IASB and IFRIC Update January 2008

The IASB and IFRIC Updates for January are now available.

• IASB Update (January 2008)
• IFRIC Update (January 2008)

ASB proposes amendments on share-based payments

The Accounting Standards Board (ASB) has today issued an exposure draft of amendments to Financial Reporting Standard (FRS) 20 (IFRS 2) ‘Share-based Payment – Group Cash-settled Share-based Payment Transactions’. A consequential amendment is proposed to UITF Abstract 44 (IFRIC Interpretation 11) ‘FRS 20 (IFRS 2) – Group and Treasury Share Transactions’. This follows similar proposals issued in December 2007 by the International Accounting Standards Board (IASB).

The IASB proposals respond to requests for guidance on how a group entity that receives goods or services from its suppliers (including employees) should account for the following arrangements:

• Arrangement 1—the entity’s suppliers…

IFRIC publishes proposed guidance on distributions of non-cash assets to owners

The International Financial Reporting Interpretations Committee (IFRIC) today released for public comment a draft Interpretation, D23 Distributions of Non-cash Assets to Owners.

The IFRIC was asked to provide guidance on how an entity should measure distributions of assets other than cash when it pays dividends to its owners acting in their capacity as owners. At present, International Financial Reporting Standards do not address the measurement of distributions to owners.

The proposed Interpretation addresses the following two issues:

(a) How should an entity measure an obligation to distribute non-cash assets to its owners (a dividend payable)?

(b) When an entity settles…

AADB launches consultation on changes proposed for its Accountancy Scheme

The Accountancy and Actuarial Discipline Board, a part of the Financial Reporting Council (FRC), today publishes a consultation document on the changes it is proposing for its Accountancy Scheme. The Board developed its proposals following a wide-ranging review of the Accountancy Scheme.

The proposed changes are designed to uphold the principles of fairness, transparency and proportionality, which are considered to be the hallmarks of effective, independent regulation and to ensure the continued provision of a “demonstrably fair, independent and expert system for investigating and, where appropriate, hearing significant public interest disciplinary cases” (AADB Aims and Objectives).

Key changes proposed by…

IASB issues amendment to IFRS 2 Share-based Payment

The International Accounting Standards Board (IASB) issued today an amendment to IFRS 2 Share-based Payment. The amendment deals with two matters. It clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. It also specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment.

The issues addressed in the amendment were first published in an exposure draft of proposed amendments to IFRS 2—Vesting Conditions and Cancellations in February 2006. In response to comments received during the consultation process the IASB decided…