Revenue - the question of recognition |
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Brendan Sheridan, Director of Financial Reporting Services, Deloitte |
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Revenue recognition - proposed new standard |
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The recently published new standard on revenue recognition is analysed and observations are expressed on the potential impact of the changes being proposed in this IASPlus newsletter. |
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Financial Reporting Brief - July 2010
The second quarter of 2010 saw the publication of a number of exposure drafts in such areas as revenue recognition, retirement benefits, financial liabilities and the statement of comprehensive income, together with a refocusing by the IASB and the FASB of their strategic objectives and schedule for completion of converged standards.
Significant corporate governance developments took place with regard to publication of the UK Corporate Governance Code and the consultations being carried out by the Irish Stock Exchange on a new Code for Irish companies. The Financial Regulator is also engaging in developing new governance codes for banks and other financial institutions.
New laws have been passed implementing EU Directives in relation to both the audit process and money laundering.
For details on these issues and more, download the July edition of Financial Reporting Brief.
Financial reporting brief is a service for those concerned with financial reporting developments. These regular updates, from our financial reporting experts, aim to keep you informed of the most relevant and important changes to financial reporting standards, company law, corporate governance, and a host of related issues. Sign up now to receive Financial reporting brief by email.Recent articles
Financial asset impairment - a measurement solution??
The modifications being made by the IASB and the FASB to the standard convergence programme may perhaps afford them some additional breathing space to seek out common ground on those standards where convergence is difficult to achieve. This is particularly so in the area of financial instruments accounting, a major part of which relates to an impairment model for loans and similar financial assets... Read more here.Global convergence - progress report
A recent letter from G20 leaders commented that 'there can be no let up in our commitment to implementing international standards and agreeing to undergo periodic peer reviews to evaluate our adherence to these standards' - is this commitment being met?... Read more here.Financial reporting - an evolutionary process
It is natural at a time of economic crisis that reporting by entities should come under critical scrutiny. While it may be too early to make confident assessments of the role of financial reporting in the crisis, at present the charge that financial reporting either caused it or made it significantly worse has provoked strong debate over whether reporting weaknesses contributed to the financial crisis or failed to send warning signals to investors and other stakeholders in a timely manner.... Read more here.Global convergence - path to achievement
The growing acceptance of IFRS brings the vision of a single set of high quality accounting standards closer to reality, with two major forces at work driving this forward... Read more here.Annual reporting season - what changes can we expect?
Multiple changes to accounting standards and company law, together with response to comments by regulators and others regarding improvements to existing financial reporting practices, may be expected to lead to some significant changes in financial reports for 2009... Read more here.To tell the full story
The length of the Annual Report of listed companies has continued to increase but while there may be increased volume of reporting, there continue to be deficiencies in compliance with mandatory disclosure requirements under IFRS... Read more here.IAS 39 - Replacement a solution??
Once again IAS 39 has been the focus of much attention during 2009 and is likely to continue to be within both accounting and financial reporting circles and also within broader political and economic circles. The issue on this occasion is the replacement of IAS 39, with the financial crisis heightening the demand for improved transparency and consistency in accounting for financial instruments... Read more here.Narrative Reporting - The Power in the Message
In the current times of economic uncertainty companies are confronted with risks and challenges that would never have been encountered in periods of robust economic sustainability and growth. It is during times such as this that the need for transparency and high quality annual reports is of a heightened level of importance to investors and other shareholders... Read more here.G20 calls for acceleration of global convergence
A major driver of the current progress being made in accounting standard-setting are the recommendations made by the G20 leaders in their declarations following their recent meetings, recommendations that carry substantial weight. G20 met again in late September and called on international accounting bodies to redouble their efforts to achieve a single set of high quality, global accounting standards and complete their convergence project by June 2011... Read more here.You can view further fnancial reporting articles written by Deloitte professionals on the Deloitte audit pages.
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In the media:On 26 May 2010, the US Financial Accounting Standards Board issued a proposed Accounting Standards Update (ASU) for a comprehensive new model of accounting for financial assets and financial liabilities that addresses (1) recognition and measurement, (2) impairment, and (3) hedge accounting. Read more here. The Deloitte CFO survey Q1 2010, conducted in March, is our third quarterly survey of CFOs of listed companies, large private companies and Irish subsidiaries of overseas multinationals. Read more here. Produced in conjunction with Stores magazine, Deloitte's Global Powers of Retailing identifies the 250 largest retailers around the world. It also examines 10 trends for retailers to consider as they plan their growth strategies and confront the current economic crisis. Finally, it looks at "Q" ratio - a way of drawing inferences about the future performance of retailers by examining current financial information. Read more here. In this report, "A closer look", Deloitte summarises the main findings of the SEC comment letters on the financial statements of foreign private issuers which the SEC reviewed during its 2008/2009 review period. Read more here. "Finishing (in) figures - Surveying financial statements in annual reports" is the latest survey in the Deloitte UK financial statement series and analyses the financial statements of 130 listed entities.The appendix to the publication provides suggested solutions to common problems in financial statements. Read more here. A Deloitte UK survey, "Surveying narrative reporting in annual reports in 2009", analyses the narrative reporting of 130 listed companies. It includes a review of how companies varied in their application of disclosure and related requirements and how practice is evolving in the UK. The majority of matters commented on are also of significance for Irish companies. Read more here. 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