The pooling-of-interests method (called uniting of interests in IAS 22) is prohibited. Effective for business combinations initiated after 30 June 2001.

Under FAS 142, goodwill will not be amortised but must be tested for impairment annually at the reporting unit level based on fair value measurements. Effective for financial years beginning after 15 December 2001, early adoption permitted, retroactive application not permitted.

More information at FASB Website. Concurrently, the Canadian Accounting Standards Board approved standards on Business Combinations and Goodwill and Other Intangibles that are consistent with those in the US. Other standard-setters, including those in Australia and New Zealand, have also banned pooling. IASB has identified convergence on business combinations as a high priority potential agenda project.

Click for IASB and SAC July Meeting Information.

The proposal would introduce a 'single passport' to raising capital in Europe. There would be only one prospectus approved by the home country authority of the issuer, which would have to be accepted throughout the EU for public offer and/or admission to trading on regulated markets. Click to download the Full Text of EC Proposal (PDF 103k).

IASB has issued a consolidated document that includes the fifth batch of questions and answers approved in final form by the IAS 39 Implementation Guidance Committee as of 1 July 2001.

The ESC will be composed of high-level representatives of the Member States. It will advise the Commission on issues relating to securities policy. At a future date, it will also act as a regulatory committee. The CESR is set up as an independent advisory body composed of representatives of the national public securities regulatory authorities to advise the ommission on the technical details of securities legislation. The Commission's goal is to achieve an integrated European securities market by the end of 2003. Click for Commission's June 2001 Progress report on its Financial Services Action Plan (PDF 69k).

Based on discussions at the IASB meeting last week, the agenda proposals that IASB will put before its Standards Advisory Council in 23-24 July would seem to include the following:

High Priority Projects
Improvements (including transition) Preface Reporting financial performance Measurement Share-based payments Measurement of financial instruments at fair value	Business combinations Consolidation Derecognition Banking activities: disclosure and presentation Insurance contracts Limited amendments to IAS 39
Second Level Projects
Definitions of elements of financial statements Intangible assets Leases	Extractive industries Impairment Revaluation of non-financial assets

We have updated IASB agenda project pages for

• Banks, Business Combinations,
• Measurement (new project page),
• Performance Reporting, and
• Preface.