The Chartered Accountant

International update
IFAC Supports Convergence in the Reporting of Financial Instruments
The International Federation of Accountants (IFAC) supports recent moves by the International Accounting Standards Board
(IASB) to contribute to greater consistency in financial reporting and to work towards convergence of international standards,
an objective which IFAC views as critical to the efficient operation of global capital markets. IFAC believes that the additional
guidance given to those applying both accounting and auditing standards relating to fair values has been very valuable and will
contribute to the public interest through more consistent application of the standards. This guidance has come from the IASB
and the United States Financial Accounting Standards Board, as well as from the International Auditing and Assurance Standards
Board in its Staff Audit Practice Alert, Challenges in Auditing Fair Value Accounting Estimates in the Current Market
Environment. IFAC and its independent standard-setting boards are continuing to monitor the impact of the credit crisis and
will consider whether further guidance is needed.
www.ifac.org
IFAC Examines Developments in Public Sector Performance Measurement Structures
As part of its mission to serve all professional accountants in business, including those working in the public sector, IFAC's
Professional Accountants in Business (PAIB) Committee has conducted a survey to obtain information about the development
of financial and non-financial performance measurement and reporting structures in various public sector entities around the
world. The results of this survey, contained in the information paper Developments in Performance Measurement Structures
in Public Sector Entities, will help professional accountants in business, and others who work in the public sector, in evaluating
and further improving their own financial and non-financial performance measurement structures. This will enable them to
better plan, execute and control their organization's service delivery and to achieve a higher level of accountability. The results
will also help IFAC's PAIB Committee to consider specific public sector aspects when developing International Good Practice
Guidance for professional accountants in business.
www.ifac.org
IASB and FASB launch consultation on proposed enhancements to the presentation of financial statements
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) on 16 October
2008 published for public comment a discussion paper on financial statement presentation.The discussion paper contains
an analysis of the current issues in financial statement presentation and presents the boards’ initial thinking on how those issues
could be addressed in a possible future format.The discussion paper is open for comment until 14 April 2009.
www.iasb.org
IASB and FASB create advisory group to review reporting issues related to credit crisis
The IASB and FASB on 16 October 2008 announced that they will create a global advisory group comprising regulators, preparers,
auditors, investors and other users of financial statements. The advisory group will help to ensure that reporting issues
arising from the global economic crisis are considered in an internationally co-ordinated manner.
www.iasb.org
IASB publishes educational guidance on the application of fair value measurement when markets become inactive
The IASB on 31 October 2008 published educational guidance on the application of fair value measurement when markets
become inactive. The educational guidance takes the form 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.
www.iasb.org
FASB to Issue FSP FAS 140-4 and FIN 46(R)-8
The Financial Accounting Standards Board (FASB) has announced plans to issue final FASB Staff Position (FSP) FAS 140-4
and FIN 46(R)-8, Disclosures about Transfers of Financial Assets and Interests in Variable Interest Entities, by December 15,
2008. The document will increase disclosure requirements for public companies for reporting periods that end after December
15, 2008. The purpose of this FSP is to promptly improve disclosures by public entities and enterprises until the pending
amendments to FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities, and FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities, are finalized
and approved by the Board. Effective at the end of the first reporting period (interim and annual) after issuance of the FSP
for public entities, the FSP amends Statement 140 to require public entities to provide additional disclosures about transfers of
financial assets and variable interests in qualifying special-purpose entities. It also amends Interpretation 46(R) to require public
enterprises to provide additional disclosures about their involvement with variable interest entities.
www.fasb.org
THE CHARTERED ACCOUNTANT 1035 DECEMBER 2008