The FASB and the IASB Solicit Views on Effective Dates and Transition Methods for Major Projects
Today, the FASB and IASB issued a discussion paper and a request for views, respectively, to solicit perspectives from interested parties (including preparers of financial statements, auditors, users of financial statements, standard setters, market regulators, and others) about the time and effort that will be involved in adapting to several new standards and about when those standards should be effective. Comments are requested by January 31, 2011.
According to Leslie F. Seidman, acting chairman of the FASB, “Our joint workplan supporting the Memorandum of Understanding with the IASB identifies targeted completion dates for various projects, but does not address when the standards would be effective. We issued this Discussion Paper to gather the information we need to create a realistic, cost-effective plan for transitioning to the new standards.”
The table below outlines standards being developed jointly by the FASB and IASB on which input has been requested:
| FASB's Discussion Paper | IASB's Request for Views | ||
|---|---|---|---|
| Project | Status | Project | Status |
| Accounting for financial instruments and revisions to the accounting for derivative instruments and hedging activities, including netting of financial instruments | Exposure draft issued in May 2010 | Financial instruments (IFRS 9) | Phase 1 (classification and measurement) will be completed in October 2010. Phase 2 (impairment methodology) and phase 3 (hedging) are under development. The phase 2 exposure draft was issued in November 2009, and the phase 3 exposure draft will be issued in Q4 2010. |
| Revenue from contracts with customers | Exposure draft issued in June 2010 | Revenue from contracts with customers | Exposure draft issued in June 2010 |
| Leases | Exposure draft issued in August 2010 | Leases | Exposure draft issued in August 2010 |
| Insurance contracts | Discussion paper issued in September 2010 | Insurance contracts | Exposure draft issued in July 2010 |
| Comprehensive income | Exposure draft issued in May 2010 | Presentation of items of other comprehensive income — proposed amendments to IAS 1 |
Exposure draft issued in May 2010 |
| Financial instruments with characteristics of equity | Exposure draft has not yet been issued | ||
| Financial statement presentation (including discontinued operations) | Exposure draft has not yet been issued | ||
| Fair value measurement | Exposure drafts issued in May 2009 and June 2010 | ||
| Postemployment benefits — defined benefit plans — proposed amendments to IAS 19 |
Exposure draft issued in April 2010 | ||
