| The International Accounting Standards
Board (IASB), in a discussion paper on IAS 19,
Employee Benefits , set out its
preliminary views on how the accounting for some
post-employment benefits, including pensions, could
be improved. |
The discussion paper, developed in
consultation with the IASB’s Employee Benefits
Working Group, addresses the main concerns
expressed by a wide range of interested parties
that the accounting model set out in IAS 19 is
inadequate and should be reviewed.
IASB’s preliminary views on how to address those
main issues are:
To remove the options for deferred
recognition of gains and losses in defined-benefit
To introduce a new classification of
benefit promises into contribution based promises
and defined-benefit promises, with a new
measurement attribute for contribution-based
Comments are due by Sept. 26.
For more information, visit www.iasb.org .
The SEC announced a series of actions
it intends to take toward implementing mutual
recognition for high-quality regulatory regimes in
Exploring initial agreements with one
or more foreign regulatory counterparts, which
would be based upon a comparability assessment by
the SEC and by the foreign authority of one
another’s regulatory regimes.
Considering adoption of a formal
process for engaging other national regulators on
the subject of mutual recognition. This process
could be accomplished through rulemaking or other
appropriate mechanisms, possibly informed by one
or more initial agreements with other regulators.
Developing a framework for mutual
recognition discussions with jurisdictions
comprising multiple securities regulators tied
together by a common legal framework, including
Canada (which has no national securities
regulator, but rather provincial regulators) and
the European Union (whose national securities
regulators are subject to supranational
legislation and directives).
Proposing reforms to Rule 15a-6 to
improve the process by which U.S. investors have
access to foreign broker- dealers.
The International Auditing and
Assurance Standards Board (IAASB) released
International Standard on Auditing (ISA) 580
(Revised and Redrafted), Written
Representations . ISA 580 (Revised and
Redrafted) contains new requirements designed to
improve the auditors’ practice in relation to the
written statements that management provides to
auditors to confirm certain matters or to support
other audit evidence. During the development of
the standard, the IAASB considered matters such as
the reasons for requesting written
representations, the value of the evidence that
they provide, and from whom they should be
The standard requires the
auditor to request written representations
provided by management on two fundamental matters—
that it has fulfilled its responsibility for the
preparation and presentation of the financial
statements; and that it has provided the auditor
with all relevant information and that all
transactions have been recorded and are reflected
in the financial statements.
may deem it appropriate to request other written
representations during the course of the audit.
Other ISAs also include requirements for the
auditor to request certain written representations
in respect of specific matters. In addition, ISA
580 (Revised and Redrafted) includes requirements
for appropriate action by the auditor when written
representations are not provided by management or
are considered to be unreliable.
is available at www.ifac.org .