IAS 39 Financial Instruments: Recognition and Measurement—Paragraph AG33(d)(iii) and Scope of paragraph 11A
Summary of the issue:
The IFRIC was asked whether the fair value option available in paragraph 11A of IAS 39 can be applied to all contractual arrangements with one or more embedded derivatives, including contractual arrangements that contain hosts outside the scope of IAS 39.
The IFRIC was also asked about the application of paragraph AG33(d)(iii) of IAS 39, particularly, what the economic environment is in determining whether a currency is commonly used in contracts to buy or sell non-financial items.
Next milestones:
The IFRIC noted that both issues relate to the scope of IAS 39 and that resolving them would require amendments to IAS 39. The IFRIC recommended that the staff suggest how the paragraphs could be amended to reflect the Board’s intentions, for the Board’s consideration.
Discussed by the IFRIC:
Staff contact: