IAS 39 Financial Instruments - Recognition and Measurement – Derecognition of Financial Assets
Summary of the issue:
The IFRIC has received a request for an interpretation of the derecognition requirements of IAS 39. In particular, the IFRIC has been asked (a) when financial assets are considered to be similar for the purposes of the derecognition tests; and (b) when the pass through tests in paragraph 19 of IAS 39 should be applied.
Latest progress on the issue:
At its meeting in July 2006 the IFRIC directed the staff to seek the views of the Board on these two issues. In particular, the IFRIC asked the Board to clarify whether the wording in IAS 39 reflected the Board’s intentions. The Board discussed these issues at its September 2006 meeting.
At the November 2006 IFRIC meeting, the IFRIC decided to issue a tentative agenda decision. This was published in the November 2006 edition of update and proposed not to take these issues on to the agenda.
After considering the comment letters received on the tentative agenda decision, the IFRIC concluded at its January 2007 meeting that additional guidance is required in this area. The IFRIC therefore decided to withdraw the tentative agenda decision and add a project on derecognition to its agenda.
Next milestones:
The staff will undertake additional research to establish the scope of this proposed Interpretation and will present their findings at a future meeting.
Discussed by the IFRIC:
Discussed by the Board:
Staff contact: