Monthly roundup - February 2010
Staying on top of developments
In this edition:
- Monthly highlight: AASB’s Reduced Disclosure Regime (RDR) is no laughing matter
- New pronouncements
- Standard-setter meetings
- New Deloitte publications
- Other developments
On Friday 26 February, the AASB released its finalised proposals for a new differential reporting regime in Australia – the ‘Reduced Disclosure Regime’ (RDR). In addition to a finalised Exposure Draft, ED 192 Revised Differential Reporting Framework, the AASB formally released its Consultation Paper Differential Financial Reporting – Reducing Disclosure Requirements, which was originally issued in December 2009 in draft form.
The proposals would effectively eliminate the ‘reporting entity concept’ and instead introduce a ‘Reduced Disclosure Regime’ (RDR). The entities most impacted by the proposals include:
- For-profit reporting entities without ‘public accountability’ and not-for-profit entities will benefit from a significantly reduced disclosure burden
- Entities currently preparing special purpose financial reports, including wholly-owned subsidiaries will face a significantly increased disclosure burden.
The AASB hopes to finalise the proposals in time for them to be early adopted for 30 June 2010. However, mandatory application of the regime will not be required until annual reporting periods beginning on or after 1 July 2012. Comments on the proposals close on 23 April 2010.
The proposals promise a substantial shake-up of the way in which entities prepare and present their financial statements.
Read our analysis of the AASB’s proposals in Accounting alert 2010/02.
(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|
Working draft of IFRS X Liabilities (proposed replacement for IAS 37 Provisions, Contingent Liabilities and Contingent Assets)*
The IASB issued a limited re-exposure of the proposed measurement requirements for non-financial liabilities in January.
To enable interested parties to see the revised measurement guidance in the context of the proposed new IFRS as a whole, the Board has prepared a working draft of the IFRS.
The IFRS is expected to be completed and issued during 2010.
Comments on ED/2010/1 (measurement aspects) close to the AASB on 15 March 2010 and to the IASB on 12 April 2010
Working draft (PDF 243kb)
IAS Plus Update Newsletter (PDF 89kb)
* equivalent pronouncement not yet issued by AASB
Australian Accounting Standards Board (AASB)
|Pronouncement||Key dates||More information|
ED 192 Revised Differential Reporting Framework, AASB Consultation Paper Differential Financial Reporting – Reducing Disclosure Requirements
Finalised proposals for a revised differential reporting regime. The proposals would effectively eliminate the ‘reporting entity concept’ and instead introduce a ‘Reduced Disclosure Regime’ (RDR) as a second tier of reporting in Australia.
|Comments close on 23 April 2010||
AASB ED 192 (PDF 529kb)
AASB Consultation Paper (PDF 196kb)
Invitation to Comment ITC 22 'Request for Comment on IPSASB Consultation Paper Reporting on the Long-Term Sustainability of Public Finances’
Recommends practice for reporting by governments on the long-term sustainability of public finances in general purpose financial reports, either in additional statements to their financial statements or in narrative reporting.
|Comments close to the AASB on 1 April 2010 and IPSASB by 30 April 2010||ITC 22 (PDF 642kb)|
AASB 2010-1 Amendments to Australian Accounting Standards - Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters
Provides additional exemption on transition in relation to AASB 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-compliant preparers.
|Applies to annual reporting periods beginning on or after 1 July 2010||
AASB 2010-1 (PDF 77kb)
IAS Plus Update Newsletter (PDF 75kb)
(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)
|IASB meeting 2 February 2010
(additional meeting with FASB)
|A special joint meeting held to discussion leases (definition), statement of comprehensive income proposals (one statement) and hedging (objective of hedge accounting).|
|AASB meeting 3-4 February 2010||The AASB set timelines and objectives in a number of key projects, many of which are due to be completed in the near term: the new differential reporting regime, New Zealand convergence and superannuation fund accounting.||
AASB Action alert (PDF 82kb)
|IASB meeting 10 February 2010
(additional meeting with FASB)
|A special mostly joint meeting to discuss insurance contracts (accounting for reinsurance contracts), classification and measurement of financial liabilities and redeliberation of the annual improvements proposals.|
|IASB meeting 15-19 February 2010
(included a joint meeting with the FASB)
IASB Update (PDF 60kb)
(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)
- iGAAP 2010–A Guide to IFRS Reporting – our flagship guide to IFRS is available for purchase at www.lexisnexis.co.uk/deloitte
- Issue 11 of the Insurance Accounting Newsletter (PDF 105kb) – focuses on the discussions held in the three hour long joint IASB-FASB meeting of 19 January and the subsequent FASB meeting on 27 January
Other publications of interest
- Property Intellectual – Simplifying the taxation of Controlled Foreign Companies (CFC's)
- Deloitte (UK) publication: Measuring by halves - Surveying half-yearly financial reporting
- Deloitte's IPSAS Summary Booklet (PDF 414kb) – summarising the provisions of all International Public Sector Accounting Standards (IPSAS) issued by IFAC's International Public Sector Accounting Standards Board (IPSASB) as of 1 February 2010, namely IPSASs 1 to 31
- Deloitte LLP (United States) has published an Audit Committee Brief (PDF 116kb) newsletter on SEC Focus Areas.
- Deloitte LLP (United States) Heads Up newsletter ‘SEC Publishes Work Plan for Moving Forward With IFRS for U.S. Issuers’
- Deloitte LLP (United States) Heads Up newsletter ‘FASB Finalizes ASU on Subsequent Events’
- Deloitte LLP (United States) Heads Up newsletter ‘SEC Issues Interpretive Guidance on Disclosures Related to Climate Change’ (PDF 11kb):
- Deloitte LLP (United States) publication IFRS: What Should Boards and Audit Committees be Considering Now? (PDF 623kb)
Deloitte comment letters
- Deloitte comment letter (PDF 30kb) on IFRIC tentative agenda decision on IAS 21 – determination of functional currency of an investment company holding
- Deloitte comment letter (PDF 28kb) on IFRIC tentative agenda decision on IAS 32 – shareholder discretion
- Deloitte comment letter (PDF 29kb) on IFRIC tentative agenda decision on IAS 39 – unit of account for forward contracts with volumetric optionality
- Deloitte comment letter (PDF 27kb) on IFRIC tentative agenda decision on IAS 36 – interaction with transition requirements of IFRS 8.
(A brief listing of other financial reporting developments during the month. A full summary of all IFRS-related developments can be found in our February historical summary on IAS Plus)
- The AASB is holding roundtable discussions on exposure draft ED 189 Financial Instruments: Amortised Cost and Impairment in Melbourne (22 March) and Sydney (25 March) (Details)
- ASIC has released guidance in the form of an information sheet clarifying how credit ratings issued by licensed credit rating agencies (CRAs) may be disclosed in Australia (ASIC press release)
- The Minister for Financial Services, Superannuation and Corporate Law has announced that the Government proposes to streamline long term superannuation disclosure requirements (Press release)
- The Minister for Financial Services, Superannuation and Corporate law announced the release of a proposals paper, Access to Company Registers and Related Issues – the reforms are intended to continue to facilitate legitimate and beneficial access to the registers of companies and registered schemes whilst ensuring that improper uses of registers are eliminated (Details)
- The IASB and FASB will hold special joint Board meetings at the offices of the IASB in London on Wednesday 3 March 2010 and Thursday 11 March 2010
- The International Public Sector Accounting Standards Board (IPSASB) is seeking comments on a proposed standard on accounting for service concession arrangements by the grantor (IPSASB press release, PDF 35kb)
- International Valuation Standards Council (IVSC) has released a new Guidance Note (GN 17) The Valuation of Investment Property under Construction (IVSC Press Release, PDF 23kb)
- The US Securities and Exchange Commission met on 24 February 2010 to discuss issues relating to the use of IFRSs by public companies in the United States. The Commission approved a 71-page Commission Statement (PDF 349kb) that provides an overview of the Commission's IFRS activities, summarises some of the public feedback on the proposed IFRS roadmap, and outlines an approach going forward
- The Trustees of the IASC Foundation, the oversight body of the IASB, have completed part two of the 2008-2010 Constitution Review – announcing a number of changes aimed at enhancing public accountability, stakeholder engagement, and operational effectiveness (IASCF press release, PDF 109kb).