Annual improvements — 2010-2012 cycle
The IASB's annual improvements project provides a streamlined process for dealing efficiently with a collection of amendments to IFRSs. The primary objective of the process is to enhance the quality of standards, by amending existing IFRSs to clarify guidance and wording, or to correct for relatively minor unintended consequences, conflicts or oversights. Amendments are made through the annual improvements process when the amendment is considered non-urgent but necessary.
Each year the IASB discusses and decides upon proposed improvements to IFRSs as they have arisen throughout the year. Issues dealt with in this process arise from matters raised by the IFRS Interpretations Committee and suggestions from staff or practitioners.
In order to be included in the annual improvements process, the proposed amendments must meet all of the following criteria (summarised), as published in the Due Process Handbook (revised in February 2011):
- The proposed amendment either clarifies existing standards, or corrects conflicts or oversights, but does not propose a new principle or a change to an existing principle
- The proposed amendment is well defined and sufficiently narrow in scope such that the consequences of the proposed change have been considered
- It is probable that the IASB will reach conclusion on the issue on a timely basis
- If a proposed amendment would amend IFRSs that are subject of a current or planned IASB project, there must be a need to make the amendment sooner than the project would.
Once this assessment is made, the proposed amendments follow the same due process as other IASB projects. Proposals are generally published in the third quarter of the year with a comment period of 90 days.
From January 2010, the IFRS Interpretations Committee has taken on the additional roe of reviewing proposed amendments within the annual improvements process and making recommendations to the IASB.
Current status of the project
The IASB published Exposure Draft ED/2012/1 Annual Improvements to IFRSs (2010—2012 Cycle) on 3 May 2012, with comments due by 5 September 2012. Finalised amendments are expected in the third quarter of 2013.
|3 May 2012||Exposure Draft ED/2012/1 Annual Improvements to IFRSs (2010—2012 Cycle) published||Comment deadline 5 September 2012|