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Summary of March GPF meeting now available

  • GPF meeting (mid blue) Image

16 Apr 2015

Minutes of the meeting of the Global Preparers Forum (GPF) with representatives of the International Accounting Standards Board (IASB) held in London on Thursday, 5 March 2015 are now available.

The following are some of the highlights of the matters discussed at the meeting:

  • IASB Update. One of the concerns of the GPF members was convergence. GPF members challenged the extent to which the IASB and FASB really are converged in respect of the Leases projects. Also, GPF members commented that that it was unhelpful to refer to convergence in respect of IFRS 15 if the words in IFRS are going to be different from US GAAP and, as a result, outcomes may also be different.
  • IFRS Interpretations Committee Update. The meeting discussed:
    •  IAS 2/IAS 38: Should interest be accreted on prepayments for long-term supply contracts?
    • IAS 16: Accounting for proceeds and costs of testing of PPE
    • IAS 12: Reflecting uncertainty in the recognition and measurement of income taxes
  • Agenda consultation 2015. GPF members commented on the strategic direction of the IASB Agenda and suggested that the IASB should now spend more time on maintaining existing standards. They also commented on projects that should be prioritised. Again, convergence was brought up as a topic, however, GPF members felt that convergence should not be raised as a topic in the agenda consultation as convergence has been tried but has failed.
  • Business combinations under common control. The IASB staff provided an update on the research project on business combinations under common control (BCUCC). A few GPF members commented on the scope of the project.
  • Income tax accounting. The purpose of this session was to understand how, and to what extent, income tax information is used by internal management; to identify the existing practical problems about the current accounting for income taxes; and to get a sense of a direction for improving the accounting standard for income tax.
  • Review of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. GPF members were provided with results of a preparers’ survey launched by the OIC in December 2014 and were asked whether those results were consistent with their views. Most members agreed with the findings of the survey.
  • Discount rates. The IASB staff provided an update on the research project on discount rates. GPF members expressed support for conducting research on discount rates, however, they stated that this research should be of medium priority. They also stated that any standard-setting action should occur through cross-cutting projects as opposed to piecemeal amendments to different individual standards at different times.
  • Share-based payment. The IASB staff provided an update on the research project on share-based payment. The objective of the project is to identify the most common areas of complexity in IFRS 2. GPF members agreed that there are some areas of complexity in IFRS 2, however, they also commented that the standard issued in 2004 has achieved its main objective. They stated that this research should be of medium to low priority.
  • Performance reporting. The IASB staff provided an update on the research project on performance reporting that was added to the IASB's agenda in July 2014. Although the project is entitled ‘Performance reporting’, it is inevitable that the statement of financial position will be considered as part of the project. The staff emphasised that the IASB would learn from the consultations it undertook in the FSP project, and the mistakes it made. GPF members voiced some concerns, and the IASB staff promised that the IASB would develop the project cautiously. Opinions as to what priority should be given to this project were split.

The full report is available on the IASB website.

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