The Asian-Oceanian Standard-Setters Group (AOSSG) has adopted a Memorandum of Understanding (MOU) which formalises the establishment of the AOSSG and sets out the four objectives of the group.

At its first meeting in Kuala Lumpur on November 4 to 5, the group’s 21 standard-setting bodies from the Asia and Oceania regions agreed to promote the adoption of, and convergence with, International Financial Reporting Standards (IFRSs) by jurisdictions in the region.

The group will also promote consistent application of IFRSs by jurisdictions in the region; and coordinate input from the region to the technical activities of the International Accounting Standards Board (IASB). The fourth objective is to cooperate with governments and regulators and other regional and international organisations to improve the quality of financial reporting in the region.

The AOSSG members also adopted the Modus Operandi of the Working Groups (WGs) as a mechanism of how the AOSSG members will participate in and respond to IASB’s proposed new standards or amendments to existing standards or any related issues.

The standard setters of Asia-Oceania recognise the need to play a more active role in the technical activities and other related matters of the IASB given the fact that many of them have adopted IFRSs or have declared or intend to declare convergence with or adoption of the IFRSs in the future.

Discussion on Technical Issues

At the meeting, four technical issues prepared by the Working Groups were discussed by the 100 participants.

The technical issues discussed were IAS 39 Financial Instruments: Recognition and Measurement and Impairment; Revenue Recognition; Fair Value Measurement; and Financial Statement Presentation.

On the first Technical Issue presented on IAS 39, the group expressed support for the outcome of the classification and measurement part of the financial instruments project.

Members also expressed their appreciation of the IASB’s responsiveness to comments submitted. The Group urged the IASB to work actively with the Financial Accounting Standards Board (FASB) to achieve a converged global standard.