Running head: IASB DELIBERATIONS

IASB Deliberations Tara Markland-Gbeh University of Phoenix Advance Financial Accounting ACC 440 Joseph Bailey June 21, 2010

IASB Deliberations The International Accounting Statement Board (IASB) is an independent privately funded accounting standard setting body based in London. One principal objective is to develop a single set of high quality, understandable enforceable, and globally accepted International Financial Reporting Standards (IFRS) through its setting body. In this paper I will discuss the three projects currently on the active agenda that will address by the IASB. In addition, I will also identify the timetable for the milestones on each of the projects and the status of the conceptual framework project. The three projects currently on the active agenda that are being addressed by the IASB are consolidation, fair value measurement guidance and the financial instruments (IAS 39 replacement). The IASB added a project on consolidation on its agenda in June 2003. This represents the assets, liabilities, equity, income, expenses and cash flows together with those of the entities it controls. According to the IASB website, the project objectives is to publish a single IFRS on consolidation, which is replacing IAS 27 Consolidation and Separate Financial Statements and the Interpretation. This will address a revise definition of control related applicant guidance to be applied to all entities, and to enhance disclosures about consolidated and unconsolidated entities. The Boards objectives in the fair value measurement project are to establish a single source of guidance for all fair value measurements; clarify the definition of fair value and related guidance; enhance disclosures about fair value measurements; and increase the convergence of IFRS and United State General Accepted Accounting Principles(US GAAP). The exposure draft for measurement uncertainty analysis disclosure for fair value is expected May 2010, while the

target date for IFRS is expected in the fourth quarter of 2010. The replacement of IAS 27 is expected by end of Q4 2010, while the disclosure is expected by June 2010. The Financial Instrument that is replacing IAS 39 was added in November 2009 by IASB on its agenda, while FASB added it the following month on it agenda as well. Based on IASB website the objective of this project is to improve the decision usefulness for users of financial statements by simplifying the classification and measurement requirements for financial instruments. This project consists of three phases.(1), Classification and measurement:- An exposure draft on the topic Fair Value Option for Financial Liabilities was published in May 2010 with a comment deadline of 16 July 2010. (2) Impairment: - The exposure draft Amortised Cost and Impairment was published in November 2009 with a comment deadline of 30 June 2010. (3) Hedge Accounting:- The Board expects to publish an exposure draft in time to allow finalization by the end of 2010. The conceptual framework objective is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. There are four phases of the conceptual framework project that is on the way. Phase A consist of objectives and qualitative. The exposure draft was published on May 29, 2008, while the final chapter is expected around Q3 2010. Phase B is the elements and recognition, date to be determine. Phase C consist of measurement. The discussion paper is expected to publish between the Q4 2010 and Q1 2011. Phase D consist of reporting entity. A discussion paper was published on May 29, 2008 which led the board to publish an exposure draft in May 2010. Comments are due July 15, 2010. In conclusion, this paper highlights the role of IASB and its mission. In addition, it identifies the current projects on its agenda along with its milestones and the status of the conceptual framework project.