IASB and FASB publish update to 2006 MoU
11 September 2008
The report presents the progress of projects laid out in the MoU. The update outlines a plan and projected time line for completing the remaining joint major projects.
The report presents the progress of projects laid out in the MoU. This update outlines a plan and projected time line for completing the remaining joint major projects included in the MoU, Sir David Tweedie, Chairman of the IASB said.
A number of jurisdictions including Canada, India, Japan and Korea have announced plans to adopt or converge with IFRSs from 2011. Completing the MoU beforehand will avoid the need for those jurisdictions to make major changes shortly afterwards as MoU projects are completed, he added.
In the 2008 MOU, the IASB and the FASB noted that while they did not meet their goal of converging all projects, they have made significant progress on seven of them. The topics include:
- Business Combinations: A project converging the two standards was completed in 2007, resulting in Statement of Financial Accounting Standards (SFAS) No. 141(R), Business Combinations, and a revised version of International Financial Reporting Standards (IFRS) 3, Business Combinations.
- Financial Instruments: Both Boards issued discussion papers and the FASB has issued Exposure Draft (ED) No. 1590-100, Accounting for Hedging Activities: an Amendment of FASB Statement No. 133.
- Financial Statement Presentation: Joint discussions are underway, and the Boards intend to release a discussion paper by the end of 2008.
- Intangible Assets: The Boards decided in 2007 not to include the project on their agenda.
- Liabilities and Equities: Both Boards have issued discussion papers and expect to release an exposure draft in 2009.
The specific changes to the milestones for the other four major projects in the 2008 MOU are:
- Consolidations: Both Boards have issued guidance that is not converged, and now seek to develop a strategy for a common standard.
- Derecognition: Both Boards plan to publish exposure drafts within the next year. They are also planning to develop a strategy for a common standard in the upcoming year.
- Fair value measurement: The FASB has issued SFAS No. 157, Fair Value Measurements, and the IASB plans to issue an exposure draft in 2009. The FASB plans to review SFAS No. 157 once the IASB guidance has been issued.
- Post-employment benefits: FASB has completed the first stage of a project. IASB plans to issue an exposure draft in 2009. Both Boards will develop a strategy for converging these standards after this guidance is issued.
The attached press release contains a list of projects both organisations are currently working on.
Press release
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