02 October 2009
Published in: Accounting - tax
IASB continues to debate IAS 39
The International Accounting Standards Board (IASB) has scheduled an extra meeting in London on 6 October to continue its discussions on the Financial Instruments: Replacement of IAS 39 project.
The board has already held two extra meetings on this subject, on 22 and 29 September. Concern has been expressed within the insurance industry about the impact of parts of IAS 39 on insurance companies (see IERM, News/comment, 11 September, "CEA voices concern over IAS 39").
At the meeting on 29 September, the IASB tentatively decided that the scope of this phase of the project should continue to include financial liabilities. Some respondents to the exposure draft published in July 2009 had suggested that the board should limit the scope of this phase to the classification and measurement of financial assets.
The board also decided to consider at subsequent meetings issues such as accounting for hybrid liability contracts and whether the re-measurement of particular financial liabilities should reflect changes in the issuer's own credit risk.
Contrary to its normal practice, the IASB tentatively decided that the exposure draft should indicate that the effective date is expected to be around three years from the date of issue of any final requirements.