US - SEC Approves Statement on Global Accounting Standards

The US Securities and Exchange Commission has voted to issue a statement that lays out its position regarding global accounting standards and makes clear that the Commission continues to believe that a single set of high-quality globally accepted accounting standards would benefit US investors. (Read the SEC Press Release, which includes the Commission Statement in Support of Convergence and Global Accounting Standards, Text of Chairman's Statement and the related video - Chairman Schapiro Discusses Global Accounting Standards.)

IASB - 2010 website feedback survey

As an international standard-setter, the International Accounting Standards Board (IASB) recognizes the importance of fully embracing web-based services to support effective communication with interested parties around the world. In this regard, the IASB has recently updated its website, as well as introducing a number of other online initiatives including interactive webcasts, downloadable podcasts and customizable e-mail alerts. The IASB is now seeking feedback on these developments and is asking users of this website to complete an online survey. (To take part in the survey, visit the IASB survey webpage.)

IASB - IASC Foundation publishes XBRL proposed IFRS Taxonomy 2010

The International Accounting Standards Committee (IASC) Foundation has published for public comment an exposure draft of the International Financial Reporting Standards (IFRS) Taxonomy 2010. The proposed taxonomy is consistent with IFRS and the IFRS for Small and Medium-sized Entities (SMEs). (Read the IASB Press Release and obtain more information on the IFRS Taxonomy 2010 webpage.

US - Accounting firms cautious about delayed move to global standards

Executives from three of the Big Four accounting firms said the nation's plan to shift to International Financial Reporting Standards (IFRS) could face significant delays and that the process could become extremely politicized. The executives said discussions about the shift are at a crucial point. (Read the article Global accounting rules may face delays at Reuters UK online.)

IASB/FASB - Accounting convergence at important crossroads

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are facing past and current challenges as they work toward a 2011 deadline for achieving US and international accounting convergence. (Read the article The long and winding roadmap at Accountancy Age online.)

Canada - IFRS and the Opening Balance Sheet

Canadian companies adopting International Financial Reporting Standards (IFRS) are required to prepare an opening IFRS balance sheet on the transition date. This statement of financial position must reflect retrospective application of any accounting policies that will change on adoption of IFRS. For companies with a calendar year end, the transition date is January 1, 2010 (which is different than the adoption date of January 1, 2011). Practically speaking, it is a re-statement of the December 31, 2009 Canadian GAAP balance sheet, in accordance with accounting policies under IFRS. (Read more at In the Loop on the Canadian Standards in Transition website.)

US - Understanding the pros and cons of principles-based accounting standards

The "U.S. Perspective" panel at the AICPA/IASC Foundation Conference on International Financial Reporting Standards (IFRS) featured six financial industry heavyweights. It evolved into a discussion about the merits and challenges of a principles-based system of accounting. An article by the American Institute of Certified Public Accountants (AICPA) offers a glimpse into their opinions and insights on the two different accounting approaches, as well as the far-reaching ramifications of the US transitioning to IFRS. (Read the article Merits and Challenges of Having Fewer Rules at IFRS.com.)

IASB - Trustees clarify position on IFRS adoption objective and support for convergence

In a letter to the Financial Times, Gerrit Zalm, Chairman of the Trustees, responds to concerns that the constitutional emphasis on the objective of IFRS adoption globally represents a weakening of the Trustees’ support for ongoing convergence efforts. (Read the letter online at IASB Web Announcements.)

IASB - Trustees announce further governance enhancements

The Trustees of the International Accounting Standards Committee (IASC) Foundation, the oversight body of the International Accounting Standards Board (IASB), have announced enhancements to their governance arrangements. These changes, which are aimed at enhancing public accountability, stakeholder engagement and operational effectiveness, complete the second part of the IASC Foundation’s five-yearly Constitution Review. The Trustees reached their conclusions at the meeting in Brazil on January 26-27, 2010. (Read the IASB Press Release.)

Deloitte - iGAAP 2010 Guide to IFRS Reporting

Deloitte has published iGAAP 2010–A Guide to IFRS Reporting. This 2,918-page book sets out comprehensive guidance for entities reporting under International Financial Reporting Standards (IFRS). The Guide focuses on the practical issues faced by reporting entities, explains clearly the requirements of IFRS, adds interpretation and commentary where IFRS are silent, ambiguous or unclear, and provides many illustrative examples.(Read the Descriptive Booklet about This and Related iGAAP Publications for 2010 or order the publication online.)

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). (Read the latest EFRAG Endorsement Status Report.)

Canada - Review of IFRS transition disclosures

Canada's Ontario Securities Commission (OSC) has issued its IFRS Transition Disclosure Review (Staff Notice 52-718). The purpose of this Notice is to summarize the results of the review of 106 reporting issuers and to provide additional guidance for issuers in their Management Discussion and Analysis filings in anticipation of their changeover from Canadian GAAP to International Financial Reporting Standards (IFRS) on January 1, 2011. The review found, among other things:

• 40% of issuers made no mention of an IFRS changeover plan in their disclosure;
• 60% of issuers discussed a changeover plan, with only half providing disclosure beyond a generic reference to the transition;
• Only half of the issuers that discussed their IFRS transition in their 2008 disclosures also provided investors with quarterly progress updates in 2009 interim disclosure documents.

Brazil - IFRS Global Convergence

On January 28, 2010 the Brazilian Federal Council of Accounting and the Brazilian Accounting Pronouncements Committee signed a Memorandum of Understanding (MoU) with the International Accounting Standards Board (IASB) that sets end-2010 as the target date for full convergence with International Financial Reporting Standards (IFRS) and establishes a framework for future cooperation between the organizations. (Read the new IASB Global Convergence webpage.)

Canada - Keeping your head above water… Recent issues in financial reporting

PricewaterhouseCoopers (PwC) Canada has published its latest Financial Reporting Release dated January 2010. The publication is called Keeping your head above water… Recent issues in financial reporting. Topics covered include: IFRS in Canada; Canadian GAAP for private enterprises; Canadian GAAP for pension plans; Canadian GAAP for not-for-profit organizations; Auditing standards in Canada; Towards a single global GAAP; Financial instruments; Loans and trade receivables, and related revenue; Provisions; Securities Commissions’ continuous disclosure reviews; and Emerging issues committee abstracts. (To learn more or to download previous editions of this publication, visit PwC Canada website.)

Canada - Deloitte Countdown IFRS transition newsletter for January 2010

Deloitte Canada has published its Countdown IFRS transition newsletter - January 2010. The newsletter includes the following articles:

• IFRS Predictions for 2010;
• The Real Deal – a dual reporting calendar for 2010;
• It's official!! IFRS are now in the CICA Handbook;
• Deloitte IFRS publications and International Round-up on standard-setting activities.

Japan - Voluntary Application of International Financial Reporting Standards

On December 11, 2009, the Financial Services Agency (FSA) in Japan published a set of Revised Cabinet Office Ordinances, including “Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements” and “Cabinet Office Ordinance on Disclosure of Corporate Information,” etc. With these revisions, Japanese listed companies which meet certain requirements (“Specified Companies”) will be given the option to prepare their consolidated financial statements, starting from the consolidated fiscal years ending on or after March 31, 2010, by applying IFRS designated by the Commissioner of the FSA through public notice. On January 20, 2010, the FSA made available an English translation of the draft of revised Regulatory Notices, etc. which are intended to update the list of designated IFRS for the voluntary application of IFRS in Japan, in order to facilitate the public consultation process. (Read the FSA Press Release.)

Canada - KPMG: Accounting for Taxes in Your IFRS Conversion Plan

International Financial Reporting Standards (IFRS) will replace Canadian Generally Accepted Accounting Principles (GAAP) for fiscal years beginning on or after January 1, 2011, and most companies have started their changeover to IFRS. However, many companies have delayed their detailed assessment of income taxes. What does this mean for your company’s conversion plans? With the proposals abandoned in their current form and deadlines looming, Canadian companies can no longer ignore existing IAS 12. On Thursday, January 21, 2010, KPMG presented a webcast discussion on the implications of IFRS conversion on income taxes. Find out about some of the common IFRS conversion issues related to income taxes that many companies are facing today. (Read The Clock is Ticking – Accounting for Taxes in Your IFRS Conversion Plan at KPMG online.)

Canada - PwC IFRS News, December 2009/January 2010

PricewaterhouseCoopers (PwC) has issued its IFRS News — December 2009/January 2010 and IFRS News The Canadian Report — December 2009/January 2010. These publication provide IASB technical updates and PwC insights into the impact of International Financial Reporting Standards (IFRS). (To learn more, visit the PwC IFRS Canada website.)

IASB - Limited exemption amendment to IFRS 1

The International Accounting Standards Board (IASB) has issued a minor amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendment relieves first-time adopters of IFRS from providing the additional disclosures introduced in March 2009 by Improving Disclosures about Financial Instruments (Amendments to IFRS 7). It thereby ensures that first-time adopters benefit from the same transition provisions that Amendments to IFRS 7 provides to current IFRS preparers. (Read the IASB Press Release and the Amendments to IFRS 1 project page.)

IASB and FASB reach tentative agreement on fair value definition

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) reached a tentative decision for defining fair value. The groups had a three-day meeting to reconcile differences as they try to converge US GAAP with International Financial Reporting Standards (IFRS) by June 2011. Under this decision, fair value would be defined as an exit price. (Read the article Accounting Boards Define Fair Value at WebCPA online.)

UK - IFRS for SMEs to be used by 35 countries within three years

Developing and emerging nations are calling for the adoption of international accounting standards for small businesses, according to a straw poll by the International Accounting Standards Board (IASB). Support from 35 countries is expected to pressure developed nations, many in Europe, to accept rules proposed by the IASB within three years. (Read the article SME standards set for adoption across the globe at Accountancy Age online.)