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I. IASB Organisation and
structure
Projects with relevance to the
supervision of the financial sector
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Revenue Recognition – What is it about
- Single revenue recognition model – IASB and
FASB
- Revenue recognition requirements in US
GAAP differ from those in IFRSs
- both are considered in need of improvement
- To be applied across industries and
geographical regions
- Principle - recognise revenue when
performance obligations satisfied
- Performance obligations = transferring goods
and services to a customer
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Revenue Recognition – how does this
apply to the financial sector
- Revenue earned on elapse of time
• Insurance: the performance obligation is the
provision of risk bearing services –
• Banking: performance obligation is the granting
of a loan or the investment into savings
- Issues
- Acquisition costs – loss on inception
- Time value of money not explicitly considered
– issue for long term contracts
- Remeasurement – locking in measurement
would not work for long-term contracts
- Contract boundaries
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Consolidation – What is it about
- Single IFRS on consolidation to replace:
• the consolidation requirements of IAS 27 Consolidated and
Separate Financial Statements and
• SIC-12 Consolidation – Special Purpose Entities.
- a revision of the control definition
- enhanced disclosures about consolidated and
unconsolidated entities
- Principle - reporting of a parent and its
subsidiaries as if single entity.
- Considerations focusing on structured entities
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- IASB Organisation and Structure.pdf