Iasb Deliberations

IASB Deliberations

The International Accounting Standards Board (IASB) is a privately funded organization that was established in 1973. When it was established, it was known as International Accounting Standards Committee. The IASB is based in London and the sole responsibility is to establish International Financial Reporting Standards. The IASB works on projects that encompass the financial and accounting world globally. The board tries to have a uniform set of financial laws and rules that international countries can use for accounting purposes (Limited, 2011). The IASB has 14 members who must serve five year terms, and are not allowed to have employment relationships that can impair their judgment concerning accounting standards. Their financial reporting standards must be of high quality and permitted in more than100 countries (Baker, 2009).

In July 2011, the IASB received a project for provisions, contingent liabilities, and contingent assets. This request is to clarify if levies should be charged for participation in markets on specified dates. The main liability that arose from this is waste electrical and electronic equipment. The IASB is trying to determine an analogy way to identify the event that would cause a liability for levies that would charge for participation in the markets on specified dates. The IASB main concern would be if the liability should be recognized, and what the definition of the obligation would be. In November 2011, the board continued their discussions and determined different solutions (International Accounting Boards Standard, 2011).

The board determined that entities do not need a constructive obligation to pay levies that arise from operations in a future period, even if the economy shows that the entity would continue operating in the future. The liabilities for any obligation that has paid a levy would give a rise to expense, unless the levy is an exchange transaction. If this is the case, the entity that paid the levy would receive assets or future services in lieu of payment for the levy. The timetable for this milestone is one year. This project has been on the agenda for six months, and it could be determined over a period of time, because it involves future events. The status of the project is that the IASB has directed the staff to test the principle of the obligating events over a period of time, and prepare to give specific examples and guidance to the Committee in a future meeting (International Accounting Boards Standard, 2011).

Another project that the Committee has been asked to consider is the different aspects over non controlling interests in consolidated financial statements of shareholders. This project has concerns about diversity in accounting for the financial liability which is recognized in NCI. The board has discussed short term solutions, and they did decide to use a narrow scope amendment, which would change the measurement