Financial Reporting

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Archives

April 2012

Upcoming financial reporting seminars
IFRS: Back to Basics 2012
Back to Basics is SAICA's most comprehensive IFRS CPD event of the year that covers the core standards of IFRS from the perspective of a refresher course. The seminars will be run in Johannesburg, Durban, Cape Town, Pretoria and Stellenbosch in May and June 2012. Click here to reserve your seat.

News
SA GAAP to be withdrawn
The Companies Act, 2008, has brought about changes to the standard-setting process that has required the continued existence of South African Statements of Generally Accepted Accounting Practice ("SA GAAP") to be re-evaluated. Accordingly, SA GAAP will no longer apply in respect of financial years commencing on or after 1 December 2012. Read more.

Relief provided for first-time adopters
The International Accounting Standards Board (IASB) has issued an amendment that provides first-time adopters with a relief from retrospectively applying IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance and IFRS 9 - Financial Instruments, in respect of government loans with a below market interest rate. are effective for annual periods beginning on or after 1 January 2013 and early application is permitted. Read more.

New IFRS for SMEs training module issued
The IFRS Foundation has issued Module 22 – Liabilities and Equity,of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) training material. Read more.

New member appointed to the IASB
The Trustees of the IFRS Foundation have announced the appointment of Chungwoo Suh as a member of the International Accounting Standards Board (IASB). Dr Suh's initial five-year term will become effective from 1 July 2012 and is renewable for a further three-year term. Read more. 

March 2011

December 2011

Financial Instruments project

Deferral of the mandatory effective date of IFRS 9
The International Accounting Standards Board (IASB) has issued amendments to IFRS 9 – Financial Instruments, that will defer the mandatory effective date of IFRS 9 of 1 January 2013 to 1 January 2015. This will ensure that all phases of IFRS 9 have the same effective date. The amendments will also provide entities with relief from restating comparatives but additional disclosures will be required to assist investors to assess the effect that the initial application of IFRS 9 will have on the classification and measurement of financial instruments. The amendments to IFRS 9 can be downloaded from eIFRS. Earlier application of IFRS 9 is still permitted. Click here for the IASB press release.

Offsetting Financial Assets and Financial Liabilities
Common disclosure requirements for offsetting of financial instruments
The IASB and US Financial Accounting Standards Board (FASB) have published common disclosure requirements that are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company's financial position. The amendments have been issued by the IASB as amendments to IFRS 7 – Financial Instruments: Disclosures, and are effective for annual periods beginning on or after 1 January 2013. The amendments can be downloaded from eIFRS. Click here for the IASB press release.

Clarifying offsetting requirements in IAS 32
The IASB has issued Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32 – Financial Instruments: Presentation, to clarify the offsetting requirements in IAS 32 and to address inconsistencies that currently exist in applying the offsetting criteria. The amendments clarify the meaning of 'currently has a legally enforceable right of set-off' and that some gross settlement systems may be considered equivalent to net settlement. These amendments are effective for annual periods beginning on or after 1 January 2014 and can be downloaded from eIFRS. Click here for the IASB press release.

Insurance contracts

The IASB's Insurance Contracts project team has prepared a webpage that reports on the boards' joint tentative decisions on this project. This new insurance contracts webpage can be accessed from here.

IFRS for SMEs

Two final IFRS for SMEs Q&As issued
The IASB's SME Implementation Group has issued two new Q&As on:

• Entities that typically have public accountability
• Interpretation of 'traded in a public market' in applying the IFRS for SMEs

Click here to access the Q&As.

IFRS for SMEs Training module issued
The  IFRS Foundation has issued Module 33 – Related Party Disclosures of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) training material. Module 33 focuses on the presentation of related party disclosures in the financial statements in accordance with Section 33 – Related Party Disclosures of the IFRS for SMEs. Currently, 27 training modules (English version) have been posted by the IFRS Foundation. Ultimately, the IFRS for SMEs training material will include 35 stand-alone modules—one for each section of the IFRS for SMEs.

Other

New IFRS Foundation Chairman announced

The Trustees of the IFRS Foundation have announced the appointment of Michel Prada as the Chairman of the Trustees. Mr Prada is a former Chairman of the Executive and Technical Committees of the International Organisation of Securities Commissions (IOSCO) and is a highly respected advocate of investor protection and independent standard-setting. Mr Prada will serve an initial three-year term, commencing on 1 January 2012. Read more. 

Exposure Drafts currently issued for public comment

ED 310 - Q&As for the IFRS for SMEs, Section 11, Issue 1 and Section 30, Issue 1 

ED 309 – Revenue from Contracts with Customers

Click here for more information on the above exposure drafts and on how to submit your comments.

October 2011

On-line questionnaire on the future of the IASB's agenda will save you time
To save you time, we have made the commenting process on the International Accounting Standards Board's (IASB) exposure draft on the agenda consultation (ED 304) easier and simpler to do through an on-line questionnaire. This is your chance to influence the strategic direction of the IASB's agenda by completing the questionnaire by no later than Friday 11 November 2011. For a summary of the proposals click here.

Withdrawal of Circulars and Guides
The following Circulars and a Guide have been withdrawn:

• Circular 4/2005 – Guidance on the term 'State-Controlled Entities' in the context of IAS 24(AC 126) – Related Parties
• Circular 7/2007 – Implications of the Small Business Tax Amnesty on Accounting, Auditing, Legislation and Ethics
• Circular 8/2007 – Headline Earnings
• IAS 39 – Implementation Guidance - Questions and Answers

Read more.

Five draft Q&As on IFRS for SMEs issued
In the draft guidance, the International Accounting Standards Board's SME Implementation Group: permits an entity to apply IFRS for SMEs in its financial statements in respect of financial periods before the standard was issued; clarifies how 'undue cost and effort' and 'impracticable' should be interpreted in practice; permits an entity operating in a jurisdiction that requires it to apply the recognition and measurement principles of  full IFRS if certain transactions and events are not covered in IFRS for SMEs to state compliance with IFRS for SMEs; and provides that an entity that applies IFRS for SMEs but elects to depart from a principle in IFRS for SMEs or applies a local SME standard (IFRS for SMEs with some modifications) may not state compliance with IFRS for SMEs. The draft Q&As have been issued as ED 307.

September2011

Book now for the 2011 SAICA Accounting Update seminars
With no fewer than 4 new standards and 7 revised standards, come along to find out how these are likely to impact your financial statements or those of your clients. The new standards include the long awaited standards on joint arrangements and consolidations. While most of the new requirements are only effective from 1 January 2013, it is important to start early to consider the likely impact and to determine the relevant 2012 comparative information. The SAICA Accounting Updates will be taking place from 17 October 2011 to 10 November 2011 in Johannesburg, East Rand, Durban, Stellenbosch, Cape Town, Pretoria, Bloemfontein, Midrand, East London and Port Elizabeth. Please reserve your seat click here

Influence the strategic direction of the IASB's agenda
The International Accounting Standards Board (IASB) is seeking input in determining the strategic direction and the overall balance of its future work programme. The IASB has identified three strategic areas as driving the work of its agenda which fall into two broad categories, developing financial reporting and maintenance of existing IFRSs. The IASB are specifically requesting views on what projects should be prioritised taking into account their resource constraints. The deadline for comment to the SAICA is 26 October 2011. Click here to access the IASB press release and the exposure draft (ED 304).

Investment entities to be exempt from consolidating its subsidiaries
The IASB has issued proposals that will exempt investment entities from the consolidation requirements in IFRS 10 - Consolidated Financial Statements. This exemption will only apply to entities that qualify as investment entities as defined in the exposure draft and require entities to measure their investments at fair value through profit or loss. A parent of an investment entity may not apply this exemption unless the parent is itself an investment entity. The exposure draft has been issued in South Africa as ED 306 – Investment Entities. The deadline for comment to SAICA is 21 November 2011.

July 2011

2011 IFRS for SMEs Seminar
The Companies Regulations 2011 prescribe financial reporting standards that can be applied based on your company's public interest score. As a result of these new financial reporting requirements many more companies and close corporations that are currently applying another financial reporting framework such as IFRS, SA GAAP or nothing have the option of applying IFRS for SMEs, IFRS or SA GAAP, which is the equivalent of IFRS. The IFRS for SMEs is a less onerous framework and a real alternative to full IFRS. Book your seat here. 

New Chairman of the IASB from 1 July 2011
The new International Accounting Standards Board (IASB) Chairman, Hans Hoogervorst, commenced his term from 1 July 2011 taking over from Sir David Tweedie, who has served as Chairman of the IASB for the past ten years. Ian Mckintosh, former Chairman of the UK Accounting Standards Board, has also joined the IASB as the Deputy Chairman.  Read more.

IASB revises timing of major IFRS projects
In its latest workplan, the IASB has revised the expected publication date of IFRSs on leases, revenue and insurance contracts projects from quarter 4 of 2011 to the first half of 2012. The IASB will also re-expose impairment of financial assets, revenue, leases and insurance contracts by quarter of 4 of 2011.  Read more.

June 2011

The future of Statements of Generally Accepted Accounting Practice
At this meeting, the APB decided that it should assess the need for South African Statements of Generally Accepted Accounting Practice (SA GAAP) in its current form going forward in light of the Companies Regulations 2011. The APB wishes to alert companies presently using SA GAAP that they might not be able to continue using SA GAAP in the future, even if SA GAAP is not discontinued. Read more

New accounting guide for Share Block Companies issued
This guide deals with the recognition and measurement requirements for assets and liabilities and the accounting for income and expenses. Although the statement of comprehensive income reflects the fact that the share block company is acting as a principal and not an agent of the members , the statement of financial position will not reflect a property as an asset (because it is not probable that future economic benefits will flow to the share block company itself). Click here to access the guide.

Updated list of standards issued but not yet effective
The list of standards issued but yet effective has been updated for six new International Financial Reporting Standard issued in May 2011. Click here to access the list.

May 2011

Upcoming APB meeting

The next Accounting Practices Board (APB) meeting will be take place on 27 May 2011. The agenda and attachments for this meeting can be downloaded here.

Report of the National Standard-setters
The National Standard-setters (NSS) group has issued a report following their meeting held on 24 and 25 March 2011 in New York. The NSS assists participants in carrying out research aimed at the development of improved future accounting standards, reviews and comments on IASB's agenda and proposals for changes in international bodies concerned with financial reporting, and provides a forum for an exchange of views and sharing of experience between participants about other issues in financial reporting, including in the public and not-for-profit sectors. South Africa participates at this group's meetings, which are held twice a year. Some of the items discussed at this meeting include revenue, leases, business combinations under common control and post-implementation reviews. A copy of the NSS report can be downloaded here.

IASB completes review of five major IFRSs
The International Accounting Standards Board (IASB) has completed the review of five major IFRSs. This review marks the end of an important element of the IASB's response to the financial crisis. The new and revised IFRSs include: IFRS 10 – Consolidated Financial Statements, IFRS 11 – Joint Arrangements, IFRS 12 – Disclosure of Interests in Other Entities, IAS 28 – Investments in Associates and Joint Ventures, and IAS 27 – Separate Financial Statements. The IFRSs can be downloaded from eIFRS.

New guidance on fair value measurement issued
The International Accounting Standards (IASB) has issued a new IFRS on fair value measurement and the related disclosure requirements. This IFRS defines fair value, sets out a single IFRS framework for measuring fair value, and requires disclosures about fair value measurements. IFRS 13 – Fair Value Measurement, can be downloaded from eIFRS.

March 2011

Input from preparers, auditors, advisors and regulators required on Initial Accounting of Intangible Assets required

We are appealing to all preparers, advisors, auditors and regulators to complete a questionnaire that seeks to gather information for purposes of a post-implementation review of the principles in IFRS 3 – Business Combinations and IAS 38 – Intangible Assets, with respect to the initial accounting for intangible assets acquired in a business combination . The objective of the questionnaire is to:

• identify any improvements that could be made to these principles; and
• determine whether the principles would be appropriate for the initial accounting for internally generated intangible assets.

We anticipate that it will take 20-30 minutes to complete. The deadline for submission is 17 June 2011.

APB extends withdrawal date of Statement of GAAP for SMEs

The Accounting Practices Board (APB) has approved the extension of the withdrawal date of  the Statement of Generally Accepted Accounting Practice for Small and Medium-sized Entities, from 31 August 2010 to one year after the effective date of the Companies Act of 2008. As a result of this process a replacement circular, Circular 1/2011 - Statement of Generally Accepted Accounting Practice (GAAP): International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs), was issued. Circular 1/2011 will supersede Circular 2/2009 - Statement of Generally Accepted Accounting Practice (GAAP): International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs).

Sir David Tweedie's vision of the future of financial reporting
Sir David Tweedie, chairman of the International Accounting Standards Board (IASB) reveals his vision on the future of financial reporting at the US Chamber of Commerce Event in Washington.  Read more.

Exposures drafts currently open for public comment

• ED 298 - Supplement Financial Instruments Impairment
• ED 300 - Draft Q&As ,IFRS for SMEs, section 1, Use of IFRS for SMEs in Parents Separate Financial Statements
• ED 299 - Consultative Report on the Review of the IFRS Foundation's Governance
• ED 297 - Offsetting Financial Assets and Financial Liabilities

Click here to view the exposure drafts and the related comment deadline dates.

February 2011

Input from preparers, auditors, advisors and regulators required on Initial Accounting of Intangible Assets required

We are appealing to all preparers, advisors, auditors and regulators to complete a questionnaire that seeks to gather information for purposes of a post-implementation review of the principles in IFRS 3 – Business Combinations and IAS 38 – Intangible Assets, with respect to the initial accounting for intangible assets acquired in a business combination . The objective of the questionnaire is to:

• identify any improvements that could be made to these principles; and
• determine whether the principles would be appropriate for the initial accounting for internally generated intangible assets.

We anticipate that it will take 20-30 minutes to complete. The deadline for submission is 17 June 2011.

IFRS Briefing for Chief Executives and Audit committees

The 2011 edition of the International Financial Reporting Standards: A Briefing for Chief Executives, Audit Committees and Board of Directors, has been published as part of the IFRS Foundation Education Initiative. The publication provides a high-level non-technical summary of all IFRSs issued as at 1 January 2011. The IFRS Briefing can be downloaded from eIFRS.

Recently issued exposure drafts that are open for public comment

• ED 299 –Consultative Report on the Review of the IFRS Foundation's Governance
• ED 298 – Supplement Financial Instruments Impairment
• ED 297 – Offsetting Financial Assets and Financial Liabilities
• ED 296 – Hedge Accounting

Click here to view the exposure drafts and the related comment deadline dates.

The Accounting technical department of the SAICA serves its members by:

• Communicating on all developments in, and affecting, the application of accounting standards. This is achieved through regular updates in Communiqué, the technical column and articles in the Accountancy SA journal and seminars and workshops.
• Obtaining relevant media coverage on matters affecting financial reporting to enhance the image of the Chartered Accountancy profession as business leaders.
• Offering a technical query facility for accounting and financial reporting issues.
• Maintaining an up to date reference point of Statements of GAAP and International Financial reporting Standards (IFRS) in the on line hand-book. Core IFRS standards (excluding additional material such as the Basis for Conclusions and Implementation Guidance) are now freely available on the IASB website (300Kb PDF).
• Influencing the international accounting standard-setters by commenting on all pronouncements issued by the International Accounting Standards Board (IASB), the International Financial reporting Interpretations Committee (IFRIC) and the foundation governing them. Click here for an overview of the IASCF structures (280Kb PDF) and working groups.
• Facilitating and acting as secretariat for the South African accounting standard-setting body, the Accounting Practices Board (APB) and its technical advisory body the Accounting Practices Committee (APC).
• Ensuring compliance with accounting standards for listed companies through the GAAP Monitoring Panel (GMP).

January 2011

Financial instruments project
IASB simplifies hedge accounting requirements
The International Accounting Standards Board (IASB) has issued the first part of the third and final phase of the financial instruments project on hedge accounting to replace IAS 39(AC 133) – Financial Instruments: Recognition and Measurement, for public comment. The objective of the proposals is to reflect in the financial statements the effect of an entity's risk management activities when it uses financial instruments to manage exposures arising from a particular risk that could affect profit or loss. Comments on the exposure draft can be submitted to SAICA by 9 February 2011. SAICA will be hosting an education session on the exposure draft, ED 296, on Monday 24 January 2011. Click here to register to attend the session.

Other projects
Measurement of deferred tax on Investment property
Amendments to IAS 12(AC 102) – Income Taxes, that introduce an exception to the existing principle for the measurement of deferred tax assets and liabilities arising from investment property measured at fair value, have been published. The amendments are effective for annual periods beginning on or after 1 January 2012. Earlier application is permitted.

First IFRS Practice Statement on Management Commentary
A non-mandatory IFRS practice statement on management commentary, that relates to financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) has been issued. This is not an IFRS.

Amendments to IFRS 1(AC 138) – First-time Adoption of International Financial Reporting Standards
The IASB has published two amendments to IFRS 1(AC 138) including Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters. The amendments are effective for annual periods beginning on or after 1 July 2011. Earlier application is permitted.

The above pronouncements can be accessed from eIFRS

November 2010

Webcast on the education session on the leases and revenue projects

The webcast on the education session on the leases and revenue exposure drafts held on 30 September 2010 can be accessed from here, under ED 288 - Leases.

Financial instruments update

IASB completes the classification and measurement phase of the financial instruments project

Following the publication of the classification and measurement of financial assets phase of IFRS 9(AC 146) – Financial Instruments, in November 2009, theInternational Accounting Standards Board (IASB) has issued guidance on the accounting for financial liabilities.

These new requirements for accounting for financial liabilities will be added to IFRS 9(AC 146) to complete the classification and measurement phase of the financial instruments project to replace IAS 39(AC 133). The revised IFRS 9(AC 146) can be downloaded from eIFRS. The IASB expects to complete phase two and three on impairment and hedge accounting, respectively by the end of June 2011.

Other

SEC issues work plan to incorporate IFRSs

The US Securities and Exchange Commission (SEC) have published the first progress report on the Work Plan related to the consideration of incorporating International Financial Reporting Standards (IFRS) into the financial reporting system for US issuers. The Work Plan addresses, amongst others, the following key areas: the development and application of IFRS for the US domestic reporting system; investor understanding and education regarding IFRS; and examination of the US regulatory environment that would be affected by the transition. Click here to access the progress report.

APB meeting – 3 December 2010

The next Accounting Practices Board (APB) meeting will be take place on 3 December 2010. The agenda and attachments for this meeting can be downloaded here.

The Accounting technical department of the SAICA serves its members by:

• Communicating on all developments in, and affecting, the application of accounting standards. This is achieved through regular updates in Communiqué, the technical column and articles in the Accountancy SA journal and seminars and workshops.
• Obtaining relevant media coverage on matters affecting financial reporting to enhance the image of the Chartered Accountancy profession as business leaders.
• Offering a technical query facility for accounting and financial reporting issues.
• Maintaining an up to date reference point of Statements of GAAP and International Financial reporting Standards (IFRS) in the on line hand-book. Core IFRS standards (excluding additional material such as the Basis for Conclusions and Implementation Guidance) are now freely available on the IASB website (300Kb PDF).
• Influencing the international accounting standard-setters by commenting on all pronouncements issued by the International Accounting Standards Board (IASB), the International Financial reporting Interpretations Committee (IFRIC) and the foundation governing them. Click here for an overview of the IASCF structures (280Kb PDF) and working groups.
• Facilitating and acting as secretariat for the South African accounting standard-setting body, the Accounting Practices Board (APB) and its technical advisory body the Accounting Practices Committee (APC).
• Ensuring compliance with accounting standards for listed companies through the GAAP Monitoring Panel (GMP).

October 2010

Webcast on the education session on the leases and revenue projects

The webcast on the education session on the leases and revenue exposure drafts held on 30 September 2010 can be accessed from here, under ED 288 - Leases.

New chairman to replace Sir David Tweedie announced
The Trustees of the IFRS Foundation have announced the appointment of Hans Hoogervorst as the new Chairman of the International Accounting Standards Board (IASB) to succeed Sir David Tweedie when he retires at the end of June 2011. Mr Hoogevorst will step down from his current positions, which include amongst others; being the chairman of Netherlands Authority for the Financial Markets and a co-chair of the Financial Crisis Advisory Group (FCAG), in order to join the IASB. At the same time, the Trustees have appointed Ian MacKintosh as the vice-chairman of the IASB. These appointments follow a year-long international search process.  Read more

Additional  IFRS for SMEs  training modules loaded
The IFRS Foundation has posted three additional training modules for the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The newly posted training modules are:

• Module 18 Intangible Assets Other than Goodwill;
• Module 20 Leases; and
• Module 29 Income Tax.

The training material will include 35 stand-alone modules - one for each section of the IFRS for SMEs, is free to download.

IASB & IFRIC News
Every month we cover the latest news from the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee. Read more

September 2010

New standard for revenue recognition
Revenue is a crucial number to users of the financial statements in assessing a company's performance and prospects. The IASB and FASB together initiated a joint project to clarify the principles for recognising revenue from contracts with customers. The Boards have jointly issued an exposure draft. The exposure draft as been issued in South Africa as ED 284. The proposals would supersede IAS 11(AC 109) Construction Contracts and IAS 18(AC 111)  Revenue and related interpretations. The snapshot and Industry publications provide a summary and the impact that the proposals will have on media, telecommunications, technology, food, drink and Consumer Goods, and building and construction companies respectively. Comments on the exposure draft can be submitted to SAICA by no later than 30 September 2010.

Preparers questionnaire on leases exposure draft
The IASB and the US FASB are calling upon on preparers of financial statements to complete a questionnaire on the leases exposure draft. The Boards are surveying organisations on their use of, and accounting for, leases. Completing the questionnaire does not require knowledge of the boards proposals. The deadline to complete the questionnaire  is 30 September 2010. Comments on the exposure draft , that proposes a new model for accounting of leases  by lessees and lessors, can be submitted to SAICA by 25 November 2010. This proposed model eliminates  the concept of operating leases and will require that both lessees and lessors recognise assets and liabilities arising from the lease contract.

Proposed new guide on financial reporting by Share Block Companies
Financial reporting by Share Block Companies has been the subject of much debate for a number of years and even resulted in inconsistent accounting for the same transactions. The proposed guide outlines the initial recognition, initial measurement and subsequent measurement of assets, liabilities, as well as the accounting for income and expenses in the financial statements of share block companies. Comments on the proposed guide can be submitted to SAICA by 11 October 2010. Read more.

August 2010

Withdrawal of Statement of GAAP for SMEs effective 31 August 2010
At its meeting held in August 2009, the Accounting Practices Board (APB) approved for issue the International Financial Reporting Standard for Small and Medium Entities (IFRS for SMEs), issued by the International Accounting Standard Board (IASB), as a Statement of Generally Accepted Accounting Practice: IFRS for SMEs. In light of this publication, the APB agreed that the Statement of GAAP for SMEs, which was the IASB's exposure draft on IFRS for SMEs approved for use in South Africa in 2007, would be withdrawn for financial periods ending after 31 August 2010. The Statement of Generally Accepted Accounting Practice: IFRS for SMEs can be downloaded here

Upcoming Accounting Practices Board meeting
The APB, which is the official South African accounting standard-setter, will meet on 26 August 2010 to consider for approval the following accounting pronouncements:

• Improvements to IFRSs, as issued by the IASB.
• Revised AC 504 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction in the South African Environment.

The full agenda of other items up for discussion and the related attachments can be downloaded here

Proposed new guide on financial reporting by Share Block Companies
Financial reporting by Share Block Companies has been the subject of much debate for a number of years and even resulted in inconsistent accounting for the same transactions. The proposed guide outlines the initial recognition, initial measurement and subsequent measurement of assets, liabilities, as well as the accounting for income and expenses in the financial statements of share block companies. Comments on the proposed guide can be submitted to SAICA by 11 October 2010. Read more

June 2010

Financial Instruments update
IASB invites input on FASB's financial instruments project
The US Financial Accounting Standards Board (FASB) has issued a comprehensive exposure draft on all aspects of financial instruments accounting that proposes that the majority of financial assets and financial liabilities be measured at fair value. The International Accounting Standards Board (IASB) encourages constituents to provide feedback on this exposure draft directly to the FASB by 30 September 2010. Read more .

Status update on IASB and FASB convergence project
IASB and FASB defer date of achieving convergence
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) announced their decision to modify their strategy aimed at achieving convergence. The Boards intend completing majority of the convergence projects, which should bring about a significant improvement and convergence of IFRS and US GAAP, within the target date of June 2011. The remainder of the projects not completed within this period will be finalised by the end of the second quarter of 2011. The Boards will publish a revised version of their workplans shortly. Read more

Other
May 2010 IASB and IFRIC news
In the May issue of the IASB & IFRIC news, the IFRS Interpretations Committee decided to address the accounting for subsequent changes in the carrying amount of a financial liability recognised for written put options over a non-controlling interest. The IASB deliberated the extent to which a parent of an investment company (if not an investment company itself) should retain the fair value accounting that is applied by an investment company subsidiary. The IASB also discussed partial derecognition as an alternative approach for lessor accounting. Read more

April 2010

Webcast of a panel discussion on the impairment of assets
On 31 March 2010, SAICA and Standard Bank hosted a panel discussion of experts on the impairment requirements of the IASB's recently issued exposure draft ED2009/12 - Financial Instruments: Amortised Cost and Impairment. This panel discussion is available on webcast until 30 June 2010.

IASB & IFRIC News
Every month we will cover the latest news from the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC). Read more.

Progress report on convergence of IFRS and US GAAP
The latest progress report on the convergence of International Financial Reporting Standards and US generally accepted accounting practice has been jointly issued by the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB). It addresses the work performed to date on the following convergence projects, not limited thereto; financial instruments, consolidation, derecognition, fair value measurement, revenue recognition, and leases. Read more March 2010

Live webcasts on 'Presentation of items in Other Comprehensive Income'
On 15 March and 19 March 2010 the IASB will be hosting a live webcast, to provide a status update on its deliberations on the presentation of items in other comprehensive income. To register to participate in these webcasts, click here.

IASB & IFRIC News
Every month we will cover the latest news from the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC). Read more on the January and February 2010 issues.

IFRS for SMEs training material freely available
The International Accounting Standards Committee Foundation (IASCF) has issued training material for the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), which is free to downloaded. The training material consists of 35 modules one for each section of IFRS for SMEs. Click here to downloaded the latest available modules.

The IASCF has also introduced an email service to assist interested parties up to date with the latest development on IFRS for SMEs. To subscribe to this service click here

Financial Intrument Project

Classification and Measurement
In response to the financial crisis, the first of the three phases aimed at addressing the concerns regarding the complexity in classifying and measuring financial instruments, has been issued. The proposals address the various concerns raised during the crisis regarding the complexity of financial instruments. The International Accounting Standards Board (IASB) believes that focusing on the classification and measurement forms a fundamental basis on a future standard on financial instruments. The IASB plans to finalise the classification and measurement proposals in time for non-mandatory application in 2009 year-end financial statements, hence the proposals are open only for a 60-day comment period. The deadline for comment to SAICA is 3 August 2009.Click here for the exposure draft (ED 267) and the IASB press release. Find out more about this exposure draft and the timing of the publication of exposure drafts and final standards on a future standard on financial instruments in the next Communiqué of 30 July 2009. Related to this project, the IASB has posted in its website, a recording of the frequently asked questions about the exposure draft and this recording can be found here.

The impact of an entity's credit standing on liability measurement
Entities will need to consider the effect of credit risk on initial and subsequent measurement of liabilities. Click here for a summary of the the papers issued by the IASB on the arguments for and against including the effects of credit risk in measuring liabilities. The exposure draft (ED 263) can be downloaded here. The deadline for comment to SAICA is 3 August 2009.

Report on the IASCF's/IASB's response to the financial crisis
The International Accounting Standards Committee Foundation (IASCF) and the International Accounting Standards Board (IASB) have compiled a comprehensive overview of measures that they have undertaken in response to the conclusions reached by the G20 at their summit in London, UK on 2 April 2009. To find out more information about this report please click here.

Other projects

Amendments on share-based payment standard issued
The IASB has issued amendments that broaden the scope of IFRS 2(AC 139) - Share-based Payments to include share-based payment transactions within a group structure. These amendments clarify the measurement requirements for goods or services received by an entity in a group structure, where another entity within the group settles the share-based payment transaction. As a result of the amendments, the IASB has withdrawn IFRIC 8(AC 441) - Scope of IFRS 2(AC 139) and IFRIC 11(AC 444) - IFRS 2(AC 139) - Group and Treasury Share Transactions. Group Cash-settled Share-based Payment Transactions - Amendments to IFRS 2(AC 139) can be downloaded from the SAICA on-line handbook. These amendments will be issued as amendments to Statements of Generally Accepted Accounting Practice (GAAP) once approved by the Accounting Practice Board (APB). Find a summary of the amendments in Communiqué.

Latest updates - Communiqué

Consolidation of Zimbabwean subsidiaries
Due to the difficulty in obtaining hyperinflationary data during the latter half of 2008, the Institute of Chartered Accountants of Zimbabwe (ICAZ) issued guidance titled "Guidance: Change in Functional Currency 2009" (the Guide). The Guide provides relief to Zimbabwean entities in a number of areas. South African companies that consolidate Zimbabwean subsidiaries should note that financial statements prepared in accordance with the Guide do not result in compliance with International Financial Reporting Standards (IFRS). Click here to access the Guide and read the related background information.

Financial instruments project kicks off with new standard
IFRS 9 - Corporate preparers, banks and financial institutions, along with investors, will welcome a new accounting standard, IFRS 9, recently issued by the International Accounting Standards Board (IASB). The standard deals with the classification and measurement of financial assets, such as loans, as well as debt and equity securities. This is the first of the IASB's three phases aimed at addressing the concerns regarding the complexity in classifying and measuring financial instruments to replace IAS 39(AC 133). An exposure draft on the amortised cost measurement and impairment of financial instruments form the second part of a three-part project to replace IAS 39(AC 133). Click here to access the relevant documents.

Globalisation of Accounting Standards
At the SAICA Business Breakfast held on 10 September 2009, Mary Barth, a former member of the International Accounting Standards Board (IASB) and an academic professor, gave an in-depth presentation on the globalisation of accounting standards, the role and challenges thereof on capital markets, the role of the fair value during the financial crisis and the challenges and the implications of global financial reporting. Click here for Mary Barth's presentation in .PDF format.

IASB conducts post implementation review of IFRS 8 – Operating Segments
The International Accounting Standards Board (IASB) is conducting a post-implementation review of IFRS 8 – Operating Segments, and are requesting for input from preparers, regulators, auditors, and users to identify any issues encountered in implementing IFRS 8. Responses can be submitted to sandyw@saica.co.za by the 3rd of April 2012.

Quick video updates on latest changes to IFRS

Two Click2start webinars on the new consolidations standards, fair value measurement standard and the amendments to the financial instruments standards have been loaded.

IASB revises timing of major IFRS projects 

The IASB has revised the dates for issuing exposure drafts and IFRSs on the financial instruments projects and insurance contracts project. The IASB is also considering limited scope changes to IFRS 9. The changes in the timing of the projects are mentioned below:

Name of project	Moved from 2nd quarter 2012 to 3rd or 4th quarter 2012
Impairment of Financial Assets	expected publication date of exposure draft
General Hedge Accounting	expected publication date of exposure draft
Insurance Contracts	target date to issue either a review draft or an exposure draft

Click here to access the updated work plan.

Comprehensive review of IFRS for SMEs to commence in 2012
The IASB is expected to begin its comprehensive review of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) during the last six months of 2012. As part of the review, the IASB will also consider incorporating the Q&As into the revised IFRS for SMEs. For this reason, the IASB's SME Implementation Group is not planning on issuing many, if any, additional draft Q&As before the start of the comprehensive review.  Read more. 

Exposure drafts open for public comment

• ED 311 – Transition Guidance – Proposed amendments to IFRS 10: Consolidated Financial Statements (comment deadline 21 March 2012)
• ED 309 – Revenue from Contracts with Customers (comment deadline 13 March 2012)

Click here to access the exposure drafts.