Heads Up on proposed FASB credit derivatives disclosures
04 Jun 2008
The US FASB has issued a proposed FASB Staff Position (FSP) to amend disclosure requirements for entities that sell credit derivatives or financial guarantees.
Comments are requested by 30 June 2008. The disclosures would be effective for financial years and interim periods ending after 15 November 2008. Deloitte &Touche LLP (USA) has published a Heads Up Newsletter (PDF 89k) describing the proposal. You can Download the Proposed FSP (PDF 38k) from FASB's website. Regarding convergence with IFRSs, the proposed FSP states:
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In August 2005, the IASB issued IFRS 7, Financial Instruments: Disclosures. The scope of IFRS 7 includes all financial instruments, not just derivative instruments. The FASB decided to limit the scope of this proposed FSP to credit derivatives because of the near-term need to address the lack of disclosures about the potential exposure and cash flow effects associated with those derivatives. The FASB may consider in the future a longer term project to improve disclosures about all financial instruments and to achieve greater convergence with IFRS 7. |