AOSSG members participated in a series of meetings in Tokyo on 5 - 6 June 2014.
Meeting with the IASB
A meeting between AOSSG members from Hong Kong, Japan, Korea, Malaysia, New Zealand and Singapore and IASB representatives was held on 5 June 2014 in Tokyo.
AOSSG members provided input on their findings on the implementation of IFRS 3 Business Combinations. Common implementation challenges highlighted by members include the following:
- The distinction between an asset purchase and a business combination can be difficult to determine in particular industries (for example, real estate, mining and agricultural activities);
- The identification of intangible assets separately from goodwill and determining the fair value of those intangible assets;
- The practical and cost/benefit issues involving the subsequent measurement of goodwill and intangible assets with indefinite lives acquired in a business combination; and
- The lack of guidance on how to prepare information such as, paragraph B64(q)(ii) of IFRS 3 requires disclosure of revenue and profit or loss of the combined entity for the current reporting period as if the transaction had taken place at the beginning of the year. Some members also question the usefulness of providing this information in the financial report.
In addition, the meeting discussed the latest developments of the IASB projects such as IFRS 15 Revenue from Contracts with Customers , IFRS 9 Financial Instruments , leases, conceptual framework and agriculture (bearer plant).
IFRS Seminar
The Accounting Standards Board of Japan and the Asia-Oceania office of the IFRS Foundation hosted an IFRS Seminar on 6 June 2014 in Tokyo to discuss recent IASB activities. The seminar was attended by securities regulators, representatives of Japanese entities and AOSSG member standard-setters from Hong Kong, Japan and Korea. The seminar covered topics such as IFRS 15 Revenue from Contracts with Customers , IFRS 9 Financial Instruments , leases and macro hedge accounting. The role of the IFRS Interpretations Committee was also discussed at the seminar. The AOSSG Chair, Mr. Clement Chan, who attended the seminar, highlighted the AOSSG's current and ongoing activities, and explained how AOSSG members work together with an aim of continuing to promote improved financial reporting within the Asia-Oceania region.