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Financial instruments — Comprehensive project (inactive)

The objective of this project is to significantly improve the decision usefulness of financial instrument reporting for users of financial statements. The project will replace the FASB's and IASB's respective financial instruments standards with a common standard. The boards believe that simplification of the accounting requirements for financial instruments should be an outcome of this improvement. Although the project objective is comprehensive, it is also the boards' objective that the project should be completed expeditiously.

Specifically, the boards' are reviewing the following:

Current status of the project

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.

Project milestones

DateDevelopmentComments
September 2004 Financial Instruments Working Group appointed.
March 6, 2006 Staff Questionnaire on users' views on fair value disclosures Response deadline April 14, 2006.
March 20, 2008 Discussion Paper, Reducing Complexity in Reporting Financial Instruments, published. Comment deadline September 19, 2008.
June 2009 Project divided into three components:
  • Classification and measurement
  • Impairment
  • Hedge accounting
November 12, 2009 IFRS 9, Financial Instruments, issued, covering classification and measurement of financial assets. Effective for annual periods beginning July 1, 2013.
June 2010 New component on offsetting of assets and liabilities added.
October 28, 2010 IFRS 9, Financial Instruments, reissued, incorporating accounting for financial liabilities, and derecognition. Effective for annual periods beginning July 1, 2013.
July 2011 New component on the effective date of IFRS 9 added. To consider deferral of mandatory date to January 1, 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.
December 16, 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 January 1, 2015, and modifies the relief from restating comparative periods and the associated disclosures in IFRS 7.
December 16, 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 January 1, 2013, and interim periods within those periods.
December 16, 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 January 1, 2014.
September 7, 2012 "Review draft" of the general hedge accounting section of IFRS 9 published. Finalized requirements expected in the fourth quarter of 2012.
November 19, 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.
July 24, 2014 IASB issues IFRS 9 Financial Instruments.
IFRS 9 (2014) was issued as a complete standard including the requirements previously issued and the additional amendments to introduce a new expected loss impairment model and limited changes to the classification and measurement requirements for financial assets.

This amendment completes the IASB’s financial instruments project and the standard is effective for reporting periods beginning on or after January 1, 2018, with early adoption permitted (subject to local endorsement requirements).

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 U.S. Accounting Standards group and IFRS Centre, debate the IASB's and FASB's proposals on 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.

  • Part 5: IFRS 13, Fair Value Measurement. The podcast is available for download here (18 mins, 13 mb) or via iTunes.

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