Accounting Standards Board - Technical - Projects

Annual Improvements
This page was last reviewed in June 2010.

Related Documents

	FRED: Improvements to Financial Reporting Standards 2010


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Current Status

IASB	ASB
IASB issued IFRS of Improvements to IFRS in May 2010	ASB issued FRED in June 2010
IASB issued ED August 2009 (2009/1010) Improvements	ASB responded October 2009
IASB issued IFRS of Improvements to IFRS in April 2009	ASB incorporated amendments into 'Improvements to Financial Reporting Standard 2009' issued December 2009 ASB issued FRED in June 2009
IASB issued ED August 2008 (2008/2009 Improvements)	ASB responded October 2008
IASB issued IFRS of Improvements to IFRS in May 2008 (2007/2008 Improvements)	ASB incorporated amendments into 'Improvements to Financial Reporting Standards' issued December 2008

The Accounting Standards Board (ASB) issued a Financial Reporting Exposure Draft (FRED) in June 2010, FRED: Improvements to Financial Reporting Standards 2010. The ASB sought to make minimal amendments to FRS, given its proposals on the Future of UK Generally Accepted Accounting Practice.

The ASB has previously issued the following Improvements to Financial Reporting Standards for the UK and Republic of Ireland (FRS):

In December 2009, FRS: Improvements to Financial Reporting Standards 2009; and
In December 2008, FRS: Improvements to Financial Reporting Standards

Introduction

The ASB performs an annual review of FRS. This annual review is driven principally from the amendments made by the International Accounting Standards Board (IASB) to its International Financial Reporting Standards (IFRS) via its annual improvements process. In addition, consideration is given by the ASB to other changes made by the IASB to IFRS and to other financial reporting matters raised by constituents.

Background to IASB annual improvements process

The IASB has adopted an annual process to deal with non-urgent, minor amendments to IFRS. The process involves an annual project in which the IASB discusses and decides on proposed improvements to IFRS as they arise. The IASB then aims to publish an omnibus exposure draft of the collected proposals for public comment in October each year, with a comment period of 90 days. After the IASB has considered the comments received, it will aim to issue the amendments in final form in the following April, with an effective date of 1 January of the following year.

Issues dealt with in this process arise from matters raised by the International Financial Reporting Standards Interpretations Committee and suggestions from staff or practitioners, and focus on areas of inconsistency in IFRS or where clarification of wording is required.

How the ASB addresses the IASB’s annual improvements process

The ASB issues an exposure draft in the UK once the IASB has finalised its proposed amendments to IFRS. The ASB will endeavour to finalise any amendments to FRS by December each year.

The ASB notes that in recent years it has introduced as FRS a number of IFRS. In addition, the ASB has amended certain FRS to converge with IFRS. As a consequence, FRS might be classified as follows:

Category A	UK only Financial Reporting Standards (e.g. FRS 1, FRS 19)
Category B	UK IFRS-based Financial Reporting Standards (e.g. FRS 26 FRS 29)
Category C	Amended UK Financial Reporting Standards (e.g. FRS 17)

In view of the various categories of FRS the ASB has decided the following:

a. improvements to IFRS that have been adopted in the UK should be proposed as amendments to the equivalent IFRS-based FRS (category B would remain converged);

b. improvements to IFRS where the corresponding FRS has been amended to converge with IFRS should be proposed as amendments to the equivalent FRS (category C); and

c. it should evaluate all of the IASB improvements and where inconsistencies with FRS are identified, consider whether to amend the relevant FRS.