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Emerging Economies Group meeting focuses on common control transactions

  • EEG (Emerging Economies Group) (mid blue) Image

Dec 17, 2012

The IASB has publicly released a communiqué from a meeting of the Emerging Economies Group (EEG) held in Sao Paulo, Brazil, in December 2012. The main topic discussed at the meeting was transactions under common control, and the meeting included brief discussions on hybrid financial instruments and impairment of financial assets.

Delegates attended the meeting from Argentina, Brazil, China, India, Indonesia, Korea, Mexico, Russia, and South Africa. The IASB was represented by Mr. Ian Mackintosh (IASB vice-chair), Mr. Amaro Gomes (IASB member), and Mr. Wayne Upton (IASB director of international activities and chair of the IFRS Interpretations Committee).

The EGG is designed to enhance the voice of emerging economies in the process of setting IFRSs, including discussing specific accounting issues from emerging economies’ perspectives.

While the communiqué does not provide much detail on the discussions about the various issues, the following papers have been made available on the IASB's Web site to provide additional background information (bolded links are to the IASB's Web site):

  • Transactions under common control — An in-depth paper prepared by the Korean Accounting Standards Board (KASB) that discusses various accounting issues arising from both business combinations and other transactions involving parties under common control, including the definition and boundaries of common-control transactions, types of common-control transactions, and accounting for such transactions in consolidated and separate financial statements.
  • Hybrid/compound financial instruments — A paper prepared by the Brazilian Accounting Standards Board that outlines issues identified in classifying particular types of hybrid financial instruments commonly issued in Brazil and other emerging economies under IAS 32, Financial Instruments: Presentation.
  • Impairment of financial instruments — A paper prepared by the Brazilian Accounting Standards Board that outlines developments in the IASB's project on financial instrument impairment, including general and specific issues arising in emerging economies of adopting the proposed "three bucket" model.

The meeting also included general discussion on activities of the EEG and other matters.

The next EEG meeting will be held in Korea in May 2013. Click for the EEG Communiqué (link to the IASB's Web site).

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