Converging valuation standards

The International Valuation Standards Committee (IVSC) and The Appraisal Foundation of the US have signed a memorandum of understanding called the Madison Agreement (see the June 2006 press release). The agreement calls for a single set of understandable and enforceable global valuation standards. Working groups have been established to identify and eliminate differences in existing standards.

Regulatory decisions on applying IFRS

The International Organisation of Securities Commissions (IOSCO) has decided to create a database in which stock exchange regulators would enter decisions concerning the application of IFRS (see the June 2006 communique). The database is expected to be fully operational during the second half of 2006. It is being developed in conjunction with the Commission of European Securities Regulators which has implemented such a database for use in the European Union.

Slowing the pace of change

In response to concerns by various constituents, the IASB is considering several measures aimed at slowing down the pace of change. First, it will look at introducing a longer lead time regarding the effective date of new IFRS standards. The proposal is to have an effective date one year after the date of publication. Second, it will try not to make major new standards effective until 2009. Third, it will consider issuing a discussion paper on fair value measurement, instead of going directly to an exposure draft. Details are available in a July 24, 2006 press release and on the IASB website.

IASB/FASB Conceptual Framework Project

In July 2006, a group of Chairs and senior staff members of the standard-setting bodies of Australia, Canada, New Zealand and the United Kingdom issued a report on the applicability to not-for-profit entities in the private and public sector of the IASB/FASB Conceptual Framework Project’s "Preliminary Views on the Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information." The Report is available online. For more information about the IASB/FASB Conceptual Framework project, visit the joint IASB/FASB webpage.