Both the International and Australian accounting standards boards have taken the front foot in addressing the worsening global economic conditions. 
 
International Accounting Standards Board’s response 
As part of the International Accounting Standards Board’s (IASB) response to the global credit crisis the IASB has issued a series of revisions. The revisions allow non derivative financial assets held for trading and 'available for sale' assets to be reclassified in particular situations. The revisions are designed to address differences arising between the International Financial Reporting Standards (IFRS) and US GAAP. The amendments (which came into effected on 1 July 2008) were issued in light of the worldwide economic downturn. Read more here. 
 
The IASB and Financial Accounting Standards Board have also announced that they will create a global advisory group comprising regulators, preparers, auditors, investors and other users of financial statements. Prior to this development, each body had their own advisory panels set up in response to the crisis. However, a global advisory group will help ensure that reporting issues arising from the global economic conditions are considered in an internationally co-ordinated manner.  
 
Australian Accounting Standards Board’s response 
The Australian Accounting Standards Board (AASB) has also issued the amendments ensuring that Australian constituents maintain IFRS compliant.  
 
Read more here. 
 
The move from both accounting standard bodies has not followed ‘normal’ due process and has never been seen before, although it was thought necessary as a deliberate response to current global economic conditions.  
 
The Institute will keep members informed of developments in the changing global economic environment.  
 
 
Relevant links:

• The Institute: Accounting and Assurance News Today
• IASB: media release
• AASB: media release