Financial instruments — Comprehensive project
The objective of this project is to completely replace the requirements of IAS 39 Financial Instruments: Recognition and Measurement with a new standard that represents a comprehensive reconsideration of the requirements of accounting for financial instruments. The project aims to substantially reduce the complexity and difficulties currently experienced with existing requirements.
Current status of the project
The project has been split into a number of components:
|Classification and measurement||Assets - IFRS 9 issued 12 November 2009
Liabilities - IFRS 9 reissued 28 October 2010
|Impairment||Exposure Draft ED/2013/3 Financial Instruments: Expected Credit Losses published on 7 March 2013|
|General hedge accounting||IFRS 9 reissued 19 November 2013|
|Macro hedge accounting*||Discussion Paper expected first or second quarter of 2014|
|Asset and liability offsetting||Amendments to IFRS 7 and IAS 32 issued on 16 December 2011|
|Derecognition||Existing requirements in IAS 39 incorporated into IFRS 9 on 28 October 2010|
|Deferral of effective date of IFRS 9||Amendments to IFRS 9 and IFRS 7 issued on 16 December 2011|
|Limited reconsideration of IFRS 9||Exposure Draft ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 published in November 2012|
* In November 2013, the IASB issued IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39), which included a new general hedge accounting model, and removed the 1 January 2015 effective date of IFRS 9 Financial Instruments pending finalisation of the comprehensive project on financial instruments. The macro hedge accounting project is subsequently being separately considered by the IASB, accordingly, the determination of an effective date of IFRS 9 is not dependent upon finalisation of this project. At its November 2013 meeting, the IASB tentatively decided that the mandatory effective date of IFRS 9 would be no earlier than annual periods beginning on or after 1 January 2017. The IASB then tentatively decided at its February 2014 meeting to set 1 January 2018 as the effective date for the mandatory application of IFRS 9.
|September 2004||Financial Instruments Working Group appointed|
|6 March 2006||Staff Questionnaire on users' views on fair value disclosures||Response deadline 14 April 2006|
|20 March 2008||Discussion Paper Reducing Complexity in Reporting Financial Instruments published||Comment deadline 19 September 2008|
|June 2009||Project divided into three components:
|12 November 2009||IFRS 9 Financial Instruments issued, covering classification and measurement of financial assets||Effective for annual periods beginning 1 July 2013 (later deferred)|
|June 2010||New component on offsetting of assets and liabilities added|
|28 October 2010||IFRS 9 Financial Instruments reissued, incorporating accounting for financial liabilities, and derecognition||Effective for annual periods beginning 1 July 2013 (later deferred)|
|July 2011||New component on the effective date of IFRS 9 added||To consider deferral of mandatory date to 1 January 2015|
|November 2011||New component on limited reconsideration of IFRS 9 added||Expected to possibly consider interaction with the insurance project, and convergence with FASB|
|16 December 2011||Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)||Amends the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modifies the relief from restating comparative periods and the associated disclosures in IFRS 7|
|16 December 2011||Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) issued||The amendments to IFRS 7 apply to annual periods beginning on or after 1 January 2013 and interim periods within those periods|
|16 December 2011||Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) issued||The amendments to the application guidance in IAS 32 are applicable to annual periods beginning on or after 1 January 2014|
|7 September 2012||'Review draft' of the general hedge accounting section ofpublished||At that time, finalised requirements were expected in the fourth quarter of 2012|
|19 November 2013||IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) issued||The amendment removed the mandatory effective date for IFRS 9 which will be set once the standard is complete with a new impairment model and finalisation of any limited amendments to classification and measurement|
For more information, including details of exposure drafts and other due process documents for each phase, refer to the individual project pages for the various project components.
Deloitte IFRS podcasts on financial instruments
Andrew Spooner, lead IFRS financial instruments partner, and Bob Uhl, head of the US Accounting Standards group and IFRS Centre, debate the IASB and FASB's proposals for financial instruments. The discussions are chaired by Robert Bruce. The podcasts are part of a series we make available on IAS Plus:
- Part 1: Classification and measurement of financial instruments. The podcast is available for download here (19:30 mins, 23mb) or via iTunes.
- Part 2: Impairment of financial instruments. The podcast is available for download here (28:19 mins, 33mb) or via iTunes.
- Part 3: Hedge accounting of financial instruments. The podcast is available for download here (18:28 mins, 22mb) or via iTunes.
Andrew Spooner, Lead IFRS financial instruments partner, and Kush Patel, senior manager and recent IASB Practice Fellow, discuss the IASB’s exposure draft on hedge accounting. They discuss the key changes that are proposed and provide an insight into the likely effect they will have in practice. The discussion is chaired by Robert Bruce.
- Part 4: Hedge accounting Exposure Draft. The podcast is available for download here (35:18 mins 33 mb) or via iTunes.
Andrew Spooner, Lead IFRS Partner on Financial Instruments, discusses the new IASB standard on Fair Value Measurement with Robert Bruce.