- Joint Meeting with the FASB
The IASB Technical Director reviewed the IASB's technical plan, paying particular attention to the financial crisis-related activities, Memorandum of Understanding issues, and activities related to the Conceptual Framework. He noted that the IASB had, on 21 July 2009, decided to defer work on certain projects in order to 'create space' for the projects assessed as critical. He noted also that the MoU projects were seen as 'very necessary improvements' to financial reporting and that the self-imposed deadline of 30 June 2011 provided an important focus point for the IASB.
The staff reviewed the MoU projects in turn, noting areas in which the IASB and FASB were aligned and where they were not, and what issues needed resolution. The most recent decisions taken by both Boards were mentioned, and the possible effects on the joint timetable were discussed briefly, without any specific directions being made.
Board members were interested in the progress being made on the Conceptual Framework project. The FASB staff noted that chapters 1 and 2 (objectives of financial reporting and qualitative characteristics of general purpose financial statements) were almost ready for balloting. In addition, an exposure draft of the chapter on the reporting entity was also nearing completion. It was hoped that both could be released in September 2009. Work was continuing on measurement. Work on the elements chapter was pending as the staff had been diverted to activities related to the liabilities and equity project. However, it was hoped that work could be resumed soon, though the timing was 'still vague'.
The FASB Technical Director explained the FASB's recent decision to add a disclosure framework project to its agenda. The project objectives are to raise the quality of disclosure, to eliminate redundancies (between information provided within and outwith the audited financial statements), and to seek to provide more focused disclosure. The FASB will work with the US Securities and Exchange Commission throughout the effort. In addition, the project would seek to take full advantage of XBRL technology. The IASB Technical Director stated that IASB staff would monitor the project and that there were obvious connections with the IASB's management commentary project.