Hyperinflationary Economies’, as explained in the ASB’s FRED 24, issued in May 2002. FRED 23, issued at the same time, sets out complementary material from IAS 39 ‘Financial Instruments: Recognition and Measurement’ to replace and extend the hedge accounting guidance in SSAP 20. The IASB is currently considering responses to its proposals to revise IAS 21 and IAS 39; it has also indicated its intention to reconsider IAS 29 and IAS 39, as part of the short-term US/IAS convergence project.
UITF 21 ‘Accounting Issues arising from the Proposed Introduction of the Euro’
The equivalent international material is in SIC 7 ‘Introduction of the Euro’.
SSAP 21 ‘Accounting for Leases and Hire Purchase Contracts’
UITF 28 ‘Operating Lease Incentives’
Equivalent international material is largely set out in IAS 17 ‘Leases’ and the related interpretation SIC 15 ‘Operating Leases - Incentives’. Proposals for amendment to IAS 17 were issued in May 2002 (and included in the ASB’s consultation paper of the same date); the IASB has not yet completed its consideration of responses received.
The IASB has since indicated a keen interest in the ASB’s work to carry out a more fundamental review of IAS 17; however, it now seems unlikely that the IASB will be in a position to issue a major revision to the international standard before 2005.
SSAP 24 ‘Accounting for Pension Costs’
UITF 6 ‘Accounting for Post-Retirement Benefits other than Pensions’
See FRS 17 below.
SSAP 25 ‘Segmental Reporting’
It seems likely that the project on Reporting Financial Performance (see FRS 3 below) will have implications for the equivalent international standard, IAS 14 ‘Segment Reporting’. The IASB has also noted IAS 14 for ‘convergence’ in due course.
FRS 1 ‘Cash Flow Statements’
The IASB has indicated its desire to reconsider the equivalent international standard, IAS 7, as part of its work on Reporting Financial Performance (see FRS 3 below).
FRS 2 ‘Accounting for Subsidiary Undertakings’
Equivalent international material is largely set out in IAS 27 ‘Consolidated Financial Statements and Accounting for Investments in Subsidiaries’. Proposals for minor amendments to IAS 27 were issued in May 2002 (and included in the ASB’s consultation paper of the same date). The IASB has since started a more fundamental review of the international material on consolidation procedures.
FRS 3 ‘Reporting Financial Performance’
The current IASB/ASB project on Reporting Financial Performance is relevant to much of the material in FRS 3. An exposure draft is expected this year.
FRS 3’s guidance on discontinued operations has its international equivalent in IAS 35 ‘Discontinuing Operations’. The IASB has recently decided to align the presentational aspects of IAS 35 with the US equivalent (FAS 144); an IASB exposure draft is expected this year.
Material on changes in accounting policies has its international equivalent in IAS 8 ‘Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies’. Proposals for minor amendments to IAS 8 were issued in May 2002 (and included in the ASB’s consultation paper of the same date); the IASB has not yet completed its consideration of responses received. Meanwhile, IAS 8 is being reconsidered as part of the US/IAS short-term convergence programme.
FRS 4 ‘Capital Instruments’
UITF 11 ‘Capital Instruments: Issuer Call Options’
UITF 33 ‘Obligations in Capital Instruments’
In June 2002, the ASB issued FRED 30, which explained how IAS 32 ‘Financial Instruments: Disclosure and Presentation’ would replace FRS 4 and related standards and requirements. FRED 30 includes the IASB’s proposals to revise IAS 32 (though see also FRS 13 below).
Responses to the IASB’s consultation on IAS 32 are now being considered. Meanwhile, this standard is listed for review as part of the short-term US/IAS convergence project; further changes may also arise from the joint project between the US standard-setter and the IASB (see IAS 18 below) which will consider concepts of liabilities and equity.
FRS 5 ‘Reporting the Substance of Transactions’
Material in the IASB’s June 2002 proposals to revise IAS 39 ‘Financial Instruments: Recognition and Measurement’ (published in the ASB’s document on FRED 30) would replace much of the guidance in FRS 5 concerning the recognition and derecognition of financial instruments. The approach set out in IAS 39 is fundamentally different from that in FRS 5.
The IASB is currently considering responses to its IAS 39 consultation; it has subsequently listed IAS 39 for review as part of the short-term US/IAS convergence project.
Guidance on the treatment of quasi-subsidiaries is included in FRS 5. The IAS equivalent is in SIC 12 ‘Consolidation - Special Purpose Entities’, which seems likely to be reviewed and revised as part of the IASB’s review of consolidation procedures (see FRS 2 above).
There is no international standard on the recognition and derecognition of non-financial assets and liabilities, to replace material such as that given in the FRS 5 application notes on sale
