IASB December 2007

Liabilities and Equity is a modified joint project on which the FASB has taken the lead for the research stage. In November 2007 the FASB issued a Preliminary Views document Financial Instruments with Characteristics of Equity.

In terms of the Memorandum of Understanding between the IASB and the FASB, the boards have committed to issue a due process document on liabilities and equity. To meet this commitment, the Board decided that an IASB discussion paper on liabilities and equity should contain an IASB Invitation to Comment and the FASB document. The Invitation to Comment will include background information relevant to IFRSs, the main differences between the approaches discussed in the FASB document and IFRS requirements, and any necessary additional questions for constituents. The Board expects to publish the discussion paper in the first quarter of 2008.

Also at this meeting, representatives from the FASB held an education session on the FASB document. No decisions were made.