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ICAI - IASB Exposure Draft on Effective Dates and Transition Methods
November, 19th 2010

IASB Exposure Draft on Effective Dates and Transition Methods (Comments to be received by December 16, 2010)

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) has issued this Request with the objective of seeking views on when new financial reporting standards resulting primarily from their work to improve and achieve convergence of International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP) should become effective.

When finalising an IFRS, the IASB will identify a date from which entities will be required to start applying the new requirements (known as the effective date). This date is often 12-18 months after the date the IFRS is published, allowing time for entities to prepare for the change and for jurisdictions to implement the IFRS into their legal or regulatory regime.

With a number of major projects planned to be completed in 2011, the boards are seeking views on whether or how to sequence effective dates in order to reduce the burden to interested parties. In deciding how to proceed, the IASB will consider the needs of jurisdictions already using IFRSs as well as those planning to do so.

Feedback from the consultation will inform the boards as they jointly develop an implementation plan for those new standards that helps stakeholders to manage both the pace and cost of change. The projects covered by the request for views include the second and third phases of Financial Instruments, Revenue from contracts with customers, Insurance contracts and Leases.
 
Invitation to comments
 
ASB invites comments on the said Draft from the public. The downloadable version of the draft is available http://www.ifrs.org/NR/rdonlyres/00843740-4E15-40A8-A7EF-8B634F904B46/0/RequestViewsNFDOct10.pdf. Comments would be most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi-110002, so as to be received not later than December 16, 2010. Comments can also be sent by e-mail at asb@icai.org or edcommentsasb@icai.org.

 
 
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