The Closely Related Criterion for Embedded Derivatives in IAS 39
Issue
The IFRIC considered providing guidance on the meaning of “closely related" in the context of embedded derivatives in IAS 39.
Decision not to add
October 2003
Reason
The IFRIC decided not to address this issue because:
• changing the approach in IAS 39 would go beyond providing an Interpretation of existing guidance.
• the IFRIC would not have sufficient time to provide input to the Board's project to improve IAS 39, given the need to finalise that Standard within a short timeframe.
This issue is expected to be addressed in the revised IAS 39.
IFRIC reference: IAS 39