This session covered preliminary discussions ahead of the joint meeting with FASB to clarify objectives and status for the potential work program and a work trough of a paper that consider issues related to disaggregation of fair value. Board members discuss the IASB-FASB convergence project, and there seem to be agreement that this should be done by a long term convergence project, were the result should be to issue a new standard (not a revision of IAS 39 and the equivalent FASB standards) that is based on a 'full fair value model.' Board members stressed that this goal was a long way ahead. However, that long-term goal would not preclude standards being developed in the shorter-term on discrete aspects of financial instrument accounting. These short-term projects would only be undertaken if they were seen as consistent with the long-term project.

The paper on disaggregation of fair value was discussed very briefly as most members agreed on what the staff had proposed. In particular, the identification of those fair values derived with few or no market inputs ('mark-to-model') was seen as critical.

The Board agreed that there was a significant learning exercise underway between users and preparers of financial statements, with IAS 39 information being presented for the first time in many areas. This progressive education exercise needed to be built into the staff's plan to this topic. This would help the staff to work with users to determine the users' requirements for disaggregated information. Once these had been determined, whether it would be possible to provide this information would be investigated. This iterative process would be repeated as necessary. The staff were encouraged to use the national standard-setters as a means through which users could be engaged in this process.