gaap-ifrs.com - theory and practice of financial and management accounting

gaap-ifrs.com - theory and practice of financial and management accounting http://www.gaap-ifrs.com gaap-ifrs.com - theory and practice of financial and management accounting. Library, Analytics, Books, Intercourse, Work, Education http://www.gaap-ifrs.com/images/yandex/logo_gaap.gif gaap-ifrs.com http://www.gaap-ifrs.com IFA reorganizes qualification programs http://gaap-ifrs.com/type/news/?id_news=2803&cat_id=24&org_id=0 In full accordance with requirements of the International Federation of Accountants (IFAC) the Institute of Financial Analysts (IFA) is witching to new qualification programs. Fri, 17 Jul 2009 15:27:00 +0400

In full accordance with requirements of the International Federation of Accountants (IFAC) the Institute of Financial Analysts (IFA) is switching to new qualification programs.   The official presentation of the new programs (together with IFA’s new logo) took place in London, in the House of Commons. Those qualifications commence January 1st 2010, each one consisting of two levels: “Financial Accountant” and “Financial Accountant Professional”. Each level will be confirmed by the IFA Degree (see the table for details). The main purpose of those innovations is to meet constantly increasing demand for specialists with deeper financial educations. Those will be especially required in the current market conditions and on smaller entities business sector.   Financial Accountant Diploma (to replace Technician level) <TABLE cellSpacing=1 cellPadding=2 width="100%" border=1> <TBODY> <TR> <TD> Technician level</TD> <TD> Financial Accountant Diploma</TD></TR> <TR> <TD>Financial Accounting Fundamentals</TD> <TD>Financial Accounting module</TD></TR> <TR> <TD>Management Accounting Fundamentals</TD> <TD>Financial Management module</TD></TR> <TR> <TD>Personal & Business Taxation</TD> <TD>Management & Finance Systems module</TD></TR> <TR> <TD>Law for Accountants </TD> <TD>Law and Tax Administration</TD></TR> <TR> <TD></TD> <TD>Communication and ethics</TD></TR></TBODY></TABLE> Financial Accountant Professional (to replace Associate level) <TABLE cellSpacing=1 cellPadding=2 width="100%" border=1> <TBODY> <TR> <TD> Associate level Financial</TD> <TD> Accountant Professional</TD></TR> <TR> <TD>Financial Accounting</TD> <TD>Financial Accounting module</TD></TR> <TR> <TD>Management Accounting</TD> <TD>Finance Management module</TD></TR> <TR> <TD>Financial Management</TD> <TD>Managing the Finance Function module</TD></TR> <TR> <TD>Audit Techniques</TD> <TD>Tax and Regulation</TD></TR> <TR> <TD>Information Systems</TD> <TD>Improving the Business</TD></TR> <TR> <TD>Management & Marketing</TD> <TD>The ethical professional</TD></TR></TBODY></TABLE> Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-font-family: `Times New Roman`; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.iab.org.ru/">IFA</A>

XBRL filing requirement could cost firms “tens of thousands” Tax advisers brand HMRC’s move to XBRL “strange” http://gaap-ifrs.com/type/news/?id_news=2802&cat_id=24&org_id=0 For accounting periods ending after 31 March 2010, corporate tax returns have to be submitted using XBRL, a language that tags financial data and allows comparability. The majority of corporate tax accounts are currently filed using Microsoft Word or Excel. Fri, 17 Jul 2009 16:40:00 +0400

Tax experts have condemned the insistence from the taxman that corporate tax returns only be made in the future using the controversial computer language XBRL. For accounting periods ending after 31 March 2010, corporate tax returns have to be submitted using XBRL, a language that tags financial data and allows comparability. The majority of corporate tax accounts are currently filed using Microsoft Word or Excel. But tax advisers have described the decision to adopt XBRL as both “strange” and placing an “unwanted overhead’ on small business. Tony Spillett, tax partner at BDO Stoy Hayward, estimated the cost of implementing XBRL could be “tens of thousands of pounds” per firm. “There’s potentially a lot of work to be done. There’s a lot of red tape and additional burden on business so that HMRC can make life easier for themselves. It’s a real unwanted overhead”, - he said. He added the long-term shift away from paper filing was welcome, however “it’s the devil in the detail and the way the HMRC has used the opportunity to capture the data in XBRL form (that) is concerning”. According to Kevin Salter, technology partner at Glover Stanbury & Co, the decision by HMRC to adopt XBRL as the required format is strange given so few firms currently use the system. “We have no choice. I don’t know what their rationale for going down that route is. Various representations have been made by accountancy bodies but they’ve chosen to go their own way”, - he said. Salter said a contracted software house will implement the necessary change on behalf of the firm but expects support fees for the service to rise as a result of the new requirement. Tax advisers believe the change to XBRL will mean HMRC has the capacity to mine data more effectively and could lead to an increase in the number of tax enquiries. A spokeswoman for HMRC confirmed that if a return is not filed in the new format, it will be “disregarded” and treated as not having been delivered. She said HMRC has consulted with the profession over the change and is continuing to engage with the software industry.

SEC Votes to Propose Rules Enhancing Municipal Securities Disclosure http://gaap-ifrs.com/type/news/?id_news=2801&cat_id=24&org_id=0 The proposed amendments to SEC Rule 15c2-12 would help investors make more knowledgeable investment decisions, effectively manage and monitor their investments, and avoid fraud. The proposed amendments also would assist broker-dealers in carrying out their responsibilities under the securities laws. Fri, 17 Jul 2009 15:39:00 +0400

The Securities and Exchange Commission today voted unanimously to propose rule amendments to improve the quality and timeliness of municipal securities disclosure. The proposed amendments to SEC Rule 15c2-12 would help investors make more knowledgeable investment decisions, effectively manage and monitor their investments, and avoid fraud. The proposed amendments also would assist broker-dealers in carrying out their responsibilities under the securities laws. “Currently there is a disparity between the level of information available to investors in municipal securities versus information available to investors in corporate securities,” said SEC Chairman Mary Schapiro. “These proposals would help investors make more knowledgeable investment decisions about municipal securities, while at the same time enabling broker-dealers to satisfy their obligations with respect to municipal securities.” Every year, states and local governments raise funds for schools, roads, hospitals and other needs by issuing municipal bonds. In turn, investors receive principal and interest payments, which are often exempt from federal and state income taxes. Maintaining the health of this key component of the capital markets is important to every resident of the United States in addition to the millions of investors in municipal bonds. Because municipal securities, such as municipal bonds, are exempt from the disclosure requirements of the federal securities laws, the SEC adopted Rule 15c2-12 in 1989, which was designed to foster greater transparency in the municipal securities market. Rule 15c2-12 prohibits brokers, dealers, and municipal securities dealers from purchasing or selling municipal securities unless they reasonably believe that the state or local government issuing the securities has agreed to disclose such things as annual financial statements and notices of certain events, such as payment defaults, rating changes and prepayments. The Commission voted to propose amendments that would: Expand the Rule to Cover Additional Municipal Securities When it was first adopted, the Rule specifically did not apply to certain securities commonly known as variable rate demand obligations or VRDOs. Under the proposed amendment, the Rule would apply to such securities. VRDOs bear interest at a rate that is reset periodically and investors are able to sell them back to the issuer at certain times for their full value. Improve Disclosure of Tax Risk The proposed amendment would specifically require disclosure of events that may adversely affect a bond’s tax exemption, including issuance by the IRS of proposed and final decisions about whether the bond can be taxed. Strengthen and Expand Disclosure of Important Events Under the existing Rule, an underwriter must have a reasonable belief that the state or local government that issued municipal bonds has agreed to provide ongoing, continuing disclosure of certain important events. The Rule presently provides that notice of all of the listed events need be made only “if material.” The proposal would eliminate the need for a materiality determination and simply require that the following events be disclosed in a notice: (1) failure to pay principal and interest; (2) unscheduled payments out of debt service reserves reflecting financial difficulties; (3) unscheduled payments by parties backing the bonds, reflecting financial difficulties, or a change in the identity of parties backing the bonds or their failure to perform;(4) defeasances, including situations where the issuer has provided for future payment of all obligations under a bond; and (5) rating changes. A materiality determination would be retained for some events, including, for example, bond calls. The proposed amendment also would increase the number of events to include: (1) tender offers; (2) bankruptcy, insolvency, receivership or similar proceeding; (3) mergers, consolidations, acquisitions, the sale of all or substantially all of the assets of the obligated person or their termination; and (4) appointment of a successor or additional trustee or the change of the name of a trustee, if material. Establish a More Specific Filing Deadline The proposed amendment would require that notices of the events listed in the rule be disclosed no more than 10 business days after the event. Currently, the Rule simply provides for disclosure “in a timely manner”. Proposed Additional Guidance Over the years, the Commission has set forth interpretations under the antifraud provisions of the federal securities laws to require municipal securities underwriters to have a reasonable basis for recommending any municipal securities. And, in fulfilling that obligation, it is their responsibility to review the disclosure documents in a professional manner with respect to the accuracy and completeness of statements made in connection with the offering. The proposing release reaffirms the Commission’s previous interpretations and provides additional guidance with respect to underwriters’ responsibilities under the antifraud provisions of the federal securities laws. Public comments on today’s proposed rule amendments must be received by the Commission within 45 days after their publication in the Federal Register. The full text of the proposed rule amendments will be posted to the SEC Web site as soon as possible.

There won’t be any “bank secrecy” soon - PwC http://gaap-ifrs.com/type/news/?id_news=2800&cat_id=24&org_id=0 Experts from PricewaterhouseCoopers think that in the nearest future, it will be a normal to abandon bank secrecy. Apart from that, many acquisitions within particular segments of the banking industry are highly expected. Fri, 17 Jul 2009 15:24:00 +0400

Experts from PricewaterhouseCoopers think that in the nearest future, it will be normal to abandon bank secrecy. Apart from that, many acquisitions within particular segments of the banking industry are highly expected. According to the company’s <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.pwc.com/gx/en/private-banking-wealth-mgmt-survey/pbwm09.html">new report</A>, welfare of entities that provide private baking services and private capital management has significantly decreased due to financial markets turmoil, investment-related sandals and general decrease of welfare in global terms. In conditions like that, consolidation of the industry is inevitable. 88% of respondents (engaged into private capital management activities) await further consolidation within the next two years; 34% are sure that the process will be remarkable. 63% threat acquisitions as a major element of their growth strategy (this is twice more that in 2007). There are troubles with meeting constantly changing requirements in different jurisdictions – probably the main reason why only 32% of top-managers are planning to expand into new markets within the next two years. In PwC’s former report, this indicator was 52%. Among those who are actually planning to expand, most choose Middle East and Asia (for instance, India, Hong-Kong, Singapore and China). Analysts also noted that, due to the constant international pressure aimed at higher transparency, the “absolute banking secrecy” is coming to an end, and the world is transforming itself into “compliant confidentiality”. In the future, private banking business and management of private capital will only become more and more transparent and regulated. Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.infox.ru/">INFOX.ru</A>

FRC Chief Executive Argues Against Changing the Fundamental Purpose of Accounting http://gaap-ifrs.com/type/news/?id_news=2799&cat_id=24&org_id=0 Paul Boyle, Chief Executive, argued in a speech to the FRC Annual Open Meeting against proposals to use accounting as a public policy tool to reduce pro-cyclicality and challenged the proposition that accounting measures that show volatility should be adjusted to create an impression of stability. Fri, 17 Jul 2009 15:42:00 +0400

Paul Boyle, Chief Executive, argued in a speech to the FRC Annual Open Meeting against proposals to use accounting as a public policy tool to reduce pro-cyclicality and challenged the proposition that accounting measures that show volatility should be adjusted to create an impression of stability. He said: “It is not clear that accounting has the potential to be a public policy tool to reduce pro-cyclicality, or that it would be appropriate to use it in this way. An equally, or perhaps even more, dangerous argument now gaining currency is that accounting should be given an explicit role in promoting financial stability, rather than its traditional role of providing information useful to investors in their decision-making. The implication of this view is that accounting measures that show volatility should be adjusted to create an impression of stability. Accounting is a measurement system that presents the financial performance and position of a company in as neutral a way as possible. It is not surprising that banks report substantial profits when the economy is doing well and reduced profits, or even losses, when the economy is doing badly. This is accounting reflecting the economic cycle, which is a good characteristic of a financial measurement system. It is worth considering the dangers of altering measurement systems to make them less pro-cyclical. It could be argued, for example, that unemployment statistics and house prices have damaging pro-cyclical effects. Yet no-one seriously argues that it would be in the public interest for these statistics to be adjusted because the public cannot be trusted to react in a way consistent with financial stability. This is not to say that current accounting standards need no improvement. But the merits of proposed “improvements” need to be assessed against a clear understanding of the purposes of accounting. It may well be appropriate to attempt to reduce the volatility of economic cycles, but there are more appropriate tools than accounting to achieve this”. In the speech, Mr. Boyle reported on the FRC’s work in helping market participants respond to the challenges to corporate reporting and governance arising from the tougher economic conditions. During the autumn of 2008, the FRC published a number of documents to assist market participants in considering the heightened risks, including a note on the challenges for audit committees. It also sought to influence the public policy debate on the corporate reporting and governance aspects of the crisis, making statements about the importance of the independence of accounting standard-setters and testifying before the Treasury Select Committee. My Boyle also warned that the risks to confidence in corporate reporting and governance remained higher than normal and that there was no room for complacency.

The “second wave” will affect only banks, but not others – “Troika Dialog” chairman http://gaap-ifrs.com/type/news/?id_news=2798&cat_id=24&org_id=0 The “second wave” of the financial crisis in Russia, “bad debts” – driven and bound to lower the banking system’s capital, is unavoidable. Thankfully, it won’t hit the economy and citizens – thinks Pavel Teplukhin, chairman of “Troika Dialog”. He says that the “wave” will only hit bankers and other people in that business, but won’t spread on anyone else. Wed, 15 Jul 2009 15:18:00 +0400

The “second wave” of the financial crisis in Russia, “bad debts” – driven and bound to lower the banking system’s capital, is unavoidable. Thankfully, it won’t hit the economy and citizens – thinks Pavel Teplukhin, chairman of <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.troika.ru/eng/start.wbp">“Troika Dialog”</A>. He says that the “wave” will only hit bankers and other people in that business, but won’t spread on anyone else. It will be caused by massive defaults on credits and the need to increase reserves on those credits, which should negatively affect banking capital. According to Mr. Teplukhin, most of all credits in Russia were issued for one year (about 90% of credits, actually), which means that the impact is expected in September-November. Once again, banks will face massive write-off. As for the approximate volume of overdue credits in the economy, Pavel Teplukhin refused to give any estimations, saying that there were already too many of them, and none could be treated as completely true. He added, however, that in conditions like that, “non-problematic” credits should be seen as exceptions. The budget Chief of “Troika Dialog” thinks that the government should obviously cut budgetary spending and consider possibilities of privatization of ineffectively managed government’s property – along with other ways to cut expenditures. “Balanced budget” is crucial – here, Pavel Teplukhin reminded of Dmitry Medvedev’s speech. As there is a 30-40% fall in inflows to the budget at the moment, there is a need to cut expenditures by exactly the same amount – both investments-related and social. “The first politician to propose that will commit a political suicide. Still, there is a need to cut salaries, to close construction projects and to stop coal mining beyond the Polar circle because it will never gain any profits there”, - said Mr. Teplukhin. The national currency As for the ruble, it should be set free from oil dependence; otherwise Russia will never be able to manage currency risks on its own. He compared it with narcotic addiction from oil prices, and “no one has learnt how to predict oil prices yet”, says Mr. Teplukhin. When the price was about $60 per barrel (2003-2004), the country was developing just fine. Today, things are a bit different. Government  guarantees Government  guarantees is not an ultimate cure to stimulate crediting in the economy, thinks president of “Troika Dialog”. One should always bear in mind that those are expenses as well – thus, they will have their own inflationary consequences. “For separate entities, it is a “break”. For banks – that’s better than nothing, of course, but they still need liquid pledges for the remaining 50% of credits not covered by the government’s guarantees on industrial enterprises”, - he said. Not long ago, land could be treated as a liquid pledge, but today, it is impossible to sell neither that nor equipment. “No demand for those. Thus, total volume of pledges in Russia has fallen dramatically. Banks have become more selective”. Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://en.rian.ru/">RIA Novosti</A>

Bookmakers in Russia being put under tougher control http://gaap-ifrs.com/type/news/?id_news=2797&cat_id=24&org_id=0 This week the State Duma of Russia acquired a new project of legislation for bookmakers which should put this business segment under tougher supervision. Experts warn that terms like that may potentially drive many entities completely out of business. Wed, 15 Jul 2009 15:12:00 +0400

This week the State Duma of Russia acquired a new project of legislation for bookmakers which should put this business segment under tougher supervision.  Experts warn that terms like that may potentially drive many entities completely out of business. Starting from July 1st, gambling business is illegal in Russia (except for specially allocated gambling zones).  An explanatory note to the law project being considered today says that there are many of those who neither closed their business not took it to gambling zones allocated for those purposes. There are many of those who decided to rebuild their casinos into bookmaker offices – so to say, to do fundamental business reorganization. Those need tougher supervision, says the note. The Duma’s deputies say that total volume of the market for bookmaking and pari-mutuel betting is not that smaller that the volume of casinos and slot machines (already liquidated). Authors of the law project fear business re-orientation of former owners of casinos into bookmakers, which is why they are proposing to make the rules tougher. One of the first things to be done in that respect is increasing minimal net asset requirements – from 100 to 600 million rubles. Secondly, deputies proposed minimal capital requirements as well – 600 million rubles. “It is a sound toughening of the law on gambling business”, - commented Semen Dzagoev, deputy chief of “Elbrus” (a bookmaker). He predicts that this would force many smaller bookmaking businesses go bankrupt because not all of them can afford capital higher than half of a billion rubles. Especially considering the fact that, according to the project, this capital may consist of monetary funds approved by regulators under a special order. Borrowed funds can’t be used as capital. Besides, bookmakers and pari-mutuel betting businesses will be obliged to hold a separate account to repay wins with it. There should be at least 300 million rubles any minute, no less than that. “It is unclear how those will be checked by regulators to make sure that bookmakers always have enough funds on their accounts”, - added Semen Dzagoev, suggesting that, most likely, business will surely find a way to evade that restriction.  According to the project, owners of businesses of that type will also be obliged to disclose information on their shareholders if those have at least 10% of their capital in possession (or just own voting shares). This will be done on annual basis. Finally, annual audits checks are also provided by the law. All entities that do not meet the requirements, will be liquidated starting from January 1st 2009. Deputes of the State Duma expect consolidation in that business sector, and, according to the explanatory note, this would be just fine. Of course, that will make tracing of monetary flows much easier, but the market participants are not so sure on all advantages of the law. “Even in the West with all its transparency of the system for law enforcement, they can’t completely get rid of underground (illegal) gambling businesses. Now think about Russia with its much higher levels of corruption”, - reminded Alexander Ermolenko from “PKF”. Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.gazeta.ru/">Gazeta.ru</A>

Commission proposes further revision of banking regulation to strengthen rules on bank capital and on remuneration in the banking sector http://gaap-ifrs.com/type/news/?id_news=2796&cat_id=24&org_id=0 The European Commission has put forward a further revision of EU rules on capital requirements for banks that is designed to tighten up the way in which banks assess the risks connected with their trading book; impose higher capital requirements for re-securitisations; increase market confidence through stronger disclosure requirements for securitisation exposures; and require banks to have sound remuneration practices that do not encourage or reward excessive risk-taking. Wed, 15 Jul 2009 15:25:00 +0400

The European Commission has put forward a further revision of EU rules on capital requirements for banks that is designed to tighten up the way in which banks assess the risks connected with their trading book; impose higher capital requirements for re-securitisations; increase market confidence through stronger disclosure requirements for securitisation exposures; and require banks to have sound remuneration practices that do not encourage or reward excessive risk-taking. Under the new rules, banks will be restricted in their investments in highly complex re-securitisations if they cannot demonstrate that they have fully understood the risks involved, while national supervisory authorities will review banks` remuneration policies and have the power to impose sanctions if the policies do not meet the new requirements. The proposal, which amends the existing Capital Requirements Directives, represents part of the EU`s response to the financial crisis, and reflects consultation with Member States, banking supervisors and industry. It now passes to the European Parliament and the Council of Ministers for consideration. Commission President José Manuel Barroso declared : These proposals address risks linked to two major causes of the current crisis, securitisation and remuneration. We are acting ambitiously to prevent lightning striking twice. The proposals aim to ensure that banks hold enough capital to reflect the true risks they are taking. In particular, banks will have to offset risks associated with highly complex resecuritisation products and deal with perverse incentives created by pay and bonus schemes. We will legally oblige banks and investment firms to have remuneration policies consistent with effective risk management. Supervisors will be given the powers to take measures, including increased capital requirements, to address any failures. I am calling on Member States and the European Parliament to back these proposals and on other jurisdictions to act on similar lines, in line with the common commitments made at the G20. Internal Market and Services Commissioner Charlie McCreevy said: "These new rules target some of the investments and practices that lie at the root of the financial crisis. New rules on re-securitisations – the highly complex financial products that caused huge losses for banks – will require banks to hold significantly more capital to cover their risks when investing in these products, while the additional disclosure rules will help to create a climate of market confidence. The requirements on pay and bonuses are designed to put an end to the culture of excessive risk-taking for short-term success at the expense of long-term profitability and sound risk management. This package of amendments will strengthen the risk management, transparency and sound investment practices that are key to a healthy and stable banking system." Proposed amendments to the Capital Requirements Directives The purpose of the Capital Requirements Directives (2006/48/EC and 2006/49/EC) is to ensure the financial soundness of banks and investment firms. Together they stipulate how much of their own financial resources banks and investment firms must have in order to cover their risks and protect their depositors. This legal framework needs to be regularly updated and refined to respond to the needs of the financial system as a whole. The main changes proposed are as follows: <UL> <LI>Capital requirements for re-securitisations</LI></UL> Re-securitisations are complex financial products that have played a role in the development of the financial crisis. In certain circumstances, banks that hold them can be exposed to considerable losses. The proposal will impose higher capital requirements for re-securitisations, to make sure that banks take proper account of the risks of investing in such complex financial products. <UL> <LI>Disclosure of securitisation exposures</LI></UL> Proper disclosure of the level of risks to which banks are exposed is necessary for market confidence. The new rules will tighten up disclosure requirements to increase the market confidence that is necessary to encourage banks to start lending to each other again. <UL> <LI>Capital requirements for the trading book</LI></UL> The trading book consists of all the financial instruments that a bank holds with the intention of re-selling them in the short term, or in order to hedge other instruments in the trading book. The proposal will change the way that banks assess the risks connected with their trading books to ensure that they fully reflect the potential losses from adverse market movements in the kind of stressed conditions that have been experienced recently. <UL> <LI>Remuneration policies and practices within banks</LI></UL> The proposal will tackle perverse pay incentives by requiring banks and investment firms to have sound remuneration policies that do not encourage or reward excessive risk-taking. Banking supervisors will be given the power to sanction banks with remuneration policies that do not comply with the new requirements. The proposal is available at: <A href="http://ec.europa.eu/internal_market/bank/regcapital/index_en.htm">http://ec.europa.eu/internal_market/bank/regcapital/index_en.htm</A>

International Ethics Standards Board for Accountants Releases New Code Clarifies Requirements and Strengthens Independence http://gaap-ifrs.com/type/news/?id_news=2795&cat_id=24&org_id=0 The International Ethics Standards Board for Accountants (IESBA) has issued a revised “Code of Ethics for Professional Accountants” (the Code), clarifying requirements for all professional accountants and significantly strengthening the independence requirements of auditors. The revised Code has been released following the consideration and approval by the Public Interest Oversight Board (PIOB) of due process and extensive public interest consultation. Wed, 15 Jul 2009 15:22:00 +0400

The International Ethics Standards Board for Accountants (IESBA) has issued a revised <SPAN lang=EN-US style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.ifac.org/Members/DownLoads/code-of-ethics-for-professi-2.pdf">“Code of Ethics for Professional Accountants”</A> (the Code), clarifying requirements for all professional accountants and significantly strengthening the independence requirements of auditors. The revised Code has been released following the consideration and approval by the Public Interest Oversight Board (PIOB) of due process and extensive public interest consultation. “Strong and clear independence standards are vital to investor trust in financial reporting”, - emphasizes IESBA Chair Richard George. – “The increase in trust and certainty that flow from familiarity with standards, including a common understanding of what it means to be independent when providing assurance services, will contribute immeasurably to a reduction in barriers to international capital flows”. The revised Code, which is effective on January 1, 2011, includes the following changes to strengthen independence requirements: <UL> <LI>Extending the independence requirements for audits of listed entities to all public interest entities; </LI> <LI>Requiring a cooling off period before certain members of the firm can join public interest audit clients in certain specified positions; </LI> <LI>Extending partner rotation requirements to all key audit partners; </LI> <LI>Strengthening some of the provisions related to the provision of non-assurance services to audit clients; </LI> <LI>Requiring a pre- or post-issuance review if total fees from a public interest audit client exceed 15% of the total fees of the firm for two consecutive years; and </LI> <LI>Prohibiting key audit partners from being evaluated on or compensated for selling non-assurance services to their audit clients.</LI></UL> The revised Code maintains the principles-based approach supplemented by detailed requirements where necessary, resulting in a Code that is robust but also sufficiently flexible to address the wide-ranging circumstances encountered by professional accountants. “This approach should also help to facilitate global convergence”, - points out Mr. George. The International Federation of Accountants’ Statements of Membership Obligations have as a central objective the convergence of a country’s national code with the “Code of Ethics for Professional Accountants”. Further, the requirements specify that member bodies should not apply less stringent standards than those stated in the Code. “It is especially critical that member bodies focus on the implementation of the revised Code as soon as possible”, - emphasizes Mr. George. - “To help them in this process, the IESBA plans to provide them with some additional support and guidance in the coming months”.

IASB proposes improvements to financial instruments accounting http://gaap-ifrs.com/type/news/?id_news=2794&cat_id=24&org_id=0 The International Accounting Standards Board (IASB) today published for public comment an exposure draft of proposals to improve financial instrument accounting. Tue, 14 Jul 2009 17:45:00 +0400

The International Accounting Standards Board (IASB) today published for public comment an exposure draft of proposals to improve financial instrument accounting. The proposals form part of the IASB’s comprehensive review of financial instrument accounting. The proposals, which the IASB believes will significantly reduce complexity and make it easier for investors to understand financial statements, address how financial instruments are classified and measured. The proposals also answer concerns raised by interested parties during the financial crisis (for example, eliminating the different impairment approaches for available-for-sale assets and assets measured using amortized cost). The IASB plans to finalize the classification and measurement proposals in time for non-mandatory application in 2009 year-end financial statements. The proposals also respond directly to and are consistent with the recommendations and timetable set out by the G20 leaders and other international bodies. In order to be responsive to calls for improved accounting, the IASB decided to split the comprehensive project into three phases (the other phases address the impairment methodology and hedge accounting). The IASB plans to complete the replacement of IAS 39 during 2010, although mandatory application will not be before January 2012. Introducing the exposure draft, Sir David Tweedie, Chairman of the IASB, said: “The financial crisis has demonstrated that investors need to be given a better understanding of information presented in the financial statements about financial instruments held or issued by a company. Making it easier for investors to understand financial statements is an essential ingredient to the recovery of investor confidence. The proposals today are an important first step in this process. They also respond directly to concerns raised about the accounting for financial instruments. In finalizing these proposals we will continue to work jointly with the US standard-setter, the Financial Accounting Standards Board, to achieve a common and improved accounting standard on financial instruments”. The IASB will host two live Web presentations to introduce its proposals on Wednesday 15 July 2009. The first will take place at 9:30am London time. For the convenience of interested parties in different time zones the second webcast will take place at 3:00 pm London time. An IASB “Snapshot”, a high level summary of the proposals, is also available to download free of charge from the project section of the IASB website. The IASB invites comments on the exposure draft, <SPAN lang=EN-US style="FONT-SIZE: 8pt; COLOR: #333333; FONT-STYLE: normal; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA; mso-bidi-font-style: italic"><A href="http://www.iasb.org/NR/rdonlyres/D1598224-3609-4F0A-82D0-6DC598C3249B/0/EDFinancialInstrumentsClassificationandMeasurement.pdf">ED/2009/7 “Financial Instruments: Classification and Measurement”</A>, by 14 September 2009. The exposure draft is available on the “Open for Comment” section on <A href="http://www.iasb.org">www.iasb.org</A> from today.

Trade to be controlled by FAS http://gaap-ifrs.com/type/news/?id_news=2793&cat_id=24&org_id=0 Yesterday Russia’s government approved the latest version of the law project on trade, which in two days will be introduced to the State Duma for consideration and approval. It appears that the Federal Antimonopoly Service is taking position of the main regulator here. Tue, 14 Jul 2009 15:37:00 +0400

Yesterday Russia’s government approved the latest version of the law project on trade, which in two days will be introduced to the State Duma for consideration and approval. It appears that the Federal Antimonopoly Service is taking position of the main regulator here. The document says that the government will stay away from regulation of pricing and determining market dominance thresholds. In respect to retail networks, general antimonopoly legislation will be applied, and it will be Igor Artemiev’s ministry to regulate retailers’ business. For violation of the law, a fine will be paid for the value from 500 thousand to 1 million rubles, explains FAS’ chief Igor Artemiev. Fines will also be provided for imposing own terms and conditions on suppliers of goods, for charging “entrance fees”, for changing product mixes and other bonuses. According to the law, the only bonus retailers are potentially able is acquire from their suppliers is the premium for the amount of purchased goods. Lev Khasis, CEO and chairman of X5 Retail Group, commented that the “fixed fine” approach looked more reasonable as compared to the one which had been proposed in former versions of the law (meaning fines levied on turnover).   The Federal Antimonopoly Service will also be able to intervene into relations between retail networks and suppliers. If it happens that retailers start to invent new types of bonuses not provided by the law, or the Service suspects somebody’s discriminating on suppliers, FAS will be able to issue direct statements, demanding to stop those practices. Any company is able to argue in court, however. “Here, it is vital to eliminate subjective perception of retailer’s business by officials and to develop objective criteria for discriminatory practices”, - says Lev Khasis. He added that retailers had already discussed possibilities to develop a set of criteria to be based on the Code of professional ethics.  Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.vedomosti.ru/">“Vedomosti”</A>

EC appoints Deloitte to Solvency II Contract “great win” for Big Four firm http://gaap-ifrs.com/type/news/?id_news=2792&cat_id=24&org_id=0 Deloitte has been selected to provide advice to the European Commission in its development of the Solvency II assessment. Tue, 14 Jul 2009 16:01:00 +0400

Deloitte has been selected to provide advice to the European Commission in its development of the Solvency II assessment. The Solvency II Level 2 Impact assessment – a set of regulatory requirements for insurance firms operating in the European Union – will see Deloitte conducting a study to assess the potential impact of the regulation on insurance markets and products, in particular social and economic impacts and the likely impact it could have on insurers’ balance sheets. Seen as a great win for the firm’s Solvency II practice, the appointed team, led by partner Andrew Power, will cover the four key product lines of mass risks insurance, long term savings and retirement products, health insurance and business to business insurance. “Solvency II is expected to have a significant impact on insurers across the EU. The market impact assessment will be an important component in understanding how the insurance landscape might evolve across the member states and the impact of various policy options”, - Power said. – “We are looking forward to consulting with the various stakeholders and to assisting the EU Commission”. In other news, a survey by BDO Stoy Hayward has found that 61% of UK insurers believe the cost of implementing Solvency II will be less than £500,000, with a further 8% having no idea of potential costs. Concerns about the implementation of the standard are around establishing a consistent standard and the level of information that will be available in the public domain. Respondents said the need to safeguard sensitive information was crucial to remaining competitive.

Banks in Russia may be given a right to close suspicious accounts http://gaap-ifrs.com/type/news/?id_news=2791&cat_id=24&org_id=0 Konstantin Shipunov, a deputy of the “United Russia” political party, proposed to allow Russian banks to close banking accounts and deny further provision of services upon suspicion that that counteragent’s account is being used for money laundering. No court’s decision will be needed. Tue, 14 Jul 2009 15:56:00 +0400

Konstantin Shipunov, a deputy of the “United Russia” political party, proposed to allow Russian banks to close banking accounts and deny further provision of services upon suspicion that that counteragent’s account is being used for money laundering. No court’s decision will be needed. Today the State Duma acquired a set of amendments to the anti-money laundering legislation (and to the Civil code as well) for consideration. Banks will be able to stop a suspicious transaction if they suspect that the transaction may be used for “money laundering purposes of financing of terrorism”. Of course, those should be reasonable suspicions. A client will receive a written notification in that case, and the amount of money on his or her account will be either returned to him/her, or transferred to another account within seven days.  According to the current legislation, a bank is able to nullify an account without a court’s decision if the account has been empty (that is, without funds) for two years. Thus, amendments to the law being discussed today will provide banking entities with additional reasons to break a contract with either a legal entity or a private individual. Apart from suspicions of illegal usage of financial funds, banks will be able to nullify accounts in case they find out that the client provided unfaithful information during registration and opening of the account. Well, that alone won’t be enough, of course: the bank will also need additional reasons, for instance, if there exists certain information that the client participates in terrorist activity, or if the transaction to be made has no economic meaning, or the transaction is just too complicated.   The explanatory note to that law project states that it is aimed at more proper reflection of the FATF’s recommendations in Russia’s anti-money laundering legislation. Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://en.rian.ru/">“RIA Novosti”</A>

Russia will simplify job placement for foreign financial specialists http://gaap-ifrs.com/type/news/?id_news=2790&cat_id=24&org_id=0 Even so, Russian market participants do not think that one should worry about non-controlled inflow of foreign specialists here because there won’t be too many of those who wish to provide their services in Russia. Mon, 13 Jul 2009 17:15:00 +0400

For Russian banks and financial companies, it will soon become much easier to hire financial experts from abroad: a new law project to simplify procedures of acquisition of work visas is being transferred to the State Duma for consideration. Even so, Russian market participants do not think that one should worry about non-controlled inflow of foreign specialists here because there won’t be too many of those who wish to provide their services in Russia.   The project was proposed by Kira Lukyanova, a member of the State Duma’s committee on economic policy and entrepreneurship. According to the project, future employers of non-residential employees will only have to inform the Federal Immigration Service on their intentions, but they won’t have to wait for the body’s permission. At the moment, it is still a bit different: once a year, employers have to apply to the Federal Immigration Service for prolongation of their employees’ work visas for another year, while the term to consider each and every separate case takes 90 days. For experts of the financial sector, this is not acceptable because it prevents creation of the international financial sector everybody’s talking about. As for the Federal Immigration Service, it has recently started to reject prolongation of visas of many banks’ employees, pointing out the necessity to provide our own specialists with enough job places. According to official data, in 2008 4.5 million job permissions were issued to foreigners. According to the body’s expectations, in 2009 their numbers are going to decline by 13%. For the first four months of 2009, 395 thousand permissions were issued, which is 30% lower as compared to the same period of 2008. There’s no separate statistics for foreign citizens who work in Russia. HR-services provide only approximate estimations (≈5 thousand), and at most 500 of them occupy positions of top-manages. Normally, they prefer working for larger entities – Russian branches of foreign banks and companies. For instance “BNP Paribas Moscow” is led by Philippe Delpal, and “Raiffeisenbank” has a board of directors that totally consists of non-residents (with two Austrians among them). There are many foreigners in larger Russian banks as well. Generally, they express support for the State Duma’s initiative, saying that approval of the project will ensure fast and easy hiring of foreign personnel. The idea is also supported by the Duma’s financial committee and – surprisingly – by the Federal Immigration Service itself: “We won’t oppose approval of the law if it doesn’t go against interests of Russian citizens”. Source: <SPAN lang=EN-US style="FONT-WEIGHT: normal; FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA; mso-bidi-font-weight: bold"><A href="http://www.kommersant.ru/">“Kommersant”</A>

Treasury Proposes New Law for Investment Advisors http://gaap-ifrs.com/type/news/?id_news=2789&cat_id=24&org_id=0 The Obama administration has proposed legislation to Congress that would establish consistent standards for anybody who provides investment advice. Mon, 13 Jul 2009 17:29:00 +0400

The Obama administration has proposed legislation to Congress that would establish consistent standards for anybody who provides investment advice. The SEC would have the authority to require a fiduciary duty for any broker, dealer or investment advisor who gives investment advice about securities, aligning the standards based on activity. In addition, the SEC would be empowered to examine and ban forms of compensation that encourage financial intermediaries to steer investors toward products that are profitable to the intermediary, but not in the investors’ best interest.  The legislation would give the SEC the authority to prohibit mandatory arbitration clauses in broker-dealer, municipal securities dealer and investment advisory agreements. The SEC would also have the authority to regulate the quality and timing of disclosures. For example, the SEC could require a concise summary prospectus and a simple disclosure showing the costs of a fund in a comparative context prior to the completion of a sale.  The legislation would also clarify the SEC’s authority to conduct consumer testing and encourage the agency to do so, in order to create more effective and clearer disclosures and to better assess its rules and programs. Also included in the bill are expanded protections for whistleblowers. The SEC would gain the authority to establish a fund to pay whistleblowers for information that leads to enforcement actions resulting in significant financial awards. Currently, the SEC has the authority to compensate sources that provide evidence leading to a successful insider trading case. That authority would be extended to other types of securities law violations to encourage more insiders and others with strong evidence of securities law violations to bring that evidence to the SEC and improve its ability to enforce the securities laws.  In addition, the bill would harmonize liability standards so the SEC could pursue those who aid and abet securities fraud. The SEC currently has the ability to pursue actions against those who aid and abet securities fraud in cases brought under the Securities Exchange Act of 1934 and the Investment Advisors Act of 1940, but not the Securities Act of 1933 nor the Investment Company Act of 1940. The new legislation closes this gap to create consistent remedies that the SEC can seek and eliminates significant limitations on the SEC’s ability to pursue serious misconduct. The legislation also clarifies the legal standard for aiding and abetting, and makes it clear that the SEC can obtain penalties under any of its aiding and abetting provisions. Under current law, an individual who has been barred from acting as an investment advisor because of serious misconduct could still apply to become a broker-dealer. The new legislation would give the SEC the authority to remove regulated persons from all aspects of the securities industry rather than just a specific segment. The SEC recently established an Investor Advisory Committee, made up of a diverse group of investors, to advise on the SEC’s regulatory priorities, including issues concerning new products, trading strategies, fee structures, and the effectiveness of disclosure. The new legislation would make the Investor Advisory Committee into a permanent fixture.

USA assists troubled banks with getting rid of toxic assets http://gaap-ifrs.com/type/news/?id_news=2788&cat_id=24&org_id=0 The Federal Deposit Insurance Corporation (FDIC) published an announcement on its website, informing that it had commenced realization of Timothy Geithner’s plan - the Public-Private Investment Program (“PPIP”). Mon, 13 Jul 2009 17:22:00 +0400

Not only the USA decided to recapitalize its largest and most influential banking entities, but it is also ready to assist the banking industry with dumping of toxic assets that originated in troubled mortgage sector. To do so, “trash” will be removed to specially created public-private funds (from that point of view, one may call them “trash cans”). The Federal Deposit Insurance Corporation (FDIC) published an <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.fdic.gov/news/news/press/2009/pr09121.html">announcement</A> on its website, informing that it had commenced realization of Timothy Geithner’s plan - the Public-Private Investment Program (“PPIP”). A bit earlier, Treasury’s plan (the same “Public-Private Investment Program”) assumed spending 75-100 billion USD of the government’s funds for repurchasing of toxic financial securities (secured on mortgages and other assets), for total value of up to $1 trillion. However, the government decided not to take all of the risks on itself alone and to let public-private funds participate in the program. 10 participants were already announced: AllianceBernstein, Angelo, Gordon & Co., BlackRock, Invesco, Marathon Asset Management, Oaktree Capital Management, Western Asset Management, TCW Group and Wellington Management Company. Those companies will be able to repurchase pools of banks’ troubled assets and to attract investors afterwards. The FDIC’s announcement states that each of them will be able to attract up to $500 million within 12 weeks. The US Treasury’s chief Timothy Geithner told that “trash funds” would be able to purchase illiquid assets on the market, for total amount of 0.5-1 trillion USD. Financing of those purchases is plannes as half public – half private (normally, 50/50). The government will provide subsidies to private investors, simultaneously setting them free from not long ago introduced restrictions on bonus payments. Besides, broader application of the Term Asset-Backed-Securities Loan Facility (TALF) program is expected at the expense of mortgage securities. The idea to create “dumps” for “toxic assets” is not new. Russia decided to stay away from creation of its own “bad bank” for awhile, concentrating on recapitalization of banks to let them survive the second wave of the crisis. The “bad bank” idea was rejected from “above”. “In short run, for us (like for other countries as well) getting rid of so-called “toxic” assets is the greatest challenge in the nearest perspective. I don’t think that for Russia, it would be a good idea to concentrate those assets in a “bad” (or “toxic”) bank”, - Dmitry Medvedev said not long ago at the International Economic Forum in St.-Petersburg. However, there are other ways to solve the problem – like, for instance, creation of a special mutual investment fund. The idea is still somewhere out there, although the banking market participants in Russia weren’t particularly delighted with it. Germany’s Ministry of Finance proposed its own plan, already approved by the Parliament’s lower chamber. As part of the plan, banks will be given a possibility to exchange toxic assets for secure government’s bonds, but only assuming that the value of those toxic assets is 10% lower than their real value. State-controlled banks will be able to create their own “bad” subsidiaries to dump their bad assets there and to concentrate on further development. Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://www.interfax.com/">Interfax</A>

IASB publishes IFRS for SMEs http://gaap-ifrs.com/type/news/?id_news=2787&cat_id=24&org_id=0 The International Accounting Standards Board (IASB) issued today an International Financial Reporting Standard (IFRS) designed for use by small and medium-sized entities (SMEs), which are estimated to represent more than 95 per cent of all companies. The standard is a result of a five-year development process with extensive consultation of SMEs worldwide. Fri, 10 Jul 2009 17:16:00 +0400

The International Accounting Standards Board (IASB) issued today an International Financial Reporting Standard (IFRS) designed for use by small and medium-sized entities (SMEs), which are estimated to represent more than 95 per cent of all companies*. The standard is a result of a five-year development process with extensive consultation of SMEs worldwide. The IFRS for SMEs is a self-contained standard of about 230 pages tailored for the needs and capabilities of smaller businesses. Many of the principles in full IFRSs for recognizing and measuring assets, liabilities, income and expenses have been simplified, topics not relevant to SMEs have been omitted, and the number of required disclosures has been significantly reduced. To further reduce the reporting burden for SMEs revisions to the IFRS will be limited to once every three years. Benefits The IFRS for SMEs responds to strong international demand from both developed and emerging economies for a rigorous and common set of accounting standards for smaller and medium-sized businesses that is much simpler than full IFRSs. In particular, the IFRS for SMEs will: <UL> <LI>provide improved comparability for users of accounts </LI> <LI>enhance the overall confidence in the accounts of SMEs, and </LI> <LI>reduce the significant costs involved of maintaining standards on a national basis. </LI></UL> The IFRS for SMEs will also provide a platform for growing businesses that are preparing to enter public capital markets, where application of full IFRSs is required. The IFRS for SMEs is separate from full IFRSs and is therefore available for any jurisdiction to adopt whether or not it has adopted the full IFRSs. It is also for each jurisdiction to determine which entities should use the standard. It is effective immediately on issue. Rigorous development In developing the IFRS for SMEs the IASB consulted extensively worldwide. A 40-member Working Group of SME experts advised the IASB on the structure and content of the IFRS at various stages in its development. The exposure draft of the IFRS, published in 2007, was translated into five languages to assist SMEs in responding to the proposals. More than 50 round-table meetings and seminars were held to receive direct feedback, and the draft IFRS was field-tested by over 100 small companies in 20 countries. As a result, further simplifications have been achieved in the final document. Paul Pacter, Director of Standards for SMEs for the IASB, has agreed to lead a group to support international adoption of the standard. Further details of this group will be announced shortly. Global education initiative To support the implementation of the IFRS for SMEs the IASC Foundation is developing comprehensive training material. The Foundation is also working with international development agencies to provide instructors for regional workshops to “train the trainers” in the use of the training material, particularly within developing and emerging economies. The training material will be published in a number of languages. The English language material will be downloadable free of charge from the IASB’s website in late 2009. The complete IFRS for SMEs (together with the basis for conclusions, illustrative financial statements, and a presentation and disclosure checklist) can be downloaded free of charge from <A href="http://go.iasb.org/IFRSforSMEs">http://go.iasb.org/IFRSforSMEs</A> from today. Introducing the IFRS for SMEs, Sir David Tweedie, IASB Chairman, said: “The publication of IFRS for SMEs is a major breakthrough for companies throughout the world. For the first time, SMEs will have a common high quality and internationally respected set of accounting requirements. We believe the benefits will be felt in both developed and emerging economies. I thank Paul Pacter for his tireless efforts in leading the project, as well as the hundreds of people and SMEs worldwide who have assisted in the development of the IFRS”. Commenting on the announcement, Paul Pacter, Director of Standards for SMEs, said: “The IFRS for SMEs will provide businesses with a passport to raise capital on a national or an international basis”. _______________________________ <UL> <LI>*Data from OECD Compendium 2004 </LI></UL>

FASB Initiates “Disclosure Framework” Project Aimed at More Useful, Organized, and Consistent Disclosures http://gaap-ifrs.com/type/news/?id_news=2786&cat_id=24&org_id=0 Robert H. Herz, chairman of the Financial Accounting Standards Board (FASB), today announced the addition of a new FASB agenda project aimed at establishing an overarching framework intended to make financial statement disclosures more effective, coordinated, and less redundant. Fri, 10 Jul 2009 16:57:00 +0400

Robert H. Herz, chairman of the Financial Accounting Standards Board (FASB), today announced the addition of a new FASB agenda project aimed at establishing an overarching framework intended to make financial statement disclosures more effective, coordinated, and less redundant. The project was added in response to requests and recommendations received from several constituents, including the Investors Technical Advisory Committee (ITAC) and the SEC Advisory Committee on Improvements to Financial Reporting (CIFR).  “Many constituents have expressed concerns about so-called “disclosure overload”, - said Chairman Herz. - “While clear and robust disclosures are essential to informative and   transparent financial reporting - a critical component in maintaining   investor confidence in the markets - improving the way such disclosures are integrated can help decrease complexity. The Board will embark on this project to create a principles-based disclosure framework that will enable companies to communicate more effectively with investors and also help eliminate redundancy or otherwise outdated GAAP disclosure requirements”. Chairman Herz noted that the project objective is not intended to be “additive.” Rather, it will focus on developing a framework for improved GAAP disclosures. It is envisioned that this framework would enable all entities to focus on making more coherent disclosures in their annual reporting package, move away from what some assert has become a compliance exercise, and perhaps facilitate XBRL electronic tagging of information. Some specific financial reporting areas the project will evaluate and address include whether the disclosure framework should: <UL> <LI>Apply to all entities or perhaps exclude private or nonprofit entities</LI> <LI>Apply to interim reporting </LI> <LI>Focus only on high-level principles </LI> <LI>Focus only on notes to financial statements or extend to ways to better integrate information provided in financial statements, MD&A, and other parts of a company’s public reporting package.    </LI></UL> The FASB expects to begin deliberations this quarter and plans to issue a preliminary views document in the first half of 2010 .

Eight Russian companies made it to Fortune top-500 http://gaap-ifrs.com/type/news/?id_news=2785&cat_id=24&org_id=0 The USA’s “Fortune” published its rating of the world’s top 500 corporations for the year 2009, with 8 Russian companies within the list – most of them are representatives of oil and gas industry. Fri, 10 Jul 2009 16:16:00 +0400

The USA’s “Fortune” published its rating of the world’s top 500 corporations for the year 2009, with 8 Russian companies within the list – most of them are representatives of oil and gas industry. According to “Fortune”, there are two corporations from Russia even within the top-100 list. Those are “Gazprom” (22nd place) and “Lukoil” (65th place). Then goes “Rosneft” (158th), “TNK-BP” (234th), “Sberbank” (310th), “Severstal” (409th), “Surgutneftegas” (420th) and, finally, “Evraz Group” (454th). “Royal Dutch Shell”, English-Dutch oil company, is the absolute leader of the list: its revenue for the last year reached 458.3 billion USD. “Gazprom” won the second place of a separate rating of 50 most profitable companies (that is, entities with largest profits). Here, “Exxon Mobil” (USA) is the leader. Profits of “Gazprom” in 2008 amounted to 29.86 billion USD, which is 16.1% more than in 2007. There are three other companies within that list as well: “Rosneft” (24th place, 11.1 billion USD), “Lukoil” (29th place, 9.1 billion USD) and “TNK-BP” (50th and the last place here, 6.3 billion USD). Source: <SPAN lang=EN-US style="FONT-SIZE: 8pt; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: EN-US; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://en.rian.ru/">“RIA Novosti”</A>

British finance minister announced top-priority tasks in respect to taxation treaties http://gaap-ifrs.com/type/news/?id_news=2784&cat_id=24&org_id=0 British finance minister Stephen Timms published a list of top-priority questions to be discussed for the next year (until March 31 2010). In his announcement on July 1st he explained that British government intended to accelerate new tax conventions with almost 20 on-shore and offshore jurisdictions, including Australia, Austria, Belgium, Visgin Islands, Cayman Islands, Croatia, Ethiopia, Germany, Hungary, Israel, Luxemburg, New Zealand, Oman, Qatar, Spain, Sweden and Thailand. Fri, 10 Jul 2009 16:34:00 +0400

British finance minister Stephen Timms published s list of top-priority questions to be discussed for the next year (until March 31 2010). In his announcement on July 1st he explained that British government intended to accelerate new tax conventions with almost 20 on-shore and offshore jurisdictions, including Australia, Austria, Belgium, Visgin Islands, Cayman Islands, Croatia, Ethiopia, Germany, Hungary, Israel, Luxemburg, New Zealand, Oman, Qatar, Spain, Sweden and Thailand. “Top priority” questions concerning double taxation treaties are discussed by British government on annual basis to make sure that the system is working and meets requirements of legal entities and private individuals that receive income from abroad. Not long ago, several new double taxation treaties came into force: the ones with Saudi Arabia (signed on October 31st 2007, effective since January 1st 2009), Slovenia (signed on November 13th 2007, effective since September 11th 2008), and Moldavia (signed on November 8th 2008, effective since October 30th 2008). Besides, news protocols with Sweden and New Zealand on 26th June 2007 and 7th November 2007, also came into force on 22nd December 2008 and 28th August 2008, respectively. In 2008 and 2009, double taxation treaties were already signed with Netherlands, France, Libya, Mexico and Cayman Islands. The Great Britain also intends to accelerate negotiations on Tax Information Exchange Agreements (TIEA) with three offshore zones: Anguilla, Gibraltar, Turks and Caicos Islands. Apart from that, GB continues its negations with countries that promised to meet international requirements for transparencу and exchange of taxation-related information set by the Organization for Economic Co-operation and Development (OECD). The TIEA agreement between the Great Britain and Bermuda was signed in London on December 4th 2007, effective since November 10th 2008. Another TIEA agreement with the Isle of Man together with amendments to double taxation treaty (from 1955) are effective since April 2nd 2009.  The Tax Information Exchange Agreement and the double taxation treaty for private individuals (not legal entities) were signed in London on October 29th 2009 between Britain and British Virgin Islands – those were later considered by Parliament on June 17th 2009, together with TIEA agreements and amendments to tax treaties with Jersey and Guernsey islands. Source: <SPAN style="FONT-SIZE: 8pt; LINE-HEIGHT: 115%; FONT-FAMILY: Verdana; mso-fareast-font-family: `Times New Roman`; mso-bidi-font-family: `Times New Roman`; mso-ansi-language: RU; mso-fareast-language: RU; mso-bidi-language: AR-SA"><A href="http://conceptconsult.ru/">Concept consulting Ltd.</A>