NOTES FROM IASCF TRUSTEES MEETING 9 MARCH 2004
IASB Chairman's Report
IASB Chairman Sir David Tweedie reported on current projects and application of IFRS in 2005. He also provided details of the ongoing discussions on financial instruments. Those included:
- Fair value option. Sir David discussed the proposed IASB exposure draft resulting from the European Central Bank's request to limit the use of the fair value option. He said that the ECB is concerned about the reliability of the fair value measurement, particularly for liabilities.
- Macro hedging. He noted that the IASB is in ongoing discussions with the banking community, which had recently proposed an alternative solution to the one in the IASB Exposure Draft. This was being considered, but as it was unlikely to be finalised in time, the exposure draft would be finalised in its current format and discussions would continue.
Sir David noted that the IASB has issued two new standards:
- First-time Adoption of IFRS. He noted that this had been well accepted and that the Board has received only a few queries on its application.
- Share-based Payment. He noted that FASB would be publishing an exposure draft with similar proposals. The IASB would look at the comments received, and it is intended that ultimately the standards would be similar.
He provided details as to convergence activity both at the IASB and at other standard setters. In response to a question Sir David stated that the goal in achieving convergence with the US was 2007.
Sir David noted that the IASB would be issuing a document on "due process" for public comment.
Constitutional Review
The IASCF Constitutional Committee has met to begin consideration of the comments received. Various themes arising from the comments were mentioned but were not discussed. The Constitutional Committee will develop proposals for discussion with various groups prior to presenting the proposals to the trustees towards the end of the year. Further details as to the procedures will be announced on the IASB's website in due course.
Education Programme
The Trustees noted and reaffirmed a previous decision to form an Education Advisory Group. This would not be a technical group but would advise the education director on:
- Educational needs with regard to international financial reporting.
- Priorities in the IASCF's educational work.
- Markets for the IASCF's educational products and services.
- The means of delivering IASCF's educational products and services.
- Potential partners the IASCF could collaborate with on educational work.
- The educational quality of IASCF's educational products and services.
The Trustees approved the above terms of reference. It was agreed that the education director would chair the group.
The group will have a geographically diverse membership of 6 to 10 persons. The members will not be drawn from organisations involved in providing materials to the IASCF or directly to the market. Therefore, the large audit firms will not be on the group. The Trustees will consider, at their next meeting, proposals from the Education Committee as to membership of the advisory group.
The education director presented details of summaries of individual standards that will be produced. It is intended that these would be used by CFOs to inform CEOs and Board and Audit Committee members. It was noted that these would not be reviewed by the IASB Board and would contain a disclaimer.
This summary is based on notes taken by observers at the IASB meeting and should not be regarded as an official or final summary.
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