Taking audit policy forward: In the European Parliament Magazine of 19 December 2011, an article of FEE appeared including FEE’s views on the European Commission Audit Policy proposals of 30 November 2011. See on pages 114 and 115. View

 

Economic conditions continue to challenge preparers and auditors alike; focus must include going concern assumption and adequacy of disclosures: In light of the current environment, the IAASB reminds auditors of their important responsibilities under the International Standards on Auditing (ISAs) and that the appropriateness of management’s use of the going concern assumption is a matter to be considered on every audit engagement. View

 

FEE approves comments to EFRAG and the IASB on Investment Entities: On balance, FEE agrees with the IASB’s proposal for an exception to the consolidation principle on the basis that the measurement of investees controlled by an investment entity at fair value produces more decision useful information than consolidation. However, FEE does not support the proposal that the parent of an investment company would need to consolidate the investments that are controlled by an investment entity subsidiary, if it does not qualify itself as an investment company according to the ED. View

 

IAASB issues guidance on Special Considerations in Auditing Financial Instruments: The IAASB has issued International Auditing Practice Note IAPN 1000 which provides practical guidance to auditors auditing financial instruments. IAPN 1000 focuses primarily on the needs of auditors who have less frequent contact with financial instruments, but it is relevant to audits of entities of all sizes. It is non-authoritative and provides background and educational material on financial instruments to assist auditors in understanding them, as well as relevant audit considerations. View

 

IAASB releases disclosures feedback statement; shares global insights to support essential collaboration and cooperation: The Feedback Statement provides an overview of the key messages from the responses to the IAASB’s January 2011 Discussion Paper on "The Evolving Nature of Financial Reporting: Disclosure and its Audit Implications". It presents a summary of the range of views on some of the more significant challenges faced by participants across the entire financial reporting supply chain, including the impact of trends in financial reporting, applying materiality to disclosures, evaluating misstatements generated by disclosures, the availability of audit evidence to support disclosures, and work effort. View

 

International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectu: This ISAE deals with reasonable assurance engagements undertaken by a practitioner to report on the responsible party’s compilation of pro forma financial information included in a prospectus. The ISAE applies where such reporting is required by securities law or the regulation of the securities exchange in the jurisdiction in which the prospectus is to be issued, or this reporting is generally accepted practice in such jurisdiction. View

 

Publication of responses to ESMA's consultation on possible delegated acts concerning the Prospectus Directive: The purpose of this consultation document from ESMA was to seek comments on the technical advice that ESMA proposes to give to the European Commission on a number of possible delegated acts. Around 20 responses were received. View

 

Q&A on Market Abuse Directive regarding definition of inside information on dividends: ESMA published a Q&A on the definition of inside information of the Market Abuse Directive (MAD), with regards to information relating to dividends by an issuer of financial instruments that would be likely to have a significant effect on the prices of related derivative financial instruments. View

 

COSO releases consultation paper on "Internal Control - Integrated Framework": The Committee of Sponsoring Organisations of the Treadway Commission (COSO) has released, for public comment, an updated version of their framework on "Internal Control – Integrated Framework". The updated version is intended to help organizations improve performance with greater agility, confidence and clarity. The deadline for comments is set to 31 March 2012. View

 

US SEC disclosure guidance: European Sovereign Debt Exposures: This guidance provides the US SEC Division of Corporation Finance’s views regarding disclosure relating to registrants’ exposures to certain European countries. View

 

Discussion Paper 'Improving the Financial Reporting of Income Tax': EFRAG and the UK ASB of the FRC published a Discussion Paper ‘Improving the Financial Reporting of Income Tax’, which results from a project developed jointly, as part of EFRAG’s proactive agenda. Tax is an important expense for most companies, and transparent and complete financial reporting is complex because the tax effects of transactions do not always fall in the same period as they are reported in the financial statements. The Discussion Paper is open for comment until 29 June 2012. View

 

Revised membership of IFRS Advisory Council: The Trustees of the IFRS-Foundation, responsible for the governance and oversight of the International Accounting Standards Board (IASB), have announced the appointments and reappointments to the IFRS Advisory Council following the expiration of membership periods at the end of 2011. View