Working Group 61 - 70

WG 61, Fair Value Measurement

(Chairman: Mr Chan Kam Chiew; Project Manager: Mr. Danny Tan Boon Wooi)

WG 61 was set up to review IASB's Discussion Paper on Fair Value Measurement. The purpose of the discussion paper will be to indicate the IASB Board's preliminary view of the provisions of the FASB's statement on Fair Value Measurements and its differences to existing fair value measurement guidance in IFRSs. The IASB's objectives in this project are to establish a single source of guidance for all fair value measurements required by IFRSs and clarify the definition of fair value and related guidance in order to more clearly communicate the measurement objective.


WG 62, Borrowing Costs

(Chairman: Dr Nurmazilah Dato' Mahzan; Project Manager: MASB Secretariat)

WG 62 was responsible for developing FRS 123 Borrowing Costs. The main change from FRS 1232004 Borrowing Costs is the removal of the option of immediately recognising as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or sale. FRS 123 is identical to IAS 23 Borrowing Costs (revised) which was issued by the IASB in March 2007 as part of its short-term convergence project with the US Financial Accounting Standards Board (FASB) to eliminate major differences between IFRSs and US GAAP and to improve financial reporting.


WG 63, Consolidation

(Chairman: Mr. Tan Soo Yan; Project Manager: Dr. Tan Liong Tong)

WG 63 was set up to review IASB ED 10 Consolidated Financial Statements. The objective of this draft is to publish a single IFRS on consolidation to replace requirements in IAS 27 and SIC-12. The proposals are designed to develop a cohesive control based model that encompasses structured financing and investment vehicles. The IASB believes that the proposals would, if implemented, improve the definition of control and related application guidance so that a control model can be applied to all entities.


WG 64, Joint Arrangements

(Chairman: Mr. Tan Soo Yan; Project Manager: MASB Secretariat)

WG 64 was set up to review IASB's ED 9 Joint Arrangements. This exposure draft, part of IASB's short-term convergence project with the FASB, proposes a replacement to the existing standard IAS 31 Interests in Joint Ventures, and represents the first major revision to the standard since it was first issued in 1990. The proposals are designed to provide users with more information about the operations an entity conducts through joint arrangements, including a description of the nature of joint arrangements and summarised financial information relating to its interests in joint ventures.


WG 65, Earnings per Share

(Chairman: Mr Sukanta Dutt: Project Manager: Ms Annie Look)

WG 65 was set up to review IASB's ED Simplifying Earnings per Share, part of IASB's short-term convergence project with the FASB. The ED proposes to simplify the calculation of earnings per share (EPS) and to eliminate differences between the methods required by IFRSs and US accounting standards to calculate EPS. In particular, the proposals aim to achieve convergence by providing a clear principle to determine which instruments should be included in the EPS calculation, clarifying the EPS calculation for particular instruments, such as contracts to sell or repurchase an entity's own shares and participating instruments and simplifying the EPS calculation for instruments that are accounted for at fair value through profit or loss. The IASB believes that the proposals would, if implemented, simplify the calculation of EPS and increase transparency for users of financial statements.


WG 66, Revenue Recognition

(Chairman: Mr. Tan Soo Yan; Project Manager: Mr. Irvin Menezes)

WG 66 was set up to review IASB's Discussion Paper on Revenue Recognition. The objective of the IASB and the US Financial Accounting Standards Board (FASB) is to improve the existing guidance in both IFRSs and US GAAP by developing a single revenue model that can be applied consistently regardless of industry. Applying the underlying principle proposed by the boards, a company would recognise revenue when it satisfies a performance obligation by transferring goods and services to a customer as contractually agreed. That principle is similar to many existing requirements and the boards expect that many transactions would remain unaffected by the proposals. However, clarifying that principle and applying it consistently to all contracts with customers would improve the comparability and understandability of revenue for users of financial statements.


WG 67, Leases

(Chairman: Datuk Tong Poh Keow;  Project Manager: Mr Thong Foo Vung)

WG 67 was set up to review IASB's Discussion Paper on Leases: Preliminary Views. The discussion paper is a response to concerns raised by investors and other users of financial statements regarding the treatment of lease contracts under International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP). In the discussion paper the IASB and the FASB discuss a possible new approach to lease accounting. The boards propose that lease accounting should be based on the principle that all leases give rise to liabilities for future rental payments and assets (the right to use the leased asset) that should be recognised in an entity's statement of financial position. This approach is aimed at ensuring that leases are accounted for consistently across sectors and industries.


WG 68, Rate-regulated Activities

(Chairman: Mr Ken Pushpanathan; Project Manager: Mr. Irvin Menezes)

WG 68 was set up to review IASB's Exposure Draft on Rate-regulated Activities. Rate regulation is a restriction in the setting of prices that can be charged to customers for services or products. Generally, it is imposed by regulatory bodies or governments when an entity has a monopoly or a dominant market position that gives it excessive market power. In December 2008, the IASB added a project on rate-regulated activities to its agenda. The project objective is to develop a standard on rate regulated activities that clarifies whether regulated entities could or should recognise an asset or a liability as a result of rate regulation. Rate regulation is widespread and significantly affects the economic environment of rate-regulated entities. Clarifying the treatment of assets and liabilities arising from rate regulation in IFRSs is therefore important.


WG 69, Valuation

(Chairman: Encik Mohamed Raslan Abdul Rahman; Project Manager: MASB Secretariat)

WG69 was set up to review new International Valuation Standards (IVS) issued by the International Valuation Standards Board (IVSB) with a view to provide its comments from the financial reporting perspective in light of the increasing relevance of valuations to financial reporting.

The IVSB is the standard-setting body of the International Valuation Standard Council (IVSC).The IVSC is a global body that develops valuation standards. Its standards are intended to apply to valuations performed for a number of purposes, including financial reporting.  The IVS are not endorsed by the International Accounting Standards Board (IASB), MASB or otherwise authoritative. However, IVS may become increasingly important in valuations and are being promoted as a source of authority and consistency in valuations following calls from the G20 leaders.

The working group is responsible for reviewing the valuation standard for consistency with the latest developments in the International Financial Reporting Standards (IFRS) issued by the IASB and the requirements of current law and regulations.


WG 70, Disclosure Initiative

(Chairman: Encik Ahmad Shahrul Hj Mohamed; Project Manager: Danny Tan)

WG70 was set up to review IASB’s Exposure Draft on Disclosure Initiative. The IASB began the project following feedback received on the IASB’s Agenda Consultation 2011 where the IASB was asked to review the disclosure requirements in existing IFRS and to explore ways to improve disclosures. Consequently, in 2013 the IASB started the Disclosure Initiative, a package of several projects aimed at improving the disclosure of financial information.

The initiative is made up of a number of projects which would run in both short-term and medium-term. The short-term projects would be on materiality and narrow-scope amendments to IAS 1 Presentation of Financial Statements. Meanwhile, in the medium-term, the IASB plans to start on research projects on a Standards-level review of disclosures in existing Standards and also to explore whether IAS 1, IAS 7 Statement of Cash Flows and IAS 8 Accounting Policies, Changes in Estimates and Errors  should be replaced with a single Standard on presentation and disclosure. 


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