Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What Is the Effect of This Statement on Convergence with International Financial Reporting Standards?

April 26, 2017convergence financial International Standards

0

10 Posted

What Is the Effect of This Statement on Convergence with International Financial Reporting Standards?

1 Answer

0

10 Posted

The International Accounting Standards Board (IASB) has projects on its agenda to develop new standards on derecognition and consolidation. The IASB issued two related Exposure Drafts—Consolidated Financial Statements, and Derecognition—in December 2008 and March 2009, respectively. This Statement is designed to provide a short-term solution to address inconsistencies in practice in the context of the existing concepts in Statement 140. In the short term, this project improves convergence by eliminating the concept of a qualifying special-purpose entity, which does not exist in International Financial Reporting Standards, and by limiting the portions of financial assets that are eligible for derecognition. This project also incorporates certain of the disclosures currently required by IFRS 7, Financial Instruments: Disclosures. Ultimately, the two Boards will seek to issue a converged derecognition standard.