Global Standards for the world economy

Monday 17 June 2019

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Fair Value Measurement: Unit of Account

Fair Value Measurement: Unit of Account


 Due process steps

Stage 1: Exposure Draft

 

Step Required/
Optional
Metrics or
evidence
Evidence provided to DPOCActions
Board meetings held in public, with papers available for observers. All decisions are made in public session.

Required

Meetings held.

Project website contains a full description with up-to-date information.

Meeting papers posted in a timely fashion.

Members of the IASB have discussed with the DPOC the progress of the due process that is being conducted on major projects.

The DPOC has reviewed, when appropriate, the comments that have been received from interested parties on the due process that the IASB followed.

This issue was discussed by the IASB during its February, March, May, December 2013 and February 2014 meetings. The IASB decided to propose a narrow-scope amendment to IAS 27, IAS 28, IAS 36 and IFRS 10 and to publish a non-authoritative example to illustrate the application of the portfolio exception in IFRS 13.

A webpage was created for this specific project containing a full description and up to date information.

An IASB Update was posted after each of the IASB meetings at which this issue was discussed.

Consultation with the Trustees and the Advisory Council.

Required

Discussions with the Advisory Council.

The DPOC has met with the Advisory Council to understand stakeholders’ perspectives.

The Advisory Council Chair is invited to Trustees’ meetings and meetings of the DPOC.

Because of the narrow scope nature of the amendments this was considered to be unnecessary. Nevertheless, references to the project were included in the technical activities update reports to the DPOC at their meetings in July 2013 (Agenda Paper 3B), October 2013 (Agenda Paper 3B) and January 2014 (Agenda Paper 3B).

Analysis of the likely effects of the forthcoming Standard or major amendment, for example, initial costs or ongoing associated costs.

Required

Publication of the Effect Analysis as part of the Basis for Conclusions.

The IASB has reviewed, with the DPOC, the results of the Effect Analysis and how it has considered such findings in the proposed Standard.

The IASB has provided a copy of the Effect Analysis to the DPOC at the point of the Standard’s publication.

This is a narrow-scope amendment and its objective is to clarify the measurements of quoted investments at fair value and the measurement of the recoverable amount of CGUs on the basis of fair value less costs of disposal when they coincide with a quoted entity. We believe that the clarification might change the current practice of only a small number of entities. The implementation of the proposed requirements should, however, not represent a significant cost.

Finalisation:
Due process steps reviewed by the IASB.

Required

Summary of all due process steps discussed by the IASB before a Standard is issued.

The DPOC has received a summary report of the due process steps that have been followed before the Exposure Draft is issued.

To be discussed at the February 2014 IASB meeting.

The ED has an appropriate comment period.

Required

The period has been set by the IASB.

If outside the normal comment period, an explanation from the IASB to the DPOC has been provided, and the decision has been approved.

The DPOC has received notice of any change in the comment period length and has provided approval if required.

To be discussed at the February 2014 IASB meeting, but the staff are recommending a standard comment period.

Drafting:
Drafting quality assurance steps are adequate.

Required

The Translations team has been included in the review process.

The DPOC has received a summary report of the due process steps that have been followed before the ED is issued.

The proposed amendments will result in only minor drafting changes to IAS 27, IAS 28, IAS 36 and IFRS 10 and do not, therefore, involve drafting matters that required the input of the Translations team.

Drafting quality assurance steps are adequate.

Required

The XBRL team has been included in the review process.

The DPOC has received a summary report of the due process steps that have been followed before the ED is issued.

The amendments propose requiring disclosures on transition only. Due to the limited disclosures proposed in the ED, the involvement of the XBRL team is not required.

Publication:
ED published.

Required

ED has been posted on the IASB website.

The DPOC has been informed of the release of the ED.

The ED is planned to be published in Q1/Q2 2014.

Press release to announce publication of ED.

Required

Press Release has been published.

Media coverage of the release.

The DPOC has been informed of the release of the ED.

A press release will be published announcing the ED.