United States

IFRS Newsletter: Financial Instruments – The Future of IFRS Financial Instruments Accounting

Nov 02, 2015
From the Financial Reporting View and the IFRS Institute

The October 2015, Issue 27 of KPMG ISG’s IFRS Newsletter: Financial Instruments – The Future of IFRS Financial Instruments Accounting summarizes the October IASB meeting at which the Board continued to discuss its project about financial instruments with characteristics of equity. The Board focused its discussion on classification of derivatives on own equity, including the challenges of accounting for those instruments and how IAS 32, Financial Instruments: Presentation, addresses those challenges. The Board did not reach decisions. At a future meeting, the Board will address the conceptual challenges of the fixed-for-fixed condition in IAS 32, and will consider classification of specific types of financial instruments, e.g., contingent convertible bonds and put options written on non-controlling interests.

The Board also continued to discuss a package of temporary measures that would address concerns about implementing IFRS 9, Financial Instruments, before the forthcoming insurance contracts standard is effective.

Finally, the IFRS Transition Resource Group for Impairment of Financial Instruments summarized its activities to date, and briefed the Board about an issue related to measuring expected credit losses for revolving credit facilities.

Read KPMG ISG's IFRS Newsletter: Financial Instruments – The Future of IFRS Financial Instruments Accounting