FRC approved plan

Output to 30 June 2003

Director, Executive and Related Party Disclosures (issue amended Standard)

Comments on Exposure Draft ED 106 were considered by the Board. The Board has agreed the requirements of an amended Standard and is awaiting outcome of the IASB project on Share-based Payment before finalising the Standard. ED 106 relates solely to Corporations Act entities.

Impairment of assets (issue new standard)

Comments on Exposure Draft ED 104 were considered by the Board in preparing its submission to the IASB on IASB ED 3 on the Business Combinations Phase 1 Project. Further developments including the adoption of the IASB Standard depends on the IASB timetable.

Investment property (issue new standard)

Comments on Exposure Draft ED 103 were reviewed in the context of the IASB's Improvements Project. The Board undertook further consideration as part of the adoption of IAS 40

Public infrastructure disclosures

The AASB is observing the work of the HOTARAC - PPPI Sub-committee. AASB was also a member of IASB project team on service concessions during the year.

Reconciliation of government general purpose financial reporting with government financial statistics.

Project is being advanced in association with a HOTARAC Sub-committee. A Reference committee and a project advisory panel are being formed.

Issue AASB exposure draft comprising IASB exposure draft on First-time Adoption of International Financial Reporting Standards with added AASB material. Review responses, make submissions to IASB and monitor developments.

Exposure Draft ED 107 issued August 2002. Comment period closed 7 October 2002. 9 responses were received.

Comments were reviewed and submissions made to the IASB. Issues relating to adoption of IASB Standards are being addressed.

Proposed improvements to IAS's (see below) and their impact on Australian Standards were issued as an Invitation to Comment. Review responses to Invitation to Comment, make submissions and monitor IASB proposals, monitor IASB deliberations and outcomes, issue AASB Standards adopting IASB Standards.

Responses to Invitation to Comment reviewed and submissions made to IASB. IASB deliberations are being monitored with the intention of adopting amended Standards when they are issued by the IASB.

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 balance sheet date

IAS 16 Property, plant and equipment

IAS 17 Leases

IAS 21 The effects of changes in foreign exchange rates

IAS 24 Related party disclosures

IAS 27 Consolidated financial statements and accounting for investments in subsidiaries

IAS 28 Accounting for investments in associates

IAS 32 Financial instruments - disclosure and presentation

IAS 33 Earnings per share

IAS 39 Financial instruments - recognition and measurement

IAS 40 Investment property

Issue AASB exposure draft comprising IASB exposure draft on Business Combinations Phase 1 Project (incorporating goodwill, impairment of assets and intangible assets) with added AASB material. Review responses, make submissions to IASB and monitor developments.

Exposure Draft ED 109 issued December 2002. Comment period closed 10 March 2003. 19 responses were received.

Comments were reviewed and submissions made to IASB. IASB deliberations and outcomes being monitored.

Issue AASB exposure draft comprising IASB exposure draft on Share-based Payment with AASB wrap around. Review responses, make submissions to IASB and monitor developments.

Exposure Draft ED 108 issued November 2002. Comment period closed 31 January 2003. 17 responses were received.

Comments were reviewed and submissions made to IASB. IASB deliberations and outcomes being monitored.

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 the policy of adoption of IASB Standards.

Joint Project for IASB on Accounting for the Extractive Industries. AASB is leader of working group to prepare IASB exposure draft (for interim standards for 2005) and develop proposals as part of a longer-term project.

The Board was a joint participant with the IASB on its convergence project to review the requirements in IAS 19 Employee Benefits relating to defined benefit plans and on accounting for joint ventures as part of the IASB's improvements project.

The AASB issued ED 115 Request for Comment on IAS 19 Employee Benefits in July 2003 as part of the Year 2005 project.

Issues papers prepared for consideration of IASB in April 2002. Draft exposure draft being prepared by working group. Exposure draft expected to be issued in Quarter 4, 2003.

Research report on Australian requirements relating to presentation of a full parent entity financial report with a group's consolidated report in the entity's annual financial report.

Contractor has undertaken web-based questionnaire research and conducted a series of interviews of a selected group of users of financial reports. Results have been analysed and report is being prepared.

Finalising a report on the issues relating to the valuation and accounting for land under roads.

The AASB 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. AASB 1045 formalising this decision was issued in October 2002.

Review and update Accounting Standards AAS 27 Financial Reporting by Local Governments, AAS 29 Financial Reporting by Government Departments and AAS 31 Financial Reporting by Governments.

The AASB consulted with local government bodies and considered issues relating to budget reporting, performance indicators, and revenue and expense recognition. An exposure draft proposing revisions to AAS 27 is in preparation.

The AASB has made significant progress in developing an exposure draft proposing revisions to AAS 29 and AAS 31. Work on this project has slowed because of the high priority given to the GAAP/GFS convergence project.

Superannuation plans (revision and updating of AAS 25 Financial Reporting by Superannuation Plans) and managed investment schemes.

No progress. Work on these projects has been deferred because of priorities given to adoption of IASB Standards and GAAP/GFS convergence.

Not-for-Profit entities.

No progress. Work on this project has been deferred because of priorities given to adoption of IASB Standards and GAAP/GFS convergence.

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.

Review of operative date of AASB 1020 Income Taxes issued in December 1999.

Entities sought deferral of the operative date of the Standard because of the implications and interaction with the implementation of the tax consolidation legislation. AASB 1020B was issued in November 2002.

Issue of Accounting Interpretation AI 2 Transition to AASB Equivalents of IASB Standards and Applying the Hierarchy of Pronouncements in AASB 1001 and AAS 6.

Issued by the AASB in response to concerns about transition to IASB Standards and to clarify hierarchy of pronouncements. AI 2 was issued in May 2003.