The trustees of the International Accounting Standards Committee (IASC) Foundation published the Due Process Handbook for the International Financial Reporting Interpretations Committee. In May 2006, the IASC Foundation released a draft of the handbook for public comment. The trustees approved an amended version at their January meeting.
The handbook can be viewed at www.iasb.org, where printed copies soon will be available for about $20.
A report by the Forum of Firms (an organization affiliated with the International Federation of Accountants) found that firm needs and processes related to International Financial Reporting Standards (IFRS) vary greatly depending on firm size and number of IFRS clients. The report, Perspectives on the Global Application of IFRS, was based on interviews with 10 international accounting firms. The document illustrates progress made with IFRS and sets out examples of good practices firms are implementing. For a free download, visit www.ifac.org/Members/DownLoads/TAC_IFRS_Report.pdf.
The International Accounting Standards Board (IASB) has proposed an amendment to International Accounting Standard (IAS) 24, Related Party Disclosures. The exposure draft would reduce the disclosure requirements in IAS 24 for some entities that are related only because they are government-controlled or significantly influenced by a national government. The ED also proposes to clarify the definition of a “related party.” The ED is available at www.iasb.org/Open+to+Comment . Comments are due May 25.
The International Auditing and Assurance Standards Board (IAASB) is seeking comments on proposed revisions to International Standard on Auditing (ISA) 550 (Revised and Redrafted), Related Parties . The overall aim of the project is to enhance the auditor’s consideration of related parties and related party transactions in an audit of financial statements, establishing an approach that requires the auditor to assess the risks of misstatement and direct audit work accordingly. Regardless of whether an applicable framework of financial reporting requires accounting for and disclosure of transactions and relationships with related parties, auditors should be aware of related parties and how they might affect financial statements, the IAASB said. The new exposure draft of ISA 550 addresses issues raised by respondents to an earlier ED. Those issues included risk assessment procedures for related parties and the procedures’ relationship to requirements of other ISAs concerning audit risk and fraud. The IAASB also sought to clarify a distinction between risk assessment procedures and responses to assessed risk. Comments on the draft, which is available at www.ifac.org/Guidance/EXD-Details.php?EDID=0077, are requested by June 30.