Home' A Plus Magazine : April 2013 Contents In December 2012, the International
Accounting Standards Board issued
a feedback statement on its agenda
consultation, which was launched in
July 2011. As the number of jurisdictions
applying International Financial Reporting
Standards increases, stakeholders have
identified new accounting issues for
consideration by the IASB.
The consultation asked deliberately
open-ended questions to gather views on
the IASB’s future work programme from all
those involved with or affected by financial
reporting. In particular, the IASB sought
feedback on how it should balance the
development of financial reporting with the
maintenance of IFRSs and – considering time
and resource constraints – those areas of
financial reporting that should be given the
highest priority for further improvement.
In this connection, the feedback statement
summarizes how the IASB has addressed
those responses received in five key themes:
1. Respondents asked that a decade of
almost continuous change in financial
reporting should be followed by a period
of relative calm, allowing all parties
time to adjust to the new standards.
(Note that this does not imply a hiatus
in standard setting, rather in standard
2. There was almost unanimous support
for the IASB to prioritize work on the Con-
ceptual Framework, which is expected to
provide a consistent and practical basis
for standard setting. This project focuses
on the following five topics on which a
discussion paper is expected to be issued
The reporting entity;
Elements (including the definitions of
an asset and a liability); and
How financial performance is pre-
sented, including consideration of the
role of other comprehensive income and
recycling, will be of particular interest.
There have been increasing calls for a
review of the disclosure requirements in
IFRS. Financial statements are increas-
ingly being perceived as dominated by
disclosures that make it difficult to under-
stand how an entity has performed.
Although this is sometimes described as
disclosure overload, the broader issue
concerns the effectiveness of disclosures
in financial reports. The framework
project will aim to develop disclosure
principles to facilitate the development of
disclosure requirements in standards.
3. The IASB was asked to make some
targeted improvements that respond to
the needs of new adopters of IFRSs.
4. The IASB was asked to pay greater atten-
tion to the implementation and mainte-
nance of the standards.
In 2007, a formal post-implementation
review process was introduced for each
new standard or major amendment,
which the IASB sees as being an impor-
tant part of maintaining the standards.
The first such review was related to
IFRS 8 Operating Segments, which was
launched in 2012.
Each review will have two phases.
In the first phase, the scope of the
review is set on the basis of consulta-
tion with preparers, users, auditors,
securities regulators, standard-setters,
other interested parties and the IFRS
Advisory Council. This initial consulta-
tion phase helps establish the ques-
tions to be asked in the public request
for information. In the second phase,
information is collected, via the request
for information, extensive outreach
and a review of existing research, to
help assess the IFRS being reviewed.
Once the IASB has considered what it
has learned from the review, it publishes
a report setting out its findings and
identifying any actions it plans to take.
The formal post-implementation review
process supplements the other mecha-
nisms the IASB has in place to review the
implementation of standards. The next
planned post-implementation review is
for IFRS 3 Business Combinations. Some
preliminary work has been undertaken
to help set the scope of the review, but
the main part of the process will start
once a review has been conducted on
how effective the process has been for
the IFRS 8 post-implementation review.
5. The IASB was asked to improve the way
The IASB launched an agenda consultation regarding the strategic direction
in developing new accounting standards and setting of priorities for its work
programme. Could you provide details of the consultation results?
48 April 2013
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