Financial Instruments – Subsequent Issues - PSAB
At its meeting on March 19-20, 2015, the PSAB reconfirmed the need to replace Section PS 2600, Foreign Currency Translation. The PSAB continues to be of the view that currency risk should reflect current rates and that derivatives used as hedging instruments need to be presented separately and not as part of a synthetic instrument. While generally supportive of much of the direction in Section PS 2601, Foreign Currency Translation, and Section PS 3450, the PSAB agreed to further explore the implementation of considerations put forth by stakeholders, particularly in the areas of hedge accounting and linkage to the Concepts Underlying Financial Performance project. To enable due process, the PSAB directed staff to prepare an implementation deferral for those stakeholders that continue to apply Section PS 2600, which would also respect early adopters of Sections PS 2601 and PS 3450, for approval at its June 2015 meeting. The PSAB deferred considering the amendments proposed in the ED until its June 2015 meeting.
Review the executive summary.