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On October 6th, 2007 the Financial Accounting Commission (FAC) met in Madrid. The meeting was attended by Bertrand Allard,
Henning Strom, Rolf Rundfelt, Friedrich Spandl, Rainer Husmann, Hugo Haarbosch, Ivano Mattei and Javier de Frutos.
The Agenda was covered as follows:
1. Update on EFRAG
Javier informed members that following his presentation at the last AGM, EFFAS Board decided to reinitiate funding to
EFRAG with up to ˆ25.000. Mr. Fritz Rau would inform and take up this decision to EFRAG SB Chairman, Goran Tidstrom.
Javier also noted that several national societies expressed their interest of having a greater communication level with
FAC particularly in issues related to EFRAG. It was agreed to send updates periodically and it was discussed about
the possibility of members visiting selectively national societies.
Regarding EFRAG Users’ Group, Fried Spandl reported that at the last meeting most of the technical discussion was
related to Insurance Contracts pointing out those different views arising among users’. He particularly noted the
different views related to contract recognition at inception. This point which was included in the Agenda it was
furthermore discussed by the commission.
2. IFRS Segment Reporting
Bertrand Allard, a SFAF member, reported to the commission about French analysts’ uneasiness with the recent European
Parliament endorsement of IFRS 8 Segment Reporting. He noted that given the reporting management approach of IFRS 8,
reconciliation at each segment level should have been included. He added that SFAF was contemplating sending a letter
to the European Parliament stating their position.
The FAC had already addressed this issue in the meeting held in June and a letter and questionnaire was sent to the
European Commission.
3. Insurance Paper Contract
The commission decided to comment on a Discussion Paper on Insurance Contracts issued by the IASB. Regarding
the discussion on this topic, Carsten Zielke a German senior insurance analyst and member of EFRAG TEG joined
the session by conference call, as he had prepared a paper on the issue which was also reviewed.
The letter send to the IASB on November 16-2007 reflected commission’s view and the points addressed during
the meeting. Carsten paper was also included in the letter. A copy of the letter was circulated to members on November 18.
4. XBRL and CRUF
Javier briefed members on a request that the commission participates more actively in providing input about
XBRL utilization by analysts. Most members however noted that the majority of analysts in theirs constituencies
were unfamiliar about the utilization of XBRL. Javier will continue exploring about the commission involvement
in this issue.
Regarding CRUF Javier noted that apparently EFFAS has not made any commitment to become a member of CRUF,
particularly since analysts become members on an individual basis. Javier will continue looking into the
convenience of joining this private sector group focusing on commenting on major financial issues from an users standpoint.
5. Others
The commission decided to hold next meeting in London on January 18, 2008 and to meet in June-2008 in Paris
at the same date that EFFAS AGM. Final dates for 2008 meetings will be agreed in London.
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