Replacement of IAS 39: Classification and Measurement

Date recorded:

The Boards briefly considered the status of the project on classification and measurement of financial liabilities. The purpose of the session was to update Boards, and no decisions were taken.

The staff summarised the approaches so far discussed by both Boards. The FASB gave update on its tentative decision to require a separate measurement attribute for core deposits (present value of the average core deposits amount discounted by the difference between alternative funds rate and the all-in-cost-to-service rate over the implied maturity).

From the initial discussion the FASB seemed to prefer fair value measurement of liabilities as the FASB believed that it better captured the risks embedded in financial assets and liabilities.

The Boards will start joint deliberation of this topic in February.

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