MOST FINANCIAL EXECS SEE LIKELIHOOD OF IFRS
New York - Eighty-nine percent of financial executives view mandatory conversion to International Financial Reporting Standards to be either highly likely or somewhat likely in the U.S., according to a new survey by Deloitte. The survey of more than 245 executives in July also found that 80 percent of the respondents are either currently taking action, or planning to take action, on IFRS conversion.
Forty percent of the executives are either performing or have performed a high-level IFRS assessment, while another 40 percent said that they plan to perform an assessment in the future. In addition, 67 percent of those surveyed have designated a person or team to focus on IFRS, or monitor IFRS developments.
Only 20 percent of the respondents indicated that they have no plans for IFRS assessment activities.
INSURERS SLAM IASB PROPOSALS
New York - The Group of North American Insurance Enterprises expressed disappointment that in developing an international accounting standard for insurance contracts, the International Accounting Standards Board diverged from the contract fulfillment value approach supported by insurers and the U.S. Financial Accounting Standards Board.
"The IASB could take a significant step toward convergence of international accounting standards if it is able to reach the same conclusion that FASB reaches," GNAIE executive chairman Jerry de St. Paer said in a letter to IASB Chairman Sir David Tweedie.
The GNAIE pointed out that the CFV approach is based on settlement with the policyholder pursuant to the terms of the insurance contract, including the service element of the contract, and therefore is fundamentally different from a measurement approach that is based on immediate settlement or transfer of insurance obligations, which almost never occurs and is a largely theoretical concept.
The IASB staff is recommending a measurement approach that remains under development in the IASB's project to amend IAS 37, according to the GNAIE.
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