International Financial Reporting Standards IASB revised work plan

International Financial Reporting Standards IASB revised work plan The views expressed in this presentation are those of the presenter, not necessarily those of the IFRS Foundation or the IASB © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Modified strategy and work plan 2 Target date for priority projects remains June 2011 § Prioritise major projects to permit sharper focus on those areas in most urgent need for improvement in both IFRS and US GAAP § Phasing of publication of EDs and related consultations to enable broad-based, effective stakeholder participation § Publication of separate consultation document seeking stakeholder input about effective dates and transition methods © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

The major projects 3 Crisis (Mo. U) Other (Mo. U) § Financial instruments § Revenue recognition § Fair value measurement § Leases § Consolidation § Post-retirement benefits § Derecognition § Financial statement presentation § Liability/Equity Other (Non Mo. U) § Insurance contracts © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

The major projects Project 4 ED issued Completion Derecognition - disclosures § Q 3 2010 Consolidation § Q 4 2010 Financial statement presentation (OCI) § Q 4 2010 Fair value measurement § Q 1 2011 Post-employment benefits (Defined benefit plans) § Q 1 2011 Liability/Equity © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

The major projects 5 Project Financial instruments ED issued Q 3 & Q 4 2010 § Q 2 2011 Revenue recognition Leases Completion August 2010 Insurance © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org § Q 2 2011

International Financial Reporting Standards Modified strategy and work plan © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

IASB work plan § Financial crisis projects (joint with FASB) § Other prioritised projects § some joint with FASB § some IASB alone § Conceptual Framework (joint with FASB) © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org 7

Financial crisis projects – Derecognition 8 Project Objective Target dates Derecognition § Near-term priority: improving and converging US GAAP and IFRS disclosure requirements Q 3 2010: finalised improved disclosure requirements similar to US GAAP § Additional research and post-implementation review of FASB amendments to assess future of the project (2012) © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Financial crisis projects – Consolidation Project Consolidation Objective 9 Target date § Boards agreed that standard Full completion should include common (IASB): Q 4 2010 objectives and principles. § IASB project in three parts © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

– Consolidation continued Project part Replacement of IAS 27 10 Target dates § Q 3 2010: FASB round tables on IASB’s proposed standard § Q 4 2010: finalised IASB standard § possible FASB ED on IASB standard? Disclosures about unconsolidated SPEs/structured entities § Q 4 2010: finalised IASB standard Investment companies (part § Q 3 2010: ED of Consolidation project) § Q 1 2011 © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Financial crisis projects - Other Project Status Financial Instruments with characteristics of equity Effects of proposal in draft ED being explored Fair Value Measurement develop a converged definition of fair value and common implementation guidance (incl for illiquid markets) © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org 11 Target dates Q 1 2011: target for final, converged standard

Prioritised projects – Financial Instruments Project Financial instruments Objective Issuance of comprehensive improvements that foster international comparability of financial instruments © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org 12 Target date Full completion: Q 2 2011

Financial Instruments - Addressing differences 13 Differing development timetables and imperatives resulted in differing conclusions in a number of areas. Strategy to address differences: § Boards will publish each others proposals § Joint consideration of feedback received § FASB round-table meetings on their comprehensive proposals (IASB participation) - Q 4 2010 § The Expert Advisory Panel is helping the boards to identify and resolve operational aspects of credit impairment models

Prioritised projects – Financial Instruments Project part 14 Target date Hedge accounting ED (Phase III) ED: Q 3 2010 Impairment (Phase II) ED comments due 30 Jun 2010 Classification and measurement: financial liabilities ED comments due 16 July 2010 Asset and liability offsetting § Q 4 2010: ED publication (IASB and FASB) In response to stakeholder concerns (BCBS and FSB and others) to address differences between IFRSs and US GAAP © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org § Q 1 2011: round tables § Q 2 2011: publication of standards – timing aligned with other changes to the FI standards

Prioritised projects – other Project Revenue Recognition Leases Objective development of a single, common standard for a wide range of industries and transaction types 15 Target date § Q 4 2010: round tables § Q 2 2011: joint standard development of a joint § August 2010: joint lease standard that ED improves lease accounting § Q 4 2010: round and ensures that all lease tables contracts are recognised § Q 2 2011: joint on the statement of standard financial position © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Prioritised projects – other Project Presentation of OCI Objective 16 Target dates develop presentation Q 4 2010: converged standards that improve and improved the reported items of OCI standard and allow easier comparability between US GAAP and IFRSs © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Other joint projects Project Financial statement presentation Status 17 Target dates § DP feedback § Q 3 2010: staff draft of indicated concerns proposed standard that benefits could be § Q 4 2010: completion outweighed by of outreach expected § Q 1 2011: ED implementation costs. § Boards decided to engage in additional outreach activities and potentially reconsider proposals © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Other joint projects Project Insurance Status In 2009 the boards begin discussing the project jointly – agreed on joint approach in most areas © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org 18 Target dates § Q 3 2010: FASB will publish IASB ED as a Discussion Paper with a FASB wraparound § Q 2 2011: final standard

Other joint projects Project Status 19 Target dates Emission trading schemes While understanding the growing importance of the project, the boards agreed that other Mo. U projects have a higher priority. § H 2 2011: ED Income taxes Significant negative comments on ED; Board considers limited scope ED § H 2 2010: ED expected § H 1 2011: IFRS expected Joint ventures © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org § 2012: Converged standard § Q 3 2010: IFRS expected

Other Mo. U projects Project Status 20 Target dates § ED issued in § Q 1 2011: IFRS Post. April 2010 expected employment benefits § Comments due 6 (Defined benefit Sept 2010 plans) © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Other projects 21 Annual improvements 2009 -2011 § Q 4 2010: ED planned Extractive activities (oil and gas and mining) § Comments due 30 July 2010 Measurement of liabilities under IAS 37 § Q 3 2010: deliberations on reexposure draft (Jan 2010) Management commentary § Q 4 2010: Final ‘guidance’ document expected Rate-regulated activities § Q 3: decision on next steps § Q 2 2011: IFRS planned § planned agenda decision Effective date and transition § Q 3: discussion document expected that will guide other final IFRSs © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Conceptual Framework (joint with FASB) - documents currently being developed 22 Phase A Objective and qualitative characteristics § Final chapter expected 3 Q 2010 Phase B Elements and recognition § To be determined Phase C Measurement § Discussion Paper planned 4 Q 2010 or 1 Q 2011 Phase D Reporting entity § ED was issued March 2010 § Comments due 15 July 2010 § Final chapter expected 4 Q 2010 © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org

Conceptual Framework (joint with FASB) - potential future phases Phase E Presentation and disclosure Not yet active Phase F Purpose and status Not yet active of framework Phase G Applicability to not-for-profit entities © 2010 IFRS Foundation. 30 Cannon Street | London EC 4 M 6 XH | UK. www. ifrs. org Not yet active 23