IFRS 7 Amendment - Investments in Debt Instruments ED
The staff presented its comment letter analysis on the Exposure Draft Investments in Debt Instruments that would require additional disclosures for certain debt instruments. Staff said that the vast majority of respondents disagreed with the proposals, mainly for reasons of failed due process, doubts over usefulness of information, weakening the measurement bases chosen in the primary financial statements, and practical concerns.
Many Board members noted that such disclosures were requested by constituents and wondered why they now rejected them. The staff noted that the US FASB, which has exposed similar proposals, will be presented with a staff recommendation to drop the proposals (with the possible exception of requiring SFAS 157 disclosures for interims).
The Board agreed to abandon the proposals for the time being and to add the issues the ED aimed to address to the project on a comprehensive review of financial instruments accounting.