Highlights from the meeting included:
IASB workplan and IFRS Foundation developments
Participants discussed current projects on the IASB agenda and IFRS Foundation activities and activities that national standard-setters may wish to undertake to support the IASB in achieving its work. Projects discussed were:
- Conceptual framework,
- Disclosure initiative,
- Insurance contracts,
- Business combinations under common control,
- Financial instruments with characteristics of equity,
- Equity method of accounting,
- Discount rates, and
- Post‐employment benefits.
Participants also discussed the agenda consultation, research and implementation projects in general, and interpretation of standards by regulators.
Part of the discussions around IASB projects were also the transition resource groups for revenue and impairment, bundling of issues that arise in the discussions, the question of how long they should be kept operating, and whether standard-setters should encourage regulators to back off from having one right answer on a particular issue.
Reports from regional groups
Representatives from the Asian-Oceanian Standard-Setters Group (AOSSG), the European Financial Reporting Advisory Group (EFRAG), the Group of Latin-American Accounting Standard Setters (GLASS), and Pan-African Federation of Accountants (PAFA) explained recent developments in each of the groups.
Participants were updated on IPSASB developments since October 2014. One focus of attention was the public consultation on IPSASB’s strategy and work plan and the need find the right balance between public sector specific and IFRSs convergence projects.
EU Expert Group on IAS Regulation
Participants were provided with some context and an update on this topic. The positive outcome of the IAS Regulation evaluation was stressed, and the expectation was voiced that the EC was “neutral or relatively happy” with the preliminary feedback.
Post-implementation Review of IFRS 3 Business Combinations
During this session, participants discussed how to improve the IAS 36 impairment test, subsequent accounting for goodwill, identification and measurement of intangible assets, useful life of goodwill, bargain purchase and non-controlling interests, and the definition of a business.
The next IFASS meeting will be held in London on 29 and 30 September 2015. The first meeting in 2016 will be held in Toronto on 4-5 April. Taiwan has offered to host the first meeting in 2017.
The IFASS Chairman noted that she proposes to step down after the Toronto IFASS meeting in 2016. A call for nominations will be made after the September 2015 meeting.
Participants discussed the business model and P&L/OCI presentation, measurement, the definition and recognition of liabilities, and the reporting entity.
Participants then discussed two topical issues: Application of IFRS 10 – Concerns arising from paragraph 4(a)(iv) and Classification of non-Current liabilities in the event of default – IAS 1 and the new ED on liability classification.
Effects Analysis Study Report
The IASB Vice-Chairman presented the topic and participants took away from the presentation that with all projects, they need to consider the effects of proposals in their jurisdictions and report these effects to the IASB during the lifecycle of the project and not just when asked to do so.
New IFASS member projects
Two new projects were introduced during this meeting. The Korean Accounting Standards Board presented "Costs and Benefits of IFRS Adoption in Korea – Preparers’ Perspectives" and the Italian standard-setter is conducting a project on "Disclosures related to the Application of IAS 8". The latter forms part of the IASB's disclosure initiative.
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