Canada – Evolution of Accounting Standards

As the end of the first decade of the new millennium draws to a close, it is time to review the current status of standard-setting activities in Canada, ponder the future and reflect on the past. A special edition of FYI Accounting Standards, a periodic newsletter issued by staff of the Canadian Accounting Standards Board (AcSB), describes the implementation of the new strategic plan for publicly-accountable enterprises, private enterprises and not-for-profit organizations.

The FYI newsletter explains the changes in the accounting standards applicable to each type of reporting entity by listing those amendments to the CICA Handbook-Accounting that took effect in 2009 or that have been issued but are not yet effective. It also notes that the AcSB expects to include International Financial Reporting Standards (IFRS) in the Handbook early in 2010. In that regard, it lists amendments to IFRS that are effective for 2009, issued but not yet effective, and expected to be issued in 2010.

Migrating to IFRS will mean significant changes to both the accounting standards and the due process for developing future standards. Lest we forget, the standard-setting processes in Canada have evolved considerably over the years (as explained in CAmagazine articles spanning the period from 1976 to 1992). The evolution continues…

IASB - Global convergence of IFRS

The goal of the IASC Foundation and the International Accounting Standards Board (IASB) is to develop, in the public interest, a single set of high quality global accounting standards. In pursuit of this goal, the IASB works in close cooperation with stakeholders around the world, including investors, national standard-setters, regulators, auditors, academics and others who have an interest in the development of high quality global standards. Progress toward this goal has been steady. Since 2001 more than 100 countries require or permit the use of International Financial Reporting Standards (IFRS), while the remaining major economies have established timelines for convergence with, or adoption of, IFRS. (Visit the IASB website for the current status of global convergence along with IFRS adoption and use around the world.)

Canada – Real-life conversations with companies preparing for IFRS

The Chartered Accountants of Canada have developed a new podcast series From the Trenches which features conversations with adopters of International Financial Reporting Standards (IFRS). Episode 1 provides insights from Marsulex Inc., a medium-sized company whose IFRS transition plan focuses heavily on Property, Plant and Equipment.

Canada – IFRS: Get to the Point

To assist small and mid-sized companies during their transition to International Financial Reporting Standards (IFRS), the Chartered Accountants of Canada have developed IFRS – Get to the Point, a series of audio presentations with slides that outline IFRS transition steps and a transition workplan. Selected resources are also provided to assist in implementing the key transition steps.

Canada – Financial Reporting Commentary on IFRS-based Interim Financial Statements

Canada’s Accounting Standards Board (AcSB) staff has issued a Financial Reporting Commentary on Interim Financial Statements in the Year of Adoption of International Financial Reporting Standards (IFRS). The first time that most publicly-accountable enterprises will provide external financial information using IFRS will be in their interim financial reports for the year of adoption of IFRS. This commentary reviews a few of the questions that might arise regarding presentation of interim financial statements in those reports.

Canada - IFRS Discussion Group Webcast

An archive of the audio webcast of the Canadian IFRS Discussion Group (IDG) first meeting on November 25, 2009 is now available. For a detailed list of the topics discussed, refer to the Meeting Agenda on Canada’s Accounting Standards Board (AcSB) website.

Deloitte - IFRS resources for 2009 year-ends

The 2009 versions of three mainstay Deloitte IFRS publications have been released:

• Deloitte's IFRS Illustrative Financial Statements for 2009. The model financial statements are intended to illustrate the presentation and disclosure requirements of IFRS.
• Deloitte's IFRS Presentation and Disclosure Checklist for 2009. The checklist is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item.
• Deloitte's IFRS Compliance Questionnaire for 2009. This questionnaire summarizes recognition and measurement requirements in IFRS issued on or before June 30, 2009 and may be used to assist in considering compliance with those pronouncements.

 

IASB - IASC Foundation issues 2010 XBRL Taxonomies

On December 9, 2009, the IASC Foundation published The IFRS Taxonomy 2010 Architecture Draft for public comment. It also published a project summary and feedback statement on Architectural Improvements to the IFRS Taxonomy. The feedback statement summarizes the architectural improvements that will be implemented in the next release of the IFRS Taxonomy in 2010 as a result of consultation conducted in July 2009. The IFRS Taxonomy 2010 Architecture Draft is the proposed architecture for both the IFRS and the IFRS for Small and Medium-sized Entities (SMEs) Taxonomies. (Read XBRL Update – December 2009.)

US - Getting to IFRS: Those who have been there have plenty of advice

When asked for their advice on how companies should be preparing for the possibility of mandated IFRS adoption in the United States, the three international financial executives kept returning to a few common themes: start now, treat it as an opportunity and make sure your entire organization is invested in the change. The executives made their remarks at the "Preparers' Perspectives" panel at the AICPA/IASC Foundation Conference on International Financial Reporting Standards (IFRS) held in New York City. (Read the article Getting to IFRS: Those Who Have Been There Have Plenty of Advice at IFRS.com)

Japan allows voluntary IFRS adoption

Japan's Financial Services Authority put pressure on the United States to adopt International Financial Reporting Standards (IFRS) after saying it would allow voluntary domestic use of the standards. Japan had been the biggest country after the US to hold out on adopting the standards. "The FSA's decision to permit domestic use of IFRS represents a first step towards a mandatory use of IFRS in Japan, and is an important milestone on the path towards global standards," said International Accounting Standards Board (IASB) Chairman Sir David Tweedie in a statement. (Read the article Japan Allows Voluntary IFRS Adoption at WebCPA.)

India Inc wary of convergence with IFRS

Making clear its commitment to converge Indian accounting norms with International Financial Reporting Standards (IFRS) by 2011, the government recently said all concerns of the industry would be addressed before convergence takes place. The industry fears that there is not enough preparedness in terms of training as far as IFRS is concerned. The Institute of Chartered Accountants of India has still not legally notified the syllabus containing IFRS and the tax implications of the convergence are still not known. (Read the article India Inc wary of convergence with IFRS at Indian express.com)

EU - CESR chairman says review of IASB governance is needed

Eddy Wymeersch, chairman of the Committee of European Securities Regulators (CESR), recently told the European Parliament's economic and monetary affairs committee that an assessment of the governance of the International Accounting Standards Board (IASB) is needed. He raised questions about the accountability of the accounting standards-setter. (Read the article EU Regulator Calls For Accounting Overhaul at The New York Times/Reuters online.)

UK - EU delays adoption of accounting rule changes

A major overhaul of accounting rules for financial instruments came into force in much of the world recently, but the European Commission decided to postpone adoption of the rules. Analysts said the changes would disproportionately hit some European banks. Other banks in Europe are upset with the decision because they are concerned they will be at a disadvantage compared with their international counterparts. (Read the article on EU delays adoption of accounting rule changes at Financial Times online.)

US - IFRS aims to level playing field but causes some concerns

The possible adoption of International Financial Reporting Standards (IFRS) by the United States is meant to level the global playing field and make it easier to compare financial statements of companies around the world. However, critics and concerned parties say that the benefits of the global accounting standards would vary considerably among different companies in the United States. (Read the article called IFRS: Jekyll or Hyde? at CFO.com.)

US – Will convergence be enough?

If efforts to merge International Financial Reporting Standards (IFRS) are successful, the idea of United States companies having to switch standards may become a non-issue. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are trying to complete their convergence projects in 2011. (Read the article on Convergence vs. Conversion at CFO Magazine online.)

Canada - Build Your IFRS Learning Path

The Canadian Institute of Chartered Accountants (CICA) has developed an IFRS Learning Path Tool to assist interested persons in self-assessing their learning needs and developing their own individual learning path. Simply answer a short five-question survey and the tool will provide the education and training options. The resources are categorized to help navigate the wide range of IFRS learning opportunities available from the CICA, the Provincial Institutes and the Québec Ordre.

IASC Foundation / IASB website refresh

The IASC Foundation / IASB website has been redesigned. ‘Topical’ and ‘Quick links’ sections on the homepage provide short-cuts to sections of the website that receive the greatest amount of traffic. Also, the search facility has been upgraded to provide greater flexibility when searching for documents. (Read the IASB Press Release.)

Canada - PwC IFRS News, November 2009

PricewaterhouseCoopers (PwC) has issued its IFRS News for November 2009. This monthly publication provides IASB technical updates and PwC insights into the impact of International Financial Reporting Standards (IFRS). (To learn more, visit the PwC IFRS Canada website.)

UK – New ICAEW journal, By All Accounts

The Financial Reporting Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) has published the first edition of its new journal By All Accounts. The theme of this issue (dated January 2010) is IFRS for All? Financial reporting by entities of every shape and size is at a crossroads. Three articles in this issue focus on the IFRS for SMEs. Others deal with the following issues: the politics of accounting, directors' duties under the law, IFRS in transition, writing 'the front half' of the annual report, and IFRS in central government. (By All Accounts is copyright by the ICAEW and is posted on IAS Plus with their kind permission.)

Canada - Top 20 things to do before 2010

Deloitte Canada has developed a checklist covering the 20 things to do before 2010 so that publicly-accountable enterprises can keep their conversion to International Financial Reporting Standards (IFRS) on track for 2011. This checklist is designed to help a company complete its preparation before 2010 for a seamless conversion. It is also intended to help companies:

• Save money in the long run by investing the time and resources now, rather than completing the conversion on a rush basis with limiting options; 
• Prioritize actions to be included in year-end progress reports required in management's discussion and analysis (MD&A) for public companies in the fourth quarter of 2009;
• Prevent or minimize known difficulties that are commonly encountered in practice by Canadian entities;
• Motivate immediate action by emphasizing that certain tasks cannot wait until 2011.

EU - Deloitte Newsletter on IFRS 9 Financial Instruments

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IFRS 9 Financial Instruments. The IASB issued IFRS 9 on November 12, 2009 as the first step in its project to replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces new requirements for classifying and measuring financial assets. Those requirements must be applied starting January 1, 2013, with earlier adoption permitted including for 2009. The IASB intends to expand IFRS 9 during 2010 to add new requirements for classifying and measuring financial liabilities, derecognition of financial instruments, impairment and hedge accounting. By the end of 2010, IFRS 9 will be a complete replacement for IAS 39 – mandatory for 2013 and optional in earlier years. This newsletter explains the requirements of IFRS 9 in detail, compares IFRS 9 and IAS 39, and analyses the potential impact of a move to the new standard.

Canada - KPMG Webcast on IFRS Conversion

KPMG will host a Webcast on IFRS Conversion: The impact of IFRS on systems and processes: what you need to know on December 10, 2009 at 11:00 AM ET. The webcast will assist companies in preparing their systems and processes for IFRS and dual reporting. Addressing the issue sooner rather than later can help save time, money and frustration in the long run. This webcast will be available for viewing online at the KPMG website starting December 16, 2009. (Register for this webcast online.)

Canada - CICA webinar on IFRS and the Board / Audit Committee

The Canadian Institute of Chartered Accountants (CICA) will host a  webinar on December 8th, 2009 at 12:30 PM ET. The webinar will provide insight into the scope and nature of Board and Audit Committee members' involvement in the transition to International Financial Reporting Standards (IFRS). The Board of Directors and Audit Committee members have a critical oversight role in ensuring organizations are effectively managing their changeover to IFRS, including the related risks and controls. Webinar participants will gain an understanding of what the Audit Committee should expect from management during the IFRS transition. This webinar will cover the IFRS disclosures and preparations that companies should be making, including those disclosures outlined in CSA Staff Notice 52-320, Disclosure of Expected Changes in Accounting Policies related to Changeover to International Financial Reporting Standards. (For more information and to register, visit the Directors Source Webinar Series webpage.)

EU - Updated EFRAG endorsement report

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement under the EU Accounting Regulation of each IFRS, including standards, interpretations and amendments. The report presents the expected timing of future steps in the process of endorsing the pronouncements of the International Accounting Standards Board (IASB). It also reflects EFRAG's draft endorsement advice on IFRS 9 Financial Instruments: Classification and Measurement and its endorsement advice letter on the Amendment to IAS 32: Classification of Rights Issues. (Read the latest EFRAG Endorsement Status Report.)

US - Highlights of IFRS Research

Conversion from US GAAP to International Financial Reporting Standards (IFRS) is a heavily discussed topic in the corporate world. Expected benefits of adoption include reporting consistency, enhanced global competition and improved financial repotting transparency. While many countries worldwide have already adopted IFRS, many other countries are closely examining its effects before adoption, not only from an economic perspective but also from a reporting quality position. (Read the article Highlights of IFRS Research at Journal of Accountancy online.)

US - SEC member calls for single set of accounting standards

US Securities and Exchange Commission (SEC) member Kathleen Casey has called for the continuation of efforts to converge International Financial Reporting Standards (IFRS). "The commission and the [Financial Accounting Standards Board] would be remiss and fail the needs of investors if we do not continue to support the development of a single set of high-quality global accounting standards," she said. (Read the article SEC's Casey: Accounting convergence must continue at Reuters online.)

Canada - Which IFRSs are Expected to Apply for Canadian Changeover in 2011?

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. (Read the AcSB paper Which IFRSs are Expected to Apply for Canadian Changeover in 2011? which was updated in November 2009.)

Canada - Notice of IFRS Discussion Group Meeting on November 25, 2009

The first meeting of Canada's IFRS Discussion Group (IDG) will be held on Wednesday, November 25, 2009 in Toronto. The meeting is open to public observation. An audio webcast of the meeting will also be available for those who are unable to attend the meeting in person. The IDG’s objective is to assist Canada's Accounting Standards Board (AcSB) by considering issues that arise relative to the application of IFRS in Canada and recommending which issues should be referred to the International Accounting Standards Board (IASB) or International Financial Reporting Interpretations Committee (IFRIC). (For more information and to register, visit the AcSB website.)

US - IFRS similarities and differences – two comparisons

PricewaterhouseCoopers (PwC) has published the 2009 edition of IFRS and US GAAP: Similarities and Differences. The 220-page comparison helps companies develop a broad understanding of the major differences between International Financial Reporting Standards (IFRS) and US GAAP and an understanding of the level of change on the horizon. PwC has also published a comparison of IFRS for SMEs and full IFRS. It provides a description of the similarities and differences between the reporting methods; subsequent impact on companies; commentary and insight on recent and proposed guidance; an overview of the IFRS for SMEs; a report on the US GAAP codification project; and updates incorporating authoritative standards and interpretive guidance issued up to June 30, 2009. (Read the PwC publication IFRS for SMEs: Pocket Guide 2009.)

Canada - Crossing over to IFRS: Questions you should be addressing today

A new publication by PricewaterhouseCoopers (PwC) covers the questions that are frequently being asked about the preparation, presentation and disclosure of the International Financial Reporting Standards (IFRS) transition balance sheet as at January 1, 2010. It also looks at important considerations and key decisions that should be made prior to January 1, 2010. (Read the PwC report Crossing over to IFRS: Questions you should be addressing today.)

Canada - Canadian CFA Member Survey: The Investors’ Challenge

The January 1, 2011 deadline for Canada’s conversion to IFRS is fast approaching and yet there remains a great deal of uncertainty within the Canadian business community about IFRS and its impact. The Canadian CFA Member survey, conducted by PricewaterhouseCoopers (PwC) in conjunction with the Canadian Advocacy Council for Canadian CFA Institute Societies, gauged the level of knowledge, interest and communication surrounding IFRS from those Canadians who hold the Chartered Financial Analyst designation. These included people in the analyst/investment community, CFOs and others – some of the biggest stakeholders of the IFRS conversion. The survey revealed some interesting statistics regarding the areas of training/ education, information sharing, size and industry, and management awareness as it pertains to CFAs and IFRS. The survey was conducted online in March-April 2009 and had 271 completed responses. (Read the report Canadian CFA Member Survey: The Investors’ Challenge.)

Canada - PwC survey on IFRS Readiness in Canada: 2009

With the January 1, 2011 deadline for Canadian companies' transition to International Financial Reporting Standards (IFRS) looming on the horizon, a new survey by the Canadian Financial Executives Research Foundation (CFERF), the research institute of FEI Canada, and sponsored by PricewaterhouseCoopers (PwC), indicates that many companies will have a race to the finish line. (Read the report IFRS Readiness in Canada: 2009.)

IASB - First phase of financial instruments accounting reform completed

The International Accounting Standards Board (IASB) has issued a new International Financial Reporting Standard (IFRS) on the classification and measurement of financial assets. (View the IASB Press Release, a Feedback Statement in response to IFRS 9 consultations, and the Financial Instruments: Replacement of IAS 39 project page.)

US - Transition to IFRS sparks debate at SEC

The US Securities and Exchange Commission (SEC) is trying to chart the way for companies to transition to International Financial Reporting Standards (IFRS), but there is no clear consensus about how the transition should be made. “The comment letters on how to get there were an array, meaning every possible idea you could think of on how to get there…" said Julie Erhardt, deputy chief accountant at the SEC. There is considerable debate over the cost of the transition, and over whether it is fully supported by Congress. (Read the article "Lack of accounting-rules consensus vexes SEC" at Reuters online.)

Canada - Deloitte webcast on Canadian adoption of IFRS

For many Canadian publicly-accountable enterprises, January 1, 2010 is the date of transition to International Financial Reporting Standards (IFRS). This signals the preparation of the opening IFRS balance sheet as well as the start of dual reporting. In addition, some Canadian early adopters will be filing their first IFRS financial statements in 2010. Deloitte Canada will present a webcast on Canadian adoption of IFRS on December 1, 2009 from 2pm to 3:30pm. (For more information and to register, visit the Deloitte Canada website.)

IASB - IASC Foundation and FAF Trustees welcome IASB and FASB commitment to convergence

The Trustees of the IASC Foundation and the US Financial Accounting Foundation, oversight bodies of the IASB and the FASB respectively, welcomed a joint statement by the two boards reaffirming their commitment to complete their convergence work described by the MoU by June 2011. The IASC Foundation and the FAF note the broad support for convergence to a single set of globally accepted high quality accounting standards expressed by the G20 Leaders, the Financial Crisis Advisory Group (FCAG), and other stakeholders. To this end, both Trustee groups continue to support unequivocally the joint work of the IASB and the FASB aimed at achieving the objectives and convergence milestones outlined in the February 2006 Memorandum of Understanding, as updated in September 2008. (Read the IASB Press Release and the Joint Statement of the International Accounting Standards Committee Foundation and the Financial Accounting Foundation.)

IASB and FASB Reaffirm Commitment to Memorandum of Understanding

At a recent joint meeting, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) reaffirmed their commitment to improve International Financial Reporting Standards (IFRS) and US generally accepted accounting principles and to bring about their convergence. The Boards also agreed to intensify their efforts to complete the major joint projects described in their 2006 Memorandum of Understanding (MoU), as updated in 2008. (Read the IASB Press Release and the Joint statement: FASB and IASB Reaffirm Commitment to Memorandum of Understanding.)

Canada - XBRL Canada Annual Conference 2009

The XBRL Canada Annual Conference was held on November 5, 2009 in Toronto, Canada. The presenters included Paul Cherry, Chair of the IASB Standards Advisory Council, who spoke about the IASB and Convergence, David Blaszkowsky of the US Securities and Exchange Commission (SEC) who explained The Roll-out of Interactive Data Reporting for US-listed Public Companies, and Andrew Lowe of the Ontario Securities Commission (OSC) who discussed XBRL and the CSA. The conference provided regulatory filers and potential filers with an up-to-date status report and concrete help in getting organized for the adoption of IFRS and XBRL. (The presentations are available at the XBRL Canada website.)

EU – Deloitte resources for 2009 year-ends

Deloitte has released the 2009 versions of three IFRS publications:

• IFRS Presentation and Disclosure Checklist for 2009 is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item;
• IFRS Compliance Questionnaire for 2009 summarizes recognition and measurement requirements in IFRS issued on or before June 30, 2009 and may be used to assist in considering compliance with those pronouncements;
• IFRS Illustrative Financial Statements for 2009 are intended to illustrate the presentation and disclosure requirements of IFRS.

US – FASB and ASBJ meet to discuss global convergence

Representatives of the Accounting Standards Board of Japan (ASBJ) and the Financial Accounting Standards Board (FASB) met recently in Norwalk, CT. Led by Ikuo Nishikawa, chairman of the ASBJ, and Robert H. Herz, chairman of the FASB, the meeting was the eighth in a series of discussions between the ASBJ and the FASB designed to enhance dialogue between the two Boards in their shared pursuit of global convergence of accounting standards. (Read the FASB News Release. )

US - SEC chief accountant provides update on IFRS roadmap

The US Securities and Exchange Commission (SEC) chief accountant, James Kroeker, recently confirmed the SEC's commitment to provide clarity by late December 2009 on its proposed roadmap for the adoption of International Financial Reporting Standards (IFRS) in the United States. Read the article “SEC Chief Accountant Promises "Clarity" on IFRS Road Map This Fall” at Journal of Accountancy online. Also, watch the video presentation of James Kroeker's remarks at an AICPA/International Accounting Standards Committee Foundation conference in New York.

US – FASB and IASB work to reach common standards

The leaders of the Financial Accounting Standards Board and the International Accounting Standards Board recently announced at an IFRS conference that they will begin meeting monthly to try to speed up their efforts to develop a common set of accounting standards by their target date of 2011. Read the article “FASB, IASB Leaders Boost Collaboration Efforts to Meet 2011 Convergence Goal” at Journal of Accountancy online. Also, watch the video interview with Paul Volcker, chairman of the President’s Economic Recovery Advisory Board, on the effect of adopting IFRS on global capital.

Canada – Who’s managing risks in the transition to IFRS?

Making the transition from Canadian GAAP to International Financial Reporting Standards (IFRS) requires a risk-intelligent approach. Publicly-accountable enterprises will need to issue comparative IFRS statements for 2010 — which means that organizations with a December 31 year-end will need to be IFRS-ready as of January 1, 2010. (Read the article “Who’s managing risks?” in the November 2009 issue of CAmagazine.

Canada – OSFI releases draft advisory regarding impact of IFRS

Canada’s Office of the Superintendent of Financial Institutions (OSFI) has released a Draft Advisory on “Conversion to International Financial Reporting Standards (IFRSs) by Federally Regulated Entities (FREs).” This Draft Advisory addresses the regulatory implications of IFRS conversion on accounting and capital. The Draft Advisory is open for comment until December 31, 2009.

Canada - Deloitte Countdown IFRS transition newsletter for October 2009

Deloitte Canada has published its Countdown IFRS transition newsletter - October 2009. The newsletter discusses:

• Time sensitive considerations before opening balance sheet date –  IFRS transition date;  
• 'The Real Deal' – privately held companies; 
• Omnibus Exposure Draft III – exposing existing IFRS for incorporation into Canadian GAAP; 
• Canadian Securities Administrators Accounting Alerts;
• Deloitte Publications and Events;
• International Round-up.

 

Canada - Financial Instruments Typescript

Canada's Accounting Standards Board (AcSB) has published a typescript of the Background Information and Basis for Conclusions relating to amendments to Section 3855, Financial Instruments — Recognition and Measurement, issued in December 2008, June 2009 and August 2009.

Canada - IFRS guidance for lawyers, bankers and investors

Canada's Accounting Standards Board (AcSB) staff has issued Bulletin #9 which emphasizes the need to anticipate how trend analyses, debt covenants and financial ratios that are included in contracts and used to make decisions will change when International Financial Reporting Standards (IFRS) are adopted. This is essential reading for lawyers, bankers and investors.

Canada - CPAB/AcSB IFRS webcast for small and mid-sized companies

The Canadian Public Accountability Board (CPAB) and Canada's Accounting Standards Board (AcSB) will host a webcast that will set out a roadmap for what small and mid-sized companies should be doing now to prepare for International Financial Reporting Standards (IFRS). It will be held on November 5, 2009 from 2:00pm to 3:00pm EST. (Register online for this free webcast. )

Canada - AcSB Decision Summary October 14, 2009

Canada's Accounting Standards Board (AcSB) has issued its Decision Summary for October 14, 2009. This is an executive summary of discussions and decisions with respect to the topics addressed at this meeting: International Activities; Not-for-Profit Organizations; and Structure of the CICA Handbook – Accounting.

EU - Comments requested on IASB’s strategic direction

The Group of European national standard-setters (France, Germany, Italy and the UK) and the European Financial Reporting Advisory Group (EFRAG) has asked for comments by November 9, 2009 from European constituents on the priorities of the International Accounting Standards Board (IASB), particularly the IASB’s strategic direction after June 2011. (Read the request document and submit comments on the project webpage.)

IASB - Expect new fair-value rule next month

International Accounting Standards Board (IASB) chairman, Sir David Tweedie, said he will release a new fair value accounting rule by November 2009. In an address to a meeting of European Finance Ministers, which have in the past been critical of the IASB’s response to the financial crisis, Tweedie has sought to ease concerns by announcing that he is on track to deliver a new fair value standard by the end of this year. (Read the article "Fair value standard will be released next month: Tweedie" in Accountancy Age online.)

IASB - Update to European Finance Ministers (ECOFIN)

Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB) has updated the European Finance Ministers (ECOFIN) on reforms to IAS 39 Financial Instruments.  He expained that the new standard on classification and measurement responds directly to the call of the G20 Leaders to reduce the complexity of accounting standards for financial instruments. He also noted that the IASB has taken into account the Basel Committee guiding principles on IAS 39 and the report of the Financial Crisis Advisory Group. The IASB is also working closely with the European Commission and the European Financial Reporting Advisory Group (EFRAG) to facilitate a smooth endorsement. (Read the IASB Press Release.)

US - AICPA survey shows CPAs look to SEC for leadership and direction

According to a recent survey conducted by the American Institute of Certified Public Accountants (AICPA), the United States accounting profession delayed taking steps to prepare for adoption of International Financial Reporting Standards (IFRS) over the last six months after the Securities and Exchange Commission (SEC) set aside its review of plans for adoption during the credit crisis. A 65% majority of CPAs said they want the SEC to address its plans for IFRS adoption by the end of the year. (Read the AICPA survey.)

US - How to leverage Sarbanes-Oxley compliance for IFRS convergence

Ernst & Young Senior Manager Steve Arnold offers quick, practical tips on steps for using internal control staff to facilitate the transition to International Financial Reporting Standards (IFRS). Watch the video "Leverage your SOX... " at Journal of Accountancy online. Also, for IFRS daily updates, training courses, case studies and other resources, visit IFRS.com.

Canada - AcSB Exposure Draft on Annual Improvements

Canada's Accounting Standards Board (AcSB) has issued an Exposure Draft (ED) that corresponds to the International Accounting Standards Board (IASB) August 2009 ED on Improvements to IFRSs. The amended standards resulting from the proposals would apply to Canadian publicly-accountable enterprises adopting IFRS in 2011. Comments are requested by November 24, 2009. (Read the AcSB October 2009 ED on Improvements to IFRSs.)

Canada - KPMG surveys on The IFRS Journey to Readiness

With January 1, 2010 transition dates fast approaching, and the market turbulence caused by the global recession notwithstanding, many Canadian publicly listed companies have made good headway in scoping and assessing the impact of converting to International Financial Reporting Standards (IFRS). With only a few months left before the transition date for most companies, however, most of the design and implementation activities associated with conversion have yet to be tackled. Following on The IFRS Journey to Readiness: Part 1, KPMG conducted a second survey in June and July 2009, asking 113 Canadian publicly-accountable enterprises to assess their IFRS conversion readiness in four phases: scoping, detailed assessment, design and implementation. KPMG has just released the second white paper in a series of surveys, entitled The IFRS Journey to Readiness: Part 2. (Other IFRS resources and tools are available on the KPMG website.)

Canada - IFRS Advisory Committee Report on Public Meeting

Canada's IFRS Advisory Committee (IAC) has issued its latest Report on Public Meeting. At its July 2009 meeting, the IAC discussed International Accounting Standards Board (IASB) documents for comment on fair value measurement and financial instruments, as well as eligibility of revaluations for the IFRS 1 deemed cost option, liability and equity classification, and functional currency determination.

US - AICPA starts Twitter page on IFRS news, updates and resources

The American Institute of Certified Public Accountants (AICPA) has started a page on Twitter to provide guidance on International Financial Reporting Standards (IFRS). The goal is to disseminate comprehensive resources related to IFRS for accounting professionals, financial managers, audit committees, boards, investors and other users of financial statements. (Visit the AICPA Twitter site on IFRS for select IFRS news, updates and resources.)

IASB - Proposed XBRL taxonomy for IFRS for SMEs

The International Accounting Standards Committee (IASC) Foundation has invited comment on an exposure draft of the International Financial Reporting Standards (IFRS) for SMEs XBRL Taxonomy. The Taxonomy is a complete translation of the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) into XBRL (eXtensible Business Reporting Language). The exposure draft is accompanied by a comprehensive review package containing a sample XBRL filing and explanatory materials, as well as illustrative financial statements and a presentation and disclosure checklist. The exposure draft of the IFRS for SMEs Taxonomy is available online at IFRS for SMEs XBRL Taxonomy and is open for comment until 27 November 27, 2009. The IASC Foundation aims to publish the final version of the Taxonomy in December 2009.

EU - EFRAG Endorsement Status Report, October 2009

In light of the Amendment to IAS 32 Classification of Rights Issues and the endorsement advice by the European Financial Reporting Advisory Group (EFRAG) on the Amendments to IFRS 1 Additional Exemptions for First-time Adopters, EFRAG has updated the EFRAG Endorsement Status Report.

Canada - Adopting IFRSs in Canada, III

Canada's Accounting Standards Board (AcSB) has issued a third omnibus exposure draft on Adopting IFRSs in Canada, III. The exposure draft proposes to incorporate changes to IFRS since the 2008 Bound Volume into the IFRS to be adopted by publicly-accountable enterprises. Comments are requested by November 15, 2009.

US - CPA Exam to include IFRS questions

According to the American Institute of Certified Public Accountants (AICPA), major changes to the Uniform CPA Examination are now scheduled for the beginning of 2011. The AICPA Board of Examiners decided that making all the changes at once will serve exam candidates better than if they were introduced separately over a longer period. Questions on International Financial Reporting Standards (IFRS) are being added to the exam as part of the changes. (Read the article "CPA Exam to Undergo Transformation" at Journal of Accountancy online.)

US - AICPA calls for permanent, independent funding of IASC Foundation

At a roundtable of global accounting leaders in New York City, the American Institute of Certified Public Accountants (AICPA) recently called for a permanent, independent funding mechanism for the International Accounting Standards Committee Foundation, the governing body of the International Accounting Standards Board (IASB). (Read the AICPA Press Release. )

Canada - Accounting standards for private enterprises finalized

Canada's Accounting Standards Board (AcSB) has approved the final accounting standards for private enterprises in Canada. The new standards will be issued by the end of the year and will be available for 2009 reporting by entities that choose to adopt them early. The private enterprise standards give Canadian businesses the ability to choose to adopt new “made in Canada” standards or International Financial Reporting Standards (IFRS). Private enterprises must decide which set of standards to adopt for years beginning on or after January 1, 2011. (Read the AcSB Media Release. )

Canada - KPMG guidance on managing the transition to IFRS

Deadlines are looming in Canada’s move to International Financial Reporting Standards (IFRS). Publicly-accountable enterprises are discovering new obstacles and increasing challenges. According to a recent survey by KPMG, many Canadian enterprises have been moving relatively slowly so far. In response, KPMG Canada has published Managing the Transition to IFRS: Positioning for success. This publication will help many enterprises understand how the current economy is creating new complications and making the timing of changes much less predictable. It focuses on an enterprise’s conversion project, examining what might go wrong and how to manage the risks.

Canada - PwC IFRS News - September 2009

PricewaterhouseCoopers (PwC) has issued its IFRS News - September 2009. This monthly publication provides IASB technical updates and PwC insights into the impact of International Financial Reporting Standards (IFRS). (To learn more, visit the PwC IFRS Canada website.)

Canada - Deloitte Countdown IFRS transition newsletter - September 2009

Deloitte Canada has published its Countdown IFRS transition newsletter - September 2009. The newsletter discusses:

• IFRS Transition – Where are we now?
• "The Real Deal" – real issues and solutions on IFRS transition relating to First Interim Financial Statements.
• SEC to refocus on IFRS roadmap.
• Deloitte IFRS Publications and Events and How to Access Them.
• An Update on Current IFRS News, including various important EDs or Discussion Papers.

Canada - CSA prepares for upcoming changeover to IFRS

The Canadian Securities Administrators (CSA) has published for comment National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards, its Companion Policy and related amendments that are aimed at ensuring a smooth transition from current Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS).

Canada - IFRS Discussion Group

The first meeting of Canada's IFRS Discussion Group (IDG) will be held on November 25th, 2009 in Toronto. Individuals are encouraged to submit issues relating to the application of International Financial Reporting Standards (IFRS) in Canada by October 20, 2009. (For more information, see Submission of Issues for Consideration by IFRS Discussion Group.)

Canada - AcSB September 22-23, 2009 Decision Summary

Canada's Accounting Standards Board (AcSB) has issued an executive summary of discussions and decisions with respect to the topics addressed at the meeting on September 22-23, 2009. The Decision Summary addresses the following matters: International Activities; Accounting Standards for Private Enterprises; and Not-for-Profit Organizations. (Read the AcSB Decision Summary. )

IASB / US - Standard setters comment on progress toward G-20 recommendations

Financial Accounting Standards Board (FASB) Chairman, Robert Herz, and International Accounting Standards Board (IASB) Standards Advisory Council Chairman, Paul Cherry, discuss the progress made toward the Group of 20 nations' recommendations to improve accounting for financial instruments, such as mortgage-backed securities. (View the online video, G-20 Accounting Update, at JournalofAccountancy.com.)

IASB - Live web presentation on proposals for rate-regulated activities

On October 5, 2009, the staff of the International Accounting Standards Board (IASB) will give a live web presentation on the recently published exposure draft on accounting for rate-regulated activities. (Read the IASB Press Release and register to participate. )

IASB - Sir David Tweedie addresses the Economic and Monetary Affairs Committee

On September 28, 2009, Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB) addressed the Economic and Monetary Affairs Committee of the European Parliament in Brussels. He spoke about the IASB response to the financial crisis and, in particular, its response to issues raised by EU institutions. (Read the IASB Press Release.)

US - G-20 calls for single set of global accounting standards by June 2011

In an agreement reached to make dozens of changes to the regulation of financial markets, systems and institutions, the leaders of the G-20 called on “international accounting bodies to redouble their efforts to achieve a single set of high quality, global accounting standards within the context of their independent standard setting process and complete their convergence project by June 2011.” The joint statement also said the International Accounting Standards Board's institutional framework should further enhance the involvement of various stakeholders. (Read the article "G-20: Achieve Single Set of Global Accounting Standards by June 2011" at JournalofAccountancy.com.)

IASB - IASC Foundation Monitoring Board

The Trustees of the IASC Foundation, the oversight body of the International Accounting Standards Board (IASB) welcomed a statement by the Monitoring Board, a group of public capital market authorities to whom the IASC Foundation established a public accountability link. In its statement of principles, the Monitoring Board emphasized the relevance of providing high-quality financial information to ensure the confidence of capital providers in making investment decisions. The Monitoring Board also highlighted the importance of "independence and transparency in the standard setter’s due process." (Read the IASB Press Release and the full Monitoring Board statement available on the IOSCO website.)

IASB - IFRIC Update for August 2009

Periodically, the International Accounting Standards Board (IASB) publishes newsletters on its activities. IFRIC Updates are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future IFRIC meetings. (Read the August 2009 IFRIC Update.)

IASB - Updates for September 2009

Periodically, the International Accounting Standards Board (IASB) publishes newsletters on its activities. IASB Updates are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future meetings. For September 2009, IASB Update has a new format and is also an online document. (Read the September 2009 IASB Update and the special update on the IASB September 22, 2009 meeting. )

US - Educators say students need IFRS to remain competitive

According to a survey by the American Accounting Association (AAA) and KPMG LLP, nearly half of accounting professors said the United States needs to adopt global standards to remain competitive, and three-quarters think International Financial Reporting Standards (IFRS) need to be immediately incorporated into their curricula. When asked to assess their university’s preparedness to teach IFRS, only 8% thought at least half of their school’s accounting faculty were qualified to teach it. Slightly more than half of the professors (55%) were also concerned that administrators do not understand the magnitude of the curriculum change required to respond to IFRS adoption in the United States. (Read the article "Accounting Educators Say U.S. at Disadvantage Without IFRS" at JournalofAccountancy.com)

Canada - IFRS and Information Technology

With the upcoming transition to International Financial Reporting Standards (IFRS), it is time to consider the impact of the transition on information technology and the critical steps that need to be addressed throughout the conversion. A recently archived webinar, sponsored by PTC Accounting and Finance, outlines the specific aspects that need to be addressed to ensure a smooth transition. (View all webinar series on the Chartered Accountants of Canada website.)

Canada - IFRS Immersion Course in Toronto

The Chartered Accountants of Canada are offering an IFRS Immersion Course on October 13-16, 2009 in Toronto, Ontario. This four-day program provides comprehensive coverage of important International Financial Reporting Standards (IFRS) including: financial statement presentation; fair value measurement; property, plant and equipment; financial instruments; impairments; provisions; and revenue recognition. The program includes in-class technical lectures and facilitated workgroup sessions using case studies designed to illustrate the application of concepts and information learned in the lecture sessions. (For more information and to obtain a course brochure, visit the continuing education website.)

US - SEC wants to speed transition to IFRS

The Securities and Exchange Commission (SEC) in the United States is planning to help companies make a rapid transition to International Financial Reporting Standards (IFRS). The need for IFRS is generally agreed to by most companies but they are concerned about how to make the transition. The SEC is going to refocus on the "roadmap" for IFRS that it has prepared in order to help companies make the change. (Read the articles “Global Standards Alive and Kicking, SEC Accounting Chief Says” at CFO.com and “SEC to refocus on IFRS roadmap –official” at Reuters.com.)

Canada - Exposure Draft on Rate-Regulated Activities

Canada’s Accounting Standards Board (AcSB) has issued an exposure draft to adopt a standard on Rate-regulated Activities. It corresponds to the IASB exposure draft on this topic which was issued in July 2009. The standard will apply to Canadian publicly-accountable enterprises at changeover to IFRS. Comments are requested by November 20, 2009. (Read the AcSB exposure draft on “Rate-regulated Activities” and the related IASB exposure draft and comment letters. )

Canada - PwC Financial Reporting Release August 2009

The August 2009 issue of the PricewaterhouseCoopers (PwC) Financial Reporting Release covers the following matters: The Future of Canadian GAAP; Crossing over to IFRS; Canadian GAAP for Private Enterprises; Reflections on the Financial Crisis; Global GAAP Convergence; Financial Instruments; Fair Value Measurement; Fair Value and Liquidity Disclosures; Investments in Debt Securities; Consolidation and Asset Derecognition; Rate-Regulated Activities; Income Taxes; Earnings per Share; and Emerging Issues Committee Abstracts. (Review the current and prior issues of Financial Reporting Release on the PwC website.)

IASB - Trustee letter to G20 participants

The Trustees of the IASC Foundation have issued a letter to participants of the upcoming G20 meeting on September 24-25, 2009 in Pittsburgh, US. The purpose of the letter is to inform the leaders of G20 countries of the progress that the IASC Foundation and the IASB have made in response to the G20 recommendations on accounting standards agreed at the Leaders Summits in Washington in November 2008 and in London in April 2009. (Read the Trustee Letter to G20 Participants.)

IASB - Fair value measurement roundtables

In November and December 2009, the International Accounting Standards Board (IASB) will hold roundtable discussions on its proposals for fair value measurement. Roundtables will be held in North America, Asia and Europe. Details of dates, times and locations are now available on the IASB website.

US - IFRS Risk Planning and Controls Execution

The US Securities and Exchange Commission (SEC) proposed roadmap for the adoption of International Financial Reporting Standards (IFRS) may require that companies perform US GAAP / IFRS parallel accounting over a multiyear period. Companies can leverage the expertise of their Sarbanes-Oxley compliance staff to evaluate the effects of IFRS conversion on business processes and internal control over financial reporting. (Read the article "IFRS Risk Planning and Controls Execution: Strategic considerations for financial managers" in the September 2009 Journal of Accountancy online.)

US - Deloitte IFRS Survey Results 2009

According to a recent survey by Deloitte, 89% of financial executives view mandatory conversion to International Financial Reporting Standards (IFRS) in the United States as either highly likely or somewhat likely. The July 2009 survey of more than 245 financial executives found that 59% view mandatory conversion as highly likely. In addition, 80% of the respondents are currently taking action or planning to take action on IFRS conversion. (Read the Deloitte IFRS Survey Results 2009. )

Canada – FYI Newsletter for September 2009

Canada’s Accounting Standards Board (AcSB) has issued its FYI Newsletter for September 2009. In addition to the message from the Chair, the newsletter includes articles on a third omnibus exposure draft, first-time adoption of IFRS, fair value measurement, impairment of debt securities, financial instruments, pension plans and rate-regulated activities.

Canada – New IFRS Discussion Group

Canada’s Accounting Standards Board (AcSB) has announced the appointments to its IFRS Discussion Group (IDG). The purpose of the IDG is to assist the AcSB in identifying issues relating to the application of International Financial Reporting Standards (IFRS) in Canada. The IDG will be a public forum in which such issues can be discussed. It will make recommendations as to whether particular issues should be referred to the International Accounting Standards Board (IASB) or the IASB’s International Financial Reporting Interpretations Committee. The first meeting will be on Wednesday November 25, 2009 in Toronto, Canada.

IASB - Proposed name change to "International Financial Reporting Standards Board"

The Trustees of the IASC Foundation are seeking views on the proposal to change the name of the organization to the "International Financial Reporting Standards Foundation" which will be abbreviated to "IFRS Foundation." The Trustees also seek views on the proposal to mirror this change by renaming the International Accounting Standards Board (IASB) as the "International Financial Reporting Standards Board" which will be abbreviated to "IFRS Board." Comments are due by November 30, 2009. (The request for comments is on page 9 of Part 2 of the Constitution Review - Proposals for Enhanced Public Accountability.)

IASB - Review of the IASC Foundation Constitution

The International Accounting Standards Committee Foundation (IASC Foundation), the oversight body of the International Accounting Standards Board (IASB), has published for public comment proposals on the second part of the IASC Foundation Constitution. The objectives of the proposals are to enhance governance, improve the involvement of stakeholders with a broad range of perspectives in both developed and emerging markets, and make operational improvements. (Read the IASB Press Release and listen to Constitution Round Tables London, audio files. Also, refer to Part 2 of the Constitution Review - Proposals for Enhanced Public Accountability.)

Japan - Accelerating convergence with IFRS

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

US - Center for Audit Quality offers guide on IFRS

The Center for Audit Quality (CAQ), which is affiliated with the American Institute of Certified Public Accountants (AICPA), has developed a Guide to International Financial Reporting Standards (IFRS). The CAQ developed the Guide to IFRS in recognition of the timeline in the US Securities and Exchange Commission (SEC) proposed IFRS roadmap and the critical decisions that must be made regarding the use of global accounting standards in the US. The Guide will provide investors, policymakers and other capital market stakeholders with a timely, accessible and objective introduction to the debate over a single set of high-quality global accounting standards.

US - IFRS critic Niemeier to leave PCAOB

Charles D. Niemeier, a prominent critic of the proposed US transition to International Financial Reporting Standards (IFRS), has announced that he will leave the Public Company Accounting Oversight Board (PCAOB). He said in a speech last September that moving to IFRS would be a setback both for business and the US regulatory system. "We have the lowest cost of capital in the world. Do we really want to give that up?" he told a meeting of the New York State Society of CPAs. (Read "IFRS Critic to Leave Accounting Firm Regulator" and related articles at CFO.com.)

US - IFRS ripples throughout the CPA profession

International Financial Reporting Standards (IFRS) have made great inroads over the past five to seven years. The US Securities and Exchange Commission (SEC) has proposed a timetable, open for public comment, that will allow/require listed companies to use IFRS starting in 2014 or earlier. For big and small CPA firms, members in industry, accounting educators, investors, tax professionals, bankers, board members, auditors and financial analysts, the financial world will change by a magnitude unseen by most who are currently working in the accounting field and related professions. The most significant challenge now is how to get the horse (IFRS-specific knowledge) in front of the cart (financial statement preparation and reporting using IFRS) where it belongs. (Read the article "IFRS ripples throughout the profession" at AccountingWeb.com.)

IASB - North American Roundtables on Financial Instruments

The International Accounting Standards Board (IASB) has scheduled North American roundtables on financial instruments. The roundtables will be held in Norwalk CT (US) on September 14, 2009. An audio recording of the discussions will be available on the IASB website shortly after the roundtables.

IASB - Meeting of World Standard Setters

The International Accounting Standards Board (IASB) has scheduled a meeting of the World Standard Setters on September 10-11, 2009 in London UK. The meeting agenda and information on the projects to be discussed in plenary sessions are available on the IASB website.

US - Momentum fading for move to IFRS

Last year, Christopher Cox, then chairman of the Securities and Exchange Commission (SEC), unveiled a roadmap for the conversion to International Financial Reporting Standards (IFRS) in the United States. Since then, regulators and standard setters have considered recommendations from the SEC's Committee on Improvements to Financial Reporting, but the SEC has delayed addressing the more controversial ideas. (Read the article "Simplified Reporting: Forgotten in the Crisis?" at CFO.com.)

UK - Accounting Standards Board moves to end UK GAAP

The Accounting Standards Board (ASB) is an operating body of the Financial Reporting Council, an independent regulator in the United Kingdom (UK). The ASB has released the draft version of a policy that would lead to a future where UK GAAP will cease to exist. "The recent publication by the IASB of its IFRS for SMEs provides the board with the opportunity to consult on what we see as the future framework for financial reporting by UK and Irish entities," said Ian Mackintosh, chairman of the ASB. (Read more in the Accountancy Age (London) online article "ASB sounds death knell for UK GAAP.")

Canada - Financial Reporting & Accounting Conference

The Chartered Accountants of Canada are offering an intensive multi-tracked financial reporting and accounting conference in Toronto on September 16-18, 2009. The conference will include a wide selection of optional post-conference workshops. Expert speakers will deliver interpretations and insight on current technical issues, laced with practical, real-life examples to help deal with the critical issues that are relevant to an organization. Questions posed on-line prior to the conference or in person at the conference will receive informative and timely answers during the presentations. Public sector participants will examine the latest developments and strategic direction of public sector financial reporting. (For more information and to register, visit the conference website.)

Canada - AcSB Decision Summary

Canada's Accounting Standards Board (AcSB) has issued a Decision Summary for August 25, 2009. It contains an executive summary of discussions and decisions with respect to the topics addressed at this meeting: International Activities; Private Enterprise Strategy; and IFRS Discussion Group. (Read the AcSB Decision Summary.)

Deloitte Canada - Countdown IFRS transition newsletter for August 2009

Deloitte Canada has published its Countdown IFRS transition newsletter - August 2009. The newsletter discusses practical issues Canadian companies are facing in the transition to IFRS as well as an update on recent IFRS events. Articles in this issue include: How Fair is Fair Value? "The Real Deal" – real issues and solutions on IFRS transition relating to Investment Property; CSA Staff Notice 33-314 Relating to Non-self Regulatory Organizations; Deloitte Publications and Events and How to Access Them; An Update on Current IFRS events – including various important EDs and Discussion Papers.

Update on IASB response to G20 recommendations

The International Accounting Standards Board (IASB) has published an update to the comprehensive overview of measures undertaken by the IASC Foundation and the IASB in response to the G20 recommendations. (Read the Updated IASB Response.)

IASB proposes amendments under annual improvements project

The International Accounting Standards Board (IASB) has published for public comment an exposure draft of proposed amendments to eleven International Financial Reporting Standards (IFRS) under its annual improvements project. The proposed amendments reflect issues discussed by the IASB in the project cycle that began last year. The proposals range from clarification of the measurement of non-controlling interests in IFRS 3 Business Combinations (as revised in 2008) to changes of wording to clarify the meaning of IFRS and remove unintended inconsistencies. (Read the IASB Press Release and visit the IASB Annual Improvements Project Page.)

Canada - In the Loop on Standards in Transition

An electronic newsletter called In the Loop – Standards in Transition is being published by the Canadian Institute of Chartered Accountants (CICA). The newsletter covers topics ranging from International Financial Reporting Standards (IFRS) and standards for private enterprises to the new Canadian auditing standards. It is not a technical resource. Rather, it offers just enough information to keep you in the loop on Canada’s changing standards landscape and links you to resources relevant to your specific needs.

Canada - Only months to go on IFRS transition

Canada's Accounting Standards Board (AcSB) has issued another IFRS guidance bulletin. It provides some reasons why Canadian organizations will miss opportunities and incur costs, if planning is not done and actions are not taken before the comparative period for the first IFRS statement begins. (Read the AcSB Bulletin #8, August 2009.)

Deloitte - Database of Statistics on globalization of world's capital markets

Deloitte has published new data on cross-border securities listings. The Database of Statistics provides clear evidence of the globalization of the world's capital markets and the need for International Financial Reporting Standards (IFRS). At June 30, 2009, the 52 securities exchanges that are members of the World Federation of Exchanges have over 46,000 companies listed, of which about 3,100 are foreign (cross-border) listings. In addition, 1,024 non-US companies from 50 jurisdictions were registered with the US Securities and Exchange Commission (SEC) at December 31, 2008. (Review the data: Alphabetical Listing of Companies; Geographic Listing of Companies; Listing by US Trading Market; and Geographic Summary by Jurisdiction of Incorporation.)

Deloitte Canada - The Road to a Cost-Effective Conversion

Deloitte Canada has been publishing a broad range of guidance materials to help Canadian companies address the transition to International Financial Reporting Standards (IFRS). The materials include the Countdown to IFRS newsletter and a series of booklets on The Road to Cost-Effective Conversion. Volume 3 in this conversion series – Maximizing the Return on Your IFRS Investment – has just been published. It offers suggestions on how companies can reduce the costs of conversion by leveraging internal accounting resources, using external resources strategically, and establishing an IFRS-capable financial reporting function for the long term. (Also refer to Volume 1 - Scoping the Effort and Volume 2 - Strategic Choices on the Conversion to IFRS.)

Canada - Financial Instruments: Classification and Measurement

Canada's Accounting Standards Board (AcSB) has issued an Exposure Draft on the International Accounting Standards Board (IASB) proposed new standard for classification and measurement of financial instruments. The new standard will apply to publicly-accountable enterprises in Canada on changeover to International Financial Reporting Standards (IFRS) in 2011. Comments are requested by September 30, 2009. (Read and comment on the AcSB Exposure Draft - Financial Instruments : Classification and Measurement.)

IASB - Tweedie Warns of 2011 Deadline for IFRS Choice

International Accounting Standards Board (IASB) chairman Sir David Tweedie recently noted that other countries are running out of patience waiting for the US Securities and Exchange Commission (SEC) to decide on whether to approve a roadmap for transitioning to International Financial Reporting Standards (IFRS) and that the US would need to commit by 2011. Speaking at the American Accounting Association’s annual meeting, Tweedie described how he and FASB chairman Bob Herz had worked closely together over the years on converging IFRS with US GAAP, and how the US had been involved from the outset in creating IFRS. However, since the SEC issued its roadmap last year, there was a change of administration in Washington, and SEC Commissioner Mary Schapiro has not yet approved the proposed roadmap. (Read the article Tweedie Warns of 2011 Deadline for IFRS Choice in WebCPA.)

CSA requires Canadian registrants to use IFRS

The Canadian Securities Administrators (CSA) has concluded that all registrants will be required to use International Financial Reporting Standards (IFRS) for financial years beginning on or after January 1, 2011. This applies regardless of whether the registrant fits the definition of a publicly-accountable enterprise established by Canada's Accounting Standards Board (AcSB). The conclusions are set out in CSA Staff Notice 33-314 International Financial Reporting Standards and Registrants.

Deloitte - Survey of interim management statements in the UK

Deloitte (United Kingdom) has published In Many Styles – The Second Year's Interim Management Statements. This publication considers how UK listed companies have met the requirements for an interim management statement in the second year of compliance with the Disclosure and Transparency Rules. In particular, it surveys interim management statements of UK listed companies (including separate consideration of investment trusts), reviews compliance with the requirements and compares the findings to the 2008 Deloitte publication First Impressions.

Canada - Issues in Private Company Reporting

Canada's Accounting Standards Board (AcSB) is finalizing the development of a “made in Canada” private company GAAP option for companies that choose not to adopt IFRS. The new standards are expected to be available for early application for fiscal years ending December 31, 2009. They will incorporate changes in accounting for financial instruments and certain types of pension plans, and maintain or enhance existing reporting options for goodwill and other intangible assets, income taxes, subsidiaries, joint ventures and other investments. The remaining recognition and measurement standards will follow the existing CICA Handbook with few, if any modifications. For more information, read the research report on Issues in Private Company Reporting. The report was prepared collaboratively by Financial Executives Institute (FEI), the Canadian Financial Executives Research Foundation (CFERF) and KPMG Enterprise. It comprises the results of a survey of senior financial executives across Canada and the insights obtained through an Executive Research Forum held in Toronto on February 24, 2009.

IASB Update and IFRIC Update - July 2009

Periodically, the International Accounting Standards Board (IASB) publishes newsletters on its activities. IASB Updates and IFRIC Updates are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future meetings. (Read the July 2009 IASB Update and IFRIC Update.)

IASB - Financial Instruments Roundtables

In September 2009, the International Accounting Standards Board (IASB) and the United States Financial Accounting Standards Board (FASB) will hold joint roundtable discussions on their proposals for financial instruments. Roundtables will be held in North America, Asia and Europe. An audio recording of the roundtable discussions will be made available on the website shortly after each roundtable. (For details, read the IASB Press Release.)

IASB - Fair Value Measurement exposure draft and Questions and Answers

Staff of the International Accounting Standards Board (IASB) has issued background material to assist respondents to the exposure draft Fair Value Measurement. A mark-up shows the wording differences between the exposure draft and FASB Statement of Financial Accounting Standards No. 157 Fair Value Measurements and the source for each paragraph in the exposure draft. Some questions and answers to address common themes relating to the exposure draft arising during the staff’s outreach activities have also been posted. (The material is available on the IASB project webpages.)

Financial Crisis Advisory Group publishes review of standard-setting activities following the global financial crisis

The Financial Crisis Advisory Group (FCAG), a high level group of recognized leaders with broad experience in international financial markets, has published its recommendations related to accounting standard-setting activities and other changes to the international regulatory environment following the global financial crisis. (Read the IASB Press Release and the Report of the Financial Crisis Advisory Group.)

IASB publishes proposals on rate-regulated activities

The International Accounting Standards Board (IASB) has published for public comment proposals on accounting for rate-regulated activities. The objective of the proposals is to establish how assets and liabilities resulting from rate-regulated activities should be recognized and measured under International Financial Reporting Standards (IFRS). (Read the IASB Press Release or go to the project page.)

IASB amends the retrospective application of IFRS for first-time adopters

The International Accounting Standards Board (IASB) has issued amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendments address the retrospective application of IFRS to particular situations 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 or go to the project page.)

Canada - Just a few months to go

IFRS transition is just around the corner for Canadian publicly-accountable enterprises. IFRS 1, First-time Adoption of International Financial Reporting Standards, is the most important standard for all first-time adopters of IFRS. The opening balance sheet at the transition date hinges on the successful implementation of this rules-based standard. For preparers of financial statements, the good news is these rules will help make the transition smoother. (Read the August 2009 CAmagazine article Just a few months to go.)

Canada - CFO Briefing on Transition to XBRL

By the end of 2011, about 450 Canadian companies listed on United States stock exchanges will have to implement Extensible Business Reporting Language (XBRL), an internationally recognized standard for electronic communications. The Canadian Securities Administrators (CSA) have voiced their support for XBRL but mandatory adoption is unlikely to occur until after Canadian companies transition to International Financial Reporting Standards (IFRS) in January 2011. A recent briefing published by the Canadian Institute of Chartered Accountants (CICA) introduces basic concepts, explores the benefits and downfalls of implementation, indicates the status of XBRL reporting in Canada and offers tips for preparation. (Read the July 2009 CFO Briefing - Transition to XBRL.)

CESR assesses implementation of its Standard No. 2 on financial information on the co-ordination of enforcement activities

The Committee of European Securities Regulators (CESR) has published a peer review (Ref. CESR/09-188) and a self-assessment (Ref. CESR/09-212) on the application and implementation of CESR’s Standard No. 2 on financial information on the coordination of enforcement activities by National Enforcers across Europe. The reports were conducted in two stages: first, CESR Members self-assessed their application of each of the four principles of CESR’s Standard No. 2 by answering questions that have been established for each principle against a set of benchmarks. Second, CESR’s peer pressure group, the Review Panel, conducted a peer review of how National Enforcers applied the Standard. These reports are accompanied by a press release.

IFRIC Update – July 2009

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.

AICPA and IASC Foundation develop IFRS conference on US perspective

The American Institute of Certified Public Accountants (AICPA) and the IASC Foundation are jointly sponsoring a two-day conference, International Financial Reporting Standards in North America 2009: The U.S. Perspective. The conference will provide practitioners and preparers with an opportunity to learn from those who have already implemented IFRS and from those who are in the middle of the transition process. Major projects on the IASB's agenda will be discussed: consolidations, fair-value measurement, leases and revenue recognition. Round-table sessions will focus on how IFRS standards may affect different industry sectors including the recently issued IFRS for Small and Medium Entities. The conference is in New York on October 29-30, 2009, with pre-conference workshops on October 28. (For more information, visit the conference registration webpage.)

IASB proposes improvements to financial instruments accounting

The International Accounting Standards Board (IASB) has published for public comment an exposure draft of proposals to improve financial instrument accounting. The proposals address how financial instruments are classified and measured. It is anticipated that they will significantly reduce complexity and make it easier for investors to understand financial statements. The IASB plans to finalize the classification and measurement proposals in time for non-mandatory application in 2009 year-end financial statements. (Read the IASB Press Release.)

IASB publishes IFRS for SMEs

The International Accounting Standards Board (IASB) has issued an International Financial Reporting Standard (IFRS) designed for use by small and medium-sized entities (SMEs). SMEs are estimated to represent more than 95 per cent of all companies. The standard is the result of a five-year development process with extensive consultation of SMEs worldwide. (Read the IASB Press Release.)

Updated EFRAG endorsement report

The European Financial Reporting Advisory Group (EFRAG) has updated its report showing the status of endorsement under the EU Accounting Regulation of each IFRS, including standards, interpretations and amendments. The report presents the expected timing of future steps in the process of endorsing the IASB pronouncements. (Read the latest EFRAG Endorsement Status Report.)

IAESB proposes education work plan

The International Accounting Education Standards Board (IAESB) has invited organizations and individuals with an interest in accounting education to comment on its proposed 2010-2012 Strategy and Work Plan. The proposed strategy focuses on projects and activities aimed at developing International Education Standards (IES), while providing adoption and implementation guidance to interested stakeholders in accounting education. The work program contains a number of potential projects for consideration. Comments are requested by October 5, 2009. (Read the IAESB Press Release and download the IAESB exposure draft.)

FASB initiates project on useful, organized and consistent disclosures

Robert H. Herz, chairman of the United States Financial Accounting Standards Board (FASB) has announced the addition of a new FASB agenda project aimed at establishing an overarching framework to make financial statement disclosures more effective, coordinated and less redundant. The project was added in response to requests and recommendations from constituents including the Investors Technical Advisory Committee and the SEC Advisory Committee on Improvements to Financial Reporting. (Read the FASB Press Release.)

Canada - Become a Member of the AcSB’s new IFRS Discussion Group

The purpose of the Canadian Accounting Standards Board (AcSB) new IFRS Discussion Group (IDG) is to assist in identifying issues relating to the application of International Financial Reporting Standards (IFRS) in Canada. The IDG will be a public forum in which issues about the application of IFRS in Canada can be discussed. The IDG will make recommendations to the AcSB as to whether particular issues should be referred to the International Accounting Standards Board (IASB) or the IASB’s International Financial Reporting Interpretations Committee. (More information is available on the AcSB website.)

Webinar — IFRS Adoption for Small-Cap and Medium-Cap Companies

The challenge of IFRS adoption for small-cap and medium-cap companies might seem more daunting than for larger companies with more extensive resources. This one-hour Webinar on July 13, 2009 (12:30pm) will address how companies with limited resources might tackle the challenges of IFRS adoption. It will include the latest from the Canadian Securities Administrators and the Canadian Accounting Standards Board regarding their expectations and suggestions, with a particular emphasis on the needs of small-cap and medium-cap companies. (For more information, visit the Webinar webpage.)

IASB Update - June 2009

Periodically, the International Accounting Standards Board (IASB) publishes newsletters on its activities. IASB Updates are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future meetings. (Read the June 2009 IASB Update.)

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has published its Countdown IFRS transition newsletter for June 2009. It discusses practical issues Canadian companies are facing in IFRS transition and provides an update on recent IFRS events. Articles in this issue include:

• Using Technology to Manage Accounting and Control Changes Driven by IFRS Changeover;
• 'The Real Deal' – real issues and solutions on IFRS transition relating to dual year reporting and reconciliation requirements in 2011;
• Private Enterprise Strategy – IFRS or Private Company GAAP;
• Deloitte Publications and Events and How to Access Them;
• An Update on Current IFRS events – including various important EDs and Discussion Papers.

(Also refer to other Deloitte IFRS Resources.)

EFRAG Update - April 2009, May 2009 and June 2009

The European Financial Reporting Advisory Group (EFRAG) has updated its website. The April 2009, May 2009 and June 2009 editions of EFRAG Update have been published. They summarize the discussions held at the recent EFRAG meetings.

Three Things CPAs Should Know (about IFRS)

In an increasingly global business environment, the demands that CPAs face in the United States are changing. Judith O'Dell, chairwoman of the Private Company Financial Reporting Committee, recently discussed three things all CPAs should recognize about the new landscape and the internationalization of accounting standards. (View the 3-minute video Three Things CPAs Should Know on the Journal of Accountancy website.)

Australian firms want simplified IFRS for SMEs

According to a recent survey by the accounting firm Grant Thornton, 80% of people involved in financial reporting in Australia believe that International Financial Reporting Standards (IFRS) should be simplified. At the same time, 78% of the accountants, chief financial officers and directors responding said converting to IFRS was a good idea. More than 80% of respondents also supported the introduction of a simplified IFRS standard for small and medium-sized enterprises, while more than half said smaller listed companies that gain shareholder approval should be allowed to adopt the simplified standards. Australia adopted IFRS in 2005. (Read more about the survey in the article Accounting Standards Need Simplifying.)

IFRS conversion creates investor relations opportunity

Beginning in 2011, all publicly-accountable enterprises in Canada will make the transition to International Financial Reporting Standards (IFRS) – joining more than 100 countries that have already adopted or permit the use of these global standards. For Canadian investor relations (IR) officers, the transition represents an unprecedented communications opportunity. The IR team needs to be involved in order to develop a stakeholder communications plan. Read more in the May/June 2009 issue of the newsletter, IR Focus, published by the Canadian Investor Relations Institute (CIRI).

IASB web presentation on Fair Value Measurement - June 30, 2009

IASB Board Member, Stephen Cooper along with Hilary Eastman, Project Manager and Henri Venter, Assistant Project Manager, will be introducing the Exposure Draft on Fair Value Measurement in a live web presentation on June 30, 2009. It will be followed by a question and answer session. The web presentation and the question and answer session will be recorded and made available on the project website after the presentation. (Visit the IASB website for more information and register to participate.)

IASB proposes guidance on management commentary

The International Accounting Standards Board (IASB) has published for public comment a proposed non-mandatory framework to help entities prepare and present a narrative report, often referred to as management commentary. (Read the IASB Press Release or View the Exposure Draft and Submit a Comment Letter.)

Are Canadian companies ready for IFRS?

With the January 1, 2011 deadline for the transition by Canadian companies to International Financial Reporting Standards (IFRS), a new survey by the Canadian Financial Executives Research Foundation (CFERF), sponsored by PricewaterhouseCoopers (PwC), indicates that many companies will have a race to the finish line. Despite the fast-approaching conversion deadline, more than 12% of the 147 public companies surveyed and one in five private companies had not yet taken the first step of starting their initial diagnostic assessments. (Read the IFRS Readiness in Canada: 2009 — Survey Highlights).

Canada – Guide for smaller publicly-accountable enterprises

Canada’s Accounting Standards Board (AcSB) has issued a bulletin to help smaller publicly-accountable enterprises start their transition to International Financial Reporting Standards (IFRS). The bulletin suggests a starting point, provides related resources and highlights why companies have to start their transition today, if they have not started already. (Read the bulletin IFRSs: Guide for Procrastinators.)

Canada – 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 in 2011. (Read the paper Which IFRSs are expected to apply for Canadian changeover in 2011?)

World Congress of Accountants 2010

The World Congress of Accountants 2010 will take place in Kuala Lumpur, Malaysia from November 8-11, 2010. It is anticipated that approximately 5,000 professional accountants, international regulators, standard setters, government officials and corporate leaders will attend. (For more information, visit the World Congress of Accountants website.)

IASB Update and IFRIC Update - May 2009

Periodically, the International Accounting Standards Board (IASB) publishes newsletters on its activities. IASB Updates and IFRIC Updates are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future meetings. (Read the May 2009 IASB Update and IFRIC Update.)

IASB update on IAS 39 Financial Instruments

On June 23, 2009, IASB staff will hold a live web update on the project to replace IAS 39 Financial Instruments. Gavin Francis, Director of Capital Markets, and Sue Lloyd, Senior Technical Consultant, will present the second in a series of short live webcasts. It will be followed by a Q&A session where registered participants can send in questions for the IASB staff to answer. (Visit the IASB website for more information and to register for the webcast.)

Japan approves roadmap for IFRS adoption

The Business Accounting Council (BAC), a key advisory body to the Commissioner of the Financial Services Agency (FSA), has approved a roadmap for the adoption of International Financial Reporting Standards (IFRS) in Japan. (Read the IASB Press Release.)

EFRAG Endorsement Status Report Update

In the light of the endorsement of the Revised IFRS 3 Business Combinations and the Amendments to IAS 27 Consolidated and Separate Financial Statements, the European Financial Reporting Advisory Group (EFRAG) has updated the EFRAG Endorsement Status Report to June 12, 2009.

IFRS Primer for Audit Committees

The movement toward a single set of high-quality global accounting standards for use by public companies around the world continues to gather momentum through market forces, even with the current noncommittal stance on the US Securities and Exchange Commission (SEC) proposed IFRS Roadmap. Audit committees need to gain an understanding of IFRS and contemplate the company's readiness. A recent AICPA Audit Committee Brief poses questions the audit committee should consider itself and questions it should discuss with management.

IASB stands up to EU politicians on accounting rules

According to a recent article, the International Accounting Standards Board (IASB) stood its ground when EU finance ministers pressured the board to speed up rewriting rules that would make the balance sheets of European banks look better. The IASB stuck with its schedule for a gradual easing in the way banks are required to report losses on assets. "It's unbelievable how politicians have become accounting experts in the last couple of months," said Hans Hoogervorst, head of the Dutch financial markets authority. (Read the article in The Guardian (London)/Reuters.)