As at 29 January 2009, the International Accounting Standards Board (IASB) has issued its most up-to-date work plan which anticipates the completion of several projects in 2010 and 2011.
These projects include the issuance of new standards, amendments to existing standards, development of an improved common conceptual framework, and research.
Standards to be amended include:
- IFRS 5 – Discontinued operations
- IAS 33 – Earnings per share
- IAS 39/ IFRIC 9 – Embedded derivatives
- IFRS 7 – Financial Instruments: enhanced disclosures
- IAS 24 – Related party disclosures
- IFRS 1 – First- time adoption of IFRS: additional exemptions
- IFRS 2 and IFRIC 11 – Share based payment: group cash-settled transactions
Issuance of new standards and the development of a common conceptual framework are a part of the Memorandum of Understanding that outlines the milestones that the Financial Accounting Standards Board (FASB) of the United States and the IASB have agreed to achieve in order to demonstrate standard-setting convergence. In collaboration with the FASB, the IASB aims to address the following areas by the end of 2011:
- Business combinations
- Financial Instruments
- Financial Statement presentation
- Intangible Assets
- Leases
- Liabilities and equity distinctions
- Revenue recognition
- Consolidations
- Derecognition
- Fair value measurement
- Post employment benefits (including pensions)
The IASB has also issued a work plan for 2009 and 2010 and anticipates the completion of several projects, including new standards and major projects, amendments to standards, conceptual framework and research. These are as follows:
New Standards and Major Projects:
- First Quarter 2009
- Consolidation (RT)
- Fair value measurement guidance (ET)
- Income Taxes (ED)
- Leases (DP)
Second Quarter 2009
- Fair value measurement guidance (RT)
- IFRS for private entities (IFRS)
- Management commentary (ED)
- Rate-regulated activities (ED)
First & Second Quarter 2009
- Derecognition (ED)
- Financial instruments (replacing of existing standards (AG)
Second Half 2009
- Consolidation (IFRS)
- Emission trading schemes (ED)
- Financial instruments with characteristics of equity (ED)
- Insurance contracts (ED)
- Liabilities (IFRS)
- Post-employment benefits (eg pensions) (ED)
Second Half 2009 to First Half 2010
First Half 2010
- Fair value measurement guidance (IFRS)
- Financial statement presentation (ED)
- Income Taxes (IFRS)
- Leases (ED)
- Management commentary (CG)
- Revenue recognition (ED)
First and Second Half 2010
- Emissions trading schemes (IFRS)
The final documents related to financial instruments with characteristics of equity, financial statement presentation, insurance contracts, leases, post –employment benefits and revenue recognition are estimated to be published in 2011. Meanwhile, the estimated publication of final documents relating to common control transactions, financial instruments and rate-regulated activities remain to be decided.
The IASB proposes to issue the following Amendments to standards:
First Quarter 2009
- Embedded derivatives (IAS 39/ IFRIC 9) (IFRS)
- Financial instruments: enhanced disclosures (IFRS 7) (IFRS)
Second Quarter 2009
- Annual improvements 2007 – 2009 (IFRS)
- Discontinued operations (IFRS 5) (IFRS)
- Joint ventures (IFRS)
- Share-based payment: group cash settled transactions (IFRS 2 and IFRIC 11) (IFRS)
Second Half 2009
- Annual improvements 2008 – 2010 (ED)
- Earnings per share (IAS 33) (IFRS)
- First-time adoption of IFRS (IFRS 1): additional exemptions (IFRS)
- Related party disclosures (IAS 24) (IFRS)
First Half 2010
- Annual improvements (2008 – 2010) (IFRS)
The work plan also includes research relating to extractive activities, which will be published as a DP during the first quarter of 2010. The estimated publication of the final document on extractive activities remains to be decided.
The IASB is currently in the process of amending sections of its conceptual framework. The project is being conducted in eight phases, as follows:
| Phase |
Topic |
| A |
Objectives and qualitative characteristics |
| B |
Definitions of elements, recognition and derecognition |
| C |
Measurement |
| D |
Reporting entity concept |
| E |
Boundaries of financial reporting, and Presentation and Disclosure |
| F |
Purpose and status of the framework |
| G |
Application of the framework to not-for-profit entities |
| H |
Remaining issues, if any |
The first four phases, A- D, are currently active.
- Phase A is currently in ED format, and the final chapter will be submitted by the end of the second quarter of 2009;
- The DP relating to phase B is expected to be published by the first half of 2010;
- The DP for phase C should be published by the second half of 2009, and in ED format by the second half of 2010;
- Phase D is currently in DP format, and the ED is expected by the second half of 2009.
The estimated publication dates of the final document are still to be decided.
The IASB has also been reviewing various aspects of its response to the global financial crisis, and, as recently as 5 March 2009, issued amendments that improve the disclosure requirements about fair value measurements and reinforce existing principles for disclosures about the liquidity risk associated with financial instruments. In addition, the Board has taken further action, in collaboration with the FASB, to address recommendations made by the G20 in November 2008 to help ease the burden of the financial crisis. These changes include:
- New disclosure requirements related to impairment
- Acceleration of efforts to address broader issues of impairment on a globally consistent basis
- Improved accounting for off-balance sheet items
- Ensuring consistent treatment of accounting for particular credit-linked investments between US GAAP and IFRS
- Ensuring embedded derivatives are assessed and separated if financial assets are reclassified.
The IASB remains committed to its goal of converging the US and international accounting standards, a project which grew out of an agreement reached by the two Boards in October 2002.
The convergence has been lauded as a positive step for investors in the United States and around the world, as it reduces the differences in two widely used sets of accounting standards, and transparency and high quality information will be provided by a common worldwide approach.
Legend:
AD: Agenda decision (to add the topic to the active agenda)
CG: Completed Guidance
ED: Exposure Draft
RT: Roundtables
AG: Advisory Group
DP: Discussion Paper
IFRS: International Financial Reporting Standard |
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