16.11 RECENT TRENDS IN INTERNATIONAL FINANCIAL REPORTING 16 • 17“Asset Ceiling” Amendment to IAS 19. This project has been completed. It resulted in an
amendment to IAS 19, Employee Benefits, to correct an anomaly that, when applying IAS 19
in a falling equity market enterprises sometimes reported an asset and a gain as a conse-
quence of an actuarial loss.
Business Combinations—Phase I. Phase I of this project addresses the definition of a
business combination, the appropriate method of accounting for a business combination (pur-
chase or pooling/merger accounting), and the accounting for goodwill and intangible assets.
Consequential amendment to IAS 36 and IAS 38 will also result.
Business Combinations—Phase II. This project is addressing:- Issues relating to application of the purchase method of accounting for a business
combination. - New basis accounting.
- Combinations of entities under common control.
Convergence Topics. This project is focusing on topics where one or more partner stan-
dard setters and the IASB have standards that are broadly similar but differ in a limited num-
ber of areas. The goal is to achieve convergence either by changes in IFRS or changes in the
partners’ standards. The principal focus is on reducing differences between IFRS and U.S.
GAAP.
Consolidation (including Special Purpose Entities). This project is reconsidering the basis
on which an entity should consolidate its investments including more rigorous guidance
around the concept of “control.” The project is expected to amend IAS 27, Consolidated Fi-
nancial Statements and Accounting for Subsidiaries.
Disclosure and Presentation of Financial Activities. This project is updating the existing
requirements (principally IAS 30) related to disclosing information and presenting financial
statements that reflect the specific characteristics of the business activities of banks and other
institutions whose business is to take deposits, grant credits, or provide other financing or in-
vestment services.
First-Time Adoption of International Financial reporting Standards. This project will
provide guidance when an entity adopts IFRSs for the first time as its basis of accounting by
an explicit and unreserved statement of compliance with IFRSs.
Improvements Project. The objective of an improvements project is to add clarity and
consistency to the requirements of existing Standards issued by the IASC, eliminate some ac-
counting choices, and help converge IFRS with major national GAAPs, notably U.S. GAAP.
Insurance Contracts—Phase I. This project addresses how existing IASs should be ap-
plied to insurance contracts.
Insurance Contracts—Phase II. Continuation of the former IASC project to develop a
comprehensive standard on accounting for insurance contracts that is consistent with the con-
ceptual framework definitions of assets and liabilities. This phase of the insurance contracts
project is not constrained by existing IASs.
The Income Statment (Performance Reporting). This project addresses broadly the issues
related to the display and presentation in the income statement of all recognized changes in
assets and liabilities from transactions or other events except those related to transactions with
owners as owners (sometimes called comprehensive income). Thus, it will consider items that
presently are reported in the income statement, cash flow statement, and statement of changes
in equity. Issues addressed in this project include distinguishing revenues and expenses from
other sources of comprehensive income or expense, reporting of holding gains and losses,
and distinguishing operating and nonoperating items.
Preface to International Financial Reporting Standards. This project is completed. It re-
sulted in a revised preface to IASB Standards that sets out the board’s objectives, its proce-
Exhibit 16.6. IASB Technical Agenda Projects: From IASB’s Inception in 2001 through
Late 2002.