The need to progress toward internationally recognised financial reporting standards has been a central issue in the global financial services markets for some time. IOSCO has done much in this field and has consistently focused on convergence, implementation and also application, through the building of an IOSCO Database which is administered by the IOSCO General Secretariat that will facilitate the sharing by securities regulators of decisions relating to the enforcement of IFRSs. In January 2007, the IOSCO IFRS Database became fully operational and the indications are that the database will provide a useful reference source for regulators that will further aid coordination and convergence.

3-4 May 2007, London

Thursday 3 May

• Customer Loyalty Programmes (IFRIC D20) - Revised draft Interpretation
• IAS 18 – Real Estate Sales
• IAS 19 Employee Benefits – Timetable for outstanding items
• IAS 19 – The Asset Ceiling and Minimum Funding Requirements (IFRIC D19)
• IAS 21 – Hedging a Net Investment in a Foreign Operation
• IAS 18 – Guidance on Identifying Agency Arrangements
• IAS 27 – Demergers and other in-specie distributions

Friday 4 May 2007 (morning only)

• IAS 18 – Customer Contributions to Property, Plant and Equipment of a Supplier
• Review of Tentative Agenda Decisions Published in March IFRIC Update
  • IFRS 3 – Re-assessments on a business combination
  • IAS 1 and IAS 39 – Current or non-current presentation of derivatives classified as 'held for trading' under IAS 39
  • IAS 16 and IAS 18 Revenue – Sale of assets held for rental
  • IAS 19 Employee Benefits – Curtailments and negative past service costs
• Staff Recommendations for Tentative Agenda Decisions
  • IAS 39 – Gaming transactions
  • IAS 39 – Hedging future cash flows with purchased options
  • IAS 39 – Hedging multiple risks with a single derivative hedging instrument
  • IAS 39 – Scope of IAS 39 paragraph 11A
  • IAS 39 – The meaning of 'commonly used currencies' in AG 33(d)
  • IFRS 5 – Plan to Sell the Controlling Interest in a Subsidiary
  • IFRS 5 – Disclosures
  • IAS 12 – Deferred tax arising from unremitted overseas earnings [this item added 18 April 2007]

Endorsement process starts as soon as COM receives a new IFRS standard or IFRIC interpretation from the IASB. COM then asks EFRAG for its endorsement opinion and notifies members of the Standards Advice Review Group that the endorsement advice has been requested indicating the approximate time of its delivery. Upon delivery of EFRAG's final opinion on endorsement, Standards Advice Review Group has three weeks to give its advice to the Commission. In exceptional circumstances this may be extended to four weeks.

The role of the Group is to assess whether EFRAG's opinion on endorsement is well-balanced and objective.

After COM receives EFRAG's opinion and advice of SARG, it will draft the endorsing Regulation, with standard or interpretation in its Annex. Together with all required documents it will be sent for consultation with other Commission services – so-called Inter-service consultation.

COM will also send this Regulation to members of the Accounting Regulatory Committee and schedule a meeting of the Accounting Regulatory Committee to vote on proposal for endorsement. Accounting Regulatory Committee (ARC) is composed of representatives from Member States and is chaired by the Commission.

The role of ARC is to ensure the formal representation of Member States interests in the endorsement process under so-called Comitology procedure. Accounting Regulatory Committee approves implementing measures by qualified majority.

Draft implementing measures should be also sent to the European Parliament two months before the meeting. After the meeting, the EP has another one month to consider whether the Commission has exceeded its implementing powers.

These comitology rules will be modified in the future. IAS Regulation will be amended to include a new 'regulatory procedure with scrutiny'. Under this new procedure the Commission will, after obtaining Accounting Regulatory Committee's favourable opinion, submit the draft measure for scrutiny by the EP and the Council. The new procedure will extend the time for EP and Council to react to 3 months, unless a fast track procedure will be adopted.

• Australia
• Hong Kong SAR
• Indonesia
• Japan
• Malaysia

• New Zealand
• Philippines
• Taiwan
• Thailand

There is clear momentum towards accepting IFRSs as a common financial reporting language throughout the world. Today, companies in the European Union are benefiting from reduced compliance costs associated with the removal of the need for the consolidation of different national accounts into a single statement to meet their home country's requirements. Investors are able to make comparisons of companies operating in different jurisdictions more easily. Regulatory authorities are now more able to develop more consistent approaches to supervision across the European economies.

As momentum towards a common set of international standards has built, the relevance of the IASB's work to the world's economy naturally invites increased scrutiny of our operations and the standard-setting process. This is something that the IASC Foundation Trustees and my IASB colleagues and I welcome. At the same time, I would ask for your help as elected representatives within the European Union, a leading beneficiary of IFRSs, in sustaining and protecting the project underway. Any unnecessary shock to the emerging IFRS system could derail what is becoming a global consensus around IFRSs.

Last week, the Trustees considered the comments received from the European Commission and others on our working procedures and responded positively to those comments. The Trustees are working with the IASB to build a framework that makes more explicit how cost-benefit considerations are taken into account when the IASB addresses new standards. Using field research and building upon its consultative processes, the IASB will seek to explain the impact of new standards on capital markets more clearly. Furthermore, the IASB will establish feedback statements related to comments received throughout the consultation process, enabling respondents and others to see clearly how the IASB dealt with comments received. Other regulatory groups, including the Committee of European Securities Regulators, adopt this approach to explain their conclusions, and the IASB will look to them as models.

The Trustees also discussed the need for a more active engagement on both the Trustee and IASB-level with key stakeholders, including the European Parliament. It is fair to say that we have not established regular contact with the members of the ECON committee, and the IASB wants to rectify this.

AGENDA FOR THE JOINT IASB-FASB MEETING

23-24 April 2007, London

Monday 23 April 2007

• Intangible Assets – Agenda proposal
• Liability and Equity
  • A presentation of a discussion paper prepared by staff of the Accounting Standards Committee of Germany on behalf of the German Accounting Standards Board and the European Financial Reporting Advisory Group. The paper provides an alternative view on distinguishing between liabilities and equity.
• Conceptual Framework – Measurement Bases
• Conceptual Framework – Project plan

Tuesday 24 April 2007

• Business Combinations
  • The Boards will discuss several convergence issues related to the proposed business combinations standard. The Boards also will consider an analysis of the benefits and costs of the proposed business combinations and non-controlling interest standards.
• Leases – scope of a discussion paper