IFRS Advisory Council comments on IASB's work plan post 2011

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07 Sep, 2010

The IASB has published the recommendations of the IFRS Advisory Council in relation to the IASB's post-2011 work plan.

The recommendations include a comment that the strategy, work plan and priorities of the IASB should reflect its objectives as set out in the IASB Constitution. The recommendations also seek to allow the new IASB Board to become better oriented before making extensive longer-term commitments, and would ease the transition from the old to the new Board. It also notes "convergence is not an objective as such and is intended merely as an interim step to facilitate adoption of IFRS".

In summary terms, the recommendations are:

Basic policies

  • Focus on serving those who have adopted or wish to adopt IFRS. Convergence is no longer a prime consideration.
  • Retain the current objective of serving the reporting needs of capital market participants for profit-oriented entities.

Short- to medium-term objectives

  • Provide a period of calm in issuing new standards to bed down the numerous new and revised standards coming into effect. Stand ready to assist in resolving implementation issues. Assess proposals for new standard-setting projects against strict selection criteria. Provide some capacity and flexibility to deal with unforeseen urgent issues without disrupting the work plan.
  • Allocate significant resources to ensuring that the standards are interpreted and applied with an appropriate degree of consistency, and that they are producing the intended results. Post-implementation reviews become a significant activity.
  • Expedite completion of the conceptual framework project and developing a disclosure framework.
  • Monitor trends and developments that are likely to affect financial reporting in the future.

Interaction with constituents

  • Manage the relationship between IFRS and IFRS for SMEs. The first periodic update of IFRS for SMEs will be particularly challenging because of the recent spate of new or revised standards.
  • Continue and expand outreach activities with particular emphasis on users and emerging markets.

Click for access to the recommendations (link to IASB website). We have a page on the Advisory Council Here.

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