Agenda Committee

The IFRIC Chairman and Co-ordinator asked the IASB for their views on the report from the IFRIC to the IASC Foundation Trustees arising from the IFRIC's analysis of comments received as a result of the Trustees' exposure of the Draft Due Process Handbook. The Board's discussion focused on the role and operation of the IFRIC Agenda Committee.

Board members observed that many of the comments received that were critical of the Agenda Committee demonstrated that the commentators did not understand the nature of the Agenda Committee's work. The best way to dispel those misunderstandings was to absorb the Agenda Committee back into the IFRIC. Although there was much more discussion around this topic, the consensus was that the Board would recommend to the IFRIC that:

• The Agenda Committee be abolished and its role subsumed within IFRIC
• IFRIC meet as a 'committee of the whole' to discuss potential issues with the IASB staff. These meetings would be open to all members of IFRIC, but all members of IFRIC would not be expected to attend (i.e. IFRIC members would be invited but not required to attend).
• These 'committee of the whole' meetings would not make decisions, but would help the staff to make a recommendation to the IFRIC as to whether an issue meets the requirements for it to be taken to the IFRIC's agenda (that is, the role currently undertaken by the Agenda Committee).
• These 'committee of the whole' meetings would be open to the public.

Status of Agenda Decisions

Board members discussed the authoritative status of Agenda Decisions. The IFRIC and the IASB are clear that Agenda Decisions are not Interpretations and do not have a place within the IAS 8 hierarchy. However, several Board members suggested that they do form low-level guidance and, in some jurisdictions, IFRIC's description of its Agenda Decisions would be ignored 'at your peril'. Because the Agenda Decisions are the views of reasonably experienced people who are familiar with financial reporting under IFRSs, so as such they may reasonably inform users' views.

Some Board members were concerned that Agenda Decisions might result in restatements of prior financial statements. Others saw no problem - sometimes the treatment criticised by the IFRIC was an unreasonable application of an IFRS and should be corrected via restatement.

Ultimately, the Board agreed that the IFRIC should continue to publish Agenda Decisions, being sensitive (as now) to the wording of those decisions.

The IFRIC will have the opportunity to discuss the IASB's recommendations before the staff make final recommendations to the IASC Foundation Trustees at their January 2007 meeting.