This special edition of Inside Track enables us at the ASB to share with you our thoughts on the future direction of financial reporting, as we look forward to 2006. As ever, it will be a busy and exciting time, when proposals will appear that will profoundly affect the future of financial reports-and of course, all that use, prepare and audit financial statements.

One of the main topics seems likely to be the role of Fair Value - Technical Director Andrew Lennard gives an overview of what is happening. In more poetic mode, Andrew also offers - on page 3 - an alternative fair value take on 'The Night Before Christmas'. Closely related to the fair value issue is the joint IASB/FASB project on its conceptual framework - ASB Secretary David Loweth provides a briefing on what has happened so far and what will happen in the next few months. Meanwhile Jennifer Guest looks forward to an expected IASB exposure draft on segmental reporting-see page 7 which will propose moving IFRS more closely in line with US GAAP.

In a more retrospective mode, Ian Mackintosh reflects on his past year as ASB Chairman. We tried to point out that ASB is neither responsible nor to blame for the Australian defeat in the Ashes - but he would mention it anyway. However, it seems that, apart from the dismal Australian sporting performance, it has been a good year. In a similarly reflective vein, Michelle Crisp reviews the responses to proposals for standards on business combinations, whilst Hans Nailor discusses revenue recognition for service contracts.

On the Operating and Financial Review (OFR), the Chancellor's announcement in late November that the Government will remove the statutory requirement for quoted companies to publish an OFR has implications for the Board's Reporting Standard (RS) 1. While the details of this decision are still being developed by the Government, David Loweth attempts to clarify what companies have to do now under the law and encourages them to carry on preparing and publishing OFRs as an important element of best practice reporting.

ASB's proposals for its future role and the convergence of UK standards with IFRS has been a key talking point, and we are looking forward to the public meeting on 19 January - do join us, as explained in the box. We are certain that 2006 will see important developments in financial reporting, and (only slightly less confidently) that it will include Christmas. But let us not close without wishing all our readers our very best wishes, for a peaceful and merry Christmas 2005.