial Liabilities. (IASB.org)
FASB Chairman Testifies Before the U.S. House of Representatives Subcommittee
FASB Chairman Robert H. Herz Testifies Before the U.S. House of Representatives Financial Services Subcommittee On Capital Markets, Insurance, and Government Sponsored Entities on May 21, 2010. Read full text of testimony. (FASB.org)
AICPA Survey Shows U.S. CPAs Gaining in Awareness of International Financial Reporting Standards
May 24, 2010 - U.S. Certified Public Accountants are gaining awareness about International Financial Reporting Standards and CPAs increasingly foresee a need to gain advanced, or expert knowledge as the U.S. moves toward global accounting standards over the next three to five years, according to a recent survey conducted by the American Institute of Certified Public Accountants.
Survey: CPAs Growing More Familiar with IFRS
May 24, 2010 - Even though most American CPAs do not prepare or audit IFRS financial statements, many have begun learning the international standards, according to an AICPA survey released Monday. (Journal of Accountancy)
SEC Supports High Quality International Standards
Accountancy Age reports on SEC Chair Mary Schapiro’s speech at the CFA Institute’s annual conference.
Too Much!
CFO.com writes about the coming wave of new standards coupled with the prospect of an SEC decision to require IFRS, and asks, “Will American companies have to go through a major accounting-standards overhaul twice?”
SEC is not “dragging its feet” on IFRS
Speaking at the CFA Institute’s annual conference, SEC chair Mary Schapiro defended the Commission’s actions on IFRS. WebCPA reports on Chairwoman Schapiro’s remarks.
Panel Expresses ‘Broad-Based Concerns’ for Private Company Financial Reporting
There are legitimate, broad-based concerns about whether current U.S. GAAP and the underlying standard-setting process are meeting the needs of private companies, and it is time to start exploring alternatives that have surfaced in other countries, the chairman of a blue ribbon panel told panel members Friday. (Journal of Accountancy)
Focus on IFRS Risk Should Change
According to a CFO.com article, U.S. CFOs’ focus on IFRS risk is off target.
Monitoring Board approves appointment of Vice-Chairs of the Trustees
The Monitoring Board of the IASC Foundation today approved the appointment of Robert Glauber (United States) and Tsuguoki Fujinuma (Japan) as Vice-Chairs of the Trustees for a term of three years. Both are existing Trustees. (IASC Foundation)
Study Suggests that Rules-Based Standards Provide Better Protection from Litigation
CFO.com reports on an academic study that addresses the question whether or not rules-based standards provide better protection from lawsuits. The study’s conclusion suggests that rules based standards reduces the threat of litigation.
Disagreements over derecognition
Recent proposals on accounting rules for derecognition have stirred an international debate. Which model is better – the one based on “risks and rewards” or the one based on “control”? Accountancy Age explores the debate.
Blue-Ribbon Panel on Private Company Financial Reporting to Meet Friday
The blue-ribbon panel established to provide recommendations on the future of U.S. accounting standards for private companies will hold its second meeting Friday. (Journal of Accountancy)
Europe “getting impatient” with U.S. Progress on Convergence
Accountancy Age reports on remarks made by Michel Barnier, EU Commissioner for Internal Markets and Services.
IASB addresses ‘counter-intuitive’ effects of fair value measurement of financial liabilities
May 11, 2010 - The International Accounting Standards Board (IASB) today published for public comment its proposed changes to the accounting for financial liabilities. This proposal follows work already completed on the classification and measurement of financial assets (IFRS 9 Financial Instruments). (IASB.org)
Trustees publish report on the Second Part of the Constitution Review
May 11, 2010 - The Trustees of the IASC Foundation published today a report on the changes to the Foundation’s Constitution made as a result of the second part of their 2008-2010 Constitution review. (IASB.org)
Canada: IFRS transition deadline drawing – state of readiness varies among companies: CICA/RBC Business Monitor
Many executive CAs believe their companies are well positioned for Canada’s transition to International Financial Reporting Standards (IFRS) but several enterprises remain in early stages of preparation, according to the latest CICA/RBC Business Monitor (Q1 2010). (CICA.CA)
FASB Spending Most of Its Time on Convergence
Tammy Whitehouse at Compliance Week writes about the FASB’s first podcast in a series of podcasts covering international accounting convergence and other accounting topics.
IASB concludes the 2008-2010 cycle of annual improvements to IFRSs
May 6, 2010 - The International Accounting Standards Board (IASB) today issued Improvements to IFRSs - a collection of amendments to seven International Financial Reporting Standards (IFRSs) - as its latest set of annual improvements. (IASB.org)
Second meeting of AICPA/FAF/NASBA “Blue Ribbon” Panel on Standard Setting for Private Companies
The Panel will hold its second meeting on Friday, May 14, at the FAF offices at 401 Merritt 7, Norwalk, CT 06851. The public portion of the meeting, from 9:10 am to 4:00 pm, with a lunch break, will be webcast live through the AICPA and FAF websites. (FASB.org)
Less Volatile Pension Proposals
CFO.com explores proposed IASB rule changes for pension accounting. Under the proposals, asset gains and losses would be recognized under other comprehensive income, not profit and loss.
UK's ASB Critical of IASB’s Derecognition Proposals
Accountancy Magazine reports that the Accounting Standards Board expressed concerns that proposals could lead to more derecognition of financial assets than is allowed under current rules.
FASB launches podcast series
FASB member Marc Siegel discusses international convergence of accounting standards and other topics. (FASB.org)
Audio recordings on Financial Instruments and Leases projects posted
An audio recording on the exposure draft Financial Instruments: Amortised Cost and Impairment, and on the Leases project are now available on the project pages. In addition, the Lease project team now offers a project email alert to keep you up to date with the project progress. (IASB.org)
Options for the Future of UK GAAP
The UK Accounting Standards Board is exploring reforms for its system of Generally Accepted Accounting Principles, including adoption of a three tier system. The ICAEW’s Nigel Sleigh-Johnson offers suggestions for the future in Accountancy Magazine.
IFRS Interpretations Committee appointments
May 4, 2010 - The Trustees of the International Accounting Standards Committee (IASC) Foundation, oversight body of the International Accounting Standards Board (IASB), announced today an appointment and reappointments to the IFRS Interpretations Committee, formerly known as the IFRIC. (IASB.org)
IFRS Impact Depends On Company
CFO.com reports on remarks a panel of financial executives at a Pace University accounting conference regarding the impact of IFRS on their companies and industries.
Live web presentations on defined benefit plans and extractive activities
Project teams of the IASB will hold separate web presentations introducing the two recently published due process documents in the forthcoming week: the recently published exposure draft on defined benefit plans and the discussion paper on extractive activities. (IASB.org)
IASB and ASBJ meet to discuss convergence with and intended adoption of IFRSs in Japan
April 30, 2010 - The International Accounting Standards Board (IASB) and the Accounting Standards Board of Japan (ASBJ) have held their eleventh meeting to review preparations for the convergence with and intended adoption of IFRSs in Japan. (IASB.org)
IASC Foundation releases IFRS Taxonomy 2010
April 30, 2010 - The International Accounting Standards Committee (IASC) Foundation today released the International Financial Reporting Standards (IFRS) Taxonomy 2010. (IASB.org)
Stable, Secure Funding Needed to Underpin IASB
SEC Chief Accountant James Kroeker talks about the importance of a stable, secure, broad based funding system for the IASB. Reuters covers Mr. Kroeker’s remarks at a Baruch College conference yesterday.
IASB Responds to Fears Regarding Pension Proposals
Accountancy Age reports that IASB member Stephen Cooper says pension accounting proposals released this week will lead to “fairer and more transparent” reporting of pension costs.
Repo 105 Accounting at Lehman Highlights Need for Convergence
In remarks regarding Lehman Brothers bank use of Repo 105 transactions, Philippe Danjou, IASB board member, said, “From an IFRS perspective I would suspect that most transactions would have stayed on the balance sheet.” Reuters reports from the Reuters Global Financial Regulation summit.
IASC Foundation and IASB emphasise greater investor participation in the development of IFRSs
April 29, 2010 - The Trustees of the International Accounting Standards Committee (IASC) Foundation and the International Accounting Standards Board (IASB) launched today a programme to enhance investors’ participation in the development of International Financial Reporting Standards (IFRSs). (IASC Foundation)
IASB proposes improvements to defined benefit pensions accounting
April 28, 2010 - The International Accounting Standards Board (IASB) published for public comment an exposure draft of proposed amendments to IAS 19 Employee Benefits. (IASB.org)
SEC Chief Accountant Says Convergence Need Not Be Completed by June 2011
While FASB and the IASB work to complete an unprecedented 11 standards over the next 14 months, SEC Chief Accountant James Kroeker told the Journal of Accountancy Tuesday that he would support the boards’ cutting the number of projects due in June 2011, provided there was good rationale for a delay.
Concerns over Move Towards Full Fair Value
Reuters reports that European Central Bank board member Gertrude Tumpel-Gugerell expressed concern about the U.S. push for full fair value. Concerns were also voiced about the IASB/FASB convergence project.
Impairment user questionnaire
April 26, 2010 - The International Accounting Standards Board (IASB) is seeking input from users of financial statements in the form of a questionnaire on the proposals regarding amortised cost measurement and impairment of financial instruments. (IASB.org)
IPSASB Publishes Proposals for Amendments under Its Annual Improvements Project
The International Public Sector Accounting Standards Board (IPSASB) released for comment exposure draft (ED) 44, Improvements to International Public Sector Accounting Standards (IPSASs). (IFAC.org)
Difficulties in Measuring the Largest Banks
Writing for the Huffington Post, James Kwak, coauthor of 13 Bankers, notes that differences between U.S. GAAP and IFRS results in difficulties in comparing banks balance sheets, and that derivatives netting allowed by U.S. GAAP can mask the true size of banks. In his article, he refers to an article by Daniel Gross of the Centre for European Policy Studies, which can be found here.
Is Convergence Plan Too Ambitious?
The IASB and FASB recent progress report has raised concerns about the pace the two standard setters have set. Accounting Age reports that some are worried that the quality of international standards could be compromised.
IASB Work Plan
View the recently updated International Accounting Standard Board’s work plan. (IASB.org)
Challenges and Opportunities in Japan
Accountancy Age reports on IFRS preparations in Japan.
Korea Preparing for IFRS Deadline
IASB Chairman Sir David Tweedie was interviewed by JoongAng Daily regarding Korea's preparations for IFRS. He believes Korea is making good progress.
ICAEW Comments on Progress Report
Accountancy Magazine reports on comments made by ICAEW's Dr. Nigel Sleigh-Johnson regarding the FASB/IASB quarterly progress report on accounting convergence.
Paul Pacter Appointed to IASB
Accountancy Age provides a profile of Paul Pacter, who will fill the vacancy created by the retirement of Jim Leisenring.
Paul Pacter appointed to the IASB
April 15, 2010 - The Trustees of the International Accounting Standards Committee (IASC) Foundation announced today the appointment of Paul Pacter to the International Accounting Standards Board. (IASB.org)
Financial System Considerations in IFRS Conversion Projects
April 15, 2010 – Prepared by the Information Technology Section of the AICPA, this white paper explores information technology implications of an IFRS conversion, including the impact on financial and business reporting, implementation considerations and lessons learned from the European experience.
Financial Instrument Convergence Will Be a Challenge
Accountancy Age reports on the IASB and FASB joint progress report on accounting convergence.
Panel Meets to Discuss Private Company Financial Reporting
Members of a blue-ribbon panel established to provide recommendations on the future of accounting standards for private companies met for the first time Monday to discuss their views on the topic, which has been debated for decades. (Journal of Accountancy)
Repo Transactions to be Addressed by Rulemakers – April 8, 2010 - WebCPA reports that the FASB and IASB will meet to discuss derecognition and securitization issues.
Standard Setters Will Focus on Transparency – April 8, 2010 - Reuters reports on pending proposals on financial instrument accounting. Standard setters say they will continue to focus on transparency over stability.
IASB seeks feedback on extractive activities discussion paper – April 7, 2010 - The International Accounting Standards Board (IASB) published today the results of an international research project on a possible future International Financial Reporting Standard (IFRS) for extractive activities in the form of a discussion paper – Extractive Activities. (IASB.org)
Country Reporting Proposals for Mining and Oil Companies Not Enough – April 7, 2010 - The Publish What You Pay (PWYP) coalition said proposals for country-by-country reporting outlined in an IASB discussion paper for extractive activities are “too cautious”, according to an Accountancy Age article.
Bank Failures in U.S. Contributed to IASB Funding Shortfall – April 6, 2010 - Accountancy Age reports that the failure of Lehman Brothers and Bear Stearns contributed to a shortfall in funding for the International Accounting Standards Board.
EU Could Reduce IASB Funding – April 6, 2010 - According to a Financial Times article, Michel Barnier, EU internal market commissioner, suggested that future EU funding decisions could be tied to whether the IASB makes governance changes. Michael Cohn of WebCPA writes about the article.
International Financial Reporting Standards 2010 Bound Edition – April 5, 2010 - Through a special arrangement with the IASB, the Financial Accounting Foundation distributes the International Financial Reporting Standards 2010 Annual Bound Edition in the United States, U.S. possessions, Canada, and Mexico.
Press release from IASC Foundation Monitoring Board – April 2, 2010 - The Monitoring Board, established by public authorities in January 2009 to enhance the public accountability of the International Accounting Standards Committee Foundation (IASCF), met yesterday for the first time with the IASCF Trustees.
EC Regulator Still Concerned About IASB Governance – Michel Barnier says there are governance issues with the IASB. His remarks were made during an IASB monitoring board meeting. SEC chairman Mary Schapiro expressed concerns about ensuring consistent application of IFRS. Accountancy Age provides coverage.
IASB Needs to Pay More Attention to Emerging Markets – There is concern that that influence from Europe and the U.S. is overshadowing the interests of emerging markets. Reuters India reports on the IASC Foundation monitoring board meeting in London.
Concerns Expressed over Proposals to Amend Accounting for Legal Liabilities – Accountancy Age reports that there is growing concern over IASB proposals to amend IAS 37 - Provisions, Contingent Liabilities and Contingent Assets. According to the article, the SEC said "serious concerns" remain over the IASB's approach.
IFRS Deadline Extended for India's Banks – Banks and non-banking finance companies will get two more years before being required to file IFRS compliant financial statements. The Economic Times reports on the extension.
Boards Consider Requirements for Sensitivity Analysis Disclosures – BVWire News reports that the IASB and FASB are considering requirements for sensitivity analysis disclosures for financial instrument fair value measurements.
SEC and EU Regulators to Meet – Accountancy Age reports that the SEC chairman Mary Schapiro will meet with Michel Barnier, EU commissioner for internal market and services. The two will discuss accounting matters.
Basel Committee Presents Loan Loss Proposals to IASB – Risk.net reports that the Basel Committee on Banking Supervision has presented recommendations to the IASB on loan loss accounting. The IASB is receiving comments on its proposal to move to an expected loss model for recognizing loan provisions.
Liabilities – comment deadline extended – March 24, 2010 - In its March Board meeting, the IASB decided to extend the comment period for the exposure draft Measurement of Liabilities in IAS 37 to 19 May 2010. (IASB.org)
Live webcast on impairment phase of project to replace IAS 39 – On Tuesday 30 March IASB staff will present a live webcast on the impairment phase of the project to replace IAS 39, followed by a question and answer session. (IASB.org)
IASB Chairman Explains Regulatory Page – Sir David Tweedie talked to European finance ministers about a proposal to include regulatory data in financial statements. Accountancy Age provides coverage.
Convergence on Track, Stability to Follow – WebCPA reports on IASB Chairman David Tweedie's ECOFIN address where he said convergence efforts with the U.S. are on track for June 2011. Upon completion, he promised "a period of stability of accounting standards for newly adopting countries".
New IFRS for SMEs Update newsletter – March 16, 2010 - The IASB today published the first issue of the IFRS for SMEs Update newsletter – a regular staff summary of news relating to the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). (IASB.org)
Chairman of the IASB addresses ECOFIN meeting – March 16, 2010 - Prepared Statement of Sir David Tweedie, Chairman of the International Accounting Standards Board, to the meeting of the COUNCIL OF THE EUROPEAN UNION (Economic and Financial Affairs) on 16 March 2010. (IASB.org)
Live Webcast on Classification and Measurement of Financial Liabilities – The IASB staff will present a webcast regarding the status of the Board's discussions about the classification and measurement of financial liabilities and the next steps in the project. The webcast will be on Monday 22 March 2010 at 10:30am and 3pm UK time.
FASB, IASB Proposal Seeks to Clarify Reporting Entity Concept – FASB and the IASB Thursday published an exposure draft, Conceptual Framework for Financial Reporting: The Reporting Entity, that is part of a joint project between the boards to develop a common and improved conceptual framework for developing future accounting standards. (Journal of Accountancy)
Convergence Timetable Too Risky – Writing for Accounting Today, professors Paul B. W. Miller (University of Colorado Springs) and Paul R. Bahnson (Boise State) express serious concerns about the FASB/IASB convergence timetable and want the SEC to step in and stop "this runaway train". (WebCPA.com)
Japan, Australia and New Zealand Adopting IASB Fair Value Rules – Accountancy Age reports that Europe has still not endorsed IFRS 9, while other countries are deciding to adopt the new rules.
UK Regulator to Study IASB's "Regulatory Page" Idea – The IASB plan would include a separate regulatory page in financial statements, which reconcile reported net income to regulatory income. Accountancy Age reports on the UK Financial Services Authority early reaction to the proposal.
IASB and FASB publish proposals on reporting entity concept – The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) today published for public comment an exposure draft on the reporting entity concept. (IASB.org)
Presentation of items in OCI — status update – On 15 March and 19 March 2010 Stephen Cooper, Board member, Alan Teixeira, Director of Technical Activities and Henri Venter, Assistant Project Manager, will give a status update on the Board's deliberations about the presentation of items in Other Comprehensive Income (OCI) in a live webcast, followed by a question and answer session. (IASB.org)
Survey Shows Support for Early Adoption Option – According to a KPMG LLP survey, 49% of respondents said that they would like an option to adopt IFRS before 2015, if the SEC makes a decision to require or permit IFRS for U.S. companies. Reuters reports on the KPMG survey.
Japan will Allow IFRS 9 for Early Adopters – Japan will allow IFRS for certain “specified” companies starting with fiscal years ending on or after March 31, 2010. Accountancy Age reports on a Financial Times article, which says that the controversial standard IFRS 9 will be included in the standards available for use by Japanese companies.
IASB Proposes Adding Regulatory Page to Bank Financials – Accountancy Age reports that an IASB proposal would add a "regulatory page" to financial reports of financial institutions. This solution would supply information to regulators and relieve pressure to change accounting standards to meet regulatory goals.
IASC Foundation publishes second batch of training material for IFRS for SMEs – The International Accounting Standards Committee (IASC) Foundation published today the second batch of training material for the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). (IASB.org)
More Time for IFRS Evaluation – The SEC extended the timeline for possible transition to IFRS. CFO.com writes about the SEC announcement on February 24 and offers feedback from financial executives.
Wednesday 3 March – live webcast on project to replace IAS 37 – On 3 March 2010, Robert Garnett, IASB member, and Joan Brown, project manager, will hold a live webcast on IAS 37. The webcast will focus on the revised measurement proposals but also address their interaction with the other requirements proposed in a working draft. (IASB.org)
AICPA/FAF/NASBA Announce Members of "Blue-Ribbon Panel" to Address Standards for Private Companies – The American Institute of Certified Public Accountants (AICPA), the Financial Accounting Foundation (FAF), and the National Association of State Boards of Accountancy (NASBA) today announced the members of the new "blue-ribbon panel" established to address how U.S. accounting standards can best meet the needs of users of private company financial statements. (FASB.org)
Going Slow, SEC Gets It Right – In a Bloomberg article, David Reilly writes that the "go-slower approach" outlined by the SEC in evaluating IFRS was the right decision.
SEC Plan on IFRS Lacks Clarity – Accountancy Age reports that ICAEW head of financial reporting Dr. Nigel Sleigh-Johnson says that the SEC plan on IFRS lacks clarity on the U.S. commitment to adopting the international standards.
Countdown to Convergence – This article provides a synopsis priority convergence projects in the FASB and IASB Memorandum of Understanding. Because the projects are active and subject to change, updates will be posted periodically to the online version of this article at journalofaccountancy.com. (Journal of Accountancy)
SEC Announcement Keeps U.S. on Sidelines – Reuters reports that the SEC announcement of an IFRS work plan does not provide the clarity that some had wanted.
SEC Affirms Support for Single Set of Global Standards – WebCPA reports on the SEC's vote to issue a statement of support for a single-set of high quality global accounting standards and its approval to move forward with a work plan for possible incorporation of IFRS into the U.S. financial reporting system for U.S. issuers.
ICAEW Calls for US Clarity on IFRS – Accountancy Age reports that the head of financial reporting faculty of the Institute of Charted Accountants in England and Wales has called for clarity from the U.S. on its commitment to global standards.
Journal of Accountancy IFRS Resources – The Journal of Accountancy has compiled links to several JoA news headlines, featured articles, videos, and other resources on IFRS, accounting convergence, private company reporting and other important developments.
SEC to Consider IFRS Statement – In its first formal action on IFRS since Chairman Mary Schapiro took office, the SEC plans to consider its policy on the use of IFRS by U.S. issuers at an open meeting Wednesday. (Journal of Accountancy)
CFA Institute Provides U.S. Investor Perspectives on Revised SEC Roadmap on IFRS Adoption – In advance of the U.S. Securities and Exchange Commission's (SEC) expected release of its revised roadmap on the potential adoption of International Financial Reporting Standards (IFRS) in the U.S., CFA Institute today recommended four key milestones to the SEC. (Vocus/PRWeb – CFA Institute.org)
Strategic Decisions in the IFRS Conversion Process – Why CPA firms should look closely at the first-time adoption Standard, IFRS 1, before making any decisions when applying IFRS. (CPA Insider)
IFAC Global Survey Says International Standards Crucial to Investor and Financial Stability – Global accountancy leaders want the International Federation of Accountants to increase pressure for adoption, implementation, and enforcement of standards. (IFAC.org)
IFRS on Agenda for SEC Meeting on Wednesday, February 24 – The SEC has announced an open meeting for February 24. At the meeting, the Commission will consider whether to publish a statement regarding its continued support for a single-set of high-quality globally accepted accounting standards and its ongoing consideration of incorporating International Financial Reporting Standards into the financial reporting system for U.S. issuers. (SEC.gov)
Working draft of proposed IFRS to replace IAS 37 is now available; live webcast on 3 March – The IASB has posted on its website a working draft of a proposed IFRS to replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets. (IASB.org)
IASC Foundation publishes proposed IFRS Taxonomy 2010 – The International Accounting Standards Committee (IASC) Foundation today published for public comment an exposure draft of the International Financial Reporting Standards (IFRSs) Taxonomy 2010. (IASB.org)
Vacancies: Member, International Financial Reporting Interpretations Committee – The Trustees of the International Accounting Standards Committee (IASC) Foundation invite applications from suitable candidates to fill up to four vacancies on the International Financial Reporting Interpretations Committee (IFRIC). (IASB.org)
AICPA Issues Letter to Senate Committee on Banking on Fair Value Accounting – The American Institute of Certified Public Accountants strongly believes that independent, unbiased standard setting of private sector accounting principles is critical to capital markets and investor interests.
FEI Provides Recommendations to FASB and IASB on Convergence Standards – Comment Letters Request Three-Year Implementation Period; Flexibility to Choose Adoption (PRNewswire/Financial Executives International)
CFA Institute Director Says Don't Rush Hedge Accounting – Accountancy Age reports on the progress of planned changes to IAS 39 relating to hedge accounting. CFA Institute Director Vincent Papa says the IASB should not rush changes.
Standards Setters Continue Work on Fair Value – WebCPA provides an update on recent discussions between the IASB and FASB on efforts to improve fair value standards.
Will New IASB Chair Come from Asia? – As Asia influence grows, Reuters reports that candidates from the region may have an advantage to fill the chairman position, which will be vacant when Sir David Tweedie completes his second term in 2011.
Trustees clarify position on IFRS adoption objective and support for convergence – In a letter to the Financial Times, Gerrit Zalm, Chairman of the Trustees, responds to concerns that the constitutional emphasis on the objective of IFRS adoption globally represents a weakening of the Trustees' support for ongoing convergence efforts. (IASB.org)
Firms and Companies Continue Preparations for IFRS – WebCPA reports that companies are preparing for IFRS "at a measured pace" as they wait on more guidance from the SEC.
Trustees reinforce defenses from political pressure – ABC News reports on changes announced by Trustees of the IASC Foundation that are associated with the second part of its constitution review. (ABC News / Reuters)
More Clarity Needed from Government on IFRS Adoption in India – An article at livemint.com explains that accountants are looking for more clarity on requirements for net worth, comparative reporting and income tax calculations.
Banks Don't Like the Expected Loss Model – Accountancy Age reports that Banks that do not support recent IASB proposals for recognizing loan provisions complain that the proposals would be costly to implement and create pro-cyclical effects.
Accounting Convergence at Important Crossroads – Past and current challenges of U.S. and International accounting convergence are discussed in this Accountancy Age article.
GAAP Loses Weight – Marie Leone writes in the CFO.com Blog about a recent FASB update, which states that the general standards contained in the bound version of FASB's codification comprise approximately 2,900 pages of content. (FASB Update)
Japan Wants Larger Role – As Japan Moves towards IFRS adoption, it is seeking a larger role in the international standard setting process, according to a Reuters article.
IFRS Switch Presents IT Challenges – A COMPUTERWORLD article provides an overview of IT challenges associated with a conversion to IFRS.
Improvements Needed in IASB Governance – Regulators say more work is needed to improve governance over the International Accounting Standards Board (The New York Times / Reuters)
FASB Moving Toward More Fair Value – In an interview with Risk Magazine, FASB chairman Robert Herz discusses the extension of fair value accounting for financial instruments, despite the concerns expressed by bank regulators. (Risk.net)
Finance Executives Appointed to IASB РCFO.com reports that Elke K̦nig, former CFO at Hannover Re Group in Germany, and Darrel Scott, CFO at FirstRand Banking Group in South Africa, have been appointed to the IASB for terms starting in 2010.
US Move to Global Standards at Important Juncture – Top accounting firm executives comment on pending action on the IFRS roadmap. They warn there could be delays and worry about how political the debate may become. Reuters reports on interviews conducted at the World Economic Forum in Davos.
Concerns Expressed Over Proposals to Replace UK GAAP – Accountancy Age reports that certain large UK companies have challenged proposals to replace UK GAAP with IFRS for Small and Medium-sized Entities for unlisted companies. Concerns focused on how the proposals would affect subsidiaries of large listed companies.
Trustees appoint two leading financial executives to the IASB – The Trustees of the International Accounting Standards Committee (IASC) Foundation announced today the appointment of two leading financial executives to the International Accounting Standards Board (IASB). (IASB.org)
Groups Call for Slow Down in Move to Replace UK GAAP – Accountancy Age reports that HM Revenue Customs has called for a delay in the move to replace UK GAAP with a three-tiered system of financial reporting standards. The Institute of Chartered Accountants in Scotland called the timetable "unrealistic".
Minding the GAAP – Moss Adams CEO Rick Anderson discusses his new role as head of a blue-ribbon panel on private company financial reporting. (Journal of Accountancy)
IASB Will Not Change Fair Value Standards Exclusively for EU – Reuters reports IASB chair Sir David Tweedie said, "This is global. We are the IASB, not the European accounting standard board". He also said that if the IASB disagrees with FASB on convergence, it will do what it believes is right for the international community.
U.S. GAAP Should Require Gross Presentation of Derivates Exposure on Balance Sheet – Daniel Gros, Director of the Centre for European Policy Studies (CEPS) in Brussels, writing for VoxEU.org, explains how full leverage for U.S. banks is masked by netting of derivatives. IFRS requires gross presentation of derivatives exposure on the balance sheet. Differences in the standards hamper international comparison of banks. (VoxEU.org)
UK Regulator Warns the Convergence Project Could Lead to Unnecessary Complexity – Accountancy Age reports that Adair Turner, head of the Financial Services Authority, has expressed concern about the IASB/FASB convergence project.
Proposals to Rewrite IAS 37 Spur Debate – Recent proposals on how to measure liabilities under IAS 37 Provisions, Contingent Liabilities and Contingent Assets have created concern that the proposed rules could prejudice court cases. Accountancy Age writes about the issues.
IASB issues limited exemption amendment to IFRS 1 – The International Accounting Standards Board (IASB) issued today a minor amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards. (IASB.org)
Deloitte Report Recommends Creating Judgment Framework – The report focuses on how a judgment framework can help remove biases in financial decision making. (PR Newswire)
Japan Council to be Established to Study Accounting Standards for Unlisted Companies – Japan's IFRS Council, a private organization formed to facilitate IFRS implementation in Japan, has agreed to recommend establishment of a new council to consider accounting standards for unlisted companies, according to a news release on the Accounting Standards Board of Japan website.
FASB Improves Fair Value Disclosure Requirements – CFO.com provides coverage on FASB's Accounting Standards Update 2010-06 Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. The update responds to constituent calls for more detailed disclosures and brings requirements more in line with international standards. (FASB ASU 2010-06)
The Transition to IFRS – Can the convergence project replace it? The CPA Insider addresses the question of whether accounting standard convergence is a substitute for adoption of IFRS.
Accounting Standard for Emissions Needed – Peter Williams writes in Financial Director about the accounting profession's effort to promote the need for a universal accounting standard for carbon emissions. The IASB is working on a standard for emission trading. An exposure draft is scheduled for the second quarter of 2010.
Boards Meet, Discuss Fair Value Measurements – WebCPA reports that the FASB and IASB reached tentative decisions regarding fair value measurements, including a tentative definition of fair value.
Bank Bonuses Inflated By Fair Value Rules – Adair Turner, head of the UK Financial Services Authority, said accounting rules led to inflated bonuses at banks. (Accountancy Age)
Making financial reporting simpler and more useful: The way forward – The Global Accounting Alliance (GAA) has published its report Making financial reporting simpler and more useful: The Way forward which is based on a series of roundtable events held in London, Beijing and New York in 2009. (Global Accounting Alliance)
Regulators, Standard-Setters Need to Work Together – Lord Adair Turner, head of the UK’s Financial Services Authority, suggested there is a need to explore loan loss provisioning models that are forward looking and consider an economic loss provision. Citywirei> reports on Lord Turner's speech.
35 Countries Say They Will Use IFRS for SMEs Within Three Years – Accountancy Agei> reports that a recent poll indicates that more than 35 countries will require or permit the use of IFRS for Small and Medium-sized Entities within the next three years.
Take the Time to Get It Done Right – Speaking about the EU delay over endorsing changes to recently issued IASB changes to financial instrument accounting, the head of the UK’s Financial Reporting Council said, "It seems to me to make some sense. We need to take time on these things and we need to get them right." (Reuters India)
Confusion in UK Over When To Accrue Bonus Tax – According to a Financial Timesi> article, there is a lack of clarity under IFRS about when to accrue a recently announced super tax on bank bonuses. The tax was announced close to year-end, but is not expected to be enacted into law until later in 2010. (Tiered subscription model)
Panel in India May Recommend Partial IFRS Roll Out in 2011 – Dailey News & Analysisi> reports that a panel set up by the ministry of company affairs in India may recommend a phased adoption of IFRS starting with large corporations from April 1, 2011. A second phase would start in 2013 – 2014. (DNAindia.com)
Central Bankers Call for Accounting Reform – The oversight body of the Basel Committee on Banking Supervision has called for development of robust provisioning system using an expected loss model, but warns against the expansion of fair value. (Share.net)
Moss Adams CE0 to Head Blue-Ribbon Panel on Private Company Financial Reporting – Rick Anderson, CEO of Moss Adams LLP, on Monday was named chairman of the blue-ribbon panel established to provide recommendations on the future of accounting standards for private companies. (Journal of Accountancy)
More Progress Needed on Reform Proposals – Risk Magazine reports on a meeting of the Basel Committee on Banking Supervision oversight board on January 10. More progress is needed in multiple areas, including development of a provisioning proposal based on an expected loss model. (Risk.net)
Chairman Tweedie Provides Clarification on FRC Study – Accountancy Age reports that Sir David Tweedie, in a letter to the Financial Times, said that the recently released FRC study on M&A accounting was conducted in 2008, before the current version of IFRS 3 became effective. According to Chairman Tweedie, "The revised standard addresses many of the application challenges referred to by the FRC study."
PCFRC Releases Meeting Highlights, Future of Private Company Reporting Discussed – At their December meeting, the Private Company Financial Reporting Committee (PCFRC) met with the Financial Accounting Standards Board (FASB) and the Small Business Advisory Committee (SBAC). A number of important issues to private companies were discussed, including the future of financial reporting for nonpublic companies. (PCFR.org)
IASB Issues ED for Contingent Liabilities – On January 5, the IASB issued an exposure draft which contains revised proposals for measuring liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. CFO.com writes about the proposed guidance on measuring contingent liabilities.)
FRC says improvements are needed in M&A accounting – A study by the UK’s Financial Reporting Council (FRC) says that quality improvements are needed in accounting and reporting for mergers and acquisitions. (frc.org.uk)
Tweedie Nominated as ICAS Vice President – Accountancy Age reports that Sir David Tweedie, Chairman of the IASB, has been nominated for vice president of the Institute of Chartered Accountants of Scotland. He will become president of the Institute in 2012.
IASB re-exposes proposals on measuring liabilities for asset decommissioning, legal disputes and similar items – The International Accounting Standards Board (IASB) today published for public comment an exposure draft of one section of a replacement for IAS 37 Provisions, Contingent Liabilities and Contingent Assets. (IASB.org)
Financial Crisis Advisory Group issues letter to G-20 on IASB and FASB progress – The Financial Crisis Advisory Group (FCAG), an independent advisory body to the IASB and FASB, issued a letter to G-20 participants. (IASB.org)
IFRS 9 Will Lead to Abuses – According to an article at Risk.net, IASB member Jim Leisenring said that recently issued IFRS 9 Financial Instruments will "inevitably lead to abuses and accounting arbitrage". (Life and Pensions / Risk.net)
Panel Concerned About Application of IFRS 8 – Accountancy Age reports that The Financial Reporting Review Panel of the UK's Financial Reporting Council has expressed concern about application of IFRS 8 Operating Segments.
Companies Relocating to Ireland have IFRS Grace Period – Legislation gives foreign companies relocating headquarters to Ireland a grace period before being required to adopt IFRS. The Sunday Business Post Online (The Post.IE) reports on the legislation.
Private Equity Firms Concerned About Consolidated Reporting – An article in The Wall Street Journal comments on how convergence efforts could affect reporting of investments.
Japan Concerned about Move Toward U.S. Fair Value Position – The chief executive of the Tokyo Stock Exchange is concerned about different IASB and FASB positions on fair value. Movement toward the U.S. position could jeopardize Japan’s decision to adopt IFRS. (Financial Times, tiered subscription)
Chinese Accounting Standards May Be Accepted in Hong Kong – The New York Times reports that Chinese companies listed in Hong Kong may be allowed to file reports using Chinese accounting standards in 2010.
Argentina to Require IFRS in 2012 – The Wall Street Journal reports that the National Securities Commission will require Argentine public companies to adopt IFRS starting in 2012. Companies will be given an option to adopt early in 2011.
Canadian Lawyers Need to Prepare for IFRS Transition – While mandatory adoption for Canadian companies occurs in 2011, Canadian counsel will have a lot of work to do in the year leading up to the transition. Westlaw Business (Reuters) highlights some of the challenges.
Accounting Stories in 2009 – CFO.com provides links to several of their best accounting and auditing stories in 2009, including stories on IFRS and accounting convergence.
Exploring Separate Standards for Private Companies – A blue-ribbon panel to be formed by the AICPA, the Financial Accounting Foundation and the National Association of State Boards of Accountancy will address standard setting for private companies. CFO.com writes about the panel and the debate ahead.
IPSASB Achieves Goal of Substantial Convergence With IFRSs – At its December 8-11 meeting in Rome, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) achieved its strategic goal of substantial convergence with the International Financial Reporting Standards (IFRSs) dated December 31, 2008, with a series of new or improved standards. (IFAC.org)
Convergence Less Important Than Improving Standards – The Financial Times reports on a CFA Institute survey. According to the article, a majority of respondents believe that improving standards so they are more useful for making investment decisions is "at least as important or more important" than reducing complexity or convergence. (Financial Times, tiered subscription)
EU Approves IAS 32 Amendment – The European Council of Ministers has approved an amendment to IAS 32 Financial Instruments: Presentation. The amendment, issued by the IASB in October, addresses the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. (Accountancy Age)
Politics in Wake of Financial Crisis Causes Problems – Oxford Analytica in a Forbes.com article addresses how politics have affected standard setting and accounting standard convergence.
IFRS Convergence – We're Back on Track! – Recent events signal that the U.S. GAAP and IFRS convergence process has been re-invigorated. (CPA Insider)
Harvey Goldschmid Named Trustee – CFO.com reports that Columbia University law professor and former SEC Commissioner Harvey Goldschmid has been named as a Trustee of the IASC Foundation Trustee. Goldschmid is looking for a more independent funding structure for the IASB, according to the article.
Politics and Accounting – The Wall Street Journal discusses the 2011 deadline for accounting convergence and the decision in Europe to not endorse IFRS 9.
Debate over IFRS 9 – WebCPA reports that IASB member Jim Leisenring told attendees at a New York conference to disregard the recently issued standard on recognizing and measuring financial instruments. Mandatory adoption is five years away and there may be changes as the FASB works on its standards for financial instruments.
Michael Barnier New EU Commissioner for Internal Markets – There is concern in the City of London over the appointment of Michael Barnier, including fear that his influence will create new challenges for the IASB, according to an Accountancy Age article.
AICPA and World Accounting Bodies Call for Single Standard for Climate Change Reporting – The American Institute of Certified Public Accountants joined with 12 major accounting institutes around the world and The Prince of Wales Accounting for Sustainability Project in an open letter to political leaders attending the Copenhagen Convention on Climate Change. (AICPA)
IASC Foundation Publishes 2010 Architecture for the IFRS and IFRS for SMEs Taxonomies - International Accounting Standards Committee (IASC) Foundation published The IFRS Taxonomy 2010 Architecture Draft for public comment. (IASB.org)
FASB Chairman Defends Fair Value, Calls for Separation from Banking Regulation - FASB Chairman Robert Herz on Tuesday delivered a rapid-fire policy speech that addressed head on criticism of the role of accounting standards in the financial crisis and called for GAAP to be "decoupled" from bank regulation. (Journal of Accountancy)
IASC Foundation Announces Two Successors for Retiring Trustees - Following approval by the Monitoring Board, the International Accounting Standards Committee (IASC) Foundation announced the appointment of two Trustees, Yves-Thibault de Silguy from France and Harvey Goldschmid from the United States. (IASB.org)
Tweedie to Retire in 2011 - Reuters reports on the IASB announcement that it has started a search for a new chairman. Chairman Tweedie will retire at the end of his second term in June 2011.
IPSASB Issues Standard on Agriculture as Part of its Global Convergence Program - The International Public Sector Accounting Standards Board (IPSASB) has taken a further step in its global convergence program with International Financial Reporting Standards. (IFAC.org)
Trustees Seek Nominations for Chairman of the IASB from 2011 - The Trustees of the International Accounting Standards Committee Foundation, the oversight body of the IASB, have launched a global search to identify a successor to Sir David Tweedie as Chairman of the IASB. Sir David Tweedie will retire on June 30, 2011 when he completes his second term. (IASB.org)
Financial Crisis Advisory Group Meeting - The Financial Crisis Advisory Group (FCAG) will be meeting on December 15, 2009 to discuss the IASB and US FASB actions in response to the FCAG's July 2009 report, as well as other developments in standard-setting and regulatory environments. (IASB.org)
Climate Reporting Framework Needed - A proper reporting framework is needed if sustainability is to become a priority for corporations. Many believe that the International Accounting Standards Board is best suited to develop accounting and reporting standards for emissions, according to Accountancy Age article.
Survey Shows Support for Common Private Company Standards in Europe - According to an article at Fresh Business Thinking, a Nexia International survey reveals support in Europe for a common set of accounting standards for non-listed companies.
Can Adoption of IFRS Lead To Compliance Driven Reporting - Accountancy Agei> reports on a study that suggests that since the adoption of IFRS in the UK, there has been an increase in non-GAAP measures and concern about movement toward compliance-driven reporting.
EU Regulator Questions Governance of IASB - According to a Reuters news release reported by FOREXYARD, the chairman of the Committee of European Securities Regulators (CESR) has expressed concern about the governance structure of the IASB and called for an overhaul.
Will Conversion Be Necessary? - CFO.com addresses the question whether conversion to IFRS will be necessary if convergence efforts between the IASB and FASB are successful.
IFRS for SMEs: The Next Standard for U.S. Private Companies? - IFRS for SMEs is a self-contained, standalone set of financial accounting and reporting standards. At approximately 230 pages, IFRS for SMEs is a simplified version of full IFRS. (Journal of Accountancy)
Some Companies May Defy EU Delay of Accounting Standard - The European Union delayed endorsement of the IASB's recently issued IFRS 9. The Financial Times reports that some companies may present proforma accounts in 2010, and may begin preparing accounts for internal use this year in accordance with the new rules. (Tiered Subscription)
IFRIC Issues Guidance on Extinguishing Financial Liabilities with Equity Instruments - The International Financial Reporting Interpretations Committee (IFRIC) issued an interpretation that provides guidance on how to account for the extinguishment of a financial liability by the issue of equity instruments. (IASB.org)
IASB Issues Minor Amendment to Pensions Accounting and Proposes Consequential Change for First-time Adoption of IFRSs - The IASB issued a minor amendment to its requirements on accounting for pension plans, and separately published for public comment a proposal to amend IFRS 1 First-time Adoption of International Financial Reporting Standards. (IASB.org)
Loan Proposal Move in Right Direction, But Too Restrictive - Speaking to Risk Magazine, U.S. Comptroller of the Currency John Dugan says an expected loss model for loan impairments is a move in the right direction. However, proposals introduced in the IASB's November 5 exposure draft may be too restrictive. (Risk.net) Read a related IFRS.com blog.
Insurance Analysts Want More Clarity - According to a PricewaterhouseCoopers survey, insurance analysts say that the IASB and FASB should work on a new framework and that insurance accounting is distinctive enough to have its own reporting model. Telegraph.co.uk reports on the survey.
House Panel Eases Threat to FASB Independence - The House Financial Services Committee on Thursday removed language from an amendment to the proposed Financial Stability Improvement Act (FSIA) (H.R. 3996) that would have given a new systemic risk regulator power to oversee FASB standard-setting activities. (Journal of Accountancy)
IFRS: Benefits are in Eyes of Beholder - Benefits of IFRS can vary greatly from company to company. CFO.com writes about a Financial Executives International conference roundtable discussion recently held in New York.
IFAC Presses for Action to Adopt and Implement Global Financial Standards - The International Federation of Accountants' (IFAC) 32nd annual Council meeting in Washington, D.C., this week emphasized the urgency of achieving global adoption and implementation of financial standards, especially for accounting and auditing. (IFAC.org)
Former SEC Chairs Warn Against Moving Oversight of Standards - In an article titled Don't Let Banks Hide Bad Assets in The Wall Street Journal, three former SEC chairmen warn about the risks of transferring accounting standards oversight to a systematic risk regulator.
Banker Critical of European Response to IFRS 9 - Accountancy Age reports on a letter to the Financial Times from Douglas Flint, CFO at HSBC. The letter is critical of Europe's decision to delay endorsement of the standard.
Bank Regulators Want More Control Over Accounting - According to CFO.com, SEC Commissioner Elisse Walter is fighting proposals that would subject FASB to bank regulator oversight.
SEC Commissioner Supports Global Standards - SEC Commissioner Kathleen Casey said she supports development of a single set of high quality global accounting standards, according to Reuters.
Herz Says IFRS Ball Is in SEC's Court - CFO.com reports that Robert Herz, FASB Chairman, said that the answer to "the $64,000 question", whether or not we are heading toward IFRS adoption, rests with the SEC at this point. The SEC is expected to provide more clarity on its IFRS roadmap by the end of fall.
Accounting Proposal Is a Bad Idea - Former Chair of the Federal Reserve Paul Volcker said that a proposal that would grant regulators the ability to block accounting standards "is a terrible idea". The New York Times provides coverage of Mr. Volcker'’s speech.
AICPA, CAQ Oppose Giving Control Over Standards to Bank Regulators - WebCPA reports that the AICPA and the Center for Audit Quality have communicated strong objections to proposed legislation that would give bank regulators control over accounting standards.
Business Model Important in IFRS 9 - The IASB uses a business model approach in IFRS 9 in determining whether a financial asset is recorded at amortized cost or fair value. CFO.com provides an overview IFRS 9 Financial Instruments, the first step in a three-part overhaul of financial instrument accounting.
Highlights of IFRS Research - The Journal of Accountancy is running a series of articles that samples research and distills key findings for busy practitioners and preparers. This article provides highlights of several IFRS research studies.
New Financial Instrument Standard Issued by IASB - Accountancy Age writes about the IASB's new standard for classification and measurement of financial assets. Work on the standard took priority this year as the IASB responded to the financial crisis. Europe's reaction to the new standard will be closely watched, according to the article.
Monitoring Board Supports Convergence Work - The IASC Foundation Monitoring Board issued a statement of support for the IASB and FASB plan to intensify their work on convergence projects. (Accountancy Age)
Live Web Presentation on IFRS 9 Financial Instruments - On Thursday November 12, staff of the IASB will present a webcast on the forthcoming IFRS 9 Financial Instruments.
Mechanics of Loan Loss Proposal Could Be Difficult - According to an article in U.S. Banker, the mechanics of applying an expected loan loss model could be difficult. The expected loss model was outlined in an IASB exposure draft issued on November 5.
Schapiro Acknowledges Convergence Project - CFO.com writes about SEC Chair Mary Schapiro's statement last week regarding convergence efforts of the IASB and FASB.
S&P Responds to Financial Statement Proposals - According to an article at Director of Finance Online, Standard & Poor's Ratings Services raises questions about the joint IASB/FASB Discussion Paper Preliminary Views on Financial Statement Presentation.
Convergence Has Not Eliminated All Differences - Past convergence efforts has not eliminated all differences in accounting standards. CFO.com explores examples of where past convergence efforts have left differences in the final rules issued by the FASB and IASB.
SEC Chair Encouraged By Convergence Efforts - According to Accountancy Age, SEC chairwoman Mary Schapiro released a statement of support for the IASB and FASB's reaffirmed commitment toward standard convergence.
SEC Struggles With Lack of Consensus - While many agree with the goal of a single set of global standards, there is a lack of consensus on how to get there. Reuters reports on comments from an SEC deputy chief accountant Julie Erhardt.
French May Seek Greater EU Control Over Accounting Standards - Accountancy Age reports that French finance minister Christine Lagarde may lobby for more political control over international accounting standards.
IASB Proposes New Accounting Model for Financial Instruments - The IASB on Thursday published proposals that if implemented would fundamentally shift the way banks and other financial institutions report the value of loans (or portfolios of loans) and other financial instruments carried at amortized cost. (Journal of Accountancy)
IASB Will "Tread Carefully" - Accountancy Age reports on the IASB’s proposals on financial instrument impairments. The IASB has set aside an eight-month comment period and said it will seek input from a broad range of interests before deciding how to proceed.
IASB Moves Ahead With Expected Loss Proposal - According to a Financial News article reported by the Wall Street Journal, the IASB has issued proposals that introduce the use of an expected loss model for booking impairments on financial instruments. (Subscription)
Letter Encourages Congress to Retain SEC Oversight of FASB - A group of key stakeholders in U.S. capital market regulations sent a joint letter to the leaders of the House Financial Services Committee to discourage possible proposals that would realign the oversight of FASB within the structure of systemic risk regulation. (Journal of Accountancy)
IASB Simplifies Requirements for Disclosure of Related Party Transactions - The International Accounting Standards Board (IASB) issued today a revised version of IAS 24 Related Party Disclosures that simplifies the disclosure requirements for government-related entities and clarifies the definition of a related party. (IASB.org)
Will Some Leases Be Excluded from New Lease Accounting Standard? - CFO.com asks, "When is a lease a lease?" The impact of lease accounting proposals would have a significant impact on companies' balance sheets.
Live Web Presentation on Financial Instruments: Amortised Cost and Impairment Exposure Draft - On November 5, 2009, IASB staff will give a live web presentation on the exposure draft on Financial Instruments: Amortised Cost and Impairment. (IASB.org)
Better Compliance Needed with IFRS 7 Disclosures - Risk.net reports that the Committee of European Securities Regulators (CESR) says it "sees room for better compliance" in financial disclosures.
Summary of IASC Foundation Trustees Meeting - The Trustees of the IASC Foundation, the oversight body of the IASB, published the conclusions of their meeting in New York, USA on October 7 and 8, 2009. (IASB.org)
FASB and IASB Redoubling Efforts - Robert Herz and Sir David Tweedie announced that they would meet more frequently to work on joint projects. The two were speaking at a joint conference sponsored by the IASC Foundation and the AICPA. CFO.com reports on the conference, including comments from former Federal Reserve Board Chairman Paul Volcker.
Don't Wait on SEC, Keep Converging - Speaking at a joint IASC Foundation/AICPA conference, SEC Chief Accountant James Kroeker said standard setters should keep moving forward with convergence efforts. WebCPA provides coverage of Mr. Kroeker's speech.
Should American Standards Be Set By FASB or IASB? - CFO.com writes about a book to be released in November by Robert Pozen, the former chair of the SEC's Committee to Improve Financial Reporting (CIFR), which suggests that only the largest U.S. companies should consider IFRS.
Accounting Association Says EU Could Jeopardize Global Standards - European Voice reports that Michael Izza of the Institute of Chartered Accountants in England and Wales said that political interference from the EU could alienate the U.S, Japan, Australia and China.
Ireland to Introduce Legislation Allowing U.S. GAAP - According to Accountancy Age, the Republic of Ireland plans to introduce legislation that would allow certain companies to file using U.S. GAAP.
New AICPA Chairman Answers Questions - Accounting Today asks incoming AICPA Chairman Bob Harris about his upcoming year as Chairman of the AICPA and the challenges the profession will face.
FASB and IASB Still Apart on Fair Value - The two standard setters are at odds on how to value financial instruments. Reuters reports that the standard setters discussed exploring a presentation that would enable investors to reconcile between the two approaches, if they are not ultimately able to agree on a common model.
Exposure Draft on Rate-Regulated Enterprises - The issuance, last July, by the International Accounting Standard Board of its exposure draft on rate-regulated activities provides a perfect illustration of the convergence process between U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards. (AICPA CPA Insider)
Financial Executives Split on IFRS - Grant Thornton LLP releases results of a national IFRS survey conducted with CFOs and senior comptrollers. According to the survey, 40 percent said that they do not believe that U.S. companies should ever have to use IFRS. Another 39% said they believe IFRS should be required in 3 to 5 years. An additional 14% said IFRS should be required in 5 years or longer, while 7% said IFRS should be required immediately.
Standard Setters Will Meet, Discuss Differences - CFO.com reports that the IASB and FASB will meet this week. As each group gets closer to completion of the first phase of revising financial instrument accounting, differences in approach are emerging. The most recent appears to be differences in impairment models, with FASB favoring an incurred loss model and the IASB exploring an expected loss model.
PCFRC Meets, Discusses future of GAAP for Private Companies - The Private Company Financial Reporting Committee met in Charlotte last week. WebCPA reports that the group discussed a number of issues, including FASB’s disclosure project, confusion over Codification accounting standard updates and the future of private company accounting.
Accounting Standards Board of Japan Meets with Financial Accounting Standards Board to Discuss Global Convergence - (BUSINESS WIRE) Representatives of the Accounting Standards Board of Japan (ASBJ) and the Financial Accounting Standards Board (FASB) gathered this week in Norwalk, CT.
FASB Establishes Not-for-Profit Advisory Committee - The Financial Accounting Standards Board (FASB) announced the establishment of the Not-for-Profit Advisory Committee (NAC). The NAC is intended to serve as a standing resource for the FASB in obtaining input from the not-for-profit sector on existing guidance, current and proposed technical agenda projects, and longer-term issues affecting those organizations. (FASB.org)
Video: Excerpts from New AICPA Chairman's Inaugural Speech - Robert R. Harris, CPA, addresses the AICPA governing Council for the first time as AICPA Chairman. In his speech, he outlines key areas where he will focus during his tenure as AICPA Chairman. (Journal of Accountancy)
Candidates for Expert Advisory Panel Membership (Expected Cash Flow Approach) - The International Accounting Standards Board is seeking candidates to participate in an expert advisory panel (EAP) that will advise the Board on the operational issues surrounding the application of the Expected Cash Flow approach (ECF). (IASB.org)
New AICPA Chairman Outlines Goals, Council Releases GAAP Survey at Fall Meeting - Newly elected AICPA Chairman Robert R. Harris said he will focus on four key areas: IFRS, sustainability, reregulation and involving young CPAs in the profession. In other news, the AICPA released a poll of council members, which shows strong support for GAAP differences for private companies and non-profit organizations. (Journal of Accountancy)
IASB Moving Forward - WebCPA reports that IASB Chairman David Tweedie will deliver revised fair value rules in November and not wait on the FASB to finalize its own revisions. However, he says he is committed to working with FASB on bridging differences in approach.
Melancon: Issues Facing CPAs Include Globalization, Economic Recovery - AICPA President and CEO Barry Melancon, speaking at the fall meeting of the Institute's governing Council, gave an update on the impact of globalization on the profession, the AICPA's ongoing efforts to support members and the public during the economic downturn and recovery, and on new technology efforts on the horizon. (Journal of Accountancy)
Time to Consider Separate GAAP for U.S. Private Companies - Speaking at the AICPA's governing council meeting, Private Company Financial Reporting Committee Chair Judith O’Dell said, "Now is really the time to consider a separate GAAP." Accounting Today covers O'Dell's address. (WebCPA)
Insurance Group Expresses Concern about FASB Proposal - The Group of North American Insurance Enterprises (GNAIE) has raised concerns about FASB's proposed accounting standards update on improving fair value disclosures. The group believes that if the scope of the proposal is not revised, information among companies may not be comparable. (WebCPA)
Position Paper Warns IASB About Pension Changes - A position paper by EDHEC-Risk warns the IASB about the consequences of getting rid of the corridor approach in future pension accounting proposals. (CFO-news)
Europe Could Derail U.S. Adoption of Global Standards - Speaking to Accountancy Age, FASB Chair Robert Herz expressed concern about pressure being applied to the IASB from parts of Europe. The IASB's ability to withstand pressure from Europe will be a "critical" issue in the U.S. decision to adopt global accounting standards.
France Will Continue Voicing Dissatisfaction with Proposed Accounting Changes - According to a Reuters article reported by FOREXYARD, French Economy Minister Christine Lagarde said that revisions to IAS 39 "should not be revised in a sense that accelerates fair value".
FASB Chief Says SEC Will Re-Focus on IFRS - Accountancy Age reports that FASB Chair Robert Herz said that the SEC will begin to re-examine IFRS this fall. He said, "I think it will continue to be somewhat of a cautious and measured approach".
UK Regulator to Focus on Intangible Accounting - UK's Financial Reporting Council (FRC) will target 20 companies and review how the companies documented the acquisition of intangible assets. Accountancy Age reports on the program that will be conducted by the Financial Reporting Review Panel of FRC.
SEC Crafts Strategic Goals for 2010-2015 - The SEC on Thursday released its draft Strategic Plan for Fiscal Years 2010–2015, which includes, among other goals, a continued commitment "to promote the establishment of high-quality accounting standards by independent standard setters" and support for "a single set of high-quality global accounting standards." (Journal of Accountancy)
SEC Chairwoman Shapiro Supports International Standards - According to AccountancyAge, Mary Schapiro expressed her "commitment" to global accounting standards in a speech delivered to the International Organization of Securities Commissions in Basel, Switzerland.
IASB Amends the Accounting for Rights Issues - The International Accounting Standards Board (IASB) issued an amendment to IAS 32 Financial Instruments: Presentation. The amendment addresses the accounting for rights issues (rights, options or warrants) that are denominated in a currency other that the functional currency of the issuer. (IASB.org)
Deloitte Survey: Respondents Want Roadmap Approved - WebCPA reports on a Deloitte IFRS survey, which was published on Monday. With over 150 financial executives participating, 51% responded that the SEC should approve the proposed roadmap, but consider pushing back the mandatory deadline a year, and 19% responded that the SEC should approve its proposed road map "as is". (WebCPA) (Deloitte Survey)
Accounting Leaders Recommend Changes to IASB's Constitution - Global accounting leaders met on Tuesday in New York as part of the constitution review process of the International Accounting Standards Committee Foundation (IASCF), the oversight body of the International Accounting Standards Board. (Journal of Accountancy)
Small Businesses Not Ready to Adopt IFRS for SME's - According to a CFO.com article, small businesses are not rushing to adopt IFRS for Small and Medium-sized Entities. The article discusses the need for a "culture shift" before companies are ready to move away from the rules-based U.S. standards. Acceptance by U.S. lenders, creditors and investors will also be important to adoption gaining traction in this country.
Live Web Update on Project to Replace IAS 39 Financial Instruments - On October 8, 2009, staff will present an update on the progress to replace IAS 39 Financial Instruments in two identical webcasts, at 10am and 2pm London time. (IASB.org)
FASB Webcast Series – The Investor: An Important Voice in Standard Setting - The webcast, scheduled for Thursday, October 15, 2009, will discuss the FASB's outreach efforts to investors for its standard-setting activities. (FASB.org)
IASB Disagrees with FASB's Approach on Fair Value - Reuters reports that IASB Chairman Sir David Tweedie said, "Their proposal is everything at fair value. I don't think that is acceptable worldwide and in some segments of the United States either." The different approaches raise concern about meeting a 2011 deadline for convergence called for by G20 leaders.
Interpreting IFRS - With the increasing acceptance of IFRS in the global economy and its possible adoption in the U.S., CPAs are keenly interested in developing a broader understanding of international standards. This Journal of Accountancy article will help you gain an understanding of the role of the International Financial Reporting Interpretations Committee (IFRIC).
IASB Chairman Addresses Europe's Economic and Monetary Affairs Committee - Sir David Tweedie tells the Committee of the European Parliament that fair value reforms are on track and that the IASB will not "blindly" follow the U.S. FASB. AccountancyAge reports on the Chairman's speech.
Implications of Capitalizing Development Costs - Why U.S. companies may need to consider the systems that are in place with a view to upgrading the level of data captured many years before the transition to IFRS. (AICPA CPA Insider)
"Last Chance for a Generation" - Sir David Tweedie, Chair of the International Accounting Standards Board, warned the European Parliament, "This is the last chance for a generation for global standards – we won't get another chance." The Financial Times reports that Tweedie said that the opportunity for establishing global standards is good. (Financial Times Tiered Subscription)
FASB Allows Early Adoption of Key Provisions of New Revenue Recognition Approach - FASB on Wednesday brought U.S. GAAP closer to the approach FASB and the International Accounting Standards Board (IASB) have outlined in their preliminary views documents for their joint revenue recognition project that is scheduled for completion in 2011. (Journal of Accountancy)
IFRS for the United States: Making the Talent Transition - Although there is uncertainty regarding the IFRS roadmap, there are preliminary steps companies can take to prepare for the possibility that IFRS may be adopted in the U.S. Robert Half Management Resources has prepared a whitepaper with information on how your organization can start preparing for IFRS.
Live Web Presentation on IASB Proposals for Rate-Regulated Activities - On October 5, 2009 IASB, staff will give a live web presentation on the recently published exposure draft on the accounting for rate-regulated activities. (IASB.org)
International Concerns About Convergence Strategy - Accountancy Age reports that a senior member of the Institute of Charted Accountants in England and Wales says that IASB convergence efforts need to be kept under "close review", adding to growing international concerns about the convergence program with the U.S.
Renewed Focus on IFRS - According to CFO.com, James Kroeker, SEC chief accountant said that the financial crisis may have underscored the importance of IFRS. The global nature of the crisis highlights the need for global solutions.
Tech Companies Look at Revenue Proposals - Apple and other technology companies favor a move toward international rules in the area of bundled software and elimination of the requirement for vendor-specific objective evidence (VSOE). CFO.com writes about comments received on FASB rule proposals.
Live Web Update on IAS 39 Financial Instrument Replacement - On September 23, 2009, IASB staff will present two identical webcasts on the project to replace IAS 39. (IASB.org)
Standard Setters Moving on Different Paths - WebCPA writes how standard setters have adjusted to political pressure on fair value accounting proposals and the importance of the upcoming G20 meeting in Pittsburg for the rule makers.
Fair Value Measurement Round Tables - In November and December 2009 the IASB will hold round table discussions on its proposals for fair value measurement. Round tables will be held in North America, Asia and Europe. (IASB.org)
Registration for Upcoming Constitution Review Round Tables in New York and Tokyo Closing Soon - Following the Constitution Review round tables in London on 9 September 9 further round tables will be held in New York on October 6and Tokyo on October 21. The deadline for participation is approaching. (IASB.org)
FASB May Expand Fair Value Rules More than IASB - The Wall Street Journal reports on a round table discussion at the FASB headquarters. The two boards are trying to work together but there is a possibility convergence may not happen in this area. (Subscription required)
GNAIE Critical of IASB Direction on Insurance Contracts - The Group of North American Insurance Enterprises (GNAIE) criticized the measurement approach taken by IASB staff. Reuters reports on a September 9 letter to the IASB from the trade group.
PCFRC Releases Meeting Highlights, Discussed IFRS for SME's - At their August meeting, the Private Company Financial Reporting Committee (PCFRC) reviewed the IASB's IFRS for Small and Medium-sized Entities and discussed their impressions about the standard.
Survey: Financial Executives Believe Move to IFRS Will Occur - Reuters reports on a Deloitte survey. Almost 90% of respondents view mandatory conversion to IFRS to be highly likely, or somewhat likely in the U.S.
Who is the main audience for financial statements? - Bloomberg columnist David Reilly writes about the debate over proposed fair value accounting rules and how investor needs are at risk of becoming secondary.
ABA Urges Geithner and Bernanke to Raise Accounting Issues at Upcoming G-20 Meeting - The American Bankers Association cautions that accounting standard setters are currently moving in the wrong direction. (ABA.com)
Name Change Proposed for IASB - WebCPA reports on proposals released by the IASC Foundation Trustees aimed at enhancing accountability and stakeholder outreach. Included was a proposal to change the name of the IASB to the "IFRS Board".
France Wants Changes to Proposed Rules - According to EuropeanVoice.com, France has urged rejection of IASB proposed changes to financial instrument accounting rules if changes are not made. The exposure draft of proposals to improve financial instrument accounting was issued on July 14, and is open for comment until September 14.
Beam Me Up - In a recent Wall Street Journal interview, departing PCAOB board member Charles Niemeier compared the IFRS debate in the U.S. to a "Star Trek groupie thing. There is a world of people that are really into it." Gavin Hinks of Accountancy Age wonders which Star Trek character is most like an accountant. To read the WSJ interview, click here.
ASBJ and IASB Reaffirm Their Ongoing Cooperation in Achieving Convergence in Accounting Standards - The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have held their tenth meeting to accelerate convergence of Japanese generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs). (IASB.org)
Trustees Publish Proposals Aimed at Enhanced Accountability and Stakeholder Outreach - The Trustees of the International Accounting Standards Committee Foundation (IASC Foundation), the oversight body of the International Accounting Standards Board (IASB), today published for public comment proposals that form the second part of a two-part review of the IASC Foundation Constitution. (IASB.org)
G20 Finance Ministers Issue Statement - G20 finance ministers issued a "Declaration on further steps to strengthen the financial system". The statement says, "more needs to be done to maintain momentum". Reuters provides text of the Declaration.)
Uniform Accounting is Key - European Central Bank Commissioner Christian Noyer stresses the importance of uniform accounting rules to the development of stronger prudential regulation. Commissioner Noyer's statements are covered in a Dow Jones story at Nasdaq.com.)
PCAOB Publishes Q&A on References to Authoritative Accounting Guidance - The PCAOB on Wednesday published staff questions and answers about references to authoritative accounting guidance in PCAOB standards. (Journal of Accountancy)
Charles Niemeier Announces Intention to Leave PCAOB - CFO.com reports that Charles Niemeier, an outspoken critic of the SEC's proposal to move to IFRS, has announced his intention to leave the Public Company Accounting Oversight Board.
Companies Should Speak Up - Regulators and standard setters on both sides of the Atlantic wonder why more companies do not make their voice heard on important matters such as the proposed adoption of IFRS.
Basel Committee Calls for Accounting Changes - The Basel Committee on Banking Supervision calls for changes to fair value measurements and loan loss provisioning.
Expected Loss Model Will Condense Losses During Down Cycle - The expected loss model for loan loss recognition would put pressure on balance sheets as sentiment changes at the beginning of a down cycle, warns Jane Fuller, co-director of the Centre for the Study of Financial Innovation (CSFI) in London. (Financial Times)
Korean Companies Find IFRS Adoption Harder Than Anticipated - JoongAng Daily reports that Korean companies are concerned about the 2011 IFRS deadline. Some have expressed frustration with changes that will occur to the standards associated with the U.S. convergence program.
IFRS Risk Planning and Controls Execution - Staff responsible for internal control over financial reporting (ICFR) under Sarbanes-Oxley (SOX) section 404 and operational audits will need to understand how your company plans to apply IFRS so they can take appropriate actions based on both operational risks and the risk of material weakness in ICFR. (Journal of Accountancy)
Transition to IFRS for Smaller Entities - The AICPA CPA Insider poses five questions smaller companies should ask before making a switch to IFRS. According to the article, most comments on the complexity and the cost of an IFRS transition were made for public companies and may not be as relevant for smaller entities.
30 Questions to be Resolved Before Convergence - In the Accounting Today column "The Spirit of Accounting", the authors pose 30 questions that should be answered before allowing further convergence.
IASB Proposes to Amend the Discount Rate for Measuring Employee Benefits -The IASB published for public comment proposals to amend the discount rate for measuring employee benefits. The proposals respond to calls from stakeholders to address a problem that the global financial crisis has made increasingly significant. (IASB.org)
Exposure Drafts on Insurance Contracts Coming Later This Year - Both the FASB and IASB are expected to issue exposure drafts on insurance contracts in the fourth quarter of 2009. Bloomberg reports that the impact of proposals in the exposure drafts could be significant.
Details of FASB's Fair Value Proposals Expected Later this Year - CFO.com reviews current fair value rules and proposals for fair value expansion, which are expected to be released late this year. Last week, the American Bankers Association released a white paper expressing concern over an expansion of mark-to-market, lack of due process and divergence between IASB and FASB.
FASB Discusses Expansion of Fair Value Rules - In a meeting on Thursday, FASB discussed expansion of mark-to-market rules to loans and other securities. The FASB is expected to release an exposure draft in early 2010, according to Reuters.
SEC Focused on Other Matters - A year after the Committee on Improvements to Financial Reporting issued their report, the SEC has not addressed some of the more important recommendations from the advisory group, according to an article at CFO.com.
Proposed Changes to Lease Accounting are Significant - Boston/SF provides an overview of proposed changes to lease accounting included in the FASB/IASB joint discussion paper on leases.
Private Company Group Looks at IFRS for SMEs - The Private Company Financial Reporting Committee (PCFRC) reviewed the recently issued International Financial Reporting Standard for Small and Medium-sized Entities at its meeting. WebCPA reports on the meeting.
UK GAAP Could Cease to Exist - The Accounting Standards Board (ASB) released proposals for a three-tier system that would eventually replace UK GAAP, according to an Accountancy Age article. Public companies would use IFRS. Non-publicly accountable entities would use IFRS for SMEs and smaller organizations would use the ASB’s Financial Reporting Standard for Smaller Entities (FRSSE).
Bankers Concerned About Direction of Standard Setters - The American Bankers Association has raised objections about proposed rules for recognition and measurement of financial instruments. WebCPA provides coverage of the ABA’s letter to the FASB and IASB.
IFRS Consulting Firms on Hold - Though momentum toward IFRS has slowed under Mary Schapiro’s SEC, firms providing IFRS services look forward to future opportunities. Accounting Today talked to executives of firms that provide IFRS services and shares their feedback.
Pressure from All Sides - Accountancy Age explains that EU internal market Commissioner Charlie McCreevy is receiving pressure from politicians, investor groups and international bodies.
IFRIC Proposes Guidance on Settling Financial Liabilities with Equity Instruments - August 6, 2009 - The International Financial Reporting Interpretations Committee (IFRIC) published for public comment a draft Interpretation, IFRIC D25 Extinguishing Financial Liabilities with Equity Instruments. The proposal is open for public comment until October 5, 2009. (IASB.org)
IASB Publishes Proposals on the Classification of Rights Issues - August 6, 2009 – The International Accounting Standards Board Published for public comment proposals on the classification of rights issues. The proposals in the Exposure Draft are open for comment until September 7, 2009. (IASB.org)
Europeans Researching Whether SME Standards Comply with EU Directives - The UK and EU are determining whether the recently issued IFRS for SMEs complies with EU directives, according to an article from Accountancy Age. The UK may need EU approval before using the standard.
"Where is the USA?" - Speaking at the American Accounting Association’s annual meeting, Sir David Tweedie, Chair of the International Accounting Standards Board, said, "That is a question I am asked all around the world." WebCPA reports on Chairman Tweedie's speech. He says that a commitment is needed from the U.S. by 2011. (WebCPA)
"We will never legislate accounting while I’m chairman", said U.S. Representative Barney Frank. WebCPA writes about comments Representative Frank made to participants at the American Accounting Association’s annual meeting.
Financial Instruments Round Tables - In September 2009 the IASB and the FASB will hold joint round table discussions on their proposals for financial instruments. Round tables will be held in North America, Asia and Europe. (IASB.org)
FCAG Report Addressed to CFOs Too - The recently published report from the Financial Crisis Advisory Group is not just aimed at regulators and standard setters, but also to corporate executives according to an article on CFO.com.
E&Y Report Inside IFRS The Opportunity for IT - WebCPA provides an overview of an Ernst & Young report, which addresses the complexity, challenges and opportunities for IT in an IFRS conversion.
IFAC Calls for G20 to Adopt Global Accounting, Auditing, and Independence Standards and to Enhance Government Transparency - On July 31, 2009, in a letter, the International Federation of Accountants has called for broad action by the G20 leaders at their September meeting in Pittsburg, PA. (IFAC.org)
AICPA Business Brief – IASB Publishes IFRS for SMEs - On July 9, 2009, The International Accounting Standards Board (IASB) issued an International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The standard is a result of a five-year development process.
International Fair Value Accounting Draft Cross-Referenced to U.S. Counterpart - The International Accounting Standards Board (IASB) on Wednesday published new resources to help stakeholders understand how its exposure draft on fair value measurement compares to the U.S. accounting standard upon which it is based.(Journal of Accountancy)
Summary of IASC Foundation Trustees’ Meeting – July 2009 - The Trustees of the International Accounting Standards Committee Foundation, the oversight body of the International Accounting Standards Board, have announced the conclusions of their meeting in Amsterdam. (IASB.org)
International Financial Reporting Standards 2009 Volume - Through a special arrangement with the IASB, the Financial Accounting Foundation distributes the International Financial Reporting Standards 2009 Annual Bound Edition in the United States, U.S. possessions, Canada, and Mexico. The 2009 edition is available for purchase from the FASB store.
Fair Value Measurement Exposure Draft Marked-Up Text and Questions and Answers - Marked up text to the exposure draft Fair Value Measurement has been posted on the IASB project website. It shows the wording differences between the exposure draft and FASB SFAS No. 157 Fair Value Measurements. (IASB.org)
Advisory Group Concerned about Pressure from Politicians - The New York Times reports on the recently issued report from the Financial Crisis Advisory Group. Accounting standards were not the root cause of the financial crisis according to the report.
IFAC G20 Accountancy Summit Issues Renewed Mandate for Adoption of Global Standards - The International Federation of Accountants held a summit in London to achieve consensus on a series of recommendations to be made to the G20 leaders prior to their meeting in September.
IASB Amends IFRS for First-Time Adopters, Releases Proposal on Rate-Regulated Activities - The Journal of Accountancy writes about recently issued amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and a new exposure draft on accounting for rate-regulated activities.
Deloitte Survey Indicates Support for Separate Standards for Small and Mid-Sized Private Entities - Deloitte announces the results of a new survey. More than half (51%) of the respondents from small and mid-sized entities (under $1 billion in revenues) indicated that they believe there should be separate accounting standards for public and private companies. (PRNewswire)
Standoff between IASB and European Commission - Accountancy Age reports that EU Commissioner Charlie McCreevy has not signed key documents associated with establishment of the recently created Monitoring Board.
What is a SME? - The recently issued IFRS for Small and Medium-sized Entities does not include quantified criteria as to revenue, employees or assets, but notes that many jurisdictions around the world have developed their own definitions. Accountancy Age writes about confusion over the definition of "SME".
Some Companies Push Back on Lease Proposals - CFO.com writes about comments received on the joint FASB/IASB Discussion Paper on lease accounting.
European Accountants Tell IASB to Reconsider Convergence Program - Neil Baker, Compliance Week’s London correspondent, writes about a policy statement issued by the Federation of European Accountants (FEE), titled Future Approach to Setting Global Financial Reporting Standards.
IASB Financial Instrument Proposals Are an Improvement - According to The Economist, recent proposals outlined in an exposure draft issued by the IASB will simplify accounting for financial instruments and are an improvement over existing rules.
Standard Setter Rushes Rule Changes - While it is never a great idea to rush accounting changes, changes are in fact needed in the area of financial instruments. Ultimately, the best defense against political pressure is development of a single set of global rules managed by an independent body, according to an article in The Economist.
FRC Chief Says Accounting Should Not Be Used as Public Policy Tool - The UK’s Financial Reporting Council Chairman Paul Boyle speaks out against proposals to use accounting as a public policy tool. (Accountancy Age)
Accounting Institutes Defend IASB - Accountancy Age reports that the ICAEW and CIMA stress the importance of keeping standard setting independent and allowing sufficient time to develop high quality standards.
Financial Instrument Exposure Draft Promises to Address Concerns - Accountancy Age reports on the IASB’s recently issued exposure draft Financial Instruments: Classification and Measurement. The proposals are designed to reduce complexity associated with existing rules under IAS 39.
IASB Proposes Improvements to Financial Instruments Accounting - The International Accounting Standards Board (IASB) published for public comment an exposure draft of proposals to improve financial instrument accounting. (IASB.org)
New Option for Private Companies in Streamlined IFRS - The Journal of Accountancy writes about the International Accounting Standard Board’s recently released International Financial Reporting Standard for Small- and Medium-sized Entities.
AICPA Welcomes Issuance of IFRS for Private Companies - IASB Offers IFRS for Small and Medium Entities. The American Institute of Certified Public Accountants welcomes the issuance and use of International Financial Reporting Standards for private companies as issued by the International Accounting Standards Board in London.
IFRS for SMEs Expected Soon - Accountancy Age reports that in July, the International Accounting Standards Board will release its long awaited International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The article discusses the potential of the standard to change the way SMEs report financial results around the world.
Revenue Recognition Challenges - Comments on the FASB/IASB joint Discussion Paper on revenue recognition were due June 19. CFO.com writes about the project including the challenges associated with developing a single standard that would apply to all contracts with customers.
IFRS for SMEs Expected Soon - Accountancy Age reports that in July, the International Accounting Standards Board will release its long awaited International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The article discusses the potential of the standard to change the way SMEs report financial results around the world.
FASB Launches Accounting Standards Codificaton™ - The Financial Accounting Standards Board (FASB) launched the FASB Accounting Standards Codification™ as the single source of authoritative nongovernmental U.S. generally accepted accounting principles (GAAP). The Codification is effective for interim and annual periods ending after September 15, 2009. (FASB.org)
When Will the SEC Fill Its Chief Accountant Position? - Accountancy Age writes about the delay in filling the position vacated by Conrad Hewitt, who left the Commission in January 2009. Some wonder what the delay means for the direction of IFRS in the U.S.
Private Company Group Met to Discuss Several Topics - WebCPA reports that the Private Company Financial Reporting Committee (PCFRC) recently met and discussed a variety of topics, including joint FASB/IASB projects on revenue recognition and leasing. The committee also discussed the IFRS for Small and Medium-sized Entities, which is expected to be released in July.
Live Web Update on IAS 39 Financial Instruments Replacement - On July 3, 2009 and July 6, 2009 the IASB will be hosting the third in its series of live webcasts to keep interested parties up to date on progress of the project to replace IAS 39. This web update will focus on the recently published Request for Information on the feasibility of an expected loss model.
More Fair Value Controversy: Accounting for "Own Credit Risk" - This is an old debate, overshadowed by other fair value issues in recent months, but should heat up again with the recent issuance of a new Discussion Paper by the IASB. CFO.com provides an overview of the issue.
FASB Lobbies for Its Independence - Associated Press reports on lobbying efforts of the Financial Accounting Standards Board. The FASB's impact will likely be small compared to the financial industry, which spends significantly more on lobbying efforts. (Google)
IASB Seeks Input on Feasibility of Expected Loss Model - The International Accounting Standards Board (IASB) published a Request for Information on the feasibility of an expected loss model for the impairment of financial assets.
EU Commissioner Reluctant to Support IFRS for SMEs - The IASB is expected to issue its IFRS for Small and Medium-sized Entities in July. Accountancy Age reports that while EU Commissioner Charlie McCreevy has come to no formal position, he is reluctant to endorse the new standard.
Survey of Canadian Companies Shows IFRS Conversion Delays - Investment Executive reports on results of a survey conducted by the Canadian Financial Executives Research Foundation, the research institute of FEI Canada, and sponsored by PricewaterhouseCoopers (PwC).
Is IASB Guidance on Management Commentary Necessary? - The IASB recently issued guidance a proposed framework for management commentary. According to CFO.com, some board members question whether issuance of the proposal was a good use of resources.
FASB Oversight Body to Go on Listening Tour - Reuters reports that Financial Accounting Foundation trustees will seek input from various groups as they build a new strategic plan for their boards.
Concern about Valuation of Bank Loan Assets - Hans Hoogervorst, Co-Chair of the Financial Crisis Advisory Group and head of the Dutch market regulator AFM, said bank loan portfolios are probably overvalued, according to a Reuters article. Speaking at a conference, he encouraged the IASB to look at alternatives to the current incurred loss model.
Schapiro Supports Goal of Global Accounting Standards -BNA (June 22) reports that Securities and Exchange Commission Chairwoman Mary Schapiro said she supports having one set of global accounting standards, but that U.S. companies should retain high accounting standards and not need to compromise in the name of convergence. Schapiro's statement came on June 18 in response to a question about converging U.S. GAAP with IFRS while speaking at a New York Financial Writers Association event. (BNA Daily Report for Executives – Subscription Required - www.BNA.com)
IASB Proposes Guidance for the Preparation and Presentation of Management Commentary - The International Accounting Standards Board (IASB) published for public comment a proposed non-mandatory framework to help entities prepare and present a narrative report, often referred to as management commentary.
Investor Group Raises Concern about Independence of the FASB - Reuters reports that the Investors Technical Advisory Committee has raised concerns about the independence the accounting standard setting process and the need for changes in the FASB’s governance structure.
Trade Groups Form Alliance to Provide Input to Standard Setters - WebCPA reports that nine industry groups representing financial, insurance, banking, real estate and other industries have formed a coalition to provide influence accounting standards.
Live Web Presentation Introducing the Exposure Draft on Fair Value Measurement - In May 2009, the IASB published an exposure draft on Fair Value Measurement. The IASB will introduce the exposure draft in a live web presentation on June 30, 2009.
"The days of preparing someone for a nationally-based career have gone" - says Michael Izza, Chief Executive of the Institute of Charted Accountants in England and Wales. Michael Izza was quoted in a Financial Times article about the challenges of global training of accountants. (Registration required.)
New Lease Proposal Could Prove Difficult for Airlines - The joint FASB/IASB lease accounting proposal would bring lease liabilities onto the balance sheets and expose the weak position of some airlines, according to an Accountancy Age article.
Will the New FASB Codification Change GAAP? - The FASB Accounting Standards Codification™ is scheduled to launch on July 1. CFO.com asks if the Codification will change accounting. The article also points out that the codification is another step toward convergence with Internal Financial Reporting Standards.
Obama Announces Broad Regulatory Reform Proposals - President Obama presented a plan for regulatory reforms on Wednesday. Included in the President’s proposal was a recommendation that accounting standard setters make substantial progress by the end of 2009 toward development of a single set of high quality global accounting standards.
IASB Seeks Views on Accounting for "Own Credit Risk" - The International Accounting Standards Board (IASB) published for public comment a discussion paper on the role of credit risk in liability measurement.
IASB Clarifies the Accounting for Group Cash-Settled Share-Based Payment Transactions - The International Accounting Standards Board (IASB) announced amendments to IFRS 2 Share-based Payment that clarify the accounting for group cash-settled share-based payment transactions.
Live Web Update on Project to Replace IAS 39 Financial Instruments - As part of its comprehensive review of IAS 39 Financial Instruments IASB staff will be hosting a series of short live webcasts to keep interested parties up to date on progress of the project to replace IAS 39. The second of these webcasts will be held at 10am (London time) on Tuesday June 23, 2009, and repeated at 4pm (London time) on the same day for the convenience of participants in different time zones.
Australian Survey: Rules Too Complex, Shows Support for IFRS for SMEs - Respondents to a survey in Australia say that accounting standards need simplification, especially for smaller companies. A large majority, 83%, support introduction of IFRS for Small and Medium-sized Entities. Brisbane Times reports on the survey, which was conducted by Grant Thornton.
CIO’s Need to Plan for IFRS - CIO writes about the need for IT Departments to start planning for the potential move to IFRS, including how current or future IT initiatives might be affected by adoption of the international accounting standards.
Japan Takes Major Step towards IFRS Adoption - The Business Accounting Council (BAC), a key advisory body to the Commissioner of Japan’s Financial Services Agency (FSA), approved a roadmap for the adoption of International Financial Reporting Standards (IFRSs) in Japan. The roadmap still requires the formal approval of the FSA, which is expected to take place by the end of the month.
FASB Webcast: Transitioning to FASB Codification - FASB has scheduled a free webcast for Monday, June 22, 2009, to discuss the transition to the FASB Accounting Standards Codification™.
IASB Chairman Responds to Concerns from EU Finance Ministers - According to Accountancy Age, IASB Chair Sir David Tweedie told European finance ministers that reforms to fair value and impairment rules are on track and that he would do a better job of keeping finance ministers informed. "A new standard that deals with your concerns will be in place by year-end," he said.
Asian-Oceanian Standards Setters Group Created - The Journal of the IASB and the IASC Foundation INSIGHT presents an article about the creation of a group of standard setters to represent the countries of Asia-Oceania. The Asian-Oceanian Standards Setters Group (AOSSG) had a first preparatory meeting in Beijing in April, according to the article.
Preparing for IFRS - Writing for Compliance Week, Tammy Whitehouse describes how two accounting officers are preparing for IFRS. In addition to accounting and reporting matters, identifying business issues is an important part of early preparation work.
Pressure from EU Finance Ministers to Speed Up Reforms - IASB Chair David Tweedie met with European finance ministers. According to a Reuter’s article reported by guardian.co.uk, Chairman Tweedie "reaffirmed that the first phase of the fair value rule revision would be completed in time for 2009 financial statements, signaling no chance to the board’s timetable".
Chairman of the IASB Addresses ECOFIN Meeting - Sir David Tweedie, Chairman of the IASB, addressed a meeting of European Finance Ministers (ECOFIN) in Luxembourg to provide an update of the IASB’s response to the financial crisis. The IASB released the Chairman’s prepared statement.
Webcast on Project to Replace IAS 39 Financial Instruments - As part of its comprehensive review of IAS 39 Financial Instruments IASB staff will be hosting a series of live webcasts to keep interested parties up to date on progress of the project to replace IAS 39. The first webcast will be held on Thursday June 11, 2009.
IFRS Adoption May Produce Limited Benefits - WebCPA reports on a new academic study that indicates benefits from adopting IFRS in the U.S. may be limited. According to Rodrigo Verdi of MIT, one of the study’s authors, "In countries like the U.S., there may be minimal room for improvement because U.S. GAAP is already considered a high-quality accounting regime".
Sign Up for Email Updates on Replacement of IAS 39 Project - The IASB is carrying out a comprehensive review of its standard on the recognition and measurement of financial instruments, IAS 39 that will result in IAS 39 being replaced. You can sign up for email updates at the IASB’s website.
UK Regulator Voices Concern about "Breakaway" Version of IFRS - According to Accountancy Age, Financial Reporting Council Chief Paul Boyle warns that there is possibility that the EU could adopt its own version of IFRS.
SEC Commissioner Comments on Move toward IFRS - At Compliance Week's annual conference, SEC Commissioner Luis Aguilar talked about the move toward IFRS and convergence of standards. Melissa Klein Aguilar writes about the Commissioner's remarks at the conference on IFRS and other matters. (Compliance Week)
More Convergence of Accounting Standards Needed - Business Spectator reports on concerns expressed by Financial Crisis Advisory Group Co-Chair Hans Hoogervorst associated with a second round of economic crisis.
IASB Progress Update on IAS 39 Replacement - On May 29, 2009, the IASB published an update on the progress of its comprehensive review of IAS 39 Financial Instruments. The IASB also posted an update of how it is responding to concerns previously raised by the European Commission in its letter of October 27, 2008 to the IASB.
IASB Fair Value Measurement Guidance Proposal Modeled After U.S. Rule - CFO.com analyzes the IASB's exposure draft on fair value measurement. The starting point for the IASB's proposal was FAS 157 Fair Value Measurements.
Finance Executives Surveyed about Revenue Recognition Proposal - WebCPA reports on results of a survey conducted by RevenueRecognition.com on the joint FASB/IASB proposal on revenue recognition in contracts with customers. According to the article, the survey resulted in a mixed response.
Live Web Presentation Introducing the Exposure Draft on Income Tax - In March 2009, the IASB published an exposure draft on Income Tax. The International Accounting Standards Board will be introducing the exposure draft in a live web presentation on June 3, 2009.
IASB Chair Invited to Attend EU Finance Minister Meeting - According to The Wall Street Journal, European Union finance ministers are frustrated with the pace of accounting reform and have invited IASB Chairman David Tweedie to attend their next Ecofin meeting. (Subscription Required)
UK Regulator Concerned Europe May Adopt Own Version of IFRS - According to Accountancy Age, the UK Financial Reporting Council (FRC) said in its annual report, "We continue to have significant concerns that the EU might adopt its own version of IFRS rather than the standards as published by the IASB."
Do You Have IFRS Training? - If not, read on. The AICPA CPA Insider explains why market participants need IFRS training today and how to prepare for IFRS in the future.
Standard Setters, FCAG Discuss Political Interference - CFO.com reports that political interference on standard setting was discussed during the open session of last week's Financial Crisis Advisory Group meeting in London.
Australian Survey Respondents Supportive of IFRS, but Want Simplification - According to the Brisbane Times, a Grant Thornton survey showed broad support of the adoption of IFRS in Australia, but said the rules are too complex.
FASB Has Concern over IASB's Approach - Reuter's reports on concerns expressed by FASB Chair Robert Herz about the IASB decision to approach revisions to rules covering financial instruments and fair value accounting in multiple steps.
IASB Decides to Accelerate Fair Value Revisions - According to Reuters, the IASB plans to divide fair value rule changes into three pieces and issue a draft proposal addressing classification and measurement in July. Originally, the IASB had planned to issue a comprehensive proposal in October.
Two Leading U.S. Analysts Appointed to the IASB - The Trustees of the International Accounting Standards Committee Foundation announced the appointment of two leading investment analysts to the International Accounting Standards Board.
Financial Statement Presentation Proposal Needs Changes - Compliance Week reports on comments received by the FASB and IASB on their joint Discussion Paper Preliminary Views on Financial Statement Presentation.
IASB Faces Critical Challenge - The Wall Street Journal reports on challenges facing the IASB from European finance ministers and the threat to global accounting standards. "The IASB has been placed in an impossible position," writes author Simon Nixon.
SEC to Hold Public Seminar on New Interactive Data Reporting Requirements - The SEC will conduct a public seminar on June 10, 2009, to help companies and preparers comply with new rules that require financial reports to be filed using interactive data (XBRL). The seminar will be conducted in Washington D.C. and will also be web cast via the SEC website.
Investors Critical of IFRS, Want Reform - The Telegraph reports that institutional investors in London are frustrated by the lack of speed exhibited by the IASB to address concerns. One of the chief criticisms is over how banks provision for losses under IFRS.
House of Commons Defends Fair Value, IASB - CFO.com reports that a U.K. House of Commons Treasury Committee report is critical of decisions made in the banking sector and says that fair value was not the cause of the credit crisis. The report also raised concerns about the carve-out power held by the European Commission over accounting standards.
Failure to Adopt IFRS Will Be Costly for U.S. - CFO.com reports on remarks made by IASB member John Smith regarding the IFRS debate in the U.S. Smith warns that the U.S. will be an "outlier" and that "it is in the interest of the United States to adopt IFRSs in the next five years".
Adoption vs. Convergence - Deloitte's D.J. Gannon in an article for Business Finance writes why convergence of U.S. GAAP with IFRS will fall short of adoption. Gannon says, "Without future SEC rule-making that adopts IFRS, we will most likely never reach a point at which there is a single set of high-quality, globally accepted accounting standards".
Will benefits exceed costs of financial statement changes? - According to WebCPA, a report by Fitch Ratings questions whether benefits of proposals outlined in the FASB/IASB joint discussion paper on financial statement presentation will outweigh costs.
The Long View on IFRS: Gerhard Mueller - Gerhard G. Mueller helped popularize the field of international accounting among academics and their students. Mueller was asked about the SEC's proposed road map for the adoption of IFRS for U.S. public companies and the proposal's implications for the profession. Read excerpts from the interview at the Journal of Accountancy's website.
"Financial Reporting in a Changing World" - John Smith, IASB Board member, addressed the European Commission Conference "Financial Reporting in a Changing World". An excerpt from the speech is reproduced on the IASB website and the full speech is also available to be downloaded.
Growing Concern about IASB Response to Economic Crisis - Neil Baker, Compliance Week's London Correspondent, writes about growing concern from European Finance Ministers about the IASB's response to the economic crisis. European Commissioner Charlie McCreevy threatens funding cuts according to the blog.
Deliberate IASB Response Not Sufficient - According to European Voice, EU finance ministers are concerned that recent U.S. fair-value rule changes put European banks at a disadvantage. Ministers threaten to summon a representative of the International Accounting Standards Board to their next meeting.
Live Web Presentation Introducing the Discussion Paper on Lease Accounting - In March 2009, the IASB and the FASB published their joint discussion paper Leases: Preliminary Views. The discussion paper will be introduced in live web presentations on May 13, 2009.
Political Pressure Causes Concern about Investor Confidence - In a Business Day article, Warren McGregor, IASB Board Member, expresses concern that political pressure prompted by industry lobbying will hurt investor confidence.
Uncertainty over the IFRS Roadmap - Now that the comment period has expired, accountants are waiting to hear what the SEC will do with its IFRS roadmap. WebCPA writes about uncertainty surrounding the roadmap and views from a group of accounting leaders.
FASB Head says U.S. should consider adopting IFRS in three to five years – Reuters reports on statements from FASB Chairmen Robert Herz at a recent conference. "I think the SEC needs to do a very thorough study from a public policy point of view of the impacts on our financial system and our economy," Herz said. "I am not clear that the public policy case has been made in this country yet for there to be an adoption type process."
Next Controversy: Off-Balance Sheet Items, Loan-Loss Provisioning – New guidance coming from the FASB and IASB on these topics will "change the financial-reporting landscape", said James Kroeker of the SEC. CFO.com reports on Kroeker's comments at a financial reporting conference sponsored by Baruch College.
Canadian proposal matches international standards, moves away from recent U.S. rule changes – Bloomberg writes about proposed revisions on impairment of debt instruments in Canada. Paul Cherry, Chairman of the Canadian Accounting Standards Board, said, "We want a system that has global recognition, global acceptance."
Grant Thornton Survey Show CFO's are Split Over IFRS –According to Acountingweb.com, a national survey shows about half of CFO's and comptrollers believe U.S. companies should be permitted to use IFRS, instead of U.S. GAAP, in financial statements filed with the SEC. The other half disagrees.
Canadian Accounting Board to Unveil Compromise – The Globe and Mail reports that Canada's Accounting Standard Board will present a compromise solution on mark-to-market rules that will provide banks new flexibility to avoid writedowns but stops short of recent U.S. rule changes. (ReportonBusiness.com)
Give Standard Setters Some Space – The Financial Times writes about political interference that has forced both the IASB and FASB to change their rules. "The IASB and FASB should not be forced into a downward spiral, a race to the bottom, where one of them is being pressured into a more lenient position and the other one then has to adjust equally," says Hans Hoogervorst, Co-Chair of the Financial Crisis Advisory Group. (Registration/subscription)
FCAG Letter to G-20 Leaders – The Financial Crisis Advisory Group (FCAG) has written leaders of the G-20 providing an update of their work. In their letter, the FCAG stresses the importance of work on the financial instruments and consolidation/derecognition projects.
Accelerated Convergence on Track – Tom Jones, IASB Vice Chairman, said "I don't think this fair value issue has derailed it (convergence) at all". Reuters reports from the Reuters Global Financial Summit in London.
Rejecting Calls for Rapid Easing of Rules – Tom Jones, Vice Chairman of the IASB, responds to calls for immediate action on changes to international rules on fair value. "You can't expect to have an independent standard setter that you expect to jump every time someone has a good idea, to cook the books to make things easier," said Jones. (Reuters)
EU Officials Concerned about IASB Decision – According to Reuters, EU officials have voiced concerns about the IASB's decision not to make immediate changes to fair value rules.
IPSASB Moves Closer to Global Convergence – The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) is proposing new financial reporting requirements to assist public sector entities in accounting for financial instruments.
Preparers Critical of Financial Statements Makeover – Writing about the joint FASB/IASB Discussion Paper on Financial Statement Presentation, CFO.com says the proposal received a rough reception from preparers and that a recent survey revealed that a majority of CFO's were not even familiar with the project.
EU Commissioners Losing Patience – Waiting on a response from the IASB regarding recent U.S. fair market value rule changes, EU Internal Market Commissioner Charley McCreevy told Reuters, "The frustration of some member states has reached the limit of their endurance, and they will expect some pretty immediate reaction from the IASB". (guardian.co.uk)
IFAC President: U.S. Needs SEC Commitment to Global Standards – "The problem in the U.S. is the lack of clear commitment to the road map from the new leadership at the SEC", said Robert L. Bunting, President of the International Federation of Accountants, in an interview with the Journal of Accountancy.
IASB announces round-table discussions as part of comprehensive review of off balance sheet activities – The discussions will take place in June 2009 and will be held in Asia, Europe and North America.
IASB Vice Chair Critical of U.S. Fair Value Accounting Changes – In an interview with the Financial Post, Tom Jones, Vice Chairman of the International Accounting Standards Board, warned of "a loss of credibility".
Convergence Could Take 10 to 15 Years – CFO.com reports on the Financial Crisis Advisory Group meeting in London. When asked when we can get convergence of accounting standards, FASB Chairman Robert Herz responded "ten to fifteen years".
CFO's Urging SEC to Table IFRS Project – According to CFO.com, comment letters from CFO's are expressing concerns about the proposed SEC roadmap for IFRS adoption and are urging the SEC to table mandatory adoption, focus on the financial crisis and allow continued convergence of global accounting standards.
Global Rules Needed for Global Crisis – Accountancy Age reports that the Institute of Chartered Accountants in England and Wales has urged the SEC to decide quickly on an IFRS timetable.
IASB Concludes the 2007-2009 Annual Improvements – The International Accounting Standards Board issued improvements to IFRSs--a collection of amendments to twelve IFRSs--as its latest set of annual improvements. The IASB uses the annual improvements project to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.
2009 Handbook of International Public Sector Accounting Pronouncements Available – The International Public Sector Accounting Standards Board of the International Federation of Accountants announced that it has published the 2009 Handbook.
Fourth Meeting of Financial Crisis Advisory Group – The fourth meeting of the FCAG is taking place on April 20 in London at 10:30 AM UK time. The meeting will be live audio webcasted on the FASB website.
AICPA Supports IFRS Adoption, Recommend Changes to SEC Road Map – The AICPA submitted its comment letter to the SEC on its proposed road map for the use of IFRS. The Journal of Accountancy summarizes key points of the comment letter.
FASB Releases Final Versions of New Mark-to-Market Guidance – The Journal of Accountancy provides links to the final staff positions to improve guidance and disclosures on fair value measurements and impairments.
Deloitte survey shows support for move to single set of high-quality accounting standards – WebaCPA reports on Deloitte's 2009 IFRS Survey which was conducted with 150 respondents, including finance professionals, CFO's and finance managers. Survey results can be found here.
Accounting Rules Under Attack – Politicians and banks have attacked accounting rules. The Economist says the standard setters need to defend the rules and make it clear "that their job is not to regulate banks but to force them to reveal information".
SEC Chairwoman Remains Silent on Accounting Issues – Mary Schapiro has not expressed her views on the proposed roadmap since her confirmation hearing, CFO Magazine reports. At the IASC Foundation Monitoring Board meeting last week she reaffirmed the SEC's plan to move to a worldwide system of accounting standards, but did not comment on the timetable.
CFA Institute Members Support IFRS Adoption – According to Global Pensions, a recent poll conducted by the CFA Institute indicates "over 90% of CFA Institute members supported the idea of worldwide companies adopting IFRS to prepare general purpose financial statements".
EU Ministers say IASB Needs to Level Playing Field – Bloomberg reports on a statement issued after a meeting of European finance ministers and central bankers in Prague. The ministers are concerned that recent FASB changes to mark-to-market rules will create a competitive disadvantage for European banks.
G-20 Committed to Global GAAP, Independence of Standard Setters РThe Journal of Accountancy writes about the communiqu̩ released after the G-20 summit in London.
FASB Approves New Mark-to-Market Guidance – The Journal of Accountancy reports that the Financial Accounting Standards Board voted to release three new pieces of guidance to address concerns over the application of fair value accounting standards in current market conditions.
IASB "not expected to mimic" FASB's fair value rule change – according to Accountancy Age. The International Accounting Standards Board (IASB) is expected to continue full review of accounting for financial assets and issue proposals within six months.
IT Risk, IFRS and XBRL Top Internal Auditors' Concerns – (PRNewswire) – Protiviti announces results of recent survey. Gaining a better understanding of IT risk, IFRS and XBRL ranked high in the survey in areas where respondents wanted to improve knowledge.
Political Pressure Very Dangerous – Hans Hoogervorst, Co-Chair of the Financial Crisis Advisory Group, warns that political pressure on standard setters to change fair-value rules is a "very dangerous development". Accountancy Age writes about a letter to the Financial Times which stresses the importance of independence for regulators and standard setters.
Study Analyzes Proposed Shift to IFRS – Knowledge@Wharton reports on the findings of Wharton accounting Professor Luzi Hail, and Professors Christian Leuz from the University of Chicago and Peter Wysocki of MIT. "Based on our study, it is not clear that such a major shift in standards would translate into large net benefits for most companies or the entire U.S. economy, as is often claimed," Hail says.
Standard Setting and Political Pressure –The FASB's rushed response on fair value guidance puts the IASB in a difficult position. CFO.com writes about political pressures both Boards are encountering.
UK Regulator Expresses Concern about U.S. Progress toward IFRS – According to Accountancy Age, Paul Boyle, Chief Executive of the U.K.'s Financial Reporting Council says the focus should be on what it will take for the SEC to allow use of IFRS for U.S. companies, not a target date for conversion.
IFRS Can be Opportunity to Transform Finance Functions –Accountancy Age reports on an Accenture survey which indicates that while costly and complex many respondents believe an IFRS conversion will present an opportunity to make improvements within finance functions. A link to the Accenture survey can be found here.
IASB Proposes Changes to Income Tax Accounting Rules – According to an article on CFO.com, the recently proposed standard on income tax accounting issued by the IASB will simplify guidelines and could influence changes to U.S. rules.
U.S. Companies Expect to Pay More for IFRS – CFO Magazine reports on survey conducted by Accenture that reveals U.S. executives expect to pay more than European companies did to convert to IFRS. Executives estimate they'll spend between 0.1% and 0.7% of their company's annual revenue to convert.
IFRS and Hedge Funds – Hedge Funds Review addresses misconceptions about IFRS conversion and the direction the SEC could take with registered investment companies and hedge funds.
Financial Crisis Advisory Group Distributes Report to G-20 – The Financial Crisis Advisory Group (FCAG) has issued a report for distribution to members of the G-20. The FCAG was established to advise the IASB and FASB about standard-setting implications of the global credit crisis.
Standard Setters Address Bank Accounting Issues – CFO.com writes about joint projects being tackled by the Financial Accounting Standards Board and the International Accounting Standards Board and the relevance of this work heading into the G20 meeting next week.
Early Involvement of IT Personnel Important – An article in Canadian Underwriter addresses the importance of involving the Information Technology Department early in an IFRS conversion.
G20 Needs to Commit to IFRS – Michael Izza Chief Executive of the Institute of Chartered Accountants in England and Wales writes about the opportunity for the G20 to make a commitment to IFRS as the global accounting language in an article for Accountancy Age.
Proposals to replace standards on financial instruments are forthcoming – Reuters reports on decisions reached in a joint meeting between the IASB and FASB in London. The Boards announced their plan to issue proposals to replace standards on financial instruments "in a matter of months, not years".
Information Technology Challenges – IT World Canada writes about information requirements and challenges associated with conversion to IFRS.
Bankers call for common accounting standards – Members of the Banker community in the United Kingdom asked Prime Minister Brown to push the need for a common set of global accounting standards at the G20 summit.
IFRS Converges to U.S. GAAP on Segment Reporting – The Journal of Accountancy provides a summary of IFRS 8 Operating Segments. The new standard supersedes IAS 14 and closely resembles the "through the eyes of management" approach of FASB Statement No. 131.
Debate Over Dynamic Provisioning Heats Up – Standard Setters are under increasing pressure from prudential regulators to adopt rules that allow financial institutions to use dynamic provisioning, reports Financial Director.
Standard Setters Outline Possible Lease Accounting Approach – The Journal of Accountancy writes about the recently released joint IASB/FASB Discussion Paper on lease accounting.
AICPA Comments on the IASC Foundation's Constitution – The AICPA comments on the second part of the five-yearly review of the International Accounting Standards Committee Foundation's (IASCF) Constitution. In its comment letter, the AICPA applauds establishment of a Monitoring Board, stresses the need to find a permanent funding solution and addresses the future need for private-entity financial reporting constituency representation on the IASCF and Standards Advisory Committee (SAC).
Tension at IASB over U.S. Fair Value Guidance – CFO.com reports that the IASB was preparing to use the recently issued FASB proposals to improve guidance on fair value measurements and impairments as a starting point for its own guidance, but some members expressed concerns about the quality of the rushed U.S. proposals.
Narrative Skills Important in Using IFRS – CFO.com writes about the importance of narrative skills in using IFRS. According to the article, footnote disclosures will fill in many of the details formerly supplied under U.S. GAAP.
Inaugural Meeting of Monitoring Board and IASC Foundation Trustees – The agenda for the inaugural meeting of the Monitoring Board and the IASC Foundation Trustees is now available.
AICPA's Melancon Comments on Fair Value, Other Issues – WebCPA reports that AICPA President and CEO Barry Melancon reiterates the AICPA's stance that fair value was not the primary cause of the credit crisis and that the private sector should be responsible for setting accounting standards.
AFASB Chairman Testifies on Mark-to-Market Accounting – Robert H. Herz Chairman of the Financial Accounting Standards Board testified about mark-to-market accounting before the U.S. House of Representatives Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Entities.
IASB clarifies the accounting treatment for embedded derivatives when reclassifying financial instruments – The International Accounting Standards Board (IASB) clarifies the accounting treatment of embedded derivatives for entities that make use of the reclassification amendment issued by the IASB in October 2008.
Are you ready for the Federal Accounting Oversight Board?, asks CFO.com. – The article explores the new house bill that would expand the government's oversight over accounting rules.
IFRS should be a concern for current students – The Guardian, Wright State University's Campus Newspaper, addresses the need for IFRS education. "I think our role as professors is to always make sure we teach what's current now and what will be current when students graduate," James Greenspan, professor and chair of accountancy said.
Resistance to IFRS stiffening – Michael Cohn, Editor-in-Chief of WebCPA writes about the "backlash against IFRS".
Early Adoption of IFRS Will Be Difficult – According to WebCPA, a report from Financial Executives International's Financial Executives Research Foundation and Resources Global Professionals says early adoption of IFRS will be difficult, if not impossible.
House bill would create new accounting oversight board. – Two U.S lawmakers have introduced legislation that would create the Federal Accounting Oversight Board to oversee the work of FASB, reports Reuters.
New York accountants critical of proposed IFRS roadmap, CFO Magazine reports. Among concerns outlined in their comment letter to the SEC are the quality of the international standards, conversion costs, contradictions between the two main benefits, eligibility criteria for early adopters, and a forthcoming version for use by private companies.
Must LIFO Go to Make Way for IFRS? – The international convergence of accounting standards jeopardizes the use of LIFO for financial reporting purposes. The Tax Adviser examines whether the time has come for Congress to sever the link between tax and financial reporting of inventory by modifying or eliminating the LIFO conformity requirement.
Former Chief Accountants Discuss IFRS – CFO.com reports on a panel discussion featuring former SEC Chief Accountants Lynn Turner and Conrad Hewitt. Regarding IFRS, Conrad Hewitt supports creating a single worldwide set of accounting standards. Turner does not support IFRS and has concerns that they would make American companies less competitive.
Consideration of Niemeier for Chief Accountant draws opposition. WebCPA reports that consideration of Charles Niemeier for SEC Chief Accountant has drawn opposition from some. Niemeier is a member of the Public Company Accounting Oversight Board and a critic of International Financial Reporting Standards.
IASB amends fair value disclosure requirements, aligns rules more closely to U.S. standards. Reuters reports on the International Accounting Standards Board's decision to amend fair value measurement disclosures. Link
Standard Setters Propose Financial Statement Improvements – The Financial Accounting Standards Board and the International Accounting Standards Board have introduced proposed improvements to financial statement presentations. FASB's Marc A. Siegel provides an overview of the project for WebCPA.
The IASB Needs to Work More Effectively with Stakeholders – The Director of the Association of British Insurers Stephen Haddrill said that that the IASB risks political interference if it does raise its level of effectiveness with stakeholders, reports Accountancy Age.
Bernanke Wants Improvement in Fair value Measurements – Bloomberg reports that Federal Reserve Chairman Ben S. Bernanke said fair value rules are "a good principle in general", but accounting standard setters need to figure out how fair value rules should be followed when assets are illiquid.
Fair Value Measurement Guidance Makeover – Reuters writes about the IASB's plan to issue an exposure draft on Fair Value Measurement Guidance in 2009. (Article) (IASB Project)
IFAC focuses on credit crisis, needs of SME's - Global accountancy leaders discussed the financial crisis, the needs of small- and medium- sized enterprises and the ways in which professional accountants can contribute to rebuilding economic stability at meetings hosted by the International Federation of Accountants.
SEC's Leap Toward IFRS - Is the move to IFRS in the U.S. over? Remi Forgeas, CPA and Partner for Mazars in the U.S., shares his thoughts about this question in the AICPA CPA Insider.
KPMG Survey Shows Support for Proposed IFRS Conversion Timeline - (PRNewswire) – KPMG LLP announces results of survey conducted with institutional investors, analysts and corporate executives who prepare financial statements.
Adoption of IFRS does not mean end of U.S. GAAP - In an article for WebCPA, Ian Mackintosh, Chairman of the Accounting Standards Board in the U.K., shares his views about what the situation might look like for U.S. GAAP, the FASB and the IASB after adoption of IFRS. He draws from his experiences in the U.K. and Europe.
Reforms Needed - In a story for Reuters, Victor Germack of RateFinancials Inc. calls for overhaul of accounting rules and practices. He addresses problems with the current rules-based system, fair value accounting, the move to IFRS and accountability of the FASB.
Private companies showing interest in IFRS (PRNewswire) – Deloitte releases poll results of 1,700 finance professionals, mostly from private companies. The poll was conducted during a recent webcast about IFRS for Private Entities and reveals that 14% would consider adopting the new standard in the near term and 26% would assess the costs and benefits of adoption.
NASBA Urges SEC to Withdraw Roadmap - The National Association of State Boards of Accountancy says that convergence with, rather than adoption of, International Financial Reporting Standards, is the right direction and urges the SEC to withdraw its IFRS Roadmap as early as possible.
Mary Schapiro's remarks cause concerns - Accountancy Age writes that remarks by the new SEC Chair have caused confusion about the direction of IFRS in the U.S. The author expressed concern about the possibility of an underlying protectionist attitude.
IASC Foundation Trustees announce appointments to the reconstituted Standards Advisory Council (SAC) - The SAC is the formal advisory body to the IASB.
PricewaterhouseCoopers LLP Announces $700,000 IFRS Grant - The accounting firm announced the awarding of $700,000 in grants to 26 universities and colleges to accelerate IFRS Curriculum.
Few Technology CFO's would adopt IFRS early if given the opportunity, according to a BDO Seidman LLP survey. MarketWatch reports that the survey reveals that only 21% of CFO's surveyed would adopt the standards early.
Niemeier is Reported Candidate for Chief Accountant – Tim Reason of CFO.com writes about the rumors that PCAOB member Charles Niemeier is a candidate for SEC Chief Accountant. Niemeier is a vocal critic of the move to IFRS.
Private company CFO keeps skills sharp, stays on top of IFRS. CFO.com interviews a private company CFO about the importance of keeping his skill set strong.
IASB Chairman Sir David Tweedie and SEC Chair Mary Schapiro met to discuss IFRS - WebCPA reports on what was described as an amicable meeting despite Schapiro's concerns with international standards. The IASB continues to work with the FASB on various convergence projects.
European Banking Federation asks IASB for CDO clarification - MarketsMedia Online reports that the International Accounting Standards Board has been asked by the EBF to urgently issue clarification that would allow some collateralized debt obligations to be accounted for at amortized cost in their entirety, consistent with proposed clarification language recently issued by the U.S. Financial Accounting Standards Board.
Uniting the Global Profession - International Federation of Accountants (IFAC) President Robert Bunting shares his vision for the future with the Journal of Accountancy.
IASB Oversight Body Responds to Call for Accountability - The Journal of Accountancy reports that the Trustees of the IASC Foundation announced constitutional amendments that are intended to enhance public accountability by establishing a link to a monitoring board of public authorities.
AICPA Supports Global Accounting Alliance's Clarity Initiative - The American Institute of Certified Public Accountants supports and is participating in an initiative undertaken by the Global Accounting Alliance to provide recommendations for improving financial reporting worldwide based on research and study.
Final Version of XBRL Rule Available - WebCPA reports that the SEC has posted the final version of its rule mandating use of eXtensible Business Reporting Language (XBRL). A link to the final rule is provided.
Proposed Changes to Financial Statement Presentation are Significant - In October 2008, the IASB and the FASB published a Discussion Paper on Financial Statement Presentation (news release). CFO.com writes about the project. FASB member Thomas Linsmeier said in a recent conference, "This particular project will change the face of financial statements in a very, very significant way." The Discussion Paper is open for comment until April 14, 2009.
WebCPA examines how firms are reacting to the pending IFRS transition - Howard Wolosky Editor-in-Chief of Practical Accountant writes that the SEC roadmap came at a very interesting time during an economic crisis and just before an administration change. Wolosky writes about how firms are reacting to the move towards IFRS.
Monitoring Board Enhances Public Accountability - Trustees of the IASC Foundation, the body that oversees the International Accounting Standards Board, amended their constitution to create a link to a Monitoring Board of Public Authorities. Accountancy Age writes about the decision.
IFRS for Private Entities -What are the implications for private entities in Europe and the U.S. as the IASB considers how IFRS should be made accessible to them? Steven Brice, partner with Mazars in the U.K., addresses this question in the AICPA CPA Insider.
Incoming SEC Chair Critical of IASB - WebCPA reports on Mary Schapiro's written responses to questions from Senator Carl Levin (D-Mich), which were submitted as part of her confirmation hearing. Regarding the IASB, she wrote, "American investors deserve and expect high standards of financial reporting, transparency, and disclosure -- along with a standard-setter that is free from political interference and that has the resources to be a strong watchdog. At this time, it is not apparent that the IASB meets those criteria, and I am not prepared to delegate standard-setting or oversight responsibility to the IASB".
Next Two Years Will Test IASB - Accountancy Age reports that according to Ian Mackintosh, Chair of the U.K. Accounting Standards Board, the International standard setter faces crucial two years.
Future of Accounting Rulemaking Uncertain - "The change in administration may mean we are taking a different route to [international financial reporting standards]", noted Allison Patti, an official from the SEC's Office of the Chief Accountant. The remarks were made at a recent SEC/FASB Conference sponsored by the New York Society of Certified Public Accounts. CFO.com reports on the Conference and noted that the FASB and IASB continue to move forward with work on converging U.S. GAAP and IFRS.
EU may fund private sector oversight. - The Associated Press reports that the European Commission has proposed European Union funding for private-sector oversight groups. The Commission's proposal includes funding for the International Accounting Standards Committee Foundation (IASC Foundation), the Public Interest Oversight Body (PIOB), and the European Financial Reporting Advisory Group (EFRAG).
New Leadership at SEC - May Schapiro was confirmed as SEC Chair on January 22, 2009 by the U.S. Senate. Business Finance writes about how Mary Schapiro might lead the SEC and her intentions on slowing down the move to IFRS.
IFRS has left many insurers reluctant to reveal how they manage risk - Business Report explains. Ilse French, an insurance technical director at PwC Southern Africa believes the onerous list of mandatory disclosures was discouraging greater insight. According to the article, insurers would be more willing to provide information if the IASB reduced the level of mandatory disclosures.
Accounting is about to get political - When asked about IFRS by Senator Jack Reed, Mary Schapiro said she would "proceed with great caution" although she does support the notion of a single set of global standards. Financial Times wonders if she was "playing to her audience, or is she really as chilly as she sounded last week on the notion of the U.S. switching to international accounting standards". Financial Times (free registration)
Lessons Learned - Newsfactor.com interviews Danita Ostling, Ernst and Young partner and Americas IFRS leader, about what U.S. companies can learn from Europe's conversion to International Financial Reporting Standards.
IAASB Practice Alert Helps Auditors and Management Assess Impact of Credit Crisis on Going Concern Assumptions -The International Auditing and Assurance Standards Board has released a new practice alert entitled Audit Considerations in Respect of Going Concern in the Current Economic Environment.
There are more important issues than fair value - The Financial Crisis Advisory Group (FCAG) formed to provide counsel to the IASB and FASB met for the first time in London on January 20, 2009. CFO.com reports that panelists said consolidation and securitization issues are more important than fair value accounting.
Lending decisions, not accounting, tops list of factors contributing to financial crisis - Sir David Tweedie, Chair of the International Accounting Standards Board, talks to The Hindu Business Line about factors that contributed to the financial crisis.
IASB, FASB Focus on Impairment, Other Issues Raised by G-20 - The International Accounting Standards Board (IASB) announced a series of actions it has taken to address recommendations made by the G-20 leaders last November in Washington.
SEC Nominee Pledges to Revitalize Enforcement, Has Concerns About IFRS - The Journal of Accountancy reports on Mary Schapiro's testimony before the Senate Banking, Housing and Urban Affairs Committee. President-elect Obama's nominee for SEC chair said she would aggressively revitalize the SEC's enforcement efforts. In response to questions about IFRS, Shapiro expressed concerns. She said, "I will take a big deep breath and look at this entire area again carefully and will not necessarily feel bound by the existing road map that's out for comment".
Members of Obama's Economic Team Differ on IFRS - CFO.com reports that Paul Volcker endorses International Financial Reporting Standards, while Mary Schapiro has concerns. Mary Schapiro is President-elect Obama's nominee for SEC chair and said in Senate confirmation hearings, "I will not be bound by the existing roadmap that's out for public comment".
IFRS taxonomy for 2009 is now available for public comment. According to CFO Magazine, when complete, the IASB's XBRL project should make reporting financial results "easier, more accurate, and more easily compared." Some believe the tagging language of XBRL will help move companies toward IFRS.
2009 will be a pivotal year for accounting, WebCPA reports. A Fitch Ratings report on the global outlook for accounting and financial reporting shows that going-concern evaluations will be a major issue. "Outside the U.S., new segment reporting under IFRS will need to be explained well if analysts are to understand the financial performance of a company given everything else that is happening," said Fitch managing director Bridget Gandy.
IFRS 101 - Lesson 1: Follow EU's lead, but learn from their mistakes. AICPA Corporate Finance Insider writes about a recent AICPA Webcast titled IFRS 101: The Essentials. The article covers the history of IFRS, which countries are using the standards and the SEC proposed Roadmap for IFRS convergence.
Tax Departments Involved in IFRS Conversion Efforts. Financial Week reports on a PricewaterhouseCoopers survey that shows 60% of respondents have involved their tax departments in conversion efforts. Accounting issues receiving the most attention are revenue and expense recognition.
Converting to IFRS. The SEC's proposed roadmap for the potential use of IFRS could result in mandatory use of international financial reporting standards beginning in 2014. The Journal of Accountancy presents a summary of key activities that will contribute to a successful conversion.
Move to IFRS will be difficult and expensive. USA Today examines IFRS and the intentions of the SEC to adopt international rules in the U.S. "If companies don't prepare, if they don't start three years in advance, they're going to be in big trouble," Donna Street, business professor of the University of Dayton said.
FASB defers the requirements of FIN 48 for certain nonpublic entities, Compliance Week reports. FASB plans to develop the guidance necessary to apply FIN 48 to pass-through and not-for-profit organizations and amend disclosure guidance for nonpublic entities. IFRS have no equivalent requirements and the IASB does not agree with the model FASB has established.
Death of LIFO? –International Financial Reporting Standards do not permit the use of the last-in, first-out (LIFO) method of accounting for inventories. The proposed shift of U.S. public companies to IFRS could affect many companies currently using LIFO. The Journal of Accountancy explores the accounting and tax ramifications of a change from LIFO.
Key Accounting Issues for CFOs in 2009 – CFO.com writes about key accounting issues for 2009, including IFRS, XBRL, the joint FASB and IASB financial statement presentation project and accounting for contingent liabilities.
IFRS in 2008 – CFO.com presents their best IFRS stories from 2008, the year that marks the issuance of the SEC's proposed roadmap for transition to International Financial Reporting Standards.
SEC Study Says Improve, Do Not Suspend, Fair Value Accounting – The SEC released its congressionally mandated study on mark-to-market accounting. The report notes that investors generally believe fair value accounting increases transparency. The report also observes that fair value accounting did not appear to play a meaningful role in bank failures that occurred in 2008.
IASB and FASB Announce Membership of Financial Crisis Advisory Group – The Financial Crisis Advisory Group (FCAG) is the high-level advisory group set up by the boards to consider financial reporting issues arising from the global financial crisis.
Georgia Tech Financial Analysis Lab releases LIFO study. The Georgia Tech Financial Analysis Lab released a study titled The Potential Consequences of the Elimination of LIFO as part of IFRS Convergence. The study examines the income, balance sheet, cash flow and tax effects of a move from LIFO to FIFO.
IASB's credibility questioned after rule change. The Washington Post writes about IASB rule changes in October that were made in response to political pressure from the European Commission.
IASB wants companies to provide additional disclosures. According to WebCPA, the International Accounting Standards Boards has proposed amendments to IFRS 7, which would require additional disclosures for financial instruments.
View full article > | FASB Agenda Decisions – Financial Instruments >
View full article > | Transcript >
The Wall Street Journal. While IFRS is based on principles, GAAP is based on rules. Despite the challenges, such as rewriting business school texts and retraining corporate finance departments, having a single set of accounting rules will make it easier to compare companies around the world.
Note: The KPMG press release on the report's issuance can be seen here.
Note: This story was also covered by UK's Management Consultancy, and can be found here.
SEC Chairman Christopher Cox will begin the roundtable with opening remarks at 1 p.m. ET, followed by brief introductory comments about IFRS by John Smith, a Board Member of the International Accounting Standards Board.
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