Who are they?
IASB – International Accounting Standards Board
FASB – US’s Financial Accounting Standards Board
What have been doing together?
Essentially trying to move the two standards together.
They are planning to do it over 3 phases ie. A, B and C.
What are the 3 phases?
Phase A – completed in Sep 2007 with the issuance of FRS 1R. The FRS introduces the use of some American terminologies. The use of these terms for Singapore is not compulsory. Thus expect confusion in Singapore. Examples,
– Balance Sheet is “Statement of Financial Position”
– Cash Flow Statement is “Statement of Cash Flows”
Mr Yeoh Oon Jin, Assurance Leader, PwC Singapore, said the Phase will take a few years to complete and would cover areas on how to prepare the respective statements. Examples,
– what income and expenses items to be classified under which totals and sub-totals in which statements etc etc etc
– whether direct or indirect cashflow presentation should be adopted
While they have an idea of what they want to do, no point remembering them as it would too long down the yellow brick road for any certainty of being effected.
Reference – ACCA Focus Q2 2008 pp13-15