This IFRS newsletter reports on the IASB’s May 2015 discussions on financial instruments.
Significant progress was made at the IASB’s May meeting.
The Board discussed the future direction of its projects on macro hedge accounting and financial instruments with characteristics of equity.
“The IASB has made welcome progress in outlining plans to move forward its two ongoing financial instruments projects. However, the complexity of the topics means that there is a lot of work to do.”
For more detail on these discussions, read Issue 23 of our IFRS Newsletter: Financial Instruments.
The next step for the macro hedging project will be to identify the information needs of constituents, before considering recognition and measurement requirements.
The Board tentatively decided to prioritise dynamic interest rate risk management, and expects to set up an ‘expert advisory panel’ at a later stage.
For its project on financial instruments with characteristics of equity, the IASB plans first to identify the characteristics of claims that create challenges in distinguishing between liabilities and equity.
The project would then explore the possible solutions, which may involve amending IAS 32 Financial Instruments: Presentation, or the definitions of a liability or equity.
© 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit https://home.kpmg/governance.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.