® international accounting standards board special libraries association – toronto, june 2005...
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Special Libraries Association – Toronto, June 2005
®
International Accounting Standards
Board
Update on International Update on International Accounting StandardsAccounting Standards
Ian P.N. HagueIan P.N. Hague
Principal, Accounting StandardsPrincipal, Accounting Standards
AcSB CanadaAcSB Canada
June 2005June 2005
Special Libraries Association –
Toronto, June 2005
®HistoryHistory 1973 International Accounting Standards
Committee (IASC) founded by 10 national accountancy organisations.
1981 All members of IFAC became members of IASC.
1999 100+ countries. Structure reviewed. 2001 International Accounting Standards
Board (IASB) began operations. 2005 Europe, Australia, 90+ countries
adopting IFRS
Special Libraries Association –
Toronto, June 2005
®
Board (14)(approves IAS
[IFRS], ED, SIC [IFRIC])
7 Liaison Members
Intnl. Financial Reporting Interpretations Committee (12+1)(publishes draft Interpretations
and prepares draft of final Interpretations)
Standards Advisory Council (SAC)(advises Board)
Trustees (19)(appoint Board, IFRIC and SAC)
(6 North America, 6 Europe, 4 Asia/Pacific, 3 Other)
National standard setters (Australia/NZ, Canada, France, Germany, Japan, UK, US.)
IASBStructure
StructureStructure
Special Libraries Association –
Toronto, June 2005
®IASC FoundationIASC Foundation
19 trustees: 6 from North America 6 from Europe 4 from Asia Pacific 3 from any area
Appoint IASB members, SAC and IFRIC Monitor IASB’s effectiveness, raise funds,
approve budget, responsible for constitution
Special Libraries Association –
Toronto, June 2005
®
Standards Advisory Standards Advisory Council (SAC)Council (SAC)
About 50 members from throughout the world
Meets three times each year Provides advice to IASB on priorities Informs IASB of implications of
proposed standards
Special Libraries Association –
Toronto, June 2005
®IASBIASB
Has the sole responsibility for setting standards.
Approves principles-based standards, – does not issue detailed application guidelines.
Addresses business ventures – not public sector, government or not-for-profit activities.
Special Libraries Association –
Toronto, June 2005
®IASB CompositionIASB CompositionAustralia / NZ* 1 Auditor 5
Canada* 1 Preparer 3
France* 1 Analyst/User 2
Germany* 1 Academic 2
Japan* 1 Other 2
South Africa 1 14
Sweden 1 * National standard-setter liaisonUnited Kingdom* 3
United States* 4
14
Special Libraries Association –
Toronto, June 2005
®
International Financial Reporting International Financial Reporting Interpretations Committee (IFRIC)Interpretations Committee (IFRIC)
12 voting members and a non-voting chairman
Provide guidance on reporting issues not specifically addressed in IASB’s standards, or where unsatisfactory or conflicting interpretations have developed.
Special Libraries Association –
Toronto, June 2005
®IASBIASB
… is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in financial statements …
Special Libraries Association –
Toronto, June 2005
®
Convergence – Convergence – Benefits Benefits (SEC 2003)(SEC 2003)
Inter-firm comparability = lower cost to
investors
Lower listing costs with multiple listings
Greater competition amongst exchanges
More efficient resource allocation
Lower cost of capital
Higher global economic growth rate
Special Libraries Association –
Toronto, June 2005
®IASBIASB
Has an agreement with FASB to achieve convergence of standards.
Works in close co-operation with other national standard setters.
Board members have liaison responsibilities with a large number of countries and international organisations.
Special Libraries Association –
Toronto, June 2005
®
IFRS – IFRS – How does it affect me? How does it affect me?
EU Adoption (+ Australia/New Zealand)Consequences for parent/subsidiary
accountingConsequences for comparabilityConsequences for raising capital in EU
IFRS/US ConvergenceConsequences for future global standards
Special Libraries Association –
Toronto, June 2005
®
Roadmap to convergence:Roadmap to convergence:April 2005April 2005
Highlights the steps needed to eliminate the U.S. GAAP reconciliation requirement for foreign private issuers that use IFRS.
Establishes a goal of eliminating the requirement as early as possible between now and 2009 at the latest.
Donaldson (SEC) and McCreevy (EU)
Special Libraries Association –
Toronto, June 2005
®ProcessProcess
Comment period for each document Decisions made in open, public
meetings Explain basis for conclusions in each
standard Voting – approval by 8 of 14 members Dissenting views published
Special Libraries Association –
Toronto, June 2005
®ProcessProcess
Research Discussion Paper Exposure Draft Standard Implementation
Special Libraries Association –
Toronto, June 2005
®Tracking the processTracking the process
Website
www.iasb.org
Special Libraries Association –
Toronto, June 2005
®
Special Libraries Association –
Toronto, June 2005
®Tracking the processTracking the process
Website
www.iasb.org Meetings:
Observer notes Web cast of IASB meetingDecision summaries / Update
Special Libraries Association –
Toronto, June 2005
®
Special Libraries Association –
Toronto, June 2005
®
Special Libraries Association –
Toronto, June 2005
®
Special Libraries Association –
Toronto, June 2005
®
Special Libraries Association –
Toronto, June 2005
®Publications and EducationPublications and Education
Standards, exposure drafts, etc. Educational materials are being
prepared
Available from the IASCF Shop on the website
www.iasb.org
Special Libraries Association –
Toronto, June 2005
®Publications and EducationPublications and Education
Comprehensive subscription package• Standards, EDs, Newsletters, etc.
Education materials• Practical, implementation oriented
Seminars• High level
Special Libraries Association –
Toronto, June 2005
®Publications (1)Publications (1)
A Briefing for Chief Executives, Audit Committees and Boards of Directors
Overview of each standard
in non-technical language
Special Libraries Association –
Toronto, June 2005
®Publications (2)Publications (2)
Framework DVD/CD-Rom
High-level comparison of IASB Framework and FASB Framework (US)
Special Libraries Association –
Toronto, June 2005
®In development (1)In development (1)
Electronic—Illustrated IFRSs A high-level summary of IFRS x The conceptual context of IFRS x Link IFRS x to the Framework and IFRSs explanatory text ‘how to’ examples (recognition and measurement) Pictorial presentations (presentation and
disclosure)
Market—Preparers, users and business schools
Special Libraries Association –
Toronto, June 2005
®In development (2)In development (2)
Financial Instruments VolumeElectronic version—multi-languageHardcopy—Languages for which a
demand is indicated Market—Executives, preparers, users
and business schools
Special Libraries Association – Toronto, June 2005
®
International Accounting Standards
BoardQuestions? Comments?Questions? Comments?
Further informationFurther information
www.iasb.orgwww.iasb.org