|
The IASB started in November 2008 a project with the objective to improve the usefulness for users of financial statements by simplifying the classification and measurement requirements for financial instruments to address concerns that IAS 39 Financial Instruments: Recognition and Measurement (‘IAS 39’) was “difficult to understand, apply and interpret” .
To ensure a timely response to calls to address concerns with IAS 39, the IASB has taken a phased approach.
Phase 1, first part, dealt with classification and measurement of financial assets resulting in the IASB publication of IFRS 9 in November 2009. For more information, Click here.
Phase 1 second part, dealt with classification and measurement of financial liabilities. For more information, click here.
Phase 2 dealt with impairment of financial assets carried at amortised cost: click here.
Phase 3 addressed hedge accounting: to access the project page, click here.
In May 2010 the FASB issued the Exposure Draft Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities setting out a comprehensive approach to financial instruments classification and measurement, impairment and hedge accounting. To access the related project page, click here.
In June 2010 in response to stakeholders’ concerns (including the Financial Stability Board and the Basel Committee on Banking Supervision) the FASB and the IASB decided to jointly work on a separate exposure draft on this topic. The Boards issued the Exposure Draft Offsetting Financial Assets and Financial Liabilities in January 2011. To access the related project page, click here.
In October 2010 the IASB amended IFRS 7 Financial Instruments: Disclosures. To access the related project page, click here.
To address criticisms of the requirements in IAS 32 the IASB has set out to improve and simplify IAS 32: to access the related project page, click here.
In March 2008 the IASB published a Discussion Paper 'Reducing Complexity in Reporting Financial Instruments': to access the related project page, click here.
In April 2009 EFRAG commented on the FASB Request for views on proposed amendments on Fair Value Measurement and to Impairment Requirements for Certain Investments in Debt and Equity Securities: for more information, click here.
Interpretations
IFRIC 19 provides guidance on how an issuer of debt should account for a debt for equity swap: for more information, click here.
In March 2009, the IASB issued Embedded Derivatives (Amendments to IFRIC 9 and IAS 39) . The amendments clarify that on reclassification of a financial asset out of the ‘at fair value through profit or loss’ category all embedded derivatives have to be assessed and, if necessary, separately accounted for in financial statements. For more information, click here.
In July 2008 the IASB published IFRIC 16 Hedges of a Net Investment in a Foreign Operation: for more information, click here.
To access the IASB project page, click here.
The IASB issued on 4 August 2011 an ED on Mandatory Effective Date of IFRS 9 : for more information, click here.
|
