Derecognition
The project encompasses the requirements in IAS 39 Financial Instruments: Recognition and Measurement (IAS 39) for when a financial asset or financial liability must be removed from an entity’s statement of financial position and the related derecognition disclosure requirements in IFRS 7 Financial Instruments: Disclosures.
Why are we doing the project?
The IASB is doing this project for three reasons:
- To improve the derecognition requirements for financial assets in IAS 39, which have been perceived to be complex to understand and apply in practice
- To move towards convergence the derecognition requirements in IAS 39 and those in US GAAP
- To provide users with more information about an entity’s exposure to the risks of transferred financial assets
Where are we in the project?
The IASB published an exposure draft Derecognition ED/2009/3 (proposed amendments to IAS 39 and IFRS 7) in March 2009.
Read the ED and related press release.
View or comment on the exposure draft
View the summaries of Board meetings and related agenda papers leading up to the ED.
On 27 May Stephen Cooper, Board Member, Christian Kusi-Yeboah, Project Manager and Michael Mueller, Practice Fellow, introduced the exposure draft in a live web presentation followed by a question and answer session. You can now listen to a recording of the morning and afternoon session and download a pdf of the presentation.
What happens next?
The IASB is holding round tables in June 2009 to discuss the proposals in the Derecognition exposure drafttogether with the proposals in the Consolidation ED. The round tables will be held in North America, Asia and Europe. Click here for further information.
Estimated project completion
The Board plans to publish a final amendment of the derecognition guidance in IAS 39 in the first half of 2010.
Related projects
In addition to this project, there are two other long-term projects on financial instruments:
There are other projects that are also related to this project: