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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.