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 recieved, 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 now?
Project cycle 2007-2009
In August this year the Board issued an omnibus exposure draft of proposed amendments to eight 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.
During its deliberation of comments received on the exposure draft published in October 2007, the IASB decided to postpone reconsideration of some of the proposals until more analysis could be completed.
The Board also decided to issue separately the amendment to restructure IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendments issued in May 2008 do not include those proposals.
During its redeliberations of comments received on the exposure draft published in October 2007, the IASB decided to reconsider the scope and process for future improvements.
At its May 2008 meeting, the Board discussed and adopted a number of proposed changes to improve efficiency and ease consultations for constituents.
Is this project part of the Memorandum of Understanding?
No. The MoU sets out a Roadmap of Convergence between IFRSs and US GAAP.
Next due process step
Agenda proposals and proposed solutions will be presented to the Board throughout the year.
Due process steps completed
Stage 1: Setting the agenda
The Board formally adopted this project in July 2006. It is a standing technical agenda project. The Board evaluates whether an amendment is appropriate to address the identified issue in this project the same way as it evaluates all other technical agenda decisions which requires judgment.
Stage 2: Project Planning
This project is being conducted by the IASB only. It is limited to amendments to standards that are non-urgent but necessary improvements. A working group has not been established as the scope of the project is limited.
Stage 3: Development and publication of a discussion paper
A discussion paper is not a mandatory step in the IASB Due Process Handbook. A discussion paper is not necessary for this project as the Exposure Draft process is expected to provide the most suitable opportunity for feedback on the proposals.
Stage 4: Developing an Exposure Draft
The omnibus exposure draft for the project cycle from 2006 to 2008 was issued in October 2007. The comments letter deadline was January 11 2008. The omnibus exposure draft for the project cycle from 2007 to 2009 is expected to be published in the third quarter of 2008 for public comment, with a comment period of 90 days.
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 April of each year commencing 2008.
Further information