Hans Hoogervorst addresses FACPCE, Argentina
Jul 03, 2012
On 3 July 2012 Chairman Hans Hoogervorst gave a speech to the Federacion Argentina de Consejos Profesionales de Ciencias Economicas (FACPCE) in Buenos Aires, Argentina. In the speech, he commented on three important points: 1) convergence; 2) IASB future agenda and how it relates to emerging markets; and 3) the IASB relationship with regulators and standard setters.
In the speech, given in Spanish, Mr Hoogervorst noted the strong support for global accounting standards in South America and noted the number of large South American economies that have adopted IFRS.
Mr Hoogervorst gave an update on the leases, financial instruments, revenue recognition, and insurance projects. He indicated that the IASB and FASB have made 'real progress' in these projects, that there is 'light at the end of the convergence tunnel', whilst providing explanations for remaining differences. He commented that exposure drafts for leases, financial instruments, and revenue recognition are expected in the second half of 2012 and expect to have finalised standards in 2013.
IASB future agenda
In noting constituent calls for a 'period of calm', Mr Hoogervorst commented that going forward, the IASB will generally focus on only the most important areas that will require change and have constituent support. These included finalising the revised conceptual framework, developing a disclosure framework to address excessive disclosures, and the need for a conceptual analysis of other comprehensive income.
In addition, it is expected that smaller projects on agriculture, business combinations under common control and equity accounting may be considered. Other topics that are not on the current IASB work program will be placed in a ‘research phase’ where other standard-setters will work with the IASB to gather preliminary information on a project. This phase will speed up the discussions on a project when it does make it to the IASB work program.
IASB relationship with regulators and standard setters
With the increasing use of IFRS globally, Mr Hoogervorst commented that it becomes important to take into consideration the views from different parts of the world. The IASB is in the process of developing a formal structure of working with national and regional standard-setters, including the Group of Latin American Accounting Standard Setters (GLASS). In addition, Mr Hoogervorst saw mutual benefits from a more structured and deeper cooperation between the IASB and securities regulators.
Please click for the full text of the speech (in Spanish) on the IASB's website.
- Conceptual Framework — IASB-FASB joint project
- Disclosure framework
- IASB-FASB convergence
- Financial instruments — General hedge accounting
- Financial instruments — Impairment
- Financial instruments — Limited reconsideration of IFRS 9
- Insurance contracts — Comprehensive project
- Revenue recognition