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The two boards have agreed to work jointly and expeditiously towards common standards that deal with off balance sheet activity and the accounting for financial instruments. They will also work towards analysing loan loss accounting within the financial instruments project.
The boards will work together towards common standards by developing the IASB projects on consolidation and derecognition as joint projects, once the FASB has completed its short-term amendments to its existing standards.
Furthermore, the boards have agreed to issue proposals to replace their respective financial instruments standards with a common standard in a matter of months, not years. As part of this project the boards will examine loan loss accounting, including the incurred and expected loss models.
The boards also discussed the projects on financial statement presentation, fair value measurement, financial instruments with the characteristics of equity and the conceptual framework.