Posts Tagged ‘IASB’
THE IASB HEARS THE CONCERN OF THE 90 PERCENT ON IFRS 9 FATAL FLAWS
Reval recently asked corporations that apply IFRS across the globe their opinion on the latest IFRS 9 Review Draft. In particular, Reval wanted to know how they felt about the controversial treatment of hypothetical derivatives embodied in Paragraph B6.5.5. This paragraph currently outlines how hypothetical derivatives, and by implication the exposures themselves, cannot include elements…
Read MoreIFRS 9 Hedge Accounting Jeopardizes Convergence Dream
In September this year, the International Accounting Standards Board (IASB) finally issued the Review Draft for Hedge Accounting, phase three of the replacement project for IAS 39 (under the banner of IFRS 9). Although this is not the final draft of the standard, the IASB do not expect any changes between now and the final…
Read MoreIFRS 9 Hedge Accounting: Missed Deadlines Creates Uncertainty
The delay of IFRS 9 hedge accounting (phase III) is disappointing news for many; particularly the commodity and option hedgers who were hoping to take advantage of the more favourable provisions in the new standard as soon as possible.
Read MoreInterest rate risk, Sweden, and FAS 157 (ASC 820)
Common concerns among Scandanavian countries include challenges of non-performance (i.e. credit) risk in valuing derivatives.
Read MoreIASB Set To Announce IAS 39 Changes Under Phase III of IFRS 9 ED: Major Divergence from Son of FAS 133R
With the last meeting on hedge accounting completed by the IASB, it is widely expected that at long last Phase III of IFRS 9 ED will be released in the coming weeks. From what we are hearing, there are several dramatic divergences from what the FASB has proposed for changes to FAS 133.
Read MoreIFRS 9 Business Model Test – A Challenging New Principle
Under IFRS 9, IASB has taken a more simplified approach by reducing the classification to two categories: amortized cost or fair value.
Read MoreImporters Beware – IFRS 9 Could Result in Lost Margin
One of the proposed changes from IAS 39 in the new standard IFRS 9 is the removal of the ability to make ‘basis adjustments’ to non-financial hedged items. This could be a major issue for many importers who hedge their currency risk. The whole process of capturing gross margin in the ERP/Stock Management system may need to change or importers may risk losing margin on sales.
Read MoreWhen Opposites Distract – FASB and IASB
When the FASB and the IASB started talking about the convergence of accounting standards back in 2006, the road map was pretty optimistic. Now the path to convergence is clearly widened further. No doubt its exposure draft issuance will coincide with the holiday period with comments due by September, so don’t forgot your laptop when your pack your suitcase.
Read MoreOn the Convergence Road Again: Will IAS 39 Wait for FAS 133?
The IASB was proceeding at an aggressive pace to overhaul IAS 39 and had announced its first two phases of the simplification project addressing classification and measurement and impairment methodology, but it fell behind with Phase III, which was going to tackle the simplification of hedge accounting. With the overhaul originally planned for Q3, then…
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