The project manager provided a short introduction regarding the work already carried out. Seven IASs have been compared with their equivalents in liaison countries to identify possible convergence topics.

IAS 2, Inventories

The project manager proposed that this standard does not include major convergence issues to be explored further. The Board agreed unanimously.

IAS 10, Events after the Balance Sheet Date

The project manager proposed that this standard does not include major convergence issues to be explored further. Although the Board agreed in general, it asked the staff to explore potential differences between IAS and local GAAP in more detail and bring the matter back to the board.

IAS 12, Income Tax

The project manager pointed out that the main difference between the liaison countries with regard to deferred tax accounting was concept of either a temporary or timing approach. As convergence between these two approaches was considered to be a major project, the project manager proposed to address only convergence issues arising under the temporary approach. The Board directed the staff to clarify the scope of a convergence project.

IAS 14, Segment Reporting

IAS 14, Segment Reporting, was identified as an important convergence issue. The discussion focused on whether segment reporting under IAS and US GAAP would lead to comparable results and whether one approach was preferable to the other. The Board decided that empirical data regarding the preference of the analyst community should be obtained before the topic is pursued further by the staff.

IAS 23, Borrowing Costs

The Board decided to not address borrowing costs for convergence until the Canadian Accounting Standards Board finishes its project on initial measurement.

IAS 28, Accounting for Investments in Associates

The Board decided that the staff should explore potential differences between IAS 28. It was agreed that scope of the analysis should include IAS 31 as well. The results of the analysis will be presented and discussed at the meeting with the national standard setters in October 2002.

IAS 35, Discontinuing Operations

The project manager suggested looking at potential differences in the definition and timing aspects. The Board agreed unanimously.

IAS 19, Post-Employment Benefits

IAS 19 has already been identified as a potential convergence area. The Board briefly discussed the possibility of limiting the project down to convergence issues only but decided that the differences between IAS 19 and the national standards most likely could not be overcome without major overhaul. It was therefore decided to discuss this issue with the Standards Advisory Council. In addition to that, the staff was directed to summarise the similarities and differences between the standards.