Notes from the October 2008 IASC Foundation Trustees' meeting

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12 Oct 2008

The Trustees of the IASC Foundation (IASCF), under which the IASB operates, met in Beijing, China in public session on 9 October 2008.

A few key items:
  • Trustees had been expected to consider the comments received to Phase 1 of the Constitution Review – relating to the proposed Monitoring Group and the size and composition of the IASB. However, the analysis of comments was not yet complete, and discussion was deferred.
  • Regarding Phase 2 of the Constitution Review, Trustees agreed to publish a consultation document inviting comment on which issues should be addressed in Phase 2, for a 120-day comment period, without waiting for completion of Phase 1. The detailed notes downloadable above identify some of the issues that will be proposed for inclusion.
  • Trustees issued a Press Release (PDF 179k) expressing their unanimous support for the approach that the IASB Announced on 3 October 2008 to accelerate its response to the credit crisis, including suspension of normal due process to eliminate certain differences with US GAAP.
  • Trustees approved an update to the IASB Due Process Handbook.
  • The report of the IASB Chairman was divided into two main sections: (a) IASB response to the credit crisis and (b) updating of the IASB-FASB Memorandum of Understanding. Response to the credit crisis will include 'very fast-track' amendments on:
    • consolidation,
    • derecognition,
    • financial instruments disclosures, and
    • reclassifications out of fair value through P&L.
  • Trustees received a report on the IFRS for Private Entities (SMEs) and expressed strong support for the project.
  • Trustees decided that whether the IASB should establish formal cooperative relationships with bodies that set standards other than accounting standard should be an issue in Phase 2 of the Constitution Review, though Trustees' initial reactions were negative.
  • Regarding funding, £14 million of funding for 2008 has been raised out of a budget of £16 million. Due to the current global credit crisis, there is a risk of loss of funding to IASCF of approximately £500,000 due to attrition of donors.

Click here do download the Notes Taken by Deloitte Observers at the Meeting (PDF 78k).

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