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From Accountingnet.ie Financial Reporting
There are many complex issues that need to be addressed, not least the cut-off points between the tiers and the relationship with the EU accounting directives. The ASB will reach final conclusions on these important issues after collating the views of constituents arising from the discussion paper, and careful consideration of all the different arguments put forward by preparers, users and advisers. The programme of convergence with international standards will be completed within a reasonable time frame, but only after all stakeholders have been given a chance to express their opinions. The Board is discussing the criteria for determining which entities should be in Tier 1 and has tentatively agreed that the development of the discussion paper should proceed on the basis that all publicly accountable entities, regardless of size, should be in Tier 1, and that the IASB definition of public accountability should be used. As a result, all listed entities would be included in Tier 1 regardless of where they are listed. The Board has also approved plans for carrying out an evidence-based comprehensive, efficient and transparent impact assessment. The Board is also considering the basis on which it will consult on the future of UK/Irish GAAP in relation to: (a) small and medium sized entities (including the potential impact of EU Member States being given the option to exempt micro entities requirements of the Accounting Directives) and (b) subsidiaries. While re-affirming its view that the FRSSE should remain in use for the foreseeable future, the Board will consider further on micro entities and the accounting requirements for subsidiaries when the outcome on the IFRS for Private Entities becomes clearer. Subsequent Board meetings will cover Tier 2 issues and special cases, such as entities covered by Statements of Recommended Practice (SORPS), and mutual and co-operative societies. Progress by the IASB on the IFRS for Private Entities Given the importance of the outcome of the IASB’s IFRS for Private Entities, what is the current status? In May 2008 the IASB began the process of rediliberating the proposals in their exposure draft by considering some of the main issues identified in the comment letters and field tests; this process was completed in September 2008. At the October to December meetings the IASB discussed issues that had been deferred at previous meetings, and some new issues on which respondents requested further guidance, in particular, on issues addressed by some IFRIC interpretations. At its meeting in January 2009, the IASB has been discussing the main outstanding issues, which include amortisation of goodwill, a requirement to prepare consolidated financial statements, whether the IFRS for Private Entities should allow use of the full standards for more complex types of business, the section on concepts and pervasive principles, the title of the standard and which entities should be eligible and the revised and complete proposal for financial instruments. At its February meeting the IASB discussed the simplification of defined benefit pension accounting and ‘whether to re-expose’ however the conclusions from this meeting have not yet been made public. Staff’s plan to submit a ballot draft of a final IFRS for Private Entities to the Board in April and public release in May or June 2009. As well as all that, the name of the standard may change: there is a proposal that it should be labelled the IFRS for Non-Publicly Accountable Entities. Contact us today to find out how our services can benefit you.
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