International Activities

The AcSB received reports on recent meetings of the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) (see www.iasb.org.uk and www.fasb.org, respectively). In particular, the AcSB noted that the IASB has issued an Exposure Draft on Segment A of its project on reporting financial performance, proposing to require an entity to present all income and expenses separately from changes in its equity that arise from transactions with its owners. Entities would have a choice of presenting income and expenses in a single statement or in two statements. An entity would also be required to include in its set of financial statements a statement showing its financial position (or balance sheet) at the beginning of the previous period. Comments are requested by July 17, 2006.

Employee Future Benefits

The AcSB discussed whether it should develop proposals similar to those of the FASB to reflect the financial status of obligations (and assets) related to post-retirement benefit plans on the balance sheet of the plan sponsor. It expects to continue discussions at a future meeting.

Offsetting Receivables from and Payables to Customers by Broker Dealers

The AcSB discussed a request to initiate a project to change the GAAP requirements for offsetting receivables and payables in the brokerage industry. The AcSB decided not to undertake such a project.

Income Trusts

The AcSB received a brief update on financial reporting issues in the income trust sector.