News
IASB draft proposal released today
05 November, 2009
The new IASB (The International Accounting Standards Board) proposal hopes to address the root cause of the financial crisis by looking into banking decisions when issuing loans. However the international accounting rule maker will be thinking very carefully before bringing in the new rule.
IASB today published for public comment an exposure draft on the amortised cost measurement and impairment of financial instruments. The proposals form the second part of a three-part project to replace IAS 39 Financial Instruments: Recognition and Measurement with a new standard, to be known as IFRS 9 Financial Instruments. Proposals on the classification and measurement of financial instruments were published in July, with a final standard expected shortly, while proposals on hedge accounting continue to be developed.
The IASB chairman Sir David Tweedie has said that the proposals would make accounting for loans simple;, however he warned that the challenges of applying an expected loss approach should not be underestimated. For that reason the IASB would tread carefully and seek input from a broad range of interests before deciding how to proceed.
Read the IASB draft standard: IASB publishes proposals on the impairment of financial assets.
Limited Company accounting fees for only £118 per month. We do your paperwork, you focus on running your business. Find out more, or contact us today.