The boards heard the FASB finalised amendments to these requirements in August 2018, and that the IASB is considering potential amendments in the light of feedback from stakeholders. Thirteen of 14 Board members confirmed they are satisfied that the Board has complied with applicable due process steps and instructed the staff to prepare an exposure draft for balloting. Such an objective would require an entity to disclose information that enables users of financial statements to understand: Eleven of the 14 Board members agreed and three disagreed with this decision. The similarities between the two sets of standards are bigger than the differences. On the consolidation standard, Tweedie said the main problem has been special purpose entities and the boards have agreed to a united position in that area. for its multi-employer or group plan as a defined benefit plan should comply with the disclosure objectives for defined benefit plans. In this opinion piece, former International Accounting Standards Board (IASB) member Paul Pacter describes the accomplishments of the convergence project undertaken in 2002 by the IASB and FASB. The IASB also plans to issue a standard on insurance contracts by the end of 2011, and the FASB plans to issue an exposure draft in a similar timeframe. The Board met on 24 July 2019 to discuss the accounting model (model) being developed for regulatory assets and regulatory liabilities. These objectives would require an entity to disclose information that enables users of financial statements to: All 14 Board members agreed with this decision. Twelve of 14 Board members agreed and two disagreed with this decision. the IASB project on Primary Financial Statements and the FASB project on Financial Performance Reporting (Agenda Paper 21). The project is limited to the differences between US GAAP and IFRS, where a high-quality solution seems achievable. FASB and the IASB have been working together to develop a set of high-quality globally acceptable financial accounting standards and again to bringing about convergence of U.S. GAAP and IFRS (James, 2010). Joint FASB and IASB meeting. Details of this meeting were published in IFRIC Update. The Board decided to seek views on these recommendations in the Request for Information. whether subtotals similar to gross profit that meet the definition of management performance measures should be exempt from the disclosure requirements for management performance measures; whether to change its tentative decisions on the classification of interest and dividends in the statement of cash flows; due process steps and permission to begin the balloting process. On the consolidation standard, Tweedie said the main problem has been special purpose entities and the boards have agreed to … The FASB replaced the Accounting Principles Board (APB) and the Committee on Accounting Procedure (CAP). Eight of 14 Board members agreed and six disagreed with this decision. Such an objective would, among other things, address aggregation and disaggregation of information provided to meet the specific disclosure objectives (also set out in this Update). The topics, in order of discussion, were: In addition, the IASB held a joint meeting with the Financial Accounting Standards Board (FASB) on 23 July 2019, also at the IFRS Foundation's London office. The IASB is an independent accounting standard-setting body that is the international equivalent of FASB, which sets U.S. generally accepted accounting principles. In this opinion piece, former International Accounting Standards Board (IASB) member Paul Pacter describes the accomplishments of the convergence project undertaken in 2002 by the IASB and FASB. that the application of the DRM accounting model should be optional; and. The change would make it easier for private companies and nonprofit organizations to evaluate a goodwill triggering event. 5. the entity’s strategies for managing the plan(s) and associated risks. apply, in the first year of application only, the amended requirements for subtotals in the statement(s) of financial performance. a specific disclosure objective to disclose information that enables users of financial statements to understand the: nature of the benefits provided by its defined benefit plans; entity’s strategies for managing the plan(s) and associated risks. to introduce the option to measure non-controlling interests at fair value; to change the recognition criteria for recognising an intangible asset acquired in a business combination; to clarify that an assembled workforce must not be recognised; and. and financial instruments by the end of 2011. Proper implementation and application of the standards are also essential.”. The short-term convergence is an active agenda project conducted jointly by FASB and IASB — expected to result in one or more standards that will achieve convergence in certain areas. He says many standards have converged, and IFRS have been improved as a result of the process. The boards received an overview of the proposals in IASB Discussion Paper, the IASB project on IBOR Reform and the FASB project on Reference Rate Reform (Agenda Paper 14). The boards heard the IASB’s plans to publish an exposure draft by the end of 2019. the IASB project on Financial Instruments with Characteristics of Equity and the FASB project on Distinguishing Liabilities from Equity (Agenda Paper 5). In the United States, the Financial Accounting Standards Board (FASB) is working with the International Accounting Standards Board (IASB) to reduce or eliminate the differences between United States Generally Accepted Accounting Principles (US GAAP) and the IFRS, in particular according to the convergence programme laid out by a 2006 memorandum of understanding, which was updated in 2008. The boards received an update on the project and discussed feedback on targeted improvements to segment reporting (Topic 280) the FASB … Monitoring IASB Projects: The FASB monitors IASB projects based on the level of inter­est in the topic being addressed. understand the time period over which payments will continue to be made to members of plans that are closed to new members and for which the entity still has an obligation. However, the Board asked the staff to further analyse situation (a) for discussion at a future Board meeting. The Board decided to seek views on whether: The Board decided it will clarify, in the Request for Information, that it does not intend to amend the requirements in the IFRS for SMEs Standard: All 14 Board members agreed with this decision. As many of you in this room know already, one of the ways that GAAP can be improved is to reduce its complexity.”. The Board met on 22 July 2019 to discuss: Agenda Paper 15A sets out a plan for the revised Practice Statement to: The Board tentatively decided to introduce in the revised Practice Statement guidance on making materiality judgements in preparing management commentary that would: Further, the Board tentatively decided that the guidance on identifying material information in the revised Practice Statement would: Finally, the Board tentatively decided to include in the revised Practice Statement guidance on the other steps of the materiality process that would prompt management to: The Board will discuss guidance on the fundamental qualitative characteristic of faithful representation and the enhancing qualitative characteristics at a future meeting. The Board tentatively decided to amend IAS 33 Earnings per Share to restrict the numerator in an adjusted earnings per share calculation to amounts based on defined subtotals or management performance measures. The Board met on 22 July 2019 to continue its discussion of comments on the Exposure Draft Classification of Liabilities, which proposes amendments to paragraphs 69–76 of IAS 1 Presentation of Financial Statements. 6. For all these reasons, the IASB looks forward to continue working closely with the FASB.”, Golden pointed out that FASB’s mission is to improve GAAP for those who use it in the U.S. capital markets and elsewhere around the world. “GAAP is critical to sound financial reporting, and many regard it as the gold standard in that area,” he said. The boards heard updates on both projects, discussed the FASB’s Invitation to Comment and discussed various aspects of their projects, in particular: improving the quality of disclosures about business combinations; amortising goodwill as opposed to using an impairment-only model; and. 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