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The IASB has been working on an update of the existing IASB/FASB Memorandum of Understanding to incorporate new milestones covering the period to 2011. EFRAG's understanding is that these discussions will play a fundamental role in determining the IASB’s priorities for the next three years.
EFRAG is concerned about the implications of the prioritisation exercise for projects that are not mentioned in the MoU and are not ‘credit crunch projects’, in particular with regard to the Insurance project and Solvency II. “It would be a serious concern were the project to be given a lower priority than at present, even if that was done in order to complete the MoU projects on time”, EFRAG states.
Also, some of the approaches proposed in the paper to speed up MoU projects seem to place US views above the views of other jurisdictions, in particular to the Fair Value Measurement and Equity/Liability projects.
On Equity/Liability, EFRAG would be very concerned were the IASB to limit its deliberations to the three approaches mentioned in the recent FASB Preliminary Views document on the subject.
EFRAG therefore proposes that the IASB’s agenda decision process should involve a public consultation stage.
Letter on IASBs agenda and priorities and the MoU