IASB Technical Corrections Policy
The IASB has identified a need for a policy to deal with certain practice problems that require changes to Standards. These are issues that:
- are not consequential amendments arising from other projects,
- could not be solved through interpretation by the IFRIC, and
- require a relatively quick answer.
Generally, such issues arise when it is clear that the words in a Standard are not properly conveying the Board's intentions (even when considered with the Basis for Conclusions and any related guidance).
The Board discussed whether the IFRIC Agenda Committee should be involved in assessing such issues before they are presented to the Board. This did not seem to receive much support, as others believed that once the issue is identified based on the above criteria, the involvement of IFRIC is unnecessary.
The following is an extract from the Observer Notes which may be similar to the policy that will be published by the IASB on its website:
IASB Technical Corrections Policy What types of issues would a technical correction address? A technical correction would address issues where it is clear that the words in a Standard are not properly conveying the Board's intentions (even when considered with the Basis for Conclusions and any related guidance). Therefore, technical corrections are not:
Technical corrections are classified as one of two types: 'Time-sensitive' technical corrections 'Time-sensitive' technical corrections are corrections that require urgent clarification or corrections identified before the effective date of a Standard. An example of a 'timesensitive' technical correction is the 'day 1 profits' issue included in the 'Transition and Initial Recognition of Financial Assets and Financial Liabilities' Exposure Draft. The process for addressing 'time-sensitive' technical corrections is as follows:
Interested parties would have 30 days to comment on the proposed amendment.
All documents would be published in electronic format only, with the exception of IASB Update. Technical corrections, other than those that are 'time-sensitive' All technical corrections identified, other than those that are 'time-sensitive', would be collected over a 12-month period and included in a single omnibus 'technical corrections' Exposure Draft. The Exposure Draft would be published in March and the resulting Standard in September of each year. The process for addressing technical corrections (other than those that are 'timesensitive') is as follows:
The omnibus 'technical corrections' Exposure Draft would also include IFRIC Interpretations already published that are suitable for incorporation in Standards. The omnibus 'technical corrections' Exposure Draft will be subject to usual due process, including a 60-day comment period. |