Changes to IASB's project timetable

08 Dec 2003

We have changed our Timetable for IASB Projects to reflect changes made in the timetable on the IASB's website.

Changes include:

Provisional revised versions of improved standards released

07 Dec 2003

The IASB is making available on-line to subscribers the "provisional final" texts of Standards being revised under the Improvements Project.

The Provisional Final versions of IAS 17 Leases, IAS 28 Investments in Associates, IAS 31 Interests in Joint Ventures, IAS 40 Investment Property, and the Withdrawal of IAS 15 Information Reflecting the Effects of Changing Prices are now available on IASB's website. The IASB has previously made available the provisional texts of IASs 2, 10, 16, 21, 24, and 33.

EC comments on IAS regulation and accounting directives

06 Dec 2003

The European Commission has made some small changes to the document interpreting aspects of the EU's IAS Regulation and the interaction of the Regulation with the Accounting Directives (see news story of 3 December 2003).

If you previously downloaded it, please click here to Download the Revised Version (PDF 175k).

Proposal to enhance EFRAG's role and working process

06 Dec 2003

The European Financial Reporting Advisory Group (EFRAG) has invited comment on proposals to enhance its role and streamline its operating processes with the goal of "strengthening European input to the IASB".

EFRAG, a private-sector body, was created in mid-2001 by a broad array of groups interested in financial reporting in Europe, including the preparers and the accountancy profession. Its principal goal is to make a pro-active contribution to the work of IASB while also advising the European Commission on the technical assessment of the IASB standards and interpretations for application in Europe. Key proposals include:

  • Increasing EFRAG's pro-active role with the IASB, to allow EFRAG to present European concerns at the earliest stage.
  • Seeking full recognition of EFRAG as a liaison standard-setter by the IASB.
  • Creating an Advisory Forum to allow a wide range of stakeholders to contribute to the European financial reporting debate.
  • Making EFRAG's working processes more efficient, including (a) closer relationships with the European national standard setters; (b) smaller and more efficient Supervisory Board; and (c) a full-time Chairman for the Technical Expert Group.
  • Increasing EFRAG's resources.
Written comments on the proposals are invited by 12 January 2004, and a public hearing will be held in Brussels on 8 January 2004. Click to download:

Disclosure of the impact of IFRS convergence in Australia

05 Dec 2003

The Australian Accounting Standards Board (AASB) has released Exposure Draft ED 129, Disclosing the Impact of Adopting AASB Equivalents to IASB Standards.

A new Deloitte Australian Accounting Alert provides an overview of ED 129 (which would require disclosures starting June 2004) and analysis of the issues arising.

Agenda project pages updated

04 Dec 2003

We have updated our agenda project pages for the following projects to reflect discussions and decisions at the IASB's November 2003 meeting: Amendments to IAS 32 and IAS 39, Financial Instruments Business Combinations Phase I Business Combinations Phase II Improvements to IFRS Insurance Contracts Phase I Insurance Contracts Phase II Leases Reporting Comprehensive Income (Performance Reporting) Share-based Payment .

IFAC Public Sector Committee newsletter

04 Dec 2003

We have posted the latest issue of the IFAC Public Sector Committee Update Newsletter.

A section of the newsletter deals with harmonisation of International Public Sector Accounting Standards with International Financial Reporting Standards issued by the IASB. For background information on the PSC Click Here.

Changes in decommissioning and similar liabilities

04 Dec 2003

The IASB has posted on its website the Comment Letters on IFRIC D2, Changes in Decommissioning, Restoration and Similar Liabilities.

The 50 comment letters overwhelmingly supported a prospective approach to accounting for such changes. At its meeting earlier this week, the IFRIC decided to switch from the retrospective proposed in D2 to a prospective approach.

Notes from the IFRIC meeting

04 Dec 2003

Presented below are the preliminary and unofficial notes taken by our observer at the second day of the 2-3 December 2003 meeting of the International Financial Reporting Interpretations Committee.Notes from the IFRIC Meeting3 December 2003 Rights of Use The Draft Interpretation was sent to the Board.

One Board member expressed concerns on the three criteria, as they appear to be internally inconsistent. The staff has redrafted the Interpretation, and IFRIC generally agreed on the amendments. Some IFRIC members expressed concerns that the draft is still unclear as to whether the asset being accounted for is a right of use or the underlying asset.

The staff was asked to redraft the Interpretation to address those concerns. Additionally, the staff should consider the relationship of this project to the one on concession agreements.

Emission Rights (Draft Interpretation D1)

Four issues were discussed during this meeting:

  • Whether IFRIC should propose the amendment of IAS 38 to the Board.
  • Measurement of inventory.
  • Additional guidance when there is no active market.
  • Disclosure.

The staff noted that EITF is taking this topic off their agenda.

The staff proposed that IFIRC create a new category of intangible asset – intangible asset that will be used to extinguish a liability – to be accounted for at fair value if there is an active market. Though some members expressed concerns, IFRIC generally agreed with the proposal because it solves a part of the mismatch problem (change in liability to income and change in asset to equity under current IAS 38). Two members still support the net approach; however the majority view supports the gross approach. If the IASB agrees to amend IAS 38, this would require re-exposure and, therefore, this Interpretation may not be part of the 2005 "stable platform".

IFRIC agreed that the final Interpretation should not address whether emission right payments should be a component of the cost of inventory. However, there was general agreement that emission payments should not be considered a penalty (and therefore prohibited from inclusion in the cost of inventory). Also, no additional guidance will be given on how to calculate the fair value of emission rights when there is no active market. The IFRIC will not require or encourage additional disclosures requested by respondents.

Some members asked the staff to redraft the scope of the Interpretation to clarify that it would not apply to potential new emission rights schemes that are not consistent with a cap and trade scheme.

The IFRIC discussed when the allowance should be first recognised under IAS 20 – when it is received or when it becomes receivable. The staff will consider this further.


The IFRIC agreed with the staff's proposal that the lease model is the most suitable model. Some members expressed concerns about the process and asked for a timeline with expected objectives for IFRIC at each meeting.

The staff presented several examples with which the IFRIC generally agreed. IFRIC asked the staff to explore and emphasise, in the draft Interpretation, the conditions that transform a contract from being accounted for under IAS 11 to being accounted for under IAS 17 (that is, what types of services may lead to a lease contract). IFRIC asked the staff to work on the componentisation and segmentation of contracts and to explore whether some contracts should be seen as "leaseback contracts" by analogy because the "rights" could be reversed. IFRIC asked the staff to look at alternative models as well.

It was noted that the revenue recognition issue would be dealt at future meeting. The staff will come back with a new analysis at the next meeting. Given the significance of this project and the breadth of issues to be addressed, this issue should be considered a long-term project.

This summary is based on notes taken by observers at the IFRIC meeting and should not be regarded as an official or final summary.

EC comments on IAS regulation and accounting directives

03 Dec 2003

The European Commission has published the final version of a document interpreting aspects of the EU's IAS Regulation and the interaction of the Regulation with the Accounting Directives.

The formal title of the document is a long one: Comments Concerning Certain Articles of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the Application of International Accounting Standards and the Fourth Council Directive 78/660/EEC of 25 July 1978 and the Seventh Council Directive 83/349/EEC of 13 June 1983 on Accounting. Click here for Table of Contents. Click here to Download the Document (PDF 176k).

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