IASB Releases Official Report based on Issues Discussed at the EEG’s Meeting in Brazil
The International Accounting Standards Board has released a report after a meeting of the EEG (Emerging Economies Group), which was organized in Sao Paulo in Brazil. The meeting that took place on the 4-5th of December was organized to discuss several issues including transactions which were under common control. Apart from this, the participants at the meeting also discussed matters pertaining to hybrid finance related instruments and finance related assets impairment.
Delegates present at the meeting came from countries including Mexico, South Africa, China, Brazil, Russia, Argentina, Indonesia, Korea and India. Ian Mackintosh, Vice-chairman IASB was representing the International Accounting Standards Board whereas Amaro Gomes member of the board of the IASB was also present. Wayne Upton, Chair of the IFRS Interpretations Committee also participated in the meeting.
The Emerging Economies Group has been designed to improve the involvement of economies that are emerging in the procedure for setting International Financial Reporting Standards, as well as to discuss certain accounting related matters from the perspective of the economies that are gradually emerging.
While the official report doesn’t offer detailed information with regard to the discussions that were held on numerous issues, the IASB has also uploaded a number of papers, which provide extra background related information to its website.
The paper pertaining to transactions that are under common control was documented by the KASB (Korean Accounting Standards Board) and discussed numerous accounting matters arising as result of business combinations as well as other types of transactions that typically involve parties that are under common control. The paper also included the definition as well as boundaries for transactions pertaining to common control, different types of transactions revolving around common control and the manner in which these transactions need to be accounted for both in separate and consolidated statements.
The paper on hybrid finance related instruments was documented by the Brazilian Accounting Standards Board and laid down the matters that have been raised while classifying specific hybrid finance related instruments that are issued in other economies that are emerging and in Brazil as per International Accounting Standard 32. Discussions pertaining to the EEG’s activities as well as other issues were also held during the meeting. The next meeting is scheduled to be organized in Korea in the month of May in 2013.