Changes made to FRS 29
29 Jun 09
The UK's Accounting Standards Board has issued Amendments to FRS 29 Improving Disclosures about Financial Instruments
The amendments are based on those issued by the International Accounting Standards Board in March 2009. This package of amendments is part of the standard-setting response to the credit crisis, by improving the quality of information disclosed in financial statements about financial instruments.
The ASB issued an exposure draft of the amendments in November 2008. Constituents in the United Kingdom and the Republic of Ireland were broadly supportive of the proposed changes to FRS 29. The strong view coming through the responses was that the ASB should ensure FRS 29 remains converged with International Financial Reporting Standard (IFRS 7) Financial Instruments: Disclosures.
The amendments to FRS 29 require enhanced disclosures about fair value measurements and liquidity risk. The ASB also took this opportunity to incorporate credit risk disclosures for loans and receivable as this requirement in IFRS 7 had not previously been adopted into UK GAAP.
Entities must apply the amendments to annual periods beginning on or after 1 January 2009.