Annual Improvements
Changes to standards, however small, are time-consuming for the Board and burdensome for others. The IASB has adopted an annual process to deal with non-urgent but necessary amendments to IFRSs (the 'annual improvements process').
Issues dealt with in this process arise from matters raised by the IFRIC and suggestions from staff or practitioners, and focus on areas of inconsistency in IFRSs or where clarification of wording is required.
The process will involve an annual project in which the IASB discusses and decides on proposed improvements to IFRSs as they arise throughout the year. Rather than involving a series of piecemeal changes, the publication of the proposals in a single exposure draft is intended to streamline the standard-setting process, with benefits both for interested parties and for the IASB.
In the third or fourth quarter of the year, an omnibus exposure draft of the proposals is published for public comment, with a comment period of 90 days. After the IASB has considered the comments received, it aims to issue the amendments in final form in the following second quarter with an effective date of 1 January of the following year unless otherwise specified.
Where are we in the project?
Project cycle 2008 - 2010
In August this year the Board issued an omnibus exposure draft of proposed amendments to eleven IFRSs.
What will happen next?
In January – March the Board will discuss the comments received on the current omnibus exposure draft of proposed amendments.
Agenda proposals and proposed solutions will be presented to the Board throughout the year for the next omnibus exposure draft of proposed amendments to IFRSs.
Estimated project completion
The project does not have a single completion date because it is repeated annually. Amendments for each project cycle are expected to be finalised in the second quarter of each year with an effective date of 1 January of the following year unless otherwise specified.
Past project cycles
Project cycle 2007-2009
The project cycle that began in 2007 concluded in April 2009 when the IASB issued a collection of amendments to eight standards in Improvements to IFRSs.
Project cycle 2006-2008
The project cycle that began in 2006 has concluded. In May 2008, the IASB issued a collection of amendments in Improvements to IFRSs.
Is this project part of the Memorandum of Understanding?
No. The MoU sets out a Roadmap of Convergence between IFRSs and US GAAP.