AASB interpretations plan
24 Jun 2006
The Australian Accounting Standards Board (AASB) has adopted an interpretations model that interacts with the International Financial Reporting Interpretations Committee (IFRIC) to provide guidance to Australian constituents in the context of the formal adoption of International Financial Reporting Standards (IFRSs) in Australia, while maintaining a capacity to deal with issues relating to purely domestic Standards.
The new model will apply from 1 July 2006. Under the new model, the AASB will have direct responsibility for Interpretations, replacing the existing Urgent Issues Group. Under the new model:
- An Interpretations Agenda Committee (IAC) will consider issue proposals and recommend that either AASB do nothing or AASB refer the issue to IFRIC.
- For all issues dealt with by the IFRIC, the AASB will decide whether to adopt IFRIC's interpretation locally.
- If AASB refers an issue to IFRIC but IFRIC declines to address the issue, the AASB will decide whether to add the issue to the AASB's own work programme.
- For each issue that the AASB takes on, the AASB will form an Advisory Panel. The panel will prepare alternative views and, where appropriate, recommendations for consideration by the AASB.
- The AASB's due process will include publishing the recommendations of a panel on the AASB's website, followed by public exposure of a proposed AASB Interpretation, before the AASB considers it for formal adoption.