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Canada News
CICA Research – Request for Participation
The CICA is undertaking a research project on Reporting on the Web. They would very much appreciate some feedback from senior financial executives on this issue and, to this end, have arranged a conference call for September 6th at 10:00 am EST. Call in number: 1-866-368-6248 pass code:5122795#.
Please feel free to contact Chris Hicks at chris.hicks@cica.ca with any questions. Background information can be found on: (Click Here)
International News
Concept Release On Allowing U.S. Issuers To Prepare Financial Statements In Accordance With International Financial Reporting Standards
On August 7, 2007, the US Securities and Exchange Commission published it’s "Concept Release on Allowing U.S. Issuers to Prepare Financial Statements in Accordance with International Financial Reporting Standards. The purpose of this release is to obtain information about the extent and nature of the public’s interest in allowing U.S. issuers, including investment companies to prepare financial statements in accordance with International Financial Reporting Standards as published by the International Accounting Standards Board for purposes of complying with the rules and regulations of the Commission. The main points of inquiry are: The effect of the IFRS on the U.S. public capital market; IFRS implementation matters for U.S. issuers; and any other issues that commenters may wish to address and the benefits and costs relating to investors, issuers and other market participants of the possibility of accepting financial statements from U.S. issuers prepared in accordance with IFRS. Comments should be submitted on or before November 13, 2007.
Federal Register version
Comments received are available for this notice
Submit comments on S7-20-07
Request for Comment on "Real Estate Sales"
The International Financial Reporting Interpretations Committee released a request for comment on IFRIC Draft Interpretation D21. Comments due by October 5, 2007. IFRIC D21 proposes that revenue should be recorded as construction progresses only if the developer is providing construction services, rather than selling goods (completed real estate units). It proposes features that indicate that the seller is providing construction services. In many countries, these features tend currently not to be present in typical off plan sales agreements. Specifically, D21 clarifies whether sale agreements entered into before construction is complete should be regarded as construction contracts within the scope of IAS 11 or agreements for the sale of goods within the scope of IAS 18. It also revises guidance on applying IAS 18 to real estate sales in general.
Full text of Draft can be found on www.iasb.org
Request for Comment on "Hedges of a Net Investment in a Foreign Operation"
The International Financial Reporting Interpretations Committee released a request for comment on IFRIC Draft Interpretation D22. Comments due by October 19, 2007. The Draft Interpretation applies to an entity with net investments in a foreign operation that hedges the foreign currency risk arising from those net investments in foreign operations and wishes to qualify for hedge accounting in accordance with IAS 39. Investments in foreign operations may be held directly by a parent entity or indirectly by its subsidiary or subsidiaries. The issues addressed in this draft Interpretation are:
- the nature of the hedged risk for which a hedging relationship may be designated:
- "whether the parent entity may designate as a hedged risk only the foreign exchange differences arising from a difference between the functional currencies of the parent entity and its foreign operation, or whether it may also designate as the hedged risk the foreign exchange differences arising from the difference between the presentation currency of the foreign operation; and
- if the parent entity holds the foreign operation indirectly, whether the hedged risk may include only the foreign exchange differences arising from differences in functional currencies between the foreign operation and any intermediate or ultimate parent entity.
- where in a group the hedging instrument can be held:
whether a qualifying hedging relationship can be established only if the entity hedging its net investment is a party to the hedging instrument or whether any entity within the group, regardless of its functional currency, can hold the hedging instrument.
Full text of Draft can be found on www.iasb.org
Notice of Meeting of the AcSB's IFRS Advisory Committee (IAC)
The IAC's objective is to provide support to the AcSB on technical issues arising during the incorporation of International Financial Reporting Standards (IFRSs) into Canadian GAAP, and beyond. IAC meetings are normally open to the public, but portions will be held in camera at the discretion of the Chair.
| Meeting of the IAC | |
| Date: | September 13, 2007 |
| 9:00 am to 4:30 pm | |
| Venue: | CICA offices |
| 277 Wellington St West | |
| Toronto ON M5V 3H2 | |
The agenda will likely include discussions of:
- IASB Documents for Comment on: (i) Annual Improvements and (ii) Insurance Contracts;
- whether pension plans in Canada should adopt IFRSs;
- the progress review and the AcSB’s omnibus exposure draft of all IFRSs;
- anticipated areas of focus for IFRS implementation by industry sector: and
- members’ observations of implementation issues in practice.
Observers must complete the observer registration form (PDF) and return it by September 11, 2007 (see guidelines for observers).
Next meeting date:
December 7, 2007