Tweedie Provides Update on IASB Works
The Chair of the International Accounting Standards Board (IASB) Hans Hoogervorst has provided an update on the work of the IASB since the July 2011 Trustees’ meeting.
The update was made during the meeting between the IFRS Foundation Trustees, the Autorité des normes comptables (ANC), the French accounting standard-setter, the major French business organisations (Acteo, AFEP, MEDEF, MiddleNext) and the French business leaders, in Paris, France that started on October 13, 2011. The meeting was recently concluded.
Hoogervorst provided an update of the Board’s work to reform financial instruments accounting. As part of this reform, the IASB and the US-based Financial Accounting Standards Board (FASB) are working in close co operation to improve and align the accounting for financial instruments by IFRSs and US GAAP.
He noted the proposals that had been published for public comment to defer the effective date of IFRS 9 Financial Instruments until 2015 and provided an update on the ongoing work to seek a converged outcome for both impairment and hedge accounting.
Hoogervorst noted decisions made by the IASB and the FASB to re-expose the Leases and Revenue Recognition proposals for further public comment. The boards expect to re-expose the Revenue Recognition proposals during the last quarter of 2011 and to re-expose the proposals for Lease Accounting during the first quarter of 2012.
The Chair also provided an update on the Insurance Contracts project. Although this project is not described by the Memorandum of Understanding with the FASB, the boards are working together to seek a converged outcome.
The boards are at different stages of their respective due processes and are seeking ways to align their proposals and timetables for completion, noting the relationship between the Financial Instruments and Insurance Contracts projects.
The Trustees and Hoogervorst discussed the 4 August 2011 letter sent to the European Securities and Markets Authority (ESMA) on the inconsistent accounting treatment for sovereign debt securities. The letter was subsequently published on the IASB website.
The Trustees were in broad support for the letter’s message regarding the need for consistent application of the standards. The Trustees also requested that the Due Process Oversight Committee (DPOC) should give consideration to whether, and to what extent, a process is required for correspondence on behalf of the IASB.