The proposed amendments follow discussions with participants in a series of public round-table meetings on the global financial crisis organised by the IASB and the US Financial Accounting Standards Board (FASB). The outcome of the round tables was presented to the Board at its meeting this week.
The IASB believes that the proposed disclosures would allow greater comparability between investments in debt instruments held with and by different entities, and so enhance investors’ confidence in the financial markets. The FASB is making similar disclosure proposals.
Commenting on the proposals, Sir David Tweedie, IASB Chairman, said:
We continue to act swiftly in dealing with accounting issues that have arisen as a result of the crisis. Enhanced disclosures for investments in debt instruments will provide greater transparency and help to regain investors’ confidence in the financial markets. In line with our commitment to seeking global solutions to a global crisis the FASB will also be issuing similar proposals.
The proposals are set out in an exposure draft Investments in Debt Instruments, on which the IASB invites comments by 15 January 2009. The exposure draft is available on the Website from the ' open for comment ' at www.iasb.org. For more details on the IASB’s response to the financial crisis and the G20 conclusions visit the ‘Credit Crisis’ section of the Website.
Printed copies of the exposure draft (ISBN 978-1-905590-96-4) will be available shortly, at £10.00 plus shipping, from the IASC Foundation Publications Department.