IFRS newsletter - October 2010
Welcome to this edition of the IFRS Newsletter of Deloitte Luxembourg.
In this issue:
Accounting for employee share based payments
Companies are looking for opportunities to provide benefits to their employees which, in the perspective of an economic crisis, will limit cash outflows and align the interest of their employees with the shareholders of the company. In light of this, employees have been receiving share based payments (e.g. share options). The accounting for employee share-based payments is outlined in IFRS 2. The IASB has issued amendments to IFRS 2 which is effective for annual periods beginning on or after 1 January 2010 and must be applied retrospectively.
In this newsletter we will highlight some of the relevant accounting aspects of employee share-based payments under IFRS 2, the amendments to IFRS 2 and a brief comparison with Luxembourg Generally Accepted Accounting Principles (“LUX GAAP”).
Changes from ED on revenue recognition
As part of the harmonisation of IFRS and US-GAAP, the IASB issued recently an Exposure Draft with the intention to align criteria for the recognition of revenue under both frameworks. The article in this newsletter will present some of the main changes which are introduced by the Exposure Draft and discuss the potential impact it can have on the current accounting.
To be issued soon: New IFRS on consolidated financial statements
In 2008, the IASB has issued an Exposure Draft on Consolidated Financial Statements with a significant impact on the definition of control. In Luxembourg, the planned issue of the related IFRS by the end of 2010 is considered an important step as it might result in important changes for the treatment of investment vehicles. In this article, we will summarize the main ideas of the exposure draft and highlight the criticisms relating to this new approach.
For additional information on these topics and on services we could provide to your entity, contact us at firstname.lastname@example.org. Deloitte has a range of tools and publications to assist in implementing and reporting under IFRS.