Financial Activities - Risk Disclosures

Date recorded:

IASB Meeting

The Board discussed its project on financial risk disclosures and other amendments to financial instrument disclosures. The likely effect of this project will be to withdraw IAS 30 and move some (if not all) of the IAS 32 disclosures to a new standard.

The Board asked the staff to review the disclosures in IAS 32 and determine which disclosures should be retained. The Board intends to issue an Exposure Draft in the third quarter of 2004, with a final standard in 2005. Early adoption will be encouraged, and therefore this standard may be applied by 2005 first time adopters. If early adoption is not elected, applying the standard would be mandatory for financial periods beginning on or after 1 January 2007.

The IASB noted the FASB has a project that will likely require disclosures of similar items and that comments related to the differences in the IASB and FASB proposals should be requested in the ED.

The Board agreed that implementation guidance giving examples should be provided. However, IAS 1 will likely be amended to incorporate an example of a non-financial institution. In addition, the disclosure requirements in IFRS 4 will likely be changed to ensure that companies do not have to follow two different disclosure regimes.

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