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.)