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IASB March 2006 meeting agenda

17 Mar 2006

The International Accounting Standards Board will meet at its offices in London on Tuesday through Friday, 28-31 March 2006. Presented below is the preliminary agenda for the meeting. .

The International Accounting Standards Board will meet at its offices in London on Tuesday through Friday, 28-31 March 2006. Presented below is the preliminary agenda for the meeting.


28-31 March 2006, London

Tuesday 28 March 2006 (afternoon only)

  • Performance Reporting - Segment B: project objectives and planning.
  • Leases - Preliminary discussion of a project on leases and possible agenda decision
  • IFRIC Update

Wednesday 29 March 2006

Thursday 30 March 2006

Friday 31 March 2006 (morning only)

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IASB proposes to amend IAS 1

16 Mar 2006

As part of its Performance Reporting Project, the IASB has issued an Exposure Draft of proposed amendments to IAS 1 'Presentation of Financial Statements'.

The Exposure Draft results from the first stage (known as 'Segment A') of the IASB's project on performance reporting and, if adopted, would bring IAS 1 largely into line with the equivalent US standard.

The second stage of the project is being undertaken jointly with the US Financial Accounting Standards Board (FASB), and includes a reconsideration of the presentation and display of information in the financial statements.

Under the proposals an entity would present all income and expenses separately from changes in its equity that arise from transactions with its owners. Entities would have a choice of presenting income and expenses in a single statement or in two statements. An entity would also be required to include in its set of financial statements a statement showing its financial position (or balance sheet) at the beginning of the previous period.

Comment deadline is 17 July 2006. Click for Press Release (PDF 68k).

The Exposure Draft:

  • specifies that entities should present all income and expenses in one or two statements, separately from changes in equity arising from transactions with owners in their capacity as owners (ie owner changes in equity). Consequently, all owner changes in equity are presented separately from non-owner changes in equity. Accordingly, entities are not permitted to present income and expenses (ie non-owner changes in equity), as defined in the Framework, in the statement of changes in equity. The purpose of this amendment is to provide better information to users by requiring aggregation of items with shared characteristics.
  • specifies that a statement of financial position as at the beginning of the period is included in financial statements. Accordingly, in addition to notes, entities presenting comparative information for the previous period are required to include, as a minimum, three statements of financial position and two of each of the other financial statements. IAS 1 requires the presentation of a minimum of two of each financial statement. The extra statement shows the financial position at the beginning of the previous period.
  • replaces the term 'balance sheet' with 'statement of financial position' to reflect the function of that statement more closely.



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FASB updates its derivatives and hedging guidance

16 Mar 2006

The staff of the US Financial Accounting Standards Board has posted on the FASB Website revisions to the Statement 133 Implementation Issues that were affected by the issuance of FASB Statement No.

155 Accounting for Certain Hybrid Financial Instruments. The 'all issues' and 'tentative guidance' files on the website have also been updated for the release of those Implementation Issues. A marked draft reflecting the revised Implementation Issues is also available in PDF format.
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EFRAG seeks members for performance reporting group

16 Mar 2006

The European Financial Reporting Advisory Group, together with the Spanish accounting standard-setter ICAC, is initiating a project on Performance Reporting.

ICAC and EFRAG are seeking nominees for a new a pan-European Advisory group by 7 April 2006. Click for More Information (PDF 51k).
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IAASB advisory group meetings are now open

16 Mar 2006

Meetings of the Consultative Advisory Group (CAG) of the International Auditing and Assurance Standards Board (IAASB) are being opened to public observation.

The CAG's next meeting is scheduled for May 11-12 in Paris. The IAASB CAG comprises representatives of 35 organisations. Its role is to provide input to and assist the IAASB by advising on its work program, including project priorities, and offering technical advice on projects as items evolve and on other matters of relevance to the IAASB's activities. Click for Announcement (PDF 89k).
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IASCF Trustees will meet 23-24 March

15 Mar 2006

The Trustees of the IASC Foundation, under which the IASB operates, will meet on 23 and 24 March 2006 at the Crowne Plaza London - The City Hotel.

The meeting is open to public observation on 23 March only. The public agenda is shown below.


Discussion of the organisation's operations:

  • IASC Foundation
  • IASB
    • Due process and consultation procedures
    • Approval of Due Process Handbook
  • Standards Advisory Council
    • Report of the SAC Chairman
    • Role and challenges
    • IFRIC Review of Operations
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Brazil will require IFRSs for financial institutions

13 Mar 2006

On 9 March 2006, the Board of Directors of The Central Bank of Brazil decided to require that all Brazilian banks, and all financial institutions licensed by Central Bank to do business in Brazil, fully comply with IFRSs beginning with the financial statements for the year ending 31 December 2010. That decision was announced in an Official Communication (PDF 93k Portuguese).

The Board has asked each of its departments responsible for bank regulation to identify the changes that will be required to existing Bank regulations to achieve the 2010 target and to report back by 31 December 2006. Thereafter, working groups will be formed to propose solutions so that there will be no impediments to using IFRSs in 2010. The Central Bank also announced that it intends to require auditors of financial statements of banks and all other licensed financial institutions to follow the International Standards of Auditing (ISAs) issued by International Auditing and Assurance Standards Board.
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New IAS Plus newsletter on IFRIC 9

12 Mar 2006

We have posted a new Reassessment of Embedded Derivatives (PDF 58k).

IFRIC 9 addresses two questions, and answers them as follows:

Q: Does an entity have to reconsider its assessment of whether an embedded derivative needs to be separated after initial recognition of the hybrid contract? A: No. In fact, it may not do so unless there is a significant change in the terms of the hybrid contract.

Q: Should a first-time adopter of IFRSs determine whether an embedded derivative needs to be separated (a) when the entity first became a party to the hybrid contract or (b) when the entity adopts IFRSs for the first time? A: (a) - make the assessment on the basis of conditions existing when the entity became party to the hybrid contract, not when it adopts IFRSs. The newsletter includes two examples. You can find our Past IAS Plus Newsletters Here.

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SEC Commissioner comments on MD&A, CD&A

12 Mar 2006

In (PDF 68k), US SEC Commissioner Cynthia A.

Glassman identified improving the Management Discussion and Analysis (MD&A) as top priority of the SEC. Commissioner Glassman noted that "management can tell its story most effectively in the MD&A." – explaining why the results of operations are what they are. She notes, however, that MD&As sometimes lack ample explanation, are unnecessarily lengthy, and are not focused on telling the story clearly.

Management's story would be more complete if it contained more forward looking information, better explained trends and uncertainties that affect the business, and discussed in more detail the business' key drivers. While forward looking statements are generally not required, they help investors understand where the company is going, and they complement the historical financial statements, which tell where the business has been.

The IASB is examining this area as well. The Board's research agenda includes a project on the Management Commentary aimed at developing guidance on presenting explanatory information outside the financial statements. In October 2005, the IASB published a discussion paper examining the role the IASB could play in improving the quality of the management commentary. The paper may be downloaded from the IASB's Website. Comment deadline is 28 April 2006. In addition to the MD&A, the Commissioner spoke about disclosures of executive compensation, a proposed new Compensation Discussion and Analysis (CD&A), reporting on internal controls, and modernising the technology supporting the public availability of corporate financial data.
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EFRAG recommends endorsement of IFRIC 8

11 Mar 2006

The European Financial Reporting Advisory Group (EFRAG) has evaluated IFRIC 8 Scope of IFRS 2 and has concluded that it is in the European interest to adopt IFRIC 8. Accordingly, EFRAG has Written to the European Commission (PDF 78k) recommending its adoption. .

The European Financial Reporting Advisory Group (EFRAG) has evaluated IFRIC 8 Scope of IFRS 2 and has concluded that it is in the European interest to adopt IFRIC 8. Accordingly, EFRAG has Written to the European Commission (PDF 78k) recommending its adoption.

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