ASB's future role

The consultation period on the ASB's Exposure Draft 'Accounting Standard-setting in a Changing Environment: The Role of the Accounting Standards Board' closed on 15 September. The comments received are currently being analysed.

Technical corrections

In July the IASB issued a draft policy on technical corrections for comment. Under this proposed policy, the IASB would make minor amendments to standards following a 30-day exposure period. This procedure is intended to address issues for which it is clear that the words in a standard do not properly convey the IASB's intention, even when considered with the basis for conclusions and any related guidance. A Technical Correction may also address unexpected consequences of a standard that the IASB would have corrected, had it been aware of them when the standard was issued. Technical Corrections would normally be effective immediately and applied retrospectively.

The ASB has responded to IASB expressing its view that, although the proposal was appropriate for some minor corrections, it should not be used for cases where the existing standard is unambiguous and entities may have already adopted accounting policies in accordance with the requirements, since the Technical Correction might in these cases mean that previously announced results might need to be restated. A more formal due process should be followed in such cases. The ASB's response can be accessed at http://www.frc.org.uk/images/uploaded/documents/TC%20response%20to%20IASB.pdf.

If IASB's proposed Technical Corrections policy is finalised in its present form ASB envisages that future Technical Corrections would be reflected in UK standards following a short consultation period. ASB will, as soon as possible after publication of each proposed Technical Correction:

• draw attention to the IASB's proposals for a Technical Correction;
• indicate whether it considered a parallel change should be made to a UK standard; and
• seek views from its constituents.

When the final Technical Correction is issued the ASB would, after consideration of the views received, amend the corresponding UK standard.

Details of the IASB's first draft Technical Correction are on page 6.

Heritage Assets

The Board's Committee on Accounting for Public-benefit Entities, in collaboration with the International Public Sector Accounting Standards Board, is developing proposals for the accounting treatment for 'heritage assets', including collections held by museums and galleries. The proposals will set out practical accounting approaches designed to improve the consistency and transparency of the financial reporting of such assets. The ASB will issue a UK Discussion Paper before the end of the year.