intention to revisit IAS 16 as part of the short-term US/IAS convergence project.
UITF 29 ‘Website Development Costs’
An international interpretation SIC 32 ‘Intangible Assets - Web Site Costs’ is similar to UITF 29, although it requires websites to be treated as intangible fixed assets.
FRS 16 ‘Current Tax’
See FRS 19 below.
FRS 17 ‘Retirement Benefits’
UITF 35 ‘Death in Service and Incapacity Benefits’
The IASB has included the corresponding international standard, IAS 19 ‘Employee Benefits’ in its short-term US/IAS convergence project. It is, at the same time, carrying out a more fundamental review of IAS 19, which it hopes will result in an exposure draft this year.
FRS 18 ‘Accounting Policies’
Equivalent, though less detailed, material is included in IAS 1 ‘Presentation of Financial Statements’ and IAS 8 ‘Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies’. Proposals for improvement to IAS 1 and 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. IAS 1 and IAS 8 are also due to be reconsidered as part of the US/IAS short-term convergence programme.
FRS 19 ‘Deferred Tax’
UITF 19 ‘Tax on Gains and Losses on Foreign Currency Borrowings that Hedge an Investment in a Foreign Enterprise’
FRS 16 ‘Current Tax’
Both IAS 12 ‘Income Taxes’ and its US equivalent require rather more provision for deferred taxation than the UK standard. The IASB has listed IAS 12 for review as part of its short-term US/IAS convergence project. Two international interpretations seem likely to be considered during this work - SIC 21 ‘Recovery of Revalued Non-depreciable Assets’ and SIC 25
‘Income Taxes - Changes in the Tax Status of an Enterprise or its Shareholders’.
UITF 25 ‘National Insurance Contributions on Share Option Gains’
There is no IASB equivalent.
UITF 26 ‘Barter transactions for advertising’
The international interpretation SIC 31 ‘Revenue - Barter Transactions Involving Advertising Services’ is comparable.
UITF 17 ‘Employee Share Schemes’
UITF 30 ‘Date of Award to Employees of Shares or Rights to Shares’
New international proposals for accounting for share-based payment were published by the IASB as ED 2 and by the ASB as FRED 31 in November 2002. These would result in substantial change to accounting for employee, and other, share-based payments.
UITF 4 ‘Presentation of Long-term Debtors in Current Assets’
Similar material is in IAS 1 ‘Presentation of Financial Statements’. The IASB has not yet completed its consideration of responses to its May 2002 consultation to improve IAS 1; it is also due to reconsider that standard as part of the US/IAS short-term convergence programme.
UITF 5 ‘Transfers from Current Assets to Fixed Assets’
There is no IASB equivalent.
Financial Reporting Standard for Smaller Entities [FRSSE]
There is presently no international equivalent, although an IASB Advisory Panel has now started work to consider the use of IAS by small and medium-sized entities and in emerging economies.
Other IASB standards and projects
IAS 18 ‘Revenue’
The IASB’s standard is more extensive than relevant UK material (though see SSAP 9 above), but is widely acknowledged to need improvement. It is due to be substantially revised as part of a joint project between the US standard-setter and the IASB. This project is also scheduled to consider concepts of debt and equity and may thus affect earlier IASB proposals on the presentation of financial instruments.
First-time Application of International Financial Reporting Standards
The IASB’s ED 1 on this topic was issued in July and included in an ASB consultation paper. Responses to that consultation are currently being considered.
Insurance contracts
This critical international project is now being split into two phases, as explained in Inside Track 33, page 3. An exposure draft of the first phase is due this year.
IAS 34 ‘Interim Financial Reporting’
The IASB has signalled its intention to review and potentially to revise this international standard, which closely corresponds with non-mandatory ASB guidance, as part of the short-term US/IAS convergence project.
IAS 39 ‘Financial Instruments: Recognition and Measurement’
This IASB standard includes material on the measurement of financial instruments and on hedge accounting for which there is no present UK equivalent. Amendments to IAS 39 were published for comment in June 2002 (and by the ASB in FRED 30). The IASB is currently considering responses received; it has also indicated an intention to reconsider IAS 39 in the short-term US/IAS convergence project.
IAS 41 ‘Agriculture’
There appear to be no plans to revise the IASB’s standard on accounting for agricultural products, which requires biological assets to be reported at fair value.
