IASB FASB October 2006

The FASB staff summarised the current status of the FASB’s liabilities and equity project by presenting three possible accounting approaches for financial instruments with characteristics of liabilities, assets and equity.

• The ownership settlement approach
• The ownership approach (a narrower view of equity)
• The reassessed expected outcomes approach

No decisions were taken. The FASB and the IASB are using the modified joint approach for this project. The FASB expects to publish for public comment its preliminary views in May 2007. The IASB plans to seek input from its constituents by issuing an invitation to comment on the FASB preliminary views document.