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September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
September 2008 © 2008 IASC Foundation. 30 Cannon Street ...
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September 2008 © 2008 IASC Foundation. 30 Cannon Street ...

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  • 1. September 2008 International Financial Reporting Standards Implementation Update Progress and plans Tricia O’Malley The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation or the IASB © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 2. IASB implementation activities 2 • Working with adopting countries • Participating in/liaising with implementation groups • IFRIC • Annual improvements project © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 3. Groups and standard setters 3 • Implementation activities governed by Statement of Best Practice – Develop joint proposals on common problems requiring interpretation – Be familiar with implementation in jurisdiction – Submit issues needing interpretation to the IFRIC © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 4. September 2008 International Financial Reporting Standards IFRIC process The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation or the IASB © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 5. IFRIC due process handbook 5 • Identification of issues • Setting the agenda • Meetings and voting • Development of a draft interpretation • Comment period and redeliberation © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 6. Agenda setting 6 • No Agenda Committee • All issues submitted are discussed by IFRIC in public based on staff analysis • Publish reasons for not adding issue to agenda © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 7. Agenda criteria 7 • Widespread and practical relevance • Significant divergence (existing or emerging) • Improved financial reporting • Efficient, cost-effective resolution • Reach consensus on a timely basis • No current IASB project will be completed before IFRIC could respond © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 8. Communication 8 • Observer notes – all IFRIC papers • Webcasting – live and archived by topic • IFRIC Update – decision summary published one week after meeting • Website – project summaries © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 9. Solutions to implementation questions 9 • Explain via IFRIC agenda decision – reasons for not adding to IFRIC agenda • Develop IFRIC interpretation • Change existing standard – Annual Improvements project • Include in a current IASB project © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 10. September 2008 International Financial Reporting Standards Recent activities The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation or the IASB © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 11. 2007 Interpretations 11 IFRIC 13 Customer Loyalty Programmes IFRIC 14 Defined Benefit Assets and Minimum Funding Requirements © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 12. 2008 Interpretations 12 IFRIC 15 Arrangements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in a Foreign Operation © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 13. IFRIC 15: Issue 13 • Is the arrangement : – a construction contract (IAS 11)? or – a sale of goods (IAS 18)? © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 14. IFRIC 15: Consensus 14 • To be construction contract, buyer must be able to specify major structural elements • Contract may result in continuous transfer but not meet definition of construction contract – in IAS 18 but use % of completion • D21 said either was construction contract © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 15. IFRIC 15: Other items 15 • Changes from D21 – added flowchart to illustrate application of consensus and how contract segmenting requirements fit – added new examples • Effective 1/1/09 – retrospective © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 16. IFRIC 16: Issues 16 • Which entity(s) can hedge a net investment? • Where within the group can the hedging instrument be held? • How to measure ineffectiveness • Reclassification to P+L on disposal © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 17. IFRIC 16: Consensus 17 • Parent can hedge risk of net investment held indirectly • Only functional currencies are eligible risks • Any entity in the group can hold the hedging instrument • Maximum amount hedged can be carrying amount of net investment in parent designating hedge © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 18. IFRIC 16: Consensus continued 18 • Ineffectiveness measured in relation to functional currency of relevant parent • On disposal reclassify to P+L – Amount identified by IAS 39 for hedging instrument – Amount in parent’s FCTR for that foreign operation (may depend on consolidation method) © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 19. IFRIC 16: Other items 19 • Changes from D22 – application guidance added on designation and effectiveness • Effective 1/10/08 – discontinue non-compliant hedges prospectively © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 20. 2008 draft interpretations/ED 20 IFRS 2 and Group Cash-settled Share-based IFRIC 11 Payments DC 23 Non-cash Distributions to Owners DC 24 Customer Contributions • Comment periods closed • IFRIC/Board redeliberating © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 21. IFRS 2 and IFRIC 11 21 • Issue: – Subsidiary receives services and issues share-based payment that will be settled in cash by another group entity • Conclusion: – amend IFRS 2 to clarify these arrangements are included and apply IFRIC 11 © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 22. D23 22 • Issue: – How should distributions be measured? • Conclusions: – Recognise dividend payable at fair value of assets to be distributed – Recognise gain on settlement in P+L – If asset distributed is a discontinued operation, apply IFRS 5 © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 23. D24 23 • Issue: – Recognition and measurement of assets contributed by customers • Conclusions: – Recognise asset at fair value when received – Recognise obligation to provide any future services – Recognise revenue when service is provided © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 24. IFRIC agenda decisions 24 Rejections (2 tentative) 10 Refer to Annual Improvements 4 Add to agenda 2 Not yet considered 1 © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 25. September 2008 International Financial Reporting Standards Annual improvements The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation or the IASB © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 26. Annual improvements 26 • For non-urgent amendments – resolve inconsistencies between standards – clarify fuzzy wording • Process – website publication of ED wording when finalised – annual ED – 90 day exposure • Benefits – improved use of IASB time – less burdensome for constituents © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 27. Annual improvements continued 27 • Process changes – Separate editorial changes from those affecting recognition, measurement, disclosure – Consider effective date and transition for each proposal – Proposals balloted as discussed and posted – ED August 01, final standard April 02, effective January 03 © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 28. Annual improvements 2008 28 • Scope of IFRS 2 and IFRS 3R (IFRS 2) • Detail of disclosures (IFRS 5) • Disclosures about segment assets (IFRS 8) • Classification of expenditures (IAS 7) • Agency arrangements (IAS 18) • Unit of accounting for goodwill impairment test (IAS 36) © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 29. Annual improvements 2008 continued 29 • Valuation guidance and consequential amendments from IFRS 3R (IAS 38) • Business combination contracts exception (IAS 39) • FVO and contracts with non-financial hosts (IAS 39) • Recognising cash flow hedges in P+L (IAS 39) • ‘Routinely denominated’ currency (IAS 39) © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
  • 30. Questions or comments? 30 Expressions of individual views by members of the IASB and its staff are encouraged. The views expressed in this presentation are those of the presenter. Official positions of the IASB on accounting matters are determined only after extensive due process and deliberation. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org

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