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Monthly roundup - April 2012

Staying on top of developments

Author: Deepesh Malik and Debbie Hankey, Accounting Technical Group

April 2012 edition
Issued 04 May 2012

In this edition:

Monthly highlights

What is the state of play in the development of accounting standards?

You may well be asking yourself what has happened to the next wave of significant changes to accounting standards that everyone has been talking about for so long now.

The IASB has released an updated work plan, dated 23 April 2012, which updates the expected timing of various projects and indicates that we are unlikely to see any major new standards this calendar year except maybe for the general hedges amendments for accounting for financial instruments..

The following are the milestones expected to be reached by the end of June 2012:

The projects on leases, revenue, insurance and revisions to classification and measurement of financial instruments will at best see exposure and re-exposure drafts issued before the end of calendar 2012. No time line has been published for the release of amendments to the consolidation standards arising from the investment entities exposure draft.

On some of the other big reporting issues at a recent American Institute of CPAs (AICPA) and Institute of Chartered Accountants of Scotland (ICAS) hosted panel discussion entitled 'Shaping the Future: Lessons from Accounting Standards Leaders' some interesting observations were:

  • US adoption of IFRSs, Sir David claimed that the world is waiting for the US to move and has been doing so for a long time;
  • Integrated reporting, the Chairman of the IASB's IFRS Advisory Council Paul Cherry had to admit that there is a certain reluctance regarding this topic among the Council members; and
  • Political pressure on standard setting processes, Bob Herz stated that it is simply not realistic to wish for a world where politicians do not try to influence standard setting.

We will keep you posted as new developments emerge.

Preparing for the June reporting season 

For those preparing for the June reporting season, we have released the Illustrative General purpose financial reports (June 2012) that illustrates disclosures required in annual financial statements under Australian Accounting Standards and related Australian reporting requirements, for financial years ending on or after 30 June 2012.


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 2011 financial reporting cycle summary.)

Australian Accounting Standards Board (AASB)
Pronouncement Key dates More information

AASB 2012-1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements

Sets out reduced disclosure requirements for Tier 2 entities to apply in relation to AASB 13 Fair Value Measurement and amends reduced disclosure requirements of other Australian Accounting Standards that were amended as a consequence of the issuance of AASB 13

*Early application permitted provided AASB 1053 Application of Tiers of Australian Accounting Standards; AASB 13 Fair Value Measurement; and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 are also adopted

Effective for annual periods beginning on or after 1 July 2013*

AASB 2012-1 (PDF 303kb)

International Accounting Standards Board (IASB)
Pronouncement Key dates More information

No new significant pronouncements were issued by the IASB in April 2012.

   

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 regular meeting
16 - 19 April 2012

Topics discussed were as follows (click on the links for direct access to the Deloitte observer notes for that topic):

Deloitte Observer notes IASB update (PDF 332kb) IASB podcast (mp3)
AASB regular meeting
18 - 19 April 2012

Key issues discussed include:

  • Control in the NFP Public and Private Sectors
  • Income from Transactions of NFP Entities
  • Service Performance Reporting
  • NFP Entities within the General Government Sector
  • Carbon Tax – Government Perspective
  • Reduced Disclosure Regime – Tier 2 Amendments to Standards
  • Differential Reporting Research Project
AASB alert (PDF 312kb)

 

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, IFRS in Focus Newsletters, Webcasts, and Podcasts)

IFRS publications
Comment letters
  • Deloitte comment letter (PDF 44kb) to the European Financial Reporting Advisory Group (EFRAG) and the Organismo Italiano di Contabilita (OIC) on their Discussion Paper Accounting for business combinations under common control
Other publications of interest
  • The Bruce Column Ringing the changes in telecoms accounting discusses the problems with revenue recognition in the telecom business, and the need for a principle based approach that provides flexibility to reflect the nature of industry
Deloitte Webcasts and Podcasts

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 April 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)

Australian-specific topics
  • The Australian Centre for Corporate Social Responsibility (ACCSR) has released a research report 'The state of CSR in Australia: Stakeholders as readers of sustainability reports' on how stakeholders read sustainability reports, how they use them, how this affects an organisation’s reputation, and what causes stakeholders concern (IAS Plus article).
International Accounting Standards Board
  • The IASB and the FASB provided a joint progress report on convergence (PDF 522kb) for consideration at the G20 finance ministers meeting (April 2012).
External webcasts and Podcasts
  • April 2012 IASB meeting podcast (mp3) - summary of the IASB regular meeting held on 16-19 April 2012. The topics covered include financial instruments and insurance contracts
  • April 2012 IASB Education session (mp3) discusses the Classification & Measurement aspects of financial instruments currently being deliberated by the IASB and the FASB to reduce the key differences.
Other global news
  • The Institute of Chartered Accountants in Scotland (ICAS) has released its findings Making Corporate Reports Relevant (link to ICAS site) as part of the project to improve the quality and usability of financial reports. The report seeks to draw to a conclusion ICAS’ earlier work “Making Corporate Reports Readable” which was issued in 2010 for consultation.

Related links

Related links

  • Monthly roundup - January 2014
    ASIC has extended Class Order [CO 13/1050] which allows issuers of stapled securities (stapled entities) to continue to present consolidated or combined financial statements
  • Monthly roundup - January 2012
    Financial reporting developments during January 2012. Monthly highlights include the IASB and the FASB discussion to reduce differences in classification and measurement models for financial instruments.
  • Monthly roundup - July 2013
    Financial reporting developments during July 2013. Monthly highlights discuss the ASIC areas of focus for July 2013 reporting period.
  • Monthly roundup - June 2013
    Financial reporting developments during June 2013. Monthly highlights discuss the ASIC areas of focus for June 2013 reporting period.
  • Monthly roundup - January 2009
  • Monthly roundup - March 2011
    Financial reporting developments during March 2011. Monthly highlight discusses the updated IASB work plan, ASIC's proposed guidance on additional financial information and a joint UK/NZ project to reduce disclosures under IFRS.
  • Monthly roundup - March 2009
  • Monthly roundup - August 2010
    Summary of developments in financial reporting during August 2010. Monthly highlight discusses the possible impact of changes in the IASB and FASB chairs on global standard setting.
  • Monthly roundup - June 2010
    Summary of developments in financial reporting during June 2010. Monthly highlight discusses recent financial reporting reform.
  • Monthly roundup - May 2010
    Summary of developments in financial reporting during May 2010. Monthly highlight discusses the financial reporting impacts of recent and proposed tax changes.

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