Group of constituents of the IASB from the United Kingdom has published a (PDF 12k) urging that the European Commission continue to support the IASB as Europe's accounting standard setter and not to reject or change any IASB standards. The signatories represent UK preparers, auditors, and users of accounts and include Ken Wild, head of Deloitte's IFRS Global Office. Copies of the letter were sent to the European Commission and the IASB
The EU has the ability not to accept international standards for use in Europe, or to change them. We strongly believe that these powers should only be used in the most exceptional circumstances and that the present situation does not justify their use. We would not support another carve-out.
IFRS is becoming the world's global accounting standard, and the EU has played a very important part in this convergence. If Europe in any way adopts its own version of IFRS, we not only lose the advantages of global comparability, we also risk detaching ourselves from this global movement and sacrificing our position of influence for one on the sidelines, just at a point when the global economy needs strong leadership in all areas, including accounting
Simplifying the IFRS for Private Entities
We have posted an article by Paul Pacter, the IASB's Director of Standards for Private Entities (who is also webmaster of IAS Plus) about (PDF 226k). Paul's article, which was published in Financial Executive magazine November 2008 issue, reviews the decisions made by the IASB in the past six months to further simplify the IFRS for Private Entities. Those decisions are based on the Board's consideration of: the 162 letters of comment on the Exposure Draft the results of field tests of the ED by 116 small companies recommendations of the IASB's Working Group on the project further staff research since publication of the ED
The article also identifies the remaining steps for completion of the standard and comments on the possibility of using the standard in the United States. The article is copyright by Financial Executives International, and we have posted it on IAS Plus with their kind permission.
IASB and FASB announce two more roundtables
The IASB and FASB have (PDF 127k) the dates and locations of two additional public roundtable discussions to identify financial reporting issues highlighted by the global financial crisis. We that the first one will be held in London on 14 November 2008. The roundtables are intended to help the boards identify any accounting issues that may require the urgent and immediate attention
IASB publishes fair value guidance
The IASB has published educational guidance on the application of fair value measurement when markets become inactive. The guidance consists of a summary document prepared by IASB staff and the final report of the expert advisory panel established to consider the issue:
The summary document sets out the context of the expert advisory panel report and highlights important issues associated with measuring the fair value of financial instruments when markets become inactive. It takes into consideration and is consistent with recent documents issued by the US FASB and the US SEC.
The report of the expert advisory panel identifies practices that experts use for measuring the fair value of financial instruments when markets become inactive and practices for fair value disclosures in such situations. The report provides useful information and educational guidance about the processes used and judgments made when measuring and disclosing fair value.
Fair value measurement needs 'further work'
In his opening remarks at the US Securities and Exchange Commission's roundtable on mark-to-market accounting yesterday, SEC Chairman Christopher Cox said that the SEC will be considering,