Integration of world capital markets

In December 2007, US SEC Chairman Christopher Cox delivered the keynote address at the Columbia Law and Business Schools - Cross Border Securities Market Mergers Conference. He reviewed the evolution and integration of the world’s capital markets including demutualisation, electronic securities trading and amalgamations, such as NYSE Euronext, ISE Eurex and Nasdaq OMX. He also examined the implications for regulators. (View the Speech by SEC Chairman.)

CESR extracts of IFRS enforcement decisions

The Committee of European Securities Regulators (CESR) publishes extracts of selected decisions to foster appropriate and consistent application of IFRS in the European Union (EU). CESR has published its second set of extracts from its confidential database of enforcement decisions taken by EU national enforcers of financial information. The first publication was in April 2007. CESR plans to publish further extracts from this database on a regular basis. (View the Press Release.)

North America - IFRS Conference 2008

North American corporations are seeing the tide of change… Canada is poised to adopt IFRS by 2011… and the US SEC has recently eliminated the reconciliation requirement for foreign registrants, paving the way for US filings under IFRS. This North American IFRS Conference is a significant international event being held in Toronto, Canada (April 24 - 25, 2008). It will bring Sir David Tweedie and other members of the International Accounting Standards Board (IASB) to North America. It is a joint presentation by the International Accounting Standards Committee (IASC) Foundation and the Canadian Institute of Chartered Accountants (CICA). (View the Preliminary Brochure.)

Canada - A New Year’s Resolution!

Canada’s transition to International Financial Reporting Standards (IFRS) is anticipated to take effect in 2011. It will significantly impact financial reporting for all publicly-accountable enterprises, including 4,500 publicly-listed companies. Canada’s Chartered Accountants have a suggested New Year’s resolution for the business leaders of these publicly-traded companies. They are being urged to ensure that preparation for the changeover to IFRS be an essential element of any corporate plan for 2008. (View the CICA Press Release.)

Determining Fair Value of Financial Instruments under IFRS

The Global Public Policy Committee (GPPC) has published a paper called "Determining Fair Value of Financial Instruments under IFRS in Current Market Conditions." The purpose of the paper is to enhance awareness of the requirements of International Financial Reporting Standards (IFRS) in relation to the determination of fair value of financial assets, financial liabilities and related disclosures. The GPPC comprises representatives of the six largest international accounting networks - BDO International, Deloitte, Ernst & Young, Grant Thornton International, KPMG and PricewaterhouseCoopers.

Towards a Global Reporting System - FASB webcast

The US Financial Accounting Standards Board (FASB) is launching a series of periodic webcasts. The first FASB webcast is scheduled for Tuesday, January 8, 2008. It will feature a panel of experts discussing international convergence of accounting standards (IFRS). The live webcast is offered free of charge. Viewers will have the opportunity to e-mail questions to panelists during the event. The webcast will be archived on the FASB website.
(Register for the live and/or archived webcast online.)

SEC announces roundtable discussions on IFRS

The US Securities and Exchange Commission (SEC) will host two roundtable discussions in December 2007 on issues surrounding the growing prevalence of International Financial Reporting Standards (IFRS). The first roundtable on December 13 will address the issues arising from the current co-existence of two accounting standards in the US markets. The second roundtable on December 17 will focus on the practical issues surrounding the possible future use of IFRS by US companies. (View the SEC Press Release and Roundtable Agendas.)

Canada - Financial instrument standards: Mountain or molehill?

New financial instrument standards may have no effect on some private enterprises. For others, the effect will be significant. The standards expand the use of fair-value measurement for certain assets and liabilities. In many cases, use of fair-value measurement is at the discretion of management. However, certain activities will dramatically increase the level of accounting complexity. (View the article and the guidance brochure.)

An Accounting Revolution is Brewing in China

Deloitte’s IAS Plus website has made available an article titled An Accounting Revolution is Brewing in China. The article is from the December 2007 issue of Financial Executive, published by Financial Executives International. It discusses the capital markets in China, the recent history of financial reporting in China, changes caused by the new Chinese Accounting Standards (CAS) that went into effect in 2007, and remaining differences between CAS and IFRS. The article is copyright and is posted with FEI’s permission.

IFRS Compliance Questionnaire for 2007

Deloitte has prepared an IFRS Compliance Questionnaire for 2007. It summarizes the recognition and measurement requirements in IFRS, including Interpretations. Items in the questionnaire are referenced to the applicable sections of the IFRS issued on or before August 31, 2007. The questionnaire is 282 pages long.

IASB-FASB significant convergence milestone

The US Financial Accounting Standards Board (FASB) has issued Statements No. 141 (revised 2007), Business Combinations, and No. 160, Noncontrolling Interests in Consolidated Financial Statements. The new standards complete the first major joint project with the International Accounting Standards Board (IASB) and represent a significant convergence milestone. The IASB plans to issue its counterpart standards IFRS 3 (revised), Business Combinations, and IAS 27 (as revised in 2007), Consolidated and Separate Financial Statements, early in 2008. These standards are the first in a series of converged standards issued jointly for the global community. (Read the FASB News Release.)

IASB tops global rankings for stakeholder participation

According to a report on global accountability, the International Accounting Standards Board (IASB) has the best developed external stakeholder engagement capabilities among 30 global organizations and is a high performer in both transparency and evaluation. The 2007 Global Accountability Report is an annual assessment of the capability of the world’s most powerful global organizations from the intergovernmental, non-governmental and corporate sectors to be accountable to civil society, affected communities and the wider public. (View the Press Release.)

IFRS Disclosure Checklist 2007

PricewaterhouseCoopers has recently published IFRS Disclosure Checklist 2007. The publication is designed to facilitate the collection and review of disclosures for each component of the IFRS financial statements. It has been updated to outline the disclosures required by all IFRS standards and interpretations issued up to September 2007.

IFRS and Canadian GAAP: An Overview

KPMG Canada has recently published IFRS compared to Canadian GAAP: An overview. The purpose of this publication is to assist readers in understanding the significant differences between International Financial Reporting Standards (IFRS) and Canadian Generally Accepted Accounting Principles (Canadian GAAP) in annual reporting for the year ended December 31, 2007.

India - Concept Paper on Convergence with IFRS

The Institute of Chartered Accountants of India (ICAI) has published a Concept Paper on Convergence with IFRS in India. The paper proposes that IFRS should be adopted by public interest entities (such as listed entities, banks and insurance entities) and large-sized entities for accounting periods beginning on or after April 1, 2011. The ICAI is responsible for the Accounting Standards Board (ASB) which currently issues accounting standards that are based on IFRS but contain modifications to reflect the legal and economic environment in India.

Canada - The Road to IFRS

Canada's Accounting Standards Board has published a summary of anticipated changes to Canadian GAAP for publicly accountable enterprises before the changeover date to IFRS, January 1, 2011. (View Publicly Accountable Enterprises — The Road to IFRS.)

IASC Foundation XBRL Update

The IASC Foundation XBRL Team has published the IFRS-XBRL Update for November 2007. It contains news about IFRS-XBRL internationally and other countries, including Canada, Australia, United States, Belgium, India, Japan, Netherlands, UK and France. It also provides information about the IFRS-XBRL taxonomy and upcoming events, such as the 16th XBRL International Conference. The conference, hosted jointly by XBRL Canada and XBRL US, will be held in Vancouver, Canada on December 3-6, 2007.

SEC eliminates US GAAP reconciliation requirement

On November 15, 2007, the US Securities & Exchange Commission (SEC) unanimously approved amendments to its rules and forms that will eliminate the requirement for foreign private issuers using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) to reconcile their financial statements to US GAAP. The SEC will convene two roundtables, on December 13 and December 17, to collect more feedback from the public on the issue of giving US domestic issuers the same option that foreign issuers have - to use either IFRS or US GAAP. (View the SEC Press Release and the IASB Press Release.)

IFRS - Canadian GAAP Comparison

Canada's Accounting Standards Board has issued an update to its Comparison of International Financial Reporting Standards and Canadian GAAP as of March 31, 2007.

Canada - Progress Review on Changeover to IFRS

Canada's Accounting Standards Board has published the Full Analysis of the Preliminary Report on its Progress Review, in accordance with the Implementation Plan for Incorporating International Financial Reporting Standards (IFRS) into Canadian GAAP.

War on Complexity

The US Securities and Exchange Commission (SEC) has joined with the Financial Accounting Standards Board (FASB) in an all-out “War on Complexity in Accounting.” The SEC’s Advisory Committee on Improvements to Financial Reporting has the overall objective of making recommendations on reducing complexity in financial reporting. It held its second meeting on November 2, 2007. Its charter identifies four areas for attention:

• the current approach to standard-setting;
• the current approach to regulating compliance;
• factors that may drive unnecessary complexity; and
• lessons that can be learned from using international standards.

Fair value of intangibles

The International Valuation Standards Committee (IVSC) has issued a discussion paper on the Determination of Fair Value of Intangible Assets for IFRS Reporting Purposes. The paper reviews the different IFRS under which intangibles might have to be valued and discusses alternative approaches to valuation. It looks at valuation models and benchmarking against the market. It also includes a comparison of the different approaches and a discussion of how these relate to IFRS and the SFAS 157 hierarchy.

IFRS: The right step for US business?

PricewaterhouseCoopers has published a white paper called IFRS: The right step for US business. The paper, which supports its shorter companion paper entitled 10Minutes on IFRS, provides PwC's views concerning the possibility of adopting International Financial Reporting Standards (IFRS) in the United States. It considers what executives and directors need to know about the important IFRS public-policy debate.

EFRAG considers cost-benefit assessments of IFRS

The European Financial Reporting Advisory Group (EFRAG) is likely to extend the work that it normally carries out in making IFRS endorsement recommendations to the European Commission to include some form of cost-benefit study for individual IFRS. (Download the EFRAG Update October 2007)

IFRS Model Financial Statements for 2007

Deloitte has published model IFRS financial statements for the year ended December 31, 2007. The statements illustrate the application of presentation and disclosure requirements of International Financial Reporting Standards (IFRS) by an entity that is not a first-time adopter. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard. (Download IFRS Model Financial Statements for 2007.)

Canada - Upcoming IFRS events

The following events may be of special interest to those following the development and implementation of IFRS in Canada. (See CA Profession-sponsored courses and conferences.)

Canada - Getting with the IFRS program

More firms are getting with the program when it comes to implementing international financial reporting standards, according to a survey done by Resources Global Professionals at the CICA International Financial Reporting Standards Conference in June 2007. Seventy-nine percent have formulated a strategic plan for IFRS, up from 50% last year. It’s no surprise that there was an increase in the execution of each area of an IFRS strategic plan. Eighty-seven percent have identified the standards to be adopted; 84% have identified areas that are at risk and the resulting issues; 81% have reviewed their financial accounting procedures and 78% are training their staff in IFRS. (See Getting with the IFRS program.)

Adopting IFRS — Canada's Roundtable Discussions

Canada's Accounting Standards Board (AcSB) is holding Roundtable Discussions in Montreal, Calgary, Vancouver, Toronto and Halifax to discuss the views of interested parties on whether Canadian publicly accountable enterprises are ready to adopt International Financial Reporting Standards (IFRS) for fiscal years beginning on or after January 1, 2011.

Canada's progress review on IFRS

In accordance with the Implementation Plan for Incorporating IFRS into Canadian GAAP, Canada's Accounting Standards Board (AcSB) has published an Executive Summary of its Progress Review — Preliminary Report, October 2007.

International Accounting Standards: Opportunities, Challenges and Global Convergence Issues

Sir David Tweedie, Chairman, International Accounting Standards Board, addressed the subcommittee on securities, insurance and investment of the United States Senate in Washington, DC, on October 24, 2007. (View the Press Release or the full hearing on International Accounting Standards: Opportunities, Challenges and Global Convergence Issues from the US Senate.)

Canada’s IFRS Advisory Committee — Report on Public Meeting

At its September 2007 meeting, Canada’s IFRS Advisory Committee (IAC) discussed issues including Canada’s state of readiness for adoption of IFRS in 2011 and other areas identified as creating special challenges for transition to IFRS in Canada. (View the Report on Public Meeting).

IFRS one year on: ICAEW assesses implementation

Appointed by the European Commission in 2006 to undertake a study on the first year of implementation across the EU of International Financial Reporting Standards (IFRS), the ICAEW has gone public with its findings. (View the Executive Summary or the full report EU Implementation of IFRS and the Fair Value Directive: A report for the European Commission.)

Comparing IFRS and US GAAP in 2007

A new PwC publication, Similarities and Differences: A Comparison of IFRS and US GAAP (October 2007), provides a broad understanding of the key similarities and differences between IFRS and US GAAP. This updated edition takes into account all pronouncements issued under IFRS and US GAAP up to August 2007. The document is intended to help users (1) compare and contrast basic rules and standards from each financial reporting structure and (2) moderate the convergence of US GAAP and IFRS.

SEC leads global move to interactive data

The US Securities and Exchange Commission (SEC) Chairman, Christopher Cox, has announced the creation of a new office to lead the transformation to interactive financial reporting by public companies (view the Press Release). Additional information is available on the SEC website at Spotlight On: Interactive Data and XBRL Initiatives.

IFRS presentation and disclosure checklist for 2007

Deloitte has issued an IFRS Presentation and Disclosure Checklist for the year ended December 31, 2007. The checklist summarizes the presentation and disclosure requirements set out in International Financial Reporting Standards issued as of August 31, 2007. It does not address the recognition and measurement requirements of IFRS. The checklist is always available on Deloitte’s Model Financial Statements and Checklists Page.

EU endorsement status report updated

The European Financial Reporting Advisory Group (EFRAG) has updated The EU Endorsement Status Report: Position as at 16 October 2007. The report shows the status of endorsement, under the EU Accounting Regulation, of each IFRS including standards, interpretations and amendments.

SEC addresses IFRS convergence

In his Keynote Address to the 2007 US-EU Corporate Governance Conference on October 9, 2007, SEC Chairman Christopher Cox discussed a number of issues including accounting convergence and potential SEC recognition of IFRS. In New York on September 28, 2007, SEC Commissioner Kathleen L. Casey discussed the SEC’s role in support of international financial reporting convergence in Remarks Before the Global Financial Reporting Convergence Conference. At the World Standard-Setters Conference in London, England on September 24, 2007, Julie A. Erhardt, SEC Deputy Chief Accountant, spoke about the Implementation and Enforcement of IFRSs.

IFRS analysis by jurisdiction

Deloitte has expanded its analysis showing the Use of IFRS by Jurisdiction for domestic listed and unlisted companies. The analysis indicates whether the auditor’s report and basis of presentation note refer to IFRS without qualification or to IFRS as adopted by the local jurisdiction or to local GAAP.

IASB annual improvements project

The International Accounting Standards Board (IASB) has issued for public comment an exposure draft (ED) of proposed miscellaneous amendments to 25 International Financial Reporting Standards (IFRS) under its first annual improvements project. The ED will be freely available under IASB projects/Annual Improvements on October 22, 2007. The IASB requests comments by January 11, 2008. The proposed effective date is January 1, 2009. (View the Press Release.)

Keeping your head above water… Recent issues in financial reporting

PricewaterhouseCoopers (PWC) Canada has published its latest Financial Reporting Release. It discusses a new era where International Financial Reporting Standards (IFRS) — not US GAAP — dominates the Canadian financial reporting landscape. To learn more or to download the publication, visit PWC Canada.

Japan to converge with IFRS by 2011

The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) held their first meeting since the announcement of an initiative to accelerate convergence between Japanese generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), known as “The Tokyo Agreement.” (View the Press Release)

Canada - Transition to International Standards

The CICA has just launched a website to help Canadian CAs and the 4,500 public companies in Canada make the transition to IFRS. The site provides information on what to do and how to do it. To access these comprehensive resources provided by the CA profession, go to the CICA website, Transition to International Standards.

CICA Guide to IFRS in Canada

The Canadian Institute of Chartered Accountants (CICA) has issued a Guide to IFRS in Canada to facilitate the transition from Canadian GAAP to IFRS for Publicly Accountable Enterprises. The guide includes the Accounting Standards Board (AcSB) comparison of Canadian GAAP to IFRS, highlighting key differences and noting AcSB work in process that may affect the standard in the future. The comparison is organized in the order of the current Canadian standards. It includes a table of IFRS in numerical order cross-referenced to the CICA Handbook standard and a table of IFRS standards with no current Canadian GAAP equivalent.

IASB Update and IFRIC Updates – September 2007

Periodically, the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) publish newsletters on their activities. The IASB Update and IFRIC Update are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future IASB or IFRIC meetings.

Beyond IFRS

As Canada's Accounting Standards Board (AcSB) moves to adopt International Financial Reporting Standards (IFRS) for Canadian publicly accountable enterprises, some have asked whether there remains a need for an accounting standards-setting activity in Canada. There are a number of key areas where a national accounting standards-setter can contribute to the work of the international standards-setting partnership and there is indeed a continued role for a Canadian accounting standards-setting activity. (View the article Beyond IFRS)

XBRL data tags completed for US GAAP

The United States Securities and Exchange Commission has announced that XBRL data tags for the entire system of US generally accepted accounting principles has been completed. This will enable companies to more easily encode their financial statements in the XBRL language. XBRL makes the analysis and exchange of corporate financial information easier and more reliable by allowing data to be extracted and processed automatically by XBRL-aware applications. (View the SEC Press Release.)

Links to IFRS-related websites

Deloitte's IAS Plus website has a Page of Links to about 200 organizations around the world whose activities relate to international financial reporting. The page of links is always accessible by clicking "Links" right below the IAS Plus logo at the top of each web page.

UNCTAD reviews practical IFRS implementation challenges

During 2006, the United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) agreed to conduct reviews of the practical implementation challenges of IFRS, as well as best practices that evolve to meet these challenges. In connection with the upcoming meeting on October 30, 2007, the United Nations Conference on Trade and Development (UNCTAD) has published three case studies and a summary of the main practical implementation issues in the areas of regulatory framework, enforcement and technical capacity-building. (See the Review of practical implementation issues of International Financial Reporting Standards and visit the UNCTAD website for the Case Studies.)

New Zealand delays IFRS for small entities

The New Zealand Accounting Standards Review Board (ASRB), on the recommendation of the Financial Reporting Standards Board (FRSB), has decided to delay the mandatory adoption of the New Zealand equivalents to international financial reporting standards (NZ IFRS) for certain small entities. A government review of the financial reporting requirements applying to small and medium-sized companies under the Financial Reporting Act will commence in mid-2008. (View the ASRB Press Release and the related ASRB Announcement).

Canadian Accounting Standards - Adopting IFRS: Next Steps

Progress is definitely on track for the adoption of International Financial Reporting Standards (IFRS) by Canadian publicly accountable enterprises, starting January 1, 2011. As with any complicated journey, progress reports and check points are needed. This Bulletin #5 covers the next steps for Canada’s Accounting Standards Board (AcSB) and points to the advance planning decisions that publicly accountable enterprises should take. Planning in many cases will be industry-specific.

IASB issues revised standard on the presentation of financial statements

The International Accounting Standards Board (IASB) has issued a revised version of IAS 1 Presentation of Financial Statements. The revision is aimed at improving users’ ability to analyse and compare the information given in financial statements. The publication of IAS 1 marks the completion of the first phase of the IASB’s joint initiative with the US Financial Accounting Standards Board (FASB) to review and harmonise the presentation of financial statements. The second phase, which has already begun, is examining more fundamental questions about the presentation of information in financial statements and the IASB expects to publish a discussion paper on the subject within the next six months. (View the Press Release or visit the project web page.)

Conceptual Framework—Joint Project of the IASB and FASB

The US Financial Accounting Standards Board (FASB) is redeliberating issues related to its Preliminary Views, Conceptual Framework for Financial Reporting: Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information. Specifically, it is addressing concerns raised by respondents about the role of stewardship in the objective of financial reporting and the logical flow of Chapter 1 of the Preliminary Views. The Board has decided that the “objective of general purpose external financial reporting is to provide financial information about the reporting entity that is useful to present and potential investors and creditors in making decisions in their capacity as capital providers.”

Chile to adopt IFRS in 2009

In Chile, the Accounting Standards Board of the Colegio de Contadores de Chile, in conjunction with the Interamerican Development Bank (BID), has adopted a program of converging to International Financial Reporting Standards (IFRS). Starting January 2009, all business entities are required to prepare their financial statements in conformity with IFRS. For details, see the Deloitte website Chile Country Page and Country by Country Information.

The Road to IFRS

It might be only four years until Canadian publicly accountable enterprises are required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS). For many, this will require significant education and planning to understand and consider how best to apply the requirements of IFRS. In some cases, this will provide an opportunity for a fresh look at accounting policies. Those who plan early are likely to be best prepared for the opportunities and challenges posed by the changeover (see The Road to IFRS).

CFA Institute promotes a new business reporting model

The CFA Institute Centre for Financial Market Integrity has published a new financial reporting model to enhance the ability of financial analysts and investors to evaluate companies in making investment decisions. The publication, A Comprehensive Business Reporting Model: Financial Reporting for Investors, was issued in July 2007. It proposes 12 principles to ensure that financial statements are relevant, clear, accurate, understandable and comprehensive.

European simplification of financial reporting rules

The European Federation of Accountants (FEE) has published a background note on the European Commission’s Communication on Simplification of EU rules on Company Law, Accounting and Auditing. The Background Note provides a history of the current simplification efforts and a reference to FEE’s Position on EC Simplification Project.

XBRL-enablement of IFRS – IASCF Update

The IASC Foundation (IASCF) has published a newsletter XBRL Update on developments in the XBRL-enablement of IFRS. XBRL (eXtensible Business Reporting Language) is a royalty-free computer software language that labels company financial and other data with codes from a dictionary (taxonomy) so that investors and analysts can more easily locate and analyze desired information.

Statistics database on cross-border securities

Deloitte has updated its Database of Statistics which provides clear evidence of the globalization of the world’s capital markets and of the need for global financial reporting standards. The update reflects July 2007 data on the number of non-US companies listed on member exchanges of the World Federation of Exchanges and details of cross-border listings on the New York Stock Exchange, NASDAQ and the London Stock Exchange. The data includes cross-border lending and accounting standards used by companies listed on the Deutsche Börse, as well as foreign companies registered with the US Securities and Exchange Commission (SEC).

IFRS online programs

The IFRS Award Programme, distributed by the Canadian Institute of Chartered Accountants (CICA) in cooperation with the Institute of Chartered Accountants of England and Wales (ICAEW), is a self-study course that enables a comprehensive understanding of the subject area. Also, in conjunction with the CICA’s IFRS Conference held in Toronto in June 2007, many of the presentations and related materials are available.

Managing the Transition to IFRS in Canada

Canada's move to IFRS affects publicly-traded companies and other publicly-accountable enterprises. Because of the magnitude of the change, as well as its timing, affected enterprises should act soon. A KPMG publication called Managing the Transition to IFRS: The journey to 2011 focuses on the upcoming transition in Canada, its timing and how enterprises should prepare. It describes what companies in Europe and Australia learned from their experience in 2005 and how the transition may be smoother in some ways but more challenging in others. Finally, it highlights where to find other resources providing more detailed insights and information.

SEC concept release on use of IFRS by US companies

The US Securities and Exchange Commission has published a Concept Release to obtain information about the extent and nature of the public’s interest in allowing US issuers to prepare financial statements in accordance with IFRS for purposes of complying with the rules and regulations of the Commission. US issuers presently use US GAAP. The release asks 35 questions on which the SEC requests comments by November 13, 2007.

SEC Advisory Committee on Improvements to Financial Reporting

The US Securities and Exchange Commission's Advisory Committee on Improvements to Financial Reporting held its first meeting on August 2, 2007 in Washington DC. The committee was formed to examine the US financial reporting system with the goals of reducing unnecessary complexity and making information more useful and understandable for investors. (View the Webcast and meeting materials.)

ASBJ and IASB announce convergence to IFRS by 2011

Ikuo Nishikawa, Chairman of the Accounting Standards Board of Japan (ASBJ), and Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), jointly announced the Tokyo Agreement to accelerate convergence between Japanese GAAP and International Financial Reporting Standards (IFRS) by 2011. (View the Press Release.)

XBRL Advisory Council and XBRL Quality Review Team

The IASC Foundation is inviting applications for its XBRL Advisory Council (XAC) and its XBRL Quality Review Team (XQRT). The XAC provides strategic advice to the Trustees and the Foundation’s London-based XBRL team on the future development and adoption of the XBRL Taxonomy for International Financial Reporting Standards (IFRS). The XQRT reviews the developed taxonomies and offers strategic advice and practical recommendations on the quality of the IFRS taxonomy. Candidates are expected to have an outstanding record in financial and business reporting as senior executives of their organisations. (View the Press Release.)

IASB Update and IFRIC Updates – July 2007

Periodically, the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) publish newsletters on their activities. The IASB Update and IFRIC Update are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future IASB or IFRIC meetings.

IAS Plus Quarterly Newsletter

Deloitte's IAS Plus Quarterly Newsletter has been published. The newsletter reports on the activities of the IASB, the IFRIC and the IASC Foundation. It also covers worldwide issues and events relating to international financial reporting. Other relevant newsletters and publications are available at the IAS Plus website.

Canada’s IFRS Progress Review Plan

Canada’s Accounting Standards Board (AcSB) has published its plan for assessing the progress Canada is making towards convergence with International Financial Reporting Standards. The Progress Review Plan confirms that the anticipated timing of full convergence continues to be appropriate. Comments are welcome throughout the process.

Canada’s Publicly Accountable Enterprises Strategy

Canada’s Accounting Standards Board (AcSB) continues to discuss issues related to the implementation of its strategy to adopt International Financial Reporting Standards (IFRS) for publicly accountable enterprises. Decisions described as tentative are subject to further discussion and, in many cases, exposure for public comment. (View the Decision Summaries for July 11, 2007 and May 29, 2007.)

SEC soliciting public comment on role of IFRS

The Securities and Exchange Commission has voted unanimously to publish a Concept Release for public comment on allowing US issuers, including investment companies, to prepare their financial statements using International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board. (View the SEC Press Release).

India announces convergence with IFRS

The Institute of Chartered Accountants of India (ICAI) has decided to fully converge with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board for accounting periods commencing on or after April 1, 2011. Like Australia, New Zealand and countries in the European Union, the IFRS will be adopted for the listed entities and other public interest entities such as banks, insurance companies and large-sized entities. The decision is an important milestone in achieving full convergence with IFRS as India will join 102 countries which presently require or permit use of IFRS. By 2011, the number is expected to reach 150. (View the IASB Press Release).

International Financial Reporting Standards — Today’s challenges

Making the transition from Canadian GAAP to IFRS is not just a technical accounting exercise. It will present unique challenges, as it impacts many other areas beyond an organization’s finance and accounting functions. IFRS also places significant responsibility on management to change the way they communicate business results to the market (see PricewaterhouseCoopers Canada).

IFRS illustrative financial statements for 2006

PricewaterhouseCoopers offers several sets of financial statements for an entity's first interim reporting period under IFRS, for an existing preparer of consolidated IFRS financial statements, and for industry-specific entities: banking, insurance, investment funds and investment property. KPMG offers a set of financial statements based on a fictitious multinational corporation involved in general business; the corporation is not a first-time adopter of IFRS. There are also variants on this: a set for first-time adopters, for banks, for investment funds and for investment property companies. BDO International offers two sets of model financial statements of a listed company prepared in accordance with IFRS: one for ongoing reporters and one for first time adopters.

IASB/FASB vision of financial statement presentation

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are unveiling their vision of the future of financial statement presentation. Launched in 2004, the joint IASB/FASB effort first concentrated on the income statement (the presentation of income and expenses) but has now been broadened to include the complete set of financial statements. In May 2007, the two bodies posted an update on the IASB website and the FASB website detailing the progress and offering tentative examples of what financial statements might look like in the future.

Principles into Practice – key points

In April 2007, the Institute of Chartered Accountants of Scotland (ICAS) held a conference in co-operation with the American Institute of Certified Public Accountants to consider principles-based accounting and the challenges of implementation. The key points from this conference have been published by ICAS in a June 2007 report Principles into Practice – key points from the New York conference. More information is available on the ICAS website.

SEC staff reviews IFRS financial statements

The US Securities and Exchange Commission has published SEC staff observations arising from their review of the 2006 annual reports of more than 100 foreign private issuers containing financial statements prepared on the basis of International Financial Reporting Standards (IFRS). The comment letters sent to companies along with the company responses are available on the SEC website.

New CESR database on all European listed shares

The Committee of European Securities Regulators (CESR) has launched a new CESR Database on over 7,000 companies trading shares on EU Regulated Markets. Available information includes average daily turnover, number of daily transactions, free float, regulatory oversight authority and country code.

Stewardship/Accountability as an Objective of Financial Reporting

The European Financial Reporting Advisory Group (EFRAG), the UK Accounting Standards Board (ASB) and a number of other European accounting standard-setters have published a brief paper called Stewardship/Accountability as an Objective of Financial Reporting. The paper discusses the rationale for including stewardship or accountability to shareholders as a separate objective of financial reporting. It is available from the EFRAG website and the UK Financial Reporting Council (FRC) website.

Accountants of the world uniting in IFRS revolution

To date, more than 100 countries have abandoned their existing accounting practices in favour of IFRS, with more expected to do so. The shift is not simply a series of technical accounting changes but a cultural transformation as well. It is "one of the biggest revolutions in financial reporting in living memory," according to the foreword in a June 2007 KPMG report "IFRS: The Quest for a Global Language." The report assesses the impact of this upheaval through the experiences and thoughts of those involved.

US CFOs mixed on international accounting choice

The US Securities and Exchange Commission (SEC) proposed last week that foreign public companies listed in the United States may choose International Financial Reporting Standards (IFRS) or US Generally Accepted Accounting Principles (GAAP) when filing reports. In a recent survey by Financial Executives International and Baruch College, just over half of the 148 CFOs polled said they would support the SEC's plan. But almost 45 percent said they were opposed to it. In comments, some of the CFOs said they felt the ability to choose between accounting standards was inconsistent or that regulators should allow only one standard, whether it is IFRS or US GAAP.

World Federation of Exchanges supports IFRS

Responding to a consultation paper of the IOSCO Technical Committee, the World Federation of Exchanges (WFE) explained the importance of sound financial reporting to public capital markets. It reaffirmed the WFE's strong support of IFRS. The WFE is the global organisation of 54 regulated exchanges from all regions of the world that account for over 97% of world stock market capitalization.

Canada's IFRS Advisory Committee

Canada's Accounting Standards Board (AcSB) is seeking expressions of interest from individuals who have experience in the preparation of financial reports under International Financial Reporting Standards (IFRS) to participate as a volunteer on the IFRS Advisory Committee. This Committee assists the AcSB and staff in implementing its strategy for adopting IFRS for publicly accountable enterprises.

Canada - Financial Reporting by Private Enterprises

"Financial Reporting by Private Enterprises" is a recording of an interview with Paul Cherry, Chair of Canada's Accounting Standards Board on the recently released Invitation to Comment and Discussion Paper. Additional information is available on the website. Responses to these documents are requested by October 31, 2007.

The simple complexity of XBRL

At a recent Securities and Exchange Commission (SEC) and Financial Reporting Institute Conference in California, Robert Herz, chairman of the Financial Accounting Standards Board, said that one complication involved with implementing eXtensible Business Reporting Language (XBRL) is the difference between US accounting standards and those abroad. That means that both US GAAP and IFRS have different data "tags," which adds to the cost and confusion of using XBRL (view the full article).

SEC to discuss eliminating reconciliation

The US Securities and Exchange Commission (SEC) has scheduled an Open Meeting on Wednesday, June 20, 2007 in Washington, D.C. to consider whether to propose amendments to accept financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States when contained in the filings of foreign private issuers with the Commission (view the announcement).

IFRS Advisory Committee (IAC) — Report on Public Meeting

At its May 2007 meeting, the IAC discussed the AcSB’s plan for reviewing Canada’s progress in preparing to implement International Financial Reporting Standards (IFRS). It also discussed the effects of adopting IFRS on accounting in the oil and gas sector and for joint ventures (view the Report on Public Meeting).

EFRAG updates endorsement status report

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement, under the EU Accounting Regulation, of each IFRS, including standards, interpretations and amendments. The report is called: The EU endorsement process: Position as at 4 June 2007. Certain IASB pronouncements have not yet been endorsed for use in Europe including IFRS 8 Operating Segments, IAS 23 Borrowing Costs (revised March 2007) and IFRIC 12 Service Concession Arrangements. More information is available on the EFRAG website.

CESR addresses equivalence of GAAP of third countries to IFRS

In accordance with the mandate of the European Commission, the Committee of European Securities Regulators (CESR) has published its advice on a mechanism for determining equivalence of the generally accepted accounting principles of third countries to IFRS. CESR also suggests the European Commission consider extending the existing transitional measures for those countries currently converging to IFRS, if certain conditions are met. Should the Commission adopt such transitional measures, CESR recommends they not be extended beyond 2012. The press release and final advice are available online.

Adopting International Financial Reporting Standards in Canada

A presentation that provides a broad overview of matters to be aware of leading up to Canada’s convergence with International Financial Reporting Standards (IFRS) for publicly accountable enterprises has been posted (view slides or audio presentation)

IFAC global survey on financial reporting

The International Federation of Accountants (IFAC) has invited all participants in the financial reporting supply chain (including investors and other users of financial reports, standard setters, preparers, auditors, academics and regulators) to complete a global survey designed to obtain information that could strengthen the financial reporting process. The survey is open until July 6, 2007. It is part of an IFAC project to develop recommendations for improving the quality of corporate governance, financial reporting (including IFRS) and financial auditing. It will also include in-depth one-on-one interviews. Participants are asked to complete the survey online (www.ifac.org/financialreportingsurvey/).

United States and Japan discuss global convergence to IFRS

The Financial Accounting Standards Board (FASB) recently met with the Accounting Standards Board of Japan (ASBJ) in Tokyo to discuss their shared pursuit of global convergence of accounting standards. Representatives of both Boards agreed that their ongoing discussions are useful in promoting mutual understanding that will contribute to subsequent deliberations and to their respective convergence projects with the IASB. They agreed to continue exchanging views on longer-term issues and current concerns (view FASB press release).

Implications of moving to IFRS for existing Canadian/US GAAP differences

The document, Implications of moving to IFRSs for existing Canadian/US GAAP differences, has been prepared by the staff of the Accounting Standards Board (AcSB) to provide a high level summary of the extent to which convergence of Canadian standards with International Financial Reporting Standards (IFRS) could be expected to eliminate existing differences between Canadian and US GAAP, or create new differences. Its purpose is to provide readers of the AcSB’s “Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP” with information about the extent to which the move to IFRS will reduce or increase conflicts with US GAAP compared with those that exist currently between Canadian standards and US GAAP.

CICA Implementation Support Gateway

The CICA Implementation Support Gateway is a resource for implementing new accounting, assurance and public sector standards.
The Gateway serves as a single source for support materials that will help you learn about and implement the standards that affect you. Annotated links are provided to make it easy to find the information that is most applicable to your particular situation.

Perspectives on the Global Application of IFRS

A February 2007 report by the Forum of Firms, an organization affiliated with the International Federation of Accountants (IFAC), found that firm needs and processes related to International Financial Reporting Standards (IFRS) vary greatly depending on firm size and number of IFRS clients. The report, Perspectives on the Global Application of IFRS, was based on interviews with 10 international accounting firms. The document illustrates progress made with IFRS and sets out examples of good practices firms are implementing.

Canadian developments on XBRL

The Canadian Securities Administrators (CSA), the council of the securities regulators of Canada’s provinces and territories, has launched a voluntary Extensible Business Reporting Language (XBRL) filing program. Under the program, participating companies will begin filing their financial statements in XBRL in May 2007. The XBRL statements will be available to the public at www.sedar.com.

Plan to adopt IFRS in Canada

Canada’s Accounting Standards Board (AcSB) has adopted a strategy to apply International Financial Reporting Standards (IFRSs) to publicly accountable enterprises in the future. In May 2007, the AcSB published an updated version of its Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP. This plan includes an outline of the key decisions that the AcSB will need to make as it implements the Strategic Plan for publicly accountable enterprises. The AcSB has published three Bulletins and an audio presentation, which summarize key aspects of the plan for publicly accountable enterprises (see AcSB International Activities and Strategic Planning).

SEC Spotlight on IFRS

The US Securities and Exchange Commission (SEC) has added a section to its website called Spotlight On: International Financial Reporting Standards "Roadmap". Included are materials and webcast archives relating to the SEC Roundtable on IFRS Roadmap that was held in March 2007, SEC Releases relating to IFRS, speeches and public statements by SEC Commissioners and staff on IFRS and the Roadmap, A Securities Regulator Looks at Convergence, by Donald T. Nicolaisen, April 2005.

Comparison of Canadian GAAP and IFRS

An analysis has been prepared by staff of Canada’s Accounting Standards Board (AcSB) to provide readers with information about the extent of similarity between IFRS and Canadian accounting standards. The document, called Comparison of Canadian GAAP and IFRSs, reflects the standards as at March 31, 2007.

IFRS Resources and Tools

KPMG Canada provides a library of IFRS-related publications, tools and other resources that help in understanding and using IFRS in a Canadian context. While most will be relevant to all enterprises dealing with IFRS, some are tailored to a particular industry that faces special issues. The guidance materials are organized by their focus: understanding IFRS; making the transition to IFRS; applying IFRS; and industry-specific issues and analysis. To access these materials, visit the KPMG website – Resources and Tools.

Mutual Recognition of IFRS and US GAAP a priority

At the annual European Union (EU) – US Summit held in April 2007 in Washington D.C., the EU and US announced the adoption of a Framework for Advancing Transatlantic Economic Integration. The EU-US joint statement was signed on April 30 by Angela Merkel, chancellor of Germany and currently president of the European Council, Jose Manuel Barroso, president of the European Commission (EC) and US President George W. Bush.

Canada’s AcSB seeks input on proposals for reporting by private companies

Canada’s Accounting Standards Board (AcSB) is asking for feedback on three options that will change financial reporting standards for privately-owned companies. The proposals are contained in an Invitation to Comment and Discussion Paper released by the AcSB. Discussion and feedback received during the comment period will inform the board’s decision which, in turn, will significantly impact the way financial reporting is carried out by private companies in Canada.

CICA Conference on IFRS - Path to Convergence

The CICA will host a “Conference on International Financial Reporting Standards - Path to Convergence” on June 11-12, 2007 in Toronto. According to the program, “The target has been set…IFRS by 2011! How you get there is, to a large extent, up to you. Finding the right path that ensures your organization is prepared may be one of the biggest financial reporting challenges you will face in the coming years. Many have begun reviewing the process and are realizing that to meet the deadline, and ensure that the abundance of details are adequately addressed, means getting underway now. The conference will include technical sessions and insight from jurisdictions that have made the shift to IFRS, to help you prepare for, and define, your path to convergence.”

Presentation of income under IFRS

Companies, regulators, investors and others are currently debating which non-GAAP measures provide useful insight for investors and should be included in the financial statements. With this in mind, PricewaterhouseCoopers examined the non-GAAP measures in 2,800 financial statements across Europe. It found that their use in the International Financial Reporting Standards (IFRS) environment is widespread, even on the face of the income statement. To learn more, read the April 2007 publication Presentation of income under IFRS: flexibility and consistency explored.

More on small and medium-sized entities (SMEs)

The IASB has published A Staff Overview of the exposure draft of the proposed IFRS for Small and Medium-sized Entities. The overview is intended as a high level introduction to the proposals set out in the following documents: Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities; Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities - Basis for Conclusions; Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities - Draft Implementation Guidance - Illustrative Financial Statements and Disclosure Checklist. For complete project information on SMEs, visit the IASB website.

IFRSs In Your Pocket

In April 2007, Deloitte published the sixth edition of IFRSs In Your Pocket. The 100-page guide includes information about: IASB structure and contact details; use of IFRS around the world, including updates on Europe, Asia, USA and Canada; summaries of each IASB Standard (through IFRS 8 and the amendment to IAS 23) and Interpretation (through IFRIC 12), as well as the Framework and the Preface to IFRS; background and tentative decisions on all current IASB projects; IASC and IASB chronology; update on IFRS-US GAAP convergence; and other useful IASB-related information.

SEC Announces Next Steps Relating to IFRS

The United States Securities and Exchange Commission has announced a series of actions it intends to take relating to the acceptance of financial reporting in International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). The proposals would give foreign private issuers a choice between IFRS and U.S. GAAP. The Press Release is available online.

IOSCO 32nd Annual Conference

The world’s securities and futures regulators have concluded their meeting in Mumbai, India which took place from April 9-12, 2007 on the occasion of the 32nd Annual Conference of the International Organization of Securities Commissions (IOSCO). The Final Communiqué, available on the IOSCO website, states that the need to progress toward internationally recognized financial reporting standards has been a central issue in the global financial services markets for some time. IOSCO has consistently focused on convergence, implementation and application, through the building of an IOSCO Database that will facilitate the sharing by securities regulators of decisions relating to the enforcement of IFRS.

FEI addresses financial reporting complexity

The Financial Executives International (FEI) notes that the complexity and technical demands of accounting and disclosure standards have increased considerably in recent years. It believes complexity harms the ability of users of financial statements to understand the information provided and impairs the ability of preparers to explain their financial results in a meaningful way. Investors are not well served by the drain on shareholder wealth from the excessively complex compliance process. The capital markets are not well served when scarce financial resources are not used in value-enhancing business initiatives but to satisfy disclosure and accounting requirements that fail to meet cost-benefit tests. The FEI’s Four Point Plan recommends steps to address complexity, including a call for all stakeholders in the financial reporting process to come together to form an independent “Committee on Complexity.”

CESR Consultation Paper on GAAP equivalence

The Committee of European Securities Regulators (CESR) has published a Press Release and Consultation Paper on the mechanism for determining the equivalence of the generally accepted accounting principles of third countries. The Prospectus Directive and Regulation (“the prospectus regime”) and the Transparency Directive will require the European Commission to establish by mid 2008 whether a given third country GAAP is equivalent to IFRS.

Patricia O'Malley named as IFRIC Co-ordinator

Patricia O'Malley completes her term as a member of the IASB on June 30, 2007. Effective July 2007, she will become the IFRIC Co-ordinator which is the senior staff person for the International Financial Reporting Interpretations Committee (IFRIC). IFRIC's role is to “interpret the application of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) and provide timely guidance on financial reporting issues not specifically addressed in IAS and IFRS, in the context of the IASB Framework.” Ms O'Malley is a former chair of the Canadian Accounting Standards Board and member of Canada’s Emerging Issues Committee.

Survey of Reported Canadian/US GAAP Differences

The Canadian Accounting Standards Board staff has published a study on Reported Canadian/US GAAP Differences. The study analyzes reported Canadian/US GAAP differences in a survey of 150 public Canadian companies for fiscal years ending in 2005. All of the companies selected for this study have listings on major US stock exchanges or issue debt securities in the US.

Canada’s IFRS convergence strategy

Canada’s Accounting Standards Board staff has prepared a presentation on migrating to IFRS. It provides a broad overview of matters to be aware of regarding Canada’s convergence with International Financial Reporting Standards for publicly accountable enterprises. The presentation “Adopting International Financial Reporting Standards in Canada” is available in audio format and slides.

UK views on convergence costs

According to the UK Financial Services Authority, the so-called “roadmap” for the Securities and Exchange Commission (SEC) to determine that IFRS are equivalent to US GAAP could potentially lead to a more transparent and lower cost global capital market in which investors are better informed and companies can access sources of capital more cheaply. However, across all stakeholder groups in the UK (preparers, auditors, investors and regulators) there is growing concern that the costs of convergence may outweigh the benefits being sought. For details, read the FSA publication Financial Risk Outlook 2007 (particularly Section F).

Another BLOG on migrating to IFRS

PricewaterhouseCoopers is maintaining a blog on International Financial Reporting Standards (IFRS). Written by senior IFRS partner Ian Wright, it looks at the hot topics in financial reporting and the issues that companies need to think about before “ideas and proposals” become a practical reality. Recent topics focus on IFRS for subsidiaries and measurement concepts for communicating with the market.

Can global standards be principles-based?

Regarding the migration to IFRS, IASB Chairman Sir David Tweedie recently delivered the 2007 Ken Spencer Memorial Lecture at the University of Melbourne, Australia. The title of the paper is: “Keep it simple, stupid! Can global standards be principle-based?” In his opinion, a good principles-based standard must pass four tests: (1) Is the standard written in plain English? (2) Can the standard be explained simply in a matter of a minute or so? (3) Does it make intuitive sense? (4) Does management believe it helps them to understand and describe the underlying economic activity? The lecture is also available as an MP3 audio presentation or slides.

Working through IFRS challenges

The 2005-2006 financial year was the first in which International Financial Reporting Standards were implemented in Australia. The migration to IFRS has gone relatively smoothly and for the first time the country’s financial reporting is in line with guidelines set by the global standards overseer. Submissions from stakeholders on progress with the implementation identified several themes including: the level of Australian influence over the development of IFRS; the education and skill level of those responsible for implementing and interpreting the new standards; and issues affecting small and medium-sized enterprises. To learn more about the challenges, read the article “Working through IFRS challenges ” in the February 2007 issue of Charter magazine.

CESR report on “Equivalence” of Canadian, Japanese and US GAAP

The Committee of European Securities Regulators (CESR) has published a report that responds to a request from the European Commission. The report CESR's advice to the European Commission on the work programmes of the Canadian, Japanese and US standard setters, the definition of equivalence and the list of third country GAAPs currently used on the EU capital markets is available on the CESR website.

Migrating to IFRS from US GAAP

Deloitte's IFRS Global Office has published a new Comparison of International Financial Reporting Standards and United States GAAP as of February 2007. The focus is on differences that are commonly found in practice. The significance of the differences will vary for individual entities depending on the nature of the operations, the industry in which it operates and the accounting policy choices it has made.

European Commission Roundtable on IFRS

The European Commission (EC) has issued a Summary Meeting Report of the January 2007 meeting of the EC Roundtable for the Consistent Application of IFRS. The Roundtable, formed in 2006, will identify cases where the accounting treatment in Europe under IFRS is so divergent, significant and widespread as to warrant “common concern” among the different groups of participants including preparers, auditors, national standard-setters and regulators (view the flowchart). When such cases are identified, the Roundtable will refer them to IFRIC, although circumstances may arise where the matter could be referred directly to the IASB. For more information, visit the European Commission website.

ICAEW studies IFRS implementation in Europe

The European Commission has asked the Institute of Chartered Accountants in England and Wales (ICAEW) to analyze the implementation of IFRS in the European Union. Led by David Cairns, the project team is reviewing the IFRS consolidated financial statements of 200 stock exchange listed companies. The ICAEW study will also incorporate the views of preparers, users and auditors of IFRS financial statements, as well as the experiences of securities and other regulators. Details are provided on the ICAEW website.

Roundtable on IFRS “Roadmap”

The United States Securities and Exchange Commission (SEC) will hold a webcast on March 6, 2007 on the implications of removing the requirement for reconciliations to US GAAP for financial statements prepared using IFRS. For more information, view the press release or visit the SEC website (International Financial Reporting Standards "Roadmap" Roundtable).

CICA Conference on IFRS - Path to Convergence

The CICA will host a “Conference on International Financial Reporting Standards - Path to Convergence” on June 11-12, 2007 in Toronto. According to the program, “The target has been set…IFRS by 2011! How you get there is, to a large extent, up to you. Finding the right path that ensures your organization is prepared may be one of the biggest financial reporting challenges you will face in the coming years. Many have begun reviewing the process and are realizing that to meet the deadline, and ensure that the abundance of details are adequately addressed, means getting underway now. The conference will include technical sessions and insight from jurisdictions that have made the shift to IFRS, to help you prepare for, and define, your path to convergence.”

One year later…

The first posting to this BLOG was on February 27, 2006. It noted that “The purpose of this BLOG is to provide a focal point for disseminating information on research and guidance materials that facilitate the migration by organizations from domestic accounting and financial reporting standards to International Financial Reporting Standards (IFRS).” Since then, over 60 postings have been entered. If you find the BLOG helpful or have suggestions for improvement, please send an e-mail (research.studies@cica.ca).

FASB adopts fair value option for financial instruments

The United States Financial Accounting Standards Board (FASB) has issued Statement 159 The Fair Value Option for Financial Assets and Financial Liabilities (FAS 159). The new standard provides companies with an option to report selected financial assets and liabilities at fair value. It also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities. FAS 159 is effective for an entity's first financial year beginning after November 15, 2007, with earlier adoption permitted. The FAS 159 fair value option is similar, but not identical, to the fair value option in IAS 39 Financial Instruments. For more information, view the FASB News Release.

IFRS for Small and Medium-sized Entities (SMEs)

The IASB has issued an Exposure Draft of an International Financial Reporting Standard for Small and Medium-sized Entities. The comment deadline is October 1, 2007. The ED presents a simplified, self-contained set of accounting principles for SMEs based on user needs and cost-benefit considerations. A press release states that the English text of the document will be available on the IASB website on February 26, 2007. Spanish, French and German translations are expected in April 2007.

IASB Work Plan 2006-2008

The International Accounting Standards Board (IASB) has updated its Work Plan following the decisions made at the IASB meeting in December 2006. It reflects the objectives of the Memorandum of Understanding with the US Financial Accounting Standards Board (FASB) which sets out a roadmap for convergence between IFRS and US GAAP for the period 2006-2008. Details are provided on the IASB website.

IASB proposals to help first-time adopters of IFRS

The International Accounting Standards Board (IASB) has published for public comment proposals to provide further exemptions from the requirements of International Financial Reporting Standards (IFRS) when they are adopted for the first time. The proposals are set out in an Exposure Draft of proposed amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards. A press release was also issued.

IASB/FASB discussions on measurement

The IASB and FASB are holding round-table discussions on measurement in conjunction with their joint conceptual framework project in three locations during January and February 2007. Reference materials including the background paper for the round-table discussions are available on the IASB website.

IASB extends comment period on Fair Value Measurements

The International Accounting Standards Board (IASB) has extended until May 4, 2007 the period for public comment on the discussion paper Fair Value Measurements. The paper was published on November 30, 2006 and comments requested by April 2, 2007. Constituents have asked for more time, given the significance of the issues raised in the discussion paper. A press release was also issued.

IASB Update and IFRIC Update – January 2007

Periodically, the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) publish newsletters on their activities. IASB Update and IFRIC Update are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future IASB or IFRIC meetings.

IFRS Roundtable at HEC Montreal – February 5, 2007

A public roundtable on The International Convergence of Accounting Standards: Challenges for Canada will be held in Montreal on February 5, 2007. The event is organized in partnership with the Departments of Accounting Studies and International Business at HEC Montreal. Patricia O’Malley (IASB, London) will provide a global viewpoint on the convergence process. Annie Mersereau (IFRS Partner, KPMG, Paris) will highlight the European experience on adopting IFRS. Paul Cherry (Chair, Canada’s Accounting Standards Board) will discuss the approach to adopting IFRS in Canada. Serge Pharand (Vice-President and Corporate Comptroller, CN) will present the corporate viewpoint on the convergence process. For information or to attend, visit the HEC website.

Canada’s IFRS Advisory Committee (IAC) — Third Meeting Report

The IAC held its third public meeting in Toronto on December 18, 2006. It discussed issues encountered with respect to implementing International Financial Reporting Standards in practice and the possible impact of the removal of Canadian standards that have no IFRS equivalent. The Meeting Report is available online. The next meeting is scheduled for May 3, 2007.

Canada’s Move to International Financial Reporting Standards

The Accounting Standards Board of Canada has prepared Bulletin #4 for public companies on “Canada’s Move to International Financial Reporting Standards: Frequently Asked Questions.” This bulletin will be of interest to Boards of Canadian public companies, management, accountants and auditors.

IAS Plus Newsletter

Deloitte publishes a quarterly IAS Plus Newsletter. The newsletter, usually around 30 pages in length, reviews the activities of the IASB, the IFRIC and the IASC Foundation Trustees during the preceding quarter, including summaries of recent Standards and Interpretations and proposals. The newsletter also reports on worldwide issues and events relating to international financial reporting, including new adoptions of IFRS.

Expanded survey on global use of IFRS

Deloitte has expanded its survey on Global Use of IFRS by Country and Region to include information about whether unlisted companies are required or permitted to use IFRS (previously, the survey covered only listed companies). It reports on direct use of IFRS which means that the basis of preparation note and the auditor's report will refer to conformity with IFRS.

Canada’s IFRS Advisory Committee (IAC) — Second Meeting Report

The IAC held its second public meeting in Toronto on November 3, 2006. It discussed the definition of “publicly accountable enterprises” and the extent to which modifications might be made to IFRS on adoption. It also discussed the methods available to ensure the appropriate bodies take the necessary steps to provide suitable and timely IFRS education for constituents. The Meeting Report is available online.

Applying International Financial Reporting Standards

Published by John Wiley and Sons, Applying International Financial Reporting Standards is a leading university textbook on IFRS. The focus of this 1,236-page textbook is on the analysis, illustration and application of IFRS. It has been written for intermediate and advanced financial reporting courses, at both undergraduate and postgraduate level, and aligns with the knowledge expectations of the accounting profession. The co-authors are Keith Alfredson, former chairman of the Australian Accounting Standards Board; Paul Pacter, a director in Deloitte's IFRS Global Office; Ruth Picker, IFRIC member and a technical partner of Ernst & Young; Ken Leo and Jeannie Radford, both of Curtin University of Technology; and Victoria Wise of Victoria University.