The Staff updated the Board on the work of the Financial Activities Advisory Group from December 2002 to date, focusing on the area of capital risk disclosures. Following, the Board discussed specific issues and agreed on the following:

• The standard should not require disclosure of capital requirements imposed by external parties (regulators). However, entity-specific targets and industry standard targets would need to be disclosed. The entity would also be required to disclose the fact (if applicable) that a breach has occurred at any point during the reporting period and the quantitative steps taken to correct that breach. The entity would be required to disclose the existence of forbearance, if one occurs.
• There is a need for a final standard by 2005, as it simplifies and improves the capital risk disclosures from those in IAS 30 and 32. The staff will work to complete an ED that the Board can expose in 2004, so that entities would be able to voluntarily adopt the standard for 2005. However, the Board's agenda is extremely full, and the effective date of a final Standard may have to be delayed until after 2005. If this project is not in place by 2005, IAS 30 and 32 will still apply to capital risk disclosures.
• This project will not address improvements to IAS 14, Segment Reporting.