Monthly roundup - January 2010Staying on top of developments |
In this edition:
- Monthly highlight: ASIC releases review outcomes and December focus
- New pronouncements
- Standard-setter meetings
- New Deloitte publications
- Other developments
Monthly highlight: ASIC releases review outcomes and December focus
The Australian Securities & Investments Commission (ASIC) has released the findings from its review of 30 June 2009 financial reports and its recommended areas of focus for 31 December 2009 financial reports.
Some of the key areas noted include:
- Going concern – particularly around funding requirements and keeping the market informed
- Asset impairment – possibility of additional write downs, use or realistic growth and discount rates and complying with disclosure requirements
- Fair value – investment properties, ‘significant or prolonged’ criteria for available for sale assets, use of fair value for intangible assets
- Revised accounting standards – ASIC’s intended focus on new or revised standards on segment reporting, business combinations, consolidation and presentation of financial statements
- Other areas – wide range of topics including off-balance sheet exposures, financial instrument disclosures, significant judgements, key assumptions and sources of estimation uncertainty.
These areas are largely consistent with prior periods and provide directors, preparers and auditors with a good starting point in assessing the veracity of December financial reports. While we agree with many of ASIC’s views, contrary or additional matters may arise – for example the need to consider impairment reversals (other than for goodwill) may be necessary in some industry sectors, and earnings per share calculations may be impacted by the bonus element in discounted capital raisings and options coming into the money.
More information: ASIC media release, What’s new in the 31 December 2009 financial reporting cycle, the next wave of IFRS.
New pronouncements
(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 2009 financial reporting cycle summary)
International Accounting Standards Board (IASB)
| Pronouncement | Key dates | More information |
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IASB ED/2010/1 Measurement of Liabilities in IAS 37 - Proposed amendments to IAS 37 Limited re-exposure of the proposed measurement requirements for non-financial liabilities. Confirms an ‘expected value’ approach to measurement and requires the inclusion of hypothetical subcontractor profit margins in some cases. |
Comments close to the IASB on 12 April 2010 |
IAS Plus Update Newsletter (PDF 89kb) |
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Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters - Amendment to IFRS 1* Provides additional exemption on IFRS transition in relation to IFRS 7 Financial Instruments: Disclosures. To avoid the potential use of hindsight and to ensure that first-time adopters are not disadvantaged as compared with current IFRS preparers, the IASB decided that first-time adopters should be permitted to use the same transition provisions permitted for existing preparers of financial statements prepared in accordance with IFRSs that are included in Improving Disclosures about Financial Instruments (Amendments to IFRS 7). |
Applicable for annual periods beginning on or after 1 July 2010 | IASB Press Release (PDF 100kb) |
* equivalent pronouncement not yet issued by AASB
Australian Accounting Standards Board (AASB)
| Pronouncement | Key dates | More information |
|
ED 191 Measurement of Liabilities in AASB 137 (Limited re-exposure of proposed amendment to AASB 137) Australian equivalent to IASB ED/2010/1 above. |
Comments close to the AASB on 15 March 2010 and the IASB on 12 April 2010 |
IAS Plus Update Newsletter (PDF 89kb) ED 191 (PDF 293kb) |
Standard setter meetings
(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)
| Meeting | Highlights | More information |
| IASB meeting 5 January 2010 (additional meeting with FASB) |
A special meeting held to advance the joint projects on leases (scope exemptions for sales and purchases of the underlying assets) and insurance (unbundling, embedded derivatives and reporting performance) | |
| IFRIC meeting 7-8 January 2010 | IFRIC has been requested by the IASB to consider constituent comments on the annual improvement process. As this meeting, IFRIC debated the administrative process issues and began considering various amendments. Other topics discussed share-based payments, stripping costs in the mining industry and various agenda decisions. | |
| IASB meeting 18-21 January 2010 (included a joint meeting with the FASB) |
Highlights include:
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New Deloitte publications
(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 IAS Plus Update Newsletters)
IFRS publications
- Illustrative IFRS financial statements including IFRS 9 (PDF version 598kb, Word version 464kb)
- Issue 10 of the Insurance Accounting Newsletter (PDF 118kb) - focuses on decisions made on the insurance project during the joint meetings of the FASB and the IASB in December 2009 and January 2010
Other publications of interest
- Deloitte LLP (United States) Heads Up: FASB proposes amendments to subsequent-events disclosure requirements
- Deloitte LLP (United States) Heads Up: FASB updates oil and gas reserve estimation and disclosure requirements
- Deloitte LLP (United States) Heads Up: FASB clarifies scope of decrease-in-ownership provisions in ASC 810-10
- Deloitte LLP (United States) Heads Up: FASB deliberates approach to accounting for credit impairment and interest income
- Deloitte LLP (United States) Heads Up: SEC issues compliance and disclosure interpretations on non-GAAP measures - see also SEC Guidance on Non-GAAP Financial Measures (PDF 48kb)
- Deloitte LLP (United States) has published A Closer Look at Share-based Payment Plans and IFRS: Accounting Differences that Matter (PDF 908k)
Other developments
(A brief listing of other financial reporting developments during the month. A full summary of all IFRS-related developments can be found in our January historical summary on IAS Plus)
- A number of ASX Listing Rule amendments came into effect on 11 January 2010, covering corporate governance, backdoor listings, quarterly reporting by mining entities, dividend announcements and other topics (ASX Companies Update 01/10)
- The Minister for Financial Services, Superannuation and Corporate Law has announced proposed changes to the law to strengthen the Australian Securities and Investment Commission's investigative powers and increase penalties for market related offences (Press release)
- In addition to the IASB's regular monthly meeting on 15-19 February 2010, the IASB will hold two special joint meetings with FASB at the IASB's offices in London on 2 and 10 February
- The United Kingdom Financial Reporting Council (FRC) has issued a study Accounting for Acquisitions (PDF 223kb) examining the quality of accounting and reporting under IFRS 3 Business Combinations. Companies told the FRC that acquisition accounting is costly and difficult, and at the same time investors said that the resulting information is not useful
- The United Kingdom Financial Reporting Review Panel (FRRP) has issued a Statement 'FRRP Highlights the Challenge of Implementing New Segmental Reporting Requirements' (PDF 36kb) expressing concern about how companies are reporting the performance of key parts of their business in the light of the introduction of IFRS 8 Operating Segments.
