GAAP ALERT No.3/2008
29 February
D23 Distributions of Non-cash Assets to Owners Released by AASB
As a result of the release of draft Interpretation D23 ‘Distributions of Non-cash Assets to Owners’ by the International Financial Reporting Interpretations Committee (IFRIC), the AASB seeks comment from its Australian constituents by 7 April. The purpose of D23 is to establish one set of criteria which will ensure non-cash assets, to be distributed to shareholders or owners, are being valued consistently and therefore can be more easily compared between companies. D23 requires that the distribution of a non-cash asset to shareholders or owners, be recognised as the fair value of the asset, even if this is different to its existing carrying value in the books of the entity.
D24 Customer Contributions Released by AASB
As a result of the release of draft Interpretation D24 ‘Customer Contributions’ by IFRIC, the AASB seeks comment from its constituents by 26 March. D24 addresses the measurement of assets contributed to a service provider by customers and the timing of when the contributed assets should be recognised as revenue.
Currently, AASB Interpretation 1017 ‘Developer and Customer Contributions for Connection to a Price- Regulated Network’ requires a service provider to recognise revenue upfront, when the customer is connected to the network. Draft Interpretation D24 proposes a change that will require the revenue to be recognised at the fair value of the asset contribution over the period of time when goods or services are being supplied to a customer.
D24 will significantly change current accounting practice in Australia. Revenue from customer contributions of assets would be spread over a much longer period. In Australia, AASB Interpretation 1017 covers the same issue but only applies to price-regulated networks. The AASB intends to withdraw Interpretation 1017 when the final IFRIC Interpretation is issued.
AASB March Meeting Agenda
The AASB agenda for its 5-6 March meeting in Melbourne includes:
Interpretations: Consider draft submission on IFRIC D24 Superannuation Plans and ADFs: Consider issues papers on disclosures relating to defined contribution benefits and investments and definition Differential Reporting: Consider issues relating to different reporting tiers for for-profit corporates Emission Rights: Education session and consider issues paper Business Combinations: Consider proposed revised AASB 3 and AASB 127, and Puttable Financial Instruments: Consider IASB’s proposed amendments to IAS 1 and IAS 32.
NFP Definition and Guidance AASB Roundtable
The AASB invites participation in a series of roundtables, which will form part of the consultation process to review its definition and guidance for not-for-profit entities. To ensure consistency and comparability, a set of criteria is to be established with which to determine whether an entity is for-profit or not-for profit. One possible approach being considered by the AASB is the New Zealand Financial Reporting Standards Board (FRSB) definition and guidance on public benefit entities. The FRSB definition of a not-for-profit entity differs from the Australian definition by requiring that the entity’s primary objective must be to ‘provide goods or services for community or social benefit’.
The AASB released an invitation to comment, ITC 14 ‘Proposed Definition and Guidance for Not-for-Profit Entities, in December 2007’; comments are due by 31 March 2008.
The roundtable discussions will be held in:
Melbourne: 2 p.m. to 4 p.m., Tuesday 11 March, The Institute of Chartered Accountants offices, Level 3, 600 Bourke Street Sydney: 1:30 p.m. to 3:30 p.m., Thursday 13 March 2008, Portside Centre, Symantec House, Level 5, 207 Kent Street, and Canberra: 1:30 p.m. to 3:30 p.m., Monday 17 March 2008, Location: Peninsula Room, National Museum of Australia.
APESB February Meeting Highlights
Highlights from 12 February meeting of the Accounting Professional & Ethical Standards Board Limited (APESB) included:
Independence: Considered responses to ‘ED 06/07 Proposed Amendments to Auditor Independence Requirements’, and approved the release of these amendments to APES 110 ‘Code of Ethics for Professional Accountants’. The amendments reflect with the Corporations Act amendments enacted in June 2007 by the Simplified Regulatory System (SRS) legislation. The amendments took effect from 15 February 2008 Compilations: Considered a re-draft of ED 0X/08 ‘Compilation of Financial Reports’, and agreed to consider further re-drafting ahead of the planned release of an exposure draft Insolvency: Agreed to establish a taskforce to consider the revision to APS 7 ‘Statement of Insolvency Standards’ Risk Management: Considered a proposal to establish a taskforce to develop a professional standard on risk management that will be further considered at the May meeting Management Consulting: Supported a proposal to withdraw APS 8 ‘Statement of Management Consulting Services Standards’, and will publish a notice on its website inviting public comment on the proposed withdrawal Definition of Professional Services: Considered a discussion paper on the definition of professional services, and agreed not to alter the definition, but will write to IFAC outlining their concerns with the current definition Members in Business Guidance Statement: Agreed to the establishment of a taskforce to consider the revision of Joint Guidance Note GN 1 ‘Members in Business Guidance Statement’, and Issues Register: Noted the completion of the Issues Register which is available from APESB website.
Auditor Independence Report Released by FRC
The auditor independence framework continues to operate effectively, according to the ‘Report on Auditor Independence 2006-07’ released by the Financial Reporting Council (FRC). The report indicates that audit firms have made significant progress in the adoption and refinement of the systems and processes they use to ensure compliance with auditor independence requirements. However, the FRC noted that some small to medium-size audit firms, which were reviewed under ASIC’s audit inspection programme for the first time, had not taken a proactive approach to planning and implementing effective policies, systems and processes to ensure compliance with legislative requirements for audit independence.
The Report contains the following topics: Executive Summary; Auditor Independence in Australia; Systems and Processes of Australian Auditors; Quality Review Programmes and Disciplinary Procedures of the Accounting Bodies; Teaching of Ethics by the Accounting Bodies; Compliance with Audit-related Disclosure Requirements; Other Independence-related Issues; International Developments in Auditor Independence; and the Appendices which include matters arising from the 2005-6 independence report, and auditor independence functions 2007-08 work programme.
Mr Jeffrey Lucy, Chairman of the FRC, said that there would be merit in ASIC and the professional accounting bodies implementing educative programmes targeted particularly at those firms. “While the systems used by audit firms to ensure compliance with independence requirements are generally working well, some audit firms do not appear to have a thorough understanding of the legislative and professional requirements on auditor independence,” Mr Lucy said.
The FRC independence report will be reviewed at the afternoon session of our ‘GAAP and GAAS Seminar – Updates, Insights and Tools for 30 June 2008’, 5 May, Location: Medina Grand Melbourne, 189 Queen St, Melbourne.
Report on Accounting Bodies’ Quality Review Programmes by FRC
Specific changes to the current financial regulatory framework are not warranted, according to a report released by the FRC. The FRC commissioned The Allen Consulting Group in 2007 to assess the findings and recommendations made in two consultant reviews conducted in 2006 on quality reviews and disciplinary procedures of the accounting bodies.
Mr Jeffrey Lucy, Chairman of the FRC, said that while the two previous review reports recommended changes to the regulatory framework, the current report suggests there is fatigue within the profession due to the numerous regulatory framework changes that have emerged from CLERP 9. “Further reform will be more effective if the profession is given a period in which to adjust to recent changes, such as the operation of the Audit Quality Review Board and the impact of auditing standards having legal force of law since 1 July 2006.”
The report outlines eight recommendations for the FRC to:
Analyse market confidence in auditor independence Improve understanding of the current regulatory framework Consider whether there is a case for regulatory change in light of the risk to market confidence in auditor independence Identify opportunities to reduce the review burden on audit firms while maintaining an acceptable level of market confidence in auditor independence Formally request access to files of professional body members to monitor the quality review process Revise its role to target overall audit quality, to reflect that audit independence is part of audit quality Examine further the robustness of auditor independence regulation, and Examine the costs and benefits of aspects of the UK model that could improve the performance of the Australian regulatory framework, particularly to provide greater information on disciplinary decisions.
Ethics in Accounting Firms Report Released by FRC
Australian accounting firms are investing significant resources to ensure compliance with independence and quality requirements, according to a report released by the FRC. The FRC commissioned The Banarra Trust, in May 2007, to review ethics in practice in seven accounting firms. The report ‘Evaluation of how professional and business ethics are applied in practice by accounting firms’ shows that ethical practice is highly valued by Australian accounting firms to build reputation and brand.
The report recommends:
Encouraging the professional bodies and APESB to consider establishing a mechanism that facilitates the sharing, reviewing and critiquing of leading ethical practices Accounting firms and professional bodies identify a core set of indicators for cultural health and ethics in practice, and Firms should review their approach to evaluating ethics training with a view to extending from measuring outputs to include outcomes. The FRC is seeking public comment on the consultant’s recommendations by 31 March 2008.
AUASB February Meeting Highlights
The highlights of 25-26 February meeting of the AUASB included:
ASA Redrafting (Clarity Format): Agreed the proposed timetable for the completion of all redrafting of relevant ASA by July 2009, and revised ASAs becoming operative for financial reporting periods commencing on or after 1 January 2010 Approval of Pronouncements and Exposure Drafts: Approved for release an Exposure Draft of the proposed Standard on Assurance Engagements ASAE 3500 ‘Performance Engagements’ (Revision of AUS 806 and AUS 808) with final comments due by 15 April 2008. Approved Guidance Statement GS 007 ‘Audit Implications on the Use of Service Organisations for Investment Management Services’, that is operative for reporting periods commencing on or after 1 July 2008 Sustainability – Assurance on Greenhouse and Energy Reporting: The Department of Climate Change is to issue Regulations and Policy under the National Greenhouse and Energy Reporting Act. There is likely to be external audit requirements which would incorporate ASAE 3000 and ASAE 3100 Review Engagements: Considered amendments to the proposed Standards on Review Engagements: ASRE 2400 ‘Review of Financial Reports’, ASRE 2405 ‘Review of Other Historical Financial Information’, and ASRE 2410 ‘Review of an Interim Financial Report Performed by the Independent Auditor of the Entity’. In light of the IAASB recently approved amendments to ISRE 2410, agreed to revise the wording to the suite of Australian Standards on Review Engagements to reflect the change in scope and other revisions Authorised Deposit-taking Institutions: Approved a project plan to develop and issue guidance to assist auditors of ADIs under the prudential reporting requirements specified by APRA Prudential Standard APS 310 ‘Audit and Related Arrangements for Prudential Reporting’. This guidance will be issued as an Addendum to AGS 1008 Self Managed Superannuation Funds: Considered a first draft of proposed Guidance Statement on Financial and Compliance Audits of Self Managed Superannuation Funds, and Bank Confirmation Requests: Considered a first draft of proposed Guidance Statement on Bank Confirmation Requests (revision of AGS 1002).
AASB and AUASB Appointments
The FRC announced appointments as members of the AASB and the AUASB. The appointments are on a part-time basis and have been made for three years, until 31 December 2010. The appointments to the AASB for 2008 include: Mark Jenkin, a Divisional Head with the Department of Defence; Robert Williams, Principal Advisor, Office of Financial Management, NSW Treasury; Frank Palmer, Director Corporate Reporting Group, Macquarie Bank, Sydney (re-appointment); and Bruce Porter, Partner, Deloitte Touche Tohmatsu (re-appointment). Bruce is also co-author of nine editions of ‘Australian GAAP’.
Appointments to the AUASB for 2008 include: Valerie Clifford, Partner, PricewaterhouseCoopers, Melbourne; John Gavens, Divisional Leader - Audit and Assurance, WHK Horwarth, Melbourne; Christine Jubb, Professor of Accounting, Deakin University, Melbourne (re-appointment); Jon Tyers, Head of Corporate Audit Services, ING Sydney (re-appointment).
New Competency Standards for Auditors of SMSFs
CPA Australia Ltd, The Institute of Chartered Accountants in Australia, and the National Institute of Accountants have developed a set of competency requirements for auditors of SMSFs to provide further clarity about the skills required of them. In a joint statement they stated that the competency requirements will be operative for financial reporting periods commencing on or after 1 July 2008.
It will be mandatory for members who sign an SMSF audit report to meet the following requirements:
Hold a practicing certificate issued by the professional accounting body of which they are a member Have relevant professional indemnity cover Undertake continuing professional development as set out in the requirements, and Ensure that those who perform work on their behalf have appropriate knowledge and experience, and are properly supervised in the conduct of the audit.
The competency requirements make it clear that auditors must be able to complete the tasks of planning, evidence gathering, evidence evaluation and decision making in five key areas in the context of an audit of an SMSF. The quality control procedures of the three bodies will include checking for compliance with these new requirements.
To assist auditors of SMEs, there is Australian GAAS ‘Auditing Standards Checklists for SMEs’ that provides 12 checklists of selected mandatory requirements of Australian Auditing Standards that is also useful for audits of SMSFs.
Disclosure Guidance for Listed Entities
ASX and ASIC have cooperated on the release of two Companies Updates to assist companies to meet their disclosure obligations: Companies Update 02/08 provides guidance on the disclosure of material information relating to the financing arrangements of listed entities and margin loans held by company directors; and Companies Update 01/08 provides guidance on the disclosure obligations of listed entities when they seek a trading halt or suspension of their securities.
The ASX and ASIC are working together to monitor disclosures, and will take enforcement action where necessary to ensure the market is fully informed. Directors have a duty under the Corporations Act to disclose to the company material personal interests on a matter relating to the company. ASIC expects all directors to have provided the company with all relevant information when a margin loan is entered into over securities in the company.
CFO Jailed
Mr. Kenneth David Evans, the former CFO and director of TEAC Australia Pty Ltd, was sentenced to two years and six months imprisonment, wholly suspended for three years, in the County Court of Victoria following an investigation by ASIC. Mr. Evans pleaded guilty to five contraventions of the Corporations Act, including two counts of failing to act in good faith in the best interests of TEAC Australia, one count of dishonestly using his position as a director of TEAC Australia, one count of falsifying company books, and one count of providing false or misleading information to the auditor of TEAC Australia.
The County Court was told that Mr. Evans: dishonestly failed to exercise his powers as a director, in TEAC Australia’s best interests by failing to register securitisation documents and enforce TEAC Australia’s rights in relation to a loan provided to a private company of TEAC Australia’s Chief Executive Officer and principal, Mr. Gavin Muir (deceased); dishonestly used his position as a director of TEAC Australia to reduce the amount outstanding on the loan on the eve of the appointment of administrators to TEAC Australia; and gave false or misleading information to the auditors over the value of TEAC Australia’s debtors. Mr. Evans attributed responsibility for his actions to Mr. Muir claiming that he was merely a senior employee carrying out the instructions of the company’s principal.
In July 2003, Mr. Muir’s private company, Bay Street Corporation Pty Ltd (in liquidation) borrowed $6 million from TEAC to help settle the purchase of a site in Port Melbourne previously owned by TEAC. Acting on Mr. Muir’s instructions, Mr. Evans failed to lodge the appropriate securitisation documents for the loan. In the days preceding the appointment of the administrators in March 2005, Mr. Evans gave instructions to the company bookkeeper to make false entries in the books of TEAC Australia to reduce the outstanding balance of this loan. Mr. Evans also provided false information to the auditor on the true extent of the TEAC Australia debtors’ book.
IASB February Meeting Highlights
The highlights from 18 – 22 February meeting of the IASB included:
Annual Improvements: Discussed an analysis of comments received on the exposure draft of proposed improvements to IFRSs. It was decided to break the project into several components:
Excluded the following proposals from its current deliberations: Restructuring of IFRS 1; Statement of compliance with IFRSs (IAS 1); Current/non-current classification of convertible instruments (IAS 1); Classification of leases of land and buildings (IAS 17): Contingent rent (IAS 17); Definition of derivatives (IAS 39); and Treating loan prepayment penalties as closely related embedded derivatives (IAS 39). These amendments will be separately considered later Issue an amended IFRS 1 as a single stand-alone standard, separately from the other improvements, and In relation to its current deliberations, to finalise the following amendments by May.
Reaffirmed 16 of the proposed amendments without change: Dividends declared after the end of the reporting period (IAS 10); Recoverable amount (IAS 16); Cost of originating a loan (IAS 18); Plan administration costs (IAS 19); Guidance on contingent liabilities (IAS 19); Consistency of terminology with other IFRSs (IAS 20); Consistency of terminology with other IFRSs (IAS 29); Earnings per share disclosure in interim financial reports (IAS 34); Definition of a financial instrument classified as held for trading (IAS 39); Reclassification into or out of the FVTPL (IAS 39); Designating and documenting hedges at the segment level (IAS 39); Applicable effective interest rate on cessation of fair value hedge accounting (IAS 39); Consistency of terminology with IAS 8 (IAS 40); Investment property held under a lease (IAS 40); Discount rate for fair value calculations (IAS 41); Examples of agricultural produce and products (IAS 41)
Discussed the eight specific matters and made the following decisions:
IFRS 5 ‘Non Current Assets Held for Sales and Discontinuing Operations’ – Plan to sell the controlling interest in a subsidiary: Decided to add text that would require the parent to disclose information for discontinued operations when the subsidiary to be disposed meets the definition of a discontinued operation in accordance with IFRS 5; clarify that the criteria for classification as held for sale need to be met; align the effective date of the amendments to IFRS 5 with that of the January 2008 amendment to IAS 27. IAS 16 ‘Property, Plant and Equipment’– Sale of assets held for rental: Decided to clarify that IFRS 5 does not apply when assets are transferred to inventories which are held for sale in the ordinary course of business. IAS 19 ‘Employee Benefits’ – Curtailments and negative past service cost: Decided to clarify that a change in the extent to which benefit promises are affected by future salary increases is a curtailment. IAS 19 will be amended to clarify that a negative past service cost occurs when there is a reduction in the present value of the defined benefit obligation. Amendments will apply to changes to benefit promises made on or after the effective date of the final amendment. IAS 19 ‘Employee Benefits’ – Replacement of ‘fall due’: Amended the proposals on the distinction between short-term and long-term benefits to clarify that the distinction is determined by whether the employee benefits are due to be settled within twelve months after the end of the period in which the employee renders the related service. IAS 28 ‘Investments in Associates’ and IAS 31 ‘Interests in Joint Ventures’ – Required disclosures when investments in associates or interests in jointly controlled entities are accounted for at FVTPL: Decided to explain the reason for limiting the disclosures to those in of IAS 28 (para. 37(f)) and IAS 31 (paras. 55 and 56), in addition to the disclosures required by IFRS 7 and IAS 32. IAS 28 ‘Investments in Associates’ – Impairment of investment in associate: Decided to explain why, after applying the equity method, any additional impairment recorded by the investor with respect to its investment in an associate should not be allocated to any assets, including goodwill, that constitute the carrying amount of the investment. IAS 38 ‘Intangible Assets’ – Advertising and promotional activities: Decided to modify the proposed change to require that, for the supply of goods, an entity should recognise an expense when it has the right to access those goods. Include an explanatory paragraph stating that when an expense should be recognised depends on the terms of the contract to supply the related goods or services. For services, the entity recognises the expense as the services are performed in accordance with the terms of the contract; and for goods, a right to access is received when the goods have been completed by the supplier in accordance with the terms of the contract and have been made available to the entity. Advertising and promotional material cannot be recognised as an asset, as they have no alternative use. Stationery to be used for advertising may be recognised as an asset, until such time as it is printed on, at which point it no longer has an alternative use. Catalogues are a form of advertising. IAS 40 ‘Investment Property’ – Treatment of investment property under construction: Decided that, in addition to including within the scope of IAS 40 investment property under construction, IAS 40 would be amended to state that, if an entity has a policy of measuring investment property at fair value and is unable to determine reliably the fair value of an item of investment property under construction. then cost may be used as a proxy for fair value until such time as construction is complete. The change will be applied prospectively, except to the extent that fair values have previously been determined for investment property under construction.
The review of the comment analysis for the remaining ten proposals will be discussed at the March meeting.
Insurance Contracts: Considered an overview of responses to the discussion paper ‘Preliminary Views on Insurance Contracts’ that identified two common issues: Is the objective to account for insurance contracts as a whole, or to account for the separate rights and obligations that the contracts create?; and Should the measurement of insurance liabilities incorporate the notion of settlement with the policyholder over the life of the contract? No decisions were made.
Liabilities – Amendments to IAS 37: Decided to clarify that ‘settle’ means settle by paying the counterparty at the balance sheet date; and to clarify that, if the amount the entity would have to pay to settle the obligation is different from the amount it would have to pay to transfer the obligation to a third party, the amount that it would rationally pay is the lower of these two amounts.
IAS 19 ‘Employee Benefits’: In finalising the proposed discussion paper, decided to describe the measurement attribute for contribution-based promises as fair value, assuming the terms of the benefit promise do not change. This measure would include credit risk, and exclude the possibility that the entity might reduce the terms of the benefits for past service.
Conceptual Framework: Discussed issues arising from the pre-ballot draft of the forthcoming exposure draft on the objectives of financial reporting and qualitative characteristics of financial information.
Liabilities and Equity: A Discussion Paper to be released shortly.
These decisions flow through to AASB Standards and due process documents.
IASB Discussion Paper on Financial Instruments with Characteristics of Equity
The IASB published a discussion paper ‘Financial Instruments with Characteristics of Equity’ on the distinction between equity financial instruments and other financial instruments (non-equity instruments). The discussion paper is the first stage of the IASB’s project to improve and simplify the requirements in IAS 32 ‘Financial Instruments: Presentation’. Constituents have raised two broad classes of criticisms of the current requirements: the principles in IAS 32 are difficult to apply, and the application of those principles can result in an inappropriate classification of some financial instruments.
The discussion paper has two parts: an Invitation to Comment and, as a separate document, the FASB’s November 2007 ‘Preliminary Views Financial Instruments with Characteristics of Equity’. The FASB document describes three approaches to distinguish equity instruments and non-equity instruments: basic ownership, ownership-settlement, and reassessed expected outcomes. The FASB favours the basic ownership approach. Under this approach significantly fewer instruments would be classified as equity than under IAS 32.
The IASB has not deliberated the proposals in the FASB document and does not have a preliminary view. The objective of the discussion paper is to seek the views of interested parties on whether the proposals in the FASB document are a suitable starting point for the IASB’s deliberations. If the project is added to the IASB’s active agenda, the IASB intends to undertake it jointly with the FASB. The IASB invites comments on the discussion paper by 5 September.
IASB’s Fair Value Measurement Progress
IASB has begun a standard-by-standard review of existing fair value measurements in IFRSs to assess whether each standard’s use of a fair value measurement basis was intended to be an exit price. The review will be completed in the second quarter of 2008. The IASB will deliberate on the outcome of this review before the round-table discussions to be held in the third quarter of 2008.
A discussion paper was published in November 2006 that set out the IASBs preliminary views of the principles of the FASB’s SFAS No. 157 ‘Fair Value Measurements’, and contained a comparison with existing fair value measurement guidance in IFRSs. The discussion paper contemplated replacing the existing definition of fair value and the related measurement guidance in IFRSs with a definition and guidance that reflects the IASB’s preliminary views.
Responses to the discussion paper and the feedback received during the round-table discussions assist in developing an exposure draft of an IFRS on fair value measurement guidance. An exposure drafts is anticipated to be published in mid-2009, with a final IFRS on fair value measurement guidance to be issued in 2010.
For the standard-by-standard review, the IASB is consulting with a group of constituents to assess whether, when applying fair value measurement guidance in IFRSs, they consider the measurement basis to be an entry price, an exit price, or another measurement basis. The group also will be asked whether, and if so how, they distinguish between entry prices and exit prices. The feedback received from the group will assist the IASB to decide how to define fair value, and where the definition will be used. The IASB may decide to remove the term ‘fair value’, and replace it with more specific terms, such as ‘current exit price’ and ‘current entry price’.
The IASB objectives in the fair value measurement project are to:
Establish a single source of guidance for all fair value measurements required or permitted by existing IFRSs to reduce complexity and improve consistency in its application Clarify the definition of fair value and related guidance to more clearly communicate the measurement objective, and Enhance disclosures about fair value.
IFRIC March Meeting Agenda
The agenda for 6-7 March meeting of IFRC includes:
D22 ‘Hedges of a Net Investment in a Foreign Operation’: Preliminary discussion of comprehensive example D21 ‘Real Estate Sales’: Analysis of comment letters and deliberations Review of Tentative Agenda Decisions published in November and January IFRIC Updates: Decisions regarding IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ – Deposits on returnable containers; and, IAS 7 ‘Statement of Cash Flows’ – Classification of expenditures; and Staff Recommendations for Tentative Agenda Decision: Decisions regarding IAS 19 ‘Employee Benefits’ – Settlements.
In due course, the decisions made by IFRIC affect the work program of the AASB.
Colin’s Corner January – February
In the January – February period GAAP Consulting has been involved in the providing the following services:
Finalisation of an independent expert’s report on independence, auditing and financial reporting litigation matter Advice on financial reporting by schools In-house training for a listed company on customer loyalty programmes, and financial reporting outlook to 2010 In-house training session for an accounting firm on the audit risk-based standards Preparation of internal financial reporting newsletters for staff of an accounting firm Input into content of a client accounting newsletter for an audit firm As an independent audit committee, preparation and participation at February meeting, and As a member of the AASB, participation at the February meeting.
Jim Dixon has been specifically involved in providing advice to accounting firm on service concession, and work on a publication on the topic of accounting for infrastructure assets.
The www.gaap.com.au web site has been relaunched, and our series of financial reporting and auditing publications rebranded and refreshed. We organised our first GAAP and GAAS Seminar – Updates, Insights and Tools for 30 June 2008, 5 May, Melbourne.
Outstanding Exposure Drafts
Accounting
17 March Proposed amendments to ‘IFRS 2 Share-based Payment’, and ‘IFRIC 11 IFRS 2 Group and Treasury Share Transactions’ – IASB 26 March D24 ‘Customer Contributions’ – AASB 31 March Invitation to Comment ITC 14 ‘Proposed Definition and Guidance for Not-for-Profit Entities’ 7 April D23 ‘Distributions of Non-cash Assets to Owners’ – AASB 25 April D23 ‘Distributions of Non-cash Assets to Owners’ – IFRIC 25 April D24 ‘Customer Contributions’ – IFRIC 5 September Discussion Paper ‘Financial Instruments with Characteristics of Equity’ – IASB
Auditing
15 March Proposed ISA 210 (redrafted) ‘Agreeing the Terms of Audit Engagements’ – IAASB 15 March Proposed ISA 710 (redrafted) ‘Comparative Information – Corresponding Figures and Comparative Financial Statements’ – IAASB 31 March Proposed ISA 501 (Redrafted) ‘Audit Evidence Regarding Specific Financial Statement Account Balances and Disclosures’ – IAASB 31 March ISA 520 (Redrafted) ‘Analytical Procedures’ – IAASB 4 April ED 07/07 APES 225 ‘Business Valuation’ – APESB 30 April Proposed ISA 402 ‘Audit Considerations Relating to an Entity Using a Third Party Service Organization’ – IAASB 30 April Proposed ISA 265 ‘Communicating Deficiencies in Internal Control’ – IAASB 31 May Proposed International Standard on Assurance Engagements (ISAE) 3402, ‘Assurance Reports on Controls at a Third Party Service Organization’ – IAASB
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