Note this page is updated on an approximately quarterly basis or if major changes occur.
Under the updated Memorandum of Understanding (MOU) between the International Accounting Standards Board (IASB) and Financial Accounting Standards Board of the United States (FASB), the Boards are pursuing an aggressive convergence strategy with an expected 2011 completion date.
The key objective of this strategy is to implement the improvements that are needed to existing IFRS Standards to facilitate mandatory adoption of IFRS in all major capital markets by a target date no later than 2013.
During 2008, the IASB and FASB determined their key priorities which culminated in the publishing in September 2008 of a revised progress report and timetable for completion under the MOU. As part of this process the Boards have agreed to 'fast-track' and/or limit a number of projects, partially as a result of the short-time frame involved and in some cases as a response to the global credit crisis. Other projects that were originally part of the convergence process have now been deferred, most notably on government grants and impairment.
In addition, the IASB has a number of other projects that are being pursued concurrently with the MOU projects, for example common control transactions and accounting for extractive activities. The IASB's ability to deliver due process documents under these projects will depend on progress with the MOU projects and the continued fall out from the credit crisis.
To influence the debate on any particular project, entities need to understand the key projects and lobby standard setters, accounting professionals and others at the local and global levels early in the process. In many cases, this means participating in the comment process at or before the discussion paper stage - history has shown that projects rarely change materially in response to constituent comment after reaching the exposure draft stage.
| A good example where prompt action may be crucial is the IASB's current project on lease accounting which seeks to eliminate the distinction between operating and finance leases and adopt a common model that is more aligned with the existing finance lease model. The IASB and FASB expect to issue a discussion paper on this project late in 2008. Entities wishing to support or avoid major changes to lease accounting need to comment on the discussion paper (if not before), not wait for any exposure draft that might result in a year or two's time. |
Overview of the projects
Some of the major project areas expected to form part of the 2011 strategy are outlined in the tables below, categorised by the stage of the relevant project, as follows:
Whilst not an exhaustive list of all the IASB's current projects, these tables provide an overview of the extent of the financial reporting changes expected in the coming years - changes that entities must plan for well in advance.
You can keep track of the progress in these projects through our IASB meeting summaries, published soon after each IASB meeting. We also maintain an agenda summary of all IASB projects on our IAS Plus website.
Top | New Standards | Exposure drafts | Discussion Papers | Other topics
Topics where new Standards have been issued or are likely in the near future
(There are no such Standards on issue at the time this page was last updated on 27 October 2008.)
Top | New Standards | Exposure drafts | Discussion Papers | Other topics
Topics that have reached the exposure draft stage
Top | New Standards | Exposure drafts | Discussion Papers | Other topics
Topics that have reached the discussion paper stage
| Topic | Major changes | Learn more |
| Financial instruments | - proposals to reduce complexity in financial instruments
- possible move to full fair value accounting
| IASB Discussion Paper 'Reducing Complexity in Reporting Financial Instruments' IAS Plus project page |
| Liabilities and equity | - new approach to the determination of what constitutes 'equity', fewer items would be classified as equity
| IASB Discussion Paper 'Financial Instruments with the Characteristics of Equity' IAS Plus project page |
| Financial statement presentation | - move towards a 'principle based' format of the financial statements
- categorisation of key financial statements into 'business', 'finance', 'taxes', 'discontinued operations' and other
- " reconciliations between key financial statements
| IASB Discussion Paper 'Preliminary Views on Financial Statement Presentation' IAS Plus project page IASB project page |
| Fair value measurement | - guidance on the measurement of fair value under IFRS
| IASB Discussion Paper 'Fair Value Measurements' IAS Plus project page |
| Post-employment benefits | - elimination of the deferral and smoothing options for defined benefit obligations
| IASB Discussion Paper 'Preliminary Views on Amendments to IAS 19 Employee Benefits' IAS Plus project page |
| Insurance contracts | - second phase of the overall insurance contracts project
- IASB intends to develop a standard that will replace IFRS 4 Insurance Contracts and that will provide a basis for consistent accounting for insurance contracts by both insurers and policyholders
| IASB Discussion Paper 'Preliminary Views on Insurance Contracts' IAS Plus newsletter 'Phase II of IFRS for Insurance Contracts: IASB Discussion Paper' (PDF 1,282kb) IAS Plus project page IASB project page |
Top | New Standards | Exposure drafts | Discussion Papers | Other topics
Other topics
| Topic | Major changes | Learn more |
Consolidation (IASB and FASB have agreed to fast-track this project, ED expected in 2008) | - single definition of 'control', including 'structured entities' (special purpose entities)
- new disclosures around consolidated and unconsolidated entities (leading to the possibility of removal of equity accounting for associates)
| IAS Plus project page IASB project page |
Derecognition (IASB and FASB have agreed to fast-track this project, ED expected early in 2009) | - a convergence project aimed at the derecognition of financial instruments under IAS 39/AASB 139
- draft staff paper sets out a possible approach to derecognition based on the existence or otherwise of the legal rights to a financial asset by the reporting entity
| IAS Plus project page IASB project page |
Revenue recognition (DP expected in 2008) | - new conceptual and principle-based approach to revenue recognition, based on a contract-based model and focussed on 'exit price' or 'customer consideration'
| IAS Plus project page IASB project page |
Leases (DP expected in 2008) | - new model for the recognition of assets and liabilities arising under lease contracts, applying the existing finance lease model, adapted where necessary, to all leases
- initial phase of the project will focus on lessee accounting (lessor accounting has been deferred)
| IAS Plus project page IASB project page |
Income taxes (ED expected in 2008) | - major rework of IAS 12 Income Taxes as part of the joint convergence project with the FASB
- the tax base likely to assume sale or settlement at reporting date
- elimination of many exceptions and major new requirements around 'uncertain tax positions' expected
| IAS Plus project page IASB project page |
Conceptual framework (multi-phase project at various stages of completion) | - major revisions and updating of critical concepts such as the definitions of elements of the financial statements, nature of the reporting entity, measurement and so on
- likely to have flow-on impacts on numerous projects and standards
| IAS Plus project page IASB project page |
Top | New Standards | Exposure drafts | Discussion Papers | Other topics
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