• Mazars firms in China and Hong Kong have launched a joint tax department in Shanghai as part of a plan to establish a Mazars Greater China tax practice. The tax department will offer tax advisory, tax compliance, transfer pricing and customs services. It will also support other departments, notably in covering tax-related aspects of due diligence and audit assignments, and provide expertise in relation to tax filing carried out by outsourcing teams.
• The Financial Reporting Standards Council (FRSC) in the Philippines has approved for domestic use the adoption of International Financial Reporting Interpretations Committee (IFRIC) Interpretation 16, Hedges of a Net Investment in a Foreign Operation. The interpretation applies to an entity that hedges the foreign currency risk arising from its net investments in foreign operations and that applies hedge accounting in accordance with IAS 39. It does not apply to other types of hedge accounting.
The FRSC said the main change in practice will be to eliminate the possibility of an entity applying hedge accounting for a hedge of the foreign exchange differences between the functional currency of a foreign operation and the presentation currency of the parent’s consolidated financial statements.
• Kreston International has admitted a new member firm in Australia. Miles is a specialist corporate advisory firm dealing only in M&A, disposals and capital raising. The firm has 11 employees and last year advised on transactions with an aggregate value of $560 million.
• The introduction of an Australian Carbon Pollution Reduction Scheme in 2010 will require a whole new discipline of carbon accounting with more regulation and compliance for business, according to Crucible Carbon managing director Matthew Warnken.
Crucible Carbon works with businesses striving to become carbon neutral while maintaining their efficiency and developing a competitive advantage.
Warnken said: “The complexity involved in carbon accounting can be likened to accounting on steroids. While this is not good news for businesses already weighed down with compliance paperwork it can be turned to their advantage. There is a lot of waste in the energy usage and material inputs of Australian businesses as currently there is no embedded cost of carbon. Now there is a scheme that will rectify this.
“As we all know, innovation is borne of constraint and businesses have a real opportunity to be ‘carbon ready’ sooner than competitors.”
• The Accounting Professional and Ethical Standards Board of Australia has issued the standard APES 210 Conformity with Auditing and Assurance Standards to replace APES 410 Conformity with Auditing and Assurance Standards.
APES 210 will be effective from 30 September 2008. The board has also published a consultation paper on a review of miscellaneous professional statement APS 12 Statement of Financial Advisory Service Standards.
Africa, Middle East, South Asia
• Dubai chartered accountant firm Shrichand Shroff has been admitted as a member of Enterprise Network Worldwide. Shrichand Shroff was established in 1981 and provides a full range of financial and accounting services, including audit, business valuations, fraud examinations, project feasibility reports and computer-based business consulting.
International director of Enterprise Network Worldwide Adelaide Ness said: “UAE is one of the fastest growing regions of the globe and having a trusted, competent firm in Dubai is simply a must. We know that Shrichand Shroff will be a very important member of Enterprise Network Worldwide.”
• The Institute of Chartered Accountants of India (ICAI) has published an exposure draft of revised accounting standard AS 3, Statement of Cash Flows to bring it into line with the corresponding IAS 7.
The revised draft will require more disclosure and contains specific treatment for various items such as bank overdrafts and cash flows from changes in interests in a subsidiary that do not result in a loss of control.
The revision also differs from IAS 7 as it removes the alternative to classify the interest paid, interest and dividends received, and dividends paid as an item of operating activity. The deadline for comment is 10 November 2008.
• The Committee for Auditing Standards of South Africa has issued a revised practice statement, which has been approved by the Independent Regulatory Board for Auditors. The statement SAAPS 2, Financial Reporting Frameworks and Audit Opinions, reflects amendments made to the Companies Act No. 63 1973 as occasioned by the Corporate Laws Amendment Act No. 24 2006, which became effective on 14 December 2007.
• Fifteen employees of the National Audit Office (NAO) of Tanzania have become Certified Public Accountancy graduates. The NAO’s Controller and Auditor General Ludovic Utouh said that the office had recently taken steps to train its workers at levels equivalent with the requirements of the new Public Audit Act.
• Two African students have been awarded Association of Chartered Certified Accountants (ACCA) scholarships. Farida Asgerali of Tanzania and Chipambamiso Chongo of Zambia were chosen out of a pool of 300 students following the results of exams and essays.
Bangladeshi student Sharon Chiyangwa was also awarded the scholarship. The winners will receive financial support for a maximum of five years and ACCA study materials.
• The Committee of European Securities Regulators has released for comment a recommendation to the EC to allow Indian issuers to use Indian GAAP when accessing EU markets.
The commission said it considered it appropriate to allow the same two-year transitional period to India it had offered other third-country issuers who are also preparing their annual and half-yearly financial statements in accordance with a GAAP that is converging to IFRS, provided certain conditions are met.