IASB issues final IAS 39 fair value option amendment
The IASB has amended IAS 39 'Financial Instruments: Recognition and Measurement' to restrict the use of the option to designate any financial asset or any financial liability to be measured at fair value through profit and loss (the 'fair value option').
- the fair value option designation eliminates or significantly reduces an accounting mismatch
- a group of financial assets, financial liabilities, or both are managed and their performance is evaluated on a fair value basis in accordance with a documented risk management or investment strategy,
- an instrument contains an embedded derivative that meets particular conditions.