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.)