No new major IFRSs will be effective until 2009

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25 Jul 2006

The IASB has announced a number of steps to assist jurisdictions and entities in adopting IFRSs and to enhance its consultation processes.

The most significant announcement is that no new IFRSs will be effective until 2009. Following consultation with the Trustees of the IASC Foundation, the Standards Advisory Council, and a wide range of interested parties, the IASB has agreed to the following:

IASB 'Quiet Period' Until 2009

  • Increased lead time to prepare for new standards: The IASB recognises that many countries require time for translations and implementation of new standards into practice and, where IFRSs are legally binding, into law. To accommodate the time required, the IASB intends to allow a minimum of one year between the date of the publication of wholly new IFRSs or major amendments to existing IFRSs and the date when implementation is required.
  • Increased opportunity for input on conceptual issues: The IASB and the FASB have agreed to publish discussion papers, rather than moving directly to exposure drafts, on the individual sections of their Conceptual Framework project. The IASB announced at its meeting in June that it will also publish a discussion paper as the next step of its Fair Value Measurement project, which is aimed at providing consistency in the application of existing fair value requirements. The decision to use discussion papers as part of these projects means that there will be at least two opportunities for public comment.
  • Public round-tables on key topics: The IASB will hold public round-table discussions in the near future on two key topics on which constituents have expressed particular interest.
    • The first is the proposed amendments to the recognition and measurement principles in IAS 37 Provisions, Contingent Liabilities and Contingent Assets. These round-tables will be held in November and December of this year.
    • The second is the measurement phase of the Conceptual Framework project. Discussions will focus on the range of possible measurement attributes, including cost and fair value, that could be used both at initial recognition and subsequently. The round-tables will be held in the first quarter of 2007.
  • No new major standards to be effective before 2009: Consistently with the steps described above, the IASB will not require the application of new IFRSs under development or major amendments to existing standards before 1 January 2009. The establishment of 2009 as the first date of required implementation of new standards will also provide countries yet to adopt IFRSs with a clear target date for adoption. By refraining from requiring new standards to be applied before 2009, the IASB will also be providing four years of stability in the IFRS platform of standards for those companies that adopted IFRSs in 2005. The establishment of this approach does not preclude the publication of new standards before that date, and companies would be permitted to adopt a new standard on a voluntary basis before its effective date. Interpretations and minor amendments to deal with potential issues identified during implementation would not be subject to this approach.
Click for IASB Announcement (PDF 62k).

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