Liabilities

(proposed amendments to IAS 37, timing of final IFRS yet to be determined)

Confirmed that the proposed amendments to IAS 37 are a clarification rather than a change to existing requirements.

Liabilities would be measured at their settlement/transfer amount and an 'expected cash flow' approach is an appropriate way of estimating this amount, even for single obligations.

Fair value measurement

(a project to provide guidance on the measurement of fair value, ED expected in 2009)

Agenda paper 2A: Fair Value Measurement: cover note (PDF 34kb)

Agenda paper 2B: Fair Value Measurement: market participant view (PDF 124kb)

IAS Plus project page

IASB project page

Annual improvements process (2008)

(minor amendments to IFRSs exposed in an annual omnibus ED, 2008 version expected Q3 2008)

IFRS 8 - agreed to amendment proposal that a measure of segment assets should only be disclosed when such information is provided to the chief operating decision maker

IAS 39 - agreed to propose an amendment that that paragraph 11A (fair value option) only applies to financial host contracts in the scope of IAS 39 (so only such contracts can be designated as at fair value through the profit and loss)

IAS 39 - agreed to propose an amendment to paragraph AG33(d)(iii) to refer to the characteristics of a functional currency as detailed in paragraph 9 of IAS 21, as the intent of the exemption is to allow preparers not to separate embedded foreign currency derivatives if the embedded derivative are integral to the arrangement and therefore bear a close relationship to the terms of the contract

IAS 39 - agreed that amendments were required to clarify when gains or losses on hedging instruments should be reclassified from equity. The wording of the amendment will be finalised at a future meeting

Agenda paper 3A: Annual improvements process: IFRS 8 - disclosures of information about segment assets (PDF 41kb)

Agenda paper 3B: Annual improvements process: IAS 39: Financial Instruments: Recognition and Measurement - scope of paragraph 11A of IAS 39 - application of fair value option (PDF 47kb)

Agenda paper 3C: Annual improvements process: IAS 39 Financial Instruments: Recognition and Measurement - application of paragraph AG 33(d)(iii) - Bifurcation of embedded foreign currency derivative (PDF 60kb)

Agenda paper 3D: Annual improvements process: IAS 39: Financial Instruments: Recognition and Measurement - cash flow hedge accounting issues (PDF 33kb)

Conceptual framework - objectives

(a project to update the framework, to be completed in stages. An ED on the objectives and qualitative characteristics phase is expected in 2008)

Agenda paper 10: Conceptual Framework: consequential amendments to the Framework - reliability of measurement

IASB project page

IAS Plus project page

Financial instruments puttable at fair value

(proposed amendments to IAS 32 to allow certain items to be classified as equity)

Agenda paper 12: Puttable financial instruments and obligations arising on liquidation (PDF 63kb)

IAS Plus project page

IASB project page

Liabilities and equity

(a project to reassess to the difference between liabilities and equity, discussion paper expected Q1 2008)

Two approaches are under active consideration - the 'basic ownership' approach and the 'ownership-settlement' approach. The FASB preference is the basic ownership approach which would consider equity to be the most subordinate class of claims that provides for a share of the assets after all other claims are satisfied (regardless of how settled).

Both approaches define equity first, with liabilities being a residual. There was some concern about the linkage to the Framework project

Agenda paper 4: Liabilities & Equity [strategy discussion] (PDF 24kb)

Agenda paper 4A: Liabilities & Equity [education session]: Introduction to FASB education session (PDF 24kb)

Agenda paper 4B: Liabilities & Equity [education session]: FASB preliminary views document - presentation (PowerPoint, 179kb)

IAS Plus project page

IASB project page

Revenue recognition

(a project to replace IAS 18, discussion paper expected Q1 2008)

Considered aspects of the 'measurement model' for revenue recognition, whereby 'revenue' is not defined but reflects the change in the exit price of the contract asset or contract liability from providing goods and services at the date the goods and services are provided.

Also considered whether the measurement model should account for a broader set of assets and liabilities

Agenda paper 7A: Revenue recognition: cover note (PDF 27kb)

Agenda paper 7B: Revenue recognition: measurement model - reporting changes in the exit price of the contract asset or liability in profit or loss (PDF 69kb)

Agenda paper 7C: Revenue recognition: measurement model - accounting for a broader set of assets and liabilities (PDF 97kb)

Agenda paper 7D: Revenue recognition examples: measurement model (PDF 183kb)

IAS Plus project page

IASB project page 

Conceptual framework - elements and recognition

(a project to update the framework, to be completed in stages. A discussion paper on the elements and recognition phase is expected in the second half of 2008)

Agenda paper 14A: Conceptual Framework - Phase B: elements & recognition - liability definition: converging and improving the definitions

Agenda paper 14B: Conceptual Framework - Phase B: elements & recognition liability definition: examples (PDF 121kb)

IAS Plus project page

IASB project page

Employee benefits

(a project to amend the accounting for post-employment benefits, to be addressed in two phases: a short-term project and a longer-term comprehensive project)

Continued debate about the classification of various employee benefit promises between those classified as 'contribution based' and those classified as 'defined benefit'

Considered how defined benefit costs should be presented in the financial statements.

Agenda paper 13: Post Employment Benefits: sweep issues arising from the first preballot draft of Preliminary Views on Amendments to IAS 19 Employee Benefits

IAS Plus project page

IASB project page

Agenda decisions

(decision as to whether to add various topics to the agenda)

Intangible assets - the AASB has been leading this project. It was decided the future of this project would be taken offline and that the IASB staff should discuss further with the AASB staff and other standard setters.

Emissions trading/government grants - agreed to add this topic to the agenda

Common control transactions - agreed to add this topic to the agenda and expand it to include demergers and spin offs

Management commentary - agreed not to add this as a 'standards-level' project but to add a project to produce 'best practice' guidance

Agenda paper 5: Agenda proposals: resource constraints and directors' recommendations (PDF 34kb)

Agenda paper 5A: Agenda proposal: intangible assets (excluding goodwill) (PDF 241kb)

Agenda paper 5B: Agenda proposal: accounting for emissions trading schemes (PDF 93kb)

Agenda paper 5Bi: Agenda proposal: accounting for emissions trading schemes - reproduction of the agenda proposal on emissions trading (September 2005, agenda paper 8) (PDF 118kb)

Agenda paper 5C: Agenda proposal: common control transactions (PDF 95kb)

Agenda paper 5D: Agenda proposal: management commentary (PDF 111kb)

Financial instruments

(a narrow scope project exploring the need to revise guidance in IAS 39 in the area of derecognition of financial instruments)

Agenda paper 9: Financial Instruments: derecognition: cover paper - linked presentation (PDF 24kb)

Agenda paper 9A: Financial Instruments: derecognition: two views on linked presentation (PDF 51kb)

Agenda paper 9B: Financial Instruments: derecognition: illustrating the two views using case studies (PDF 73kb)

IAS Plus project page