FRC’s asset-ceiling proposals for DB sponsors draw mixed reactions

first_imgHowever, speaking in support of FRED 55, Aon Hewitt accounting specialist Martin Lowes said: “This strikes me as a very sensible departure from IFRIC 14, and they have clearly taken a pragmatic approach within the spirit of simplifying GAAP for smaller companies.”FRS102 is a simplified and localised version of the IFRS for SMEs.It takes effect for accounting periods beginning on or after 1 January 2015 and replaces the majority of today’s UK Financial Reporting Standards and UITF Abstracts.In effect, this means the majority of UK and Irish large and medium-sized entities – among them public benefit entities, retirement benefit plans and financial institutions – will apply the new standard.The source of the dispute between the experts are proposals in FRED 55 that the FRC hopes will address concerns over whether or not an entity that applies FRS102 should have regard to the principles in IFRIC 14.IFRIC 14 is a guidance document issued by the IASB in 2007.It deals with the interaction between a minimum funding requirement and the restriction in paragraph 58 of IAS19 on the measurement of the DB asset or liability.FRED 55 would kick in where an entity reports under FRS102 and has already booked a DB asset or liability on its balance sheet.As the proposals stand, an entity in that position would need to recognise no further liability in respect of an agreement to pay future deficit contributions (in excess of the accounting deficit) under a schedule of contributions.In addition, on a separate issue, FRED 55 confirms that entities should recognise the effect of restricting the recognition of surplus in a DB plan, where surplus is not recoverable, in other comprehensive income and not in profit and loss.The FRC has issued a number of editorial amendments and clarifications to FRS102 since it released the new standard on 14 March 2013.Entities that are not required to apply EU-endorsed IFRS, the FRS101 Reduced Disclosure Framework or the FRSSE must apply FRS102.Explaining the impact of the FRED 55 approach against full IFRS, Martin Lowes told IPE: “The FRC has proposed a few extra words to bring about some clarity.”The UK regulator, he said, has “clarified that if you have promised to pay future deficit contributions, you don’t need to look at whether you will build up a surplus in the future and then look at whether you can get benefit from that future surplus.”Instead, he said, DB sponsors “just need to look at whatever the pension surplus or deficit is at the balance sheet date”.But this clarification, Narayan Peralta argued, runs the risk of creating accounting arbitrage between FRS102 and IAS19R/FRS101.“This is unfortunate, as, faced with the option between FRS101 and FRS102, there is now a ‘pensions arbitrage’ if an entity faces no other material differences between the standards,” he said.Choosing FRS102, he explained, “could leave them with a significantly better balance sheet position”.For IFRS reporters who recognise an additional liability under IAS19, Peralta went on, “there will be a GAAP difference to their statutory accounts”.The FRC has previously said one of FRS102’s objectives is to “have consistency with international accounting standards through the application of an IFRS-based solution unless an alternative clearly better meets the overriding objective”.Practice around the asset ceiling in pensions accounting has gained added urgency since May this year, when the IFRS Interpretations Committee (IFRS IC) began looking at the issue.Specifically, the committee is mulling changes to IFRIC14 that could restrict the size of the balance-sheet asset a DB sponsor is able to recognise on its balance sheet asset. A constituent has asked the committee to consider whether preparers should take account of events that might disrupt the plan unfolding in line with the IAS19 assumptions when they apply IFRIC 14.An example would be the trustees of a DB scheme whose future actions could reduce the ability of a sponsor to recognise an asset, even though they might have taken no steps to do so at the entity’s balance sheet date.Neil Crombie, a senior consultant with Towers Watson, said: “We are surprised by the FRC’s decision to adopt the approach it has with FRED55 in that we would probably have expected an approach more consistent with the direction of travel on IFRIC 14.”As for concerns about accounting arbitrage, he said although he agreed there was now potential for inconsistency between IFRS and FRS102, “any decision to go for UK GAAP over IFRS will come down to a lot more than just pensions”.Interested parties have until 21 November to comment on the proposals.If adopted, the amendments will be effective for accounting periods beginning on or after 1 January 2015. The UK Financial Reporting Council (FRC) has issued proposals for public comment it hopes will clarify how defined benefit (DB) plan sponsors will account under UK and Irish Generally Accepted Accounting Principles (GAAP).In a statement, Roger Marshall, FRC board member and chairman of the FRC’s accounting council, said: “The proposed amendments are intended to resolve uncertainty over the application of FRS 102 in a proportionate and practical manner before FRS 102 becomes mandatory.”But expert practitioners who spoke to about the move gave the proposals, referred to as FRED 55, a mixed reaction.In particular, KPMG director Narayan Peralta warned that the move risked accounting arbitrage between FRS102 and International Financial Reporting Standards (IFRS).last_img read more

South African business and arts support charity

first_imgJanine ErasmusWell-known musician Mike McCullagh, formerly of McCully Workshop, is bringing business and the arts together to support local charities, with the result that everyone ends up on the winning side.Over the past ten years the passion and dedication of this respected performer has seen more than R8 million raised for organisations such as the Heart Foundation, the Cancer Association and Reach for a Dream – the latter foundation benefited to the tune of R100 000 from just six shows.Now McCullagh is busy working on his forthcoming production for the Heart Foundation and the Cape Times Fresh Air Fund, which for over 70 years has provided holiday camps for underprivileged children. The show takes to the stage in March 2008 and will play for three months, and McCullagh is encouraging South African business to get involved, as his goal is to eventually raise half a million rand for each beneficiary.Organisations such as BASA (Business and Arts South Africa) work hard to encourage the private sector to enter into sustainable partnerships with the arts sector. There are many worthy reasons for doing so – job creation, urban regeneration, nation-building, education, preservation of cultural heritage, philanthropy.Sponsorship of the arts is cheaper and less cluttered than sport, says marketing expert Annie Williamson, director at Maverick Marketing, and if leveraged correctly can deliver beyond expectations.As venerable actor John Kani said in his address at the Business Day/BASA Awards in 2006, “You [business] give us your money and we give you back your humanity.” McCullagh’s venture is making the most of this concept, and the sponsor, the artists and the charity all find themselves sharing the first prize.This is because it’s not just about giving charities a helping hand, explains the musician – it’s also about giving young musicians a chance, which holds positive implications for South Africa’s music industry. McCullagh feels strongly about the ongoing trend among local record companies to plough money into overseas artists rather than to invest more in the local music scene.“South Africa has so much undiscovered talent, and not everyone is lucky enough to land a record deal or even get the chance to perform for an audience. Record companies spend millions on promoting overseas artists, but spend far less on our own musicians. Musicals are imported to South Africa, often at huge cost – this is not necessarily a bad thing, but as a result our own efforts are often overlooked. People are simply loath to stick their necks out and support local talent. This is unacceptable.”Uncovering new talent, maintains McCullagh, is even more important in light of the 2010 FIFA World Cup, now just two and a half years away, because local talent deserves the chance to shine for the hundreds of thousands of visitors who will be in South Africa for the event – but they need to be nurtured now.Corporate social investment, marketing and talent development are addressed simultaneously in McCullagh’s musical venture. He feels that there are many instances where companies could consider a more creative approach to marketing themselves. This would fall in line with the growing trend, according to BASA, of viewing sponsorship not so much as a marketing cost but as a profitable investment, and considering areas other than sport.For instance, says McCullagh, the hundreds of thousands of rand for a one-off full-page full-colour newspaper ad could reap huge dividends if diverted into initiatives such as the arts. “With that money we could take a show to ten towns, putting on two shows per town, and ten charities would benefit – they work so hard to raise funds! The sponsor’s name would be seen over a prolonged stretch of time in a positive light by thousands of people on a one-on-one basis. That kind of exposure is invaluable.”With an estimated three million patrons having seen his shows over the years, Mike McCullagh speaks from vast experience. He has taken his productions all over South Africa as well as to Zimbabwe and Namibia.A founding member (with his brother Tully) of the successful 1970s rock band McCully Workshop, McCullagh was responsible for composing such massive hits of the time as “Buccaneer” and “Chinese Junkman”. Not content to sit on his laurels after McCully Workshop disbanded in 1985, he turned his focus to musicals and soon found himself receiving requests from organisations to use his shows as fundraising opportunities. “I started seriously with this initiative in about 1996. So far I’ve focused mainly on the Western Cape and also Port Elizabeth. I haven’t done much in Johannesburg, actually, because I’m more known in Cape Town and there’s more than enough here to keep me busy!”McCullagh has directed many popular musicals since 1988, most notably Tribute To Bob Dylan, Beatlemania, Station 70, Sixty Something, Eighty Something and Milestones To The Millennium. He pioneered the tribute show format with his Bob Dylan production, followed by a tribute to Elvis. His 2006 Myths and Legends show, featuring a host of talented musicians and the award-winning choir from Fezeka Senior Secondary School in the township of Gugulethu, played last year in Cape Town to great acclaim.Useful linksMike McCullaghBusiness and Arts South AfricaReach for a DreamThe Heart Foundationlast_img read more

A Decade Of iTunes: Transforming Apple Was Only The Beginning

first_imgWhat it Takes to Build a Highly Secure FinTech … Why IoT Apps are Eating Device Interfaces Tags:#Apple#iPhone#iTunes In my day, boys and girls, we downloaded songs onto our desktop computer. For free. Often illegally. Then we burned them onto CDs late into the night.iTunes changed all that. iTunes required that we actually pay for our music. It corralled us into accepting copyright-restricted digital content, while doing its best to force us onto pricey Apple hardware. It foolishly mashed together audio library management tools with a music download service with online payments and computer/mobile device synching – only to somehow grow even more bloated as the years went by. Yet here it is, ten years later, and iTunes towers above all its competitors.No surprise, then, that Apple is formally celebrating “A Decade of iTunes” with an interactive timeline that is equal parts sales promotion and rare look back. Related Posts Role of Mobile App Analytics In-App Engagement With the possible exception of Windows Vista, probably no software application from a large company has incurred such vigorous and ongoing public scorn as iTunes. Unlike Vista, however, iTunes continues to grow, evolve and continue its semi-secret though highly successful mission of transforming Apple from anemic, also-ran PC maker to its current position as the world’s largest technology and media company.It was (technically) on April 28, 2003, when Apple launched the iTunes Music Store. The store contained 200,000 songs, all priced at $.99 each. On that same day, Apple announced its third-generation iPod, weighing less than “two CDs” and able to hold 7,500 songs. From those meager beginnings, content delivery, the music, film and software industries – and Apple’s fortunes – were all soon to be profoundly changed.Ten years ago, Apple’s share price was $6.66. Today it hovers around $400 (down from more than $700, but still). Recall, if you can, the many Borders and Blockbuster Video stores that dotted the American landscape. iTunes essentially enabled us to buy easily digital content for the first time, and taught us that digital content could be worth paying for.iTunes Begat iPhoneiTunes helped make Apple relevant once again. It enabled the expansion of Steve Jobs’ “digital hub” strategy, guiding Apple from failing computer maker to consumer electronics behemoth. That much is generally accepted. Just as importantly, however, iTunes enabled the iPhone. The single biggest reason for Apple’s meteoric rise over the last decade is the iPhone. Realizing that the rise of “cell phones” could harm Apple’s portable iTunes media players (the iPod), Apple teamed with Motorola to create the much derided Rokr E1 phone in 2005. The hardware was disappointing  and users complained that the device could hold just 100 iTunes songs.Two years later, however, Apple introduced its own device. The iPhone was the shocking evolution of iTunes and iPod, and Apple’s work with Motorola. The point is, no iTunes, likely no iPhone and no iPad – the products that currently contribute more than 60% of Apple’s valuation.Yet even the much-improved iTunes 11 still collects scorn, even from the Apple faithful.This represents a misunderstanding of the platform’s roles. At the initial launch of the iPhone, Steve Jobs noted the importance of  iTunes to the “revolutionary” new device:The (iPhone) automatically syncs to your PC or Mac right through iTunes.
 And iTunes is gonna sync all of your media onto your iPhone: Your music, your audio books, podcasts, movies, TV shows, music videos. 
But it also syncs a ton of data: Your contacts, your calendars and your photos, which you can get on your iPod today, your notes, your bookmarks from your Web browser, your email accounts, your whole email set-up. All that stuff can be moved over to your iPhone completely automatically. 
It’s really nice.
 And we do it through iTunes. Again, you go to iTunes and you set it up. Just like you’d set up an iPod or an Apple TV. And you set up what you want synced to your iPhone. And it’s just like an iPod. Charge and sync. So sync with iTunes.Apple Loves iTunes – Even If You Don’tiTunes simultaneously serves as Apple’s payments platform, media library app, and digital media storefront – for music, books, apps, podcasts and video. It powers the popular App Store. It is an app for purchasing content on the iPhone and iPad – though not for playing that content. On the Mac, iTunes is (still) both music and video library management layer, music player – though not video player – payments provider and media storefront.No wonder even long-time Apple users complain of feature bloat and a confusing user interface.Apple’s interactive iTunes timeline, meanwhile, focuses almost exclusively on music. Maybe Apple isn’t ready to accept that iTunes has transformed the company from computer hardware maker to a global digital media concern. But consider these numbers:40 billion apps downloaded25 billion songs sold More than 15,000 songs downloaded every minute1 billion courses downloaded on iTunes UMore than 100 million books on the connected iBookstoreAvailable in more than 115 countries45% of the video on demand market in the U.S.iTunes has also delivered tremendous value to content owners, publishers and app developers. According to Apple analyst Horace Dediu, iTunes generated more than $24 billion in revenues for content owners (media and app developers) in the past five years.No matter what you may think of it personally, iTunes has been essential to Apple’s success. Expect it to continue to pushing the company forward, in all its messy, bloated glory.Images courtesy of Apple. brian s hall The Rise and Rise of Mobile Payment Technologylast_img read more

23 things everyone who has played Touch Football will relate to!

first_imgPopular news and list website, Buzzfeed has featured Touch Football this week, creating a post titled ’23 things everyone who has played Touch Football will relate to’. The post lists plenty of relatable scenarios to anyone who has taken the Touch Football field, from slipping over, attempting to score a touchdown on the wrong line and making lifelong friends. To read the story, please click on the link below: Is there anything you’d add to this post? Let us know on our social media channels:Facebook – – – Related LinksBuzzfeed storylast_img read more

Video: Duke Basketball Releases Cool Video Celebrating All Of Coach K’s NBA Draft Picks

first_imgGrant Hill of Duke on draft day.Grant Hill DukeKentucky is the college basketball program that gets most of the love these days for producing NBA talent, but Duke has been pretty great at it, too. Since Mike Krzyzewski took over the Blue Devils’ program in 1980, he’s had 51 players get selected in the NBA Draft. Thursday night, he’ll add to that number, as Jahlil Okafor, Justise Winslow and Tyus Jones are all projected to get picked in the first round, with Quinn Cook a potential second-round pick. In anticipation of the draft, Duke has released a cool video celebrating all of Coach K’s NBA players.last_img read more

Fly to NYC to Hang Backstage with Nas and hip-hop legend, Nas have come together to offer one lucky winner, and a guest, VIP passes to the Governors Ball Music Festival.Until May 31st, anyone can enter to win a chance to be flown to NYC and hang with Nas backstage, then galavant around summer’s hottest music festival with VIP artist passes – so after you wake up from your dream experience with Nas, you can also check out Kanye, Kings Of Leon, and the rest of the all-star line-up.The best part? Its all for an amazing cause: UNICEF’s efforts to save and improve children’s lives world wide. Anyone can enter to win this dream day by visiting and making a $10 donation to UINCEF.Hang with Nas in New York CityOmaze offers everyone the opportunity to engage in once-in-a-lifetime experiences with celebrities, athletes and the world’s greatest thinkers with the proceeds benefiting a social cause. The process works similar to a charity raffle. The user-friendly site allows anyone to enter to win an Omaze experience of their choice by donating just $5 or $10. Once the deadline to enter for the experience passes, Omaze collects all the entries and selects the winners through a third party computer-generated random selection process. The proceeds are delivered to benefit a specific social cause. The goal of the campaign is clearly quantified and they track the impact overtime so participants can see how their donations are impacting lives.last_img read more

The Latest Canada gets access to exdiplomat in China

first_imgWASHINGTON — The Latest on talks between the U.S. and Canada (all times local):11:47 a.m.Canada’s ambassador to China has received consular access to detained ex-diplomat Michael Kovrig four days after he was arrested in China.Canada’s Global Affairs Department says Ambassador John McCallum met with Kovrig in Beijing on Friday.The department says they are continuing to press for access to another Canadian, entrepreneur Michael Spavor, who was also detained in China on Monday. The two were arrested in apparent retaliation for the arrest of a top Chinese tech executive on behalf of the United States.Canada arrested Meng Wanzhou, the chief financial officer of telecommunications giant Huawei, on Dec. 1 at the request of the United States. The U.S. wants her extradited to face charges that she and her company misled banks about the company’s business dealings in Iran. A Canadian judge released Meng on bail Tuesday.U.S. Secretary of State Mike Pompeo and Defence Secretary Jim Mattis were meeting their Canadian counterparts on Friday for discussions expected to be dominated by the arrests.__11:04 a.m.The U.S. and Canada are holding high-stakes talks amid an escalating dispute with China that threatens to further complicate ties between the North American neighbours.Secretary of State Mike Pompeo and Defence Secretary Jim Mattis were meeting their Canadian counterparts on Friday for discussions expected to be dominated by Canada’s arrest of a Chinese tech executive at Washington’s request. China has detained two Canadians in apparent retaliation.The case has set off a three-way diplomatic furor in which Canada is stuck in the middle.Canada arrested the chief financial officer of telecoms giant Huawei (WAH’-way) on Dec. 1. The U.S. wants her extradited on charges she and her company violated sanctions on Iran. But a Canadian judge released her on bail Tuesday.The Associated Presslast_img read more

City encouraging residents to get out and vote during upcoming municipal election

first_imgFORT ST. JOHN, B.C. – The City’s Legislative Services Director Janet Prestley says the City wants more Fort St. John residents to get out and vote during this fall’s municipal election.Speaking at the Fort St. John & District Chamber of Commerce luncheon today, Prestley spoke about some of the outreach the City will be doing to help bolster some of the lowest municipal election voter turnout stats in Northern B.C. According to the City, Fort St. John municipal election voter turnout has consistently lagged at least 19 percent behind the provincial average.During the 2008 municipal election, Fort St. John recorded a voter turnout of 23 percent while the average across B.C. was 43 percent. In 2014, the provincial average voter turnout was 41 percent, while Fort St. John’s voter turnout dropped to 15 percent. Some of the factors that have been blamed on the drop in turnout during election include the acclamation of the Mayor and a lack of controversial issues. Prestley said that many residents often forget that they interact with their local municipal government much more often than with their provincial or federal counterparts. She added that many residents also might not know that voting can often take less time than ordering a cup of coffee at a fast food restaurant.According to Prestley, residents will have three ways to vote during the upcoming municipal election: in person, at the curbside, and by mail. She said that the polls will be open from 8:00 a.m. to 8:00 p.m. at the Fort St. John Legion on the day of the election, which is scheduled for Saturday, October 20th. Residents can also vote from the curbside in the comfort of their vehicles outside the polling station, or can request a mail-in ballot from the City ahead of the election.For more information about the upcoming municipal election, contact Janet Prestley at City Hall at (250) 787-8150.last_img read more

Minimum Income Guarantee Scheme an extraordinary step Sheila Dikshit

first_imgNEW DELHI: Delhi president Sheila Dikshit welcomed the historic announcement made by Congress president Rahul Gandhi to uplift the living standards of the poorest people in the country through the Minimum Income Guarantee Scheme, which she termed was an “extraordinary step”.Sheila Dikshit expressed her view that Rahul Gandhi made the announcement that under the Minimum Income Guarantee Scheme (Nyuantam Aay Yojna (NYAY)) for 5 crore poorest families of India, i.e 25 crore people, Rs 72,000 per annum would be deposited directly in the bank account of the woman of the family. She said that this scheme will apply both to the Urban and Rural poor families. She said “this is the biggest scheme for the poor by the Congress party” after the highly successful MANREGA. She said that this is probably the world’s first such scheme to ameliorate the woeful condition of the poorest people.last_img read more

Joel Edgerton joins Barry Jenkins series

first_imgLos Angeles: Actor Joel Edgerton has signed on for a role in the Barry Jenkins series “The Underground Railroad”. Edgerton will play the part of Ridgeway, a slave catcher. He joins previously announced cast members Thuso Mbedu, Chase W. Dillon and Aaron Pierre, reports The role will mark Edgerton’s first regular TV role in some time. He previously starred in the series “The Secret Life of Us”, in his native Australia early in his career in addition to a handful of other TV roles. Also Read – I have personal ambitions now: Priyanka Nowadays, Edgerton is known for his film work. He most recently starred in, wrote, and directed the film “Boy Erased”, which premiered at the Toronto International Film Festival in 2018. He made his feature directorial debut in 2015 with the thriller “The Gift”, in which he also starred and wrote. His other film roles include “Loving”, “Red Sparrow”, “Bright”, “Jane Got a Gun” and “Midnight Special”. Based on Colson Whitehead’s book of the same name, “The Underground Railroad” chronicles young Cora’s (Mbedu) journey as she makes a desperate bid for freedom in the antebellum South. After escaping her Georgia plantation for the rumoured Underground Railroad, Cora discovers no mere metaphor, but an actual railroad full of engineers and conductors, and a secret network of tracks and tunnels beneath the Southern soil. Jenkins will direct all 11 episodes of the one-hour series in what will be his first attempt at directing a TV series in its entirety.last_img read more