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What is the IFRS “Annual Improvements” project?

by IFRSexorcist on April 21, 2009

If you are to understand International Accounting Standards fully you need to have a good knowledge of the IASB’s processes and procedures.

So what are annual improvements? This all sounds like an annual resolution to do better next year like a new year’s resolution. It’s closer to a sort of annual maintenance project where the IASB cleans up a number of technical issues in one great omnibus revision.

Why not do this through an emerging issues process? If you visit the IASB site you will realize quite quickly that the IASB is very reluctant to issue many interpretations even though there is a body, IFRIC, charged with this responsibility. IFRICs terms of reference can be found on the IASB site.

The process for these “annual improvements”can be found in the project listing on the IASB site. Essentally these are all non urgent but necessary amendments to IFRSs that come from various sources.

The IASB has issued the current Annual Improvements update recently. Read the press release on the conclusion of the 2007 – 2009 Annual Improvements cycle. Essentially there are improvemnts to a very diverse array of IFRSs. It’s very important that you use the most up to date version of IFRS that incorporate the changes – be careful and check to see if your version has the updates.

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