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06 May 2009

IASB meeting on IAS 39


The Board discussed its project to replace IAS 39, in particular a possible remeasurement method based on discounted cash flows and announced publishing an exposure draft on this issue.

The IASB met for an additional Board meeting to discuss its project to replace IAS 39. In particular the Board discussed a possible remeasurement method based on discounted cash flows.

 

The additional Board meeting followed a tentative decision taken by the IASB and the US FASB at their joint meeting in March this year to consider three possible measurement methods for financial instruments:

 

Ø       fair value - defined as an exit price in SFAS 157 Fair Value Measurements and in the forthcoming IAS exposure draft on fair value measurement;

Ø       another remeasurement method, proposed by some FASB members, based on discounted cash flows; and

Ø       amortised cost, (including an impairment approach for financial assets).

 

At that meeting the boards noted their aim of proposing, in a future exposure draft, an accounting model for financial instruments that uses two of the three methods described above.

 

Audio file

 



© IASB - International Accounting Standards Board


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