Pitt said (click for PDF 55k:

We are inspired and encouraged by all of the cooperative efforts aimed at crafting high quality international accounting standards. While work remains to be done, we are certainly well on the road toward creating the type of standards in which investors can have confidence. Looking into the future, we also must appreciate that compatible core accounting standards will lose some of their value unless we work together toward consistency among nations in interpretation and application of these standards.

Among the changes:

• New name: International Auditing and Assurance Standards Board (IAASB).
• Revised objectives: To more clearly reflect that IAASB's goals are to develop auditing standards of high quality in the public interest.
• Expanded membership: From 14 to 18 members, including 10 from IFAC member bodies, five from international audit firms (to be proposed by the Forum of Firms), and three non-auditor representatives.
• IAASB meetings: Open to the public.
• IAASB agendas and minutes: Available to the public.
• Relationships with national auditing standard setters: A mandate to work closely, including undertaking joint coordinated projects, with the goal of convergence of standards for global acceptance.
• IAASB technical resources: Increased.

Many of these changes are similar to those adopted when IASB replaced IASC earlier this year. The changes result from a study by a special task force: Final Task Force Report (PDF 87k).

IASB will meet this coming Tuesday-Friday at its offices in London to discuss the following agenda projects:

• Business Combinations
• Financial Institutions
• First-Time Application of IFRS
• Improvements to the Following IFRS: -- IAS 21, The Effects of Changes in Foreign Exchange Rates -- IAS 23, Borrowing Costs -- IAS 33, Earnings per Share
• Insurance Contracts
• Amendments to IAS 39, Financial Instruments: Recognition and Measurements

Click to download (PDF 499k) and (PDF 398k).

This batch includes 17 Q&A; and two examples. One of the examples addresses the particularly difficult issue of applying hedge accounting when a bank or other financial institution manages its interest rate risk on an enterprise-wide basis. Another example focuses on internal derivatives. IASB has indicated that IGC has not scheduled further meetings. IASB is developing some amendments to IAS 39.

The study highlights instances where a country's rules either do not allow or do not require the IAS accounting treatment. Approximately 60 countries will be included in the report for 2001, compared to 53 in the 2000 report. Also, the revised report will cover approximately 80 accounting and disclosure requirements, compared to 60 in the 2000 report. The new report is expected to be released in December 2001. Here is More Information about IFAD including the complete GAAP 2000 Report in PDF format.

The sections deal with the scope of the project, definition of an insurance contract, recognition and derecognition principles, and measurement objectives. The DSOP was developed by a steering committee for consideration by the IASB. While the draft is not a formal IASB discussion document, IASB has invited those who wish to comment to send their views directly to the project manager. You can download the draft on IASB's Website. IASB plans to post further sections of the DSOP as drafting is completed.

Click to Download the Amended Directives (PDF 118k). Under the revised directives, originated loans, held-to-maturity investments, and non-derivative/non-trading financial liabilities must be carried at amortised cost. We maintain a comprehensive European Resource Page documenting recent IAS-related events in Europe. We have just added to that page links to the Lists of Members of the new European Securities Committee and European Securities Regulators Committee.

 

IFAC comprises 153 professional accountancy bodies in 113 countries.

Staff will discuss individually with board members to try to convince them that IASB should reconsider its tentative decision at its October meeting to measure consideration at "exchange date".

D29 (Service Concessions): Agreed to some minor editorial changes.

D30 (Presentation Currency): Agreed to the consensus basically as drafted. There was considerable debate about using end-of-period rates vs. average rates. There was no debate about restatement in the situation of hyperinflation.

D31 (Barter Transactions): Agreed to the consensus basically as drafted. Agreed to keep "occurs frequently" but confirmed deletion of "expected to continue to occur".

D32 (Website Costs): Agreed to consensus but reverted back to the original draft instead of applying it based on an incremental, marginal approach.

D33 (Potential Voting Rights, or PVR): Agreed to consensus as drafted. Agreed to clarify that PVR is one of many considerations in assessing whether control exists. Agreed that unless the PVR is considered in substance a financing transaction (for instance, A sells 20% of its investment in B to C and enters into a forward to buy it back at a fixed price, in which case the amount under the forward is part of A's ownership in consolidation, not minority interest), the forward or option while it is outstanding is a derivative under IAS 39.

D34 (Puttable Instruments): Confirmed the consensus but agreed to delay for one year the effective date for certain enterprises