Home' A Plus Magazine : April 2013 Contents 8 April 2013
The Financial Accounting Standards Board of the United States said last month
it would join the 11 other members of the newly formed Accounting Standards
Advisory Forum, which will help set international accounting standards.
The ASAF was established earlier this year by the International Financial
Reporting Standards Foundation to improve cooperation among worldwide
financial reporting standard setters and to advise the International Accounting
Standards Board as it develops IFRSs.
The other ASAF members are the South African Financial Reporting Standards
Council, supported by the Pan African Federation of Accountants; the Group of
Latin American Standard Setters, represented by the Brazilian Committee of
Accounting Pronouncements; Canadian Accounting Standards Board; Accounting
Standards Board of Japan; Australian Accounting Standards Board; Chinese
Accounting Standards Committee; Asian-Oceanian Standard-Setters Group,
represented by the Hong Kong Institute of CPAs; Accounting Standards Committee
of Germany; European Financial Reporting Advisory Group; Spanish Accounting
and Auditing Institute; and the United Kingdom Financial Reporting Council.
The first meeting of the ASAF will be held on 8 and 9 April in London.
“ The FASB’s membership is an opportunity to represent U.S. interests in the
IASB’s standard-setting process and to continue the process of improving and
converging U.S. Generally Accepted Accounting Principles and IFRS,” said Jeffrey
J. Diermeier, chairman of the Financial Accounting Foundation Board of Trustees,
the independent organization that is responsible for the oversight of the FASB.
Regulators warn on risky
trades after bank losses
Italian regulators ordered companies to better
observe accounting rules concerning complex
derivative trades known as “term structured
repo” deals. It came after Monte dei Paschi
di Siena, Italy’s third-biggest lender, lost more
than €730 million on trading similar deriva-
tives. In a joint statement, the central Bank of
Italy, market watchdog Consob and insurance
regulator IVASS said companies needed to note
the potential impact of the deals on balance
sheets and profit and loss statements.
Four face more prison over
fraudulent tax assessments
Four people who set up bogus accounting
firms to defraud Eastern European workers in
the United Kingdom have been ordered to pay
back almost £1 million or face longer prison
sentences. Youri Khomitch, Victoria Chambers,
Oleksandra Hawkins and Alexander Soko-
lovski were jailed in 2010 after an investigation
by Her Majesty’s Revenue and Customs found
they stole £6 million by using workers’ identity
documents to submit more than 3,000 false
self-assessment tax returns.
E&Y to pay US $123 million
to settle tax fraud charges
Ernst & Young agreed to pay US$123 million to
resolve a tax shelter investigation in the United
States. The non-prosecution agreement comes
after the firm admitted participation, from 1999
to 2004, in implementing tax shelters for about
200 clients to defer, reduce or eliminate tax li-
abilities of more than US$2 billion, Accounting
Today reported last month.
Electric-car maker Tesla
postpones annual report
Tesla Motors, the California-based maker of
electric vehicles, said last month it would delay
its annual report after finding errors in account-
ing for capital expenditures. Some expenditure
from 2011 and 2012 would be reclassified as
operating activities rather than investment, the
San Francisco Chronicle reported. The compa-
ny said the error would not affect income state-
ments, balance sheets or cash flow.
IFAC backs G-20, EC in call for
stronger public-sector standards
The Group of 20 finance ministers last month called for improved accounting
standards in the public sector.
“In pursuit of our goal of strengthening the public sector balance sheet, work is
needed to better assess risks to public debt sustainability,” the ministers said.
Before the G-20 meeting, Ian Ball, the outgoing chief executive officer of the
International Federation of Accountants, called on Russia to use its G-20 presidency
to advance adoption and implementation of International Public Sector Account-
ing Standards in order to strengthen global financial stability.
IFAC applauded a European Commission report issued last month calling for
“ harmonized public-sector accruals-based accounting standards” to build trust
and financial stability, Accounting Today reported.
“ The sovereign debt crisis has underlined the need for governments to clearly
demonstrate their financial stability and for more rigorous and more transparent
reporting of fiscal data,” the commission report stated.
In addition, the commission recognized IPSAS as the only internationally
recognized set of public-sector accounting standards, and their foundation in
International Financial Reporting Standards.
FASB to join standards forum
for inaugural meeting in April
Five continents to be represented in London
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