Monthly roundup - November 2010
Staying on top of developments
November 2010 edition
Issued 01 December 2010
In this edition:
- Monthly highlight: Resources for the December 2010 financial reporting season, revised IASB work plan
- New pronouncements
- Standard-setter meetings
- New Deloitte publications
- Other developments
Monthly highlight: Resources for the December 2010 financial reporting season, revised IASB work plan
December 2010 resources
As we march quickly on towards the festive season and, we remind you of some of the resources we have available to assist with the December financial reporting season:
- What’s new in the December 2010 financial reporting cycle – a quick summary of new and revised pronouncements and other relevant developments, updated throughout the reporting season as changes occur
- December 2010 Half-Year Model Financial Statements – illustrating disclosures complying with AASB 134 Interim Financial Reporting at December 2010
- Our global model financial statements and checklists – ensuring compliance with IFRSs in full year financial statements (with updated versions for 31 December 2010). Our June 2010 annual model financial statements and model special purpose financial statements are also available
- Reduced Disclosure Requirements - Model Financial Statements - for entities early adopting the ‘Reduced Disclosure Regime’ (RDR) for financial years ending on 30 June 2010 or later periods.
Revised IASB work plan
On 29 November, the IASB and FASB published an updated 'Progress report' on their convergence efforts. The IASB has updated its Work Plan to reflect the changes and provide more detail of the expected timing of pronouncements.
The revised project plan reveals the deferral of many projects to the second half of 2011 (or beyond) to allow a clear focus on the major core projects expected to be finalised by June 2011 – including projects on financial instruments, leases, revenue recognition and consolidation. With the exception of the imminent release of an exposure draft on hedge accounting, major exposure drafts and finalised standards are not expected during the remainder of 2010. However, a rush of major changes is expected in the lead up to the June 2011 deadline.
The June 2011 deadline is important due to the changes in the IASB membership occurring at the time and the pending decision on IFRS adoption in the United States. The application of the various new pronouncements is dependent on the current IASB and FASB consultation on effective dates and transition, but mandatory application is not expected before 2013.
(A listing of new accounting standards, interpretations, exposure drafts, discussion papers and similar documents issued during the month by the AASB and IASB/IFRIC, along with other IFRS-related documents by other bodies that may be of interest and related links to Deloitte publications and alerts. See also our What’s new in the December 2010 financial reporting cycle summary.)
Australian Accounting Standards Board (AASB)
|Pronouncement||Key dates||More information|
AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets
Amends disclosure requirements about transfers of financial assets.
The amendments are designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations, factoring of receivables), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period.
|Applicable for annual reporting periods beginning on or after 1 July 2011 and permits early adoption.||
IFRS in Focus newsletter (PDF 82kb)
AASB 2010-6 (PDF 62kb)
AASB 2010-5 Amendments to Australian Accounting Standards.
The Standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of International Financial Reporting Standards by the IASB.
These amendments have no major impact on the requirements of the amended pronouncements.
|Applicable for annual reporting periods beginning on or after 1 January 2011 and early adoption is permitted.||AASB 2010-5 (PDF 94kb)|
Tier 2 Supplement to ED 198 Revenue from Contracts with Customers
It sets out the disclosures proposed in ED 198 (which incorporates IASB ED/2010/6 Revenue from Contracts with Customers) and includes proposals about whether each disclosure should be included in Tier 2 reporting requirements under the Reduced Disclosure Regime (RDR).
|Comments on the supplement are due to the AASB by 31 January 2011||Tier 2 Supplement to ED 198 (PDF 62kb)|
Tier 2 Supplement to ED 204 Deferred Tax: Recovery of Underlying Assets (proposed amendments to AASB 112)
It sets out the disclosure proposed in ED 204 (which incorporates IASB ED/2010/11 Deferred Tax: Recovery of Underlying Assets (proposed amendments to IAS 12)) and includes a proposal about whether it should be included in Tier 2 reporting requirements under the Reduced Disclosure Regime (RDR).
|Comments on the supplement are due to the AASB by 31 January 2011||Tier 2 Supplement to ED 204 (PDF 44kb)|
Request for Comment on IASB Request for Views on Effective Dates and Transition Methods
It incorporates the IASB’s Request for Views on Effective Dates and Transition Methods.
With a number of major projects planned to be completed in 2011, the IASB and FASB are seeking views on whether or how to sequence effective dates in order to reduce the burden to interested parties. Feedback from the consultation will inform the boards as they jointly develop an implementation plan for those new standards that helps stakeholders to manage both the pace and cost of change.
|Comments are due to the AASB by 31 December 2010 or to the IASB by 31 January 2011.||
IFRS in Focus newsletter (PDF 97kb)
Request for comment (PDF 117kb)
(A listing of meetings of various standard setters during the month or where documents were issued during the month in respect of the previous month’s meetings, with links to our analysis, agenda papers and so on)
|AASB meeting 27-28 October 2010||Much of the meeting was a joint meeting with the New Zealand Financial Reporting Standards Board (FRSB). Amongst other topics, the Boards discussed trans-Tasman convergence and their views on a number of IASB proposals.||Accounting Alert 2010/12|
|IFRIC meeting 4-5 November 2010||
The topics discussed were as follows :
IFRIC Review (PDF 77kb)
|IASB special meeting 10- 12 November 2010||
The topics discussed were as follows:
|IASB regular meeting 16 -18 November 2010||
The topics discussed included
(Key IFRS-related and other publications issued by Deloitte during the month, not covered elsewhere. You can find full details and back issues of our various publications by following these links: Accounting alerts, IAS Plus publications and IFRS in Focus Newsletters)
- December 2010 Half-Year Model Financial Statements (PDF 1,371kb) illustrating disclosures to comply with AASB 134 Interim Financial Reporting
- Reduced Disclosure Requirements - Model Financial Statements (PDF 1,019kb) - for entities early adopting the ‘Reduced Disclosure Regime’ (RDR) for financial years ending on 30 June 2010 or later periods
- Deloitte global IFRS Presentation and Disclosure Checklist 2010 (PDF 1,247kb)
- Deloitte global IFRS Illustrative Financial Statements for 2010 (PDF file, 1,095kb)
- CFO Brief - Gearing up for change: New Lease Accounting Proposals (PDF 2,831kb) provides an overview of the IASB's leases proposals, the likely impact on financial metrics (including the impacts on expense profiles), stakeholder impacts and a summary of matters for CFOs(or their equivalents) to consider
- IFRS on Point IFRS Accounting Developments and Information: October 2010 (PDF 76kb)
- IASB Project Insights provides a quick overview of IASB projects and summary, by project, of current status, key decisions and proposals, key considerations and the next steps
- The Bruce Column ‘SEC report and debate over IFRS in US’
- The Bruce Column ‘Changing the Thinking on Hedging’.
Other publications of interest
- IFRS: An Update for Boards and Audit Committees (PDF 738kb), published by Deloitte (US) as a guide to help boards and audit committees stay abreast of the latest IFRS developments and understand their potential implications
- EITF Snapshot (PDF 104kb) provides highlights and summary of FASB’s Emerging Issues Task Force meeting.
- Heads Up Newsletter (PDF 126kb) explains the four issues discussed at FASB's Valuation Resources Group meeting
- Heads Up Newsletter (PDF 136kb) Constituents Share Views on the FASB’s AFI Project
- Energy & Resources 2010 Accounting, Financial Reporting, and Tax Update - an annual industry publication by Deloitte (US) (PDF 655kb)
- SEC Comment Letters — Including Industry Insights: A Snapshot of Current Themes (PDF 1,371kb) by Deloitte (US)
Deloitte comment letters
- Deloitte comment letter on Exposure Draft ED/2010/11 Deferred Tax: Recovery of Underlying Assets (PDF 58kb)
- Deloitte comment letter on Exposure Draft ED/2010/12 Severe Hyperinflation – Proposed Amendments to IFRS 1 (PDF 10kb)
- Deloitte comment letter on Draft IFRIC Interpretation DI/2010/1 Stripping Costs in the Production Phase of a Surface Mine (PDF 90kb)
- Deloitte comment letter on the IFRS Foundation Trustees’ Invitation to Comment, The Annual Improvements Process: Proposals to amend the Due Process Handbook for the IASB (PDF 57kb).
(A brief listing of other financial reporting developments during the month. A full summary of all IFRS-related developments can be found in our November historical summary on IAS Plus. You can also subscribe to our Deloitte IAS Plus RSS feed to be kept informed of developments as they happen)
- The IASB/FASB lease team is conducting a lease workshop in Australia at the AASB boardroom on 7 December 2010, as a part of their outreach on the Leases Exposure Draft
- In Focus ASIC update on issues including progress of the new national credit regime, future registry transformation, company financial reporting obligations and ASIC’s compliance program
- ASIC has released its most recent ASX assessment report. The report includes discussion of disclosure obligations in general and specifically in relation to the minimum reporting companies for mining companies (ASIC press release)
International Accounting Standards Board
- The IASB has announced additional meetings on 1 December (to discuss financial instruments impairment), 3 December (income taxes) and 8 December (financial instruments impairment)
- Summary of October 2010 Trustees' meeting
- IFRS Taxonomy 2010 updated for enhanced derecognition disclosure requirements for transfer transactions of financial assets
- 2011 IFRS Consolidated without early application (Blue Book) to be published in December 2010. It will contain all official pronouncements that are mandatory on 1 January 2011
Other global news
- The Asian-Oceanian Standard-Setters Group (AOSSG) has launched its website, making public a number of AOSSG documents, including past submissions and research papers (including an analysis of Islamic finance issues) (IAS Plus article)
- The Asia-Pacific Economic Cooperation forum (APEC) has released its '2010 Economic Policy Report' (prepared by its Economic Committee), which discusses various corporate governance matters, including the international harmonisation of accounting standards (IAS Plus article)
- Following their summit meeting in Seoul on 11-12 November 2010, the leaders of the G20 group of nations have issued a Declaration reaffirming their support for a single set of global accounting standards as a means for strengthening the global financial market infrastructure (IAS Plus article).