The July 2015, Issue 25 of KPMG ISG’s IFRS Newsletter: Financial Instruments – The Future of IFRS Financial Instruments Accounting summarizes the IASB’s discussions in July about two projects:
Macro Hedge Accounting. The IASB approved the staff’s proposed scope and approach for identifying the information needs of constituents, and the need to consider benefits and costs of reporting the information. The scope will include entities that undertake dynamic risk management (DRM) activities and those that do not undertake DRM activities but are exposed to interest rate risk. The IASB will consider risks other than interest rate risk at a later date. The Board plans to publish a second discussion paper before it issues an Exposure Draft to more effectively consult with stakeholders about different views with the goal that the Exposure Draft would be more widely supported.
Financial Instruments with Characteristics of Equity. The IASB staff identified the features of claims that are relevant to distinguishing between liabilities and equity, and is mapping those features to the assessments users make about information in the statement of financial position and the statement of financial performance. The Board also discussed whether the measurement of the claims should be updated and, if so, whether the changes should be recognized or disclosed, but did not reach decisions.