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The FASB's unilateral amendments raise a number of concerns, EFRAG states and underlines that it prefers improvements to be built on the guidance in the Experts Advisory Panel Report rather than importing piecemeal changes from the US GAAP into IFRS.
The FASB’s actions do not appear to be consistent with the notion of “working co-operatively and in an internationally co-ordinated manner, EFRAG complains and criticizes that unilateral changes will fuel a move towards accounting standards representing the lowest common denominator and will inevitably slow down the development of a comprehensive global solution.
The FASB issued its proposals in haste and with a comment period of just two weeks even though the changes could have a significant impact on financial instruments reporting, EFRAG warns. Such standard setting has a tendency of not taking properly into account the needs of all stakeholders and as a result may compromise on the quality of the financial reporting standards and
EFRAG recommends the IASB develop a new standard on recognition and measurement of financial instruments that would replace IAS 39 as soon as possible while maintaining a due process to ensure a high quality input to the standard setting process.