This presentation by Li Li Lian was made at the 14th Annual OECD Public Sector Accruals Symposium, Paris 3-4 March 2014. Find out more at http://www.oecd.org/gov/budgeting/14thannualoecdpublicsectoraccrualssymposiumparis3-4march2014.htm

1. 3 March 2014
International Financial Reporting Standards
IASB Update
Focusing on the issues more interest to the public sector
March 2014
Li Li Lian, Technical Manager
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation.
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

2. Highlights for 2014
• IFRS 9 Financial Instruments
– Effective January 2018
– Developed in 3 phases,
– Classification and Measurement (IFRS in Q2 2014)
– Impairment (IFRS in Q2 2014)
– Hedge accounting (IFRS published in November 2013)
• Revenue recognition
– Joint project with US-FASB
– Target publication Q2 2014
– will replace IAS 18 Revenue (IPSAS equivalent: IPSAS 9—
Revenue from Exchange Transactions)
– Effective date 1 Jan 2017
– Transition Resource Group to help with implementation
issues
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
2

3. 3
International Financial Reporting Standards
Other current projects
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

4. Leases
• Joint project with US FASB
• Will replace IAS 17 Leases
(IPSAS equivalent: IPSAS 13 Leases)
• Now considering issues
– ED issued in May 2013 (comment letter ended in Sept
2013)
– Received >640 comment letters
• Biggest issue: Lessee accounting and the effect of
capitalising of operating leases
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
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5. Rate-regulation
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• Interim Standard IFRS 14 Regulatory Deferral Accounts
– Published January 2014, Effective January 2016
• Longer-term Standard
– Discussion paper in 2Q 2014
– To consider whether rate-regulation could give rise to
assets (or liabilities)
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

6. Disclosure initiative
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• Shorter-term:
– to clarify requirements in IAS 1 Presentation of Financial
Statements
– ED expected in end March 2014
– Materiality:
– Working with IAASB and IOSCO
– assessing existing guidance to determine whether
additional educational is needed
• Longer-term:
– Principle of disclosure (replacement of presentation,
disclosure and cash-flow statement Standards)
– Review of existing Standards
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

7. Conceptual Framework
• Discussion Paper issued in July 2013
– 6-month comment period
– Received >220 comment letters
• Focus on financial statements:
– Refocus definitions of assets and liabilities and
recognition
– similar approach to IPSASB’s
– Develop some measurement concepts, mixed
measurement
– Similar approach to IPSASB’s
– Develop presentation and disclosure principles
– IPSASB’s broader focus, consider financial reporting
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
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8. More information
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• IASB work plan:
– http://www.ifrs.org/Current-Projects/IASBProjects/Documents/2014/Work-plan-February-2014.pdf
• Implementation work plan
– http://www.ifrs.org/Current-Projects/IFRICProjects/Pages/IFRIC-activities.aspx
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org