The purpose of this session was to get the Board's approval to move two projects from the research agenda to the IASB's active agenda:
The staff recommended adding both projects to the agenda despite the current length of the active agenda as in their opinion the projects meet the criteria set out in the IASB due process handbook.
Liabilities and Equity
The staff noted that both the IASCF Trustees and the Standards Advisory Council (SAC) have consented to add this project to the active agenda. One Board member highlighted that the Framework project covering the elements of financial statements has not been finalised. Constituents might complain that a project on liabilities and equity can only produce an interim solution as long as the issue of how a liability is defined is not resolved. Another Board member replied that the basic ownership approach as preferred by the FASB would not necessarily depend on the outcome of the framework project. It was also suggested to change the title of the project to clarify that only the distinction of financial instruments is within the scope of this project (not non-financial liabilities). The staff agreed to that proposal.
The Board agreed to move this project to its active agenda.
The staff noted that taking this project to the IASB's active agenda was agreed to by both the IASCF Trustees and SAC. Also, this has been one of the topics that the Financial Stability Forum considered a high priority item.
One Board member asked the staff to confirm that the FASB will contribute to this project. The staff answered that the FASB staff will report back on the derecognition project at the Joint Board meeting in October 2008. The Board agreed to move this project to its active agenda.