This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Amendments to IAS 32 and IAS 39

Date recorded:

This past June, the IASB invited comments on its proposals to amend IAS 32 and IAS 39. The comment period expired on 14 October. The IASB has received more than 170 comment letters. The Board has decided to schedule a public roundtables with the objectives: improve the interaction between the Board and its constituents and to provide mutual education. The sessions will begin with the IASB's Standards Advisory Council on 24-25 February 2003. Then, those who submitted letters of comment will be invited to meet with the Board during the week of 10 March 2003. Exact dates and locations are to be determined.

The Board noted that it believes that it would be useful to integrate the text in IAS 32 and IAS 39 into a comprehensive Standard on financial instruments, along with the implementation guidance. Nevertheless, this project is more a 'packaging' project and is not a priority for the Board.

The preliminary consideration of the comments will focus on:

  • Classification of financial instruments as equity or liabilities:
    • economic compulsion
    • contingent settlement provisions
    • a parent's guarantee of a subsidiary's distributions
    • derivatives on interests in subsidiaries, associates and joint ventures
  • Derecognition:
    • pass through arrangement
    • financial guarantee derecognition
  • Impairment:
    • fair value measurement option
    • reversals of impairment on available for sale financial assets
    • measurement of financial guarantee
  • Hedge accounting:
    • Macro hedging (alternative approach)
    • Future transactions - Cash Flow Hedging

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.