Capital Market Advisory Committee Update: February 2014
According to recent meeting summery and recording of the discussion of capital markets advisory committee (CMAC) 27 February 2014 meeting –
Leases: the first most remarkable discussion during that session is alternative lessee accounting model. Most of the members support single model approach because they believe that single model approach shows a link between balance sheet and income statement, whereas other members show their interest in the dual model approach. They believe the dual model approach effectively expose the differences between real estate leases and equipment leases.
After- implementation review of IFSR 3: post implementation review or feedback is an essential part of any experimental practice. The CMAC performs the same standard operating procedure and collect feedback/review from specialists. At this meeting, the feedback collected that are requested in January 30, 2014 information paper. Among the reviews, the members discussed about -
- Assets acquisition Vs. Business combinations
- Split the recognition of intangible assets from goodwill
- Goodwill Vs. amortization
Integrated Reporting: The CMAC members participated willingly in the IASB role concerning integrated reporting. However, a specific set of members believe that the IASB is not focused on integrated reporting because the information is already known to the investors.
Debt Disclosure: CMAC approves the introduction of a project based on debt disclosures and provide recommended suggesting and countermeasure to the IASB staff.
Equity Method: the CMAC members provide some considerations about equality methods to IASB staff along with a scope of a project.
Materiality Disclosure Initiative: apart from the above, CMAC members offer their supports to a materiality based project. According to the CMAC members, they think the primary goal is to make the disclosure more effective without reducing the amount of the disclosures. The CMAC members recommended that the IASB find the best way to clarify and define the concept of materiality.
According to the CMAC news bulletin, the next meeting is scheduled on 30th June, 2014