The IASB published for public comment proposals to amend the discount rate for measuring employee benefits. The proposals respond to calls from stakeholders to address a problem that the global financial crisis has made increasingly significant. IAS 19 Employee Benefits requires an entity to determine the rate used to discount employee benefits with reference to market yields on high quality corporate bonds. However, when there is no deep market in corporate bonds, an entity is required to use market yields on government bonds instead. The global financial crisis has led to a widening of the spread between yields on corporate bonds and yields on government bonds. As a result, entities with similar employee benefit obligations may report them at very different amounts. To address the issue expeditiously, the IASB proposes to eliminate the requirement to use yields on government bonds. Instead, entities would estimate the yield on high quality corporate bonds. If adopted, the amendments would ensure that the comparability of financial statements is maintained across jurisdictions, regardless of whether there is a deep market for high quality corporate bonds. In view of the urgency of the issue and the limited scope of the proposals the IASB has set a shortened period for comments on the exposure draft. The IASB intends to permit entities to adopt the amendments that arise from this exposure draft in their December 2009 financial statements. The exposure draft is available on the ‘Open for Comment’ section on

IASB publishes proposals for amendments under its annual improvements project Comments Due Date: 24 November 2009 On 26 August 2009, the IASB published an Exposure Draft proposing improvements to the following eleven IFRSs:

The proposed amendments reflect issues discussed by the IASB in the project cycle that began last year. The proposals range from clarification of the measurement of non-controlling interests in IFRS 3 Business ombinations (as revised in 2008) to changes of wording to clarify the meaning of IFRSs and remove unintended inconsistencies.Unless otherwise specified, the proposed effective date for the amendments is for annual periods beginning on or after 1 January 2011, although entities would be permitted to adopt them earlier. The proposed effective date for the amendments arising from IFRS 3 and the consequential amendments to the transition requirements of AS 27 Consolidated and Separate Financial Statements (as amended in 2008) is 1 July 2010. Basel Committee principles for revising IAS 39 The Basel Committee on Banking Supervision has published a set of high level guiding principles to assist the IASB in addressing issues related to provisioning, fair value measurement, and related disclosures. In releasing the principles the Basel Committee said that “the principles will help it produce standards that improve the decision usefulness and relevance of financial reporting for key stakeholders, including prudential regulators. Moreover, the principles would ensure that accounting reforms address broader concerns about procyclicality and systemic risk.” IFAC UpdateIFAC and The FT/Banker Magazine Launch Global SME Survey IFAC, in conjunction with The Banker magazine, have launched a survey to obtain a better understanding of the needs of lenders to small and medium entities (SMEs), the perceived challenges for SMEs in acquiring financing, and how the accountancy profession can best support SMEs and lenders. Lenders may respond to the online survey by September 11, 2009. The results of the research will be published in the October 2009 edition of The Banker.  IFAC G20 Accountancy Summit and Recommendations IFAC recently issued a letter calling for broad action by the G20 leaders at their Pittsburgh Summit on September 24–25, 2009. The letter includes recommendations encouraging the adoption and implementation of global accounting, auditing, and auditor independence standards to improve the ability of capital markets to work globally. In addition, IFAC has called for the worldwide adoption and implementation of International Public Sector Accounting Standards to improve government transparency and accountability. It is also urging that further steps be taken to enhance the governance of the International Accounting Standards Board in order to ensure its legitimacy and its ability to act independently, and without inappropriate political interference, in its standard-setting role. The recommendations reflect the views of the 60 leaders of accountancy organizations who attended the IFAC G20 Accountancy Summit, which took place in London, UK, July 23-24. The letter with the full list of recommendations is posted on the IFAC website: www.ifac.org/ financial-crisis.To learn more, please see the Monitoring Group’s press release: web.ifac.org/ download/Monitoring_Group_Press_Release.pdf.

Q&As Issued by the International Auditing and Assurance Standards Board

The staff of the International Auditing and Assurance Standards Board (IAASB) has developed a new question-and-answer publication entitled Applying ISAs Proportionately with the Size and Complexity of an Entity. The publication was developed to assist auditors worldwide in implementing the clarified International Standards on Auditing (ISAs). While the publication is relevant in the context of any audit, it will be of particular help to those who audit, or oversee the audits of, small- and medium-sized entities.

The publication can be downloaded from the IAASB Clarity Center

http://www.ifac.org/Members/DownLoads/applying-isas-proportionate.pdf Call for Comments on Exposure Draft for the IAESB 2010-2012 Strategy and Work Plan

The International Accounting Education Standards Board (IAESB) is seeking comments from IFAC member bodies, regulators, accounting firms, employers, the academic community, and others on the exposure draft (ED) of its 2010-2012 Strategy and Work Plan. The proposed strategy focuses on revising International Education Standards (IESs) and developing new guidance for the adoption and implementation of the standards. Through the projects and activities outlined in the proposed plan, the IAESB aims to continue to assist IFAC member bodies in developing the capacity and capability of the global accountancy profession. Three high-priority activities described in the ED are:

The IAESB will consider a draft of a proposed statement on the drafting conventions at itsOctober 2009 meeting. Progress Report on IAAER/ACCA Education Research In the second quarter of 2008, the International Association for Accounting Education & Research(IAAER) held a research competition, funded by the Association of Certified Chartered Accountants (ACCA), to commission four research projects that will help the IAESB by providing evidence on the acceptance, implementation, and impact of accounting education standards throughout the world.As a follow-up to its February 2009 meeting, the IAAER held a meeting in early August to provide feedback on the four winning research proposals that cover topics related to the IAESB work program. IAESB members who attended the meeting indicated that they were pleased with the progress of the projects, given that all of the projects had reached the point where data was being collected and analyzed.The projects are as follows: