New Financial Architecture

From www.weforum.org On January 15, 2009, the World Economic Forum released its initial report from the New Financial Architecture project, “The Future of the Global Financial System: A Near-Term Outlook and Long-Term Scenarios.” The effort was mandated by the World Economic Forum’s investors and financial services communities in January 2008 to explore the driving forces that are shaping the global financial system and how these forces might affect governance and industry structure. Press release Project Steering Committee and executive summary of report (PDF 1.6 MB) Full report “The Future of the Global Financial System” (PDF 11.8 MB) Compendium - Driving Forces (PDF 1.7MB) Key conclusions from phase one report – “The Future of the Global Financial System” The phase one report identifies a near-term industry outlook characterized by an expanded scope for regulatory oversight, back to basics in the banking sector, some restructuring by alternative investment firms and the emergence of a new set of winners and losers. Over the long-term, a range of external forces and critical uncertainties will further shape the industry. In particular, our study found that the pace of power shifts from today’s advanced economies to the emerging world and the degree of international coordination on financial policy are the two most critical uncertainties for the future of the global financial system. The report therefore explores four challenging scenarios. Driving forces and critical uncertainties In phase one of the New Financial Architecture project, the World Economic Forum engaged more than 250 industry practitioners, policy-makers and academics in workshops, interviews and participation in a survey to identify and prioritize the key driving forces expected to shape the future of the global financial system between today and 2020. The engagement process resulted in an inventory of 34 prioritized driving forces (Figure 1). Figure 1: Survey results: prioritization of key driving forces on the future of wholesale financial markets The phase one long-term scenarios were developed using industry facts, figures and forecasts for key underlying driving forces, which are summarized in the following compendium: Key driving forces on the future of the wholesale financial markets Four scenarious for the future of the global financial system Financial regionalism is a world in which post-crisis blame-shifting and the threat of further economic contagion create three major blocs on trade and financial policy, forcing global companies to construct tripartite strategies to operate globally. Fragmented protectionism is a world characterized by division, conflict, currency controls and a race-to-the bottom dynamic that only serves to deepen the long-term effects of the financial crisis. Re-engineered Western-centrism is a highly coordinated and financially homogenous world that has yet to face up to the realities of shifting power and the dangers of regulating for the last crisis rather than the next. Rebalanced multilateralism is a world in which initial barriers to coordination and disagreement over effective risk management approaches are overcome in the context of rapidly shifting geo-economic power. Phase two priorities In phase two of the New Financial Architecture project, the World Economic Forum will work closely with industry stakeholders to delve deeper into the implications of this analysis, with the goal of exploring collaborative strategies and areas of systemic improvement. This will involve an examination of the potential future sources of systemic risk, as well as opportunities to reposition the industry for sustainable, long-term growth in ways that maximize the stability and prosperity of both the financial and real economies. Figure 2: Transition from phase one to phase two The World Economic Forum will be hosting workshops with key stakeholders throughout 2009 January 28 - February 1: Davos-Klosters, Switzerland March (TBC), London, United Kingdom May 14, Dead Sea, Jordan September 10, Dalian, China September (TBC), New York, United States For more information, please contact: Max von Bismarck, Director and Head of Investor Industries, max.vonbismarck@weforum.org Bernd Jan Sikken, Associate Director and Head of Emerging Markets Finance, berndjan.sikken@weforum.org Nicholas Davis, Associate Director, Scenario Planning, nicholas.davis@weforum.org

Accountants in Demand

THE humble accountant is in high demand. Despite the rising ranks of the unemployed, many companies still suffer from a shortage of skilled finance and accounting staff, according to a new survey of 4,800 hiring managers by Robert Half International, a recruiting firm. Fifty-six percent of respondents reported difficulty finding appropriate candidates for finance roles, with the most acute shortages reported in Hong Kong, Brazil and Japan. When compared to an identical poll last year, some of the largest jumps in frustrated recruiters were in continental Europe, namely France, Switzerland and the Netherlands. By contrast, companies in America are finding it easiest to hire skilled financial talent, perhaps reflecting the masses of qualified candidates cut loose from the country’s stricken financial services sector in recent months.

IASB publishes fair value findings...

Fair value accounting guidance set out by the US Financial Accounting Standards Board (FASB) is consistent with that published by the International Accounting Standards Board (IASB). Read original article.

That is the conclusion of a review by the IASB aimed at ensuring consistency in the way such rules are applied.

Following the accelerated 30-day consultation on the issue, relevant guidance from the FASB's Staff Positions on fair value measurement will be included when the IASB publishes an exposure draft on the same subject next month.

Sir David Tweedie, IASB chairman, said: "We have heard a clear and consistent message on financial instruments accounting - fix this once, fix it comprehensively, and fix it in an urgent and responsible manner."

This is why the IASB has set out a six-month timetable for replacing current standards relating to the subject, he added.

Earlier this month, the FASB launched two draft proposals aimed at improving guidance relating to fair value measurement and impairments.

SEC IFRS Roadmap moves slowly and relentlessly forward

NEW YORK, April 27, 2009 – PricewaterhouseCoopers’ leading International Financial Reporting Standards (IFRS) experts will be discussing the most recent and important developments in the move to adopt international accounting standards in the United States in a live webcast tomorrow afternoon. The discussion will address the latest thinking on IFRS from regulators, standard setters and other constituents on the debate over when, and how, IFRS should be adopted for use by U.S. domestic registrants.

Beginning at 3:30 p.m. on Tuesday, April 28, the event will be a 75-minute live video webcast, including a Q&A session at the end. Read original article.

To register for the webcast, please go to http://www.meetpwc.com/rsvp/invitation/invitation.asp?id=/m2c53c-1RHZ5W5F6LNWI. Once you register, you will receive a confirmation email with a link and access instructions for joining the webcast.

The deadline expired Monday on the 150-day comment period for the SEC's "Road Map" to adoption of IFRS. Amid uncertainty in the U.S. and global economies, and notwithstanding concerns that have surfaced from a wide range of constituents about costs and timing, the drive toward creating a unified set of high-quality financial reporting standards continues to move forward.

According to a newly released PwC report, IFRS is already affecting U.S. companies independently of moves to eventually adopt IFRS in the United States. The impact will broaden considerably over the next few years as ongoing convergence of U.S. GAAP and IFRS brings key changes to U.S. financial reporting. Those changes will have numerous implications for U.S. businesses, most notably revenue recognition, leases, consolidations and pensions. In these areas, in particular, companies may need to rethink certain business operations, strategies and agreements as a result of convergence (ranging from sales staff compensation to compliance with certain debt covenant agreements).

Meanwhile, companies are already feeling the indirect effect of IFRS adoption by their foreign subsidiaries and counterparties, particularly in customer and vendor transactions. These two simultaneous movements—ongoing IFRS adoption around the globe and convergence in the United States—will bring near-constant change to US financial reporting for years to come.

The discussion, which will highlight PwC’s point of view, and what the Firm sees as the next steps the SEC will take in moving toward adopting IFRS in the US, will be moderated by the Firm’s US IFRS Practice Leader, John J. Barry. Also taking part will be:

• David B. Kaplan, PwC partner and leader of the International Accounting Consulting Services team;


• David Schmid, PwC partner and leader of U.S. Global Accounting and Consulting Services;


• Angie Blomberg, partner in the firm's Transaction Services practice and a leader in the firm's IFRS efforts in the financial services industry;


• Richard Fuchs, PwC partner and IFRS Steering Committee member with extensive experience in IFRS conversion during postings in Germany, London and Hong Kong.

Video Advice on Surviving the Recession

From the Economist

Google has launched a new channel on its YouTube video site, dubbed “Survival of the Fastest”. Among the corporate executives, business-school professors and London mayors providing “bite-sized insights” for managers to help them navigate the downturn is Jason Karaian of CFO Europe. He discusses how the recession will reshape relationships among board members and why companies will focus much more on cash in the years to come.

IASB amends 12 standards

The International Accounting Standards Board (IASB) has made a range of amendments to 12 International Financial Reporting Standards (IFRSs). Read original article.

All the changes are part of the board's annual improvements project, which is used to make non-urgent adjustments to IFRSs.

The latest amendments reflect issues that were initially raised in proposals published in October 2007, August 2008 and January 2009.

• Print-friendly version of this press release [PDF]


• Annual Improvements project page


• IASB homepage

A spokesperson for the IASB said: "By presenting the amendments in a single document rather than as a series of piecemeal changes, the IASB aims to ease the burden of change for all concerned."

The changes are effective for annual periods beginning on or after January 1st 2010, unless otherwise specified, he added.

However, the IASB has decided to postpone reconsideration of two issues raised in the proposed changes of August 2008 due to comments received during the consultation period.

Recently, the board announced it is working on the proposals made by the leaders of the G20 nations at their meeting earlier this month.

To reveal, but not to regulate

IN PUBLIC, bankers have been blaming themselves for their troubles. Behind the scenes, they have been taking aim at someone else: the accounting standard-setters. Their rules, moan the banks, have forced them to report enormous losses, and it’s just not fair. These rules say they must value some assets at the price a third party would pay, not the price managers and regulators would like them to fetch. Unfortunately, banks’ lobbying now seems to be working. The details may be arcane, but the independence of standard-setters, essential to the proper functioning of capital markets, is being compromised. And, unless banks carry toxic assets at prices that attract buyers, reviving the banking system will be difficult. Read original article.

On April 2nd, after a bruising encounter with Congress, America’s Financial Accounting Standards Board (FASB) rushed through rule changes. These gave banks more freedom to use models to value illiquid assets and more flexibility in recognising losses on long-term assets in their income statements. Bob Herz, the FASB’s chairman, decried those who “impugn our motives”. Yet bank shares rose and the changes enhance what one lobbying group politely calls “the use of judgment by management”.

European ministers instantly demanded that the International Accounting Standards Board (IASB) do likewise. The IASB says it does not want to be “piecemeal”, but the pressure to fold when it completes its overhaul of rules later this year is strong. On April 1st Charlie McCreevy, a European commissioner, warned the IASB that it did “not live in a political vacuum” but “in the real world” and that Europe could yet develop different rules.

It was banks that were on the wrong planet, with accounts that vastly overvalued assets. Today they argue that market prices overstate losses, because they largely reflect the temporary illiquidity of markets, not the likely extent of bad debts. The truth will not be known for years. But banks’ shares trade below their book value, suggesting that investors are sceptical. And dead markets partly reflect the paralysis of banks which will not sell assets for fear of booking losses, yet are reluctant to buy all those supposed bargains.

To get the system working again, losses must be recognised and dealt with. Japan’s procrastination prolonged its crisis. America’s new plan to buy up toxic assets will not work unless banks mark assets to levels which buyers find attractive. Successful markets require independent and even combative standard-setters. The FASB and IASB have been exactly that, cleaning up rules on stock options and pensions, for example, against hostility from special interests. But by appeasing critics now they are inviting pressure to make more concessions.

Standard-setters should defuse the argument by making clear that their job is not to regulate banks but to force them to reveal information. The banks, their capital-adequacy regulators and politicians seem to dream of a single, grown-up version of the truth, which enhances financial stability. Investors and accountants, however, think all valuations are subjective, doubt managers’ motives and judge that market prices are the least-bad option. They are right. A bank’s solvency is a matter of judgment for its regulators and for investors, not whatever a piece of paper signed by its auditors says it is. Accounts can inform that decision, but not make it.

Banks’ regulators have to take responsibility. If they want to remove the mechanical link between drops in market prices and capital shortfalls at banks, they should take the accounts that standard-setters create for investors and adjust them when they calculate capital. They already do this to some degree. But the banks’ campaign to change the rules is making inevitable a split between two sets of accounts, one for regulators and another for investors. The FASB and IASB can help regulators to create whatever balance-sheet they want. But in doing so they must not compromise their duty to investors.

Cost savings on IFRS conversion?

From Accounting Principles

In response to the economic crisis and continued regulatory uncertainty surrounding IFRS, 71% of companies are slowing their implementation efforts, specifically holding off allocating staff to the project, or postponing their accounting differences diagnostics. However, companies need to ensure that these cuts do not compromise their long-term plans, and must use 2009 for low-cost, targeted assessment and preparation activities.

Waiting Game:
In the last few months, companies have been slowing-but not suspending-their IFRS implementation efforts. This is manifested in two key areas – companies have avoided ramping up their overall project teams, either by cutting back on their budgets, or by holding off allocating staff. At the same time firms are postponing accounting and IT diagnostics, or conducting them internally instead of using more costly consultants as initially planned.

Other Things on the Plate:

There are two main reasons for this slowdown:
Regulatory Uncertainty: Companies are holding back because of the uncertainty surrounding the IFRS Roadmap; including conflicting comments by senior policymakers about whether the SEC will continue ‘full speed ahead’ towards adoption, and strong dissatisfaction with having to wait until 2011 for the ‘go/no-go’ decision. This should be temporary, and will probably go away when the administration’s intentions become clearer, but as of now, companies are scared of committing to an expensive, company-wide set of changes, only to revert back because of policy shifts.

The Economic Crisis:

Companies have much more immediate spending needs than IFRS – currency exchange issues, higher pension costs, and other ‘distractions’ all crowd out increasingly scarce dollars, and are making it difficult for companies to justify spending for an IFRS transition that may not happen until 2014.

Don’t Cut Back Too Far:
While cutting back on IFRS may be an attractive option, companies need to be wary of stopping their IFRS efforts altogether. IFRS is a long term process, and even with the current uncertainty, companies must lay the groundwork in 2009 for the ongoing project in targeted, low-cost ways, including:

Conducting preliminary IFRS accounting research:

As IFRS standards are still being written, conducting highly detailed accounting diagnostics may be counterproductive at this stage. However, companies should dedicate an individual to track and evaluate IASB standards as part of their job, determine which ones are in flux, and which are stable, and use publicly-available and Roundtable resources to understand the key differences. This allows you to prioritize your future workplans.

Evaluate your organization for IFRS competency: Even if you don’t plan to form your project team yet, use 2009 to evaluate your company for people with good project management skills (including ‘big project’ experience in SOX or an ERP implementation), as well as those who have practical IFRS experience, perhaps through a foreign subsidiary. Determine whether you will be able to move these people onto your team, and determine any competency gaps that might need to be filled by outside consultants.

Start reaching out to key stakeholders:

IFRS will have a broad impact on corporate functions, and you need to start making stakeholders aware of IFRS. Start letting IT know you may need to change your General Ledger and other systems (and make sure you are in their long-term work plans), and inform legal and treasury about any debt covenants and contracts that mention US GAAP terms, and may need to be changed.

The key is not to commit to expensive changes – the external environment may not give you that flexibility, and many of the detailed changes are unknowable at this point anyway-but to get an understanding of the specific challenges you face, so that you will be in a good position to start detailed planning when its appropriate.

G20 must promote IFRS

Convergence to IFRS is essential if the global economy is to receover, according to reports released by the ACCA and the ICAEW. Read original article.

Two of the UK's leading accounting bodies, the ACCA and the ICAEW, are calling for leaders to champion the global adoption of IFRS at this April's G20 summit.

The ACCA has released a discussion paper arguing that G20 leaders should endorse the benefits of IFRS because they will bring ‘transparency, comparability and clarity to reporting in the interests of shareholders, business and the wider public’.

ICAEW chief Michael Izza also spoke out, suggesting that convergence towards IFRS is losing momentum and that the new US administration should make a concerted effort to get onto the IFRS roadmap.

"We live in a world where global issues require global solutions", said Izza. "A fragmented financial reporting system will continue to hamper comparability and transparency across borders".

ACCA president Richard Aitken Davis called it a 'major failing' that IFRS is not already the global accounting language for all finance professionals, and argued: "Priority must be placed on ensuring that existing legislative and regulatory measures are implemented and enforced effectively. Rushing through large swathes of new legislation is not the answer"

The G20 leaders’ summit is due to take place in London on 2 April.

Financial Management in Turbulent Times

INTERNATIONAL FINANCIAL MANAGEMENT ASSOCIATION SUISSE ROMANDE
Geneva Switzerland

http://www.ifma-geneva.org

IFMA in conjunction with CIMA, are pleased to inform you of a full day workshop:

Financial Management in Turbulent Times
28th April 2009 from 8:00 until 17.15

SWISSOTEL METROPOLE HOTEL, 34 Quai du Général Guisan, Geneva.
The event qualifies for CPE credits. Programme attached.

This one-day workshop enables financial managers to focus on the most valuable tasks in business during the downturn. Understand the background to the current economic climate, likely future events and how they will impact upon business and grasp what actions finance departments can take to benefit the business as a whole, and what opportunities are created by the downturn.
___________________________________________________________________________________________________________

Tim Luscombe
Associate Member of the Chartered Institute of Management Accountants (ACMA), management consultant & speaker, presenter of seminars, workshops and training courses on financial management, corporate strategy and the financial challenges faced by organisations during both upswings and downswings in the economy.
With a background in financial and general management in industries from manufacturing to oil & gas distribution, Tim has the ability to distil complex situations and explain them in everyday plain English.

___________________________________________________________________________________________________________

Who will benefit
•Finance managers responsible for teams or departments
•Finance professionals wanting to add value & assist in their strategic decision-making
•Business advisors providing financial services to corporations

___________________________________________________________________________________________________________
What you will gain
•Understanding of the current economic climate, likely future events & their impact on business.
•A toolkit of actions that finance professionals can take to benefit their business as a whole
•View of opportunities created by downturn for smart organisations.
•Working capital management;
•Asset management,
•Forecasting and planning in a down turn.
___________________________________________________________________________________________________________

Admittance is by registration only and limited to 25, first come first served.
Please register by email by 22nd April to signup.ifma@gmail.com.
The event costs CHF 700; CHF 600 for IFMA Members. Payment in advance should be received by 22nd April, failing which we will open the reservation to people on the waiting list.

IASB updates fair value rules ...

The International Accounting Standards Board (IASB) has issued a range of amendments to disclosure requirements relating to fair value rules.

Under the changes, firms will now have to supply additional information about the relative reliability of their fair value measurements.

The amendments, which take into account the views of the G20 group of nations, brings International Financial Reporting Standard (IFRS) 7 into line with the equivalent US rule.

Sir David Tweedie, chairman of the IASB, said: "The financial crisis has shown that a clear understanding of how entities determine the fair value of financial instruments, particularly when only limited information is available, is crucial to maintaining confidence in the financial markets."

The changes announced today will boost the clarity of financial reports, Sir David added.

Amendments to IFRS 7 will apply for annual periods beginning on or after January 1st 2009.

Meanwhile, the US Financial Accounting Standards Board is also conducting its own review into how fair value rules can be improved.

What do you think of the recent controversy around convergence in the US?

Many thanks to Greg Millman for posing this marvellous question.

I am looking forward to hearing your views on this.

I understand there is some controversy over the adoption of IFRS in the US. This is nothing new… the IFRS resistance has been pretty strong in the US for a number of years. I understand the reluctance of professionals who, having had to study one thick book on USGAAP, are dreading the thought of studying another thick book on IFRS.

Most International Finance Professionals in Europe had to do exactly that. First study local GAAP, which varies from country to country, and then figure out how it all related to USGAAP… Only a determined few still had the energy to go on to study IFRS.

The best argument against the adoption of IFRS, comes from the extra financial burden that this will place on US companies. The timing is not great either. However, future savings will be made by reporting in just one format, and not having to perform reconciliations between different reporting methods. As to the timing, maybe that isn’t so bad either, IFRS implementation will certainly generate a lot of work for finance professionals!

The best way out of a recession in my opinion is to work your way out of it. Wealth creation must come before wealth distribution. We have years of catching up to do.

IFRS has the huge advantage of being a tried and tested platform for the unification of accounting practices across the globe. For stakeholders too, one common reporting language will simplify decision making and make financial statements more transparent.

The other glaring advantage is that it works. USGAAP is rules orientated whilst IFRS is based on a conceptual framework. The “IFRS resistance” often seizes on this phrase as a major downside. I would simply point out that UKGAAP has been based on the same conceptual framework for a very long time. The UK has suffered some embarrassing corporate failures, but there has never been anything on the scale of Enron, Worldcom or Global Crossing - all these occurred on USGAAP’s rules based watch. I believe that USGAAP with its prescriptive approach to accounting issues has become too cumbersome to be truly effective.

Sarbanes Oxley was designed to save USGAAP from a re-run of these high profile corporate failures; however the heavyweight tag team, Sox and USGAAP, could not stop the current financial crisis. Most commentators agree that this crisis emanated from the United States. Many other countries played their own part in making things worse, but it was the American subprime mortgage issue that brought down the whole house of cards.

Over the last twenty years the US has been resisting IFRS, yet these International Standards have been slowly and persistently adopted by many countries around the world. With Canada Brazil, Mexico and India now poised to adopt IFRS, the US is looking more and more isolated in its stance, and so I believe that USGAAP’s days are numbered.

It really is a matter of when, and not if IFRS is adopted in the US.

Eastern Europe’s worries are not unmanageable, they are simply not being managed.

Outsiders tend to lump the ex-communist world or eastern Europe together, as though a shared history of totalitarian captivity was the main determinant of economic fortune, twenty years after the empire collapsed. Though many problems are shared, the differences between the ex-communist countries are often greater than those that distinguish them from Old Europe. Read more...

IFRS en Français

Liens Utiles

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• IASB
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Watches

Switzerland

Rapport de gestion 2006

Ici, vous pouvez télécharger la version complète de notre dernier Rapport de gestion pour l'année 2006. Ou, vous pouvez ne télécharger que la partie «Comptes annuels» de notre dernier Rapport de gestion pour l'année 2006 (pages 137 à 199).

Rapport de gestion 2006

Rapport de gestion 2006 – Version complète: 2006_annual_report_complete_fr.pdf (8,25 MB)

Rapport de gestion 2006 – Comptes annuels: 2006_annual_report_finance_fr.pdf (660,13 kB)

Vous pouvez aussi télécharger les versions antérieures de nos Rapports de gestion.

Et en Anglais

Annual Report 2006

Here you can download the complete version of our latest Annual Report for the year 2006. Or you can download only the financial statements of our latest Annual Report for the year 2006 (pages 137 to 199).

Annual Report 2006

Annual Report 2006 – Complete version: 2006_annual_report_complete_en.pdf (8.17 MB)

Annual Report 2006 – Financial Statements: 2006_annual_report_finance_en.pdf (640.96 kB)

Of course you can also download the Annual Reports of previous years.

Crisis Group says accounting ‘was not core problem’

Four themes have emerged from the first meeting of the Financial Crisis Advisory Group, set up by the IASB and FASB:

• accounting was not the core problem that caused the financial crisis but fair value played some part especially regarding pro-cyclicalit.

• rules regarding consolidation / de-recognition need to be enhanced.

• fair value rules are too complex and need simplification.

• some participants called for the ability to make transparent and open ‘dynamic’ provisions with IFRS. This would allow entities to establish provisions in good times that could be used in bad times. Others argued that this is a regulatory issue and could be resolved by appropriate reserve allocation to restrict distributable profits.

The group will continue its discussions in February and March. For further information see the IASB website.

US to overhaul mark-to-market accounting

The SEC has recommended against the suspension of fair value accounting standards but identified eight improvements to their application. These include reconsidering the accounting for impairments and the development of additional guidance for determining fair value of investments in inactive markets, including situations where market prices are not readily available.

Read the SEC press release.

Obama nominee challenges independence of IASB

New US president Obama’s nominee for the role of SEC chairman, Mary Schapiro, expressed concerns about the adoption of IFRS in the US during her nomination hearing.

While recognising the benefits of a single set of accounting standards used around the world, Schapiro believes that IFRS are not as detailed as the US standards and leave a lot to interpretation. In addition, she has significant concerns about the independence of the IASB and the amount of rigor that exists in the IASB’s standard-setting process. Schapiro indicated that the SEC would proceed with caution and would not necessarily feel bound by the existing roadmap.

View the webcast of Schapiro’s nomination hearing.

The SEC is currently consulting on its proposed roadmap for convergence with IFRS.

IASC announces stronger links with regulators...

The International Accounting Standards Board (IASB) will face greater scrutiny in the decisions it makes in order to boost its legitimacy.

At a meeting held in New Delhi earlier this month, the trustees of the International Accounting Standards Committee (IASC) Foundation, which oversees the IASB, agreed to changes which will see regulatory authorities play a greater role in the way in which the foundation operates.

In order to achieve this, a monitoring body comprising of leaders from bodies including the US Securities and Exchange Commission, the European Commission and other regulators will be set up to oversee the work of the IASC Foundation.

The change was made in light of recommendations made by the G20 nations at their meeting in November 2008.

Gerrit Zalm, chairman of the IASC trustees, said: "The IASB as an independent standard-setter and the trustees as the oversight body are strengthened by the enhanced governance provided by the link to public authorities through the Monitoring Board.

The new arrangements will help ensure the independence of the IASB, he added.

Recently, the IASB established an action group aimed at dealing with reporting issues arising from the financial crisis.

IASB holds first financial crisis advisory group meeting in London

The first meeting of the Financial Crisis Advisory Group, took place on Tuesday 20th January in London. These proceedings were captured by audio webcast and broadcast live at the time of the meeting - they have also now been released as an archived web stream file.

The meeting's agenda included:

General Overview Session and Issues Briefing:

• - Financial Reporting Issues Overview - Sir David Tweedie & Robert Herz
• - Briefing on IASB and FASB Joint and Separate Projects - Gavin Francis & Russell Golden
• - Overview of SEC Report on Mark-to-Market Accounting - James Kroeker
• - Remarks of Other Observers:

Basel Committee of Banking Supervisors - Sylvie Matherat


Committee of European Securities Regulators - Fernando Restoy


International Association of Insurance Supervisors - Monica Mächler


Japan Financial Services Agency - Junichi Maruyam

After lunch the sessions addressed:

• Issues Discussion.
  
• Where did financial reporting help identify issues of concern, or create unnecessary concerns, during the credit crisis?
• Where could financial reporting standards have provided better transparency to help either anticipate the crisis or respond to it more quickly?

Go the the IASB website here to access these files in full and for free

The KPMG SOX 404 compliance Institute

The 404 Institute was established to provide an open forum for the exchange of ideas on SOX 404 compliance

404 Institute members have always played a vital role in determining our agenda. Five years after the adoption of Section 404 became mandatory; our members report that compliance activities are continuing to be integrated into the corporate environment. As a result, members previously focused entirely on compliance are taking on increasingly operational roles. Given these dynamics the Institute is expanding its focus to meet your evolving needs by continuing to offer guidance and thought leadership on the broader set of financial management issues that affect you.

To help address your needs, we will cover a range of topics in addition to section 404 compliance - including financial reporting, and risk and controls. This will enable us to continue providing you with an open forum where ideas can be exchanged and leading practices developed on issues that impact you most.

We invite you to explore our updated Web site to find the wider range of topics and events we're scheduling to help you address the broader scope of issues you face.

This puts it in perspective

More than a billion people are using the internet

THE number of people going online has passed one billion for the first time, according to comScore, an online metrics company. Almost 180m internet users—over one in six of the world's online population—live in China, more than any other country. Until a few months ago America had most web users, but with 163m people online, or over half of its total population, it has reached saturation point. More populous countries such as China, Brazil and India have many more potential users and will eventually overtake those western countries with already high penetration rates. ComScore counts only unique users above the age of 15 and excludes access in internet cafes and via mobile devices.

IFRS 'facing a critical year'...

The prospect of a global accounting language is a welcome one, but 2009 will be a critical year for the adoption of International Financial Reporting Standards (IFRS), according to one expert.

Will Rainy, global head of IFRS at Ernst and Young, explained that as an International Accounting Standards Board moratorium on the issuing of new standards has now come to an end, companies using IFRS face a wave of new standards and interpretations.

He said: "With almost 500 pages of new or revised standards and interpretations, companies face a major challenge getting up to speed on and correctly applying the new requirements."

The changes could have an impact on things such as IT systems, merger deals and share-based payment plans as well as accounting, Mr Rainey added.

Yesterday, Fitch Ratings claimed that 2009 will be a pivotal year for accounting. Fair value will be a particular focus, the firm stated.