Canadian business confident of readiness for IFRS changeover

A survey of Canadian Chartered Accountants in senior executive roles suggests that many companies believe they will be ready for the changeover to International Financial Reporting Standards (IFRS), but they remain in the early stages of preparedness. About 425 senior executives were surveyed in November 2008. (Read the CICA Media Release.)

European Commission grants equivalence in relation to third country GAAPs

The European Commission has adopted measures which determine that GAAPs in the US, Japan, China, Canada, South Korea and India are equivalent to International Financial Reporting Standards (IFRS). The Commission will review the situation of some of these countries (China, Canada, South Korea, India) by 2011. It will also regularly monitor the ongoing status of equivalence. The measures mean that foreign companies listed on EU markets will continue to be able to file their financial statements prepared in accordance with those GAAPs (the transitional provisions allowing the use of these GAAPs in the EU would otherwise have expired at the end of 2008). (Read the Press Release.)

IASC Foundation publishes update on responses to G20 conclusions

The IASC Foundation has published a table summarizing the actions and ongoing work by the International Accounting Standards Board (IASB) in response to the conclusions reached by the G20 leaders in their summit in Washington DC on November 15, 2008. (For more information, read the IASC Foundation Press Release.)

SEC Signals No Major Shake-Up for Fair Value

US Securities and Exchange Commission (SEC) Chairman Christopher Cox, speaking this week at an AICPA conference, said investors have told the SEC that fair value measurement has increased transparency in financial reporting. But Cox signaled that the SEC would call for some additional guidance on fair value measurements. (View highlights from Chairman Cox's speech.)

How IFRS is affecting accounting education

For those charged with educating the next generation of accountants, the expected shift from US GAAP to International Financial Reporting Standards (IFRS) stirs up a host of potentially thorny issues. Professors and college administrators are dealing with questions about the timing of the curriculum expansion and the resources needed to handle IFRS. They are examining how to reconfigure course work to make room for international standards. (Read the article On the Verge of an Academic Revolution.)

AICPA inaugural IFRS webcast on Dec. 12, 2008

The American Institute of Certified Public Accountants (AICPA) is offering its inaugural International Financial Reporting Standards (IFRS) webcast on December 12, 2008. A first in a new series, the IFRS Quarterly Webcast Series - IFRS 101: The Essentials, will review the background and history on IFRS convergence efforts, the proposed SEC Roadmap published on November 14, 2008, a summary of differences between IFRS and US GAAP, and how all of these changes will affect your company.

Canada's Publicly Accountable Enterprises Strategy

Canada's Accounting Standards Board (AcSB) staff has updated the paper explaining which International Financial Reporting Standards (IFRS) are expected to apply on changeover to IFRS in 2011. (View the Publicly Accountable Enterprises Strategy.)

IFRS Canadian GAAP Comparison

Canada's Accounting Standards Board (AcSB) has issued an update to its comparison of International Financial Reporting Standards (IFRS) and Canadian accounting standards as of July 31, 2008. (View the IFRS Canadian GAAP Comparison.)

Canada - The IFRS Impact

The effects of the switch from Canadian GAAP to International Financial Reporting Standards (IFRS) are starting to sink in with the Canadian CA community, according to Resources Global Professionals’ third annual IFRS survey. In a poll of 273 CAs from public practice, government and industry, nearly nine in 10 (87%) said the greatest impact of the IFRS changeover will be in companies’ valuation of assets and liabilities. Respondents also said organizations should expect “somewhat” of an impact on share prices (46%), compensation plans (49%) and debt covenants (50%). In addition, a large percentage of CAs surveyed (87%) believe that a company’s reported financial results will change due to IFRS, while 72% think Canadian users of financial statements will prefer IFRS. (Read the article The IFRS Impact.)

Canada’s IFRS Advisory Committee — Report on Public Meeting

At its August 2008 meeting, Canada's IFRS Advisory Committee (IAC) discussed the Accounting Standards Board (AcSB) omnibus exposure drafts, Canadian Performance Reporting Board draft guidance regarding external communications for corporations transitioning to IFRS, a possible IFRS discussion group, and the IASB’s Discussion Paper “Reducing Complexity in Reporting Financial Instruments.” (View the Report on Public Meeting.)

Paul Cherry to chair Standards Advisory Council

The Trustees of the International Accounting Standards Committee (IASC) Foundation, the body that oversees the International Accounting Standards Board (IASB), announced today that Paul Cherry has been appointed as Chairman of the Standards Advisory Council for three years beginning January 1, 2009. Mr. Cherry is the Chairman of the Canadian Accounting Standards Board (AcSB), from which he will step down at the end of March 2009. In that role he has spearheaded Canadian work on IFRS convergence and adoption, which will culminate in the use of IFRS by public companies in Canada in 2011. Before joining the AcSB in 2001, Mr. Cherry served as a partner at PricewaterhouseCoopers in Canada and as Chief Accountant of the Ontario Securities Commission. (View the IASB Press Release.)

A Comparison of US GAAP and IFRS for Investment Companies

PricewaterhouseCoopers (PwC) has issued new research on Similarities and Differences: A Comparison of US GAAP and IFRS for Investment Companies 2008. The publication provides a general understanding of the key similarities and differences between International Financial Reporting Standards (IFRS) and the accounting principles generally accepted in the United States (US GAAP) as they apply specifically to investment companies. In addition, model financial statements have been prepared for a fictional investment fund illustrating the disclosure and presentation required by IFRS applicable to financial years beginning on or after January 1, 2008. (View the Illustrative IFRS financial statements 2008 - Investment funds.)

IASB issues a revised version of IFRS 1

The International Accounting Standards Board (IASB) has issued a revised version of IFRS 1 First-time Adoption of International Financial Reporting Standards. In 2007, the IASB proposed, as part of the annual improvements project, to restructure IFRS 1 to make it easier for the reader to understand and to allow it to accommodate more easily any future changes that might be necessary. The revised version is effective for entities applying IFRS for the first time for annual periods beginning on or after January 1, 2009. Earlier application is permitted. (Read the IASB Press Release.)

Helping CFOs make the Transition to IFRS

In 2011, the financial statements for all publicly accountable enterprises in Canada will be based on International Financial Reporting Standards (IFRS). CFOs need to prepare now for the changeover, if they are to adequately meet their responsibilities. The Canadian Institute of Chartered Accountants (CICA) has developed a publication, IFRS Conversions: What CFOs Need to Know and Do that provides an overview of the essential CFO role in the transition to IFRS.

Open Communications about IFRS Transition

In 2011, Canada will adopt International Financial Reporting Standards (IFRS) when Canadian Generally Accepted Accounting Principles (GAAP) for publicly-accountable enterprises migrate to IFRS. Companies need to tailor communications to stakeholders about the particular challenges that IFRS conversion presents. The Canadian Institute of Chartered Accountants (CICA) is providing guidance on how to provide useful information to investors in the period leading up to the changeover through a new publication titled: Pre-2011 Communications About IFRS Conversion.

Future of International Standards and Cooperation In Light of the Credit Crisis

On November 18, 2008, Chairman Christopher Cox of the US Securities and Exchange Commission spoke at the FEI 2008 Current Financial Reporting Issues Conference in New York. His address dealt with The Future of International Standards and Cooperation In Light of the Credit Crisis. He stressed that "In order for IFRS to fulfill the promise it holds to be a uniter of the world's capital markets and a powerful tool for investors everywhere, there are a handful of principles that are critical to its success. Every one of us here today needs to see to it that these principles are applied."

Declaration of the Summit on Financial Markets and the World Economy

Subsequent to the recent G20 meeting (including Heads of State and leaders of the World Bank, the International Monetary Fund, the United Nations and the Financial Stability Forum), the participants published a Declaration of the Summit on Financial Markets and the World Economy. The Declaration sets out actions that should be taken to strengthen the global economy and reform financial markets. The leaders agreed on a set of common principles for market reforms, with an emphasis on strengthening transparency and accountability.

IASB Welcomes Move to IFRS in North America

Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), welcomes recent actions by authorities in Canada, the United States and Mexico regarding the adoption of International Financial Reporting Standards (IFRS). (Read the IASB Press Release.)

Mexico Moves to IFRS in 2012

The Mexican Comisión Nacional Bancaria y de Valores (CNBV), together with the Mexican Accounting Standards Board (CINIF), have announced that Mexico would adopt IFRS for all listed entities from 2012. Early adoption for some entities would be permitted from 2008 subject to requirements that will be established by the CNBV.

SEC Proposes Roadmap for Transition to IFRS

The US Securities and Exchange Commission (SEC) has released its long-awaited roadmap for US public companies to make the transition to International Financial Reporting Standards (IFRS). The SEC set a longer-than-expected 90-day comment period for the proposal, which puts forth milestones that, if met, could lead to the required use of IFRS by US issuers in 2014. The SEC is also seeking comment on two alternative proposals under which US issuers that elect to use IFRS would disclose US GAAP information. (Read a commentary on the proposals or obtain the SEC Roadmap.)

Advisory Group to Consider the Global Economic Crisis

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have announced that Hans Hoogervorst, Chairman of the Netherlands Authority for the Financial Markets (AFM), the Dutch securities regulator and Harvey Goldschmid, former Commissioner of the United States Securities and Exchange Commission (SEC) have agreed to co-chair the high-level advisory group formed to consider financial reporting issues arising from the global economic crisis. (Read the IASB Press Release.)

New IFRS e-learning course in Canada

The Chartered Accountants of Canada are offering a new e-learning course aimed at helping members of the profession and the broader business community make a seamless transition to International Financial Reporting Standards (IFRS). The e-learning course is easy and convenient to use. It is available free of charge in English and French for those in Canada and Bermuda, and is divided into four modules that allow individuals to learn in their own time and at their own pace. The course takes roughly three hours to complete and is available through a dedicated IFRS website launched by the Canadian Institute of Chartered Accountants (CICA).

PwC Webcast on IFRS Conversion Process

On November 20, 2008, PricewaterhouseCoopers (PwC) IFRS specialists will discuss many aspects of an IFRS conversion, highlighting objectives, timeline, key considerations and insights. The discussion will focus on the Phase 1 preliminary study that will help companies assess a high level IFRS impact and determine a strategy for the road ahead. (Register for PwC's 11/20 Webcast on IFRS Conversion Process.)

Pakistan taking steps to comply with IFRS by 2009

The Securities and Exchange Commission of Pakistan (SECP) and the Institute of Chartered Accountants in Pakistan (ICAP) have agreed, in principle, to take urgent necessary steps to ensure full compliance with International Financial Reporting Standards (IFRS). This applies to listed companies (other than banks and financial institutions) in respect of the financial statements for the year ending December 31, 2009. (Read the President’s Communication - 1.)

European Commission adopts consolidated text of IFRS

The European Commission has adopted the consolidated text of all International Financial Reporting Standards (IFRS) in force in the European Union (EU). The consolidated version puts together all IFRS endorsed to date. It will enable stakeholders to refer to one single legal document. This is an important element of the Commission simplification program aimed at reducing the administrative burden on EU businesses. (Read the Press Release and the Consolidated Text.)

IASB Webcast on Financial Statement Presentation

In October 2008, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) jointly published a discussion paper on Financial Statement Presentation. The document is open for public comment until April 14, 2009. Stephen Cooper, a board member, and Denise Gomez, the project manager, will introduce the discussion paper at a webcast on November 13, 2008. (Registration for the webcast is available online.)

IFRS - Practical Planning Strategies and Disclosure Requirements

The Canadian Institute of Chartered Accountants (CICA) is pleased to sponsor an online webinar on November 18, 2008. This informative session will provide practical advice for developing an effective IFRS transition plan, identify strategies to focus efforts on the relevant issues and suggest available resource material. (Register online.)

Evaluating the Choices in Applying IFRS 1

Canadian publicly accountable entities should now have commenced their evaluation of the effects on their organization of adopting International Financial Reporting Standards (IFRS). A key step in that evaluation is to study IFRS 1, First-time Adoption of International Financial Reporting Standards. Application of IFRS 1 will greatly assist IFRS adoption, but it also requires evaluation of accounting policy choices. There are a number of considerations Canadian entities should take into account in applying IFRS 1. (Read Evaluating the Choices in the latest issue of CAmagazine.)

Assisting Clients in the Transition to IFRS

There are many areas where the auditor can assist clients in the transition to IFRS. Such assistance may include: IFRS training for client staff; commenting on areas where changes in accounting policy or disclosure are likely; assisting with preliminary diagnosis of the impact on financial reporting and accounting systems; providing technical advice on IFRS standards; discussing transition project scope and governance issues; and providing assurance services on internal IFRS financial statements. (Read about Assurance Issues in the latest issue of CAmagazine.)

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has issued the October 2008 issue of its Countdown IFRS newsletter. In addition to providing a snapshot of the current state of Canada's transition to IFRS, this newsletter focuses on: Credit crunch – economic slowdown driving IFRS accelerated changes; Acquisition accounting under IFRS – merger and acquisition strategy considerations; Release of iGAAP 2008 – IFRS for Canada; and An update on current IFRS events.

IASB guidance on fair value measurement

The International Accounting Standards Board (IASB) has published guidance on the application of fair value measurement when markets become inactive. The guidance includes a summary document prepared by IASB staff and the final report of the expert advisory panel established to consider the issue. It takes into consideration recent documents issued by the US Financial Accounting Standards Board (FASB) on October 10, 2008 and by the Office of the Chief Accountant of the US Securities and Exchange Commission (SEC) and FASB staff on September 30, 2008. (Read the IASB press release, IASB staff summary and the final report of the IASB Expert Advisory Panel.)

AICPA - IFRS Primer for Audit Committees

According to the AICPA, convergence of US GAAP with IFRS is happening. In addition, there is a possibility that the SEC will give US companies an option to follow IFRS rather than US GAAP, or require them to switch to IFRS, before convergence is achieved. Audit committees should anticipate this significant change and inquire of the CEO and CFO as to the readiness of the company and their implementation plan for moving to IFRS if/when required. (Visit the AICPA IFRS Resources or read the AICPA IFRS Primer for Audit Committees.)

IFRS Self Study Programme

To develop an understanding of transition issues or acquire detailed technical knowledge of International Financial Reporting Standards (IFRS), the Canadian Institute of Chartered Accountants (CICA) has arranged with the Institute of Chartered Accountants of England and Wales (ICAEW) to make their IFRS self-study programme available. The programme is self taught and is supported by learning materials consisting of a manual, 12-month access to interactive online learning and an online assessment. (Register online or take a Quick Tour.)

IOSCO Technical Committee Statement on Accounting Standards Development and Enforcement

The Technical Committee of the International Organization of Securities Commissions (IOSCO) recently discussed the important role of accounting standards in the context of the current financial crisis. In light of the importance of financial reporting standards to the proper functioning of the capital markets, IOSCO has come together as a community of authorities responsible for capital markets and accounting to reaffirm its commitment to the development and enforcement of high quality accounting standards. (Read the IOSCO Media Release.)

XBRL: Steps Toward an Implementation Plan

In May 2008, the US Securities and Exchange Commission (SEC) issued rule proposals that would require all companies applying US GAAP or IFRS to begin using XBRL within the next three years. As the proposed deadline for implementation nears, it is apparent there is a need for a greater awareness and deeper understanding about the costs and benefits XBRL offers. A new publication by PricewaterhouseCoopers (PwC) discusses what companies can do now to ensure they are prepared to implement XBRL. (Read the publication XBRL: Steps Toward an Implementation Plan.)

Mandating IFRS: Its impact on the cost of equity capital in Europe

New research commissioned by the Association of Chartered Certified Accountants (ACCA) shows that economies where equity-based financing and high standards of accounting disclosure are common, have benefited most from the adoption of International Financial Reporting Standards (IFRS). The results show that IFRS has already brought significant effects, that they are not uniform across Europe, and variations are not in the direction which some expected. The major positive effects are in those countries, such as the UK, where an equity investor-friendly environment already exists. (Visit the ACCA webpage and read ACCA Research Report No. 105.)

IASB and FASB launch consultation on proposed enhancements to the presentation of financial statements

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) have published for public comment a discussion paper on financial statement presentation. The discussion paper contains an analysis of the current issues in financial statement presentation and presents the boards’ initial thinking on how those issues could be addressed in a possible future format.

IASB - A Guide through International Financial Reporting Standards July 2008

IASB has published A Guide through International Financial Reporting Standards July 2008. The Guide provides the complete and up-to-date consolidated text, with extensive cross-references and other annotations, of International Financial Reporting Standards (IFRS), including International Accounting Standards (IAS) and IFRIC and SIC Interpretations, and IASB-issued supporting documents - illustrative examples, implementation guidance, bases for conclusions and dissenting opinions - approved by the IASB at July 1, 2008.

IFRS Transition — What Audit Committees Should Be Asking

Reprinted from the 2008-01 issue of Canadian Audit Committee Update, this article considers the audit committee's oversight of an enterprise's transition to IFRS. It notes that directors should be asking about: the changeover project itself; financial reporting impact; broad impact on the enterprise and its stakeholders; and implications for the board of directors and board committees. (Read the article on the KPMG Canada website.)

FASB Issues Exposure Drafts on Going Concern and Subsequent Events

The US Financial Accounting Standards Board (FASB) has issued two related Exposure Drafts for public comment. The documents contain two proposed FASB Statements, Going Concern and Subsequent Events, intended to improve financial reporting by incorporating accounting guidance that originated as auditing standards into the body of authoritative literature issued by the FASB while converging US generally accepted accounting principles and International Financial Reporting Standards (IFRS). (Read the FASB News Release.)

Implementation of IFRS in the UK, Italy and Ireland

The Institute of Chartered Accountants of Scotland (ICAS) has published a report on The Implementation of IFRS in the UK, Italy and Ireland. The report examines: the resultant changes in financial reporting, in terms of the additional disclosures and the impact of IFRS on profit and equity; the costs involved in implementation of IFRS; the most problematic international accounting standards for adopters; and the usefulness of the resulting IFRS information from the perspective of preparers and users.

Read the Executive Summary or the Full Report available on the ICAS website. In addition, learn about the importance of applying professional judgment when preparing or auditing IFRS-based financial reporting.

IASB Provides Update on Applying Fair Value in Inactive Markets

The International Accounting Standards Board (IASB) has provided an update on its work to consider the application of fair value when markets become inactive. According to Sir David Tweedie, Chairman of the IASB, "This press release says two things. First, that guidance within IFRS is already clear that distress sales should not be included in fair value measurement. Secondly, that recent guidance from the FASB is consistent with the findings of our own expert panel on illiquid markets." (Read the IASB Press Release.)

FASB Issues Clarifying Guidance on Determining Fair Value

The US Financial Accounting Standards Board (FASB) has issued guidance clarifying how FASB Statement No. 157, Fair Value Measurements (FAS 157), should be applied when valuing securities in markets that are not active. The guidance, released as a FASB Staff Position, provides an illustrative example that applies the objectives and framework of FAS 157 to determine the fair value of a financial asset in a market that is not active. It also reaffirms the notion of fair value as an exit price as of the measurement date. (Read more in PricewaterhouseCoopers Breaking News on significant accounting, auditing and regulatory matters.)

CESR consultation on equivalence of Indian GAAP and IFRS

The Committee of European Securities Regulators (CESR) has conducted an assessment of the program to converge existing Indian Accounting Standards with IFRS, focusing in particular on whether the program is comprehensive and capable of being completed before December 31, 2011. It has issued a Consultation Paper setting out details of its work and conclusions concerning the equivalence of Indian GAAP in accordance with a mandate from the European Commission. Respondents are invited to send their comments via CESR's website under the section Consultations. CESR expects to submit the final advice to the Commission in early November 2008.

Fair Value Accounting: Statement by Paul Cherry, Chair, Canadian Accounting Standards Board

The clarification issued this week by the US Securities and Exchange Commission's Office of the Chief Accountant and the staff of the Financial Accounting Standards Board in relation to fair value accounting requirements is consistent with Canadian accounting standards. In Canada, the Accounting Standards Board has already issued three staff commentaries to help companies apply fair value accounting requirements when dealing with this country's own liquidity crunch. These commentaries provided guidance on how to report to investors on their holdings of Asset-Backed Commercial Paper (ABCP). The first was issued almost a year ago. (View the CICA Media Release and ABCP Commentary.)

XBRL Guide on IFRS

The International Accounting Standards Committee Foundation has released its taxonomy guide for XBRL (Extensible Business Reporting Language) focusing on the XBRL version of International Financial Reporting Standards (IFRS). The guide is geared toward financial statement preparers, software developers and others with knowledge of the accounting standards. (View the XBRL guide.)

IASB position on fair value accounting

The International Accounting Standards Board (IASB) has reviewed the clarification by staff of the US Securities and Exchange Commission (SEC) and the US Financial Accounting Standards Board (FASB) on fair value accounting and considers it consistent with IAS 39 Financial Instruments: Recognition and Measurement (read the SEC Press Release). The IASB has also announced the current status of its response to the credit crisis and the next steps. It reaffirms its commitment as a standard-setter to bring transparency to investors and to clarify International Financial Reporting Standards (IFRS) to address new market developments. (Read the IASB Response to the Credit Crisis and press releases on October 2, 2008 and October 3, 2008)

US Reaction to IFRS Plan

For US GAAP, the end of an era could be in the making. In August 2008, the Securities and Exchange Commission (SEC) unveiled a proposed roadmap that begins to widen the acceptance of International Financial Reporting Standards (IFRS). The roadmap would allow 110 of the largest publicly held companies — equal to 14% of US market capitalization — to begin using IFRS voluntarily for their 2009 financial statements. It could lead to a requirement for all US public companies to begin using IFRS by 2014. (Read the Journal of Accountancy news analysis Profession Reacts to IFRS Plan.)

Clarifications on Fair Value Accounting

The current market environment makes the determination of fair value particularly challenging for preparers, auditors and users of financial information. In the United States, the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) have engaged in extensive consultations with participants in the capital markets including investors, preparers and auditors, on the application of fair value measurements. The FASB will propose additional interpretative guidance on fair value measurement under US GAAP later this week. (Read the SEC Press Release.)

Filling the GAAP to IFRS: Teaching Supplements for Canada's Accounting Academics

The Chartered Accountants of Canada are preparing a series of teaching supplements to provide Canadian academics with teaching support for the next two years, as IFRS materials are fully integrated into all accounting textbooks. The supplements highlight the impact of IFRS on each topic generally covered in undergraduate accounting courses. They are being developed with assistance from IFRS experts from Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers. (Teaching Supplement CD1 - Filling the GAAP to IFRS is available on the CICA website.)

PwC - Financial Reporting Release August 2008

PricewaterhouseCoopers (PwC) has released the August 2008 issue of Financial Reporting Release. Some of the topics covered are the future of IFRS, Canadian GAAP until the transition to IFRS, CSA views on transitioning to IFRS, IFRS for extractive and rate-regulated enterprises, Canadian GAAP for private enterprises, fair value accounting, complexity in accounting for financial instruments, not-for-profit organizations, emerging issues committee abstracts, and IASB projects in the pipeline.

Deloitte's 2008 comparison of IFRS and US GAAP

Deloitte's IFRS Global Office has published a new IFRSs and US GAAP – A Pocket Comparison as of June 30, 2008. Since the previous edition (March 2007), the IASB has issued substantially revised versions of IFRS 3 Business Combinations, IAS 1 Presentation of Financial Statements, and IAS 27 Consolidated and Separate Financial Statements. In addition, IFRS 8 Operating Segments (which replaces IAS 14 Segment Reporting) was issued in November 2006. These new and revised standards will be effective in 2009. Links to IFRS publications are available on Deloitte's Publications Page.

IASB exposure draft on retrospective application

The International Accounting Standards Board (IASB) has published for public comment an exposure draft of proposed amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards. The proposals address the retrospective application of IFRS in selected areas and are aimed at ensuring that entities applying IFRS will not face undue cost or effort in the transition process. (Read the IASB Press Release.)

AICPA IFRS Resources

The growing acceptance of International Financial Reporting Standards (IFRS) as a basis for US financial reporting represents a fundamental change for the US accounting profession. To provide guidance, the American Institute of Certified Public Accountants (AICPA) has created a dedicated website called AICPA IFRS Resources. Guidance materials include International Financial Reporting Standards (IFRS) — Questions and Answers and International Financial Reporting Standards (IFRS) — an AICPA Backgrounder . The AICPA also monitors the latest IFRS news, updates and more (see IFRS News Clips).

IFRS presentations to Canada's academics - June 2008

At the June 2008 Canadian Academic Accounting Association (CAAA) conference, the Chartered Accountants of Canada sponsored three presentations to help accounting academics prepare for International Financial Reporting Standards (IFRS). The presentations are available online as follows: (1) IFRS: Get Ready; (2) IFRS: Go Deep; (3) IFRS: Even Deeper.

IFRS - A single global accounting language

As International Financial Reporting Standards (IFRS) continue to gain acceptance around the world, more companies are inquiring about what IFRS means for them. Deloitte has made available a number of IFRS materials and resources that provide the latest information and support on IFRS for companies, schools and the finance profession. (Refer to the Deloitte IFRS Resource Library and other current publications.)

XBRL Canada to host session on interactive data, its adoption and effect on Canadian Companies

XBRL Canada will discuss recent proposals by the US Securities and Exchange Commission (SEC) for the mandatory use of “Interactive Data” or XBRL (eXtensible Business Reporting Language) during an event September 24, 2008 at the Metro Toronto Convention Centre. The full agenda and registration for this free event are on the XBRL Canada website.

FASB webcast on fair value measurements

The US Financial Accounting Standards Board (FASB) has announced an upcoming webcast on fair value measurements. The webcast is scheduled for Monday, September 29, 2008. The live webcast is offered free of charge and viewers will have the opportunity to e-mail questions to panelists during the event. It will be archived on the FASB website for access by the public. (Register for the live or archived webcast.)

IFRS: What you need to do now!

Canada's Chartered Accountants are sponsoring a webinar on October 8, 2008 at 12:30 p.m. The webinar will be led by Terry McKay, CA, Senior Manager Advisory Services, Ernst & Young. Understanding the impact of IFRS on your business is the first step towards a conversion project that works. Those who start planning early are more likely to have a smoother conversion process. This webinar will outline the steps you need to take now to avoid unpleasant surprises down the road. The webinar includes a 30 minute presentation followed by 15 minutes of Q+A. To find out more information, or to sign up, follow the registration link.

IASB and FASB update Memorandum of Understanding

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) have published an update of their Memorandum of Understanding. The update reports on the progress since 2006 and sets the goal of completing major joint projects by 2011. (Read the IASB Press Release.)

IASB and ASBJ review progress on convergence

The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) held their eighth meeting in London to accelerate convergence between Japanese generally accepted accounting principles and International Financial Reporting Standards (IFRS). (Read the IASB Press Release.)

PwC - 10 Minutes on Transitioning to IFRS

PricewaterhouseCoopers (PwC) has released a new publication called 10 Minutes on Transitioning to IFRS. It provides a high-level overview of the most important issues in IFRS transition, including how management communicates with investors post-transition; how some companies may need to change their business practices with customers and vendors; and how the transition will affect compensation. PwC emphasizes why it's important for senior executives and directors to start weighing and preparing for the implications of transition. Additional PwC publications on the transition to IFRS are also available (see Moving to IFRS.)

World Standard Setters meeting September 11-12, 2008

The International Accounting Standards Board (IASB) will hold its annual World Standard Setters meeting on September 11-12, 2008 in London. The meeting is open to the public. (View the IASB Programme and meeting materials for September 11 and September 12.)

Impact of IFRS conversion on IT systems

The change to IFRS may affect a lot more than financial statements; it may have an impact on IT systems too. If you are a CFO in a publicly accountable organization, you have hopefully begun building your international financial reporting standards conversion strategy. One thorny question you may be asking is: Will the impact on my IT systems be significant? (Read the article: A Big Deal? and the Deloitte guidance Technology Implications of IFRS Adoption for US Companies.)

AICPA issues statement on SEC roadmap to IFRS

A recently-issued public statement notes that "The Securities and Exchange Commission’s roadmap for the adoption of International Financial Reporting Standards (IFRS) marks an important stage in what the American Institute of Certified Public Accountants (AICPA) believes will be the eventual move from U.S. Generally Accepted Accounting Principles to international accounting standards for public companies." (Read the AICPA Statement.)

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has issued the August 2008 issue of the Countdown IFRS transition newsletter. This issue focuses on IFRS disclosure in Management Discussion and Analysis (MD&A) and the impact of the proposed definition of a Publicly Accountable Enterprise (PAE) on the following sectors: profit-oriented non-publicly accountable enterprises (private enterprises); not-for-profit organisations; pension plans.

IASC Foundation releases IFRS taxonomy guide

The International Accounting Standards Committee (IASC) Foundation has published IFRS Taxonomy Guide 1.00 – All you need to know about the IFRS Taxonomy as a preparer, supervisor, software developer. It is available at the IASC Foundation website.

PwC - ongoing series of IFRS webcasts

Recently, the US Securities and Exchange Commission (SEC) voted to release a proposed roadmap which may ultimately lead to the US adopting IFRS as its financial reporting language. In response, PricewaterhouseCoopers (PwC) is hosting a webcast on Thursday, September 4, 2008 called IFRS in the US: One step closer to adoption of IFRS. This is part of PwC's ongoing series of webcasts on IFRS.

SEC Proposes Roadmap for Potential Use of IFRS by US Issuers

Today, the US Securities and Exchange Commission (SEC) voted unanimously to seek public comments on a release that will include both (1) a proposed roadmap for the potential mandatory adoption of International Financial Reporting Standards (IFRS) by issuers in the US and (2) a proposed rule that would allow the optional use of IFRS by certain qualifying domestic issuers. The proposed roadmap targets potential mandatory adoption of IFRS in the US beginning in 2014, but lays out several milestones that would need to be achieved prior to the SEC mandating use of IFRS for all US issuers. The proposed rule would allow certain qualifying domestic issuers to use IFRS as early as fiscal years ending on or after December 15, 2009. (Read the SEC's Press Release, PwC's Breaking News and KPMG's Defining Issues.)

Guide to the IASB and the IASC Foundation

The IASB has prepared a quick reference guide to the organisation. The six-page printable document, IASB and the IASC Foundation: Who we are and what we do is available on the IASB website.

PWC - IFRS and US GAAP: Similarities and Differences 2008

The conversion from US GAAP to IFRS will require many technical accounting changes. A new new publication by PricewaterhouseCoopers (PWC) called IFRS and US GAAP: Similarities and Differences 2008 provides a broad understanding of the major differences between IFRS and US GAAP and identifies the impact the changes could have on individual companies.

SEC to propose an IFRS Roadmap for US issuers

The US Securities and Exchange Commission (SEC) will hold an open meeting on August 27, 2008 to consider whether to propose a Roadmap for the potential use by US issuers for purposes of their filings with the Commission of financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. As part of the Roadmap, the Commission will also consider whether to propose amendments to various rules and forms that would permit early use of IFRS by a limited number of US issuers. (Read the SEC Notice.)

Canada - Disclosing IFRS changeover plans in the MD&A

The conversion of Canadian standards to International Financial Reporting Standards (IFRS) is likely to cause significant changes in the financial reporting practices of publicly accountable entities regulated by the Canadian Securities Administrators (CSA). In Staff Notice 52-320, Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards, the staff of the CSA provides guidance on their expectations. Disclosure of changeover plans is expected for entities that at the time of issuing an interim MD&A have developed a changeover plan, but in no case should that discussion be provided later than in the annual MD&A published for the period three years before the changeover date. For most entities, this means the annual MD&A for 2008, with consideration to be given to quarterly disclosures during 2008. For additional insight, read the Deloitte Canada publication How to Monitor a Sea Change: Discussing your IFRS changeover plan in the MD&A.

IASC-IASB chronology

Deloitte has published an updated Chronology of the IASC and the IASB to reflect recent events, exposure drafts, final standards and interpretations. The chronology dates back to 1966.

IFRS planning for US companies

Deloitte has recently published International Financial Reporting Standards for US Companies: Planning for Adoption. This publication provides an overview of key IFRS considerations, includes practical steps for US executives, and addresses key questions for US companies

IASB proposes to simplify the calculation of EPS

The International Accounting Standards Board (IASB) has published for public comment proposals to simplify the calculation of earnings per share (EPS) and to eliminate differences between the methods required by International Financial Reporting Standards (IFRS) and US accounting standards to calculate EPS. The IASB invites comments on the exposure draft Simplifying Earnings per Share by December 5, 2008. (Read the IASB Press Release and visit the Project Webpage.)

IASB issues proposals under annual improvements project

The International Accounting Standards Board (IASB) has published for public comment an exposure draft of proposed amendments to eight International Financial Reporting Standards (IFRS) under its annual improvements project. Comments on the exposure draft are due by November 7, 2008. (Read the IASB Press Release and visit the Project Webpage.)

IFRS resources for accounting educators

From August 4-6, 2008, the American Accounting Association is holding its annual conference in Anaheim, California. More than 3,000 people are attending. At a session on IFRS Is Here and What to Do about It, Stephen Zeff of Rice University and Paul Pacter representing the IASB offered suggestions for introducing IFRS into university accounting curricula. They also provided a detailed List of IFRS Resources.

Update on EU 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 IFRS including standards, interpretations and amendments. There are 14 IASB pronouncements that have not yet been endorsed for use in Europe. (View the Endorsement Status Report Update - August 1, 2008.)

Corporate Reporting: Trends and Tensions in Convergence

Deloitte Touche Tohmatsu recently contributed a paper to the International Corporate Governance Network (ICGN) 2008 Yearbook on Corporate Reporting: Trends and Tensions in Convergence. The paper focuses on the evolution of accounting standards and the issues associated with convergence and adoption of International Financial Reporting Standards (IFRS).

SEC Advisory Committee Makes Recommendations to Improve Financial Reporting for Investors

The Chairman of the US Securities and Exchange Commission (SEC), Christopher Cox, has received the final report of an SEC advisory committee containing 25 recommendations to make financial information more useful and understandable to investors. (Read the SEC Press Release.)

Canada’s IFRS Advisory Committee — Report on Public Meeting

At its April 2008 meeting, Canada’s IFRS Advisory Committee (IAC) discussed related party transactions, disclosures for the first interim reports prepared in accordance with IFRS, and the depreciation of components, for enterprises transitioning to IFRS in Canada. (View the Report on Public Meeting.)

Conceptual Framework for Financial Reporting

Canada's Accounting Standards Board (AcSB) has issued an Exposure Draft “Conceptual Framework: Objective, Qualitative Characteristics and Constraints” to incorporate proposed changes to the existing IASB Framework into Canadian GAAP. Comments are requested by October 31, 2008. The IASB and FASB have also issued an Exposure Draft “Chapter 1: The Objective of Financial Reporting” and “Chapter 2: Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information” as well as a Discussion Paper on “The Reporting Entity.” Comments are due by September 29, 2008.

The Ride to Going Global

The move to International Financial Reporting Standards (IFRS) is proceeding at full throttle. In November 2007, the SEC eliminated the requirement for non-US companies to reconcile their financial statements with US GAAP as long as they use IFRS as adopted by the International Accounting Standards Board (IASB). Many observers expect that as more companies outside the US use IFRS, US companies will feel added pressure to adopt IFRS to remain competitive in an increasingly global capital marketplace. (Read the CPA Journal article The Ride to Going Global: Slow Down for the Bumps.)

SEC Roundtable on Performance of IFRS and US GAAP

The US Securities and Exchange Commission (SEC) has announced that it will host a roundtable on Monday, August 4, 2008 to analyze the performance of International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP) during the recent period of market turmoil. The roundtable will consist of two panels that will include investors, issuers, auditors and various other parties with experience in financial reporting. Additionally, representatives from the Financial Accounting Standards Board and the International Accounting Standards Board will be present as observers. (Read the SEC Press Release.)

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has issued the July 2008 issue of the Countdown IFRS transition newsletter. Among the topics covered are the Canadian Securities Administrators' release of additional guidance relating to early adoption of IFRS; the release of the IASB revised work plan and implications for Canadian companies; and how to cope with the changeover to IFRS. There is also an update on current IFRS events.

IFRIC Update – July 2008

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

IASC Foundation - Constitution Review

The Trustees of the IASC Foundation have published a discussion document that contains proposals dealt with in the first phase of the organisation's five-yearly Constitution Review. The deadline for public comment is September 20, 2008. (View the Press Release and the discussion document Review of the Constitution: Public Accountability and the Composition of the IASB - Proposals for Change.

IFRS North America 2008 Conference - presentation materials

The IFRS North America Conference was held in April 2008 at Toronto, Canada. The presentation materials from the conference, broken down by date and special interest sessions, are available online. (View the PowerPoint presentations.)

SEC Announces "21st Century Disclosure"

The US Securities and Exchange Commission (SEC) has announced an ambitious effort to examine fundamental questions about the way it acquires information from public companies, mutual funds, brokers, and other regulated entities, and the way it makes that information available to investors and the markets. The study will review all existing SEC reporting requirements, with a special focus on needless redundancy. It will also consider ways to get the best real-time distribution of financial and narrative disclosure to investors. Finally, the study will examine how best to integrate public disclosure with the SEC's proposed new post-EDGAR architecture for investor search, assembly, and comparison of data. (View the SEC Press Release.)

SEC Advisory Committee on Improvements to Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting will meet on July 11, 2008. It is slated to vote on the recommendations contained in the Draft Final Report. According to its charter, the committee will terminate on August 2, 2008. (View the Agenda for the meeting and the Project webpage.)

Canadian companies may elect early IFRS adoption

The Canadian Securities Administrators (CSA) represent Canada's provincial and territorial securities regulators. The CSA have issued staff views on possible changes to securities rules relating to Canada's transition to IFRS for publicly accountable entities in 2011. The CSA Staff Notice is No. 52-321, Early Adoption of International Financial Reporting Standards, Use of US GAAP, and Reference to IFRS-IASB.

IASB Update – June 2008

Periodically, the International Accounting Standards Board (IASB) publishes a newsletter on its activities. The IASB Update is published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future IASB meetings.

IFRS and IAS summaries at January 1, 2008

The IASB publishes standards in a series of pronouncements called International Financial Reporting Standards (IFRS). It has also adopted the body of standards issued by the Board of the International Accounting Standards Committee (IASC). Those pronouncements continue to be designated "International Accounting Standards" (IAS). Summaries of IFRS, IAS and related Interpretations at January 1, 2008 are available at the IASB website.

IASC Foundation publishes IFRS Taxonomy 2008

The IASC Foundation has announced the release of the IFRS Taxonomy 2008. It is a complete translation of IFRS as published in the IFRS Bound Volume 2008 into XBRL, used to communicate information between businesses. XBRL will provide users of the IFRS Taxonomy 2008 with easier filing, access to and comparison of financial data. In accordance with the XBRL International policy the IFRS Taxonomy 2008 is freely available on the IFRS XBRL Website. (Read the Press Release.)

IASB work plan updated

The IASB has published an updated version of its Work Plan as approved during the June 2008 Board meeting. The updated plan shows the projected timetable for the publication of due process documents and final standards. (View the IASB Work Plan.)

SEC roundtable on fair value accounting standards

The United States Securities and Exchange Commission (SEC) has announced that it will host a roundtable on July 9, 2008, in Washington DC to facilitate an open discussion of the benefits and potential challenges associated with existing fair value accounting and auditing standards. The panels will include investors, preparers, auditors, regulators and other interested parties. Additionally, representatives from the Financial Accounting Standards Board, International Accounting Standards Board and Public Company Accounting Oversight Board will be present as observers. (Read the SEC Press Release.)

Securities authorities to interact with IASCF

The world’s securities authorities — represented by IOSCO, as well as the European Commission, the Japan Financial Services Agency and the U.S. Securities and Exchange Commission, the securities authorities in the world’s three largest capital markets — welcome the upcoming roundtable organized by the IASCF regarding the creation of an IASCF Monitoring Group. The IASCF is the private foundation that provides public interest oversight to the International Accounting Standards Board (IASB), which promulgates IFRS. (Read the SEC Press Release.)

Update on EU 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 IFRS including standards, interpretations and amendments. (View the Endorsement Status Report Update - June 19, 2008.)

High-Quality Global Accounting Standards: Issues and Implications for US Financial Reporting

As an initial step towards the creation of a national transition plan, the US Financial Accounting Foundation (FAF) and Financial Accounting Standards Board (FASB) are holding a forum, High-Quality Global Accounting Standards: Issues and Implications for US Financial Reporting, on June 16, 2008 in New York. The goals of the forum are two-fold: (1) to open the dialogue with constituents about whether and how to move the US financial reporting system to IFRS, and (2) to define the next steps in the process.

FASB mid-year update - live webcast

The US Financial Accounting Standards Board (FASB) has announced that it will live webcast a mid-year FASB update on Monday, June 23, 2008. The webcast will include a discussion of recent activities impacting joint FASB/IASB projects. Viewers will have an opportunity to email questions to panelists during the event. The FASB will archive the webcast for access by the public. To register, visit the FASB website.

SEC hosts roundtable on Interactive Data

The US Securities and Exchange Commission is hosting an International Roundtable on Interactive Data for Public Financial Reporting on June 10, 2008. The Roundtable follows the issuance on May 30, 2008, of a Proposed Rule on Interactive Data to Improve Financial Reporting. (Read the SEC Press Release.)

FEI establishes Corporate Roundtable on International Financial Reporting

Financial Executives International (FEI) has announced the formation of a new national coalition, the Corporate Roundtable on International Financial Reporting (CRIFR). It will provide a forum for companies of all sizes to discuss business issues related to the promulgation, implementation and convergence of International Financial Reporting Standards (IFRS) by US companies. (Read the FEI Press Release.)

IFRS 2008 on CD-ROM

The 2008 IFRS CD-ROM is now available from the IASC Foundation. There are discounts for academics and students. The CD includes all IFRS, IAS, and IFRIC and SIC Interpretations approved at January 2008. It also includes the latest IASB Exposure Drafts, IFRIC draft Interpretations and Discussion Papers issued up to March 31, 2008.

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has published the June 2008 issue of the Countdown IFRS transition newsletter. It looks at disclosures about the expected effects of first-time adoption of IFRS, tax considerations in adopting IFRS, and the impact on the financial institutions sector. There is also an update on current IFRS events. (Read past issues of Countdown at Deloitte Canada.)

PwC - IFRS News June 2008

This PricewaterhouseCoopers (PwC) monthly report explores amendments to IFRS 1 and IAS 27; provides practical guidance on financial reporting for oil & gas and utilities companies; reviews conceptual framework consultations; provides a country focus on Chile; and includes a special supplement covering the IASB's improvements to IFRS 2008. (Read PwC IFRS News - June 2008.)

KPMG - Converting to IFRS: Accounting for Income Tax

The Canadian Accounting Standards Board’s recently released omnibus exposure draft "Adopting IFRS in Canada" is a significant milestone in the move to incorporate the International Financial Reporting Standards (IFRS) into the CICA Accounting Handbook. While IFRS is similar to Canadian GAAP in many respects, there are numerous measurement and recognition differences. As IFRS will impact companies’ reported pre-tax profits, tax professionals need to understand these differences — both on adopting IFRS and on an ongoing basis — to determine the appropriate tax treatment on a company’s tax return and tax provision calculation. (For more information, see KPMG "Converting to IFRS - Get Ready for Revised Accounting for Income Tax Standard.")

Canada - Time to get moving

According to a recent CICA survey, the vast majority of Canadian publicly accountable enterprises are closer to the starting gate than to the finish line when it comes to preparing for the transition to International Financial Reporting Standards (IFRS). The survey was conducted in March 2008 with 550 senior Canadian executives who are chartered accountants, almost 300 of whom must report using IFRS by 2011. Only 8% of those executives indicate they have begun the conversion process while 72% have not yet reached the stage of assessing the impact of IFRS on their operations. (Read the article "Time to get moving.")

Statistical database on international financial reporting

Deloitte has updated the Database of Statistics that provides clear evidence of the globalisation of the world's capital markets and of the need for global financial reporting standards. The database shows that 1,058 companies from 52 jurisdictions were registered with the US SEC at December 31, 2007. (View the Alphabetical List of Companies.)

US and Japan discuss global convergence

Representatives of the US Financial Accounting Standards Board (FASB) and the Accounting Standards Board of Japan (ASBJ) recently met in Tokyo for a joint meeting to discuss global convergence. Led by Robert H. Herz, Chairman of the FASB, and Ikuo Nishikawa, Chairman of the ASBJ, the meeting was the fifth in a series of discussions between FASB and ASBJ designed to enhance dialogue between the two Boards in their shared pursuit of global convergence of accounting standards. (Read the ASBJ Press Release.)

IASB and FASB seek views on conceptual framework

The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) have published consultative documents that seek public comment on two of the eight phases of their joint project to develop an improved conceptual framework. The first document is an exposure draft of chapters 1 and 2 of the framework. The second document sets out the preliminary views on the reporting entity concept and related issues. The IASB and the FASB invite comments on both documents by September 29, 2008. (Read the Press Release.)

FEI - Financial Reporting Portal

News highlights from the International Accounting Standards Board, FASB and SEC are available on this "fei financial reporting blog" from the Financial Executives International. The site compiles hot topics from the Web’s largest business and accounting publications and organizations. Look for continuing coverage of fair value reporting and international convergence.

IASC Foundation – INSIGHT

INSIGHT is a quarterly journal from the International Accounting Standards Board (IASB) and IASC Foundation. It explores, in non-technical language, some of the “bigger picture” themes and concepts of IFRS. (Read the current issue – Q1 and Q2 2008.)

IASC Foundation - Annual Report 2007

The IASC Foundation's Annual Report 2007 (63 pages) is now available. The annual report includes an overview of the Trustee's oversight activities for 2007, as well as reports of the Chairman of the IASC Foundation Trustees, the IASB Chairman and independent auditors.

IASB Web presentation on Financial Instruments - Reducing Complexity

On June 10, 2008 John Smith, a member of the IASB, and Gavin Francis, Director Capital Markets, will give a live Web presentation on the Discussion Paper Financial Instruments Reducing Complexity. The Discussion Paper was published in March 2008 and the comment period ends on September 19, 2008. To register for the Web presentation, visit the IASB website.

IASB concludes first annual improvements project

The International Accounting Standards Board (IASB) has issued Improvements to IFRS - a collection of amendments to International Financial Reporting Standards (IFRS). These amendments are the result of conclusions the Board reached on proposals made in its annual improvements project. The IASB decided to initiate an annual improvements project in 2007 as a method of making necessary, but non-urgent, amendments to IFRS that will not be included as part of another major project. (Read the IASB Press Release.)

Deloitte (US) - IFRS Insights

Deloitte & Touche LLP (United States) has launched a new publication, IFRS Insights. The newsletter responds to the growing need among US companies for current information on IFRS. It provides news on the latest developments on IFRS, practical suggestions for companies addressing IFRS, updates on the regulatory environment, and references to relevant tools and resources.

AICPA launches IFRS.com website

The American Institute of Certified Public Accountants (AICPA) has announced the introduction of IFRS.com, a new Web site developed in partnership with its marketing and technology subsidiary CPA2Biz to help members and financial professionals learn about and stay informed on International Financial Reporting Standards (IFRS). (Read the AICPA Press Release.)

Deloitte’s IFRS University Consortium

Deloitte has announced that it is forming an IFRS University Consortium, through which it will contribute its time, experience and resources as an investment in education to help bring IFRS curricula into college classrooms. Through the Consortium, Deloitte is contributing resources to Ohio State and Virginia Tech universities to assist those schools in developing IFRS curricula. The contributions include drafting course materials such as classroom guides and case studies and providing Deloitte professionals as lecturers. The classroom guides and course materials will be made available to other interested universities. Ohio State and Virginia Tech will discuss their IFRS course materials at the American Accounting Association's Annual Meeting taking place August 3-6 in Anaheim, California.

Canada - Don't Stress Over IFRS!

The recent release of Canada's Accounting Standards Board Omnibus Exposure Draft is an opportunity to review IFRS, identify the high priority issues and begin to plan for transition. And while the omnibus draft runs to more than 2,400 pages, help is available from the Chartered Accountants of Canada. (Read the article Don't stress over the introduction of IFRS.)

IFRSs — A Done Deal!

Canada's Accounting Standards Board (AcSB) staff has written a follow-up article on the AcSB’s omnibus Exposure Draft, “Adopting IFRSs in Canada.” It clarifies who is affected by the move to IFRSs, highlights the importance of preparing now, rather than later, and explains why becoming familiar with IFRSs may not be as difficult as some might think. (Read the article on
IFRSs — A Done Deal!)

SEC Advisory Committee on Improvements to Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting met on May 2, 2008. At the meeting, the advisory committee received the interim reports of four subcommittees: Report of the Substantive Complexity Subcommittee, Report of the Standards-Setting Subcommittee, Report of the Audit Process and Compliance Subcommittee and the Report of the Delivering Financial Information Subcommittee. (View the Agenda for the meeting and the Project webpage.)

PWC - IFRS Pocket Guide 2008

PricewaterhouseCoopers (PWC) recently issued IFRS Pocket Guide 2008. The guide provides a summary of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) published up to March 2008. It does not address most disclosure requirements. Guidance on disclosure is provided in PwC’s IFRS Disclosure Checklist.

Update on IFRS – North America Conference

A two-day conference was recently held in Toronto to focus on the world-wide migration to International Financial Reporting Standards (IFRS). More than 750 people registered for the gathering. The IFRS – North America Conference was a joint presentation by The International Accounting Standards Committee (IASC) Foundation and The Canadian Institute of Chartered Accountants (CICA). The significant international event brought Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB) and other members of the IASB to Canada. (View video clips and photos of the conference.)

Canadian Securities Administrators address IFRS disclosure requirements

The Canadian Securities Administrators (CSA) have issued a staff notice addressing IFRS pre-adoption disclosure requirements for Canadian reporting issuers. CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to IFRS marks another significant step in Canada’s transition. The CSA is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets.

AICPA Issues Exposure Draft on CPA Exam Content

The American Institute of Certified Public Accountants (AICPA) has released an exposure draft for public comment outlining proposed content updates for the CPA exam. It increases emphasis on ethics and provides more in-depth descriptions of the skills necessary for entry-level CPAs. It also proposes including International Financial Reporting Standards (IFRS) on the exam for the first time. (Read the AICPA News Release, Announcement Letter and Exposure Draft.)

IFRS: Practical Implementation Guide

Wiley has released the second edition of IFRS: Practical Implementation Guide and Workbook. The publication is a quick reference guide on IFRS/IAS that includes easy-to-understand outlines of IFRS/IAS standards, practical insights, case studies with solutions, illustrations and multiple-choice questions with solutions. The book greatly facilitates understanding of the practical implementation issues involved in applying these complex "principles-based" standards. Instructors may request an evaluation copy.

IFRS readiness in Canada

The vast majority of Canada’s top financial executives don’t believe their staff is prepared for the 2011 conversion to International Financial Reporting Standards, according to a new survey co-developed by The Canadian Financial Executives Research Foundation and sponsor Ernst & Young. The survey, which is the second in a week to come to that conclusion (see “Few ready for IFRS changeover,” notes that manufacturing, retail and distribution industries lag furthest behind in the conversion process. (Read the web article IFRS conversion still far off, say C-suite executives or the IFRS Readiness in Canada– Executive Research Report.

Canada - Financial institutions may not early-adopt IFRS

The Canadian Securities Administrators have invited comment on whether to permit publicly accountable Canadian enterprises to adopt IFRS starting in 2009 which is two years earlier than required by the Canadian Accounting Standards Board. Nonetheless, the Canadian Office of the Superintendent of Financial Institutions (OSFI) has issued a notice to all federally regulated financial institutions on the Adoption of International Financial Reporting Standards. The notice instructs them not to adopt IFRS early, mainly for regulatory comparability reasons.

Putting IFRS in Motion

For many organizations, implementing IFRS may be a complex process that goes well beyond a simple technical exercise for the finance or accounting function. Other business areas such as human resources, investor relations, business development and IT departments will likely be involved in the conversion plan. Companies that have already implemented IFRS know that the new standards place a sizable responsibility on management to be able to communicate effectively to the market in the new language. PricewaterhouseCoopers (PWC) addresses key considerations for those moving toward implementation. (Visit the PWC IFRS Canada website or read the publication Putting IFRS in Motion: International Financial Reporting Standards and their impact on Canadian public companies.)

Attitudes towards Fair Value and Other Measurement Concepts

The Accounting Standards Committee of Germany (ASCG) has published a comprehensive survey on Attitudes towards Fair Value and Other Measurement Concepts. According to the ASCG, recent developments in the context of IFRS demonstrate the ever growing importance of fair value measurement. Also, the subprime crisis shows that the advantages and disadvantages of fair value measurement are viewed differently across users, preparers and standard-setters.

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has released a Special Edition of the Countdown IFRS transition newsletter. It presents comments from the chair of the Canadian Accounting Standards Board (AcSB); information about AcSB's new omnibus exposure draft Adopting IFRSs in Canada; an interview with Ian Hague of the AcSB staff regarding the transition to IFRS; and IFRS events. In addition, Deloitte Canada has released the April 2008 issue of their Countdown newsletter. This issue covers (a) the proposed definition of Publicly Accountable Enterprises (PAEs) in order to help entities determine whether they are "in or out" of IFRS; (b) commentary on certain legal implications to enterprises transitioning to IFRS; and an update on current IFRS events. (Read the Countdown Special Edition or the Countdown - April 2008.)

KPMG US establishes IFRS Institute

KPMG in the United States has established an IFRS Institute to raise awareness and address the information needs of companies, investors, academics and others who may be affected by a transition of US companies to International Financial Reporting Standards (IFRS). The Institute's first webcast is scheduled for May 1, 2008. For more information or to register for the webcast, visit the KPMG IFRS Institute website.

Sir David Tweedie addresses the Empire Club of Canada

On April 25, 2008, Sir David Tweedie, Chairman of the IASB, addressed the Empire Club of Canada in Toronto. He spoke about the credit crisis, the possibility of a Global Standard, the Memorandum of Understanding and the IASB-FASB work program, a principles-based approach going forward, and the future for IFRS. Read the presentation online at the IASB website or download the Speech.

IFRSs in Your Pocket

Deloitte has published the 2008 edition of IFRSs In Your Pocket. The 112 page guide includes information about: IASB structure and contact details; IASB due process; use of IFRS around the world, including updates on Europe, Asia, US and Canada; summaries of each IASB Standard (to IFRS 3 and the amended IAS 27) and Interpretation (to IFRIC 14), as well as the Framework and the Preface to IFRS; background and current status on current IASB projects; IASC and IASB chronology; and an update on IFRS-US GAAP convergence.

Adoption of IFRS by UK-listed Companies

In a recent interview-based survey, BDO Stoy Hayward examined the experiences of UK-listed companies in making the transition from UK GAAP to International Financial Reporting Standards (IFRS). It sought to identify the lessons learned and to share those lessons with companies currently making, or about to make, the transition. (Visit the BDO website or read the survey on Attitudes to IFRS.)

Canada - Very few ready for changeover to IFRS

A survey by the Chartered Accountants of Canada suggests many companies are closer to the starting gate rather than the finish line when it comes to preparing for the country’s transition to International Financial Reporting Standards (IFRS). (View the Media Release.)

Canada - Special IFRS Information Feature

Recently, a Special IFRS Information Feature was published in the Toronto Globe and Mail. Sponsored by the CA profession, the Feature focuses on Canada's transition to International Financial Reporting Standards. (View the IFRS Information Feature.)

Deloitte Australia - Insights Podcast on 'IFRS experiment'

Deloitte (Australia) has released a new Insights Podcast discussing IFRS-related issues. In this podcast, Bruce Porter, leader of Deloitte's Accounting Technical Group in Australia and member of the AASB, talks with Stig Enevoldsen, Chairman of the Technical Expert Group of the European Financial Reporting Advisory Group (EFRAG) and a partner of the Deloitte practice in Denmark, about the experience with IFRS in Europe and Australia and the key IFRS challenges moving forward. (Access the Deloitte Australia Insights Podcast.)

Japan accelerates convergence with IFRS

The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have held their second meeting in Tokyo since the announcement of the initiative to accelerate convergence between Japanese GAAP and IFRS, known as the "Tokyo Agreement," in August 2007. This was the seventh meeting between the two boards. (View the IASB Press Release.)

CESR advice to the European Commission on Chinese, Japanese and US GAAP

The Committee of European Securities Regulators (CESR) has published its advice to the European Commission on the equivalence of Chinese, Japanese and US GAAP. CESR recommends the Commission find US GAAP equivalent to IFRS for use on EU markets. It also recommends the Commission consider Japanese GAAP equivalent, unless there is no adequate evidence of the Accounting Standards Board of Japan (ASBJ) achieving to timetable the objectives set out in the Tokyo Agreement. Finally, it recommends the Commission postpone a final decision on Chinese GAAP until there is more information on the application of Chinese accounting standards by Chinese issuers. CESR points out that the first complete reporting period under the new Chinese standards will be 2007. (View the Press Release or CESR’s Advice.)

IASC Foundation publishes IFRS Taxonomy 2008

The IASC Foundation’s XBRL Team has announced the release of the near final version of the IFRS Taxonomy 2008. The taxonomy is a complete translation of IFRS as published in the IFRS Bound Volume 2008 into XBRL and is published in the same languages as the IFRS Bound Volume 2008 (View IASB Press Release or visit the IFRS Taxonomy 2008 project webpage.)

Adopting IFRS in Canada - Omnibus Exposure Draft

Canada’s Accounting Standards Board (AcSB) has issued an omnibus Exposure Draft proposing to incorporate International Financial Reporting Standards (IFRS) into the CICA Handbook. IFRS would serve as a replacement for current Canadian GAAP for most publicly accountable enterprises effective for fiscal years beginning on or after January 1, 2011. The comment deadline is July 31, 2008. (View the Exposure Draft.)

Canada’s IFRS Advisory Committee — Report on Public Meeting

At its January 2008 meeting, Canada’s IFRS Advisory Committee (IAC) discussed possible amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards, to be presented to the IASB for consideration at its March 2008 meeting. (View the Report on Public Meeting).

“Worldwide Adoption of International Financial Reporting Standards (IFRS): Why IFRS? Why now? And what does it mean to you?”

On Friday, April 25, 2008, Sir David Tweedie, Chairman, International Accounting Standards Board will share his perspective on the global trend toward IFRS and what it will mean to Canada. He will discuss what Canadian business leaders can learn from the transition challenges encountered in the EU and around the world. The Fairmont Royal York Hotel in Toronto is hosting the event which is sponsored by Canada’s Chartered Accountants and the Empire Club of Canada.

IFRS Conference North America - April 24-25, 2008

The IFRS – North America Conference is a joint presentation by The International Accounting Standards Committee (IASC) Foundation and The Canadian Institute of Chartered Accountants (CICA). It is a significant international event being held in Toronto, Canada, bringing Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), and other members of the IASB to North America. Other speakers include senior representatives from the Canadian Accounting Standards Board (AcSB), the US Financial Accounting Standards Board (FASB), regulators from Canada and the United States, and international financial reporting experts. For complete conference details and to register on-line, go to the conference-exclusive website (www.cpd.cica.ca/IFRSNA).

IFRS: on your mark, set, go!

Generally accepted accounting principles (GAAP), an accounting regime that has served Canadian companies and investors well for 35 years, will disappear on January 1, 2011. International Financial Reporting Standards (IFRS) will take its place. Almost everyone says it is the biggest change in Canadian accounting since GAAP itself became the national standard in 1972. The transition to a single, international accounting language may be rife with challenges but it will deliver key benefits (Read the article "Global Standards.")

Putting IFRS in Motion - PricewaterhouseCoopers Canada

Implementing International Financial Reporting Standards (IFRS) can be a complicated and daunting task. To stay current on Canadian accounting developments and industry-specific issues, PricewaterhouseCoopers has launched an IFRS microsite www.pwcifrs.ca Visit the site for ideas on how to get started and how to prepare for conversion to IFRS.

Countdown - Deloitte Canada’s IFRS transition newsletter

The second issue of Countdown, Deloitte Canada’s IFRS transition newsletter, deals with the initial stages of IFRS implementation to help Canadian companies determine their priorities. Articles cover the transition journey: where are we now?; IFRS implementation planning; conversion activities; conference activities (including an April 14, 2008 webcast on IFRS in Canada); and IFRS impacts beyond financial reporting. Additional information is available on Deloitte's Canada Page.

IASB Update and IFRIC Update – March 2008

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.

IASB paper on complexity in reporting financial instruments

The IASB has published for public comment a discussion paper Reducing Complexity in Reporting Financial Instruments. The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret and apply, and constituents have urged the IASB to develop standards that are principle-based and less complex. (View the Press Release, Discussion Paper or IASB webpage to provide comments.)

SEC Advisory Committee on Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting met on March 13-14, 2008 in San Francisco. It discussed the proposals published on February 14, 2008 as part of the Progress Report to the SEC. The discussion focused on restatements, professional judgment and XBRL. (View the Agenda for the meeting and the Project webpage.)

IASC Foundation XBRL Update

The IASC Foundation has published the XBRL Update newsletter for March 2008. It provides information on the XBRL-enablement of IFRS around the world including Belgium, Europe, India, Ireland, Israel, Japan, Singapore and United States. To subscribe to the newsletter, visit the IASCF XBRL webpages.