Deloitte comment letter on ED 'Embedded Derivatives'

Published on: 21 Jan 2009

We are supportive with the Board’s decision to address this issue in response to requests for clarification that have arisen since the amendment to IAS 39, Reclassification of Financial Assets, was issued in October 2008. We agree with the conclusions of the Exposure Draft. We believe however, that the interaction between the amended IAS 39.12 and the retained IAS 39.13 should be clarified. Specifically, it should be clearer whether an entity may reclassify a financial asset even though it cannot reliably measure the embedded derivative but can reliably measure the entire financial instrument and the financial host contract.


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.