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.)