Changes to IASB February meeting agenda

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17 Feb 2006

The IASB has made two changes to the agenda for its meeting next week, which we had announced in our News Story of 3 February 2006, which we have revised.

Fair Value Measurement has been moved to Thursday afternoon, and Government Grants has been added to the Tuesday afternoon agenda.

The government grants project had started as part of the IASB's short-term convergence project with FASB. However, it has evolved into a stand-alone (non-convergence) IASB project to reconsider IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The stated objective of the project is to amend IAS 20 by applying the accounting model for government grants contained in IAS 41 Agriculture to all government grants. The IAS 41 model establishes the following principles for recognising grants related to assets measured at fair value through profit and loss:

  • If the grant is unconditional, recognise income when the grant becomes receivable.
  • If conditional, recognise income when conditions attached to the grant have been met.
Also, in June 2005, the Board withdrew IFRIC Interpretation 3 Emission Rights. At that time, it indicated that it intended to address emission rights in a separate exposure draft early in 2006. Subsequently, the Board has determined that since emission rights are a form of government grant, they should be addressed in the project to reconsider IAS 20.

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