ASB will issue a consultation on the Future of UK GAAP
30 July 2009
IASB on IAS 39 is moving at an accelerated pace and will be mandatory in January 2012.
The ASB will very shortly be issuing a consultation paper setting out the Board’s intended Policy Proposal on ‘The Future of UK GAAP’. The Board’s intention is to work under the IASB framework and to converge to the fullest extent possible consistent with the needs of UK entities. As a consequence of the Board’s proposed approach, the separate body of literature currently referred to as UK GAAP will cease to exist.
The IASB project to replace IAS 39 is moving at an accelerated pace which is advancing in three phases:
(a) Classification and Measurement – the comment period for the ED closes on 14 September 2009, this part of the standard will be available for early adoption for 2009 year ends;
(b) Impairment – the IASB has published a Request for Information (RfI) inviting comments on the feasibility of an ‘Expected Loss Model’. The ED on impairment is expected in October 2009; and
(c) Hedge Accounting – no discussions have taken place to date on this phase of the project; however, the ED is due in December 2009.
The proposed mandatory date for application of the standard is 1 January 2012. The IASB is currently in favour of retrospective application which is likely to result in significant costs for preparers.
On the EU level, the Commission is currently undertaking a review of the 4th and 7th Company Law Directives (usually referred to as the Accounting Directives). Following a consultation exercise earlier in the year, the Commission hosted a stakeholder meeting in June, at which the ASB was represented, to discuss the responses and likely next steps which will – the ASB understands – include an examination of the IFRS for SMEs and its potential applicability for use across the EU.
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