The Asian-Oceanian Standard-Setters Group (AOSSG) has revealed the main topics of discussion from its latest annual meeting, which took place in Seoul between November 25th and 26th 2015.
As the body responsible for determining international financial reporting standards, the AOSSG plays a key role in influencing the financial conditions of markets around the world, with the publication of the communique from its seventh annual meeting hotly anticipated among financiers.
Here, we take a look at what the organisation discussed and how it may influence global financial markets over the course of 2016.
Adopting a global financial standard
The meeting began with previous chairman Clement Chan handing his seat to new chair Dr Jee In Jang, before the main topic of discussion was introduced - the need to adopt a single set of financial reporting standards to bring greater clarity and transparency to global markets.
At present, all new reporting standards come with a three-year implementation period, but the issue of whether or not this is adequate was raised, which could be especially important if a single global standard is introduced, as this may need longer to be implemented sufficiently.
The International Accounting Standards Board (IASB) also played a key role in proceedings, with updates provided on the major projects the body is currently managing, including the Conceptual Framework, interest rate regulations, revenue and the disclosure initiative.
Key consultation areas
The AOSSG also raised a number of points that its members will be consulted on over the coming months, such as whether or not the current three-year period between consultations should be upped to five years, as well as if the IASB and the Interpretations Committee are doing enough to meet stakeholders' needs during the policy implementation process.
In addition, members are to be consulted on which factors they believe the IASB should consider when the body allocates work to them, while they will also be asked if they think the board delivers change at an appropriate pace.
What's next for the AOSSG?
During the annual conference, the AOSSG took the time to outline its strategic plan for the next four years, which will take it up to 2019.
The plan includes intentions to encourage less active members of the IASB's disclosure initiative group to join the Financial Statement Presentation and Disclosure Working Group to ensure they get the most out of the project.
Additionally, the AOSSG's secretariat will work to set up a dedicated page on the organisation's website where all of its letters and papers can be published, providing members with improved visibility of the latest developments.
Thanks to its work to streamline proceedings when it comes to setting financial reporting standards, the AOSSG should be set to stabilise processes in the global market over the course of 2016. With 11 months to go until the organisation hosts its eighth annual meeting, there is plenty of time for some of these changes to be implemented and their results to become apparent.