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IASB amends IAS 39 transition

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18 Dec 2004

The International Accounting Standards Board has issued limited amendments to IAS 39 'Financial Instruments: Recognition and Measurement' on the initial recognition of financial assets and financial liabilities.

The amendments provide transitional relief from retrospective application of the 'day 1' gain and loss recognition requirements. They allow, but do not require, entities to adopt an approach to transition that is easier to implement than that in the previous version of IAS 39, and will enable entities to eliminate differences between the IASB's Standards and US requirements.

Specifically, the amendments give entities a choice of applying the 'day 1' gain or loss recognition requirements in IAS 39:

  • retrospectively (as previously required by IAS 39)
  • prospectively to transactions entered into after 25 October 2002 (the effective date of similar requirements in US GAAP)
  • prospectively to transactions entered into after 1 January 2004 (the date of transition to IFRSs for many entities).

Click for IASB Press Release (PDF 73k).


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