Beyond the GAAP - May 2013 issue
When in August 2010, the IASB and the FASB published a joint exposure draft on leases, they could have had no idea that they would have to re-expose their proposals three years later. This, however, is what they were forced to do on 16 May 2013, so generally hostile were responses to the initial draft, so complicated the redeliberations and so changeable the positions.
The objective of improving the way in which leases are reported has not changed, but the solutions now proposed to achieve this end are significantly different from those put forward in the first exposure draft. This can partly be explained by the reintroduction of lease categories, justifying the coexistence of a dual approach to the accounting models. It remains to be seen if these new proposals will satisfy the critics!
Highlights
IFRS Standards
- IASB extends the scope of the relief proposed in draft amendments to IAS 39 and IFRS 9, Novation of Derivatives and Continuation of Hedge Accounting.
- The IASB continues its comprehensive review of IFRS for SMEs
- Hedge accounting: choice of accounting principles in IFRS 9 and IAS 39
- Publication of a limited amendment to IAS 36
- The future Revenue Recognition standard will soon be published!
- Conceptual framework
- IASB publishes a summary of feedback from Disclosure Forum
- IFRIC issues definitive interpretation on levies (IFRIC 21)
A Closer Look
- Standards and interpretations applicable at 30 June 2013
- IASB and FASB publish the 2nd ED on Leases
- Impact of IFRS 7 amendment on the transfer of financial assets on the financial statements at 31 December 2012
