ACCOUNTING

Accountancy SA, Aug 2008

IASB CONCLUDES FIRST ANNUAL IMPROVEMENTS PROJECT

The International Accounting Standards Board (IASB) has issued Improvements to IFRSs - a collection of amendments to International Financial Reporting Standards (IFRSs). These amendments are the result of conclusions the IASB reached on proposals made in its annual improvements project, which were exposed for comment in October 2007. Unless otherwise specified, the amendments are effective for annual periods beginning on or after 1 January 2009, although entities are permitted to adopt them earlier.

This document will be discussed at the next Accounting Practices Board (APB) meeting and will be issued as Improvements to Statements of GAAP thereafter, if approved by the APB.

These improvements to IFRSs will be covered in the annual accounting update seminar, which will be held later in the year. Improvements to IFRSs can be downloaded from the SAICA handbook-on-line, international section.

AMENDMENTS FOR DETERMINING THE COST OF AN INVESTMENT IN THE SEPARATE FINANCIAL STATEMENTS

The IASB has issued amendments to IFRSs for determining the cost of an investment in the separate financial statements.

The amendments to IFRS 1 - First-time Adoption of International Financial Reporting Standards and IAS 27 - Consolidated and Separate Financial Statements respond to constituents' concerns that retrospectively determining cost and applying the cost method in accordance with IAS 27 on first-time adoption of IFRSs cannot, in some circumstances, be achieved without undue cost or effort. The amendments are effective for annual periods beginning on or after 1 January 2009, with earlier application permitted.

This document will be discussed at the next APB meeting and will be issued as amendments to Statements of GAAP thereafter, if approved by the APB.

The amended IFRS 1 - First-time Adoption of International Financial Reporting Standards and IAS 27 - Consolidated and Separate Financial Statements can be downloaded from the SAICA handbook-on-line, international section.