Agenda topics:

• Consolidation and Special Purpose Entities
• Convergence - Possible Topics for Convergence of Standards
• Leases and Related Issues
• Reporting Performance
• Revenue/Liabilities/Elements of Financial Statements
• Discussion of Potential Topics for IASB's Technical Agenda
• Updates on Critical Developments

IASB expects to publish its 400-page exposure draft on Improvements to Existing IFRS on 15 May with a comment period of approximately 120 days.

Jenkins addresses how the FASB is supporting convergence of international accounting standards:

The FASB has jointly agreed with the other standard setters and the International Accounting Standards Board (IASB) to commitments and protocols that mutually support efforts of cooperation and convergence of accounting standards that should create truly efficient global markets. Central to the FASB's participation in the development of international accounting standards is its commitment to increasing global comparability while maintaining the highest quality accounting standards in the U.S. In supporting convergence, the FASB's goal is to ensure that international accounting standards are of the highest quality. To accomplish that goal, the FASB supports the IASB as the focal point for the development of international accounting standards. The FASB intends to participate as fully as possible in the IASB's process while maintaining the highest quality standards domestically. In September 2001, the FASB and the IASB agreed to work together on a second phase of the former's business combinations project. The focus of this joint project is on procedures for applying the purchase method of accounting.

Herdman, raised the possibility that the SEC will accept financial statements from foreign registrants prepared on the basis of IFRS without reconciliation to US GAAP:

The prospect that 7,000 listed companies in the European Union member states will be satisfying their listing requirements by disseminating financial statements prepared under IAS is one that we at the SEC must give serious consideration to vis à vis our filing requirements. The following matters will influence whether the SEC will arrive at the result you all, I am sure, hope for - that we would accept those filings in the U.S.

• The standards themselves, through the IASB's existing projects on improvements, etc., as well as what I hope can be achieved through cooperative efforts between the IASB and the FASB, achieve sufficient short-term convergence.
• Infrastructure is sufficiently developed so that the standards are interpreted and applied in the manner intended with sufficient consistency across countries and firms. IFRIC alone is not enough, I believe, to accomplish that goal.
• Training of thousands of accountants and auditors who have not previously worked with IAS, keeping in mind the standards will be moving targets.
• Continued progress is made in the areas of regulatory oversight of the auditing profession and in CESR's determination of appropriate regulation of filing and other processes.

Mr. Herdman also offered his thoughts on globalisation of the world's capital markets, 'convergence' of accounting standards, and accounting reforms in the United States. Click for Full Text of Mr. Herdman's Speech.

The Commission is also proposing expanded disclosures about the initial adoption of an accounting policy. The disclosures would apply to both domestic and foreign registrants. Click for News Release. As part of its Improvements Project, IASB is expected to propose amending IAS 1 to require disclosure of key assumptions and judgements made by management in applying those accounting policies that have the most significant effect on the amounts of items recognised in the financial statements.

The draft legislation is not yet on the Committee's Website.

Hunt suggests that failure to expense the cost of stock options could result in "more capital being invested in companies that on the surface appear to be high growth earnings companies because their labor costs are not fully reflected in their financial numbers". He notes, however, that the FASB has "many more important priorities that must be addressed before it can reexamine accounting for option compensation. For example, accounting for special purpose entities and revenue recognition issues must be FASB priorities." Because the International Accounting Standards Board is currently examining this issue, Commissioner Hunt suggest that "it very well may be prudent to see what they come up with before FASB or the Commission address this issue." Link to (PDF 62k).

We have rewritten our project summaries for Business Combinations and Insurance Contracts.

IASB's recently updated project summary for its Business Combinations project indicates that the three exposure drafts expected for this project will not be issued until some time in the second half of 2002. The three EDs are for (a) a new IFRS on business combinations that would replace IAS 22, (b) a revised IAS 36, Impairment of Assets, and (c) a revised IAS 38, Intangible Assets.

We have posted updated information for cross-border listings on the 45 FIBV member exchanges and details about foreign listings on the NYSE, NASDAQ, and London Exchange.