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    Financial instruments

     

    The accounting for financial instruments is a complex area. Standards relating to financial instruments include:

    • IAS 32 Financial Instruments: Presentation
    • IAS 39 Financial Instruments: Recognition and Measurement
    • IFRS 7 Financial Instruments: Disclosures

    In addition, there are also a number of Interpretations by the International Financial Reporting Interpretations Committee (IFRIC) that relate to financial instruments.

    The IASB is undertaking several major projects on the accounting for financial instruments. This includes a project to replace IAS 39, the standard that sets out requirements for the recognition and measurement of financial instruments. It has also recently completed various amendments to standards; many of these were initiated in response to the financial crisis.

    Major ongoing projects

    The IASB is undertaking three major projects relating to financial instruments:

    • Replacement of IAS 39, Click here for more on this project
    • Derecognition of Financial Instruments, Click here for more on this project
    • Financial Instruments with Characteristics of Equity, Click here for more on this project

    Recently completed projects

    The IASB has recently completed a number of projects that introduce amendments to existing standards and relate to the accounting for financial instruments. Many of these projects were initiated as part of the IASB’s response to the financial crisis.

    For a list of recently completed projects click here

    Working groups

    The Financial Crisis Advisory Group (FCAG)

    Accounting issues emerging from the global crisis are considered jointly by both the IASB and the US Financial Accounting Standards Board (FASB). As part of that commitment, the boards established an advisory group comprised of senior leaders with broad international experience with financial markets to assist in that important process.

    The primary function of the advisory group is to advise the boards about standard-setting implications of the global financial crisis and potential changes to the global regulatory environment.

    Click here for more on the Financial Crisis Advisory Group (FCAG).

    The Financial Instruments Working Group (FIWG)

    In 2004 the IASB set up a Financial Instruments Working Group (FIWG) that includes users, preparers and auditors of financial statements of both financial institutions and other types of entities.

    In addition, other interested parties such as the Basel Committee, EFRAG and IOSCO participate as observers in the meetings of the working group. The FIWG will help the IASB take a fresh look at accounting issues related to financial instruments by examining and questioning the fundamentals of the relevant standards within the context of the IASB’s Framework.

    Click here for more on the Financial Instruments Working Group (FIWG).

    Additional information

    Financial crisis round-table

    In November and December 2008, the IASB and the FASB jointly held a number of round-tables to discuss actions needed to improve financial reporting and enhance investor confidence with regard to the global financial crisis. Some of the issues addressed at the round-tables specifically relate to financial instruments.

    Click here for more on the financial crisis round-tables.

    Visit the financial crisis section for more information about the financial crisis

    Project contacts for all financial instruments projects: