The International Accounting Standards Board

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The International Accounting Standards Board (IASB) is revising its Conceptual Framework to improve and clarify the ways financial statements are prepared and presented. The process began in 2004 with a preliminary discussions between the US Financial Accounting Standards Board (FASB) and the IASB. Work was suspended in 2010 then revived in late 2012 as an IASB-only project. Work is still ongoing, with a preliminary discussion paper released in 2013 aiming to collect comments to develop an Exposure Draft will be published in early 2015.
The IASB laid out in its discussion paper proposed changes and updates to: definitions of assets and liabilities, recognition and de-recognition of assets and liabilities, measurement, equity, profit or loss and other comprehensive income (OCI), and presentation and disclosure. The IASB believes that the International Financial Reporting Standards (IFRS) does not define some matters adequately enough. In the discussion paper, some areas are being completely rewritten while others just need some clarification and guidance.
One of the topics addressed in the Conceptual Framework discussion paper is recycling of Other Comprehensive Income (OCI). Prior to the project, there was no standard for which sources of income or expenses could be presented as profit or loss and which should be listed as OCI. The IASB noted that OCI is been perceived by many as a ‘dumping ground’ for anything controversial. Furthermore, IFRS did not offer guidance on
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