IASB Reacts To G20 With Timetable For IAS 39 (Financial Instruments) Replacement

by Robin Pilgrim, LawAndTax-News.com, London

02 June 2009

The International Accounting Standards Board (IASB) has published an update on the progress of its comprehensive review of IAS 39 Financial Instruments, responding to concerns previously raised by the European Commission in its letter of 27 October 2008.

At its Board meeting in May 2009, the IASB revised its April 2009 timetable for the comprehensive review of its standard on the recognition and measurement of financial instruments, IAS 39.

• The revised timetable calls for the publication for public comment of an exposure draft on the classification and measurement of financial instruments during July 2009, with the objective of issuing a standard in time for 2009 year-end financial statements.
• Regarding the impairment of financial assets, the Board decided tentatively that, following two educational Board sessions in June, it would ask for views from interested parties by way of a website posting. The IASB plans to publish proposals on the impairment of financial assets in October 2009, including consideration of an expected loss model.
• The Board intends to address hedge accounting in a separate exposure draft before the end of 2009.

The IASB’s timetable for an accelerated review of IAS 39 is consistent with the recommendations and timetable set out by the G20 in April 2009.

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