30 Jul. 2014
23 Jul. 2014
8 Jul. 2014
In November 2012, the Accounting Standards Board, Nepal (ASB) and the AOSSG agreed to establish a two-year pilot IFRS Center of Excellence (IFRS CoE) in Kathmandu, Nepal, as part of the AOSSG's initiative to building regional standard-setting capacity. The purpose of the IFRS CoE is consistent with the AOSSG’s objectives; including, in particular, promoting the adoption of, and convergence with, IFRSs by jurisdictions in the region.
One of the initiatives of the IFRS CoE in Nepal is a review of the processes employed by the ASB in setting standards to identify areas in which improvements could be suggested. The AOSSG's Report on Standard-Setting Capacity in Nepal outlines the observations from the review and provides recommendations based on the experience of other AOSSG members that may help develop further the ASB's standard-setting capacity.
Other initiatives of the IFRS CoE in Nepal, for example, the train-the-trainer sessions for members, staff and selected people of the ASB are underway.
4 Jul. 2014
AOSSG members participated in a series of meetings in Tokyo on 5 - 6 June 2014.
Meeting with the IASB
A meeting between AOSSG members from Hong Kong, Japan, Korea, Malaysia, New Zealand and Singapore and IASB representatives was held on 5 June 2014 in Tokyo.
AOSSG members provided input on their findings on the implementation of IFRS 3 Business Combinations. Common implementation challenges highlighted by members include the following:
- The distinction between an asset purchase and a business combination can be difficult to determine in particular industries (for example, real estate, mining and agricultural activities);
- The identification of intangible assets separately from goodwill and determining the fair value of those intangible assets;
- The practical and cost/benefit issues involving the subsequent measurement of goodwill and intangible assets with indefinite lives acquired in a business combination; and
- The lack of guidance on how to prepare information such as, paragraph B64(q)(ii) of IFRS 3 requires disclosure of revenue and profit or loss of the combined entity for the current reporting period as if the transaction had taken place at the beginning of the year. Some members also question the usefulness of providing this information in the financial report.
In addition, the meeting discussed the latest developments of the IASB projects such as IFRS 15 Revenue from Contracts with Customers, IFRS 9 Financial Instruments, leases, conceptual framework and agriculture (bearer plant).
The Accounting Standards Board of Japan and the Asia-Oceania office of the IFRS Foundation hosted an IFRS Seminar on 6 June 2014 in Tokyo to discuss recent IASB activities. The seminar was attended by securities regulators, representatives of Japanese entities and AOSSG member standard-setters from Hong Kong, Japan and Korea. The seminar covered topics such as IFRS 15 Revenue from Contracts with Customers, IFRS 9 Financial Instruments, leases and macro hedge accounting. The role of the IFRS Interpretations Committee was also discussed at the seminar. The AOSSG Chair, Mr. Clement Chan, who attended the seminar, highlighted the AOSSG's current and ongoing activities, and explained how AOSSG members work together with an aim of continuing to promote improved financial reporting within the Asia-Oceania region.
For more information, please see the press release (link) on the IASB's website.
16 Jun. 2014
The IASB held its 5th Accounting Standards Advisory Forum (ASAF) on 2-3 June 2014 in London. Mr Clement Chan, Chair of the AOSSG; Mr Kevin Stevenson, Chairman of the Australian Accounting Standards Board; Mr Guangzhong Liu and Mr Jianqiao Lu, respectively Director-General and Director of the Accounting Regulatory Department, Ministry of Finance China; Mr Yukio Ono, Chairman of the Accounting Standards Board of Japan; and eight other members of the IASB's ASAF participated at the meeting.
The ASAF discussed:
- the scope and direction of the IASB's research projects on Equity Method of Accounting and Business Combinations Under Common Control;
- the use of a business model notion in the Conceptual Framework;
- the need to discuss executory contracts in the Conceptual Framework;
- ASAF members' views on the staff proposed accounting for participating features in insurance contracts;
- ASAF members' initial views on the IASB Discussion Paper Accounting for Dynamic Risk Management: a Portfolio Revaluation Approach to Macro Hedging; and
- how the recent or current initiatives for presentation and disclosure in ASAF members' jurisdictions can inform the scope and prioritisation of the IASB’s projects on Principles of Disclosure and Materiality that form part of the Disclosure Initiative.
A detailed summary of this ASAF meeting will be published on the IASB website shortly.