The IASB staff presented a summary of the feedback received in response to the IASB’s request for views Agenda Consultation 2011, including a summary of the IASB’s responses to the feedback. Board members will send their detailed comments on the summary to the staff. A Consultation Summary and Feedback Statement are planned to be issued in June 2012.
The staff also presented a paper on developing the IASB Technical Program. This paper addresses developing the technical program structure as well as recommended project-level priorities.
In relation to the structure of the technical program, the Board agreed with the staff’s recommendation to promote a broad research program that will help the staff to better define issues and identify implementable solutions before the Board considers developing an IFRS. In its research, the staff would involve academics, national standard-setters, practitioners, financial analysts and others. Some Board members suggested that the roles and expectations of parties involved be clearly defined.
The staff noted that constituents strongly support the IASB developing the conceptual framework as a matter of priority. The Board agreed to give priority to 1) elements, 2) measurement, 3) presentation (including other comprehensive income) and 4) disclosure chapters (reporting entity might also be added).
The staff recommended that the phases of the conceptual framework be developed together as closely as possible. The project would be undertaken as an IASB-only project (i.e., it would not be a formal joint project with any other standard-setter). The staff had noted that the scope of the conceptual framework would be focused on financial reporting but suggested that the Board also considers future development of financial reporting broadly. One Board member suggested adding Transition as a phase in developing the conceptual framework. Also, questions were asked about the interaction of the conceptual framework and individual standards. In particular, it was unclear how developments made on the conceptual framework would impact individual standards. It was also noted that the work that has already been undertaken on the financial statement presentation project would be used in development of the conceptual framework.
The staff plans to bring staff papers on the conceptual framework for discussion of the Advisory Council in June and to the Board before the end of 2012.
With regards to priority projects, the Board agreed with the staff’s recommendation to give priority to (1) developing and/or amending guidance for IAS 41 Agriculture (in relation to bearer crops), rate-regulated activities and the equity method in separate financial statements, as well as to (2) performing research on emissions trading schemes and business combinations under common control.
The Board also agreed with the staff’s recommendation to initiate a research program on discount rates; the equity method of accounting; extractive activities, intangible assets, and research and development; financial instruments with characteristics of equity; foreign currency translation; non-financial liabilities; and financial reporting in high-inflation and hyperinflationary economies. The Board is expected to publish a research or discussion paper on these topics. Some Board members suggested that a realistic plan and timetable be developed for these projects.
In addition, it was suggested that certain topics, including income taxes, post-employment benefits (the second phase) and share-based payments are longer-term projects because of the nature of their issues. For those projects, the IASB does not plan to issue a discussion or research document within the next three years.
The IASB also plans to establish a consultative group to assist the IASB with matters related to Shariah law.