The International Accounting Standards Board (IASB)
publishes an exposure draft (
www.iasb.org.uk/cmt/0001.asp?n=67&s=1011265 ) intended to improve
two international accounting standards related to accounting for
financial instruments: IAS 32, Financial Instruments: Disclosure
and Presentation and IAS 39, Financial Instruments:
Recognition and Measurement. Although the IASB’s goal
ultimately is to develop a principles-based approach to this area, its
immediate aims are to eliminate inconsistencies in existing standards,
which are modeled on U.S. GAAP, and to provide implementation
guidance. Comments are due October 14.
The IASB also proposes improvements in 12 other
international accounting standards: IAS 1, Presentation of
Financial Statements; IAS 2, Inventories; IAS 8,
Net Profit or Loss for the Period, Fundamental Errors and
Changes in Accounting Policies; IAS 10, Events After the
Balance Sheet Date; IAS 16, Property, Plant and Equipment;
IAS 17 , Leases; IAS 21, The Effects of Changes in
Foreign Exchange Rates; IAS 23, Borrowing Costs; IAS
24, Related Party Disclosures; IAS 27, Consolidated
Financial Statements and Accounting for Investments in Subsidiaries;
IAS 28, Accounting for Investments in Associates; and
IAS 33, Earnings Per Share (
www.iasb.org.uk/cmt/0001.asp?n=67&s=1011265 ). The IASB expects
that the revisions will help reduce or eliminate ambiguities,
redundancies and conflicts in existing standards. Comments are due
September 16.
The Financial Reporting Council (FRC), which oversees
accounting standard setting in Australia, announces it supports
adopting the IASB’s international accounting standards by January 2005
( www.frc.gov.au/content/Bulletins/bull_2002_4.asp
). While the FRC does not have the authority to direct Australia’s
accounting standards board to develop standards or to veto any the
board has formulated or recommended, the move lends credence to the
IASB standards and supports the Australian government’s efforts to
facilitate foreign investment in the nation’s capital markets—a
benefit generally expected from harmonized accounting standards.
