and repurchase agreements and PFI. An international interpretation SIC 27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’ develops a number of concepts similar to those in FRS 5 but would not replace the FRS 5 material. The international interpretation SIC 29 ‘Disclosure - Service Concession Arrangements’ does not deal with the recognition and derecognition of assets and liabilities.
The IASB has indicated a strong interest in the ASB’s current work on the recognition and derecognition of non-financial assets and liabilities and has asked the ASB to lead a research team comprising standard-setters in Australia, France, Spain and the UK on the accounting treatment of service concessions. It is unclear, however, whether the IASB intends this to result in an international standard before 2005.
UITF 13 ‘Accounting for ESOP Trusts’
UITF 32 ‘Employee Benefit Trusts and Other Intermediate Payment Arrangements’
There is no equivalent IASB material.
FRS 6 ‘Acquisitions and Mergers’
FRS 7 ‘Fair Values in Acquisition Accounting’
UITF 15 ‘Disclosure of substantial acquisitions’
UITF 22 ‘The acquisition of a Lloyd’s business’
In December 2002, the IASB published ED 3, which constitutes Phase I of the IASB’s Business Combinations project. An exposure draft of Phase II is due this year; both parts of the project are needed to provide equivalent material to the UK standards. The ASB’s December 2002 consultation paper on Business Combinations provides further explanation.
UITF 31 ‘Exchanges of Businesses or Other Non-monetary Assets for an Interest in a Subsidiary, Joint Venture or Associate’
The UK material on joint venture formation is largely paralleled in the international interpretation, SIC 13 ‘Jointly Controlled Entities —Non-
Monetary Contributions by Venturers’. Other aspects of UITF 31 may be considered by the IASB as part of the business combinations project (see FRS 6 above).
FRS 8 ‘Related Party Disclosures’
Proposed amendments to the equivalent international standard IAS 24 ‘Related Party Disclosures’ were published by the IASB in May 2002 and at the same time by the ASB in FRED 25. The IASB has not yet concluded its discussion of the responses to that consultation.
FRS 9 ‘Associates and Joint Ventures’
Equivalent international material is largely set out in IAS 28 ‘Accounting for Investments in Associates’ and IAS 31 ‘Financial Reporting of Interests in Joint Ventures’. Proposals for minor amendment to IAS 28 were issued in May 2002 (and included in the ASB’s consultation paper of the same date); the IASB has since proposed a small amendment to the definition of a joint venture (in its December 2002 Phase I Business Combinations project). IAS 31 is due for review as part of the US/IAS short-term convergence project. The IASB may also decide to effect a more fundamental revision of accounting for both associates and joint ventures.
FRS 10 ‘Goodwill and Intangible Assets’
FRS 11 ‘Impairment of Fixed Assets and Goodwill’
UITF 27 ‘Revisions to Estimates of the Useful Economic Life of Goodwill and Intangible Assets’
UITF 24 ‘Accounting for Start-up Costs’
Proposals to amend the corresponding international standards, IAS 38 ‘Intangible Assets’ and IAS 36 ‘Impairment of Assets’ were issued by the IASB in December 2002. Commentary on the principal differences from current UK standards is included in the ASB consultation paper on Business Combinations, issued at the same time.
The international material on start-up costs, included in IAS 38, is similar to UITF 24.
FRS 12 ‘Provisions, Contingent Liabilities and Contingent Assets’
IAS 37 (of the same name as FRS 12) is virtually identical to the UK standard. The international standard has recently been listed by the IASB for reconsideration as part of the short-term US/IAS convergence project. The IASB has tentatively agreed to change the definition of a ‘constructive obligation’ and revise the guidance on provisions for restructuring costs.
FRS 13 ‘Derivatives and other Financial Instruments: Disclosures’
Proposals to revise IAS 32 ‘Financial instruments: Disclosure and Presentation’ were issued by the IASB in June 2002. At the same time, the ASB issued FRED 30, which explains how this material would replace FRS 13 and related standards and requirements. Responses to the IASB’s consultation on IAS 32 are now under consideration; the standard is also due to be reviewed as part of the short-term US/IAS convergence project.
Further material on the disclosure of financial instruments, which may result in amendment to IAS 32, seems likely to arise from the IASB’s current consideration of IAS 30 ‘Disclosures in the Financial Statements of Banks and Similar Financial Institutions’.
FRS 14 ‘Earnings per Share’
Proposals to amend the IASB’s equivalent standard, IAS 33 ‘Earnings per Share’ were issued in May 2002 and included in the UK’s FRED 26, published at the same time. The IASB has not yet concluded its discussion of the responses to that consultation.
FRS 15 ‘Tangible Fixed Assets’ UITF 23 ‘Application of the Transitional Rules in FRS 15’
The equivalent international text is split between IAS 16 ‘Property, Plant and Equipment’ and IAS 23 ‘Borrowing Costs’, as explained in the ASB’s
FRED 29, issued in May 2002. FRED 29 includes the IASB’s proposals to amend IAS 16, although the IASB has not yet completed its consideration of fixed asset revaluations, part of IAS 16. It has in addition indicated its
