Migrating to IFRS

US - Transition to IFRS sparks debate at SEC

2009-11-13T09:12:00.000-05:00

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

2009-11-12T09:03:00.000-05:00

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

2009-11-11T09:08:00.001-05:00

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

2009-11-10T09:40:00.003-05:00

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

2009-11-09T09:11:00.001-05:00

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

2009-11-07T09:59:00.014-05:00

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

2009-11-06T09:02:00.002-05:00

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

2009-11-05T09:07:00.001-05:00

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

2009-11-04T09:04:00.001-05:00

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?

2009-11-03T09:01:00.001-05:00

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

2009-11-02T09:28:00.001-05:00

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

2009-10-30T21:32:00.000-04:00

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

2009-10-29T09:34:00.001-04:00

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

2009-10-28T09:06:00.001-04:00

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

2009-10-27T09:17:00.001-04:00

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

2009-10-26T09:09:00.001-04:00

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

2009-10-23T09:44:00.001-04:00

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

2009-10-22T09:34:00.001-04:00

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)

2009-10-21T09:06:00.002-04:00

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

2009-10-20T09:41:00.001-04:00

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

2009-10-19T09:01:00.001-04:00

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

2009-10-18T09:02:00.001-04:00

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

2009-10-17T09:41:00.001-04:00

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

2009-10-16T09:25:00.001-04:00

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

2009-10-15T09:12:00.002-04:00

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.)