"The IASB has made significant change since initial proposals on IFRS 9,” said Sir David Tweedie. Issuing the proposal, the IASB completes its first phase of reforms. The second phase is ready for public comment, while the third is being developed.
The IASB has made significant changes in its initial proposals, Sir David Tweedie said.
IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in IAS 39. It is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in IAS 39.
IASB completes its first phase of financial instruments accounting reform issuing IFRS 9 on Financial Instruments.
Proposals addressing the second part, the impairment methodology for financial assets were published for public comment at the beginning of November, while proposals on the third part, on hedge accounting, continue to be developed.
Furthermore, the IASB decided not to finalise requirements for financial liabilities in IFRS 9, but gives further consideration to the classification and measurement of financial liabilities and it expects to issue final requirements during 2010.
The effective date for mandatory adoption of IFRS 9 Financial Instruments is 1 January 2013.
© IASB - International Accounting Standards Board
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