Topics discussed during the DPOC meeting were:

Update on technical activities

Updates were given on the progress of the major projects as well as implementation and maintenance projects on the IASB's work plan.

• Regarding hedge accounting, the DPOC noted that the project had been completed and final guidance had published in November 2013.
• On the classification and measurement project, the DPOC was informed that joint deliberations by the IASB and the US Financial Accounting Standards Board (FASB) had started in September 2013 but that the FASB, at its December 2013 meeting, had reached decisions that would mean the FASB would at least partially abandon convergence on this project. IASB representatives present at the DPOC meeting acknowledged that the situation was unfortunate and stated that the IASB would consider the position taken by the FASB at its February 2014 meeting.
• Regarding the impairment project, the DPOC was reminded that the prospect of convergence with the US was unlikely as the FASB, at its meeting in December 2013, had elected to proceed with its own expected credit losses model. The DPOC had questions regarding the differences between the IASB and the FASB model and especially what the views of the Financial Stability Board (FSB) were. The DPOC was informed that the FSB now accepted that there would not be convergence on impairment, but wanted to see the impairment proposals in place as soon as possible.
• On macro hedging, the DPOC was told that the IASB would shortly publish a Discussion Paper with an extended comment period as the issue is so complex.
• Regarding leases, the DPOC noted that there remained considerable concern among the constituents about the cost and complexity of the proposals in the second ED. They were informed that boards had started their redeliberations in January 2014 and hoped to reach decisions on major issues in March 2014. On the question of convergence, the IASB representatives noted that the risk of divergence could not be ruled out. They also pointed out that if important decisions could be reached in March 2014, an IFRS could be issued as early as beginning of 2015.
• For revenue recognition, the DPOC was informed that the proposed new Standard was in the process of being balloted and was expected to be issued in the first half of 2014. The suggested membership of the joint IASB/ FASB Implementation Group would be brought to the DPOC for its review before being announced.

Other major projects discussed insurance contracts and the conceptual framework.

The implementation and maintenance projects the DPOC was updated on were the disclosure initiative, bearer plants, proposed amendments to IFRS 11 and IAS 28 and the post-implementation review of IFRS 3. The DPOC also queried the decision by the Interpretations Committee not to add to its agenda a request to clarify IAS 19 regarding the discount rate. The IASB representatives noted that the issue of discount rates was a cross-cutting one and that a broader project on the issue had been added to the research programme.

IFRS 14 'Regulatory Deferral Accounts'

The DPOC received a report on the lifecycle of the due process to date on the project to develop an interim IFRS on the issue of rate-regulated activities. The DPOC challenged the IASB's decision to press ahead with the issue of an interim IFRS and asked whether the interim IFRS would result in less comparability, whether the interim IFRS raised an issue of fairness in being restricted to first-time adopters, after the significant level of resistance that the proposals had received, and the length of time the interim IFRS would remain in force, in particular if the main project on rate-regulated activities took a long time to complete. In discussion, the DPOC acknowledged the IASB's rationale for reaching the decisions it had on the interim IFRS but expressed the hope that such situations would be rare and temporary.

XBRL

The DPOC received an update on the previously approved plan of the IASB to restructure staffing and consultative activities related to electronic reporting. In particular, theses relate to: (1) the proposed changes to the due process for updating the IFRS Taxonomy and (2) proposals to replace the XBRL Advisory Council (XAC) and XBRL Quality Review Team (XQRT) with a single consultative group.

Update on consultative groups

The DPOC received an update on a number of consultative groups following the annual review that had been considered by the Committee at its July 2013 meeting: The Accounting Standards Advisory Forum (ASAF) remains very active, not least given its role as the consultative group on the conceptual framework project; the Capital Markets Advisory Committee (CMAC) will see a revised membership from the beginning of 2014 and efforts continue to broaden its membership in terms of both professional background and geographical representation; of the project-specific consultative groups (financial instruments, leases and insurance) none had held formal meetings for some time but the DPOC agreed with the staff's view to continue the three groups as lists of experts that the IASB could call on to get specific advice; the consultative group on Shariah-compliant Instruments and Transactions now features an expanded the membership as proposed at the DPOC's October 2013 meeting. The DPOC was also updated on the progress of the IASB's proposal to increase the size of the SMEIG to 30 members as from July 2014 and considered and approved proposals to amend the SMEIG's Terms of Reference and Operating Procedures.

Reporting of Outreach and Fieldwork and review of correspondence

The DPOC received an update on the staffs continuing efforts to improve the transparency of the reporting of feedback from outreach with investors and other users of financial statements and the reporting of the results of fieldwork undertaken on particular projects. The DPOC also noted that no new correspondence cases had been submitted since the October 2013 meeting.

Please click for the full summary of the meeting on the IASB's website.