IASB / FASB JOINT MEETING OCTOBER 2012 IASB issues October 2012 joint IASB / FASB meeting highlights Key issues At the October 2012 joint IASB / FASB meeting the following issues were discussed: Due process papers: The IASB discussed the following forthcoming Exposure Drafts and agreed that they complied with the due process requirements to date: Equity method of accounting: accounting for the share of other net asset changes (proposed amendments to IAS 28) Annual Improvements to IFRSs 2011-2013 cycle The IASB decided that the proposed amendments to IAS 16, Property, Plant and Equipment and IAS 38, Intangible Assets relating to revenue-based depreciation would be removed from the Annual Improvements project and be published in a separate Exposure Draft with a comment period of 120 days. The remainder of the Annual Improvements will continue to a comment period of 90 days. Financial instruments: Accounting for macro hedging: The IASB continued their discussion on the proposed revaluation model for interest rate portfolio hedging activity as it relates to credit risk, floating leg considerations, loan commitments, and pipeline trades. No decisions were made by the IASB. Financial instruments: Classification and measurement: The IASB staff received feedback about interest rates in a regulated environment and whether financial instruments priced in that environment would still qualify for a measurement category other than FVPL. The IASB staff plans to gather more information on the issue through the exposure draft process. No decisions were made by the IASB. Financial instruments: Impairment (IASB-only session): The IASB staff held discussions with investors, analysts, regulators, auditors, and preparers to better understand whether the three bucket impairment model would be operational and whether that model or the FASB's alternative model would provide more useful information. At this meeting, the IASB staff presented a summary of the feedback received. No decisions were made by the IASB. IAS 8 ‒ effective dates and transition methods: The IASB decided to stop the balloting process for the proposed amendments to IAS 8 and to remove the project to make narrow-scope amendments to IAS 8 from the current work plan. The IASB staff will continue to gather information about how changes in accounting policy are being presented in financial statements. IFRIC Update: The IASB was informed of a request for guidance on the meaning of "expiry" within the context of accounting for the derecognition of financial assets. The IASB noted the request. Insurance contracts (IASB-only session): In an education session the IASB discussed the presentation approach in the statement of comprehensive income for premiums and claims, non-claims fulfillment costs, and acquisition costs. No decisions were made. In addition, the IASB met to discuss financial instruments with discretionary participation features, transition requirements, effective date, comparative information, and early application. The IASB reached certain tentative decisions. Insurance contracts (IASB-FASB joint session): The IASB and the FASB continued their joint discussions on the insurance contracts project where they discussed: The time value of money in the premium allocation approach The presentation of changes in the liability for participating contract How premiums and claims, non-claims fulfillment costs, and acquisition costs should be presented in the statement of comprehensive income The Boards reached certain tentative decisions. Revenue recognition: The IASB and the FASB continued redeliberating the 2011 Exposure Draft, Revenue from Contracts with Customers, and reached tentative decisions on the following topics: Contract modifications Measuring progress toward complete satisfaction of a performance obligation Work plan: The work plan as of October 25, 2012, reflecting decisions made at the October 2012 meeting is available on the IASB website. All decisions reached at IASB meetings are tentative and may be changed or modified at future meetings. Board decisions become final only after completion of a formal ballot to issue a Standard or Interpretation or to publish an Exposure Draft. The International Accounting Standards Board has issued an IASB Update, which summarizes the joint IASB / FASB meeting that was held on October 15-19, 2012. The IASB met alone for certain sessions. Highlights of the meeting are discussed below. Due process papers The IASB discussed two forthcoming Exposure Drafts. Equity method of accounting: accounting for the share of other net asset changes (proposed amendments to IAS 28) All members present agreed that the IASB has complied with the due process requirements to date in preparation for the publication of the Exposure Draft on the equity method of accounting: accounting for the share of other net asset changes (proposed amendments to IAS 28). Annual Improvements to IFRSs 2011-2013 cycle All members present agreed that the IASB has complied with the due process requirements to date in preparation for the publication of the Exposure Draft for the Annual Improvements to IFRSs 2011-2013 cycle. Subject to consensus on the final wording of the proposed amendments, no IASB members intend to dissent. Although the IASB's due process requires only a 90-day comment period for Annual Improvements, the staff recommended a comment period of not less than 120 days since they were concerned about the potential effect of one of the proposed amendments (proposed...
On The Horizon For IFRS - November 20, 2012
|Author:||Ms Grant Thornton's Audit Practice Group|
|Profession:||Grant Thornton LLP|
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