First Asian-Oceanian Standard-Setter Group Meeting
The inaugural two-day meeting of Asian-Oceanian Standards-Setter Group (AOSSG) held in Kuala Lumpur ended with a total participation of 100 participants from 21 standard-setters in the region. Also, Sir David Tweedie, the International Accounting Standards Board (IASB) chairman, four other IASB board members, the IASB Director of International Activities and a trustee of the IASCF were present.
Chairman of International Accounting Standards Board (IASB) Sir David Tweedie and 21 accounting standard-setters representing Australia, Brunei, Cambodia, China, Hong Kong, Indonesia, India, Japan, Kazakhstan, Korea, Macao, Malaysia, Nepal, New Zealand, Oman, Thailand, Saudi Arabia, Singapore, Sri Lanka, Turkey and Uzbekistan attended and applauded the first meeting of AOSSG.
The attending countries agreed and signed the Memorandum of Understanding (MoU) formalising the establishment of AOSSG. The MoU encapsulates the following:
- Promoting the adoption of and convergence with, International Financial Reporting Standards (IFRSs) by jurisdictions in the region.
- Promoting consistent application of IFRSs by jurisdictions in the region.
- Coordinating input from the region to the technical activities of the IASB.
- Cooperating with governments and regulators and other regional and international organisations to improve the quality of financial reporting in the region.
The Malaysian Accounting Standards Board (MASB) was appointed first Chairman of AOSSG while the Accounting Standards Board of Japan (ASBJ) was appointed the Vice Chairman.
The recently formed AOSSG is a grouping of accounting standard-setters across the Asian and Oceanian regions for the establishment of a mechanism and platform to discuss and share resolutions to emerging issues in the process of convergence and contribute to the development of a single set of high quality global financial reporting standards. The formation of AOSSG will mark the beginning of a new era of cooperation between standard-setters in the region.
Agreements made on technical issues discussed at the meeting include the following:
1. IAS 39 Financial Instruments
The Group will consider the exposure draft on impairment of financial assets. The conceptual basis for the expected loss model and its practical implications both for financial institutions and for other entities with trade receivables will be examined.
2. Revenue Recognition
The Group acknowledged the need to further clarify some areas of interpretation and implementation issues relating to the determination and allocation of transaction prices and control, particularly the notion of control as used in the Revenue Recognition Standard and other IFRSs. The proposed revenue recognition framework for “multi-buyer” construction contracts and other long term contracts was also discussed.
3. Fair Value Measurement
The Group expressed support for the IASB issuing a Standard on Fair Value Measurement and further deliberation on pricing mechanisms in order to resolve the relevant issues on fair value measurement arising from the current international financial crisis.
4. Financial Statement Presentation
The Group will further deliberate the issues related to financial statement presentation and comment on the forthcoming exposure draft on financial statement presentation with regards to the level of disaggregation and the concept of cohesiveness objective as well as the proposed structural changes to the financial statements.
Apart from the above technical projects, additional five projects will be included into the work program, namely Consolidation, Leases, Insurance Contracts, Emission Trading Schemes and Financial Reporting relating to Islamic Finance.
The Second Meeting of the AOSSG will be held in Tokyo next year, hosted by ASBJ, the Vice Chairman of AOSSG. The AOSSG shall hold its Annual Meeting in each calendar year, within 15 months of the previous Annual Meeting.
For more information, please visit www.masb.org.my.
