AOSSG Strategic Plan
2015 - 2019

AOSSG Strategic Plan 2015 - 20191

Introduction

1.1

The commencement of the 2013 Annual Asian-Oceanian Standard-Setters Group(AOSSG) Meeting marked the AOSSG’s fourth anniversary. At the November 2013
AOSSG Chair’s Advisory Committee Meeting, members decided that it is time toformalise and document a long-term strategy for the AOSSG1.

1.2

This AOSSG strategic plan has a four-year timeframe, commencing from the 2014
Annual AOSSG Meeting. It is intended to periodically update the plan.

1.3This plan has the following sections:

Background on the AOSSG (Section 2);

Strengths (Section 3);

Weaknesses (Section 4);Opportunities (Section 5);

Threats (Section 6); andStrategic Directions (Section 7).

2

Background on the AOSSG

2.1

The International Financial Reporting Standards (IFRSs) issued by the International
Accounting Standards Board (IASB) are increasingly accepted in the Asia-Oceania
region, with many jurisdictions in the region having adopted IFRSs, considering the
adoption of IFRSs or making progress towards convergence with IFRSs.

2.2

Given the growing economic importance of the Asia-Oceania region, stakeholders haveincreasingly suggested that accounting standard-setters in the region should play a more
prominent role in global standard-setting, to maintain the momentum towards global
standards and support the credibility and responsiveness of the IASB.

2.3

With that background, the AOSSG, a group of recognised accounting standard-settersfrom jurisdictions in the Asia-Oceania region was established in 2009.
AOSSG Objectives

2.4

As identified in the Memorandum of Understanding (MOU), the AOSSG aims to:
2.4.1 promote the adoption of, and convergence with, IFRSs by jurisdictions in theregion. The AOSSG does not endorse IFRSs for the region—AOSSG members
may individually have that role in respect of their jurisdictions;2.4.2 promote consistent application of IFRSs by jurisdictions in the region by resolving
common accounting issues to enhance transparency of financial markets in theregion;1

Prior to this, the AOSSG Vision Paper and Memorandum of Understanding (MOU) together implicitly outlined the
AOSSG’s strategies, some of which have been pursued and others that may be pursued in the future.

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AOSSG Strategic Plan 2015 - 2019

2.4.3 coordinate input from the region to the technical activities of the IASB, in the
public interest of the region, and play an active role in technical activities of the
IASB to contribute to a single set of high quality global financial reporting
standards; and2.4.4 cooperate with governments and regulators and other regional and internationalorganisations to improve the quality of financial reporting in the region to improve
accounting practices, enhance the quality of financial reporting and facilitatecross-border trade, investments, and governance in the region.

3

Strengths

3.0

Section 7 Strategic Plan outlines an Actions Plan to benefit from and enhance thefollowing strengths.

3.1

Providing collective regional views
3.1.1 So much of the AOSSG’s usefulness to the IASB is its policy of providingcollective regional views, and not just one conformed view, to the IASB. The
IASB has been openly recommending2 the AOSSG’s model to other regions thatare/were considering establishing a similar regional accounting body.

3.2

Technical competence of the AOSSG
3.2.1 Although many AOSSG member organisations are just beginning to develop theirtechnical accounting and standard-setting knowledge, the AOSSG includes
member organisations with staff experienced and well-regarded for theirextensive technical accounting knowledge. This has been useful to the AOSSG
in earning the respect of members and staff of the IASB, the IFRS Foundationand other national standard-setters regionally and globally, including gaining aplace on the IASB’s Accounting Standards Advisory Forum (ASAF).
3.2.2 The AOSSG has been able to direct the IASB’s attention to AOSSG’s concernswith particular topics. This is illustrated by the IASB considering amendments to
IAS 41 Agriculture in relation to the accounting for bearer plants, the addition of
the accounting for foreign currency transactions and the equity method of
accounting to the IASB’s research agenda, and the inclusion of several AOSSG
member organisations on the IASB’s Islamic Advisory Group.

3.3

Individuals representing AOSSG member organisations
3.3.1 The ability to influence the IASB and the IFRS Foundation stems from thecommitted and dedicated individuals representing AOSSG member
organisations. These individuals have built relationships with IASB and IFRSFoundation members and staff, attend and provide constructive views at IASB

2

As quoted by Hans Hoogervorst, IASB Chairman, in his address at the KASB Seminar in Seoul, Korea April 2012,“the AOSSG… serves as a very helpful sounding board for the IASB”; and Wayne Upton in his interview with
Robert Bruce (financial journalist) in December 2011, “the regional groups, such as the AOSSG, have beenremarkably effective. This group really should be the model for gathering people in one place. There isn’t asingle Asia-Oceania view on most issues.”.

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AOSSG Strategic Plan 2015 - 2019

and IFRS Foundation forums, including roundtables and international
conferences, and are at the forefront in responding to IASB, IFRS Foundationand the IFRS Interpretations Committee (IC) requests for comment.
3.3.2 Although AOSSG member organisations are spread across the region and face
an issue of varied time zones, they regularly meet and/or communicate byelectronic and other means, which enables the sharing of knowledge andinformation through technical discussions and education sessions at the Working
Group (WG) or at an AOSSG-wide level.
3.4

Representation at the IASB’s ASAF
3.4.1 The AOSSG, as well as, the Australia, China and Japan national accounting
standard-setters are members of the ASAF.

4

Weaknesses

4.0

Section 7 Strategic Plan outlines an Actions Plan to help overcome the following
weaknesses.

4.1

Losing previous Office Bearers and experienced member standard-setters
4.1.1 Despite the AOSSG being fortunate in having individuals who are technically andstrategically competent (refer to paragraph 3.3 above), the AOSSG will face anissue of a number of previous Office Bearers and experienced staff members
from key AOSSG member organisations approaching retirement or leaving theirrespective member organisations. Most of these individuals have been involved
with the AOSSG since the commencement in 2009, and accordingly, have agreat understanding of the background, operations and technical views of the
AOSSG.

4.2

Voluntary contribution by member organisations
4.2.1 Compared to other regional bodies, e.g. the European Financial Reporting
Advisory Group (EFRAG), the AOSSG is disadvantaged by not being a fundedgroup, and not having permanent technical or secretariat staff of its own3. The
operations and technical activities of the AOSSG are undertaken by staff
members of member organisations on a contributory basis, in addition to theactivities of their respective member organisations. Further, much of thecontribution is mostly dependent on the enthusiasm of the leader4 of the member
organisation for the aims of the AOSSG mentioned in paragraph 2.4 above.
4.2.2 If AOSSG activities need to expand, staff members will have to spend more timeon AOSSG activities, and accordingly, there would be a strong need for the
AOSSG to have permanent technical and secretariat staff members that arefocused solely on AOSSG activities.

3

4

The idea at the inception of the AOSSG was that member organisations contribute some staff members tomanage the AOSSG operations and technical activities. The Secretariat function is provided by the AOSSGChair as required by the MOU.
Typically, the leaders of the many AOSSG member organisations can change every two or more years.

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AOSSG Strategic Plan 2015 - 20194.3

Low engagement by some member organisations
4.3.1 A number of member organisations have been inactive in AOSSG’s activities due
to insufficient resources or an apparent low level of interest.

4.4

Insufficient member organisations capable of leading
4.4.1 It is planned that each member organisation will have an opportunity to lead the
AOSSG as long as the criteria set out in the Criteria and Processes for
Appointment of the AOSSG Chair and Vice-Chair are met. Some member
organisations will face certain constraints, for example, few resources andtechnical capabilities, that would prohibit them from leading.

5

Opportunities

5.0

Section 7 Strategic Plan outlines an Actions Plan to take advantage of the following
opportunities.

5.1

Pilot IFRS Centre of Excellence in Nepal
5.1.1 The establishment of a pilot IFRS Centre of Excellence (COE) in Nepal as the
AOSSG’s initiative to ‘build standard-setting capacity within the region’ has been
noted internationally. This initiative has helped raise the AOSSG’s profile more
widely as a supporter of a single set of global standards.
5.1.2 The AOSSG needs to consider a funding mechanism to sustain this initiative as
member organisations assisting in the COE are facing resource (funding andstaff) constraints (refer also paragraph 6.3 below).

5.2

Provide thought leadership topics
5.2.1 AOSSG members have the opportunity to undertake thought leadership topics or
topics that analyse emerging issues in the region, either individually or
collaboratively. When the IASB more actively undertakes its research projects,
the AOSSG could contribute very meaningfully to the IASB’s findings.

5.3

Work closely with the IFRS Foundation Asian-Oceanian Office5.3.1 The IFRS Foundation has indicated that it plans to embark on more activities in
the Asia-Oceania region, including an analysis on first-time application of IFRS,
outreach activities on current agenda topics and post-implementation reviews.
This provides the AOSSG with an opportunity to continue to build on its profile
within, and relationship with, the IFRS Foundation through collaboration.

6

Threats

6.0

Section 7 Strategic Plan outlines an Actions Plan to help overcome the following threats.

6.1

Possible loss of AOSSG impact due to other international pressures
6.1.1 It is possible that the challenging economic and political environment in otherparts of the world would lead to a relative loss of AOSSG’s impact in thedevelopment of a single set of global accounting standards.

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AOSSG Strategic Plan 2015 - 2019

6.2

Modifications of IFRS
6.2.1 The AOSSG notes the challenges in some jurisdictions in adopting ortransitioning to IFRS, and therefore, there is no one adoption/transition methodthat fits all jurisdictions. Member organisations need to be mindful of the
AOSSG’s objectives5 when developing and implementing their long-term IFRS
adoption plans and avoid, if possible, making modifications to IFRS.

6.3

Ability to continue contributing meaningfully due to funding pressures
6.3.1 Member organisations may struggle to continue funding their involvements with
the AOSSG. For example, contributing meaningfully to the AOSSG’s aims and
IASB’s technical activities often necessitates face-to-face participation at, forexample, roundtables and conferences, with the IASB and within the AOSSG.

7Strategic Plan

7.1

The AOSSG identified the following four broad areas of strategic direction to deal withthe analyses in Sections 3 to 6 above:





7.2

Continue to contribute constructively to the IASB’s current agendas
Continue to build on the AOSSG’s technical competenceContinue to build on the AOSSG’s profile and voice internationally and regionally
Consider alternative measures to deal with funding pressures

The Action Plan below outlines the actions that need to be pursued, and the timeframeand priorities within the next four years to drive these strategic directions.

Action plan

SWOT

Prio

TimingResponsi-

para ref.

-rityof workble parties

1.1 communicating with the IASB and the IFRS IC through

3.1, 3.2,

High

Ongoing

All members

regular face-to-face meetings6, e.g. annual meeting and

5.3, 6.1

High

Ongoing

All members

1. Continue to contribute constructively to the IASB’s
current agenda by:interim meetings, to discuss IASB and AOSSG technicalactivities
1.2 providing regional views through written submissions on
IASB/IFRS IC consultative documents

5
6

3.1, 3.2,
5.3, 6.1

The AOSSG’s objectives include promoting the adoption of IFRS in the region and developing a single set ofglobal accounting standards
Such meetings would represent the collective views of the AOSSG, including meetings where individuals frommember organisations represent the AOSSG, and not represent the individual member organisation.

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AOSSG Strategic Plan 2015 - 2019

Action plan

SWOT

Prio

TimingResponsi-

para ref.

-rityof workble parties

3.1, 3.2,

High

Ongoing

All members

High

Ongoing

All members

High

Ongoing

WG leaders(WP) Leader to ensure member organisations’ views are

until

and ASAF

represented more directly at the IASB’s ASAF meeting

further

WP

noticemembers
WG leaders

1.3 participating in post-implementation review discussions

5.3, 6.1
1.4 undertaking more, individual7 or collaborative, research
projects, thought leadership topics or topics that analyse

5.2, 5.3,
6.1

emerging issues in the region
1.5 responding to the requests of the ASAF Working Party

1.6 offering to discuss AOSSG views reflected in its
submissions more directly and promptly with IASB staff,

3.1, 3.4

3.1, 3.2,

Medi

Re-

5.3, 6.1

um

assessparticularly on topics that are more complex (newby end-activity)

2015

2. Continue to build on the AOSSG’s technicalcompetence by:
2.1 meeting face-to-face at least once a year, at annualHigh

Ongoing

All members

4.3, 4.4High

Ongoing

Secretariat

3.3, 4.2

High

Ongoing

All members

3.3, 4.2

High

Ongoing

All members

2.5 conducting educational sessions through the most

3.2, 3.3,

Medi

Re-

WG leaders

effective and efficient manner, e.g. face-to-face

4.4, 6.3

um

assessmeetings, to discuss technical accounting matters3.2, 3.3,
4.4

including those in the region
2.2 communicating actively with member organisations thatare less active (new activity)
2.3 identifying key individuals and staff who are dedicated tothe aims of the AOSSG, technically competent, has theability to think strategically and impact regionally andglobally to represent member organisations
2.4 providing key individuals and staff exposure to technicaland strategic AOSSG matters, including attending
annual meetings, interim meetings, WG or CAC
meetings, providing relevant technical training, andbuilding relationships with individuals from othermember jurisdictions

education sessions in conjunction with other meetingsby end-like IFASS or the IASB World Standard-Setter, and2015

education sessions via teleconference and other online
methods

7

Research consistent with the IASB agenda, thought leadership and other emerging topics may be undertaken
initially by individual member organizations and then provided to AOSSG members for comment or further input.

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AOSSG Strategic Plan 2015 - 2019

Action plan

2.6

considering the need for, and if so, how to establish a

SWOT

Prio

TimingResponsi-

para ref.

-rityof workble parties

3.3, 4.2

Medi

By 2017

Chair, VC

permanent AOSSG secretariat function, possibly in aum

and CACcentral location, including the operations, funding andother funding means such as via staff secondments(new activity)
2.7

recruiting accounting standard-setter bodies in the

3.2, 3.3

region that are, or have the potential to become,Medi

Ongoing

CAC

Ongoing

All members

High

Ongoing

Chair, VC

High

Ongoing

All members

High

Ongoing

Website andumtechnically strong, strategic and have the ability tocontribute regionally and globally
2.8

individuals at member organisations being made3.2

available to another member organisation

Medi
um

3. Continue to build on the AOSSG profile and voice
regionally and internationally by:
3.1 reinforcing and reminding members of the AOSSG’s

3.4, 4.3,

commitment to a single set of global accounting

5.2, 6.1,

standards, for example by encouraging members to

6.2

provide an update on IFRS issues andadoption/transition plans at AOSSG meetings
3.2 promoting actively and maintaining the use of a single

3.2, 3.4,

set of IFRS in local jurisdictions, including influencing

6.1, 6.2

regulators and other bodies in local jurisdictions
3.3 utilising the AOSSG website more effectively, e.g.

3.2, 4.3,

publishing thought-provoking technical pieces and

5.2, 6.1

WG leaders,providing a brief update of the AOSSG’s participation at

andconferences and roundtables

Secretariat

3.4 ensuring local stakeholders are aware of the AOSSG

4.3, 6.1

High

Ongoing

All members

3.2, 3.3,

Medi

Ongoing

Chair, VC

4.1, 5.2um

5.3, 6.1

High

Ongoing

All members

4.4, 5.1

High

Early

COEDC WP

and its objectives, and using the AOSSG’s channels to
the IASB and IFRS IC to report back local financial
reporting issues
3.5 maintaining close contacts with willing personnel fromprevious Office-Bearing jurisdictions for specific AOSSG

and CACinitiatives, for example, the AOSSG's IFRS Centre of
Excellence resource (new activity)
3.6 engaging actively with Asian-Oceanian members of the
IFRS Trustees, IFRS Advisory Council, IASB etc
3.7 assessing if further COEs in the region are feasible(depending on available resources) and necessary

2015

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AOSSG Strategic Plan 2015 - 2019

Action plan

3.8 ensuring AOSSG member organisations are contributing

SWOT

Prio

TimingResponsi-

para ref.

-rityof workble parties

6.1

Medi

Ongoing

All members

Ongoing

Relevant

fairly financially to the IFRS Foundation (new activity)um

4. Consider alternative measures to deal with funding
pressures by:
4.1 seeking external financial backing through donor
agencies, accounting bodies, governments and others
4.2 using more tele- or video-conferencing facilities, if
available, to communicate with IASB or AOSSG

5.1, 4.3,

Medi

4.4, 6.3

um

3.2, 3.3,
4.3, 6.3

Low

members
Ongoing

CAC and
Working

members and staff

Group
leaders

4.3 using online methods, such as LinkedIn or the AOSSG
website, to share and document technical issues around3.2, 3.3,
4.3, 4.4,
6.3

Low

Ongoing

CAC

the region (new activity)

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