The Trustees of the IFRS Foundation, the body responsible for the governance and oversight of the International Accounting Standards Board (IASB), discussed the following topics:

• Report of the Chairman of the IASB concerning the four main Memorandum of Understanding (MoU) and convergence projects as well as the progress the IASB was making in determining its future agenda.
• Report of the Chairman of the IFRS Advisory Council on the issues discussed at the June 2012 meeting of the Council and the draft Due Process Handbook.
• Report of the Chairman of the Due Process Oversight Committee on initial feedback received on the draft Due Process Handbook, which is being exposed for public comment, and on the comprehensive review of the IFRS for SMEs.
• Update on the IFRS for SMEs
• Regional outreach activity on whether and how to incorporate IFRSs into the US financial reporting regime.
• Meeting with the IFRS Foundation Monitoring Board regarding the progress made in following up the recommendations of their respective reviews of the governance and strategy of the organisation.

Please click for the full summary on the IASB's website. The next meeting of the Trustees of the IFRS Foundation is scheduled for 12 October 2012.

You can also access the preliminary and unofficial notes taken by Deloitte observers for this meeting.

The IVSC had previously issued a Guidance Note, GN 12 The Valuation of Trade Related Property and had issued an exposure draft which proposed to update and reissue the guidance as part of its revamped valuation standards, which were ultimately issued in July 2011.

However,  the IVSC chose not to finalise the valuation standard on this topic because there were questions whether sufficient guidance on trade related property was already included in other valuation standards, a perceived confusion of a real property interest with a business, and the need to consider the need for specific valuation guidance of this type.

The discussion paper seeks constituent input as to whether it is practical and necessary to define a distinct category of real property for valuation purposes based on the degree to which the buildings or any other structures are specialised, and explores various issues in undertaking such a valuation.

The IVSC is seeking comments on the Discussion Paper by 31 October 2012.  Click for:

• IVSC press release (link to IVSC website)
• IVSC Discussion Paper The Valuation of Trade Related Property (link to IVSC website).

Before it is implemented, the proposed decision-making framework must be agreed upon by both the FASB and the PCC. As reported earlier, the PCC was established by the Financial Accounting Foundation (FAF) to to improve the process of setting accounting standards for private companies following US GAAP. Working with the FASB, and guided by the framework, the PCC will determine whether exceptions or modifications to existing non-governmental US GAAP are necessary to address the needs of users of private company financial statements. The PCC will then identify, deliberate, and vote on any proposed changes. These changes will be subject to endorsement by the FASB and then submitted for public comment before they can be incorporated into GAAP.

The recommendations contained in the Invitation to Comment reflect what stakeholders told the FASB staff about their experiences using, preparing, auditing, reviewing, and compiling private company financial statements. The staff identified six significant factors that differentiate private companies' financial reporting considerations: types and number of financial statement users, access to management, investment strategies, ownership and capital structures, accounting resources, and learning about new financial reporting guidance.

The Invitation to Comment also seeks feedback on five areas where financial accounting and reporting guidance might differ for private and public companies: recognition and measurement, disclosures, display (presentation), effective dates and transition methods.

The Board will not deliberate the topics in the Invitation to Comment until after it has received stakeholders' input on the preliminary recommendations and all members of the PCC have been appointed. The FASB and PCC will then jointly reach tentative conclusions about the criteria to be included in the framework.

Feedback on the FASB's Invitation to Comment is due by 31 October 2012.

Please click for:

• The press release to access the Invitation to Comment on the FASB's website.
• Deloitte (United States) Heads Up newsletter on the private-company decision-making framework discussion paper.
• FASB webcast on the private company decision-making framework project, held on 14 September 2012.

Each update lasts no more than an hour, and sessions are normally held three times a year, approximately at the end of March, July, and November. We intend to make a recording of each session available on IAS Plus for a period of at least four months from the date of the presentation.

The following topics were covered in the July 2012 webcast:

• Latest IFRS developments
• Other UK reporting developments
• Eurozone uncertainties
• The future for financial instruments

To access the recording click here.

The PIR process conducted by the FAF is independent of the standard-setting process of the FASB.  This differs from the PIR process for IFRSs where only the IASB conducts the PIR; there is no independent reviewing organisation.

The IASB expects to begin its PIR on business combinations (IFRS 3) later this year. The IASB and FASB worked together in developing their business combination standards as part of their convergence efforts. However, it is unclear at this time the extent to which the IASB and the FASB will coordinate their PIR processes.

More information on the FAF post-implementation review of Statement 141R is available on the FAF website.

The questionnaire developed by EFRAG and OIC focuses on the value to users of financial reporting based on the current requirements for the impairment test of goodwill (IAS 36). It is aimed to provide input for the post-implementation review in relation to the assessment of the current prohibition to amortise goodwill, which was a contentious issue when introducing IFRS 3 Business Combinations.

Interested parties are invited to complete the questionnaire before 30 September 2012. It is available through the press release on the EFRAG website.

The DPOC is responsible for approving due process and overseeing the IASB’s compliance with due process, and reviewing the Trustees’ fulfilment of their oversight function in accordance with the Constitution of the IFRS Foundation.

Please click for a summary of the meeting (link to IASB website).

The newsletter contains a summary from the EFRAG meetings held in July 2012. Highlights were the finalisation of the draft endorsement advice in relation to the amendments to IFRS 10 (transition guidance), the finalisation two draft comment letters to the IFRS Interpretations Committee (on levies and on put options) and the finalisation of EFRAG's comment letter on the IFRS Interpretations Committee rejection notice in relation to the restructuring of Greek government bonds.

Click for the EFRAG Update (link to EFRAG website).

On 19 July 2012, the International Accounting Standards Board (IASB) initiated the public consultation phase of IFRS 8 Operating Segments post-implementation review (PIR) process by publishing for comment a Request for Information (RFI) on the effect of implementing the standard.

In order to support the IASB, EFRAG encourages European users to complete the questionnaire published by the IASB. However, EFRAG has also developed a supplemental questionnaire that European constituents can use to share their practical experiences with IFRS 8. EFRAG would also like to receive examples of practices that are perceived as particularly noteworthy. EFRAG will use evidence supplied by constituents as the basis for its response to the IASB and as basis outreach events to be organised in partnership with the National Standard Setters and with the participation of the IASB.

Please click for more information and access to the questionnaire in the press release on the EFRAG website.