Officials of the UK government and influential accountancy body FEE are heaping pressure on the European Commission and the banking community to reach a compromise over IAS 39, the troublesome ...accounting standard. The commission has already stated that it will refuse to endorse the standard unless the presentational issues relating to cash flow hedging in the financial instruments standard are resolved.
After compromise proposals from a French bank to save the notorious IAS 39 were rejected by the standard setter, uncertainty around the controversial standard has deepened. The latest twist increased ...the likelihood that the European Commission would oppose the standard in its current form.
Chaos could greet the introduction of new accounting standards across Europe unless a settlement over accounting rules on financial instruments is reached soon between the European Commission, banks ...and the IASB. The commission is looking to resolve the short-term presentational issues, with a commitment from the IASB to look at further changes in the medium term.
On November 16 the International Accounting Standards Board voted 12-1 in favor of delaying the implementation date of its new accounting standard on business combinations until July 1, 2009. ...Mentioned alongside this administrative burden was the feedback statement to accompany the revisions to International Financial Reporting Standard 3, Business Combinations. In addition to amending IFRS 3, it also revised International Accounting Standard 36, Impairment of Assets; and IAS 38, Intangible Assets.
Accounting
Accountancy SA,
07/2011
Trade Publication Article
The IASB has completed the review of 5 major IFRSs. The new and revised IFRSs include: 1. IFRS 10, Consolidated Financial Statements, 2. IFRS 11, Joint Arrangements, 3. IFRS 12, Disclosure of ...Interests in Other Entities, 4. IAS 27, Separate Financial Statements, and 5. IAS 28, Investments in Associates and Joint Ventures. The IASB has issued IFRS 13 on fair value measurement that will improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across all IFRSs. An amendment to IAS 12(AC 102), Income Taxes: Deferred Tax - Recovery of Underlying Assets, was issued by the IASB.
The International Financial Reporting Interpretations Committee has instructed its staff to finalize a draft interpretation addressing the accounting treatment for distributions of non-cash assets to ...equity holders, under IAS 27, Consolidated and Separate Financial Statements. At the conclusion of the committee's November 1, 2007, debate, a majority of IFRIC members agreed that entities should recognize the difference between the carrying amount of a distributed asset and the dividend actually paid to stockholders in profit or loss.
On November 1, 2007, members of the International Financial Reporting Interpretations Committee agreed the committee would not object to publication of a draft interpretation for public comment on ...customer contributions, interpreting IAS 18, Revenue. On the question of transitional provisions, the interpretative committee, which publishes formal guidance and clarification on international financial reporting standards, said it would not require preparers to implement the upcoming IFRIC retrospectively. The issue raised with IFRIC by a constituent on customer contributions concerns how entities should account for a grant-typically of plant, property, and equipment-from a customer, and specifically how much of a contribution is revenue.
On November 15, 2007, the SEC unanimously approved dropping the requirement that foreign companies filing in the United States reconcile their financial statements with US generally accepted ...accounting principles, provided those companies use international financial reporting standards as issued by the International Accounting Standards Board, effective immediately. However, in a change from its June 15 proposal to drop the reconciliation requirement, the SEC also said it would allow entities to follow the European Commission's November 2004 exception to International Accounting Standard 39, Financial Instruments: Recognition and Measurement, an exception which eliminated the fair value and hedge accounting restrictions from that standard. The European Commission in its comments to the SEC had strongly urged it to adopt what is widely known as the IAS 39 fair value and hedge accounting "carve out."
The Accounting Standards Board (ASB) has rejected industry criticism and a potential conflict with international accounting standards by reaffirming its proposal to discount pension liabilities using ...an upgraded risk-free rate. The ASB had expressed an intention to converge UK Generally Accepted Accounting Principles (GAAP) with the International Accounting Standards Board (IASB) in the next three to four years. This means ASB standards would follow the IAS19 approach of accounting for pension liabilities under fair value.
Portfolio 5104, Revenue Recognition: International Accounting Standards, by Richard C. Jones and Elizabeth K. Venuti, explains examines the general principles of International Accounting Standard 18, ...Revenue, as well as the specific principles related to the sale of goods, the provision of services, and the receipt of interest, royalties, and dividends. It also discusses how these IAS 18 principles apply to the recognition of revenue from the sale of software. The revisions to Portfolio 5115, Business Combinations: Goodwill and Other Intangible Assets covers how goodwill and other intangible assets may be acquired in a business combination, separately, or with other intangible assets.
