The Committee discussed:

• Development of a DPOC protocol
• Post implementation review planning
• Agenda consultation
• Meeting with the representatives of the Financial Accounting Foundation (FAF)
• Effect analysis
• Due process oversight of standards
• Review of the effectiveness of the IFRS Foundation Interpretations Committee
• Emerging Economies Group

Please click here to read the notes on the IFRS Foundation's website.

• Thursday, 4 August 2011 – Update on the general hedge accounting project Webcasts will be held at 10.00am and 4.00pm, London time. Registration is available through the IASB's website.

The IFRS in Focus Newsletter provides an overview of the IASB's Agenda Consultation 2011 (see also our earlier story), noting the important enhancement it provides to the IASB's due processes:

The agenda consultation reflects that, for the first time in its history, the IASB is able to look at its agenda in a comprehensive and critical manner. In the past it has always been playing catch-up, dealing with inherited issues following IOSCO directives, the issues following European transition in 2005, the convergence issues with US Standard-setters and the financial crisis agenda. Now the IASB can set its own agenda based on the needs of stakeholders.

Click for IFRS in Focus — IASB issues request for views on agenda consultation (PDF 67k).

• Subsidiaries, associates and joint arrangements
• Fair value measurement
• IAS 1 and IAS 19
• UK developments
• Other IFRS developments

Thursday, 28 July 2011

• Revenue Recognition
  • Transition relief for first-time adopters of IFRSs
• Financial Instruments – Hedge Accounting
  • Designation of Risk Components
  • Use of Credit Derivatives
  • Disclosure Requirements
  • Linked Presentation for Fair Value Hedges
  • Own Use Contracts
• Financial Instruments – Effective date of IFRS 9
  • Sweep issues related to the exposure draft
• Asset and Liability Offsetting
  • Effective date/transition

Click here to go to the preliminary and unofficial Notes Taken by Deloitte Observers for the entire meeting.

The report provides an overview of joint venture activity in various jurisdictions and industry sectors, outlines the effects of IFRS 11 on financial statements, provides a cost benefit analysis and compares IFRS 11 with US GAAP requirements.

The summary section of the report notes:

• On the basis of the data gathered by the IASB, the IASB believes IFRS 11 will not lead to a change for a large number of the arrangements within the scope of the IFRS. This is because most joint arrangement activity is dealt with through arrangements that do not involve the establishment of an entity and, as a result, parties will continue recognising assets, liabilities, revenues and expenses arising from those arrangements as they did when applying IAS 31
• The IASB expects that most of the arrangements structured through 'separate vehicles' will be 'joint ventures'
• IFRS 11 will lead to changes for those entities currently using proportionate consolidation when accounting for joint ventures (the IASB estimates this is approximately half of the entities with interests in jointly controlled entities). To a lesser extent, IFRS 11 will also lead to changes for entities with interests in those jointly controlled entities that will be classified as 'joint operations' in accordance with IFRS 11 and that are currently being accounted for using the equity method
• The IASB's assessment is that IFRS 11 will bring significant and sustained improvements to the reporting of joint arrangements, by reflecting the underlying economics of the arrangements and requiring disclosure of better information about an entity's involvement with joint arrangements
• The IASB believes the improvements in terms of comparability and transparency outweigh the costs involved in applying IFRS 11. The most significant costs for preparers will occur at transition, due to the assessment of existing joint arrangements and explaining changes to users.

The IASB expects the report will useful to jurisdictions which prepare regulatory impact assessments as part of their process of adopting IFRS 11. Click for 'Effect analysis – IFRS 11 Joint Arrangements and disclosures for joint arrangements included in IFRS 12 Disclosure of Interests in Other Entities' (link to the IASB website, PDF 252k).