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The Institute of Chartered Accountants of the Caribbean 1The Institute of Chartered Accountants of the Caribbean The Institute of Chartered Accountants of the Caribbean

he Instituteof Chartered Acountants ofthe Caribbean

T N EWSLETTERNEWSLETTER

PRESIDENT’SMESSAGE

Harry ParmesarICAC President

Produced by: The ICAC Secretariat 6 Lockett Avenue, Kingston 4, JamaicaTel: (876) 922-3223 Fax: (876) 948-6610Email: [email protected]: www.icac.org.jmContact: Misha Lobban, CEO

Designed by: E. Stephen King, Graphic Designer

August - November 2010

• In Brief: Board of Directors Meeting….…….......3• ICACAffiliateNews……..…....…4-5• Highlights:-ICACPresidentCallsforHarmonisationasUWICelebrates35thAnniversaryofitsMScAccountingProgramme............6

- ICABPresidentAppointedtoIASBImplementationGroup……..............…..6- RegionalEvents……...………..........7• FYI:- GetReadyfortheICACs29thAnnualConferenceinJamaica–June2011……....................................8

• TechnicalFeatureArticle:- CountdowntoConvergence:ChartprogressonplanstooverhaulUSGAAPandIFRSoverthenext15months..10-11• TerritorialReports...........……...12-16•GlobalAccountancyUpdate...........18

Astheyear2010drawstoaclose,wereflectontheachievementsaswellasthemanychal-lengesthatconfrontedtheaccountancypro-fessionregionallyandglobally.FortheNewYear,wemust continue to exploreways tosurvivetheseuncertaintimesandtobecomemore proactive in formulating new strate-giestostrengthentheprofessionintheCar-ibbean.Itisalsocriticalthatwedevisenewapproachestoremainrelevantasaccountingprofessionalsandseizeopportunities toaddvaluetoourclientsandtothevariousindus-tries inwhichweareengagedaswellas tothewider society, so that we can influenceandmakemeaningfulchange.

This year the regional accountancy profes-sion celebrated significant milestones. OnOctober14th&15th, the InstituteofChar-tered Accountants of Trinidad and Tobago(ICATT) celebrated its 40th Anniversarywith a seminar themed, “Governance and Transparency: Back to Basics” and a galabanquet.The ICACBoardofDirectorshadthe privilege of celebrating this milestonewithICATTatthebanquetheldonOctober15atHyattRegencyHotel,Trinidad.

InNovembertheBahamasInstituteofChar-teredAccountants(BICA)willbecelebratingitsAccountants’Weekwithaseriesofactivi-ties and the Institute of Chartered Account-antsofGuyana(ICAG)willalsobecelebrat-ingitsanniversary.TheInstituteofCharteredAccountantsofJamaica(ICAJ),whichstart-edtheyearwithservicestocommemorateits45thAnniversary,willculminateitsactivitieswithanannualawardsdinneronDecember2.OnbehalfoftheInstituteofCharteredAc-countantsoftheCaribbean(ICAC),Iextendheartiestcongratulationstotheseregionalin-stitutes.

IalsowishtocongratulatetheDepartmentofManagementStudies,UWIMonaonthe35thAnniversaryofitsMasterofScienceDegreeinAccountingProgramme.TheMSc.inAc-

countinghasfacilitatedthecertificationandprofessional development of accountants inJamaica since 1975 and Iwas honoured tohave been asked to deliver the keynote ad-dressat the35thanniversarydinnerheldattheMonaVisitors’LodgeonSaturday,Octo-ber30,2010.

On the international scene, accountantsfromallover theworldconvergedinKualaLumpur,MalaysiaovertheperiodNovember8-11forthe18thWorldCongressofAccount-antsthemed,“Accountants: Sustaining Value Creation.” Thiseventisthelargestgatheringofaccountantsandbusinessprofessionalsinthe world who come together each year tosharetheirideas,knowledgeandtonetwork.

Regionally, the ICAC continues to pursueCPD initiatives in collaborationwithmem-ber institutes and our affiliates, in an effortto help meet the professional developmentneedsofaccountantsintheregion,wheretheneed exists. In this regard, a CPD seminarwasheldjointlywithCGACaribbeaninGre-nada andSt.Lucia inSeptember and plansarebeingmadetohostCPDeventsinthefirstquarterof2011.

TheICAC,initscontinuedefforttoprovidesupportandvalue-addedservicestoitsmem-ber institutes,haddiscussionswithMichaelScott of PCP Limited in the UK regardingtheprovisionofauditsupportservicesintheCaribbean,wheretheneedmayexist.Asimi-lar project is being carried out successfullybytheInstituteofCharteredAccountantsofTrinidadandTobago(ICATT),inwhichtheservices of Mr. Scott is contracted to pro-videtechnicalsupportonISAsandotheris-suesrelatedtoSmallandMediumPractices(SMPs)inTrinidad.

Weconsiderthisservicealow-costapproachtoprovidingtechnicalsupporttoSMPsintheCaribbeanandsoweencourageallregionalinstitutes to take advantage of the techni-cal audit support services being offered by

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MichaelScottforthebenefitofSMPswithintheirrespectiveter-ritories.WebelievethatthisinitiativeprovidesanopportunityforSMPstogetthetechnicalandexperthelpthatwillensureimprove-mentsinthequalityofauditservicesintheregion.

Throughthismedium,IalsowishtoinformyouthattheICAChasestablishedaTaskForcetoundertakefurtherreviewofitsArticlesand Memorandum ofAssociation, in consultation with regionalinstitutes, and tomake recommendations to the ICACBoard onsuitable amendments.This is in an effort to further improve thegovernanceframeworkoftheICAC.TheTaskForcewillbeseek-ingtheinputofregionalinstitutesintheprocessandwelookfor-ward to receiving your feedback/recommendations re proposedamendmentsasweworktogethertoimprovethegovernanceandlegislativeframeworkof theICACin the interestof theregionalaccountancyprofession.

TheICAC/ACCAPracticeMonitoringprogrammehasbeenpro-gressingverywellinBarbados,GuyanaandTrinidadandTobagoand Iampleased to report that ithascommenced in theEasternCaribbean.Basedonthepositivefeedbackwehavebeenreceiving,practitioners in theregionareseeing thebenefitsof themonitor-ingreviewprogrammeinhelpingtoimprovetheirauditproceduresandthequalityofaudits.

The regional practice monitoring programme has also receivedrecognition from international interest groupswhowish to learnfromourexperience.Inthisregard,theICACwasinvitedbytheAuditandOversightCommunityofPractice(AOCoP)tosharetheregion’sexperiencewithpracticemonitoringandimprovementstoour quality assurance systems for the benefit of the community.Ihadtheopportunity tomakeapresentationviavideolinkat theAOCoPworkshoponWednesday,October13tosharetheexperi-enceofmemberbodiesintheregionwiththeimplementionofthe

monitoringreviewprogramme.

TheAOCoPworkshop provides a forum for those chargedwithstrengtheningauditingandoversightintheircountriestoshareide-asandexperiences,learnfromexternalreferencepointsandoffersuggestionsonthethemeofstrengtheningauditingandoversightunder the “Road to Europe: Program of Accounting Reform and Institutional Strengthening” (REPARIS). This is aWorld Bank-managedprogrammefinancedbythegovernmentsofAustriaandLuxembourgwhichisaimedatcreatingatransparentpolicyenvi-ronmentandeffectiveinstitutionalframeworkforcorporatefinan-cialreportinginSouthCentralandSouthEastEurope.Participat-ing countries includeAlbania,Bosnia andHerzegovina,Croatia,Kosovo,FormerYugoslavRepublicofMacedonia,Moldova,Mon-tenegro,andSerbia.

The ICAC’s 29thAnnual Caribbean Conference ofAccountantswillbehostedbytheInstituteofCharteredAccountantsofJamaica(ICAJ)inKingston,overtheperiodJune23-25,2011.Weantici-pateanotherhighqualityICACAnnualConferenceandso,ween-courageyoutosavethisdateinyourcalendarofeventsfornextyear.TheICAJplanningteamhaspromisedasuperbconferenceandthatexcitingplansarebeingmadefordelegatesandspousessoweencourageyoutobegintomakepreparationstobethere.

Finally, I extend Seasons Greetings to all ICAC Directors andtheirfamilies.IespeciallythanktheChiefExecutiveOfficeroftheICAC,MissMishaLobbanandAdministrativeAssistant,LomeahReid,fortheirsupportoverthepastyearandlookforwardtotheircontinuedassistanceintheNewYear.

Harryram ParmesarPresident

President’sMessage cont’d

The Institute of Chartered Accountants of the Caribbean 3

ICAC/ACCA Practice Monitoring Programme - Update ThemonitoringprogrammehasbeenprogressinginGuyanaandareportonfindingsbythemonitoringteamshouldbesubmittedshortlytotheCounciloftheInstituteofCharteredAccountantsofGuyanaforfollow-upaction.

InBarbados,monitoringreviewswillbecompletedsoonandthenextphaseoftheprocesswillinvolvefollow-upvisitswithfirmsbasedonthefindingsofthereviewteam.

InTrinidadandTobago,aLicensingReviewCommitteewases-tablishedtoexaminethefindingsbasedonthereportofthemoni-toringteamarisingfromthepracticereviewprocess.

FollowingthesigningofthepracticemonitoringcontractbytheInstitute of CharteredAccountants of the Eastern Caribbean inJune2009,monitoringreviewshavecommencedinSt.LuciaandAntigua.WorkshopsarebeingconductedinGrenadabyACCA’smonitoring teamtopreparepractitionersfor thestartofpracticereviewsinthatterritorysoon.

Revisions to the ICAC’s Memorandum & Articles of Association Phase two of the comprehensive review and modernization oftheArticlesisscheduledtocommenceshortly.Thiswill involveconsultationwith each regional institute for input regarding theproposedamendmentsaimedatstrengtheningtheexistingorgani-zationalstructureandgovernanceframeworkoftheICAC.

TheTaskForce spearheading the process of reviewand recom-mendations to the ICACBoardonproposedamendments to theMemorandum and Articles is chaired by Vice-President, JoanBraithwaiteandcomprisesDirectors,FrankMyers,PrunellaVas-

sell,AndrewBrathwaite,AnthonyPierreandLyleHandfield.

Mutual Reciprocity Agreement for ICAC Member Institutes AdraftReciprocityAgreement,intendedtoestablishmutualrec-ognitionamongregionalinstitutesandtofacilitatethefreemove-mentofprofessionalaccountantswithin theCaribbean,wascir-culated to member institutes in September inviting their input/feedback.

The ICACTask Force spearheading this initiative is seeking toensureconsensusonthedraftMRAandanticipatesthatfeedback/input from regional instituteswill be received early in theNewYeartofacilitatefinalizationoftheagreementforsign-offattheICAC’sBoardMeetinginFebruary2011.

ThedraftMRAisconsistentwithprovisions for freemovementof labour underCARICOM’sprotocol for theCaribbeanSingleMarket&Economy(CSME),whichencouragestheremovalofallobstacles to intra-regionalmovementofskills, labourand traveland theestablishingof commonstandardsandmeasures for ac-creditationandequivalency.

Economic Partnership Agreement (EPA) & the Accountancy ProfessionAprojectproposalfortechnicalassistancetosupporttheaccount-ingsector inpreparationfor thenegotiationofMutualRecogni-tionAgreements(MRAs)undertheEPAhasbeensubmittedtoaregionaldonordevelopmentagencyforfunding.Theoverallob-jective of the proposal is to implement preparatory activities inrelationtoMRAsthatwillbeenteredintobytheaccountingsectorwithEuropeantradingpartnersundertheCARIFORUM-EUEco-nomicPartnershipAgreement.

OARD OF DIRECTORS’ MEETINGBIN BRIEF

The following are highlights of issues discussed at the ICAC’s 58th Board of Directors’ Meeting held on Saturday, October 16, 2010 in Trinidad and Tobago.

CONDOLENCES

• The ICAC Board extends deepest condolences to themembersandCounciloftheInstituteofCharteredAccountantsofBelizeon the tragicdeathof formerCouncilmemberandTreasurer, Maria Fernandez-Stuart CFE, CrFA, FCPA, CPA.Mrs.Fernandez-StuartdiedonSaturday,October16,2010asaresultofinjuriessustainedinasenselessattackatherhomeinBelizeCitythatalsoclaimedthelifeofherhusband,RichardStuart.

Mrs.Fernandez-StuarthadbeenamemberoftheInstitutesince1996andservedontheICA-BelizeCouncilfromApril2005toApril2009.SheheldthepostofTreasurerforthreeyearsandmadeaninvaluableservicetotheCouncilandmembership.

TheICACalsoextendscondolencestothefamilyofMr.andMrs.Stuart.MayGodgrantyoustrengthduringthisdifficulttimeandmaythesoulsofMariaandherhusbandrestinpeace.

• TheICACalsoextendsdeepestcondolencestothemem-

bersandCounciloftheInstituteofCharteredAccountantsofBarbados(ICAB)and thepeopleofBarbadoson thepassingoftheirPrimeMinister,theHonourableDavidThompson,whodiedonSaturday,October23,2010.

FormerPrimeMinisterThompsonwillalwaysberememberedasoneoftheregion’syoungest,mostvibrantandoutstandingleaders, who made a significant contribution to CARICOMandonewhohadanunconditionalloveandcommitmenttohiscountryandtothepeopleofBarbados.Heishailedasatruestatesmanintheregionandonewhoembodiedgreathopeandinspiration.Hislifeandlegacywilllongberemembered.Mayhissoulrestinpeace.

• Condolences are also being extended to former ICACTreasurer and Partner, PWC (Barbados), Brian Robinson onthepassingofhisfatherinSeptember.MaythepeaceofGodstrengthenyouandyourfamilyduringyourperiodofmourn-ing.


IN BRIEFIAssociation of Chartered Certified Accountants (ACCA)

ACCA launches Foundations in Accountancy ACCA has announced “Foundations in Accountancy”, a newflexible suite of entry-level awards designedwith both studentsandemployersinmind.RetainingarevisedCertifiedAccountingTechnician (CAT) Qualification, Foundations in Accountancyprovides grounding in financial and management accounting,with professionalism and ethical behaviour at its core. Thewide-ranging syllabus spans the key elements of financial andmanagement accounting, including an Accountant in Businessmodulewhichputs students’ newknowledge into an economic,legalandregulatorycontext.

Flexibility is a key feature ofACCA’s new suite of awards intermsofassessmentdeliveryandlevelofprogression.ACCAhasincreaseditscomputer-basedofferingandnowallowsstudentstositcomputer-basedexamsorpaperforthefirstsevenexamswhichmakeupFoundationsinAccountancy.

New President of ACCA ElectedMark Gold, a Senior Partner in the London offices of SilverLevene, the largest ACCA accountancy practice in the UnitedKingdom,was elected President ofACCA at the organisation’sAnnualGeneralMeetingonSeptember16.

HejoinedSilverLeveneasaPartnerin1988andhasseenthefirmgrow tobecome anAccountancyAgemedium-sizefirmwinnerandanawardwinnerforInnovation.SilverLevene,specialistsinSmallandMediumsizedEnterprises(SME),arealsowellknowninthemediaandentertainmentsector,workingforawiderangeofclientsincludingfilmandtelevisioncompanies,actors,directors,writersandproducersalongwithallothercommercialinterestsinthe sector.

A well-recognised figure in the entertainment sector and achampionofSMEs,Mr.Goldhasbeenamemberof theACCACouncilfor10yearsandhasservedasChairmanoftheFinance,ACCAUK and the Creative Industries Committees. He is alsoViceChairmanoftheACCASMECommittee.

Finance Director with NHS West Essex, Dean Westcott, waselected Deputy President while Professor of Accounting atMelbourne’sDeakinUniversity,BarryJ.Cooper,waselectedVicePresidentofACCA.

Financial Management in Emerging EconomiesACCA has published a report exploring how public financialmanagement can be strengthened in developing countries andemerging economies. The report, ‘Improving public sector financial management in developing countries and emerging economies’,discussescommonissuesrelatingtopublicfinancialmanagement, drawing onACCA’s experience of working withgovernments, regulators and stakeholders in these regions. Itprovides useful guidance for organisations to improve publicfinancialmanagement,includingcasestudieswhichexaminethelessons learnt from Botswana, Pakistan, Vietnam, Zambia andZimbabwe.

American Institute of Chartered Public Accountants (AICPA)

CIMA and AICPA Research Paper Provides Insights into ERM Implementation

As theglobaleconomiccrisiscontinues tocast its shadowoverorganizations in the U.S. and globally, more organizations aretackling business challenges by embracing Enterprise RiskManagement (ERM). To more fully understand global viewssurrounding ERM, the AICPA partnered with the CharteredInstitute of Management Accountants (CIMA) to publish ajoint paper “Enterprise Risk Oversight: A Global Analysis of its Current State,” based on U.S.A. and global ERM surveysconducted by the ERM Initiative at North Carolina StateUniversity. Read the joint paper at http://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/ERM/DownloadableDocuments/Enterprise%20Risk%20v3.pdf.

New AICPA Learning Center Offers Online Access to Convenient & Cost-Effective CPEDesigned to addressmembers’ requests and needs, the recentlylaunched AICPA Learning Center launched recently wasdeveloped by CPA2Biz, in partnership with the AICPA. ThisplatformprovidesmemberswithinstantonlineaccesstoAICPACPEself-studycourses,livewebeventsandvirtualconferences.PersonswillbeabletoeasilytracktheirCPEcreditsandaccesstranscriptsandcertificatesofcompletionondemand.Alsofeaturedare competencypathways to helpmembers gain theknowledgeand skills to chart their careers.To access theAICPALearningCenter,gotohttp://www.cpa2biz.com/learningandbrowsethelistofavailabletitles.

Certified General Accountants of Canada (CGA–Canada)

Government of Canada helping internationally trained accountants enter the workforce TheGovernmentofCanada is funding aproject thatwillmakeit easier for internationally trained accountants to find work intheirfield.TheHonourableRobMoore,MinisterofState(SmallBusiness and Tourism), made the announcement on behalf oftheHonourableDianeFinley,MinisterofHumanResourcesandSkillsDevelopment.

“Attractingand retaining thebest international talent to addressexisting and future labour market challenges is critical toCanada’s long-term economic success,” said Minister of StateMoore. “ThroughCanada’sEconomicActionPlan,we invested$50 million to improve foreign credential recognition so thatnewcomerscanputtheirknowledgeandskillstoworksooner.” CGA-Canada will receive $990,993 in Foreign CredentialRecognition Program funding for its project entitled ForeignCredentialRecognitionNationalHarmonization.CGA-Canada’sprojectwillcreateanationalonlineself-assessmenttoolthatwillprovidetimely,fairandconsistentevaluationsofforeign-trainedaccountants’educationandworkexperience.TheAssociationwillalsoworkwithinternationalaccountingbodieswhoseprogrammesaligncloselywithCanadianstandardstodevelopmutualcredential


recognitionagreements.

“WearegratifiedthattheGovernmentofCanadahasrecognizedtheneedforthisproject,anddelightedtohavebeenapprovedtodevelop it,” said Mr. AnthonyAriganello, President and ChiefExecutiveOfficer,CGA-Canada.“Thisonlineself-assessmenttoolwillquicklyrevealtoforeign-trainedaccountantsthestepsthey’llhavetotaketobecomecertifiedasaccountantsinCanada.Itwillsavethemagreatdealoftimeandguesswork,andshouldmakeiteasierforthemtobeginworkingintheirchosenfield.”

CPA Australia/CGA-Canada: Report of the Forum on SME IssuesInthespringof2010,CPAAustraliaandCGA-Canadaundertookto examine the financial and regulatory challenges facing theSmallandMediumsizeEnterprise(SME)sectorintheirrespectivecountriesintheaftermathoftheglobalfinancialcrisis.Thereportisbasedondirectconsultationwithmembersofbothorganizations,as well as two roundtable discussions with government andbusinessleadersheldMay21,2010inMelbourne,AustraliaandJune9,2010inGatineau,Canada.

The Melbourne and Ottawa Forum on SME Issueswasdesignedto identify, evaluate, and highlight successful approaches tosustainingarobust,competitiveSMEsectorthroughmoreefficientandeffectivepublicpolicy-making.Discussiontargetedthreekeypolicy areas: access to funding/ finance; regulatory burden; andtaxationpolicy.Toviewthereport,visit:http://www.cga-canada.org/

Certified Management Accountants (Canada)

CMA Canada is a partnership of the national body and the individual provincial/territorial societies which, guided by an affiliation agreement, are collectively and individually committed to common strategic goals. The work being done in the Caribbean, as well as the support being given to our members, students, and partners in the region, is done through the CMA Nova Scotia partner. This update focuses on the activities of CMA Nova Scotia, Bermuda, and the Caribbean.

New Programmes:CMAisproudtobelaunchingitsExecutiveCMAprogrammeintheCaribbeanregionstartingJanuary2011.Followingverystronginterest shown in itsAtlanticCanadianprogramme, thedecisionwasmadetoextendtheoffertotheregionaswell.

Otherprogrammescurrentlyofferedintheregionare:• CMAFoundationalStudiesProgrammethroughthe campusesofUWIandthroughdistanceinallotherlocations;• CMAEntranceExamthroughouttheCaribbean;and,• CMAProfessionalProgrammethroughtheCaveHill SchoolofBusinessandsoontobeofferedatthe ArthurLokJackGraduateSchoolofBusinessinTrinidad.

Key partnerships and relationship building in the Caribbean:CMAwasadmittedas anaffiliatememberof the ICAC in June2010.CMAwasalsorecognizedasanapprovedtraininginstitutionwith theAccreditationCouncil ofTrinidad andTobago (ACTT)inNovember2009,and iscurrentlyawaitingconfirmationof itsapplicationthroughtheBarbadosAccreditationCouncil(BAC).

WithintheMinistryofScience,Technology,andTertiaryEducationofTrinidadandTobago, thecombinedIMBA-CMAprogramme,offeredinpartnershipwiththeCaveHillSchoolofBusiness,was

approvedforGATEfunding.

Institute of Chartered Accountants of England and Wales (ICAEW)

ICAEW welcomes EU-level debate on role of auditorsThe European Commissioner for InternalMarket and Services,Michel Barnier, has published a Green Paper on corporategovernanceinfinancialinstitutions.Itisawide-reachingdocument,withoneofthequestionsaskedbeingwhethertheauditor’sroleshould be amended or extended. The Green Paper calls for areviewofauditors’ role in relation to risk-related information infinancial institutionsandalsoaskswhetherauditors’dutytoflagtoboardsandauthorities any risks theyuncover aspartof theirauditingworkneedstobeexamined.

CommentingontheGreenPaper,IainCoke,HeadoftheICAEWFinancialServicesFaculty,said:“Allmarketparticipants,includingauditors,needtoreflectonthecrisisandconsiderthelessonstheycanlearnfromit.

“Auditorsareinauniqueposition,andinterimfindingsfromourownstakeholderresearchshowthatmanybelievethatauditorscouldplayabiggerroleinriskreporting.However,itisfundamentalthatthisexplorationoftheauditor’sroledoesnotcreateanexpectationgapbetweenwhatauditorscanandcannotachieve,especiallyasregardstopredictingfutureeconomicevents.Moremayneedtobedone toexplainwhat theauditprocessentailsandwhatgoesonbehindthefinalauditreport,includingthediscussionsbetweenauditorsandauditcommittees.”

ICAEW Reports on Audit of Banks – Lessons from CrisisTheICAEWFinancialServicesFacultyhasissueditsreport,Audit of banks: lessons from the crisis.Thereportfollowsasixmonthresearch project, including interviews with senior stakeholdersfrom banks, investors and policymakers and seeks to identifyimprovementsinthefunctioningoftheauditsysteminthefuture.IainCoke,Head of the Financial Services Faculty, commented:“Ourreportsuggestsimprovementstothewaythatbankspresentriskinformationandhowauditorsandbanksupervisorsinteract.If there isonebig lessonforbankauditors, itmaybe thatmoreneedstobedonetoexplainthevalueofauditstooutsiders.Aswellasmaking recommendation for banks, auditors and supervisors,theICAEWhasmadeanumberofcommitments.These includedeveloping good practice guidance for bank auditors reportingto audit committees and setting up an investor-auditor forum tohighlightthemesthatauditorswillbepayingparticularattentiontoacrossthebankingsectorinareportingseason.”

Whiletheauditingandtheregulatoryframeworkthatsupportsithasgenerallyheldupwellinthecrisis,questionshaveneverthelessbeen asked, including by theUKHouse of CommonsTreasuryCommittee, about the value of bank audits, since auditing didnot provide forewarning of the banking crisis. The EuropeanCommission, in its Green Paper on Corporate Governance inFinancial Institutions andRemunerationPolicies, issued in June2010, questions the scope of auditor responsibilities, coveringareassimilartosomeoftheproposalsinthispaper.

ForacopyofLessons from the Crisis,browse:http://www.icaew.com/index.cfm/route/172480/icaew_ga/Technical_and_Business_Topics/Thought_leadership/Inspiring_confidence_in_financial_services/Audit_of_banks_lessons_from_the_crisis/pdf


HIGHLIGHTS

HIGHLIGHTS

The ICAC welcomes the appointment ofAndrew F. Brathwaite, President of the In-stituteofCharteredAccountantsofBarbados(ICAB) to themembership of InternationalAccounting Standard Board (IASB) SMEImplementation Group (SMEIG) effectiveJuly2010.HewillrepresenttheCaribbeanontheSMEIGforatermendinginJune2012.

TheICACcongratulatesMr.Brathwaiteonthiswell-deservedap-pointmentandviewsthisasanotheropportunityfortheaccountan-cyprofessionintheCaribbeantomakeameaningfulcontributionattheinternationallevel.

Mr.BrathwaiteisthePrincipalofAFBConsultingCharteredAc-countants andhas extensive experience as it relates to IFRS forSMEs.A formerChairman of ICAB’sAccounting andAuditingStandardsCommittee, he has been actively involved in review-ingandcommentingontheexposuredraftsoftheIFRSforSMEsStandardsandhasbeenanadvocateofSMEsinBarbados.Heisasolepractitionerwith18yearsofexperienceintheprofessionandhasbeenamemberofICAB’sCouncilsince2002,wherehehasservedasTreasurerandVice-President.

Chaired by Paul Pacter, IASB Board member, the 21-memberGroupwasselectedon thebasisof theirknowledgeandexperi-enceinthefinancialreportingofSMEs.TheGroup’smissionisto

CABPresidentAppointedtoIASBSMEImplementationGroup

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CACPresidentCallsforMoreHarmonizationasUWICelebrates35thAnniversaryofitsMSc.AccountingProgramme

ICACPresident,HarryramParmesar,hascalledfortheaccountingcurriculumat theUniversityof theWest (UWI) tobe tailored tosuittheCaribbeanenvironmentandthatthenecessaryeducation,research and trainingbe provided to produce accountingprofes-sionalswhoareequipped tomakesoundeconomicandfinancialdecisions.TheICACPresidentwasthekeynotespeakerattheUniversityoftheWestIndiesDepartmentofManagementStudies’dinneronOc-tober10at theMonaVisitor’sLodge,UWItocommemoratethe35thAnniversaryof itsMasterofScienceDegree inAccountingProgramme.Addressing the theme, Harmonization of the Accounting Cur-riculum within the Caribbean, Mr.Parmesarnoted that theprocesshadstartedbuttherewasneedforgreaterlevels of harmonization throughoutthe region.He said that the accounting curricu-lum needed further harmonisation,citing the inadequate co-operationamong universities across the Car-ibbeanwhich has resulted in differ-ences in equivalent accounting pro-grammes. Another reason he citedwas the lack of recognition givenby international professional bodiesto the regional accountingqualifica-tions. Hefurthernotedthat“Thecurriculummust be geared to produce account-antswhowillprovidethesupportthatwillgenerateconfidenceinfinancialreporting,assistbusinessestoinspire confidence in their operations, attract investors, achievegrowth,createmorejobsandultimatelycontributetovibrantecon-omiesandtheoveralldevelopmentoftheregion.”Mr.Parmesaraddedthat theaccountingcurriculumintheCarib-bean should alsobe established in accordancewith internationalstandards.

TheICACPresidentsaidthereisneedforacomprehensivestudytoclearlyidentifytheaccountingskillsthatarerequiredtomeettheincreasingdemandsof today’sbusinessenvironment.Theresultsofsuchasstudy,hesaid,shouldformthebasisfortheformulationofarelevantandcomprehensiveaccountingeducationprogrammeandtheestablishmentofregionalaccountingqualificationsthatareadministeredregionally.“Such a programme should be implemented by the variousuniversitiesintheregion.Inthatway,allstudentswillbedoingthesame,notsimilarexams,regardlessofthelocationoftheUniversity.Thisisnotaneasytaskbutitisachievableifwedemonstratethewillandcommitmenttoembracechange,”henoted

HechallengedtheUWItotaketheleadin initiating the implementation of aharmonised regional accounting pro-grammeattheUniversitylevel.Mr.ParmesarcongratulatedtheDepart-mentofManagementStudiesonachiev-ingthismilestoneandfortheeffortstoimprove the standard and relevance ofthe MSc Accounting programme. TheMScinAccountinghasbeenofferedbytheDepartmentofManagementStudiessince1975andhasbeeninstrumentalinfacilitating thecertificationandprofes-sional development of accountants inJamaicaThe event was attended by Profes-sorGordon Shirley, Principal ofUWI,Mona; Mrs. Elaine Robinson, Bursar,UWI; Mr. Michael Williams, Direc-

tor,UWIMScAccountingprogramme;ProfessorEvetteJackson,Chairperson, UWI Graduate Studies; Mrs. Sandra Mangaroo-Powell,SeniorAssistantRegistrar,GraduateStudies,Mr.LeightonMcKnight,formerICACSecretaryandpastPresidentoftheICAJ;Ms.MishaLobban,ChiefExecutiveOfficer,ICACandotherrep-resentativesfromtheaccountancyprofessioninJamaica.

ICAC President, Harryram Parmesar (second from left) makes a point to Leighton McKnight, former ICAC Secretary and past President of the ICAJ (left). Sharing in the discussion are Professor Gordon Shirley, Principal of UWI, Mona (second from right) and Mr. Michael Williams, Director, UWI MSc. Accounting programme.


HIGHLIGHTSEGIONALEVENTSR

• Seminar on Strategies for Successful Business Plan-ning in GrenadaTheICACinpartnershipwiththeCertifiedGeneralAccountantsof theCaribbean(CGA-Caribbean)hostedajointCPDSeminarinGrenadaonTuesday,7thSeptember,2010.Theseminarenti-tled,Challenges Facing Businesses and Strategies for Successful Business Planning,washeldinthemainconferenceroomoftheNationalStadiuminSt.Georges,Grenada.

Seminarpresenter,OralDowell,CharteredAccountantandCEOofDowell’sAdvisoryServicesgaveparticipantsanin-depthun-derstandingofthechallengesandcomplexitiesfacingbusinessesin today’s globally competitive environment, the solutions theycanapplytoshift theirbusinessintherightdirectionaswellasthebenefitsofemployingcontinuousbusinessimprovementstrat-egies. • Seminar on IFRS Updates & Strategies for Success-ful Business Planning in St. LuciaThe ICAC and CGA-Caribbean in collaboration with ICAECSt.LuciabranchalsohostedajointseminaronIFRS Updates & Strategies for Successful Business Planning onWednesday,Sep-tember8attheBayGardensHotel,RodneyBay,St.Lucia. SponsoredinpartbySagicor,theseminarattractedsome40par-ticipants including,accountantsandfinancepersonnel fromtheprivateandpublicsectorsinSt.Lucia.

The first presentation focused on International FinancialReporting Standards (IFRS) for Small and Medium-sizedEntities(SMEs)andtheapplicabilityofthestandardinfinancialreportingrequirementsofvariouscompaniesandinstitutions.ThepresenterwasAndrewBraithwaite, President of the Institute of

CharteredAccountants of Barbados (ICAB), and a member oftheInternationalAccountingStandardsCommitteeFoundation’sSMEImplementationGroup(SMEIG).

ThesecondpresentationwasanoverviewofInternationalFinan-cialReportingStandards(IFRS)whichareeffectivein2010.ThiswaspresentedbyHarryramParmesar,PresidentofICAC.Partici-pantswerealsoexposedtothechallengesfacingbusinessesintheCaribbeanandstrategiesforsuccessfulbusinessplanning.

supporttheinternationaladoptionofIFRSforSmallandMedium-sizedEntities(IFRSforSMES)andtomonitoritsimplementation.Thegrouphastwomainresponsibilities:i. Todevelopnon-mandatoryguidanceforimplementingthe IFRSforSMEsintheformofquestionsandanswersthat willbemadepubliclyavailableonatimelybasis;andii. TomakerecommendationstotheIASBasnecessary regardingamendmentstotheIFRSforSMEs.

WhiletheSMEIGhasnotyetconveneditsfirstmeeting,abriefupdateonrecentIFRSforSMEsdevelopmentsisasfollows:• Sixty-six(66)jurisdictionsthroughouttheworldhavenow adoptedorstatedaplantoadopttheIFRSforSMEs.• Aneight-pageexecutivebriefingtothestandardintended forlenders,vendors,owner-managersandothershas beenpublished.Itisavailableathttp://www.ifrs.org/ IFRS+for+SMEs/IFRS+for+SMEs.htm• Issue#7oftheIFRSforSMEsUpdatenewslettershouldbe availableshortly.Previousissuesareavailableathttp:// www.ifrs.org/IFRS+for+SMEs/Update.htm.• Asareminder,thefulltextofthestandard,alongwith adisclosurechecklistandillustrativefinancialstatements maybedownloadedfreeofchargeathttp://www.ifrs.org/ IFRS+for+SMEs/IFRS+for+SMEs+and+related+material. htm.

• Trainingmodulesareavailableathttp://www.ifrs.org/ IFRS+for+SMEs/Training+modules.htm.Thesemodules includethefulltextofeachsectionofthestandardwith explanatorynotesandseveralpagesofworkedexamples, multiplechoicequestionsandcasestudies.• TheSMEImplementationGroup(SMEIG)hasobtained theservicesofapart-timestaffmember,whowillassistwith thetechnicalworkthatneedstobedone.• TheinitialfocusoftheSMEIGwillbeonresolving pervasiveimplementationissuesbydevelopingunofficial guidanceintheformofQ&As.TheworkoftheGroupwill initiallybeviaemailratherthanformalmeetings.• TheSMEIGwillshortlymakeaformalrequestfor submissionofqueriesandissuesforconsideration.Someof theunsolicitedqueriesreceivedinclude: - IfagroupusesfullIFRS,canitsparentuseIFRSfor SMEs? - Canacaptiveinsurancecompanyoraproperty/casualty insureruseIFRSforSMEs? - Cannon-profitorgovernmententitiesusethestandard? - DoesthealloweduseofIAS39nowalsoallowuseof IFRS9? - Whatexactlyismeantby“unduecostoreffort”?

Andrew Braithwaite, ICAB President and a member of the IASB’s SME Imple-mentation Group (SMEIG) outlines the major differ-ences between IFRS for SMEs and full IFRS to participants during the joint

CPD seminar held on Wednesday, September 8 at the Bay Gardens Hotel in St. Lucia.

Joanne Cooper, Vice President of ICAEC St. Lucia branch (third from right) is pleased to receive a sponsorship cheque from Sagicor (St. Lucia ) Branch Manager, Geoffrey Stephenson (2nd from left). Also participating in the presentation during the joint

CPD seminar held on September 8 in St. Lucia are Misha Lobban, Chief Executive Officer, ICAC (left); Graham Clarke, Chief Executive Officer, CGA-Caribbean (2nd from right) and Diane Scotland, Admin Officer, Sagicor (St. Lucia) at right.

Cont'donpage18


UPDATEFYI et Ready for the ICAC’s 29th Annual Caribbean Conference of Accountants in Jamaica - June 2011

TheInstituteofCharteredAccountantsofJamaica(ICAJ)willbehostingtheInstituteofCharteredAccountantsoftheCaribbean’s(ICAC)29thAnnualConferenceovertheperiodThursday,June23toSaturday,June25,2011.

ICAJ,undertheleadershipofitsPresident,ArchibaldCampbell,iscommittedtohostingasuccessfulconference,andhasalreadycommencedplanning for the event.The2011ConferencePlan-ningCommitteeisworkingtodeliveraconferencethatwillhavea strong technical programme and a high quality entertainmentpackage.Activitiesandfieldtripsforthespouses’programmewillhelptoroundoffatrulyunforgettableconferenceexperience.

Conference Theme & ProgrammeThemed,Third to First - Going the Distance,theconceptbehindtheconferenceprogrammehasbeeninspiredbytheCaribbean’sandJamaica’sstrongathleticachievements.Tobesuccessful,ath-letesmustbeextremelydisciplined.Inlikemanner,accountantsintheCaribbeanneedtoprepareandfocusonbeingnumberoneinourprofession.Wealsowanttoseeournationsmoveuptofirstworldstatus,hence,theconferencetheme. Theconference’stechnicalprogrammewillbeorganisedintosub-themes.Allthespecificagendaitemswillfallintooneofthefol-lowing categories, orTracks, to ensure that participants benefitfromtheintendedprogrammeobjectives:

• Track 1 - "Clearing the Hurdles" – This ses-sionwillexaminetheopportunitiesprovidedthroughtheincreaseduseofInformation&CommunicationTechnologywithintheprofession;developmentsoradvancesalreadyrealisedthroughInformationTech-

nology applications, aswell as the nature and consequences ofattendantrisks.Theprogrammewillalsolookatfuturetechnolo-giesandtheirpotentialtochangetheregion;associatedrisks,op-portunitiesandthemanagementofrisks.

• Track 2 - "Staying the Course" – In addition tofocusingontheprofession'scontributionstoeco-nomic recovery and development, the programmewillconsiderhowtheprofessioncanpositionrecov-erytowardsstabilityandprosperityonasustainable

basiswithintheregionandbeyond.Therelevanceandimportanceof international accounting and reporting standardswill also beexamined.

• Track 3 - "Going for Gold"-Thissessionwillassessgovernanceandperformanceimprovement. • Track 4 - "Breaking the Record" -This isthevalueandwealthcreationsegmentof thecon-

ference.Itwillfocusontheimportanceofattractinginvestorstotheregion,brandrecognition,valueaswellastheCaribbeanasafinancialcentre.

Conference Fees

Delegates -US$500(membersofICACregionalinstitutes) -US$550(non-members)Spouses -US$250

A10%discountwillbeavailableforearlyregistration.Registra-tionisscheduledtocommencedinearlyJanuary2011.

Conference Hotel and AccommodationThe2011ICACConferencewillbeheldattheJamaicaPegasusHotel,Kingston,locatedintheheartofKingston'scommercialdis-trict(NewKingston).TheJamaicaPegasusistheultimatemeetingplace......thesocialhub.....forabalancedblendofbusiness,leisureandentertainment.Itboastsvarioustypesofroomsandsuitestosuittheuniquetastesoftravellers.Therearegymfacilities,restau-rants,internetservice–bothwiredandwireless.Visitthehotel’swebsite,www.jamaicapegasus.com,tolearnmore.

SpecialratesattheJamaicaPegasusfortheConferenceareasfol-lows: Single DoubleDeluxeRoom/Suite US$152.00 US$174.00RoyalJuniorSuite US$185.00 US$207.00Royal1-BedroomSuite US$245.00 US$267.00LuxurySuite US$570.00 US$570.00

*Ratesquotedareperroom,pernight,andincludeJamaicanbuf-fetbreakfastdailyandallrelatedtaxesandgratuities.

Additionalaccommodationwillbeavailablefordelegatesatho-telswithincloseproximitytotheConferencehotel,namelyWyn-dhamKingston,TheCourtleigh,andSpanishCourtHotels.TheICAJPlanningteamwillarrangeshuttleservice,wherenecessary.

The2011ConferencepromisestobeexcitingandsoweencourageyoutosavethedateofJune23-25,2011onyourcalendars,andmakeKingston,JamaicayourdestinationfortheICAC’s29thAn-nualCaribbeanConferenceofAccountants.

Furtherdetailswillbeprovidedinupcomingissuesofthisnews-letter or via the ICAJ’swebsite atwww.icaj.org or the ICAC’s website,www.icac.org.jm.

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InNovember,FASBand the IASBreaffirmed theircommitment toa 2006MemorandumofUnderstanding (MoU) that outlinesmajorconvergence projects scheduled for completion by June 2011. Theaffirmed convergence plan continues the commitmentmade by thetwoboardssevenyearsagointheNorwalkAgreementto“maketheirexistingfinancialreportingstandardsfullycompatibleassoonas ispracticable.”Butitalsoexpandstheconvergenceplantoincludethemuchmoreambitiousgoalofcreatingnewstandardswheretheexist-ingstandardsofbothboardsweredeemedtoneedimprovement.Asaresult,manyoftheMoUprojects—andalloftheprojectscoveredinthisarticle—arecollaborativeeffortsbytheboardstodevelopentirelynew standards.By changingmuchofwhat hasbeen commonplaceinfinancialreportingforthepast30years, thecurrentprojectswillsignificantlyaffectallCPAsandallcompaniesthatreportunderU.S.GAAPorIFRS.

Asofthiswriting,ofthe11projectsoutlinedinthe2006MoU,onlyone,BusinessCombinations,hasbeencompleted.Another,IntangibleAssets, has been removed from the active agendas of both boards.Anda third,Post-EmploymentBenefits, thoughstillon the IASB’sagenda,was removed from the list of priorityMoUprojects at theboards’Octoberjointmeeting.OftheremainingprojectsintheMoU,theboardsprovidedfewerdetailsontheirplanstocompletestandardsforvaluemeasurementandfinancialinstrumentswithcharacteristicsofequity.ThisarticleprovidesasynopsisofthesixremainingpriorityprojectsintheMoU.

Threeoftheconvergenceprojects—FinancialInstruments,Consoli-dation and Derecognition—have taken on greater significance andarethussubjecttomorescrutinybecauseofthefinancialcrisisthatbeganin2008;asaresult,thestandardsettershavebeenpressedtodealwith themonanaccelerated schedule.The remainingprojectsdealwith important fundamentalaccounting issuessuchasrevenuerecognition, financial statement presentation, and lease accounting.SeeExhibit1fortheboards’projectplantimeline.Fortwomajorac-countingstandardsetterstocompletesuchalargenumberofdifficultjointprojectsinlessthantwoyearswouldbeunprecedented.TheJune2011deadline,however,hasbeenaffirmedbytheGroupof20(G-20)leaders;formerFederalReserveChairmanPaulVolcker,whochairsthePresident'sEconomicRecoveryAdvisoryBoard;theSECandtheFinancialCrisisAdvisoryGroupthatwassetuptoadviseFASBandtheIASBonhowtheyshouldrespondtothefinancialcrisis.

Financial InstrumentsAsaresultofthesubprimemortgagecollapse,accountingforloansandsecuritiesderivedfromloanswaswidelycriticized.Whenthefi-nancialcrisisstartedin2008,thisprojectwasalreadyontheactiveagendasofbothstandardsetters,butthecrisishasputenormouspo-liticalpressureontheIASBandFASBtoimprovetheirstandardsassoonaspossible.InamovethatwasnotfollowedbyFASB,theIASBsplititsprojecttoreplaceIAS39,FinancialInstruments:RecognitionandMeasurement,intothreepartstodealseparatelywithclassifica-tionandmeasurement;impairment;andhedging,respectively.FASBisdealingwithfinancialinstrumentsinasingleprojectandplanstoissueanexposuredraftinthefirstquarterof2010.

Classification and measurement.Despiteintensejointdeliberations,FASBandtheIASBwereunabletoagreeonacommonapproachfor

classificationandmeasurement.TheIASBpublisheditsapproachonNov.12,2009,withthereleaseofIFRS9,FinancialInstruments.IFRS9maybeadoptedearlybutisnoteffectiveuntilJan.1,2013.IASBBoardMemberJamesLeisenring,aformerFASBboardmemberwhoservesasliaisonbetweentheboards,saidatanAICPAconferenceinDecemberthathewouldnotrecommendanyoneadoptIFRS9earlybecausebothboardshaverecommittedtoachievingconvergenceonfinancial instruments,whichwill likelybringsignificantchanges toIFRS9.UndertheproposedFASBmodel:

• Allinstrumentswouldbemeasuredonthestatementof financialpositionatfairvaluewithchangesinfairvalue reflectedinnetincome,ornetincomeandother comprehensiveincome;• Alimitedamortizedcostoptionwouldbeavailablefor financialliabilities;and• Noreclassificationwouldbepermittedbetweencategories. UndertheIASBmodel(IFRS9):• Thescopeofthestandardislimitedtoassetsonly;• Amortizedcostisusedwhenitmatchestheentity’sbusiness modelandcashflowcharacteristicsoftheasset;• Fairvalueisusedforequityinstruments,mostderivativesand somehybridinstruments;and• Bifurcationofembeddedderivativesisnotpermitted.

Impairment. The IASB published its exposure draft dealing withimpairmentonNov.5,2009,withcommentsdueJuly5.TheIASBplans topublisha request forviewsonFASB’smodelwhenFASBpublishesitsED.Theboardsplantojointlyconsiderthecommentsreceivedonrespectiveproposedmodels.Theywillalsodiscussfeed-backreceivedfromanexpertadvisorypanelthathasbeenestablishedtoadvisetheboardsonoperationalissuesontheapplicationoftheircredit impairmentmodels andhow those issuesmightbe resolved.UndertheproposedFASBmodel:

• Acreditimpairmentwouldberecognizedwheninformation isavailableindicatingthatthereisanadversechangeinthe expectedfuturecashflowsofthefinancialasset;• Anentitymustconsiderallavailableinformationonpast eventsandexistingconditionsbutnotfuturescenarios;and• Creditorswouldnotbepreventedfromevaluatinglossesona poolorportfoliobasis. TheIASBpublishedonNov.5,2009,aproposedimpairmentmodelforthosefinancialassetsmeasuredatamortizedcost.Themodelusesexpectedcashflows.CommentsaredueJune30.TheproposedIASBmodelrequiresanentity:

• Todeterminetheexpectedcreditlossesonafinancialasset whenthatassetisfirstobtained;• Torecognizecontractualinterestrevenue,lesstheinitial expectedcreditlosses,overthelifeoftheinstrument;• Tobuildupaprovisionoverthelifeoftheinstrumentforthe expectedcreditlosses;and• Toreassesstheexpectedcreditlosseachperiodandto recognizeimmediatelytheeffectsofanychangesincreditloss expectations.

Hedging.TheIASBplanstopublishanEDonhedging,thethirdpartofitsfinancialinstrumentsproject,inthefirstquarterof2010toco-

FEATURE ountdown to Convergence:Chart progress on the plans to overhaul U.S. GAAP and IFRS over the next 15 months

byMatthewG.LamoreauxSeniorEditor,JournalofAccountancy

CEditor’sNote:The following article which was previously published in the March 2010 issue of the Journal of Accountancy (JofA), is re-printed with the permission of the Journal of Accountancy.


ordinatewithpublicationofFASB’sED.Atthiswriting,nodecisionshadbeenmadebyeitherboard.

ConsolidationThesubprimemortgagecrisishighlightedthecomplexityofdetermin-ingwhatentitiesmustbeconsolidated.FASBandtheIASBarework-ingjointlytoimproveconsolidationguidancesothatfinancialstate-mentsarefully informative.Inresponse to therecommendationsoftheFinancialStabilityBoard(anorganizationcreatedbytheG-20todealwiththeglobalfinancialcrisis),theIASBaccelerateditsconsoli-dationprojectandpublishedanEDinDecember2008.ThecommentperiodendedMarch20,2009.AttheirOctober2009jointmeeting,theboardsagreedtoconducttheirrespectiveconsolidationprojectsjoint-ly.Theyalsoconcludedthattheobjectivesandprinciplesforassess-ingcontrolofstructuresthatwouldbeclassifiedasvariable-interestentitiesarefundamentallythesameundertherecentamendmentstoU.S.GAAPonconsolidationandintheproposedIASBmodel.FASBisexpectedtopublishanEDinthesecondquarterof2010.TheIASBwillmakeavailableastaffdraftofitsproposedfinalstandardandwillalsopublisharequestforviewsontheFASBproposals.TheIASBandFASBareaimingtopublishfinal,convergedstandardsonconsolida-tionbythethirdquarterof2010.

Control.TheDecember2008IASBexposuredraftED10,Consoli-datedFinancial Statements, defined control as the “power to directtheactivitiesof[another]entitytogeneratereturnsforthereportingentity.”Underthedefinition,theIASBhastentativelydecidedthat:

• Powerrequiresjudgmentandis“thecurrentabilityto enforceone’swillindirectingtheactivitiesoftheentitythat significantlyaffectthereturns”;• Powerdoesnotneedtobeexercisednordoesitneedtobe absolute;• Powermustbeassessedbasedoncurrentfactsandcircumstances;• Activitiesarethosethatsignificantlyaffectitsreturns;• Returns“varywiththeactivitiesoftheentity”andcanbe “whollypositive,whollynegative,orpositiveandnegative.”

Derecognition FASBamended its requirements in relation to the derecognition ofsomefinancialassetsandliabilitieslastJunebyissuingStatementno.166,AccountingforTransfersofFinancialAssets,andStatementno.167,Amendments toFASB InterpretationNo.46(R).FASB’smainchangewastheeliminationofqualifyingspecial-purposeentities,orQSPEs.EliminatingtheQSPErequirementspotentiallycouldcausemanyentitiesapplyingU.S.GAAPtoretainmoreassetsandliabili-tiesintheirstatementoffinancialposition.Remainingdifferencesbe-tweenIFRSandU.S.GAAPderecognitionrequirementsinclude:U.S.GAAPrelieson theconceptof legal isolation,whileIFRSincludestheconceptof retentionor transferof substantial risksand rewardsrelatingtotheassettransferred.Themodelsalsodifferintheaccount-ingfortransferofportionsofassetsandtheaccountingforretainedinterests.

InMarch2009,theIASBpublishedanEDproposingaderecognitionmodelbasedoncontrol.ThecommentperiodclosedinJuly2009.Theproposalwasnotwellreceived,althoughtherewasqualifiedsupportforanalternativemodelalsoincludedintheED.TheIASBplanstocontinuedevelopingderecognitionrequirementsbasedonthatalter-nativemodel.Theboardshaveagreedtoassessinthefirsthalfof2010thedifferencesbetweenIFRSandU.S.GAAP.TheboardswillthenconsidertogetherthemodelthattheIASBhasbeendeveloping.Keyissuesthattheboardswillneedtoaddressinclude:

• Whatcriteriashouldbeappliedwhenderecognizingfinancial assets;howisderecognitiondifferentfromimpairment?• Atwhatamountshouldgains/lossesbereported?• Howshouldthosegains/lossesbepresentedinthefinancial statements(realizedorunrealized)?

• Underwhatcircumstanceswoulditbeappropriateto re-recognizepreviouslyderecognizedfinancialassets?• Whatdisclosuresareneededtoadequatelyinformfinancial statementusersaboutremainingrisksandtheirpotential outcomes?

Revenue RecognitionTheboardspublishedadiscussionpaper,Preliminary Views on Rev-enue Recognition in Contracts with Customers,togetherinDecember2008.U.S.GAAPprovidesdetailedguidancethatisoftenindustry-specific.Thenewconvergedstandardisexpectedtoapplyonemodelandcertainbasicprinciplesacrossallindustries.Undertheproposednewmodelpresentedinthediscussionpaper,PreliminaryViewsonRevenueRecognitioninContractswithCustomers,anentityshouldrecognize revenuewhen it satisfies itsperformanceobligations inacontractbytransferringcontrolofgoodsandservicestoacustomer.TheboardshaveagreedtopublishajointEDinthesecondquarterof2010andafinalstandardbythesecondquarterof2011.

AtanAICPAconferenceinDecember,IASBBoardMemberPatrickFinneganpresentedthefollowingsix-stepprocesstodemonstratehowtheproposedmodelwouldbeapplied:

• Step1:Identifythecontract.• Step2:Identifytheperformanceobligations.• Step3:Determinethetransactionprice.• Step4:Allocatethetransactionprice.• Step5:Recognizerevenuewhenperformanceobligationsare satisfied.• Step6:Accountforcontractcosts.

Percentage of completion accounting. In response to what he saidwas a commonmisconception among readersof thediscussionpa-per,Finnegansaidtheboardsdonotintendtoabolishpercentageofcompletionaccountingunderthenewmodel.Hepointedoutthatthenotionofa“continuoussale”containedinSOP81-1hasbeenincor-poratedintothenewmodelinthenotionofa“continuousdelivery.”However,FASBTechnicalDirectorRussellGoldensaidthenewmod-elmovesawayfromthematchingprinciplebecause,underthenewmodel,incurringapercentageofcostsassociatedwithaperformanceobligationisnolongeracriterionforrecognizingassociatedrevenues.

Definition of control.Finnegansaidmanycommentsreceivedonthediscussionpaperfocusedontheneedtoclarifythemeaningofcontrol.He said the IASB, after consultingwith FASB, tentatively decidedatitsSeptember2009boardmeetingthattheprincipleofcontrolin-volvedacustomer’s“unconditionalobligationtopayforanasset,le-galtitletoanasset,theabilitytoselltheassetorphysicalpossessionoftheasset.”

Allocation to contract segments. Another concern raised in com-ments,Finnegansaid,waswhetherthemodelwouldbeoperational,particularlyinregardtoallocatingthetransactionpricetoindividualperformanceobligations. Inresponse,Finnegansays, theboards in-troducedthenotionofa“contractsegment”thatwouldallowsimilarperformanceobligationstobegroupedtogetherforthepurposeofal-locating the transactionprice.Preparers inmultiplecountries testedtheconceptinthefourthquarterof2009.

Estimated stand-alone selling prices. InOctober, FASB issuedAc-countingStandardsCodification(ASC)Updateno.2009-13,Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrange-ments—a consensus of the FASB Emerging Issues Task Force,whichappliestomultiple-deliverablerevenuearrangementsthatwerewithinthescopeofEITFIssueno.00-21,Revenue Arrangements with Mul-tiple Deliverables.BothASCUpdateno.2009-13andEITFIssueno.00-21havebeencodifiedunderASC605-25.ASCUpdateno.2009-13providesprinciplesandapplicationguidanceonwhethermultipledeliverablesexist,howthearrangementshouldbeseparated,andthe

Continuedonpage19


The Bahamas Institute of Chartered Accountants

ERRITORIAL REPORTSNEWS

The Bahamas Institute of CharteredAccountants (BICA) continues topromotetheaccountingprofessionthrougheducationalseminarsandcol-laborativeeffortswithindustrystakeholders,thegovernmentandregula-toryagencieswithinthecountry.Inthisregard,thefollowingeventswereheldduringtheperiodunderreview.

Continuing Professional Education SeminarsTheInstitutehostedtwoseminarsdesignedspecificallytoupdateaccount-antsandfinanceprofessionalsonlegislativereformsintheinsurancein-dustry, current financial reporting framework and expected changes inthatindustryaswellasnewdevelopmentsinrelationtotaxationissues.

OnAugust 27, an insurance seminar was held at the British ColonialHiltonHotel,whichwas attended by professionals from the insuranceindustryandBICAmembers. Mr.DashwellFlowers,an insuranceex-ecutive,gaveanoverviewoftheinsuranceindustryintheBahamasandMr. Lennox McCartney, Registrar of Insurance Companies spoke on,The Insurance Act of 2005 and Proposed Insurance (General) Regula-tions, 2010.Duringtheafternoonsession,Mrs.AnnieChinafat,Principal,KPMGaddressedthetopic,IFRS 4: Insurance Contracts – Current Fi-nancial Reporting Framework and Expected Changes,andMr.AlgernonCargill,DirectorandChiefExecutiveOfficeroftheNationalInsuranceBoardspokeonEmbracing the Era of Action and Accountability – Un-derstanding your Role.

AtaxseminarwasheldonSeptember29atwhichMs.MelindaSchmidt,DirectorofKPMG,U.S.A. spokeonFATCA: An Overview of the New U.S. Withholding Regime and FATCA: Preliminary Guidance, Recap of Knowns and Unknowns, What’s Next?.Mrs. Samantha Knowles-Pratt,Attorney,HalsburyChamberswrapped up themorning sessionwith apresentationonthetopic,Overview of TIEAs – Current Initiatives, Future Plans and Outlook.During the afternoon session,Mr.L.RyanPinder,MemberofParliament,TaxAttorney,Becker&Poliakoff,P.A.addressedthe topic,Tax Transparency – Legal and Regulatory Framework of the Bahamas andDeloitteManagers -Mr.AnthonySmith andMrs. StacyBrown-Johnson-spokeonQualified Intermediary Audits – An Overview.

TheInstituteincollaborationwiththeBahamasFinancialServicesBoardand other industry partners hosted a one day seminar onCaptive as a Business SolutiononSeptember20.Theseminarwasdesignedtobuildawarenessof theCaptive Insurance Industry in theBahamas. AlanE.Morris Director, Financial Risk Management & Actuarial Services,

KPMGCaymanIslandsspokeonCaptive 101andRonSuliszDirector,StrategicRiskSolution(Cayman)LimitedspokeontheGlobal Captive Market.OthertopicscoveredwereCaptive & Wealth Management Strat-egies,Captive Taxation and Developing a Bahamas Niche.

Business Licence Act 2010TheLegislativeReformCommitteeofBICAwasaskedbytheMinistryofFinancetoreviewtheBusinessLicenceAct2010.AdetailedreportwassubmittedtotheMinistryofFinanceoutliningareastobeclarifiedinordertoenhancepubliceducationandalsoasamatterofregulationandpublicpolicy.

Chinese EmbassyOnSeptember 8, BICAPresident,Mr.ReeceChipman alongwith theInstitute’sExecutiveOfficer,TanyaRahmingpaidacourtesycalltotheChineseEmbassy.TheymettheChiefEconomicOfficerMr.QuanHuoWangandFirstSecretaryMr.Tan Jian. Realizing the importance thatChinawillplayintheBahamianeconomyintheupcomingmonths,anopendialogueonAccountingRegulationsandFinancialReportingandthebenefitsofmutualrecognitionofqualificationswereamongtheissuesdiscussed.

National Career Awareness MonthBICAparticipatedinamonth-longNationalCareerAwarenessinitiative,whichfocusedoncareersinthefinancialservicesindustryandtargetedseniorlevelgradesinpublicandprivatesecondaryschools.ANationalCareerFairwasheldNovember26-29,wherestudentsfromallovertheislandvisitedexhibitsof industryprofessional associationsand regula-torsinthefinancialsector.HundredsofstudentsvisitedtheBICAexhibitandreceivedprintedmaterialonHowtobeanAccountantandthemanycareeroptionsthataccountantscanpursue.MembersfromBICA’sEdu-cationCommitteeparticipatedinthespeakers’circuitthatvisitedvariousschoolstospeakontheaccountingprofessionandhowpersonscanpur-sue a career as an accountant.

Accountants' Week 2010BICA’sAccountants'Week2010washeldovertheperiodNovember14-20underthetheme,Paving the Way Forward - Fostering Transparency and Accountability.TheweekbeganwithachurchserviceatStAgnesAnglicanChurch,followedbyaCPDseminaronNovember14atwhichthekeynoteaddresswasdeliveredbytheGovernorGeneral,SirArthurFoulkes.TopicsaddressedduringtheweekofeventsincludedFinancialReportingforBanks;RevisitingInternalControls;BICA’sEthicalCode;RaisingtheStandardofConductandCompliancewithIFAC;Identifying&Combating Fraud and technical updates. Accountants’Week endedwithaFunRun/WalkandMiniHealthFair.PartproceedsfromtheeventwillbedonatedtotheNationalAidsFoundation.

IASB World Standard SettersOnSeptember 20-21, 2010,BICA’sPresident,Mr.ReeceChipman at-tendedtheIASBWorldStandardSettersMeetinginLondon. Thepur-poseofthemeetingwastoupdateparticipantsoninitiativesoftheInter-nationalAccountingStandardsBoard(IASB).TopicsdiscussedincludedIFRSforSME’sAdoptionandImplementationUpdates,FairValueMeas-urements,RevenueRecognition,EmissionTradingSchemesandXBRLIFRSTaxonomy.

Mr. L. Ryan Pinder, Member of Parliament, Tax At-torney, Becker & Poliakoff addresses participants on the topic, “Tax Transparency – Legal and Regulatory Framework of the Bahamas” during the tax seminar held on September 29


Institute of Chartered Accountants of Belize

ThenewCouncil,whichwaselectedonApril22attheInstitute’sAnnualGeneralMeeting,continuestofocusoneffortstoupdatetheBy-Laws,tomaketheregulationsmorecurrentandmoreim-portantly,toaddressexistingweaknesses.

Three (3) new professional members were admitted inAugustwhichbringstheInstitute’stotalmembershipto55.

The Institutewill bemakingplans tohost its annualChristmasfunction,itsmajorend-of-yearactivityformembers.

Institute of Chartered Accountants of BarbadosTheperiodunder reviewendedona sadnote for thepeopleofBarbados with the passing of Prime Minister the HonourableDavidJ.H.Thompson,onOctober23,2010.OneweeklatertheislandsufferedseveredamagefromTropicalStormTomas.ThePresident,CouncilandmembersofICABweredeeplyapprecia-tiveoftheoutpouringofsupportfrommembersoftheICACdur-ingthatverytryingperiod.

Policy advocacyDuring the month of September, the Institute devoted consid-erable time and resources to the proposed increase in the auditthresholdwhichisbeingconsideredbyGovernment.TheInstitutesought toprovidescholarly,practicaland internationalperspec-tivesontheproposal.

Dr. Jill Collis of Brunel University, UK, who has written andconsultedonthesubject,wasinvitedtoBarbadostobethemainresourcepersonforatwo-dayprogrammeonSeptember22and23,2010.The sessiononWednesday,September22 includedapresentationtothemembersofICAB,theBarbadosInternationalBusinessAssociation(BIBA)andthewiderbusinesscommunity.Ameetingwasalsoheldwith theCouncilsof ICABandBIBAandrepresentativesofDeloitte,KPMG,Ernst&YoungandPWCaswellasapresentationtoGovernmentRegulators.OnThursday,September23,2010ameetingof ICABauditpractitionerswasheld.

InordertoassisttheInstitutetodetermineitspositionontheis-sue, members who attended the presentation on September 22were asked to complete a questionnaire.Additionally, auditorshave been requested to provide information on the impact thatdifferentlevelsofauditthresholdwouldhaveontheirpractices.ICABwillmakea submission toGovernment shortlyoutliningitsposition.

Tax Status of Non-profit OrganizationsTheTaxCommitteeofICABhasbeenworkingonasolutiontotheproblemcreatedbyrecentchangestotheCharitiesActandtheIncomeTaxAct.Thelegislativeamendmentsrevealthatnot-for-profitgroupsthatarenotcharitiesarenotexplicitlycoveredunderthenewlegislation. TheInlandRevenuehasindicatedverballythatitwouldlook"favorably"uponsuchnot-for-profitgroupsandnotimposeatax.However,anissuewillarisewithrespecttoau-dit reports for these entities.Beforeproviding an audit opinionforsuchgroupstheauditorsmustdeterminethetaxationstatusofsuchgroups.Thereisconcernthatintheabsenceofspecificlegis-lationoratleastawrittenopinionfromInlandRevenuethattheremayhavetobeadisclosurethatthosenot-for-profitorganizationscouldbesubjecttotaxation.

TheCommitteewillmakesubmissionsonbehalfofICAB;BIBA;BarbadosChamberofCommerce;theBarbadosHotelandTour-ismAssociation; theTourismDevelopmentCorporationandtheBarbadosManufacturersAssociation

E-FilingTheTaxationCommitteeofICABcontinuestoworkwiththeIn-landRevenueDepartmentonmeasures to improvee-filing.Theanswers to a number of frequently asked questions on e-filinghavebeendeveloped.TheseFAQshavebeenpostedontheICABWebsite for the information and guidance ofmembers and thewiderpublic.

Continuing Professional DevelopmentDuringJulytoOctober,ICABhosted11CPDeventsofferingatotalof79CPDcredithours.Theseminarsfocussedonthefol-lowingtopics:• IFRSforSMEs• PracticeMonitoring• RiskManagementandInternalControls• AdvancedExcel• InternationalFinancialServices• IFRSandISAupdates• TechnologyMatters• ApplicationofTaxTreaties

Public OutreachICAB’sprogrammetoenhanceitsprofileandstrengthenrelationswiththewiderpublicwaspursuedduringtheperiodunderreview.

OnOctober18,2010,ICAB,BAPEandBIA(withsponsorshipsupportfromKPMG)hostedafreepublicseminarattheSavan-nahHotel.PresenterMs.LisaTaylor,AdvisoryServicesPartnerofKPMGBarbados,spokeonthetopic,Public Private Partner-ships – Are they the best way of planning, financing, and imple-menting Government projects.

ICABhasidentifiedtheuseofsocialnetworkingsitesasastrat-egytoreachitsmembersandthewiderpublic.TheICABFace-bookGroupwas launched during September 2010. It has beenveryusefulindisseminatingarticlesofinteresttomembersoftheaccountingprofession;photosofICABevents;detailsofupcom-ingeventsandfacilitatingdiscussionamongmembersonissuesofcommoninterest

ACCA Activities The new President ofACCA,Mr.MarkGold, paid a courtesycallonthePresidentofICAB,AndrewBrathwaiteonOctober5,2010.ICABalsoparticipatedintheACCAawardsandinductionceremonyheldonOctober5,2010attheHilton,Barbados.

ACCAalsohostedaforumonSmallandMediumEntities(SME)onOctober6attheLloydErskineSandifordCentre.

CMA Awards FunctionICABparticipatedintheawardsfunctionhostedbytheCMASo-ciety ofBarbados onOctober 19, 2010.The eventwas held inhonourofSenatortheHon.DarcyBoyceandtopresentawardstostudentsadvancingintheCMAProgramme.


ICAEC Antigua & Barbuda BranchAccountantsWeek 2010was held fromSeptember 26 toOcto-ber22010under thetheme,Accountants - critical in reshaping businesses in a challenging economic environment. The weekcommencedwithachurchserviceat theSt.Andrew’sAnglicanChurchonSunday,September26. OnMonday,September27,membersof theTechnicalandPub-licRelationsCommitteesofICAECAntiguabranchappearedonGoodMorningAntigua onABSTelevision andWakeUpAnti-guaonObserverRadiotoincreaseawarenessoftheInstituteandtheactivitiesorganisedforaccountant’sweek.Otherpublicrela-tionsactivitiesduring theweek included issuingapress releaseregardingtheweekofactivities,announcementofthescholarshipwinnerandarticlesonchoosingaprofession,budgetingandmak-ing endsmeet.These articles focussedonhowaccountants canreshapebusinesses inachallengingeconomicenvironment.Thelistofpracticingaccountantswasalsopublishedinthelocalpressduringtheweek. AMeetandGreetCocktailReceptionwasheldonSeptember29atwhichfournewmemberswereadmittedandpracticingcertifi-catesweredistributedtomembers.OnThursday,September30,aseminarwasheldjointlywithCGACaribbeanonthetopic,Chal-lenges Facing Businesses & Strategies for Successful Business Planning. Seminar presenterwasGregoryE.Hinkson, FCGA,FCA,founderandManagingDirectorofSAMDORServicesLim-ited,anindependentfinancialservicesfirm.

Memberswereencouraged towear their Instituteshirts toworkonFriday,October1and touse theopportunity topromote theInstituteand recruitnewmembers.OnSaturday,October2, theInstitutehostedamoviedayatCaribbeanCinemasasitscharityeventforlessfortunatechildren.GirlsfromtheSalvationArmy-operatedSunshineHomeforGirlsaswellasyoungboysfromthePlannedParenthoodGroupforabandonedchildrenweretreatedtoamoviepartyatthecinemas.

TheAntigua&BarbudaBranchispleasedtoannouncetheawardof its 2010 scholarship to Ms. Kimberly King, an 18-year-oldgraduateoftheAntiguaStateCollege,AdvancedLevelsDepart-ment.Kingwaschosen fromamongsixapplicants.Thecriteriaforselectionincludedthesubmissionofanessayentitled,“Why I want to be an Accountant.”Other criteria includedmatricula-tion at an institutionwhere the applicant is pursuing studies inaccountingorfinanceandtheachievementofanacceptablelevelofacademicperformance.

Chairpersonof thescholarshipselectioncommittee,Mr.MarlonHiggins, in explaining the selectionofKimberleyas thisyear’sawardeepointedoutherconsistentacademicachievements.Kingwas a Lime CXC bronze awardee and recipient of a NationalAward in the2008CXCexaminations.WhilepursuingherAd-vancedLevelstudiesattheAntiguaStateCollege,Kingregisteredfor and successfully sat six papers in the CertifiedAccountingTechnician,CATprogramme,inoneyear.Higginsalsocomment-edonhercommitmenttohercareerchoiceandbeingsufficientlymotivatedtoundertakebothA’LevelstudiesandCATstudiessi-multaneously.

Her interest in theprofessionbeganinfifthformat theAntiguaGirlsHighSchoolfollowingapresentationonaccountingbyrep-

resentativesfromICAECAntiguaandBarbudabranch.

Newly admitted member of the Institute, Jabari Thomas (right), receives his membership certificate from Graham Clarke, CEO, CGA-Caribbean (left) during the Meet and Greet Cocktail Reception held on September 29.

ICAEC Grenada BranchOnOctober14,2010,theInstituteofCharteredAccountantsoftheEasternCaribbeanAgreementAct,2010wasassentedto,thusgiv-ingtheGrenadabranchoftheInstitutelegalstatus.Thebranch’ssteering committee anticipates that by the end of the year 90%ofthequalifiedaccountantsontheislandwouldhaveappliedformembership within the Institute and the first Regional BranchCouncilofGrenadawillbeestablished.

AworkshoponPractice MonitoringfacilitatedbyACCA’sSen-iorPracticeReviewerFaizalAliandPrajeshDamani,alsooftheACCA,washeldonOctober26,2010.Theobjectiveofthework-shopwastosensitiselocalaccountantstotheICAC/ACCAprac-ticemonitoring programme currently being implemented in theregion.Theworkshopcovered:

• thereasonforimplementationofapracticemonitoring programmebyICAEC;• theICAEC'sapproachtoauditregulation;• ACCA'sroleinthepracticemonitoringprogramme;• thescopeofauditmonitoringvisits;• theselectionoffirmsandtheselectionoffilesforreview;• theassessmentofauditworkandthegradingofauditfiles;and• thereportingoffindingstothefirmandICAEC.

ItisexpectedthatallpracticingmembersoftheICAECinGre-nadawillbesubjecttoindependentmonitoringbeginninginthesecondquarterof2011.

ICAEC St. Lucia BranchThebranchhelditsAnnualGeneralMeetingonMay5,2010,andthefollowingofficerswereelectedtoCouncilfor2010-2011:

• AndreaSt.Rose -President• JoanneCooper -VicePresident• MelissaSimon -Secretary• SharonRaoul -Treasurer• Sue-AnnCharlery -Membership• BrendaWilliams• MariaMartinez• JnCharlMiller• JohnniesDescartes

The newCouncil has identified as its priorities the updating oftheregistryofmembersandamembershipdrivetoencouragetheregistrationofnewmembers.Otherstrategicactionsforthecom-ingyearinclude:

• SensitisingthepublicontheroleoftheInstitute• Establishingasecretariat• Creatingsocialandprofessionalnetworkingopportunities

InstituteofCharteredAccountantsofEasternCaribbean


Institute of Chartered Accountants of Jamaica

ICAJ Annual General MeetingTheInstitutehelditsAnnualGeneralMeeting(AGM)onWednes-day,July28,attheKnutsfordCourtHotel.Immediatelyfollowing,theCouncilmetandre-electedArchibaldCampbellasPresidentandVintoriaBernardasVice-PresidentoftheInstitute.TheotherPrincipalOfficerswerePatrickChin,whowasre-appointedTreas-urer, and EthlynNorton-Coke, whowas re-appointedHonorarySecretary.

Other members of Council are Dennis Brown,Martin Gooden,PrunellaVassell,DennisChung,BruceScott,Ann-marieRhoden,GlossieStone,LinroyMarshallandAudleyGordon.

L.GarthKiddoe,aPastPresidentofICAJ,retiredfromCouncil.

Another highlight of theAGMwas a presentation byRaymondCampbell,Chairmanofthe2011ConferencePlanningCommittee,tosensitisemembersaboutplansfortheInstituteofCharteredAc-countantsof theCaribbean’s29thAnnualCaribbeanConferenceofAccountantstobehostedbytheICAJfromJune23to25,2011.

ThefirstquarterwinneroftheICAJWritersCompetition,whichisinitsfirstyear-PatreenaBailey-Green,wasalsorecognisedattheAGM.TheDeputyChairmanoftheInstitute’sCurrentAffairsCommittee,GeoffreyMessado,presentedtheprizeofaplaqueandachequevaluedat$10,000-toJohnWaite,amemberoftheICAJforMrs.Bailey-Green,whowasunabletoattend.

Certified Accounting Technician Graduation CeremonyOnAugust28,ICAJ,jointlywithACCA,hostedthe2010Certi-fiedAccountingTechnician(CAT)GraduationCeremonyinhon-ourof70studentswhoweresuccessful in theJuneandDecem-ber2009sittingsoftheexamination.PaulaMarcelle-Irish,ACCACaribbean’sManagerfortheNorthernRegion,gavetheopeningaddress and the keynote address was delivered byMrs. SharonDonaldson-Levine,GeneralManagerforGeneralAccidentInsur-anceCompany JamaicaLimited.The ceremonywas held at theJamaicaPegasusHotelinKingston.

ICAJ/ACCA Joint Graduation CeremonyTheInstitute jointlyhostedasecondGraduationCeremonywith

ACCAonSaturday,October30,attheJamaicaPegasusHotelinhonour of 65 graduates who successfully completed theACCAprofessionalexamination.

Fivegraduatesandone student receivedawardsduring theCer-emony.GraduatesGeorgiaFrancis andShatornaDavis receivedtheJasperBurnettAward;LatoyaRuddockreceivedtheRaphaelE.GordonAwardwhileLatoyaMaraghandAlerieHullreceivedtheSushilJainAward.StudentAliciaDyerreceivedtheICAJPart1ExaminationAward.

ACCARegionalHeadofEuropeandtheAmericas,RogerActon,brought greetings on behalf ofACCA and the keynote speakerwas the HonourableMr. Bryan Sykes, Puisne Judge, Jamaica’sSupremeCourt.AlsoinattendancefromACCAwereBrendaLeeTang,ACCACaribbean’sHead ofCorporateDevelopment, andPaulaMarcelle-Irish,ACCAManagerfortheNorthernCaribbean.

Continuing Professional Development SeminarsDuringthereportingperiod,CPDactivitiesincludedaforumonInternationalFinancialReportingStandards(IFRS)andanotherontheEconomicPartnershipAgreement,aswellastwoseminars,oneofwhichwasheldjointlywithACCA.

The forum – International Financial Reporting Standards for Small and Medium Sized Entities (IFRS for SMEs)-washeldonOctober27attheJamaicaPegasusHoteltoupdateAccountantsonchanges in IFRS.AlokJain,PartneratPricewaterhouseCoopers,gaveanoverviewofIFRSforSMEswhileLinvalFreeman,Part-neratErnst&Young,gaveanoverviewoftheadoptionofIFRSforSMEswithintheJamaicancontext.

Thesecondforum,Importance of the Economic Partnership Agree-ment (EPA) to Professional Services Suppliers, was considerednecessaryfortheaccountingandfinancesectorswithinthecontextofEurope’splantoshortlyimplementthetermsoftheEPA.Twomainareasoffocuswerewaystoorganisenationallyandregion-ally inorder to takeadvantageof theEPAandopportunities forprofessional services providers in the EuropeanUnion.MakingpresentationswereNatallieRochester-King,TechnicalAdvisorattheCARICOMSecretariat;MaxineHarris,ConsultantinInterna-

Institute of Chartered AccountantsofGuyana

Audit and Quality Control Standards SeminarTheInstituteofCharteredAccountantsofGuyana(ICAG)hostedaseminar formembersonAuditandQualityControlStandardsduringSeptember.Theseminarexaminedareasforimprovementas reported by theACCAPracticeReview team andwaswell-attendedbypracticingmembersandstaffofpracticingfirms.TheseminarwasconductedbyRameshwarLal,SeniorPartner,TSDLal&Co.andLeslieVeerasammy,Partner,NizamAli&Co.

New Public Disclosure Proposals TheInstitutecontinuedtoactivelyengagetheBankofGuyanaontherefinementofnewpublicdisclosureproposalsthatareunder

consideration.Thenewdisclosurerequirementswillbeapplica-bletoallfinancialinstitutionslicensedinGuyana.TheBankofGuyana is the primary regulator of financial institutions in thatcountry.

Corporate Governance Code for GuyanaTheInstituteispartofacollectiveofstakeholdersthatiswork-ingon thedevelopmentof corporategovernancecode forGuy-ana. During this quarter, therewas significant advancement inthedevelopmentofthecodewithtwoextensiveworkshopsbeingconducted.ThisinitiativeisbeingpursuedaspartoftheNationalCompetitivenessStrategyforGuyana.

OnSeptember8,2010,aCPDworkshopwasheldincollaborationwithICACandCGA-CaribbeanonIFRS Updates & Strategies

for Successful Business Planning.ThiswasthefirstoffourCPDeventstobeorganisedbytheInstitutefortheyear.


tionalTradeandDevelopment;andRobertWoodstock,ImmediatePastPresidentoftheAssociationofCommonwealthSocietiesofArchitectsintheCaribbean.TheforumwhichwasheldonAugust17attractedapproximately120persons.

AjointICAJ/ACCACPDseminarentitled,Forensic Accounting/Fraud Prevention,washeldonOctober30.NaginLadd,TrainerinForensicAccountingintheUnitedKingdom,presentedonthetopic, ForensicAccounting; Sergeant Carl Berry of the Organ-isedCrimeInvestigationDivision, spokeon the topic,FinancialCrimesandBerdieDixon-Daley,Directorof IntelligenceforFi-nancialInvestigationsgaveapresentationontheImplications of

the Proceeds of Crime Act (POCA) for the Accountant.

Taxation Compliance Measureswasthethemeofataxationsemi-narheldonSeptember8whichexaminednewtaxmeasuresandguidelinesrecentlyintroducedbytheJamaicangovernment.Taxexperts, Ethlyn Norton-Coke, Legal and Compliance Officer attheUniversity ofTechnology; JacquelineMurray,TaxManageratKPMG;DenzilWhyte,GroupTaxationandRegulatoryReport-ingManagerintheNationalCommercialBank’sFinancialCon-trolDivision;andBrianDenning,TaxPartneratPricewaterhouse-Coopersdeliveredpresentationsattheseminar.

ICATT Fun Day 2010 Accountants, finance professionals, students and their familiesbraved the rains on July 17 to participate in ICATT’sFunDay.Over300personswereinattendance.Theday’sactivitiesincludedwindball cricket, all fours raceeventsandkaraoke.CompetitorsincludedErnst&Young,KPMG,PricewaterhouseCoopers,Omar-deen’sSchoolofAccountancy,SAC&WaterandSewerageAu-thorityofTrinidad&Tobago(WASA).WASAwastheday’smainwinnerastheycapturedtheallfourscricketandkaraoketitles.

40th Anniversary CelebrationsICATTcelebrated its 40thAnniversaryonOctober14th&15thwithaoneandahalfdayseminarunderthetheme,Governance and Transparency: Back to Basics at theHyatt RegencyHotel,PortofSpain.Theseminarattractedover200participantsaswellasinternational,regionalandlocalpresenters.

TheanniversarycelebrationsculminatedwithagalabanquetonOctober 15, whichwas attended by over 300 guests. Four per-sonswerehonouredfortheircontributiontotheInstituteandthedevelopmentofTrinidadandTobagoinvariouscapacities.TheywereMr.BernardDulal-Whiteway,ICATTmemberandbusinesspioneer (posthumoushonour);Mr.HermanMarcanoSr., ICATTmember and local accountancy education pioneer (posthumoushonour);Mrs.AngelaLeeLoy, aPastPresident of ICATT,firstfemale President of theICAC and Chairpersonof theNationalAidsCo-ordinating Committee(NACC) and Mr. Ram-ganieBobGopee,formerICATT Council mem-ber and founder of theBob Gopee Foundation.ICATT’s past presidentswere also recognised attheevent.

Stakeholder EngagementInOctober,ICATTmetwithrepresentativesfromErnst&Young;KPMG; PricewaterhouseCoopers; PKF Chartered Accountants& Business Advisors; Deloitte & Touche; KPMG; BDO andMontanoRamcharitar CharteredAccountants, a full independentmemberofBakerTillyInternationaltodiscusstheestablishmentofICATT’sForumofFirms.TheForumofFirmsis intendedtoprovideamechanismwherebyfirmswithinternationalaffiliationsoperatinginTrinidad&Tobagocanhaveaforumtodiscusstheirunique concerns with ICATT. This is in keeping with ICATT’sthrusttofostergreaterstakeholderrepresentation.

Continuing Professional Development InJuly,ICATTandACCAhostedajointCPDseminaronthetop-ic,Critical Thinking.PresenterwasNazeerSultan,aperformanceconsultantandcoachbasedinTrinidad.NazeerisalsoaManagingDirectorofDelta55-acompanydedicatedtobuildingorganiza-tionalprocessesandcapabilitiesbasedonkeytriggersofhumanperformancesuchasindividualmotives,strengthsandgenius. Membership UpdateDuringtheperiodJulytoOctober2010,sixteen(16)newmem-bers joined the Institute.Thisbrings thenumberofmembers toapproximately990.

of ofInstitute Chartered Accountants Trinidad andT obago

ICATT Past President, Michael Mansoor (at podium) raises a toast to past presidents of ICATT during the gala banquet held at the Hyatt Regency Hotel on October 15.

T


REGIONALEVENTScont'dfrompg.7This was presented by Oral Dowell, CharteredAccountant andCEOofDowell’sAdvisoryServicesInc.,whoprovidedathought-provokingreviewonhowbusinessesoperateintheCaribbean,andstrategiestoensuretheviabilityandsuccessofthesebusinessesinlightofglobalchallenges.

• ICAC Meets with Executive of newly-elected ICAEC St. Lucia Council OnSeptember 8, the ICAChad an opportunity tomeet and in-teractwiththeExecutiveOfficersofthenewCouncilofICAECSt.LuciabranchelectedinMay2010.Themeetingwasheldim-mediately following the CPD Seminar jointly hosted by ICAC,CGA-CaribbeanandICAECStLuciaattheBayGardensHotel,RodneyBay,St.LuciaandispartoftheICAC’songoingeffortstostrengthenlinkageswithitsmemberinstitutes;toupdatememberinstitutesabouttheinitiativesoftheICACandtoalsohearhowICACcanbetterserveitsmemberbodies.

The ICAC was represented by President, Harryram Parmesar;

Secretary, Frank V. Myers and Chief Executive Officer, MishaLobban.TheExecutiveOfficersoftheICAECSt.LuciaCouncil,whichcomprisedJoanneCooper,VicePresident;MelissaSimon,SecretaryandSue-AnnCharlery-Payne,MembershipCommitteeChair,outlinedtheplansandinitiativestobeundertakenoverthenexttwoyears.TheCouncilintendstofocusonprovidingcontinu-ingprofessionaldevelopment(CPD)opportunitiesforitsmembersaswellasinitiativesaimedatencouragingincreasedmembershipinvolvement in the local instituteand in thedevelopmentof theaccountancyprofessioninSt.Lucia.

TheICACPresidentcongratulated thenewCouncilon itsplansandpledged the support of the ICAC inhelping to advance thegoalsandobjectivesoftheCouncil.HealsoprovidedanupdateonICACinitiativesincludingtheRegionalPracticeMonitoringPro-grammewhichrecentlycommencedintheEasternCaribbeanandtheproposalfortheprovisionoftechnicalauditsupportservicestoSmallandMediumPractices(SMPs)intheregion,whichisbeingofferedbyMichaelScottofPCPLimitedintheUK.

World Congress of Accountants 2010 Opened with Record Number of Delegates The 18thWorld Congress ofAccountants (WCOA) opened onNovember8withtheparticipationofarecord-breakingnumberof6,000distinguisheddelegatesfrom134countries.

The Congress, which originated in 1904 and has been heldregularly since 1977, was jointly organised by the MalaysianInstituteofAccountants(MIA)andtheInternationalFederationofAccountants(IFAC).ItwasofficiatedbytheMinisterinthePrimeMinister’sDepartmentTanSriNorMohamedYakcoponbehalfofthePrimeMinisterDatukSeriNajibTunRazak.

Themed“Accountants: Sustaining Value Creation,”theCongress,whichwasheldinMalaysiaforthefirsttime,broughttogether183eminentspeakersfromover40countries,whoexploredissuesthataffecttheaccountancyprofessionandprovidedconcretesolutionstoovercomethechallengesfacedbytheindustry.Thekeyissuesdiscussedincludedaccountingethics,governance,standards,anddevelopmentoftheaccountingprofessionaswellasInternationalFinancialReportingStandards(IFRS)convergence.

International Federation of Accountants Announces Göran Tidström As Its New PresidentTheInternationalFederationofAccountants(IFAC)announcedonNovember5at itsCouncilmeeting inKualaLumpur,Malaysia,the appointment ofMr.GöranTidströmofSweden asPresidentofIFACforatwo-yeartermendinginNovember2012.TheIFACCouncilalsoapprovedthenominationofMr.WarrenAllenofNewZealandfordeputyPresident.

A European representative to IFAC since 2000, Mr. TidströmbecameamemberoftheIFACBoardin2003,servedaschairofthePlanningandFinanceCommitteeandisamemberoftheIFACRegulatoryLiaisonGroup.Mr.Tidströmhasmorethan30yearsof experience as a public accountant with PWC in Stockholm,Sweden,whereheisaseniorpartnerandformerchair.

Mr.Allenwillserveasdeputypresidentforatwo-yearterm,andalsotakestheroleofchairofthePlanningandFinanceCommittee.

AnIFACBoardmembersince2006,Mr.Allenhasbeeninvolvedwith IFAC in numerous roles, including as chairman of theEducation Committee (now called the InternationalAccountingEducationStandardsBoard)from1998to2004andasamemberoftheNominatingCommitteefrom2006to2009.HeisaresidentofNewZealandandisapartneratErnst&Young.

IFAC SMP Committee Publishes Quality Control Implementation GuideThe Small and Medium Practices (SMP) Committee of theInternational Federation of Accountants (IFAC) has issued thesecond edition of its Guide to Quality Control for Small andMedium-sized Practices (QCGuide).The implementation guideis intended to help SMPs understand and efficiently apply theredrafted International Standard on Quality Control (ISQC) 1,Quality Control for Firms that PerformAudits and Reviews ofFinancialStatements,andOtherAssuranceandRelatedServicesEngagements. The new edition conforms to the revised andredraftedCodeofEthicsforProfessionalAccountantsandincludesimprovementsbasedonfeedbackfromusersofthefirstedition.Itfeaturesanintegratedcasestudy,somechecklistsandforms,andtwosamplequalitycontrolmanuals.

IFAC thanks the Certified General Accountants Association ofCanada(CGA-Canada)forproducingtheQCGuidefreeofchargeandtheglobalpanelofreviewersforvolunteeringtheirtimeandeffort tohelpwith itsdevelopment.ThePDFversionof theQCGuide can be downloaded without cost from the PublicationsandResourcessectionoftheIFACwebsiteathttp://web.ifac.org/publications/small-and-medium-practices-committee.

TheIFACSMPCommitteeinvitesreaderstovisititsInternationalCenterforSmallandMediumPractices(www.ifac.org/smp),whichhostsacollectionoffreeIFACpublicationsandrelevantlinkstoresources from IFAC member bodies and other organizations,including a category devoted to implementing internationalstandards.

LOBAL ACCOUNTANCY UPDATEGLOBAL NEWSG


considerationallocated.Italsorequiresanentitytoallocaterevenuein an arrangement using estimated selling prices of deliverables ifavendordoesnothavevendor-specificobjectiveevidenceor third-party evidenceof sellingprice.Theguidance eliminates theuseofthe residualmethod, requires entities to allocate revenue using therelative-selling-pricemethodandsignificantlyexpandsthedisclosurerequirements for multiple-deliverable revenue arrangements. TheapproachtakeninASCUpdateno.2009-13isbasicallythesameastheapproachrevealedinFASB’spreliminaryviewsdocumentforitsjointrevenuerecognitionprojectwiththeIASB,accordingtoAICPAAccountingStandardsExecutiveCommittee(AcSEC)ChairmanJayHanson,whoisalsoamemberoftheEITF.

Financial Statement PresentationFASBandtheIASBhaveundertakenthelargestrevampoffinancialstatementseverconducted ina single step.Thework isbeingcon-ductedinthreephases.TheboardscompleteddeliberationsonPhaseA inDecember 2005, and onSept. 6, 2007, the IASBpublished arevisedversionofIAS1,PresentationofFinancialStatements, thatbroughtIAS1largelyinlinewithFASBStatementno.130,Report-ingComprehensiveIncome.OnOct.16,2008,bothboardspublishedadiscussionpaper,PreliminaryViewsonFinancialStatementPres-entation,inwhichtheysetouttheprinciplesforpresentingfinancialstatementsinamannerthatportraysacohesivefinancialpictureofanentity’sactivities,disaggregatesinformationsothatitisusefulinpre-dictingfuturecashflows,andhelpsusersassessanentity’sliquidityandfinancialflexibility.TheboardsplantopublishanEDinthefirstquarterof2010thatproposes toeliminateanoptioninU.S.GAAPand IFRS that allows entities to present some components of totalcomprehensiveincomeeitherinaseparatestatementordirectlyineq-uity.Inthesecondquarter,theboardsplantopublishacomprehensiveEDonfinancialstatementpresentation.Tentativedecisionsinclude:

• A complete set of financial statements for a reporting periodshouldincludeastatementoffinancialposition;astatementofcom-prehensiveincome;astatementofchangesinequity;andastatementofcashflows.Inaddition,eachfinancialstatementshouldbeshownwith equal prominence, and aminimumof twoyears’ comparativeinformationisrequired.• The proposed financial statements are intended to help predictcashflows forequityvaluation.These statements shift focusfrom net income to total com-prehensive income, as all othercomprehensiveincomeitemsarenowpresentedonthefaceofthestatement.• Theboardsdecidedthat thefinancial statement presentationproject should not seek to alterexisting standards relating towhat items are recognized out-side of profit or loss. Becauseofthatstance,existingguidanceremainsunchangedonpresenta-tionofothercomprehensive in-come(OCI)itemsinastatementof comprehensive income andontherecyclingmechanism.• TheproposedformatofthecashflowstatementissimilartoFASBStatementno.95,Statement of Cash Flows,andIAS7,Statement of Cash Flows,withtwomajorchanges.First,thenotionofcashequiva-lentsisscrapped.Inaddition,cashflowwillbepresentedinthedirectmethod.• Theboardstentativelydecidedtoreplacethereconciliationsched-uleproposedinthediscussionpaperwitharequirementtoanalyzethechangesinbalancesofsignificantassetandliabilitylineitems.

LeasesThe stated objective of this project is to ensure that the assets andliabilitiesarisingfromleasecontractsarerecognizedoncompanies’balancesheets.OnMarch19,2009,theboardspublishedforpubliccommentadiscussionpaper,Leases:PreliminaryViews.Theyplantopublishanexposuredraftinthesecondquarterof2010.

Lessee accounting. The boards tentatively decided to adopt an ap-proachtolesseeaccountingthatwouldrequirethelesseeinallleasestorecognize:• Anassetrepresentingitsrighttousetheleaseditemfortheleaseterm(measuredinitiallyatitsfairvalue,whichmaybeestimatedus-ingtheleasedproperty’sfairvalueoranestimateofthevalueoftheleaseobligationbasedonapresentvalueoftheleasepaymentsdis-countedatamarketrateforsimilarliabilities).• Aliabilityforitsobligationtopayrentals(measuredinitiallyatapresentvalueoftheleasepaymentsthatapproximatesthefairvalueoftheliability).

This differs from the current U.S. GAAP model, which separatesleases into capital leases, which recognize an asset and a liability,andoperatingleases,whichdonot.Undertheproposednewmodel,allleasesexceptthosethatrepresentthepurchaseorsaleofanitemwouldresultinassetandliabilityrecognition.Inaddition,subsequentincomestatementswill report interestcostsanddepreciationof theasset,thesumofwhichwillbedifferentfromthecashpayments.

Lessor accounting.Theboardstentativelydecidedtoadopttheper-formance obligation approach to lessor accounting.Under that ap-proach,alessorwould:

• Recognize an asset representing its right to receive rental pay-ments(aleasereceivable).• Recognizealiabilityrepresentingitsperformanceobligationun-derthelease—thatis,itsobligationtopermitthelesseetherighttouseoneofitsassets(theleaseditem).Thelessorwouldrecognizerevenueas thatperformanceobligation issatisfiedover the lease term.Thatmeansthatalessorwouldnotrecognizerevenueattheinceptionofaleasecontract.

1 FASBpublishing singleED and standard to cover classification andmeasurement, impairment and hedgeaccounting. IASB publishing each separately and published IFRS 9 on classification andmeasurement inNovember2009.2TheIASBpublisheditsED,December2008.3TheIASBpublisheditsED,March2009.FASBismonitoringtheIASBprojectandasofpresstimehadnotprovidedanupdatedscheduleforitsproject.4TheQ1EDproposestoeliminateanoptiontopresentsomecomponentsoftotalcomprehensiveincomeeitherinaseparatestatementordirectlyinequity;theQ2EDwillbeacomprehensiveexposuredraftonfinancialstatementpresentation.Sources:“FASBandIASBReaffirmCommitmenttoMemorandumofUnderstanding:AJointStatementoftheFASBandIASB,”Nov.5,2009,tinyurl.com/y9wdbrlandprojectschedulespublishedontheboards’respec-tiveWebsites,fasb.organdiasb.org.

Countdown to Convergence cont'dfrompg.11

Exhibit 1: Memorandum of Understanding Priority Project Plan

2009 2010 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Financial instruments1 ED ST ST

Impairment ED CD ST Hedging ED ST

2 ED ST, ST 3 ST

ED, ED ST, ST Financial statement presen 4 ED, ED ED, ED ST, ST Leases ED, ED ST, ST

ED, ED ST Fair value measurement guidance ST Legend: Red type – FASB; Blue type – IASB; ED – Exposure – Comment Deadline; ST – Final Standard