The draft working paper, The international politics of IFRS harmonization, draws on field studies in Canada, China and India to derive a 'framework' to analyse how international politics can shape a specific country's strategies with IFRS adoption. Whilst international politics is not the only or even the deciding element in understanding the growth of IFRS, the author of the paper argues it is likely to be important.

The paper outlines two principal dimensions that can be used to characterise the response by a specific jurisdiction to IFRS:

• proximity to existing political powers at the IASB
• the jurisdiction's own potential political power at the IASB.

Jurisdictions are classified as either 'high' or 'low' in each dimension, which then produces a matrix of predicted responses to IFRS. The table below summarises these outcomes, along with cited examples of countries falling in each category:

The paper explores the major political challenges for the IASB, the way forward for the IASB and the theoretical implications of the international political dynamics of IFRS harmonisation. In particular, the paper explores the interplay between the current debates around 'convergence versus adoption' and the IASB's expanding geographical diversity away from its traditional European power base to include emerging powers such as China. In addition, the paper argues restructuring the IASB's structure to include fewer Americans may temper enthusiasm for IFRS in the United States, which ironically may make IFRS less attractive worldwide.

Click to access the draft working paper (link to SSRN). We have posted this article with the kind permission of the author, Karthik Ramanna.

In summary terms, the exposure draft proposes:

• criteria for an entity to qualify as an 'investment entity' (see below)
• an investment entity to measure its investments in controlled entities at fair value through profit or loss in accordance with IFRS 9 Financial Instruments (exceptions would apply to investees providing services that relate only to the entity's own investment activities, and investment entities that take control of collateral as a result of defaults related to its investments)
• additional disclosures to enable users to evaluate the nature and financial effects of its investment activities
• not to permit a parent of an investment entity to retain fair value accounting applied by its subsidiary, unless the parent itself qualifies as an investment entity, i.e. the parent would consolidate all entities in the group
• amendments to IAS 28 Investments in Associates and Joint Ventures to require an investment entity to measure its investments in associates and joint ventures at fair value through profit or loss in accordance with IFRS 9 (replacing the concept of 'venture capital organisation, mutual fund, unit trust and similar entities' with 'investment entity')
• entities which apply the investment entity guidance early would also be required to apply all aspects of IFRS 10, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 (as amended in 2011).

The IASB is undertaking this project jointly with the FASB with the objective of improving existing US GAAP requirements and achieving convergence in the accounting for these types of entities. The FASB is expected to issue equivalent proposals shortly.

Comments on the exposure draft are due by 5 January 2012. Click for:

• Press release (link to IASB website)
• Exposure Draft ED/2011/4 (link to IASB website)
• Our Consolidation project page

• 24 August 2011 — Patricia McConnell: Benefits of the IASB's recent revisions to pension accounting

All Investor Perspectives are archived on the IASB's website.

• Sustainability reporting — This webcast will discuss the significant progress being made in global efforts to develop integrated sustainability reporting guidelines, covering the work of the International Integrated Reporting Committee (IIRC), the Global Reporting Initiative (GRI), Carbon Disclosure Project, and other topics
• Leases project — This webcast will discuss recent deliberations and tentative decisions of the IASB and FASB in the leases project, how the boards' decision to re-expose their proposals will impact the timeline to finalise the project, and the boards' next steps.

Full details of the webcasts are provided below:

• Hebrew translations of the 2010 IFRSs, the Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets, the Amendments to IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters, the Amendments to IFRS 7 IFRS Disclosures – Transfers of Financial Assets and the Improvements to IFRSs published by the IASB in May 2010.
• French translations of the the Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets, the Amendments to IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters, the Amendments to IFRS 7 IFRS Disclosures – Transfers of Financial Assets, IFRS 9 (2010) Financial Instruments and the Conceptual Framework (as of September 2010).
• Spanish translations of the June 2011 Amendments to IAS 1 Presentation of Financial Statements and of IFRS 10 Consolidated Financial Statements.

All translations are available on the IASB's New and revised standards webpage (eIFRS subscribers only).

Click for more details (link to IASB website). Our dedicated XBRL page is Here.

The IASB considered a project proposal on intangible assets at its December 2007 joint meeting. The IASB decided that although a project on intangible assets was not urgent, it was an important project that should remain on the research agenda and asked the IASB staff to discuss the future of the project 'offline' with AASB staff and other national standard setters. In addition, the IASB Chairman at that time suggested that the research continue under the aegis of the National Standard Setters (NSS) group, with the IASB being involved through its usual representation as part of this group.

The survey of financial statements users follows on from a similar survey of preparers, advisors, auditors and regulators launched earlier this year and a separate Discussion Paper on intangible assets released in November 2008.

The survey is open until 15 December 2011. Click for access to the AASB survey (link to external website). More information is available in this AASB press release (link to AASB website).

In a pre-budget submission to the Canadian House of Commons Standing Committee on Finance, the CBA notes that one of the most significant challenges for the Canadian banking sector over the next few years will be the implementation of numerous global and domestic regulatory, capital and liquidity reforms (such as Basel III). The submission argues too rapid an adoption of reform may place Canadian banks at competitive disadvantage, noting the implementation of other reforms as well as Canada's current transition to IFRSs:

Click for CBA submission (link to CBA website) and our Canada country page.