IASB subcommittee is working on Improvements Project

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04 Jun 2001

In response to its request, IASB has received hundreds of ideas for possible Improvements to existing IAS.

The Board has appointed a subcommittee of IASB members (Robert Herz, Gilbert Gelard, Jim Leisenring, and Warren McGregor) to consider all proposed improvements. The subcommittee is expected to report to the Board at its June meeting. Regarding elimination of choices, IASB has identified the following nine choices as areas for possible change:

Accounting Issue

Current Choices


FIFO/Average or LIFO

Correction of fundamental errors relating to prior periods

Restate or cumulative effect in earnings

Adjustments resulting from changes in accounting policies

If impracticable to restate, adjust retained earnings or cumulative effect in earnings

Foreign exchange losses from a severe devaluation or depreciation

Expense or capitalisation

Translation of goodwill and fair value adjustments on acquisition of a foreign entity

Closing rate or rate at transaction date

Measurement of minority's portion of identifiable assets and liabilities acquired

Fair value or carrying amount

Borrowing costs

Expense or capitalise

Investments in associates/subsidiaries in parent entity accounts

Cost or equity method or IAS 39

Reporting a venturer's interest in jointly controlled entities

Proportionate consolidation or equity method

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