IFRIC Processes

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IFRIC Processes

• Tricia OMalley

The views expressed in this presentation are
those of the presenter, not necessarily those of
the IASB or the IFRIC
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IFRIC members

• 14 voting members
• Appointed by the Trustees

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IFRIC members
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Due Process Handbook

• Identification of issues
• Setting the agenda
• Meetings and voting
• Development of a draft interpretation
• Comment period and redeliberation

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Agenda setting

• No Agenda Committee
• All issues submitted are discussed by IFRIC in
  public based on staff analysis
• Publish reasons for not adding issue to agenda

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Meetings and voting

• Public meetings approx 6 per year
• Consensus requires not more than 4 votes against
  draft Interpretation or Interpretation

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Communication

• Observer notes all IFRIC papers
• Webcasting live and archived by topic
• IFRIC Update
• Decision summary published one week after meeting
  
• Website project summaries

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Requests for interpretation

• Financial instruments
• Revenue recognition
• Employee benefits
• Share based payments
• Business combinations and consolidation
• Income taxes
• Others

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Agenda criteria

• Widespread and practical relevance
• Significant divergence (existing or emerging)
• Improved financial reporting
• Efficient, cost-effective resolution
• Reach consensus on a timely basis
• No current IASB project will be completed before
  IFRIC could respond

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Possible solutions

• Explain via IFRIC agenda decision reasons for
  not adding issue to agenda
• IFRIC interprets
• Recommend change to standard
• Annual improvements project
• Include in a current IASB project

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Agenda decisions

• Tentative decision published in IFRIC Update,
  including reasons
• Open for comment for 30 days
• Final decisions and reasons published
• Cumulative list on website by standard
• For information, not updated
• Not an Interpretation, not authoritative

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Annual improvements

• For non-urgent amendments
• Resolve inconsistencies between standards
• Clarify fuzzy wording
• Process
• Website posting of ED wording when finalised,
  annual ED, 90 day exposure
• Benefits
• Improved use of IASB time
• Less burdensome for constituents

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Annual improvements changes in process

• Proposals to be balloted when approved and posted
  to website then
• Proposals to include consequential amendments and
  Basis for Conclusions
• Effective date and transition to be considered
  individually
• Separate issues into editorial vs those affecting
  recognition/measurement/ disclosure
• ED August 01, final April 02, effective January
  03
• Last Board meeting for new issues June

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Authority of Interpretations

• Final Interpretations must be approved by normal
  vote of IASB
• Interpretations are mandatory for financial
  statements prepared in accordance with IFRSs
• Agenda decisions have no authority

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IFRIC Processes