IASB February 2008

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 published a Preliminary Views document Financial Instruments with Characteristics of Equity.

Their Memorandum of Understanding commits the IASB and the FASB to publish a due process document on liabilities and equity. To meet this commitment, the Board tentatively decided that an IASB discussion paper on liabilities and equity should contain an IASB Invitation to Comment and the FASB Preliminary Views document.

In January, the Board discussed a staff draft of the discussion paper and asked the staff to prepare a ballot draft. At this meeting, the Board decided that the discussion paper should alert readers to another discussion paper Distinguishing between Liabilities and Equity published in January 2008 by the European Financial Reporting Advisory Group (EFRAG) on behalf of the Pro-active Accounting Activities in Europe (PAAinE). The Board expects to publish its discussion paper in the next few weeks.