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The IASB issued amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures that would permit the reclassification of some financial instruments.
The amendments to IAS 39 introduce the possibility of reclassifications for companies applying IFRSs, which were already permitted under US GAAP in rare circumstances.
This action enables companies reporting according to IFRSs to use the reclassification amendments, if they so wish, from
Appendix A
The following table illustrates how reclassification will be dealt with following this announcement by IFRSs when compared with US GAAP.
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US GAAP |
IAS 39 Amendments |
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Reclassification of securities out of the trading category in rare circumstances |
Permitted |
Permitted |
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Reclassification to loan category (cost basis) if intention and ability to hold for the foreseeable future (loans) or until maturity (debt securities) |
Permitted |
Permitted |
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Reclassification if fair value option previously elected |
Not permitted |
Not permitted |