IASB completes first phase of IFRS 9
13 Nov 09
The International Accounting Standards Board has issued a new International Financial Reporting Standard on the classification and measurement of financial assets
Publication of the IFRS completes the first part of a three-part project to replace IAS 39, Financial Instruments: Recognition and Measurement, with a new standard, IFRS 9, Financial Instruments.
Proposals addressing the second part, the impairment methodology for financial assets, were published for public comment at the beginning of November, while proposals on the third part, on hedge accounting, continue to be developed.
The IASB says the new standard enhances the ability of investors and other users of financial information to understand the accounting of financial assets and reduces complexity, an objective endorsed by the G-20 and other stakeholders internationally.
IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in IAS 39.
The effective date for mandatory adoption of IFRS 9 is 1 January 2013. Early adoption is permitted for 2009 year-end financial statements.
IASB chairman Sir David Tweedie said: “We have delivered on our commitment to the G20 and stakeholders internationally to provide an improved financial instrument standard for the classification and measurement of financial assets for use in 2009. Benefiting from unprecedented levels of consultation with stakeholders around the world, the IASB has made significant changes in its initial proposals to improve the standard, provide enhanced transparency and respond to stakeholder concerns.”
IFRS 9 Financial Instruments is available to download here