NEW YORK-The International Accounting Standards Board (IASB) published on March 20, 2008 a discussion paper on IAS 39 "Financial Instruments: Recognition and Measurement" to reduce complexity in financial instruments..
The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret and apply and constituents have urged the IASB to develop standards that are principle-based and less complex. The document is the first stage in a project which aims to replace IAS 39 Financial Instruments: Recognition and Measurement.
The discussion paper analyses the main causes of complexity in reporting financial instruments and proposes possible intermediate approaches to address some of them.
Introducing the discussion paper, Sir David Tweedie, IASB Chairman, said:
IAS 39, which the IASB inherited from its predecessor body, is far too complex. We are determined to simplify and improve IAS 39 by creating a principle-based standard."
The IASB invites comments on the discussion paper by September 15, 2008.
IASB is committed to developing in the public interest a single set of high quality global accounting standards.
For more information please visit the following website: www.iasb.org