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IASCF trustees meet in Tokyo 18-19 January 2007

  • IASC Foundation (blue) Image

23 Jan 2007

The trustees of the International Accounting Standards Committee Foundation met on Thursday and Friday, 18 and 19 January 2007, in Tokyo.

A portion of the meeting on 18 January was open to public observation:

Summary of Discussion

Public Portion of IASCF Meeting, 18 January 2007

  • Financial Statement Presentation. IASB representatives explained that improvement of financial statement presentation is being done in three phases. The exposure draft of Phase A was released in March 2006, and a final standard will be issued in the second quarter in 2007. The exposure draft of Phase A allows either a single-statement approach or two-statement approach for reporting results of operations. Representatives of IASB noted that, under the two-statement approach, determining which items of income and expense should be excluded from determination of net income is arbitrary, and sometimes net income has been manipulated by financial statement preparers. Therefore, the Board would like to move to a single statement of comprehensive income and eliminate the two-statement approach – even though the two-statement approach is widely supported by industry. Some IASCF members expressed the view that both preparers and users of the financial statements are still much concerned about net income. The IASCF members advised that IASB needs to make another field survey before they reach the final conclusion to eliminate the two-statements approach and move to a single statement of comprehensive income. Representatives of IASB agreed with them.
  • Conceptual Framework. Representatives of IASB confirmed that the Conceptual Framework is intended as a guide not only for the IASB in setting standards but also for preparers and users to assist them in practice how to follow the theory where no specific accounting pronouncement addresses a situation.
  • Insurance. This project is now in Phase II, for which a Discussion Paper is expected in first quarter 2007. The key issue is how best to measure future cash inflows and outflows for the purpose of recognising insurance income and insurance liabilities.

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