Financial Instruments: IAS 32 and IAS 39

Date recorded:

The staff asked the Board to clarify some points regarding the discussion on 17 September.

Effective interest rate issues

The Board confirmed that its prior decision (see Wednesday minutes) that the effective interest would be determined over the period until prepayment. They re-affirmed that this means that the related costs will be taken to account over the same period. Where the instrument is reset to a market rate the costs are taken to account over the period to the next reset.

Correction list for hyphenation

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