Announcing a new IFRS Publication – 2010 IFRS Consolidated without early application

On Friday 22 January 2010 the IASC Foundation will launch a new publication, 'IFRS, Consolidated without early application'.

This new publication is different from our annual IFRS Bound Volume because it will consolidate only those IFRSs with an effective date no later than 1 January 2010.

The annual IFRS Bound Volume will follow the practice of previous years by consolidating all IFRSs issued at 1 January 2010, including those with an effective date later than 1 January 2010, and it will exclude IFRSs that are being superseded, even though they may still be applicable.

To distinguish the new publication from the annual Bound Volume, the cover will be blue, as shown below.

The annual Bound Volume will be published in two parts this year. Its cover will remain red (as in 2009) and our Education book, 'A Guide through IFRS' will remain green (as in 2009). Here at the IASC Foundation we are referring to our publications by colour - to the new publication as the 'Blue Book' and to the Bound Volume as the 'Red Book'. Please feel free to refer to the publications by the colour of their cover when corresponding with us.

The contents and timing of the annual Bound Volume (Red Book) will follow past practice

To give an example, in November 2009 the IASB issued IFRS 9 Financial Instruments with an effective date of 1 January 2013. This new IFRS, together with its copious amendments to other IFRSs, will be consolidated in the 2010 Bound Volume (the Red Book), because it was issued before 1 January 2010. It will not be included in the new Blue Book, because its effective date means that it is not required for annual reporting periods beginning on 1 January 2010.

The new Blue Book has been created as a direct response to comments from practitioners currently reporting under IFRSs. Those seeking a single volume obtaining all the requirements for the current year will value the Blue Book.

The annual IFRS Bound Volume (the Red Book) will, as in previous years, be available towards the end of the first quarter, but this year it will, for convenience, be presented in two parts.

The annual Bound Volume will continue to be the basis for IFRS Translation

Because the annual Red Book will contain the latest text of IFRSs issued by the IASB, it will continue to be the basis for IFRS translation. Translation for the purposes of IFRS adoption will necessarily require updated translations of the Red Book text. A need may also occur in some languages for translations of the Blue Book text, and we shall meet those needs as they arise.

Visit the shop to buy the Red Book in here, or the Blue Book in here, and the Green Book in here

Three New Standards on Financial Instruments

(New York/January 19, 2010) -  The International Public Sector Accounting Standards Board (IPSASB) has published three new standards that cover all aspects of the accounting for and disclosure of financial instruments: International Public Sector Accounting Standard (IPSAS) 28, Financial Instruments: Presentation; IPSAS 29, Financial Instruments: Recognition and Measurement; and IPSAS 30, Financial Instruments: Disclosures. They fill a significant gap in the IPSASB literature.

"These new IPSASs provide a coherent set of requirements that enhance accountability for financial instruments in the public sector; this need was reinforced by the global financial crisis, and the scale and range of interventions made by governments," states Andreas Bergmann, who became Chair of the IPSASB on January 1, 2010.

The three new IPSASs are primarily drawn from the International Accounting Standards Board's standards, but address a number of public sector-specific issues:

• IPSAS 28, Financial Instruments: Presentation, primarily draws on IAS 32 and establishes principles for presenting financial instruments as liabilities or equity, and for offsetting financial assets and financial liabilities.
• IPSAS 29, Financial Instruments: Recognition and Measurement, primarily draws on IAS 39, establishing principles for recognizing and measuring financial assets, financial liabilities, and some contracts to buy or sell non-financial items.
• IPSAS 30, Financial Instruments: Disclosures, draws on IFRS 7 and requires disclosures for the types of loans described in IPSAS 29. It enables users to evaluate: the significance of the financial instruments in the entity's financial position and performance; the nature and extent of risks arising from financial instruments to which the entity is exposed; and how those risks are managed.

These IPSASs address some key public sector issues, including financial guarantee contracts provided for nil or nominal consideration and concessionary loans.

• Financial guarantee contracts provided for nil or nominal consideration have been a feature of government interventions during the global crisis--often, they are for very large amounts and could not be provided by private sector guarantors. IPSAS 29 provides guidance on the accounting treatment of such guarantees, both at initial recognition and subsequently.
• Concessionary loans are granted or received at below market terms, often for social policy objectives. IPSAS 29 provides guidance on the determination of fair value. It also addresses the treatment of the difference between the fair value of a loan and the loan proceeds. IPSAS 30 requires disclosures relating to such loans.

"The IPSASB recognizes the need to closely monitor global developments in the accounting for financial instruments and to evaluate such changes promptly in a public sector context," says Mr. Bergmann, adding that, together with the soon-to-be-issued IPSAS on intangible assets, IPSASs 28-30 represent the substantial attainment of IPSAS convergence with IFRSs (dated December 2008).

IPSASs 28-30 are available to download free of charge from the IPSASB section of IFAC's Publications and Resources site (web.ifac.org/publications). The IPSASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to members and employees.

Source : IFAC.org

IFRS for SMEs Training Material

The International Accounting Standards Committee Foundation (IASC Foundation) today published the first part of its comprehensive set of training materials for the IFRS for SMEs. The free-to-download training material forms part of a range of initiatives undertaken by the IASC Foundation and the International Accounting Standards Board (IASB) to support the widespread adoption of the IFRS for SMEs.

The IFRS for SMEs was published by the IASB in July 2009 following an extensive development programme, including widespread consultation with interested parties. The standard is designed for use by small and medium-sized entities (SMEs), which are estimated to constitute more than 95 per cent of all companies.

The training material is designed to assist companies and accounting practitioners in applying the standard. It will also assist educators in teaching how to apply the IFRS for SMEs. Once completed, the training material will comprise 35 separate modules—one for each section of the IFRS for SMEs. The first twelve modules are now available for download from the IASB website (http://www.iasb.org/IFRS+for+SMEs/Training+material.htm). The remaining modules will be published in the course of this year as they are completed. Each module guides the learner through the official text, develops the learner’s understanding of the requirements through the use of examples, and points out where significant judgements are required. It also includes questions designed to test the learner’s knowledge of the requirements as well as case studies to develop the learner’s ability to apply the IFRS for SMEs.

The training material is part of a range of measures taken by the IASC Foundation and the IASB to support and facilitate the implementation of the IFRS for SMEs around the world. In particular:

(a) The IASB developed implementation guidance to accompany the IFRS for SMEs, consisting of illustrative financial statements and a presentation and disclosure checklist.

(b) This year, in co operation with regional professional associations and the world’s development agencies, the IASC Foundation will begin a series of regional ‘train the trainers’ workshops. These workshops will focus on building capacity for the implementation of the IFRS for SMEs, particularly in developing and emerging economies. The first series of workshops, which has been organised jointly with the Confederation of Asian Pacific Accountants, will take place in India and Malaysia in January 2010. Further workshops are being planned jointly with regional professional associations in Africa, the Caribbean and elsewhere.

(c) The Trustees of the IASC Foundation will finalise, later this month, the terms of reference and operating procedures of the SME Implementation Group.

Source : www.iasb.org

2009 Russian translation of IFRS

I’ve just got an alerted email from IASB.org regarding on the publication of 2009 Russian translation of IFRS.

The IASC Foundation is pleased to announce the publication of the following:

2009 Russian translation of International Financial Reporting Standards

These Russian files correspond to the text used for the adoption of IFRSs into law, and do not include the accompanying material such as the Bases for Conclusions and Implementation Guidance.

Access the documents online

• The Russian translation can be accessed online via the "IFRS" section on www.iasb.org. You will need to be a registered user to access the translation - to register click here.
• eIFRS/Comprehensive subscribers can access the Russian translation in the secure eIFRS subscriber area after logging in with their username and password and then navigating to the Latest Additions section.

The IASB Latest Update on January 5, 2010

This IASB Update is a staff summary of the tentative decisions reached by the Board at a public meeting. As a project progresses, the Board can, and sometimes does, modify its earlier tentative decisions. Tentative decisions do not change existing requirements until those decisions are incorporated in a new or amended standard.

The International Accounting Standards Board met in London on 5 January 2010 for an additional Board meeting, when they discussed Leases and Insurance contracts. The US Financial Accounting Standards Board (FASB) participated via video conference.

• Leases
• Insurance contracts

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Leases

At their October 2009 joint meeting, the boards tentatively decided to exclude from the scope of the proposed new leases requirements contracts that represent the purchase or sale of the underlying asset. At this meeting, the boards discussed the situation when a contract is the purchase or sale of the underlying asset.

The boards tentatively decided that:

1. Contracts that transfer control of the underlying asset should be excluded from the scope of the proposed new leases requirements.

2. The proposed new leases requirements should provide indicators to help a reporting entity determine whether control has been transferred.

3. Management of the reporting entity should exercise judgement and consider all relevant facts and circumstances when determining whether control of the underlying asset has been transferred.

4. Situations in which control of the underlying asset has normally been transferred include:

    a. Contracts where the title to the underlying asset automatically transfers

    b. Contracts that include a bargain purchase option.

The boards instructed the staff to provide additional analysis on the definition of control, how control would be assessed, and other possible indicators of control in the context of a lease contract.

Go to the Leases project page

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Insurance contracts

The boards discussed:

• whether to account for insurance, investment and service components included in an insurance contract as if those components were separate contracts (unbundling).

• presentation of the performance statement.

• derivatives embedded within a host insurance contract.

Unbundling

The boards discussed whether to account for components of an insurance contract as if those components were separate contracts (ie unbundle those components). The IASB decided tentatively that, for recognition and measurement, an insurer should:

• unbundle a component of an insurance contract if it is not interdependent with other components of that contract.
• not unbundle a component that is interdependent.

The FASB tentatively decided that if unbundling is not required for recognition and measurement, it should not be a permitted option. The FASB asked staff to clarify further how unbundling for recognition and measurement relates to (a) the definition of an insurance contract and the scope of the proposed standard, (b) the presentation models for the performance statement, and (c) bifurcation of embedded derivatives.

Presentation of the statement of comprehensive income

The boards discussed five models for the presentation of the statement of comprehensive income for insurance contracts and:

• tentatively rejected a model that recognises revenue on the basis of written premiums (rather than recognising revenue as the insurer performs under the contract).
• asked the staff to clarify further the remaining models.

Embedded derivatives

The boards discussed two approaches to measuring derivatives embedded in insurance contracts:

• Measure at fair value (using existing guidance on when to bifurcate)
• Measure consistently with the measurement used for the host insurance contract

Views diverged and no clear consensus emerged. The boards will return to the topic of embedded derivatives at a future meeting.

Next steps

The boards will continue their discussion of this project at their joint meeting in January.

Go to the Insurance contracts project page

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Future Board meetings

The Board will meet in public session on the following dates in 2010. Meetings take place in London, UK, unless otherwise noted.

• 18 - 22 January
• 15 - 19 February
• 2 February (PM)
• 10 February (PM)
• 15 - 19 March
• 22 - 24 March
• 19 - 23 April
• 17 - 21 May
• 14 - 18 June
• 19 - 23 July
• 13 - 17 September
• 18 - 22 October
• 25-27 October (Norwalk)
• 15 - 19 November
• 13 - 17 December

Please note that we are likely to add some meeting dates. We will include any such additional dates in future issues of IASB Update.

Go to the meetings section of the IASB website

IASB re-exposes proposals on measuring liabilities for asset decommissioning, legal disputes and similar items

This is the Press Release from IASB on January 5, 2010, concerning the publication of ED of revised version of IAS 37.

The International Accounting Standards Board (IASB) today published for public comment an exposure draft of one section of a replacement for IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The section contains revised proposals for measuring liabilities within the scope of IAS 37.

IAS 37 applies to liabilities not covered by other accounting standards, such as liabilities to decommission assets and liabilities arising from legal disputes. The IASB previously published proposals to amend IAS 37, including revised measurement requirements. In the light of the comments received the IASB identified a need to develop more guidance on one part of those proposals: the measurement of these liabilities. The proposals published today seek public comment on that draft guidance.

To enable interested parties to see the proposed measurement section in the context of the proposed standard as a whole, the IASB is preparing a working draft of the entire standard and aims to post a copy on its website in February 2010. Until that working draft becomes available, the Liabilities - Amendments to IAS 37 project page on http://go.iasb.org/Liabilities provides a link to a decision summary that contains both the measurement proposals and the other decisions that will appear in the new standard.

The IASB aims to complete the standard, including final guidance resulting from today’s proposals, in 2010.

An IASB ‘Snapshot’, a high level summary of the proposals, is available to download free of charge from the project section of the IASB website.

The IASB invites comments on the exposure draft, Measurement of Liabilities in IAS 37, by 12 April 2010. The exposure draft is available on the ‘Open for Comment’ section on www.iasb.org from today.

Read the original page in here