Appendix E
Progress made on 2001-02 work program
Highest priorities
| FRC approved plan | Output to 30 June 2002 |
| New and revised standards under the international harmonisation program on: | |
| Provisions, contingent liabilities and contingent assets (finalisation of standard) | AASB 1044 issued October 2001. |
| Impairment of assets (including consideration of responses to Exposure Draft ED 99 issued December 1999) | Responses did not support ED 99 proposals. ED 104, reflecting requirements of IAS 36 adjusted to include requirements relating to not-for-profit entities, issued March 2002. |
| Investment property (issue of exposure draft) | Exposure Draft ED 103 reflecting IAS 40 issued
December 2001. Comment period closed 31 March 2002. Twenty-nine
responses were received. |
| Other new and revised standards: | |
| Revaluation of Non-Current Assets (limited amendments arising from Exposure Draft ED 101) | Revised AASB 1041 issued July 2001. |
| Public Infrastructure Disclosures (including consideration of responses to Exposure Draft ED 100) | Project is being progressed in association with HOTARAC - PPPI Sub-committee. An AASB project manager appointed to that Sub-committee. Sub-committee is considering recognition as well as disclosure. |
| Related Parties and Director and Executive Disclosures (issue of exposure draft and finalisation of revised standards) | ED 106 `Director, Executive and Related Party Disclosures' issued in May 2002 for comment by 30 September 2002. ED 106 relates solely to Corporations Act entities. |
| The preparation of an issues paper dealing with the recognition and measurement of intangible assets, including goodwill. The objective is to obtain input from constituents on key issues. An exposure draft will be issued in conjunction with the IASB's first phase project on Business Combinations. This project includes issues relating to acquired intangible assets. | Staff paper placed on web-site prior to the AASB December meeting. Field-testing of FASB approach conducted with seven companies in conjunction with G100. Results of field testing provided to IASB. IASB Business Combinations (Phase I) project is being closely monitored. IASB tentative decisions are being routinely considered by Board. AASB's tentative views communicated to IASB. An Australian exposure draft will be issued in conjunction with IASB exposure draft on Business Combinations, Intangible Assets and Impairment of Assets via a `wrap-around'. Timetable is dependent on IASB, but is anticipated to be 4th quarter 2002. |
| Reconciliation of government general purpose financial reporting with government financial statistics. The objective is to determine whether or not such a reconciliation should form part of general purpose financial reports and if so, whether such inclusion is presently feasible. | Project is being advanced in association with a HOTARAC Sub-committee. A Board member has been appointed to act as the Board's representative on the Sub-committee. An AASB senior project Manager is providing technical support. HOTARAC's recommendations are scheduled to be submitted to AASB by 3rd quarter 2002. |
| Study of the reporting issues relating to dual-listed entities and consideration of an exposure draft. | Issues paper presented to the December meeting of the AASB and recommendations approved. An `international' version provided to the IASB staff. The IASB has now included accounting for such entities in its Business Combinations Phase II project. |
| Study of responses to the Invitation to Comment on the Joint Working Group Draft Standard on Accounting for Financial Instruments and Similar Items, in conjunction with other national standard setters and the International Accounting Standards Board. As an immediate measure the Board will issue an exposure draft based on the International Standard IAS 39 Financial Instruments: Recognition and Measurement, in conjunction with the IASB's priority project on improvements to that standard. | No action by AASB. AASB has received a summary of global responses prepared by the CICA (on behalf of the IASB). There are 30 Australian responses.In June 2002, the AASB issued an Invitation to Comment on the IASB's proposed improvements IAS 32 Financial Instruments: Disclosure and Presentation and IAS 39 Financial Instruments: Recognition and Measurement. Comments are due by mid-September 2002 to enable the AASB to have the benefit of Australian constituents' views in making its own comments on the IASB's ED to improve IAS 32 and IAS 39 by mid-October. |
Other projects
| FRC approved plan | Output to 30 June 2002 |
| IASB Convergence and Standards Improvement Projects. The Board's intention is to take a lead role on a limited number of appropriately prioritised IASB projects, as well as a supporting or monitoring role on others. The AASB will need to keep abreast of the work of the IASB on an ongoing basis in view of its harmonisation policy. To assist in this project, AASB staff will publish a `Convergence Handbook' comparing AASB standards with International Standards. | Share-based payments: Letter issued to subscribers concerning the IASB's project on Share-based payments and the re-opening of the G4+1 Proposals for comment until 15 December 2001. IASB has posted responses in IASB website. AASB is monitoring IASB progress.Preface to International Financial Reporting Standards - IASB Exposure Draft:IASB exposure draft placed on web-site with a request that Australian respondents send copies of responses to both the IASB and AASB. AASB submitted a response to the IASB, after considering Australian responses.`The Australian Convergence Handbook' published February 2002.Input provided to UK ASB on case studies relating to `control' consolidation model for IASB's Business Combination Phase II project. |
| Participated in meetings of `revaluation' standard-setters relating to revaluation of non-current assets. The September 2001 meeting was held in connection with the IASB meeting of chairmen of liaison standard-setters. A further meeting was held in Auckland in March 2002.In May 2002, the AASB issued an Invitation to Comment on proposed improvements to 12 existing IASB standards. Comments are due by mid-August 2002 to enable the AASB to have the benefit of Australian constituents' views in making its own comments on the IASB's ED to improve various IASs by mid-September. | |
| Post-employment benefits. Consideration of issues as an IASB convergence project. | The AASB and the IASB have agreed to jointly conduct a review of the requirements in IAS 19 Employee Benefits relating to defined benefit plans. |
| Finalising a report on the issues relating to the valuation and accounting for land under roads. The objective is to provide input to the Board to assist its deliberations on whether to retain the requirements of AAS 27 Financial Reporting by Local Governments, AAS 29 Financial Reporting by Government Departments, and AAS 31 Financial Reporting by Governments which presently require the recognition of land under roads, following the expiration of transitional provisions in 31 December 2002. | Report placed on web-site prior to November AASB meeting. The AASB consulted further with entities that have already recognised land under roads concerning, inter alia, measurement methods adopted and the costs and benefits such entities attribute to the recognition of land under roads. The AASB has agreed that the option to recognise or not recognise land under roads be extended until there is greater international convergence on the recognition and measurement of land under roads by public sector entities. A Standard formalising this decision will be issued in the 3rd quarter of 2002. |
| Review and updating of Accounting Standards AAS 27 Financial Reporting by Local Governments, AAS 29 Financial Reporting by Government Departments and AAS 31 Financial Reporting by Governments. | HOTARAC's broad recommendations concerning AAS 29 and AAS 31 have been received. Issues paper is in process of preparation by AASB staff for consideration by AASB. Further HOTARAC papers are expected on specific issues.The AASB considered papers on AAS 27 and agreed to propose a slimmed-down version of AAS 27, removing material dealt with adequately in other Standards. |
| Superannuation plans (revision and updating of AAS 25 Financial Reporting by Superannuation Plans) and managed investment schemes. AAS 25 is in need of revision and updating. Managed investment schemes are being considered in conjunction with superannuation plans given the interrelationship between superannuation plans and managed investments. | The ICAA Superannuation Working Party presented its recommendations to the AASB at its December meeting. AASB requested AASB staff to prepare a key issues paper to assist in its deliberations on the Working Party's recommendations.AASB staff are to prepare a paper on issues relating to managed investment schemes. |
| Not-for-Profit entities. A contractor has submitted an incomplete discussion paper identifying major issues in financial reporting by not-for-profit entities, including matters that may be dealt with in an accounting standard. The Board will examine the report and the desirability of issuing an accounting standard on the topic. | No progress. The project has been transferred to the 2002-2003 work program. |
| Review of Accounting Standard AASB 1015 Acquisition of Assets in view of the Senate's disallowance of paragraphs 6.3 and 6.4. | The AASB has resolved to align its work program on this issue with that of the IASB. The IASB intends to consider restructuring of controlled entities in its Business Combinations Phase II project. |
Unplanned work
| Review of issues arising out of first time implementation of `Trilogy' Accounting Standards (AASB 1018/AAS 1 `Statement of Financial Performance'; AASB 1040, AAS 36 `Statement of Financial Position'; and AASB 1034, AAS 37 `Financial Report Presentation and Disclosures'). | The AASB requested submissions on issues in September 2001. The AASB considered the submissions received and in April 2002 issued ED 105 proposing amendments to address certain issues raised. AASB 1018 was reissued in June 2002. Proposed changes to the other Trilogy Standards have been deferred and will be addressed as part of the 2002-2003 International Convergence and Harmonisation program. |