29.1 Convergence Experience to Date

Convergence is not a new development it has been going on for several years. Several UK standards are either identical or close to IFRS equivalents. For example on provision accounting, FRS 12 and IAS 37 are identical. On deferred tax, the replacement of SSAP 15 with FRS 19 brought UK GAAP closer to IFRS, notwithstanding important differences remaining between FRS 19 and IAS 12. On impairment, FRS 11 and IAS 38 have many features in common.

ASB for many years has been working closely with IASB and national standard-setters worldwide.

During 2005, the ASB reviewed its approach towards converging UK GAAP with IFRS, and in June 2005 updated its work plan setting out an indicative timetable for issue of exposure drafts and standards. It also gave details of the process for replacing UK standards with International Standards (IASs/IFRSs) the so-called "convergence programme". The intention in June 2005 was that the convergence process would be spread over a relatively long period of time, certainly beyond 2008 (the June 2005 update can be accessed from the FRC website).

More recent developments are referred to in 29.3 below.

29.2 Progress During 2005

Convergence developments during 2005 were as follows the following are mandatory for accounts periods beginning on or after 1 January 2005 for the categories of companies indicated. Note that mandatory dates may varies as between listed and unlisted companies: