Iasb Deliberations

IASB Deliberations

The International Financial Accounting Standards Foundation (IFRS) is a nonprofit, independent private international organization. IFRS Foundation’s (2012) main objective is “to develop a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles” (para. 1). In line with this objective is the creation of the International Accounting Standard Board (IASB) that stands as its setting body. The paper objective is to identify three active projects of the IASB stating the project agenda, the timeframe and milestone on each of the projects, and the status of the conceptual framework. The three active projects selected are IFRS 9: Financial instruments as replacement of IAS 39, leases, and revenue recognition (IFRS Foundation, 2012).

IFRS 9: Financial Instruments (replacement of IAS 39)

According to IFRS Foundation (2012) the main objective of this project is to simplify the classification and measurement requirement that will improve the usefulness of financial statements to the users. The project was added to the IASB active agenda in November 2008 (IFRS Foundation, 2012).

The original IAS 39 became in effect covering financial years that begin on or after January 1, 2001 (IFRS Foundation, 2012). It covers provisions about financial instrument classification, recognition, impairments, and hedge accounting (IFRS Foundation, 2012). In March 2006, the convergence agreement between IASB and Financial Accounting Standard Board (FASB) were reconfirmed through the issuance of Memorandum of Understanding (MoU) that draws A Roadmap for Convergence between IFRS and the US GAAP (IFRS Foundation, 2012). The IFRS 9: Financial instrument as a replacement for IAS 39 was part of the MoU joint effort to reduce complexity in financial reporting (IFRS Foundation, 2012).

The IFRS 9: Financial instrument project plan has three main phases.

Phase 1:...