Financial Instruments: IAS 39 Replacement - Classification and Measurement
- Didier Andries
The IASB has added to its active agenda a multi-phase project to improve the reporting requirements for financial instruments. The first phase of the project deals with the classification and measurement of financial assets and financial liabilities. The Exposure Draft Financial Instruments: Classification and measurement has been issued for comments on July 2009. This phase of the project proposes that financial instruments are classified into two measurement categories. Financial assets or financial liabilities would be measured at amortised cost if two conditions are met: (1) the instrument has basic features, and (2) the instrument is managed on a contractual yield basis. Financial assets and financial liabilities that do not meet both conditions would be measured at fair value. EFRAG issued a draft endorsement advice on IFRS 9 in November 2009. However, it has been decided that more time should be taken to consider the output from the IASB project to improve accounting for financial instruments. Therefore, at this stage, EFRAG will not finalise its endorsement advice on IFRS 9.
Information on IFRS 9 can be found here: