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GAAP.RUNewsIASB publishes a discussion paper as first step towards reducing complexity in reporting financial instruments

IASB publishes a discussion paper as first step towards reducing complexity in reporting financial instruments

Publication date: 19 March 2008

The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret and apply and constituents have urged the IASB to develop standards that are principle-based and less complex. The document is the first stage in a project which aims to replace IAS 39 Financial Instruments: Recognition and Measurement.

In full accordance with the Memorandum of Understanding between the IASB and the US Financial Accounting Standards Board (FASB) and the Roadmap for Convergence between IFRSs and US GAAP - 2006-2008 (as well as for other reasons like simplification of hedge accounting) the International Accounting Standards Board (IASB) issued a discussion paper “Reducing Complexity in Reporting Financial Instruments” and it is the first step for replacement of IAS 39 “Recognition and Measurement” with more principle-based approach – Sir David Tweedie commented on the issue.