Monthly roundup - April 2012
Staying on top of developments
April 2012 edition
Issued 04 May 2012
In this edition:
- Monthly highlights
- New pronouncements
- Standard setter meetings
- New Deloitte publications
- Other developments
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:
- Finalised pronouncements from the annual improvements project (2009-2011 cycle) and the proposed amendments to the transitional requirements in IFRS 10 Consolidated Financial Statements
- Review draft of the general hedge accounting chapter of IFRS 9 Financial Instruments (expected to be finalised in the second half of 2012)
- Exposure draft arising from the annual improvements project (2010-2012 cycle)
- Feedback statement from the IASB's agenda consultation 2011
- Request for views arising from the post-implementation review of IFRS 8 Operating Segments.
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.
(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.
(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 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:
|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 on Point — IFRS Accounting Developments and Information: March 2012 (PDF 77kb) highlights the month’s important IFRS developments and information
- IASB Project Insights provide a quick overview of the current status of the key projects of the IASB. New updates posted in April 2012 include: Insurance contracts (PDF 193kb), Financial Instruments - Classification and Measurement (PDF 62kb) and Financial Instruments - Impairment (PDF 76kb)
- IFRIC review - March 2012 (PDF 87kb) provides a summary of the discussions of the March 2012 IFRS Interpretations Committee meeting
- Heads Up — Comments on the revised exposure draft on revenue recognition (PDF 191kb) summarises the general themes of the comment letters on the FASB’s and IASB’s jointly issued revised exposure draft (ED) on revenue recognition as well as responses to the revised ED’s questions for respondents
- IFRS Industry Insights: The Revenue Recognition Project
- 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
- Deloitte podcasts (mp3) - an update on the status of the IASB projects on the topics below:
- Insurance webcast 28 — Preparation for an OCI decision continues in the midst of several minor converged decisions (link to IAS plus) reports on the insurance project joint meetings between the IASB and the FASB during April 2012, providing a summary of progress and key 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)
- 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.