Technical Update Refresher for Academics Presentation Slides

7/31/2019 Technical Update Refresher for Academics Presentation Slides

1/58

1

Professional ethics

Anne Davis

Integrity and Ethics Manager

ICAEW Code of Ethics key points

IFAC +

Mandatory

www.icaew.com/ethics

Objectivity

Considerthreats

Applysafeguards

Principles based approach

InformationTechnology

Audit andAssurance

Tax

Integrity

or dont

do it

Confidentiality

Professionalbehaviour

ProfessionalCompetence& due care


2/58

2

Integrity

straightforward and honest in all professional and business

relationships

should not be associated with false or misleading information

Objectivity

not allow bias, conflict of interest or under influence to

override judgements

relationships which bias or unduly influence professional

judgement should be avoided

Professional competence and due care

continuing duty to maintain professional knowledge and

skill at the level required to ensure competent professionalservices... to client or employer

should act diligently and in accordance with applicabletechnical and professional standards.


3/58

3

Confidentiality

respect the confidentiality of information acquired

. confidential information should not be used for the personaladvantage

Professional Behaviour

comply with relevant laws and regulations

and should avoid any action that discredits the profession

Threats

Self-interest: may occur as a result of your financial or other

interests or that of an immediate or close family member

Self-review: may occur when a previous judgement needs to be re-evaluated by you and you were responsible for that judgement

Advocacy: may occur when you promote a position or opinion tothe point that subsequent objectivity may be compromised


4/58

4

Threats (continued)

Famil iarity: may occur when, because of a close relationship, you

become too sympathetic to the interests of others

Int imidation: may occur when your objectivity is threatened bythreats, actual or perceived

Safeguards

Profession, legislation or regulation

Firm wide

Engagement-specific

Client

Framework for Ethical Decision-Making

Do I have all the facts relevant to this situation?

Who should be involved in the discussions?

What are the ethical issues involved?

What are the alternative courses of action and theirassociated consequences?


5/58

5

Test your decision

Is the proposed solution workable?

Would a reasonable (and informed) third party reach thesame conclusion?

Will the decision compromise my professional and/or personalreputation?

Would the decision, if open to public scrutiny, make me, myfamily, friends or colleagues proud?

Case study: a proposal

You are the only Chartered Accountant working in a small company

specialising in microchips. You have recently been appointed Finance

Director and have a small finance team of 5 staff, some of which are

studying for their accountancy qualification. The company has difficulty

attracting and retaining skilled staff. As a result, the Board has asked

you to draw up a benefits package to assist in overcoming this

problem. You are told that your entitlement to your benefits will be in

accordance with the new scheme.

What should you do?

Options

1. Develop the proposal for the new benefits package

2. Declare your conflict of interest and dont work on theproposal for the new benefits package

3. Develop the proposal, declare your conflict of interest anddont vote on the proposal.


6/58

6

Case study: auditor independence

You are working for a large international public practice. Your audit

client is a subsidiary of a retail company based in a country with a reputation

for corruption and poor governance. The retail company is one of your

firms larger clients and you know that there is a possibility of a change

of auditors next year. You feel there is insufficient evidence to support

some of the financial information in the accounts and that the audit

opinion needs to be qualified. You understand that additional

information and assurance have been obtained by Head Office, and the

audit has been signed off. You are told that you will not be on the audit

team next year.

What should you do?

Options

1. Carry on as normal and dont raise your concerns anyfurther. After all, you are not ultimately responsible for theaudit opinion.

2. Raise your concerns with your managers superiors.

3. Check your information and register your concerns formally

with your manager.

Changes to ICAEWs Code of Ethics Driven by IFACs Ethics Standards Board (IESBA)

Tentative dates:

Revised Code issued October 2010

Implementation date 1 January 2011

Key changes:

Drafting conventions

Independence requirements


7/58

7

Drafting conventions

Shall replaces should

Consistency in other terminology:

consider, evaluate, determine

removing the word example

Replacement of clearly insignificant with acceptable level

Temporary departure from the Code

Independence requirements

Structure

Section 290: audit and review engagements

Section 291: other assurance engagements

Key changes:

Extending independence requirements for audits of listedentities to audits of all public interest entities

Partner rotation/cooling off requirements Strengthening some of the requirements relating to the provision

of non-assurance services to audit and public interest entities.

Key changes to independence requirements Extending independence requirements for audits of listed

entities to audits of all public interest entities

Extending partner rotation requirements to

all audits of public interest entities

all key audit partners

Eliminating existing flexibility for firms with few partners toapply alternative safeguards instead of partner rotation toaddress familiarity threat

Requiring mandatory "cooling-off" period before a key auditpartner joins former audit client that is public interest entity, orindividual who is a firm's Senior or Managing Partner (ChiefExecutive or equivalent) joins such an audit client


8/58

8

Key changes to independence requirements

Prohibiting key audit partners from being evaluated on or

compensated for selling non-assurance services to their auditclients

Blanket prohibitions of providing non-assurance services to auditand public interest clients:

internal audit services

taxation services

valuation services

IT systems services

recruiting services

Requiring a pre- or post-issuance review of the second years auditif total fees from an audit client that is public interest entity exceed15 percent of the total fees of the firm for two consecutive years

APB Ethical Standards

applies to audits conducted in the UK and ROI

consultation on provision of non-audit services

Issued October 2009

Deadline January 2010

Revised Ethical Standard 5 for consultation (probably July 2010)

www.frc.org.uk/apb/publications/ethical.cfm

How does ICAEW promote ethics? Code of ethics

Education and support

Enforcement

Thought Leadership


9/58

9

www.icaew.com/ethics

[email protected]


10/58

1

Does it matter any more whether a small ormedium sized business sets up as acompany?

Anita Monteith

1 July 2010

Size of the SME sector

4.8 million private sectorenterprises in the UK at thestart of 2008

Small and medium-sized

enterprises (SMEs) togetheraccounted for 99.9% of allenterprises, 59.4% of privatesector employment and 50.1%of private sector turnover.

1,500 billionturnover

3,000 billionturnover

13.7 millionemployees

23.1 millionemployees

SMEsPrivate sector

total


11/58

2

SME business creation

500 new businesses created every day

Enhanced online services for SMEs (Budget 2010 Red Book, para4.20)

Delivering a new relationship with business: Reducing burdens andhelping businesses get it right

From Businesslink:

A personalised web service for those starting up in business; better accessto tax guidance for all SMEs;

flexible tax payment plans to help businesses manage their cash flow.

From HMRC:

A single interactive form to enable new businesses and new employers toregister for multiple taxes online and to authorise tax agents

SME business form

Legal structures available

Sole trader

Partnership

Limited company

Limited liability partnership


12/58

3

Considerations relevant to incorporation decision

Commercial and financial

Raising finance

Customers insist (eg IT industry)

Ownership considerations

Need to limit personal liability

Administrative burden

Personal reasons

Tax reasons

Taxes involved in the decision

Unincorporated businesses

Sole traders, partnerships (and limited liability partnerships)

Income tax; national insurance contributions (NIC)

Companies

Corporation tax

VAT is paid by all VAT registered businesses

The taxes themselves arent the only aspect of tax which isdifferent for different business forms.


13/58

4

Does the tax tail wag the commercial dog?

Business life cycle

Start up, early years, growth, exit

Encouragement for business transfers

Eg retirement, sale of business, mergers etc

Certain reliefs are only available to companies

Research and development tax credits

Tax relief for investment in a company

Venture capital, Enterprise Investment Scheme Enterprise Management Incentives

Example use of a car for business, but with some private use

What tax is payable by sole traders

All profits of the business are taxed as income of theindividual regardless of how much cash is withdrawn

Income tax rates 20%, 40% and from 2010/11, 50%

Class 2 national insurance contributions (NICs) (currently2.40 per week in 20010/11)

Class 4 NICs at 8% on profits between 5,715 and 43,875per year and at 1% on profits above 43,875


14/58

5

What tax is payable by a partnership

Partnerships are tax transparent

Individual partners are taxed personally on their shares ofprofits, gains and losses as set out in the partnershipagreement

NICs are similar to those applied to sole traders

The partnership itself is not a separate taxable entity

Also applies to LLPs

Corporation tax rates

Financial year 2011

(1 April 2011 onwards)

Small profits rate to be reduced to20%

Dividend extraction remains attractive, butpara 2.74 of the Red Book,

The Government remains committed to a reviewof IR35 and small business tax and willrelease further details shortly


15/58


16/58

7

Joe LeMini

Joe LeMini has decided to start his own business repairinglawn mowers. He is married and his wife has agreed to workfor the business as well.

He estimates that his profits for the first year of trading, 1 April2009 to 31 March 2010 will be 25,500.

Sole trader, employing his wife for a salary of5,500pa

Income tax at 20% 2,705

National insurance contributions

Class 2 52 weeks x 2.40 124.80

Class 4

8% x (20,000 5,715) 1,142.80

Total tax and NIC 3,972.60


17/58

8

Joe and his wife are equal partners

Income tax at 20% 1,255

National insurance contributions

Class 2 52 weeks x 2.40 124.80

Class 4

8% x (12,750 5,715) 562.80

Mrs LeMini will pay the same

Total tax and NIC 3,885.20

Joe trades through a company

Joe pays himself and his wife a minimal salary of 5,500each.

The company pays remaining profits after tax to the couple byway of dividends.

Profits 25,500

Less paid to Mr & Mrs LeMini 11,000

Taxable 14,500

Corporation tax at 21% 3,045


18/58

9

Does it matter any more whether a small or mediumsized business sets up as a company?

If the tax bill is the only concern, then yes it does. It mattersnow more than ever because companies pay much less tax.

Next question for Government

Is it fair that small businesses have this option?

Small business tax review to take place


19/58

10

Tax Faculty

Anita Monteith

1 July 2010


20/58

1

Gavin Aspden FCA

Director, Qualifications

Overview of ICAEW qualifications- How we can work together

The ACA multiple entry routes

Graduate route

Dont need maths/accounting at A-level

84% of ACA students have a degree

Majority of these have a non-relevant degree eg,law, civil engineering, modern languages, history

School- leavers (A-levels or international equiv.)

Fast Track programmes (from AAT)

Certificate in Finance, Accounting and Business


21/58

2

ACA exam structure Credits for prior learning available

The end result

84% of FTSE 100 companies have an ACA ontheir board FAME Company InfoJune 2009/ FTSE UK Quarterly ReviewJune 2009 / ICAEW member data June2009

55 FDs of FTSE 100 companies hold an ACA significantlymore than any other qualification Accountancymagazine April 2009

In the Accountancy Age2009 Top 50 financial power list, of the20 qualified accountants on the list, 15 are ICAEW members(75%)


22/58

3

ICAEW Other qualifications and developmentprogrammes


IFRS Products

IFRS Learning and assessment programme

IFRS for SMEs

Certificate in International Public Sector Financial Reporting (Cert IPSFR)

Diploma in IFRS

Business Sustainability Programme

Certificate in Insolvency

Corporate Finance qualification

Diploma in Charity Accounting (DChA) Forensic Accountant and Expert Witness Accreditation

Pathways to Membership

www.icaew.com/learning


No previous academic qualifications are required

Stepping stone to the ACA

Can be completed in less than one year

Computer-based assessment for all modules

Option of self-study, classroom based tuition or e-learningtuition is available.

International appeal


23/58

4

IFRS products

IFRS learning and assessment programme

Study manual and online learning materials

Online assessment

Around 70 hours of study

Access to the programme lasts for 12 months

Already used by a number of Universities around the worldwithin their undergraduate and post graduate degreeprogrammes

Teaching materials available

IFRS products new this year!

IFRS for SMEs

Online learning materials and assessment


Certificate in International Public Sector Financial Reporting

In partnership with CIPFA Online learning materials and assessment


Diploma in IFRS

Currently only available as a post qualification product


24/58

5

Business Sustainability Programme

E-learning product

Benefits of programme

Make a contribution to the bigger picture

Increase awareness of business challenges

Awareness of how to exploit business opportunities

Convenient, flexible learning

No formal examinations

Access to resources and telephone support

Low cost

Gavin Aspden FCA

Director, Qualifications

Overview of ICAEW qualifications

- How we can work together


25/58

1

Research and event funding

Gillian Knight

Research Manager

Use of the PD Leake trust funds

to benefit and advance the science of accounting

Annual spend of 200,000

Research projects - 30,000

Events - 2,000

Academic advisers, ICAEW staff, board and trustees


26/58

2

Event funding

Non-commercial

In the public interest

Brings together academics and practitioners

Encourage debate and research in our areas of interest

Encourage young scholars

Opportunities for ICAEW staff to be involved

Examples of events funded in 2010

BAA doctoral colloquium (Cardiff, March)

Management Accounting Research Group conference (London,

April)

Manufacturing Accounting Research conference (Ghent, June)

Managerial Compensation conference (Cardiff, September)

Workshop on European Financial Reporting (Stirling, September)


27/58

3

Research project funding

Topic thought leadership initiatives

11 key topics + Learning and Professional Development

Researcher or team

Process

Pre-proposal as a basis for a two-way discussion

Examples of research projects

A study of UK bank risk disclosures pre and post-credit crisis (York)

Corporate social accountability of professional firms offeringaccounting-related services (West of Scotland)

Fair value accounting: an institutional analysis (LSE)

Real integrity: practical techniques for promoting it in business(Leeds)


28/58

4

Thank you

For more information contactGillian Knight

[email protected]


29/58

1

Jessica Whytehorn

Academic education manager

Partner in Learning

Agenda items

Overview of Partner in Learning Scheme

CFAB & BSP

Credit for Prior Learning (CPL)

Graduate Recruitment

Overview - Partner in Learning scheme


30/58

2

Higher Education Institutions (HEIs)

Engagement with ICAEW

Engagement with graduaterecruitment events

Use of ICAEW resources &learning materials

ACA/CFAB modulesincorporated into programme/s

ACA Worldwide ACA training

ACA TRAINING:UKChinaCyprus

GreeceThe GulfMalaysiaPakistanRomaniaRussiaSingapore


31/58

3

Resources - qualifications

ACA

two stages: the professionalstage and the advanced stage

CFAB

Made up of six modules: business& finance, managementinformation, accounting, law,assurance and principle oftaxation

Corporate finance

Two part programme: diplomaand advanced stage

BSP made up of five modules

Icaew.com/partnerinlearning

ProfessionalStage

AdvancedStage

6 knowledge modules each assessment 1.5 hours long

6 application modules each assessment 2.5 hours long

Case study 4 hour assessment

2 Advanced Stage Modules eachassessment 3.5 hours long

Modular exam structure


32/58

4

ACA qualification

Example of resource available for business & finance


33/58

5

Business Sustainability Programme (BSP)

Business Sustainability Programme (BSP)

What are Business Sustainability

and Corporate Responsibility?

What is the business case forCorporate Responsibility?

Corporate Responsibility in action

How do businesses embedCorporate Responsibility?

What will you do? (A personal andcorporate action plan)

Benefits of BSP

Flexibility to undertake the programmeat any time

An easy and effective method ofbuilding knowledge on corporateresponsibility and businesssustainability

Self assessment throughout theprogramme consolidates the usersunderstanding and competence insubject areas


34/58

6

The BSP was extremely effective in

increasing awareness of corporate

responsibility and sustainability. It was

informative, enjoyable and took

approximately two hours to complete.

Laura Lewis, Portsmouth University student

Learning materials

Workbooks and past cases for threeprevious exams

Workbook covering case study approach

Financial analysis workbook

Advanced Stage

Case Study - 70

Four study manuals covering each coretechnical area

Two revision question banks

Practice question bank

Mock exams two per sitting (tutors)

Electronic course exam questionbanks (tutors)

Advanced Stage

Technical integration level - 140

Study manual

Question bank

Mock exams two per sitting (tutors)

Electronic question bank (tutors only)

Professional Stage

Knowledge level - 25

Application level - 40


35/58

7

Partnership degrees

ACA/degree programme

ACA placement year programme

Completing 80% ACA exams as part of degree

Incorporating CFAB as diploma

Certificate in Finance Accounting and Business (CFAB)


36/58

8

Certificate in Finance,Accounting andBusiness (CFAB)

CFAB - features

Free e-membership ofFaculties for a year

Can be completed in a year

Flexible study pattern andrange of study options

Credit for prior learningavailable

No formal academic entry

requirements

CFAB


37/58

9

Businessand Finance

ManagementInformation

Accounting(mandatory)

Law Assurance Principles ofTaxation

How and what will students learn?

Principles ofTaxation

Credit for Prior Learning apply

Businessand Finance

ManagementInformation

Accounting(mandatory)

Law Assurance Principles ofTaxationAccounting

(mandatory)

CFAB - options for you Degree entry route

Postgraduate diploma

Split or block days, evening or mid week courses

Weekend courses

Summer school

Credit for prior learning


38/58

10

Cost of CFAB

Fees

Registration fee 165

6 modules exams@ 60 360

6 study manuals @ 25 150

Total 675

Newcastle University Business School is

delighted to be working with the ICAEW in

relation to the CFAB qualification, which

will form an integral part of our new

Graduate Diploma programme. We believe

the content and relevance of the CFAB

programme forms an excellent introduction

into the areas of Finance, Accounting and

Business

Credit for Prior Learning


39/58

11

Credit for Prior Learning what it means

Students who have undertaken previous learning may have already

studied modules covered in the ACA or CFAB

We recognise prior learning and do not require students to sit thesepapers but a decision about whether to take a credit can often restwith the employer.

For students with a degree it is possible to claim up to 8 credits; forstudents with another professional qualification it is possible to claimup to 12 credits.

CPL- applications process

A self certification process is applied to all

HEIs and Professional Bodies must take responsibility for reviewingtheir syllabus and matching learning outcomes with that of our ownACA/CFAB syllabus

Update us immediately of any syllabus change that may impact ontheir credit and make an annual declaration to confirm that theircourses remain fit for purpose

CPL- applications handling JessicaLearning Team: Responsible for initial enquiries from HEIs

KirstenLearning Team: Responsible for CPL policy

CPL updated alongside syllabus

Guidance & support for professional bodies and H igher EducationInstitutions (HEIs)

CPL for Memorandums of Understanding with other professional bodies

CPL audit & review process

FionaApplications Team: Responsible for CPL applications

Processing CPL applications for, individuals, HEIs & professional bodies

Updating credits on to Pro database and online directory

Handling students queries email and phone

Processing annual update CPL declaration


40/58

12

Graduate Recruitment

Services relevant to you

Training vacancies

Presentations

Business case studies

Women in Accountancy

Training Vacancies Is a comprehensive listing of UK and international

organisations offering ACA training opportunities

Excellent research tool when seeking to match careerambition

Available in hard copy format or online

icaew.com/careers


41/58

13

Presentations

Panel presentations

Lecture talks

Presentation evenings

Would like to meet sessions

Would like to meet sessionKingston University

Plymouth University

Exeter University

Cardiff University


42/58

14

Business case studies

Overview of what activities chartered accountants are

engaged in

Utilising employability skills

Based on past papers from the ACA case study

Women in Accountancy 22 Nov 2010

CV & Interviewworkshop (Deloitte)

Personal branding(Lesley Everett)

Assertiveness session(Sue Smith)

Supported by TM Lewin

Additional support materials

Partner Fliers (25)

Work Experience toolkit


43/58

15

Thank you for your timeicaew.com/partnerinlearning


44/58

16

A world leader of the

accountancy and finance profession


45/58

1

Technical Update

Financial Reporting

Marianne Mau ACA

Financial Reporting Faculty - July 2010

Overview

The financial reporting landscape

Recent developments in company law, UK GAAP and IFRS

What does the future hold

The Financial Reporting Faculty

FINANCIAL REPORTING

LANDSCAPE


46/58

2

Financial Reporting in the UK pre 2005

European Directives

Companies Act 1985

Financial Reporting Standards (FRSs)

UITF Abstracts

Financial Reporting Standard for Smaller Entities (FRSSE)

Statements of Recommended Practice

Listing rules

Globalisation in Financial Reporting

Demand for international accounting standards

2001 the new IASB

Goal

To provide the worlds integrating capital markets with a

common language for financial reporting

2002 EU Regulation that all EU listed companies prepareconsolidated financial statements under IFRS as adopted by

the EU from 2005

Financial Reporting in the UK today

IFRS

Mandatory for all listed andAIM companies in theirconsolidated financialstatements

Optional for most others

Government sector moving toIFRS 2009 - 2010

UK GAAP

Remains an option for all legalentity financial statements

FRSSE still available for mostsmall entities

SORPs for specialised sectors

CA 2006 Accounting changes mainly effective 6 April 2008


47/58

3

Blue areas indicate countries that require or permit IFRSs.

Grey areas are countries seeking convergence or pursuing adoption of IFRSs.

IASB and the FASB committed toconvergence in 2002

Memorandum of Understanding firstpublished by in 2006

Update in 2008

Reports the progress they have made since2006

Sets the goal of completing their major jointprojects by 2011

Short-term projects also ongoing

The boards have affirmed their commitmentto developing a common set of high qualitystandards

30 June 2011 deadline missed delayfor 6 months expected

US GAAP the roadmap

Convergence

COMPANIES ACT 2006


48/58

4

Companies Act 2006

Business review

Effective 1 October 2007

Key points:

Directors report must contain a business review

Linked to directors duty to promote success of the company

Review must contain:

A fair review of the companies business

Description of principal risks and uncertainties

Analysis using KPIs

Small companies are exempt

Companies Act 2006

Part 15 Accounts and Reports

Mostly effective 1 April 2008

Key points:

Think small first

Accounts schedules replaced by regulations: similar form and content

Medium-sized groups to prepare group accounts

Disclosure of off balance sheet arrangements

New limits for small and medium-sized companies

Small and Medium-sized Companies

25012.9 (net)

15.5 (gross)

25.9 (net)

31.1 (gross)

Medium groups

25012.925.9Medium

503.26 (net)

3.9 (gross)

6.5 (net)

7.8 (gross)

Small groups

503.266.5Small

EmployeesBalance sheet assetsm

Turnover mSize


49/58

5

UK GAAP

Overview UK GAAP today

Existing converged standardsamended in line with changes toIFRS

Some new/revised standards Further convergence put on hold

Mix of old andconvergedstandards

2005

?Mix of old andconvergedstandards

2010

Some UK GAAP changes FRS 29 (IFRS 7) Financial Instruments: Disclosures

FRS 8 (revised) Related Party Disclosures

FRS 30 Heritage Assets

Statement: Retirement Benefit Disclosures

FRSSE effective April 2008

CA 2006 changes

Earlier adoption not permitted

and lots of amendments and abstracts


50/58

6

IFRS UPDATE

Overview of IFRS today

Stable

Platform

01/01/05

IFRS 6 and 7

Minor revisionsAnnual ImprovementsIFRIC interpretations

Several new& revised

standards

01/01/09

Reminder new in 2009

18

IFRS 8

Operating Segments

IAS 32, IAS 1

Revision re puttableinstruments

IFRS 2

Revision recancellations andvesting conditions

IAS 1 (revised)

Presentation offinancial statements

IAS 23 (revised)

Borrowing Costs

2008 Improvements

(35 amendments to 20standards)

IFRIC 16

Hedges of netinvestments in aforeign operation

IFRIC 13

Customer loyaltyprogrammes

IAS 39

Amendment rereclassifications

IFRS 1, IAS 27

Revision re cost ofinvestments

IFRS 7 (revised)

Financial Instruments:Disclosures

IFRIC 15

Construction of RealEstate


51/58

7

IFRS 8

Effective 1 January 2009

Earlier adoption permitted

Key changes:

Applies only to listed entities

Identification of operating segments based on internalreports

The amount of each operating segment item to be the

measure reported to the chief operating decision maker

IFRS 8 Segment Reporting

IAS 1 Revised



Key changes:

Aggregate key financial information on the basis ofshared characteristics

Statement of Comprehensive Income

Changes in titles of some the financial statements

Third balance sheet required in some cases

IAS 1 Presentation of Financial Statements

Amendment to IFRS 1 and IAS 27

Deemed cost of investments insubsidiaries, associates,jointly controlled entitiesmeasured at:

Fair value; or

Carrying amount underprevious accounting practice

Definition of cost method

removed; and

Dividends as income inseparate entity financialstatements (previouslypreacquisition dividends were

deducted from cost)



IFRS 1 First-time adoption of IFRSIAS 27 Consolidated and Separate

Financial Statements


52/58

8

New for 2010

22

IFRS 3 & IAS 27

Business combinations-New regime

(1 July 2009)

IFRIC 12

Service concessions-PFI/PPP operators

(29 March 2009)

IFRIC 17

Distribution of non-

cash assets to owners-Fair value gain in P&L

(1 July 2009)

IFRIC 18

Transfer of assets fromcustomers

-Utility companies

(1 July 2009)

Amendment to IAS 39Eligible hedged items

-Permits portions ofrisks and cash flows

(1 July 2009)

Amendment to IFRS 2Group cash-settled

schemes

-Extends groupallocation

(1 January 2010)

2009 Improvements

-15 changes to 12standards

(Mostly 1 January2010)

IFRS 3 revised and amendment to IAS 27

IFRS 3 Business CombinationsIAS 27 Consolidated and Separate

Financial Statements

Effective 1 July 2009


Key changes:

Partial acquisitions

Step acquisitions

Acquisition related costs

Contingent consideration

Transactions with non-controlling interests

2009 Annual improvements



Key change:

Guidance on classifying leases of land deleted; now onthe same basis as buildings.

Applies retrospectively therefore need to revisit all

leases of land.

IAS 17 Leases


53/58


54/58

10

Disclosure requirements

Illustrative financial statements

Presentation and disclosure checklist

IFRS for SMEs: The Basics

THE FUTURE OF UK GAAP


55/58

11

ASB Consultation Future of UK GAAP

PUBLICLY ACCOUNTABLE EU IFRSTier 1

THE MIDDLE TIER IFRS FOR SMEs

Tier 2

SMALL COMPANIES FRSSE

Tier 3

ASB reviewing comment letters

ASB Consultation Future of UK GAAP

Proposals are intended to apply to all entities except those in

the public sector

SORPs retained where there is clear and demonstrable need

Supplementary guidance material specific to PBEs

ASB now considering a 4th tier for subsidiaries

Suggested date 1 January 2013 (?)

EU developments: possible exemption of micros from

statutory financial reporting requirements

Exposure draft expected late 2010

THE FINANCIAL

REPORTING FACULTY


56/58

12

ICAEW Website

icaew.com/frf

Information for Better Markets

Thought leadership in financial reporting

Broad themes:

Measurement

Disclosure

Regulation

Current publications:

New Reporting Models for Business (2003)

Measurement in Financial Reporting (2006)

Developments in New Reporting Models (2009) Expected later this year:

Business Models in Accounting: The Theory of the Firm and FinancialReporting (November 2010?)

IFBM Events PD Leake lecture 21 October 2010

Financial reporting and financial stability: what can we learn fromhistory?

IFBM Conference 20-21 December 2010

Adopting IFRS: the global experience.


57/58

13

Financial Reporting Faculty

Monthly bulletins eIFRS

Standards Tracker IFRS andUK GAAP

Factsheets

Journal

Events and webcasts

Community platform

www.icaew.com/frfJoin the faculty

Any questions

?

A world leader of the

accountancy and finance profession


58/58

Promote four themes: responsible

providers, responsible consumers, betterregulationand better information

Financial Services Faculty

InspiringConfidence in Financial

Services

Are banks different?conferencein London and stakeholder engagement

on how auditors can contribute tofinancial stability

Financing Change

Improve understanding of howbeneficial corporate finance

deal-making depends on imagination,infrastructureand information

Corporate Finance Faculty

Convene advisory group and holdevents on publications and current

funding issues

Thought leadership in 2010

Information forBetter Markets

Audit and AssuranceFaculty

Towards a Better

Tax System

Focus attention on alternatives toauditand assurance on narrative

reportingand third-partyoutsourcing

Tax Faculty

Explore how in the face ofcapital market innovation, listed company

boards should maintain alignmentofinterests and transparency

Financial ReportingFaculty

SustainableBusiness

Convene auditors, business,

investors and regulators to discussaudit market needs, audit performance

and audited information

Ethics, Law andGovernance

Promote original work onfinancial reporting, including

measurement, disclosureand regulation

Market FoundationsMaking InformationSystems Work

Finance Direction

re:Assurance

Focus attention on what makes ITsuccessful through the themes of value,

trustand standards

Explore three themes: changingrole of the finance function,

managing the futureand non-financialmeasures

Explore the options, actionsandimpactsinvolved in developing a market

system that promotes sustainability

Promote understanding of howsuccessful markets are founded

on ideas about the public interest,professionalism, legal entities, regulation,

ethical behaviourand economic crime

Dialogue inCorporate Governance

Audit and AssuranceFaculty

Finance and ManagementFaculty

Ethics, Law andGovernance

Audit QualityForumPanel session at AAA in San

Francisco and participation inconferences at Yale and Birmingham

Universities

Joint seminar on non-financialinformation in Brussels with NIVRA and

engagement with members onICAEW assurance service

Two London forum meetings and one widerinvitation debate and panel sessions on

national infrastructuresat EAA inIstanbul and AAA in San Francisco

Presentations at MARG events inLondon and Birmingham and panelsession at AAA half year meeting in

Seattle

London conference on global experienceof IFRS, P D Leake lecture and EAApanel session in Istanbul on financial

stability, and panel sessions at AAA inSan Francisco on IFRS road map and

new reporting modelsExplore how tax systems measure

up to Ten Tenetsby reference to thethemes of business, peopleand delivery

Hardman lecture and Wyman symposiumin London and panel session at Tax

research network conferenceat Bangor University

AAA panel session on carbonreporting in San Francisco, ESRC-

funded seminars, IFAC WorldCongress plenary session in KL and

events to supportFinance Innovation Lab

Publish issues paper on The role of bank auditors

Publish second edition of Private equitydemystifiedand consult on Reporting

accountants work on financial reportingprocedures

Publish issues paper on Changing shareholderbases

Publish new prospectus and Guide tosustainability assuranceand develop assurance

services on stewardship and pensions

Publish paper on National infrastructuresanddevelop paper on Financial statement reliability

under Global challengesprogramme

Publish analysis of published surveys onThe finance functionand related articles on

the other two themes

Publish Firms and markets in financialreportingand 2009 conference papers in

Accounting and Business Research

Publish paper on Tax and accountingunderbusinesstheme and issue Ten Tenetstenthanniversary publication and series of current

issues papers

Publish Guide to sustainability assuranceand two Outside insights

Publish issues paper on The public interestanddevelop paper on Economic crime

Publish paper on Information securityunder

Documents

Technical Update Refresher for Academics Presentation Slides