IASB publishes a discussion paper as first step towards reducing complexity in reporting financial instruments
19 March 2008
Download a PDF version of this press release.
The International Accounting Standards Board (IASB) today published for public comment a discussion paper Reducing Complexity in Reporting Financial Instruments.
The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret and apply and constituents have urged the IASB to develop standards that are principle-based and less complex. The document is the first stage in a project which aims to replace IAS 39 Financial Instruments: Recognition and Measurement.
The discussion paper analyses the main causes of complexity in reporting financial instruments and proposes possible intermediate approaches to address some of them.
Those approaches seek to improve and simplify measurement and hedge accounting by amending or replacing the existing requirements.
Furthermore the discussion paper sets out the arguments for and against a possible long-term approach that would use one measurement method for all types of financial instruments in the scope of a financial instruments standard.
The IASB seeks views on both the possible long-term and intermediate approaches and is interested to hear about possible alternatives on how it should proceed in developing new standards for reporting financial instruments that are principle-based and less complex.
The publication of the discussion paper also fulfils the commitment set out in the Memorandum of Understanding between the IASB and the US Financial Accounting Standards Board (FASB) A Roadmap for Convergence between IFRSs and US GAAP – 2006─2008. The discussion paper will be considered for publication by the FASB for comment by its constituents.
Introducing the discussion paper, Sir David Tweedie, IASB Chairman, said:
IAS 39, which the IASB inherited from its predecessor body, is far too complex. We are determined to simplify and improve IAS 39 by creating a principle-based standard. Those who believe in reducing complexity in accounting standards have now the opportunity to shape the way ahead.
The IASB invites comments on the discussion paper by 19 September 2008. For more details on the project, see the Financial Instruments Web pages.
The discussion paper Reducing Complexity in Reporting Financial Instruments will be freely available on the Website from today.
Printed copies (ISBN 978-1-905590-59-9) will be available shortly, at £10.00 plus shipping, from the IASC Foundation Publications Department.
IASC Foundation Publications Department
30 Cannon Street
London EC4M 6XH
United Kingdom.
Telephone: +44 (0)20 7332 2730
Fax +44 (0)20 7332 2749
Email: publications@iasb.org
Press enquiries
-
-
Sonja Horn, Communications Adviser, IASB
Telephone: +44 (0)20 7246 6463
Email:
shorn@iasb.org
Technical enquiries
- Gavin Francis, Senior Project Manager, IASB, Telephone: +44 (0)20 7246 6901
Email: gfrancis@iasb.org
- Elizabeth Figgie, Project Manager, IASB
Telephone: +44 (0)20 7246 6925
Email: efiggie@iasb.org