Hot Topic: SEC and IFRS from Ernst & Young

24 November 2008

We are pleased to release a special Hot Topic, "SEC issues proposed roadmap for the potential use of IFRS in financial statements prepared by US issuers," an issue of InSights, "The focus of audit committees during the financial crisis" and three issues of ViewPoints, a publication designed to provide audit committee members with leading practice information on emerging practices and practical insights on the key issues and trends facing today's audit committees.

The Hot Topic focuses on the US Securities and Exchange Commission's (SEC) long-awaited proposed "Roadmap" and outlines the SEC's proposals for International Financial Reporting Standards (IFRS) adoption in financial statements prepared by US public companies. The Hot Topic summarizes the significant elements of the SEC's proposal and discusses what the future holds for IFRS. Additionally, Ernst & Young leadership held an in-depth discussion of the SEC's release and the Roadmap's milestones during a November 20 webcast - "Journey to IFRS: The SEC's Roadmap." Please view a rebroadcast of the discussion at www.ey.com/webcast under Archived webcasts.

InSights, "The focus of the audit committees during the financial crisis," highlights the issues that leading companies' audit committees are focused on as the current economic environment has changed the look of audit committee agendas to include:

All three issues of ViewPoints were published as a result of the Audit Committee Leadership Summit, a meeting of the European and North American Audit Committee Leadership Networks held on September 30 - October 1, 2008, and summarize discussions on the following topics:

• "Finding a balanced approach to global regulation" focuses on the need for better cooperation between global regulators and how regulation can be more effectively streamlined and enforced.
• "IFRS in Europe and the US: lessons learned and challenges ahead" provides an overview of the discussion of International Financial Reporting Standards (IFRS) and changes to fair value accounting, particularly during the financial crisis, as well as the challenges that lay ahead with a US move to IFRS and the future of standard setting.
• "Enterprise risk: recurring challenges and new considerations for the audit committee" covers companies persistent problems with managing risk, the role of the board and the audit committee, and how the audit committees can enhance their role in risk oversight.

(NOTE: If the above links do not work, please cut and paste the following URL into your web browser to access the information: www.eyonline.com/auditcommittee.)

Please feel free to share these publications with your colleagues or anyone else that you think would be interested.

Sincerely,

Ernst & Young