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Convergence Topics - Other than Pension Benefits

Date recorded:

The Board agreed to take hyperinflation accounting out of the convergence project, as this issue is not as relevant to the US as it is for the IASB. Therefore, it will be added to a longer-term project with the IASB. The staff noted that they would be working with the standard setting bodies in Argentina on this issue. One Board member also suggested that the staff consult with the Mexican standard setters, as they have been helpful on this issue with the FASB in the past.

The staff noted that the scope of FAS 146 in relation to termination benefits is much narrower than the approach in IAS 19 (FAS 146 addresses only one-time termination benefits). Therefore, total convergence is unlikely to exist for all areas, but should exist for one-time termination benefits. The Board discussed the issue of "stay bonuses" and concluded that if a current obligation exists and the payment is probable, a liability should be recognised at fair value.

Translation gains and losses on assets held for sale are included in equity along with other translation gains and losses. The Board discussed whether these items should be recycled to the income statement when the assets are sold as part of the basis in the asset. The Board decided to defer a decision on this issue as it will be covered in the performance-reporting project.

Correction list for hyphenation

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