IASB and EFRAG Discuss Status of Ongoing Projects and Other Topics
The International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) met on 9 March 2012 to discuss the IASB’s ongoing work on the four major open projects and to address a number of other matters.
EFRAG is the private sector body responsible for stimulating debate in Europe about the evolution of International Financial Reporting Standards (IFRSs) and for providing input to the work of the IASB, after appropriate due process, on behalf of Europe.
The EFRAG delegation was composed of the EFRAG Chairman (Françoise Flores), the Vice-Chairman of EFRAG TEG (Mike Ashley), the Chairmen of the Accounting Standards Committee of Germany (Liesel Knorr) and the UK Accounting Standards Board (Roger Marshall) and the Vice-Chairman of the Organismo Italiano Contabilità (Alberto Giussani), the Italian standard-setting body, accompanied by their technical directors or a member of their Boards. The Autorité des Normes Comptables, the French standard-setting body, was represented by its technical director.
Led by Hans Hoogervorst, IASB Chairman, and Françoise Flores, EFRAG Chairman, the meeting focused on the four major open projects: Insurance Contracts, Leases, Financial Instruments and Revenue Recognition. In addition to general updates, the IASB provided a preliminary assessment of the comments that have been received on the exposure of the revised revenue recognition proposals, while the EFRAG updated the IASB on the results of their field tests on these proposals.
The EFRAG also commented on the Leases project, on the IASB’s project to make limited improvements to the classification and measurement model in IFRS 9 and discussed its plans to field test the IASB’s general hedge accounting Review Draft.
In other matters, the recent ESMA paper on ‘materiality’ was discussed, as was EFRAG’s forthcoming discussion paper on the Disclosure Framework. The IASB and EFRAG also addressed the potential for co ordination on research projects, the due process for the IASB’s forthcoming post-implementation reviews and how user outreach can be co ordinated.
Hans Hoogervorst, IASB Chairman, commented: “The IASB’s regular meetings with the EFRAG provide an important opportunity to discuss ongoing projects and other related matters. At this meeting, the EFRAG’s update on feedback received from participants in industry workshops on the revenue recognition proposals was of particular interest. The IASB appreciates the EFRAG’s initiative in arranging these workshops.”
Françoise Flores, EFRAG Chairman, said: “This first meeting under the leadership of Hans Hoogervorst has been an opportunity for the EFRAG to welcome the direction that Hans Hoogervorst set for the IASB, as indicated in his Mexico speech. We also welcome the positive and direct dialogue encompassing not only Revenue Recognition but also Leases, Financial Instruments and Insurance Contracts.”