Financial Instruments
The staff presented a paper dealing with long-term objectives on how to simplify and improve financial reporting for financial instruments. The same paper will be discussed at the upcoming joint IASB/FASB Meeting 27 April 2006.
The paper addresses ways to simplify or eliminate the need for special hedge accounting. Both fair value hedging and cash flow hedging were addressed.
Several Board members commented favourably on the paper and suggested that the staff should explore the issues raised in the paper more extensively. One FASB member who was attending the meeting said that the paper was a good preliminary proposal but suggested that further consideration of the issues should await completion of the Fair Value Measurement project.
Board members expressed some general comments but no decisions were made.
