Accounting alert 2008/13 - October 2008 AASB meeting highlights
The AASB's October 2008 meeting was another one-day affair. The Board agreed to issue two new exposure drafts, develop an Interpretation on superannuation contributions tax and will maintain compliance with IFRS in light of the IASB's fast-tracked amendments to IAS 39 Financial Instruments: Recognition and Measurement.
As with the September meeting, we have not produced our usual full analysis for this meeting. Instead, we have provided a summary table of the decisions made at the meeting immediately below:
|Topic||Overview||Comments and more information|
|Credit crisis||The Board noted that the IASCF Trustees agreed that the IASB's normal due process can be suspended so that it can deal urgently with proposals to amend IAS 39 Financial Instruments: Recognition and Measurement in respect of the requirements relating to the reclassification of financial instruments from the 'fair value through the profit and loss' to 'held to maturity' category.||
The AASB will monitor developments and respond to any IASB developments rapidly to maintain Australia's IFRS-compliant status.
The amendment was issued by the IASB on 13 October 2008.
|Interpretations||The AASB will consider at its November meeting a draft Interpretation proposing that superannuation contributions tax is included in the measurement of defined benefit obligations.||
This will be another Australian domestic Interpretation and is likely to be quite high-level in its requirements in an attempt to ensure consistent treatment and IFRS compliance.
Agenda Paper 3.2 Interpretations issues in progress (PDF 43kb)
|Exposure drafts||The AASB approved two IASB-equivalent EDs: ED 167 Discontinued Operations: Proposed Amendments to AASB 5 and ED 168 Additional Exemptions for First-time Adopters: Proposed Amendments to AASB 1.||
Comments on both EDs close on 5 December 2008.
Agenda Paper 8.2 Draft exposure draft ED XXX Discontinued Operations: Proposed Amendments to AASB 5 (PDF 63kb)
Agenda Paper 8.5 Draft exposure draft ED XXX Additional Exemptions for First-Time Adopters: Proposed Amendments to AASB 1 (PDF 85kb)
|Superannuation plans and approved deposit funds (ADFs)||The AASB considered a revised version of the forthcoming exposure draft, focussing on the proposed wording around measurement and presentation.||
The AASB's deliberations on the ED continue and it appears increasingly unlikely that the ED will be finalised in 2008.
Agenda Paper 4.2 Draft exposure draft ED 16X Superannuation Plans and Approved Deposit Funds (1.61mb)
|Conceptual Framework||The AASB continued its consideration of its draft submissions on the IASB-FASB Discussion Paper Preliminary Views on an improved Conceptual Framework for Financial Reporting: The Reporting Entity and the IASB-FASB Conceptual Framework ED The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information.||
The AASB is generally supportive of the IASB-FASB proposals, although the not-for-profit implications of the proposed changes will need to be considered further.
Agenda Paper 6.2 Draft submission to the IASB on Exposure Draft An Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision Useful Financial Reporting Information (PDF 70kb)
Agenda Paper 7.2 Draft submission to the IASB on Discussion Paper Preliminary Views on an improved Conceptual Framework for Financial Reporting: The Reporting Entity (PDF 56kb)
|Legal process for adopting IFRS in Australia||The AASB continues to pursue a 'more efficient' approach to adopting IFRS, including revisions to IFRS, in Australia with the Office of Legislative Drafting and Publishing (OLDP).||It is understood that certain improvements in the process have already been identified, although these are not as advanced as adopting a similar approach as with Interpretations under AASB 1048 Interpretation and Application of Standards|
|Modifications to IFRS for not-for-profit entities||The AASB received an update on the New Zealand FRSB discussions on the criteria/factors to be considered in justifying a departure from IFRS for not-for-profit entities.||Robust and stringent guidelines for any departure from IFRS are important to avoid possible 'multiple GAAPs'. Consideration of using IPSASB pronouncements as a base for the not-for-profit sector may also indirectly impact this project.|
More information on the above topics can be obtained from the AASB Action Alert (PDF 59kb) for the meeting.
The next meeting of the AASB is scheduled for 12-13 November 2008 in Melbourne.
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