Welcome to the latest edition of Setting the standard, our publication designed to keep you informed about the standard setting activities of the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB).
What a difference a quarter makes. After a relatively slow second quarter, the boards made headway on their joint projects. Although progress has not been even, the boards are poised to issue several exposure drafts and final standards in the upcoming months.
The financial instruments project occupied much of the boards' agenda during the quarter. While they were able to achieve greater convergence on classification and measurement, the boards appear to be parting ways on impairment. Based on input from US stakeholders, the FASB is now considering a different impairment model it believes will be more operational.
On the other hand, the boards continue to make steady progress on redeliberations of their revenue recognition project. Although several important issues still need to be addressed, it appears we may see a final standard in the first half of 2013. The boards also substantially completed redeliberations on the leases project, and plan to re-expose their proposals in early 2013.
As for FASB-only projects, the board had a very productive summer, issuing three exposure drafts and two discussion papers. In addition, the FASB released a final standard to simplify indefinite-lived intangible asset impairment tests.
Read this edition of Setting the standard for the latest on these projects and more.