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.)

United States - The Long View on IFRS

IFRS and US GAAP will converge over the next 5 to 10 years with a few differences to accommodate US domestic quirks, according to Gerhard Mueller, a longtime proponent of international accounting. One of the greatest challenges confronting convergence is accounting education in the US fully integrating IFRS into textbooks and the curricula. (Read the article The Long View on IFRS: Gerhard Mueller in the Journal of Accountancy.com.)

FCAG members see threats to international accounting standards

At least three members of the Financial Crisis Advisory Group (FCAG), formed jointly by FASB and the IASB last year to advise the two boards on accounting matters related to the credit crisis, have warned that continued political and other external pressure on FASB - and the IASB in particular - could result in tragedy. (Read the article Pressure on FASB, IASB Could Result in Tragedy, FCAG Members Warn on AccountingWeb.com.)

Canada - Seven Key IFRS Differences

Canada’s publicly accountable enterprises (PAEs) have to give up Canadian generally accepted accounting principles (GAAP) and switch to International Financial Reporting Standards (IFRS) for annual periods starting on or after January 1, 2011. Despite the fact that few PAEs have started moving on this — as some surveys have shown — such enterprises should have completed their transition planning and assessed the anticipated effect of the change on their financial reporting by the end of this year. In fact, the Canadian Securities Administrators want to see those plans discussed in management’s discussion and analysis covering fiscal year 2008.(Read more in the June/July 2009 CAmagazine article Seven Key Differences.)

Canada - IFRS Conversion Checkup

January 1, 2011, is a date of great significance for accountants and publicly accountable enterprises (PAEs) in Canada. Less than two years away, it is the date for the much-anticipated switchover from Canadian generally accepted accounting principles (GAAP) to International Financial Reporting Standards (IFRS). How far have businesses travelled on the road to full preparedness for the change? A mixed picture emerges from the more than 4,000 PAEs in Canada. (Read more in the June/July 2009 CAmagazine article Conversion Checkup.)

EFRAG - European Survey of Users’ Information Needs

The European Financial Reporting Advisory Group (EFRAG), together with the national French standard-setter, has issued a report summarizing and analyzing the results of a recent survey of users of financial information. (The survey report is available on the EFRAG website.)

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has published the May 2009 issue of its Countdown IFRS transition newsletter. It discusses practical issues Canadian companies are facing in IFRS transition as well as providing an update on recent IFRS events. Articles in this issue include:

• Managing Costs on Transition to IFRS;
• The 'Real Deal' – real issues and solutions on IFRS transition relating to impairment;
• Just Released – CSA Staff Notice 52-324 Issues Relating to Changeover to IFRS;
• Deloitte Publications and Events and How to Access Them; and
• An Update on Current IFRS events – including various ED's or Discussion Papers.

(Also refer to other Deloitte IFRS Resources.)

Deloitte - IFRS e-Learning modules

Deloitte's IFRS e-learning was launched in January 2004. As of May 31, 2009, there have been 3,164,828 Deloitte IFRS e-learning modules downloaded by visitors to IAS Plus. Organizations are permitted to install them on their own servers for the internal use of their employees or students. Thirty-seven modules are now available and regularly updated. Deloitte IFRS e-Learning is made available in the public interest without charge.

IASB progress update on IAS 39 replacement

The IASB has published an update on the progress of its comprehensive review of IAS 39, Financial Instruments. The IASB also posted an update of how it is responding to concerns previously raised by the European Commission in its letter of October 27, 2008 to the IASB. (Read the IASB Press Release.)

IASB publishes draft guidance on fair value measurement

The International Accounting Standards Board (IASB) has published for public comment an exposure draft of a proposed new standard on fair value measurement. (Read the IASB Press Release or View the Exposure Draft and submit a Comment Letter.)

KPMG IFRS Institute and the Tax Governance Institute Webcast

There are many unanswered questions as to the timing of potential adoption and the various impacts of an IFRS conversion in the United States. It is clear, however, that there can be conversion issues in the tax area, not only for deferred taxes but also for current taxes. On Thursday, June 4, 2009 (2:00 p.m. – 3:00 p.m. EDT), the first of two KPMG LLP webcasts will be held to discuss potential tax impacts. It will focus on various possible US income tax implications from an IFRS conversion. (Register online for the webcast on US Tax Implications of Adopting IFRS.)

Canada - FYI Newsletter May 2009

Canada's Accounting Standards Board has published the FYI Newsletter May 2009. It includes a message from the Accounting Standards Director and articles on GAAP for private enterprises, changeover to IFRS and information on IASB projects.