SEC and SEBI announce increased cooperation and collaboration

The US Securities and Exchange Commission (SEC) and the Securities and Exchange Board of India (SEBI) have announced terms for increased cooperation and collaboration. The new SEC-SEBI dialogue has three main objectives: identify and discuss regulatory issues of common concern; continue and expand the existing program of capacity-building and technical cooperation between the SEC and the SEBI; improve cooperation and the exchange of information in cross-border securities enforcement matters. (View the SEC Press Release.)

IASB - business combinations project update

The IASB has completed phase II of its business combinations project by publishing a revised version of IFRS 3 Business Combinations and an amended version of IAS 27 Consolidated and Separate Financial Statements. The new requirements take effect July 1, 2009, although entities are permitted to adopt them earlier. (View the IASB Press Release and Business Combinations Project Data.)

CESR consultation on national GAAP and IFRS

The Committee of European Securities Regulators (CESR) has issued a Consultation Paper on the equivalence of Chinese, Japanese and US GAAP to IFRS. The Paper includes draft conclusions on such equivalence. Responses are requested by February 25, 2008. CESR will consider the views received in developing its advice to the European Commission. The Commission plans to make its decisions by July 1, 2008 regarding the equivalence of third country (non-EU) GAAP under the Prospectus and Transparency Directives.

Review of IASB Standards and Interpretations

Over the past 2 years, the International Accounting Standards Board (IASB) has issued a number of new and revised Standards and Interpretations. Some of these are significant – others address matters of detail. Deloitte’s IFRS Global Office has published a special edition of the IAS Plus Newsletter titled Closing Out 2007. The newsletter summarizes all of the new and revised Standards and Interpretations in effect for December 2007 year ends and beyond. Past IAS Plus Newsletters are also available on the Deloitte website.

Views on IFRS versus US GAAP

The US Securities and Exchange Commission (SEC) is considering accepting financial statements of US companies prepared under International Financial Reporting Standards (IFRS) instead of US GAAP. In August 2007, it issued Concept Release 33-8831: Concept Release on Allowing U.S. Issuers to Prepare Financial Statements in Accordance with International Financial Reporting Standards. The major public accounting firms have expressed their views on the Concept Release (see Deloitte & Touche, Ernst & Young, KPMG and PWC).