- Risk management policies
- Sensitivity analyses
- Balance between relevance and reliability: shifting toward relevance
- Eliminate opportunities for “cherry picking” of income items, especially for fi-
nancial instruments - Avoid intent-driven accounting to the extent possible:
- Consolidate even if decision to dispose
- No accrual of planned restructurings after a business combination
- Principles-based standards, with separate implementation guidance
- Eliminate accounting choices:
- IASB’s “improvement project” would eliminate many
- Convergence with U.S. GAAP.
16.12 MODEL FINANCIAL STATEMENTS AND DISCLOSURE CHECKLIST. The
IASB does not publish model financial statements that conform to IFRS or a related
disclosure checklist. However, model IAS statements and a disclosure checklist are
available at the Deloitte Touche Tohmatsu IASPlus Web site at
http://www.iasplus.com/fs/fs.htm.
16.13 INTERNATIONAL FORUM ON ACCOUNTANCY DEVELOPMENT. The Inter-
national Forum on Accountancy Development was created in 1999 as a working
group between the Basel Committee, the International Federation of Accountants,
IOSCO, the large Accounting Firms, OECD, the United Nations, and the World Bank
and regional development banks. The East Asian financial crisis was their impetus in
forming the IFAD. The IFAD’s mission is to improve market security and trans-
parency, and financial stability on a global basis.
16 • 18 INTERNATIONAL FINANCIAL REPORTING STANDARDSdures for due process reflecting the IASB’s new structure, and the scope, authority, and tim-
ing of application of International Financial Reporting Standards (IFRS). The Preface also re-
flects some Board decisions about the format and style of IFRS and clarifies that bold and non-
bold type in IASB standards are of equal authority.
Concepts of Revenue Recognition, Liabilities, and Equity. This project addresses three in-
terrelated issues:
- General principles for determining when revenue should be recognized in the finan-
cial statements. - The distinction between liabilities and equity.
- Liability recognition, including guidance on whether an item meets the definition of
a liability and, if so, the criteria for recognizing liabilities in the financial statements.
Revisions to IAS 39 and IAS 32. Revisions to IAS 32 and IAS 39 based on issues identi-
fied by the IAS 39 Implementation Guidance Committee and others. This project includes is-
sues relating to derecognition of financial instruments and extending the use of fair valuation.
Share-Based Payment. This project seeks to develop a standard on all aspects of ac-
counting for share-based payments to employees (including employee stock options and their
repricing), suppliers, creditors, and others.
Exhibit 16.6. (Continued)