May 2015

ASBJ publishes research paper on the amortization of goodwill

May 19, 2015

On May 19, 2015, the Accounting Standards Board of Japan (ASBJ) published the Research Paper No.1 “Research on Amortization of Goodwill” with a view to make a contribution to the global discussion regarding how goodwill should be accounted for.

IASB issues work plan update

May 29, 2015

On May 29, 2015, following its May meeting, the International Accounting Standards Board updated its work plan. The revised plan adds a new project on “Changes in accounting policies and estimates”, moves the Exposure Draft on “Clarifications to IFRS 15” and the Draft Interpretation on “Uncertainties in income taxes” back by one quarter, and introduces a new format for reporting on the progress in research projects.

The revised IASB work plan is available on the IASB's Web site.

IASB proposes revisions to the Conceptual Framework

May 28, 2015

On May 28, 2015, the International Accounting Standards Board (IASB) published a comprehensive Exposure Draft (ED) containing proposals for topical areas where it considers a revision and amendment of the existing Conceptual Framework necessary. Included in the ED are proposals to revise the definitions of an asset and a liability, to introduce guidance on measurement and derecognition, and to set a framework for presentation and disclosure. The main ED is accompanied by an ED containing proposals regarding references to the Conceptual Framework in other IASB pronouncements. Comments on both EDs are due October 26, 2015.

ED/2015/3 Conceptual Framework for Financial Reporting explains that the Conceptual Framework's primary purpose is to assist the IASB in developing and revising IFRSs (even though it may be useful to parties other than the IASB) and that the framework does not override any specific IFRS. Should the IASB decide to issue a new or revised pronouncement that is in conflict with the framework, the IASB will highlight the fact and explain the reasons for the departure going forward.

ED/2015/4 Updating References to the Conceptual Framework contains proposed amendments to IFRS 2, IFRS 3, IFRS 4, IFRS 6, IAS 1, IAS 8, IAS 34, SIC-27 and SIC-32 in order to update those pronouncements with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework. As the Conceptual Framework will mainly affect the IASB and its work while the proposals regarding the other pronouncements could also affect preparers, the IASB considers granting a transition period of approximately 18 months for the amendments proposed in ED/2015/4 in order to give preparers time to identify, understand and adjust to possible implications.

The IASB allows constituents an extended six months period to work their way through the document and to respond to the questions raised; hence, comment letters are to be submitted by October 26, 2015. The IASB will consider the comments received when developing the final version of the revised Conceptual Framework. The IASB aims to finalize the revised Conceptual Framework in 2016.


New appointments to the IFRS Interpretations Committee

May 12, 2015

On May 12, 2015, the IFRS Foundation, the oversight body of the International Accounting Standards Board (IASB), announced two appointments to the IFRS Interpretations Committee.

Jongsoo Han, a board member of the Korea Accounting Standards Board (KASB) and Vice-President of the Korea Accounting Association, and Robert Uhl, a US-based Partner and National Director of Accounting Standards and Communications at Deloitte & Touche LLP, have both been appointed for a three-year term, commencing July 1, 2015. Mr. Uhl had already been appointed to the Committee in an interim capacity until June 30, 2015 in December 2014 following the departure of Laurence Rivat. In addition to the new appointments, John O’Grady and Sandra Peters have been reappointed to serve a second three-year term on the Committee, also commencing in July 2015.

Please click for the IFRS Foundation announcement (link to IASB website).

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