Matt Blake - HMRC
Josephine Crimmin - HMRC
Alison Bull - HMRC
Nic Clarke - HMRC
Chas Roy-Chowdhury - ACCA
Richard Martin - ACCA
Frank Haskew - ICAEW
John Cullinane - CIOT
Andrew Lennard - ASB
James Barbour (by speaker phone) - ICAS
Ian Menzies-Conacher (CBI)
Lakshmi Narain (CIOT)
The minutes of the previous meeting on 3 December 2008 were agreed.
2.1 The discussion paper was issued in December 2008 with the deadline for comments being 19 June 2009.
2.2 The group briefly discussed the paper and agreed that the proposals were broadly in line with UK practice, and in particular Application Note G to FRS5. It was also recognised that the discussion paper was simply a preliminary stage and that there was room for significant changes before an Exposure Draft is issued.
2.3 The group expected that there would be a joint recognition standard by 2011 for IAS. For UK GAAP an Exposure Draft would possibly be published at the same time as the IAS standard (there may be a time delay) with January 2012 being the earliest commencement date.
2.4 ICAEW and ICAS agreed to consult with members before commenting on the discussion paper. Additionally they would revisit the CCAB guidance examples for UITF40 to see how these would change under the new proposals.
3.1 The group recognised that it was unlikely that this interpretation would be introduced into UK GAAP.
4.1 The group noted that this was still work in progress and that a discussion paper is expected in June/July 2009.
4.2 The discussion paper is also expected to address the accounting requirements of not for profit organisations.
5.1 The group went through the items on the "Commissioners’ Advisory Accountant’s Forward Look" that had been updated on 2 March 2009 and circulated at the meeting. The main items discussed were:
5.1.1 IAS39/FRS26 – the group noted that the amendments re retrospection had been endorsed.
5.1.2 Mutual industry and mergers - the group noted that there were possible tax and accountancy interaction issues.
5.1.3 FRS25 amendment – consideration is ongoing regarding the accounting implications and potential tax implications.
5.1.4 IFRIC 18 – it is unlikely that this interpretation would be introduced into UK GAAP.
5.1.5 IFRS 3 – includes some significant changes and raises practical issues. The standard is not converged with the UK.
5.1.6 FRED 39 – this is dependent upon the amendment to IAS37 and is, therefore, delayed.
5.1.7 ED 10 – in principle this is considered to have limited impact.
5.1.8 ED 9 – this may change a few cases – for example, differences between JANEs and JVs and relief for interest.
5.1.9 Emissions trading – progress on this is not known but is not expected to touch government grants.
5.1.10 Leases – a discussion paper is expected Q1 2009 and a large number of discussions/representations are expected.
5.1.11 Dynamic provisioning – subject to recent press comment and may be discussed by standard setters in the future.
5.1.12 EC simplification for micros – proposals made in February 2009. This, depending upon how implemented in the UK, could have a significant impact. HMRC is working with BERR who will consult widely on the proposals.
5.1.13 Tax simplification – consultation process ended 20 February 2009 and results/recommendations to be announced later in the year.
5.1.14 EC fourth and seventh directives – BERR is leading the consultation on these.
5.1.15 IASB conceptual framework – this is being debated, may be revised in stages and may result in accounting changes as some standards refer to the conceptual framework, for example, IAS1.
Date of next meeting is 3 July 2009.
